Operations

Augmented Product

Augmented Product Jonathan Poland

An augmented product is a product that includes intangible benefits beyond the physical product itself. These intangible benefits may include customer service, warranties, or access to information or resources.

Augmented products can be an effective way for companies to differentiate their products from competitors and add value for customers. For example, a company that sells electronic devices may offer a warranty and customer support services as an augmented product, providing peace of mind and convenience for customers.

In addition to tangible benefits like warranties, companies can also use augmented products to provide intangible benefits such as access to information or resources. For example, a software company may offer training and support as an augmented product, helping customers to more effectively use and get value from the product.

In order to effectively market and sell augmented products, it is important for companies to clearly communicate the value and benefits of these intangible elements to customers. This may involve highlighting the benefits in marketing materials and packaging, as well as providing information about the availability and terms of the augmented product.

Overall, augmented products can be a useful way for companies to differentiate their products and add value for customers. By clearly communicating the benefits of these intangible elements, companies can effectively market and sell augmented products. The following are common types of intangible benefits that are included with products.

Delivery
Delivering the product to the customer’s door.

Warranty
A warranty on the product and process for the customer to return the product or make a claim against the warranty.

Customer Service
A service that allows the customer to contact you with requests, issues and inquiries.

Financing
Financing services.

Installation & Configuration
Installing the product and configuring it for the customer.

Customization
Customizing the product to the customer’s requirements.

Updates
Updates for the product such as ongoing security patches for software.

Services
Services that come with the product. For example, a mobile device that comes with internet connectivity.

Customer Experience
The end-to-end experience of buying and using the product including all interactions between your firm and the customer. For example, your website and retail environments are part your product’s customer experience.

Product Features

Product Features Jonathan Poland

A product feature is a characteristic or aspect of a product that contributes to its overall functionality and performance. Product features can include both tangible and intangible elements, such as physical attributes, capabilities, and benefits.

Product features play a key role in the development and marketing of a product. They can help to differentiate a product from its competitors and attract potential customers. In order to effectively communicate the value of a product to customers, it is important for companies to clearly define and highlight the features of their products.

There are several factors that can influence the selection of product features, including the target market, the intended use of the product, and the desired price point. It is important for companies to consider the needs and preferences of their target audience when deciding on product features. Companies may also conduct market research and gather customer feedback to inform their decisions about which features to include in their products.

In conclusion, product features are an essential element of product development and marketing. They help to differentiate a product from its competitors and communicate its value to customers. Companies should carefully consider the needs and preferences of their target market and gather customer feedback when deciding on product features. The following are the basic types of feature.

Style
The artistic elements of form, shape, line, color, tone, space and texture. For example, the form and color of a bicycle helmet may be considered a feature by customers.

Function
Functions are things that a product or service accomplishes. Each function helps a customer perform a task. For example, a coffee mug holds hot or cold beverages.

Experience
The intangible elements of products and services that define end-to-end customer experience. For example, how a coffee cup feels in your hand or how it wears with time.

Quality
The merit of a product or service including both intangible and tangible elements. For example, the taste of food and the health properties of ingredients.

Product Analysis

Product Analysis Jonathan Poland

Product analysis is the process of evaluating a product for the purpose of product development, review, or purchasing. This evaluation can be conducted by the producer, the customer, or a third party, such as a product review blog. During product analysis, the product may be tested and information gathered from various sources, including customers and industry analysts. The analysis may also involve comparing the product to competing products on the market. When a customer performs the evaluation, the product may be assessed based on a set of requirements or customer needs. Overall, product analysis helps to identify strengths and weaknesses of a product and inform decision-making about its development, marketing, and sale. The following are illustrative examples of product analysis.

Cost
Evaluation of cost such as a product development team that calculates how much a proposed design will cost to produce at scale.

Functions
Functions are what a product does. For example, a customer may evaluate the functionality of an industrial robot against a set of requirements.

Features
Features are how functions are implemented. For example, two air purifiers that perform similar functions in removing fine particles from air that have different user interfaces. Features are often evaluated in terms of usability.

Performance
The performance of a product such as the responsiveness of a snowboard.

Figure of Merit
A measurable element of product performance such as a CPU benchmark for a computing device.

Ingredients & Materials
The quality of a product’s ingredients or materials such as a food product with natural organic ingredients as compared to a product with chemical additives.

Sensory Analysis
Sensory analysis is the evaluation of products using human senses such as taste, smell, touch, sight, sound and sensation.

Look & Feel
The overall visual appeal of the product.

Customer Experience
The end-to-end customer experience including the services that may be offered with the product. For example, considering the level of customer support offered by a bank as part of the analysis of a financial product.

Packaging
The experience of opening up the product and reusing packaging.

Productivity
How much you accomplish with the product in a unit of time. For example, a mobile phone that makes it easy to quickly enter text.

Efficiency
The resource consumption of the product such as the power used by a refrigerator.

Durability
The ability of the product to retain value over time and when subjected to stresses. For example, a leather couch that still looks new after 5 years as opposed to one that looks worn in 6 months. This may be evaluated with accelerated life testing or with information from existing customers of the product.

Reliability
Consistent performance over time. For example, a printer that maintains high uptime across all customers versus a printer that has a reputation for downtime and being difficult to maintain.

Customization
The ability to configure the product to your preferences or requirements.

Compatibility
How well the product integrates with other things such as a mobile phone that effortlessly integrates with data backup tools and hardware offered by many manufacturers.

Standards
Compliance with standards such as a pillow that is independently certified to have low emissions of VOCs.

Sustainability
The impact of the product on the environment and communities.

Safety
Evaluating product safety such as an organization that performs crash tests on vehicles.

Risk
The risk associated with a product such as the risk of vendor lock-in associated with a software product.

Security & Privacy
Evaluations of the security and privacy of a product. For example, considering the value of an household appliance that connects to the internet versus the security implications of this connectivity.

Terms & Conditions
The legal agreements that come with a product. For example, the software license agreements that apply to a mobile phone.

Conformance Quality
A product with adequate quality control such that every product is the same as opposed to the customer facing a risk of obtaining a defective product. Customers may evaluate this by looking for customer reviews that report a defect product or by seeking data from consumer protection agencies and organizations.

Reputation
A summary of the producer’s reputation including your experiences with its products.

Value
Comparing the ratio of quality to price. In this context, quality is evaluated in terms of the product’s fitness for purpose.

Latent Need

Latent Need Jonathan Poland

A latent need is a customer need that is not currently being met by the market and is not actively requested by customers. As a result, it may not be identified through market research. These needs are often referred to as “unknown” or “unstated” needs, as customers may not be aware of them. Latent needs can be uncovered through careful observation and analysis of customer behavior, as well as through the development of innovative products and services that address these unmet needs. The following are illustrative examples of a latent need.

Convenience

Products and services that save the customer time and effort. In the 1960s, few customers would have asked for a faster oven because they would have assumed it would burn the food. When the home microwave oven was first introduced in 1967 it didn’t sell particularly well for the first decade because customers were unaware of the technology.

Productivity

Tools that allow customers to accomplish more with their time. In 1990, few customers would have asked for an integrated global network of information, entertainment, commerce and communication but this is what they got with the commercialization of the internet beginning in the mid-1990s.

Usability

Products and services that are pleasing and productive to use. Customers often find faults in the usability of products and services and this commonly surfaces in market research. However, leaps forward in usability such as cut-and-paste and pinch-to-zoom weren’t obvious needs before their introduction.

Experience

Elements of the end-to-end customer experience of a product, service or environment. For example, the introduction of pervasive games that merge reality with digital game elements generated significant customer demand but wasn’t something customers were asking for before its introduction. Customers commonly asked for virtual reality but not mixed reality.

Efficiency

Tools that give you more output for input. For example, a digital twin that is used to manage infrastructure.

Quality of Life

Things that improve quality of life. For example, customers might be happy with concrete walls until they see a green wall for the first time.

Product Extension

Product Extension Jonathan Poland

Product extension is the practice of introducing new products or product lines that are related to a company’s existing products. This strategy can be used to diversify a company’s product offerings, reach new customer segments, and increase sales and revenue.

There are several types of product extension strategies that companies can use. Line extension involves introducing new products within the same product line, such as introducing new flavors or sizes of a food product. Brand extension involves using an existing brand name to introduce a new product in a different category, such as a clothing company launching a line of home goods. New product development involves creating entirely new products that are unrelated to the company’s existing offerings.

Product extension can be an effective way for companies to grow and expand their business, but it also carries some risks. It is important for companies to thoroughly research and assess the market demand for their new products, as well as their ability to effectively produce and distribute them. Introducing new products can also require significant investments in marketing and advertising to promote the products and build brand awareness.

Product extension can be a useful strategy for companies looking to diversify their product offerings and reach new customer segments. However, it is important for companies to carefully consider the market demand, production and distribution capabilities, and marketing and advertising efforts required to successfully launch new products. This has several common variations:

Packaging
Changes in package size or format. For example, coffee that is sold in bags that is extended to the same product in a resealable can.

Flavors
Additional flavors such as a line of organic fruit-only jams that adds a cherry jam to their product line.

Forms
Changes to product form such as a hardcover book that is released as a paperback.

Features
Adding or subtracting features. For example, a smart thermostat that releases a product that is fully offline for customers who are concerned about privacy.

Function
Adding or subtracting functions such as a gaming mouse that is released as a standard two button mouse for regular users.

Performance
Increasing or decreasing performance. For example, a manufacturer of high performance wifi routers that releases a low-end model for the consumer market.

Styles
Different styles and colors of the same product can be considered a product extension.

Formulations
Product variations that have different ingredients such as an organic and non-organic version of a juice product.

Horizontal Extension
A horizontal extension is the release of a new product that has the same quality and price as existing products. This provides more variety to attempt to gain market share with stronger product differentiation.

Vertical Extension
Vertical extension is the release of new products at different levels of quality and price from your current offerings. For example, a resort that offers cheaper or more luxurious rooms.

Price Discrimination
Price discrimination is the process of trying to offer price sensitive customers a lower price and price insensitive customers increased quality or convenience. For example, a manufacturer of men’s belts that offers popular colors at a high price and unpopular colors at a low price such that customers who are willing to sacrifice color for price can save money.

Down-market Stretch
The release of new products designed to be more affordable, usually at reduced quality. For example, a luxury chocolatier that releases a line of packaged products with a relatively long shelf life for sales at grocery stores. This risks damaging brand image as luxury chocolate consumers will wonder why they are paying so much for a brand available at a grocery store.

Up-market Stretch
The release of premium versions of a product designed to appeal to customers who are willing to pay more. For example, a sunscreen brand that releases a product that is made with organic ingredients that are all perceived as healthy that have less impact on the environment at a much higher price than products in the line that use standard chemical ingredients commonly found in sunscreens.

Brand Extension
Brand extension is the use of a brand name on a completely different type of product. For example, a car manufacturer that releases a line of bicycles. This risks confusing your brand identity in the minds of customers.

Product-as-a-Service

Product-as-a-Service Jonathan Poland

The Product-as-a-Service business model involves offering a service in areas that were traditionally sold as products. This model involves ongoing interaction with customers, including support, and may also allow for the exchange of a product for a newer model on a regular basis. This approach shifts the focus from selling products to providing ongoing value to customers through services.

The Product-as-a-Service model can provide a steady stream of income for producers through monthly subscription fees or usage-based charges. Customers may find this model appealing due to the flexibility, enhanced support, lower upfront costs, and reduced risk it offers. For instance, a customer who subscribes to a car sharing service does not have to worry about maintenance and incurs lower upfront costs compared to purchasing a car outright. This model can offer benefits to both producers and customers.

Examples of Product-as-a-Service include:

  1. Software as a Service (SaaS): Customers pay a subscription fee to access and use software on a recurring basis, rather than purchasing it outright.
  2. Cloud computing: Customers pay for computing resources on a pay-per-use basis, rather than buying and maintaining their own hardware and software.
  3. Car sharing: Customers pay a subscription fee to access a fleet of vehicles on an as-needed basis, rather than owning a personal vehicle.
  4. Subscription boxes: Customers pay a monthly fee to receive a curated selection of products, such as clothing, beauty products, or food items.
  5. Furniture rental: Customers pay a monthly fee to rent furniture and appliances, rather than buying them outright.
  6. Home cleaning and maintenance services: Customers pay a recurring fee to have their homes cleaned and maintained by a professional service.
  7. Music and video streaming services: Customers pay a subscription fee to access a library of music or video content on a recurring basis, rather than purchasing individual songs or movies.
  8. Fitness clubs and gym memberships: Customers pay a monthly fee to access fitness equipment and classes.
  9. Professional services: Customers pay for professional services, such as legal or accounting services, on an as-needed basis rather than hiring a full-time employee.

Product Experience

Product Experience Jonathan Poland

Product experience refers to the overall value that a product or service provides to customers based on their perceptions as they use the product or service in different contexts. It is a key component of customer experience, which encompasses all interactions between a company and its customers.

Design and quality control are crucial factors in determining the product experience. A well-designed product that functions effectively and meets the needs of the user will result in a positive product experience. On the other hand, a poorly designed product with low quality can lead to a negative product experience, which can lead to customer dissatisfaction and even loss of business.

In order to optimize product experience, it is important for companies to understand the needs and preferences of their target audience. This can be achieved through market research and customer feedback. Companies can also involve customers in the design process, as their input can provide valuable insights into what features and functionality are most important to them.

In addition to design and quality control, the packaging and branding of a product can also impact the product experience. Packaging that is attractive and easy to use can enhance the overall product experience, while poor packaging can detract from it. Similarly, strong branding can create a positive association with the product, while weak branding can lead to confusion or a lack of recognition.

Product experience is a vital consideration for companies in order to provide value to their customers and maintain a competitive edge in the market. By understanding the needs and preferences of their target audience and implementing effective design, quality control, packaging, and branding, companies can create a positive product experience that leads to customer satisfaction and loyalty.The following are common types of product experience.

Fit For Purpose
The product or service has the functions you need without bloated features getting in the way.

Sensory Design
Visual appeal and pleasing taste, smell, touch and sound.

Sensations
Sensations generated by the product such as temperature, light intensity and haptics.

Usability
A product that is pleasing to use.

Learnability
A product that feels intuitive that is easy to learn with a little trial and error.

Undo
The product provides a safe environment where actions can be undone.

Control
The product lets you control it. Automations and suggestions feel useful and are easily overridden.

Personalization
The product makes reasonably useful assumptions about your preferences.

Customization
You can easily customize the product to the way you want it.

Stability
User interfaces are predicable. Dynamic elements such as context menus feel intuitive.

Speed
The product feels fast and responsive.

Performance
The product meets your performance expectations such as a snowboard that is just bendy enough.

Productivity
The product allows you to complete your goals quickly.

Information Density
The product gives you the amount of information you need to achieve your goals without overwhelming you or making you look too hard.

Information Scent
Clear visual cues and structure that make information and functions easy to find.

Layout & Composition
The product has a pleasing layout and feels balanced and organized.

Unity
Different elements of the product look like they belong together.

Shape & Form
A pleasing shape and form. For example, a device that fits in your hand comfortably.

Convenience
The product is convenient to use. For example, a device the fits in your pocket or a meal that is easy to prepare.

Accessibility
The product is designed to be useful to a broad range of people including people with disabilities.

Durability & Resilience
The product doesn’t easily break and continues to operate under a wide range of real world conditions.

Transitions
Change to the product such as upgrades and expansions go well and aren’t detrimental to your use of the product.

Risk
The product is safe to use. For example, software that is reasonably secure from information security threats.

Health
A product that feels healthy.

Values
Customer perceptions regarding the impact of the product on the environment and people. For example, a product that is manufactured locally according to environmentally responsible methods.

Terms
The product or service has fair terms of service.

Product Identity
People often describe products and brands with the same words they might use to describe a person. For example, a product that you trust.

Social, Culture & Lifestyle
A customer who sees a product as a part of their social status, culture or lifestyle. For example, snowboarding goggles that all the cool snowboarders wear on a particular mountain.

Meaning
Customers may attach personal meaning to a product. For example, a toy that reminds a parent of their youth.

Refinement
The product looks highly refined such that it is was obviously designed and built by people who are diligent in their work.

Sustainable Design

Sustainable Design Jonathan Poland

Designing for sustainability involves creating products, services, and processes that minimize environmental impact and enhance quality of life for the communities they impact throughout their entire lifecycle. This is achieved through the practice of sustainable design. The following are practices, principles and techniques that are commonly used to create sustainable designs.

Aesthetics
Aesthetics greatly impacts quality of life and is often considered of importance to sustainable design. For example, people typically find parkland crossed with bicycle and walking paths to be more aesthetically pleasing than a highway.

Appropriate Technology
A design approach that calls for small-scale solutions that suit circumstances and context. For example, a technology for growing a particular crop in a particular climate. Appropriate technology may consider factors such as the local culture, economy and ecology. Associated with inexpensive and practical approaches.

Biomimetics
Designs modeled on natural materials, mechanisms and processes.

Conviviality
The idea that designs be friendly to people. In other words, people don’t need to bend to the technology, the technology bends to people. Associated with designs that suit human cognition, physical characteristics and culture.

Deconstruction
Things that are build to be deconstructed for reuse or recycling. For example, some buildings can be deconstructed for reuse as opposed to demolished.

Downcycling
Recycling that results in products of lesser value. Often results in materials becoming waste eventually.

Durability
High quality products that resist wear and damage can reduce resource consumption as products don’t need to be replaced, returned or repaired.

Efficiency
Designs that are energy and resource efficient over their entire lifecycle from production to recycling.

Emotional Attachment
The observation that people grow emotional attachments to certain items while other items are viewed with indifference. Emotional attachment can work as a sustainable design goal because it greatly encourages reuse. For example, tea cups that are designed to develop an aesthetically pleasing pattern as they stain over the course of years might achieve far greater reuse than a plastic cup.

Human Scale
Human scale is the practice of designing things at an appropriate size, weight, speed, distance, temperature, pressure, force and energy level for humans. For example, designing urban environments so that people can reach the services they need with a reasonable distance.

Interdisciplinary Design
Interdisciplinary design is the practice of forming design teams with diverse backgrounds, skills, abilities and knowledge. Sustainable design considers a large number of factors spanning technical, environmental and cultural areas and typically requires a diverse set of skills and viewpoints.

Low Impact Materials
Materials that are both free of harmful substances and resource efficient.

Marketability
Sustainable design found its beginnings in grassroots projects that occasionally produced idealistic and impractical designs. As such, a rule of thumb developed that valuable sustainable designs are marketable. In other words, they can easily be sold at a profit. This doesn’t imply that designs produced by non-profits need to be sold or commercialized. It is simply an observation that if a sustainable design is truly valuable that people would be willing to buy it. Applies to areas such as architecture and product design.

Mixed Use Design
A particularly important concept in sustainable architecture and urban planning that calls for neighborhoods and large buildings to include a blend of residential, commercial, community and cultural features. For example, a neighborhood might have a variety of housing, schools, medical services, offices, museums, parks, shopping and facilities such as sports venues. It is a model that minimizes the impact of transportation on quality of life and the environment. It may also create a sense of community similar to that found in a village.

Narrative
In many cases, a sustainable design has an interesting story behind it that tends to add to its value.

Organic Materials
The use of materials from organic sources or materials synthesized to be identical to organic material. Generally useful because organic materials are often known to be biodegradable and low impact. Avoids introducing novel chemicals into the environment.

Passive Design
A design technique used primarily by architects to automatically benefit from the environment. For example, passive solar heating may use windows that let light in when its cold inside and shut light out when its hot. The term passive implies an extremely lightweight solution that achieves significant gains.

Proximity Of Design
A design goal that places things close together to improve efficiency or quality of life.

Quiet Design
Products and services designed to minimize noise pollution such as electronics that don’t beep.

Recover
Recovery of materials or energy that had been discarded or abandoned. For example, renovating an abandoned warehouse to make an attractive office space.

Recycle
Designing things from materials that can be easily recycled in the communities where they are sold.

Reduce
Eliminating waste from products, services and processes to reduce the use of resources.

Regenerative Design
Designs that restore their own energy or resources such as brakes on a train or car that generate electricity.

Renewable Resources
Use of natural resources that can be replenished via natural processes. Solar power is a classic example.

Reuse
Designing products to be reused eliminates waste and tends to reduce consumption of resources. Reuse is related to other design goals such as durability and emotional attachment.

Safety By Design
Designs that reduce health and safety risks such as a vehicle with an automated accident avoidance system that applies brakes if you’re about to hit something.

Self Reliance
Self reliance is a common theme of sustainable design. For example, buildings that produce their own energy with solar technologies or a community designed to grow its own fresh vegetables.

Slow Design
A design principle that slows things down to human speed to improve quality of life. Runs contrary to the notion that faster is always better. For example, a well paced meal at a restaurant may span several small courses that take several hours in total. This arguably has a more sustainable feel than a fast food meal that is served and consumed within minutes. Slowness may have a tendency to reduce overall resource consumption. It can also increase perceived value and satisfaction with a product or service.

Small Is Beautiful
A design principle that aims for small scale solutions often at the local level. Runs contrary to the common notion that bigger is better. Small is beautiful also represents an alternative to the industrial model that relies on economies of scale such as mass production or cloud computing.

Social Design
The practice of considering the social impact of your designs.

Strategic Design
The practice of looking at design from a big-picture and long-term viewpoint.

Transition Design
A design approach that takes practical steps towards solving complex problems.

Upcycling
Recycling that results in goods of equal or greater value. Tends to avoid waste more effectively than downcycling.

Waste Is Food
The principle that all waste products should be a nutritious food for at least one plant, animal, fungi, protist, archaea or bacteria.

Prototyping

Prototyping Jonathan Poland

A prototype is a preliminary version of something that is used to test and refine an idea, design, process, technology, product, service, or creative work. It serves as a tool for gathering requirements, developing and planning strategies, and evaluating the feasibility of a concept. Prototypes are often used to explore and validate the potential of a new idea or to identify areas for improvement before committing to a full-scale implementation. The following are common types of prototype.

Architectural Animation
A movie that walks through the proposed 3D space of a building or structure.

Concept Art
Illustrations that capture an aspect of design such as an idea, layout, form, aesthetic, architecture or sequence.

Demo
A short, unpolished version of a work such as a song, film, visual design, game or business application.

Evolutionary Prototype
A prototype that is extended over a considerable period of time that represents a future version of something. For example, a concept car that is developed as a potential future production model.

Form Study
An object or animation that explores size, shape, form and appearance.

Functional Prototype
A prototype that is close to the end result in functionality. For example, a user interface that works with test data but isn’t properly developed as an well designed and integrated system.

Horizontal Prototype
A prototype that shows a complete user interface without the ability to drill down.

Low Fidelity
A prototype that is less detailed or lower quality than the intended end result.

Minimum Viable Product
A product that’s complete enough to put in front of customers as tool of market research or as a beta release.

Mockup
A broad category of prototype that looks like the finished product but is completely lacking functionality. For example, a webpage depicted as an image or a car without an engine for use in wind tunnel testing.

Paper Prototype
Illustrations and primitive cardboard models of design ideas.

Proof Of Concept
An implementation of a method or design to prove that it can work.

Proof Of Principle
A test of a foundational idea.

Rapid Prototyping
Techniques such as 3D printing that produce a physical object from a computer aided design.

Scale Model
A smaller, typically non-functional, model. Commonly used for large things such as buildings, automobiles or aircraft.

Simulations
Software visualizations of physical things.

Sports Prototype
An advanced automobile that is only used for racing. Often used as a prototype for advanced technologies that may be used in future production models.

Static Prototype
A prototype that appears to be functional but is in fact hardcoded. For example, software that fakes its data as opposed to integrating with data repositories.

Storyboard
A series of graphics that visualize a sequence such as a user interaction or a scene in a film.

Throwaway Prototype
A low cost prototype that is quickly developed with limited quality and functionality. Essentially the opposite of an evolutionary prototype that represents a state of the art design.

Vertical Prototype
A user interface mockup with drill down capabilities.

Wireframes
An illustration of a skeletal framework that serves as a blueprint for a design.

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