Question

In: Operations Management

Note On Lead User Research describes how the potential of alternative uses of research can be...

Note On Lead User Research describes how the potential of alternative uses of research can be determined methodically. Lead Users are defined as consumer groups who lead with respect to cutting edge applications of important markets and technical trends. Stages of a Lead User study are discussed which include project planning, trends/needs identification, preliminary concept generation, and final concept generation.

Questions

What are the characteristics of Lead Users?

What are the three types of Lead Users?

What resource commitments are required for the level of innovation that will support the alternative market?

How can Stage II: Trends/Needs Identification be conducted in a quantitative and scientific fashion?

Why is ‘Testing the Concepts’ not a stage of the Lead User Study?

Solutions

Expert Solution

Q1. Characteristics of lead users :

1. Lead Users have affordability to purchase new products.

2. Lead Users Are able to provide Initial Reviews.

3. They are in general opinions leaders, the geneal people seeks their reviews before getting into new things like helps in industies while manufacuring products, or innovations etc.

Q2. Types of Lead Users:

(a). Lead users of Target Market . (b) Lead users of analog or similar Market (c) Lead users of advaced application with specialities in the given area of work.

Q3. following are the important resources commitment requires:

1. Research Support- None of the innovation can take place without great research. the organisation must be able to put forward great research facility, which does not mean that there should be fancy labs but data, detail and funds should be available.

2. Funds to spread the Innovation: Another important part is to have funds for spreading the innovation . Sometimes it happens that at initial stage funds are to be spent just to induct the innovation and its related products in new markets.

3. Organisational Acceptance: Another important part of the resources is that the organisation must be ready to accept the changes done and sales channel must accept to sell the new product. 3M is one of the best example for it, where innovations is everything.

Q4. Trends and needs can actually never be identified in a quantitative fashion, though it can be scientific. The output and sales figure of the old products are the single of the lowering trends and acceptance in market. for example before the launch of 4G in india the sales of 3Gstarted showing the downtrend which signifies that 3G's acceptability was going down and 4G was about to become a hit.

Besides this, there are quantitative Techniques like Feedback are available where we understand the trend of the Market.

Q4. Testing The concept is not an stage because lead users helps mainly in innovation and methodologies . sometimes the project or application which applied based on the experience of lead users may not be satisfactory or up to the result. The desired result will not be considered in future there is no testing on it.

Also the lead users applications are highly introspected and checked in the earlier stages only.


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