Concept and Theories
The case study discuss a business concept known as the Lead User Process (LUP) and how it has been effectively used by the 3M Company to develop new products (surgical drapes) that are cost-effective and able to prevent infection in ways that traditional drapes were unable to match.
The concept came into being as a reaction to the inability of companies to develop new breakthrough products to satisfy emerging customer needs and target markets rather than depending on product line extensions and incremental improvements to the already existing products and services (Hippel et al 4). In essence, LUP is a systematic process that guides and supports product developers in the design and development of new products.
From the case study, it is evident that LUP, to a large extent, depend on assumptions rather than theories. For instance, the methodology assumes that many commercially valuable products and services are initially hatched and even modeled by lead users rather than product developers.
The lead users must be at the extreme edge of market trends in addition to exhibiting unsurpassed expertise in the field. The methodology also assumes that the role of lead users should be limited to the provision of important information about what the company needs, and product developers should use the provided information to create new product concepts and ideas in line with emerging market trends.
Still, the methodology assumes that lead users outside the organization have already created unique innovations, and that product developers should function to track down particularly promising and widely experienced lead users and network with them for the sole objective of adapting their concepts to the organization’s business and strategic needs (Hippel et al 5).
Evidence & Analysis
Evidence has been given about how the 3M Company used LUP to develop new surgical drapes that were in line with the needs and expectations of the target market.
The company originally aimed at coming up with a superior type of disposable surgical draping (Hippel et al 5-7), but as a direct consequence of the employment of the LUP methodology to network with lead users, the company was able to come up with concepts that could be used to design and develop cost-effective surgical drapes to be used in developing countries. The team, in conjunction with lead users, was also able to design concepts that could prevent many infections that patients could get during the course of undergoing a surgical procedure.
In Analysis, it is worth noting that LUP basically revolves around four phases, with each phase lasting for a period of between four to six weeks.
The first phase, known as laying the foundation, entails the team members identifying the target market and also coming up with the type and level of innovations that will not only be acceptable to key stakeholders within the organization, but will be inherently used to move the organization’s agenda and business strategy forward (Hippel et al 5-7).
However, it is worth noting that the final recommendations for the product being developed may alter or change a company’s strategy as was the case with 3M.
The second phase entails the determination of trends prevalent in the target market by identifying and talking to professionals who have adequate knowledge and expertise on the product and the needs of the market, and who can direct the teams to lead users who are well ahead of markets trends.
The third phase, according to the case study, entails the actual identification of the lead users and networking with them to extract important information about the intended product. These professionals not only assist teams to discover truly original elucidations to significant needs that are propping up in the target markets owing to their vast expertise, but they also often assist project teams to progress their comprehension of the nature and scope of the breakthrough they are in quest of (Hippel et al 5-7).
The information gathering process also assists project teams to identify particularly promising innovations that will be central to the design and development of breakthrough products. Lastly, this phase is used to shape preliminary product concepts and to critically evaluate the business potential of the emerging notions and how well they synchronize with organizational interests (Hippel et al 5-7).
The last phase entails developing the breakthroughs, and is kicked off by hosting workshops attended by all interested parties, including the lead users. Here, discussions are focused on assessing whether the underlying product concepts and ideas fit the needs and expectations of the target audiences. After the stakeholders reach a consensus, recommendations that must be based on solid evidence are presented to senior management for approval.
Implication
The LUP methodology offer organizations a new paradigm to move their business interests forward by making use of information gathered from users at the very center of their target market to make informed decisions about new product development.
Many organizations experience limited success in coming up with product breakthroughs to boost sales and retain customers. The case of 3M Company, however, demonstrates that utilization of the LUP methodology offers positive implications for the organization as far as the development of new products and services is concerned.
Conclusion & Recommendation
From the case study, it can be concluded that LUP strategy opens up a wealth of possibilities for organizations seeking to develop new product lines for their target markets. Through the constant interaction between project teams and lead users, the methodology opens up critical avenues that channel innovation and creativity to product design and development. To guarantee success, however, it is highly recommended that team members be highly trained and the company affords team members the necessary support.
Works Cited
Hippel, E., Thomke, S., & Sonnack, M. Creating Breakthroughs at 3M. Harvard Business Review. (1999). Retrieved from <https://hbr.org/product/creating-breakthroughs-at-3m-hbr-onpoint-enhanced-edition/6110-PDF-ENG>