Mastering Disruption and Innovation in Product Management (eBook)

Dr. Christoph Fuchs has reached the highest level in the expert career track for the topic of Lifecycle Management at Siemens. He is currently the Senior Principal and Key Expert in its corporate development consulting department. Serving both as thought leader and practitioner, his projects share a common focus on initiating and driving impactful architecture development for the most complex products and systems. He has a proven track record where some of his projects have humbly achieved global recognition and success, and operates across various industries. His problem-solving approach and way of thinking have deeply been impacted by experiences made early on in his professional life. Starting his career in 1996 as a Product Manager in the field of Telecommunication at Infineon Tech., he later personally experienced the disruption of Siemens’ Communication Unit. From these experiences, he realized and made it to his passion to focus on the importance of holistic product development, stressing constant adaptivity to global trends and integrating flexibility into products that allow them to grow with market changes. He holds a Ph.D in Electrical Engineering from the Technical University of Karlsruhe. In 2004, he joined the consulting group for Innovation Management of Siemens Corporate Technology. He sees this book as a way to share his accumulated knowledge and experience on how to create successful products, by passing on what enables and helps him to move from, and transform, an innovative idea into a tangible, real product.Franziska J. Golenhofen is currently a consultant in the corporate development consulting department at Siemens. Through her work she integrates insights from diverse fields and perspectives to help spur the development of individuals and companies alike. Also passionate about writing to scale impact and understanding, she builds on previous experiences as assisting research in the renown lab of Dr. E. Dunn at the University of British Columbia, and publishing own research with Oxford University. She previously worked at THNK School of Creative Leadership in Amsterdam. As Program Manager she was responsible for the smooth delivery of the inaugural FIFA Female Leadership Development Programme. She is energized by how innovation, entrepreneurship and leadership can be impactful levers for architecting solution concepts to the systemic and complex societal challenges of today’s world. Graduating in 2015 she holds a honors B.A. from Amsterdam University College, with a strong interdisciplinary focus namely on sustainable development. She sees this book as a medium for making knowledge from leading figures in business accessible, tangible and applicable to the wider public.

Foreword 6
Acknowledgement 8
Contents 10
1: Introduction 15
Part I: Imperative and Fundamental Concepts 20
Change Happens 20
2: Disruptive Innovation 23
2.1 Introduction 23
Example: Siemens Misses a Dramatic Paradigm Shift 24
2.2 Defining Relevant Terminology 27
2.3 Complementary Thoughts on Christensen´s Theory of Disruptive Innovation 28
2.4 The DNA of Disruptive Change 33
2.5 Disruptive Innovation with Different DNA 35
2.6 Disruptive Innovation with Same DNA 36
2.7 Theory of Disruption Waves or the Modulation of Disruption 39
2.8 Benefit of a Unified View on Disruption 42
2.9 Relativity of Disruption 44
2.10 Typical Warning Signals for Disruptive Threats 46
2.11 Summary 48
References 49
3: Form Follows Function: Systems Engineering 50
3.1 Form Follows Function 50
3.2 Function Often Follows Form 52
3.3 Defining Concept and Architecture 55
3.4 Realizing the Product´s Architecture 58
3.4.1 Architectural Process 59
3.4.2 The System/Product Architect 60
3.4.2.1 Simplifying Complexity 60
3.4.2.2 Role of the System Architect 62
3.4.3 Two Architecture Types: Integral or Modular 63
3.5 Summary 64
References 66
Part II: Frameworks 67
4: Market Understanding 68
4.1 We Know Our Customers! ... Really? 68
4.2 Understanding Your Market 72
4.2.1 Market Segmentation for Multiple Business Questions 75
4.2.2 Market Segmentation for Multiple Segmentation Criteria 76
4.2.3 Identifying a Customers´ ``Job to Be Done´´ 79
4.3 Differentiating Market Segmentation from Design Thinking 82
4.4 How to Do a Market Segmentation 84
4.5 Summary 84
References 85
5: Creating Customer Value Through Design Thinking 86
5.1 Introduction 86
5.2 What is Design Thinking? 87
5.2.1 Thinking Like a Designer 88
5.3 When to Use Design Thinking? 90
5.4 What is Comprehensive Understanding? 92
5.4.1 Defining Understanding 92
5.4.2 The Different Levels of Understanding 95
5.5 Phases of Design Thinking 97
5.5.1 Empathy for Individuals 97
5.5.1.1 The Three Types of Empathy 99
5.5.1.2 Getting to What Matters 100
5.5.2 Empathy in the B2B Context 102
5.5.3 Define 105
5.5.4 Ideation 106
5.5.5 Prototyping and Testing 107
5.5.6 Scaling 109
5.6 Summary 110
References 111
6: Design to Value (DTV) 112
6.1 Is Value Different from Price? 112
6.2 Defining Value in Product Development 114
6.3 Lifecycle Cost 116
6.4 The Framework 118
6.4.1 Essential Toolbox 120
6.4.2 Measuring Value 121
Measuring functionality: 121
Measuring costs: 122
Example: 123
6.4.3 Design to Value Versus Value Proposition Design 125
6.4.4 When to Apply the Framework 126
6.5 How to Apply the Framework 129
6.6 Summary 130
References 131
7: Modular Design and Platforms 132
7.1 Introduction 132
7.2 What is Modularization? 134
7.2.1 What Type of Products May be Modularized? 134
7.3 Modularization: A Strategic Lever for Innovation 135
7.3.1 Why and How Modular Architectures Enable Disruption 137
7.3.2 Why Do Integral Architectures Emerge? 138
7.3.3 When Do Products Become Commodities? 139
7.3.4 How to Avoid the Commoditization Trap? 140
7.4 Platforms 141
7.4.1 Core Platform Versus Inclusive Platform 141
7.4.2 Three Common Misunderstandings About Platform Design 142
7.4.3 The Way to Go: Modular Platforms 145
7.5 Terms and Definitions 145
7.6 Implementing a Modular Platorm 148
7.6.1 Organizational Aspects 148
7.6.2 Strategic Aspects 151
7.7 How to Apply the Framework 153
7.8 Summary 154
References 154
8: Agile for Mechatronics and Hardware 155
8.1 Introduction 155
8.2 What Is Agile? 156
8.3 Agile Project Management 158
8.3.1 Connecting the Dots to Other Frameworks 159
8.4 Agile Manifesto for Mechatronics and Hardware 160
8.4.1 Differences Between Hardware and Software 161
8.4.2 Agile Manifesto Adapted to Mechatronics and Hardware 164
8.4.2.1 Four Agile Values Adapted to Mechatronics and Hardware 164
8.4.2.2 12 Agile Principles Adapted to Mechatronics and Hardware 167
8.5 Summary 170
References 170
Part III: Framework Tutorials 171
9: Framework Tutorials 173
9.1 Market Segmentation: Deep Dive 173
9.2 Empathy: Skills and Techniques 182
9.2.1 Perspective Taking 182
9.2.2 Trust 184
9.2.3 Deep Dive Empathic Listening 185
9.2.4 Interviews and Deeper Conversations 187
9.2.5 Observations 188
9.3 Design to Value 190
9.3.1 Main Steps of the Framework 190
9.3.2 Deep Dive and Case Study 198
9.4 Modularization 208
9.4.1 Main Steps of the Framework 208
9.4.2 Deep Dive and Case Study 213
References 220
Part IV: Tools 221
10: Power Tools 222
10.1 QFD: Quality Function Deployment 222
10.1.1 What Is QFD? 222
10.1.2 Why Use QFD? 224
10.1.3 How to Do QFD 225
10.1.4 Practical Tips and Success Factors 228
10.2 DSE: Design Space Exploration, Set-Based Design 229
10.2.1 What Is DSE? 229
10.2.2 Why Use DSE? 230
10.2.3 How to Do DSE 231
10.2.4 Practical Tips and Success Factors 234
10.3 DSM: Design Structure Matrix 234
10.3.1 What is a DSM? 234
10.3.2 Why Use a DSM 235
10.3.3 How to Develop a DSM 235
10.3.4 Practical Tips and Success Factors 241
References 241
11: Essential Tool Box 243
11.1 Requirement Focus 243
11.1.1 Kano Model 243
11.1.2 Pair-wise Comparison 247
11.1.3 Requirements Management 250
11.1.4 Tree Diagram 254
11.1.5 Empathy Map 257
11.2 Concept Focus 259
11.2.1 Functional Modeling 259
11.2.2 Morphological Matrix/Morphological Box 262
11.2.3 Modular Function Deployment 264
11.2.4 Onion Peel Model 269
11.2.5 Design for Variety 271
11.2.6 Customer Focus Group 274
11.2.7 Osborne Checklist 278
11.3 Cost Focus 278
11.3.1 Target Costing 278
11.3.2 Measurement Sheet 283
11.3.3 Lifecycle Cost model 285
11.3.4 Complexity Cost Calculation for Product Families 289
11.3.5 Business Plan 293
References 296
Authors and Contributors 297
Authors 297
Contributors 298