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User Needs Integration

Dick Hawley
Principal
Industry Solutions
Practice Manufacturing
June 8, 2012
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are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners.
Comments on Existing PLCOR Framework
1. User Needs Evaluation - Existing Process Elements do delineate Product Development tasks such as
C3.4 Acquire Market Detailed Knowledge and C3.5 Specify Product Features and Functions.
Background: The accuracy of the analysis of user needs and understanding of product requirements
has direct impact on product success and profound ramifications on business financials. Diagrams
have been included that outline the process of Marketing Product Management involved with new
product and/or market introduction. The multiple intersections of User Needs requirements with this
process framework have been depicted on subsequent diagrams. As User requirements have a
pervasive influence on outcomes, it is important to understand how they are interwoven into the
overall development process, touching directly product features , market segmentation, marketing
strategy and market mix decisions.
Recommended: 1) User Requirements and Needs be identified and assigned clearly stated Elements
at each stage of the PLCOR model. For example an intermediate element C3.X Document a User
Needs Evaluation be added to Create. 2) A framework for analyzing User Needs in a Quality context
be adopted which will be used throughout the PLCOR model. This would include a systematic monitor
and control loop process in which the REVISE market data acquisition flows back through this Quality
Framework for analysis. Comparison to earlier documented User Requirement, originally determined
and used in various product development stages, would be conducted and significant changes
reviewed and analyzed to determine appropriate next steps. Next steps could include product or
marketing program revisions.
Comments: 1) Essential for market segmentation discussion and determining target segments.
2) Central to customer value assessments. 3) Important to validation of the value to customers of
product features/functions and their associated product cost. 4) Accuracy essential for Quality of
Market Research assessments 5) Documentation is fundamental to monitoring ongoing user needs
shifts/changes that should trigger PLC actions 6) Provides defined evaluation parameters and
structure needed for ongoing product evaluation.

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are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners.
Marketing Management
Framework

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are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners.
Marketing Product Management Framework
Corporate Policy
Guidelines

Gap / Market
Opportunity
Analysis

Market Segment Selection of Target User Needs &


Analysis Markets Buyer Behaviors

Market Data
Acquisition &
Marketing Strategy Product Strategy
Analysis

Marketing
Objectives Product Concept

Marketing Mix Functional


Product, Price, Specifications
Promotion,
Position
Placement Product
Development Plan

Marketing Program Product


Deployment

Marketing
Development

Target Market
Response
2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein
are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners. Evaluation &
Control
Marketing Management Framework
Corporate Policy
Guidelines

Gap / Market
Opportunity
Analysis

Market Segment Selection of Target User Needs &


Analysis Markets Buyer Behaviors

Market Data
Acquisition & Analysis Marketing Strategy

Marketing
Objectives

Marketing Mix

Placement/
Promotion /
Product /Service Channel Pricing Positioning
Advertising
Distribution

Marketing Program

Target Market
Response

Evaluation &
Control
2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein
are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners.
Market Opportunity Analysis _ Detail

Demand Analysis

Generic Product / Market


Analysis

Channel Analysis Industry Analysis

Specific Product / Market


Analysis

Market Potential Forecast

Market Segmentation
Competitive Analysis Analysis

Detailed Product / Market


Analysis

Market Share and Sales


Forecast

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are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners.
Market Segmentation Target Market Selection
Initial User Needs &
Behavior Analysis

Identify Basis for


Segmenting Markets

Document Customer
Profiles by Segments

Forecast Market Potential


of Segments

Determine Competitive Determine Marketing Mix to


Position within Segments Serve Segments

Forecast Market Share by Estimate Market Service


Segment Costs by Segment

Analyze Potential for


Achieving Corporate
Objectives by Segment

Select Target Market


Segments

2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein
are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners.
Long Range Expansion Portfolio Planning
Corporate
Policy
Guidelines

Existing
Group Existing Existing
Capabilities Product
Objectives & Product Acquisition
Inventory Evaluations
Goals Development Programs
& Forecasts

Gap / Market
Opportunity
Analysis

Preliminary
Group
Expansion
Guidelines

New Product/
Data Product Line
Markets Techno-
Integration Expansion Plans
Economic Analyses

Group
Expansion
Plans
2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein
are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners.
Long Range Expansion Portfolio Planning
(continued)
Specific Group Expansion Planning

Group
Expansion
Plans

Acquisition New Product New Market Personnel &


Financial Plans
Targets Development Development Facilities

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are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners.
Product Planning

Environmental Competitive User Needs Technology


Analysis Analysis Evaluation Assessment

Corporate Opportunity
Corporate Mission /
Resources & Threat
Objectives Charter
Capabilities Identification

Product Idea Generation


Market Data
Strategy & Collection

Risk Evaluation
Screening
Assessment Criteria

Product Plan

Product Business Plan

Product
Business Plan
2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein
are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
Development
the property of their respective owners.
Product Business Plan Development

Product Planning

Product Plan

Product Business Plan


Functional User Needs
Specifications Analysis

Product Program Cost &


Market Analysis
Management Schedule

Product Cost &


Sales Forecast
Availability

Financial
Functional Plans Analysis &
Evaluation

Project
Authorization
2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein
are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners.
User Needs / Marketing
Framework Integration

Impact of User Needs Evaluation


Accuracy on Market / Product Results
and Intersection Points with
Product / Market Planning Process

12 2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein
are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners.
User Needs Integration Framework
Corporate Policy User Needs
Guidelines

Gap / Market
Opportunity
Analysis

Market Segment Selection of Target User Needs &


Analysis Markets Buyer Behaviors

Market Data Marketing Strategy Product Strategy Interpretation of


Acquisition & Analysis
User Needs
Marketing
Product Concept
Objectives

Marketing Mix
Product, Price
Functional Interpretation of
Specifications
Position Placement User Needs

Product Development
Marketing Program Plan

Final Product
Marketing
Development
Product Deployment Features

Target Market Market /User


Response
Feedback

Evaluation & Control


2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein
are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners.
Marketing Management Framework
Corporate Policy User Needs
Guidelines

Gap / Market
Opportunity
Analysis

Market Segment Selection of Target User Needs &


Analysis Markets Buyer Behaviors

Market Data
Acquisition & Analysis Marketing Strategy

Marketing
Objectives

Marketing Mix

Placement /
Channel Promotion /
Product /Service Pricing Positioning
Distribution Advertising

Marketing Program

Target Market
Market /User
Response Feedback

Evaluation &
Control
2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein
are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners.
Market Opportunity Analysis

Demand Analysis

Generic Product / Market


Analysis

Channel Analysis Industry Analysis

Specific Product / Market User Needs


Analysis

Market Potential Forecast

Market Segmentation
Competitive Analysis Analysis

Detailed Product / Market


Analysis
User Needs

Market Share and Sales


Forecast

2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein
are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners.
Market Segmentation Target Market Selection
Initial User Needs &
Behavior Analysis

Identify Basis for


Segmenting Markets User Needs

Document Customer
Profiles by Segments

Forecast Market Potential


of Segments

Determine Competitive Determine Marketing Mix to


Position within Segments Serve Segments

Forecast Market Share by Estimate Market Service


Segment Costs by Segment

Analyze Potential for Interpretation


Achieving Corporate
Objectives by Segment from User
Needs
Select Target Market
Segments

2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein
are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners.
Long Range Expansion Portfolio Planning
Corporate
Policy
Guidelines

Existing
Group Existing Existing
Capabilities Product
Objectives & Product Acquisition
Inventory Evaluations
Goals Development Programs
& Forecasts

Gap Analysis

Market / User
Preliminary Needs
Group
Expansion
Guidelines

New Product/
Data Product Line
Markets Techno-
Integration Expansion Plans
Economic Analyses

Group
Expansion
Plans
2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein
are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners.
Long Range Expansion Portfolio Planning
(continued)
Specific Group Expansion Planning

Group
Expansion
Plans

Acquisition New Product New Market Personnel &


Financial Plans
Targets Development Development Facilities

2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein
are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners.
Product Planning

Environmental Competitive User Needs Technology


Analysis Analysis Evaluation Assessment

Corporate Opportunity
Corporate Mission /
Resources & Threat
Objectives Charter
Capabilities Identification User Needs

Product Idea Generation


Market Data
Strategy & Collection

Risk Evaluation
Screening
Assessment Criteria

Product Plan

Product Business Plan

Product
Business Plan
2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein
are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
Development
the property of their respective owners.
Product Business Plan Development

Product Planning

Product Plan

Product Business Plan


Functional User Needs
Specifications Analysis
User Needs
Interpretation
of User Needs
Product Program Cost &
Market Analysis
Management Schedule

Product Cost &


Sales Forecast
Availability

Financial
Functional Plans Analysis &
Evaluation

Project
Authorization
2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein
are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners.
Balanced Product Development Process

Balanced 5 Key
Results Elements

Unbalanced Scenarios
Engineering Driven, Budget Driven, Market Driven, Out of Control

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are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners.
Leverage in Product Planning
The Leverage is Product Uniqueness and Fitness

Force Load

ROI

Assumption: New Product Ideas Fit the Users Needs


Fitness for Use
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are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners.
Quality Definition /
PLCOR-DCOR-SCOR
Integration
Incorporating Quality Concepts and
User Needs throughout the Product
Life Cycle Model

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are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners.
Definition of Quality J M Juran
Level 1 Level 2 Level 3
User Needs Major Parameters Component Parameters

Quality of Market Research


PLCOR

Quality of Design
Quality of Concept PLCOR

Quality of Specification
PLCOR DCOR

Technology DCOR SCOR

Quality of Manpower DCOR SCOR


Conformance

Management DCOR SCOR


Fitness for Use
Reliability DCOR SCOR

Availability
Maintainability DCOR SCOR

Logistical Support SCOR

Promptness SCOR

Competence
Field Service SCOR

SCOR
2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein
are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are Integrity
the property of their respective owners.
User Needs Integration Framework
Corporate Policy
Guidelines
User Needs
Quality of
Gap / Market
Opportunity Market Research
Analysis

Market Segment Selection of Target User Needs &


Analysis Markets Buyer Behaviors

Market Data
Acquisition &
Marketing Strategy Product Strategy
Interpretation of
Analysis User Needs
Analysis Quality of
Marketing
Framework - Objectives Product Concept Concept
Definition of
Quality Marketing Mix Functional Interpretation of
Specifications
Product, Price, User Needs
Promotion,
Position Quality of
Placement
Product Specification
Development Plan
Market /User Marketing Program
Final Product
Feedback Product Features
Deployment

Quality of Marketing Quality of


Availability
Development Conformance

Target Market
Quality of Field Response
Service
2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein
are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners. Evaluation &
Control
Initial User Needs Evaluation

The Important First Step to Quality Results.


_

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are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners.
Exploring Requirements :
Quality BEFORE Design
by Donald C. Gause & Gerald M. Weinberg

Billions of dollars are squandered each year building projects


that dont meet requirements, mostly because the requirements
were never clearly understood.

three critical but neglected human aspects of the


requirements process:
1. Developing a consistent understanding of requirements
among all participants
2. Developing the desire to work as a team on the project
3. Developing the necessary skills and tools for working
effectively as a team to define requirements.

27 2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein
are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners.
User Needs Evaluation & Research Elements
Postulate Market Segment(s) and User Needs
Establish a User Needs Analysis Program
Validation and Development of Postulated Concepts/Needs
Prospecting for Concepts/Needs
Define Need for Information in Terms of Analytical and Investigative Objectives
Establish Practical Scope and Limitations
Pertinent User Needs Analysis implies/requires:
Integration into Meaningful, Usable Patterns
Development and Objective Testing of Working Hypothesis
Organized, Disciplined Approaches
Parallel Pathing of User Needs and Product Development Cycles
Successes and Failures in Analysis
Primary and Secondary Data Collection
Final End Users and Intermediate Customer Activities, Operations, and Motivations
Existing, New and Emerging Trends in Significant User Groups and Market Segments
Total Economic Situations, Usually at Multiple Level
Defined Research Methodology, Sources, Investigative Techniques and Questions and
Collection Tools
Structure Total Data Collection Plan
Analyze, Quantify Significance of Findings and Finalize Opportunity/Market Model
Interpret Total Findings and Relevance to Needs and Objectives
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are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners.
User Needs Research Plan_ Sample Questions
Usage Needs
How existing product satisfies user needs?
Are Customer Support and Field Service meeting your needs?
What would improve Service response time and effectiveness?
Would any modifications facilitate ease of maintenance?
Has the product availability and uptime met your requirements?
What would improve user productivity?
What would improve consistence and repeatability of user performance?
What are unsatisfied needs?
Competitive differentiators?
Buying behaviors and Decision Process
Who buys product?
Why to they buy?
What do they buy? (performance, features, price)
Why do they buy that one?
How do they use it?
What problems do they have with it?
Who do they buy from? Why?
Who else do they consider?
Why dont they buy from them?
Who dont they consider? Why?
How does price impact your decision? What sustaining costs enter into your decision?
Knowledge sources
Their sources of information?
Use of manuals and support materials?
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are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners.
Ongoing PLC Management

Iterative Process
Controlled Loop Backs
Examples of Monitoring and Control in
the PLCOR processes

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are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners.
Evaluation Process for Existing Products

Determination of
Criteria for
Evaluation

Establish
Product
Evaluation
Procedures

Matching
Criteria with
Performance to
Identify Drop
Candidates

Comprehensive
Continue to Decision to
Analysis of Drop
Market Product Modify Product
Candidates

Planning &
Scheduling
Product
Departure
2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein
are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners.
Marketing Management Control Process

Marketing Program Design

Implementation

Determination of Marketing Strategy Processes to


be Controlled

Determination of Performance Standards

Development of Information Systems to Provide


Results of Marketing Strategy Actions

Evaluation of Strategy Results to Identify


Performance Gaps

Determinations of Needed Modifications in


Marketing Strategy

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are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners.
Alternative Marketing Strategy Positions

New
Venture
Strategy

Growth Strategy

Market Development Strategy

Market Retention Strategy

Balancing
Strategy

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are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners.
Distribution Channel Decision Process
Market Targets & Market Objectives

Marketing Program

Distribution Channel Objectives

Channel Strategy Development

Determine Channel Alternatives


Channel
Modification of Arrangement
Channel or Evaluation & Choice of Channels Revision
Participants

A B

Selection of Channel Participants

Management of Channel Relationships

Appraising Channel Performance

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are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners.
Appendices

Definition of Quality Framework for


Requirements and Data Analysis

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are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners.
Defining Quality Requirements
Overall User Needs _ Value

Price
Delivery Date
Fitness for Use

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are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners.
Price versus
Cost of Usage Over Useful Life

Original Price Paid for Product


Operation Costs e.g. energy, consumable supplies
Maintenance Costs e.g. repair, labor, spare parts
Downtime Relating from Product Failure
Depreciation of the Product value due to wear and obsolescence
Loss on Resale or Trade-in

37 2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein
are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners.
Definition of Quality J M Juran
Level 1 Level 2 Level 3
User Needs Major Parameters Component Parameters

Quality of Market Research

Quality of Concept
Quality of Design

Quality of Specification

Technology

Quality of Manpower
Conformance

Management

Fitness for Use


Reliability

Maintainability
Availability

Logistical Support

Promptness

Competence
Field Service

2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein Integrity
are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners.
Definitions
Quality of Design
Selection of the level of excellence based on the imbalance
between a high level of human wants and a variable level of human
affluence
Selection of grade or level of quality which relates to level of
fitness for use and a level of affluence

Quality of Market Research


Identification of what constitutes fitness for use to the user
Quality of Concept
Choice of a concept of product or service to be responsive to the
identified needs of the user
Quality of Specification
Translation of the chosen product concept into a detailed set of
specifications which if faithfully executed will then meet the users
needs
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are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners.
Definitions
Quality of Conformance
Extent to which the product conforms to the design.
Alternatively quality of manufacture or quality of product
Inherent Judgment of Fitness for Use Acceptance involves
determination of product conformance to specifications that
substitute for product supposed to do knowledge related to
fitness for use.
Production processes commonly utilize process specifications and
criteria as means of maintaining conformance to product
specifications

Technology
Manpower
Management

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are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners.
Definitions
Availability
Continuity of Service
Time related and measured by the extent to which the user can
secure service when he wants it.
Operational readiness or Uptime

Reliability
Freedom from failure, operational reliability
Probability of a product performing without failure a specified
function under given conditions for a specified period of time.
Maintainability
Serviceability, Repairability,
MTTB, Probability of restoring service in specified time period, Mean
Time for Scheduled Maintenance
Logistical Support
41 Availability of spare parts, Timeliness of delivery
2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein
are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners.
Definitions
Field Service
Users ability to secure continuity of service

Promptness
Response time to service calls, Availability of spare parts, Totsl time
to restore, contractual commitments
Competence
Service force competence to diagnose and remedy failures
Technological capabilities for diagnosis and
management/supervising outside operations
Training and performance monitoring
Integrity
Includes after sale service aspects of customer service and direct
user interface.

42 2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein
are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are
the property of their respective owners.