Creating Breakthrough Products

Financial Times
Jonathan M. Cagan / Craig M. Vogel
Oktober 2012


Der Titel ist leider nicht mehr lieferbar. Sorry, This title is no longer available. Malheureusement ce titre est épuisé.


For years, Creating Breakthrough Products has offered an indispensable roadmap for uncovering new opportunities, identifying what customers really value, and building products and services that redefine markets -- or create entirely new markets. Now, the authors have thoroughly updated their classic book, adding brand-new chapters on service design and global innovation, plus new insights, best practices, and case studies from both U.S. and global companies. Their new Second Edition presents:

  • Revolutionary (Apple-style) and evolutionary (Disney-style) approaches to innovation: choosing between them, and making either one work
  • More coverage of Value Opportunity Analysis and ethnography
  • New case studies ranging from Navistar's latest long-haul truck to P+G's reinvention of Herbal Essences, plus updates to existing cases
  • New coverage of the emerging environment of product-service ecosystems
  • Additional visual maps and illustrations that make the book more intuitive and accessible
Readers will find new insights into identifying Product Opportunity Gaps that can lead to enormous success; navigating the "Fuzzy Front End" of product development; and leveraging contributions from diverse product teams -- while staying relentlessly focused on their customers' values and lifestyles, from strategy through execution.


Exciting new product examples, methods, and insights focused on both physical products and services in consumer and B to B environments.

  • Revision of popular book on product design that has provided a roadmap to uncover new opportunities in the marketplace, and provided the tools needed to develop an understanding of what customers value.
  • New chapters on service design and global innovation, plus content updates throughout
  • More visual and accessible, to reach even larger consumer, industry and academic audiences

Table of Contents

Foreword by Dee Kapur  xix

Acknowledgments  xxi

About the Authors  xxiii

Preface  xxv

Glossary of Acronyms and Terms  xxxv

Part One The Argument  1

Chapter 1 What Drives New Product Development  2

Redefining the Bottom Line  3

Positioning Breakthrough Products  5

Products, Services, and Product-Service Ecosystems  7

Identifying Product Opportunities: The SET Factors  10

POG and SET Factor Case Studies  15

The Margaritaville Frozen Concoction Maker  15

The BodyMedia FIT System  19

Starbucks  25

The GE Healthcare Adventure MRI Series  28

Summary Points  33

Notes  34

Chapter 2 Moving to the Upper Right  36

Integrating Style and Technology    37

Style Versus Technology: A Brief History of the Evolution of Style and Technology in the Nineteenth and Twentieth Centuries  40

In the Beginning  40

The Growth of Consumer Culture  41

The Introduction of Style to Mass Production  42

Post–World War II Growth of the Middle Class and the Height of Mass Marketing  44

The Rise of Consumer Awareness and the End of Mass Marketing  45

The Era of Customer Value, Mass Customization, and the Global Economy  46

Positioning Map: Style Versus Technology  47

Lower Left: Low Use of Style and Technology  48

Lower Right: Low Use of Style, High Use of Technology  49

Upper Left: High Use of Style, Low Use of Technology  50

Upper Right: High Use of Style and Technology  50

Positioning Map of Margaritaville Frozen Concoction Maker  52

Positioning Map of BodyMedia FIT System  53

Positioning Map of Starbucks  55

Positioning Map of GE Adventure Series  56

Knockoffs and Rip-offs  57

The Upper Right and Intellectual Property  59

Revolutionary Versus Evolutionary Product Development  60

Summary Points  62

References  62

Chapter 3 The Upper Right: The Value Quadrant  64

The Sheer Cliff of Value: The Third Dimension  65

The Shift in the Concept of Value in Products and Services  66

Qualities and a Customer’s Value System: Cost Versus Value  70

Value Opportunities  73

Emotion  74

Aesthetics  75

Product Identity  75

Impact  76

Ergonomics  77

Core Technology  80

Quality  80

Value Opportunity Charts and Analysis  81

VOA of Margaritaville Frozen Concoction Maker  84

VOA of BodyMedia FIT System  86

VOA of Starbucks  87

VOA of GE Adventure Series MRI  89

The Time and Place for Value Opportunities  90

VOs and Product Goals  91

The Upper Right for Industrial Products  93

The Upper Right of Commodity Products: Trading off Value among the Aluminum Can, the Plastic Bottle, and the Glass Bottle  96

Summary Points  98

References  98

Chapter 4 The Core of a Successful Brand Strategy: Breakthrough Products and Services  100

Brand Strategy and Product Strategy  101

Corporate Commitment to Product and Brand  105

Corporate Values and Customer Values  108

Managing Product Brand  109

Building an Identity  110

Company Identity Versus Product Identity  111

Building Brand Versus Maintaining Brand  114

Starting from Scratch: Cirque du Soleil  114

Redefining a Brand: Herbal Essences  115

Maintaining an Established Identity: Harley  118

Brand and the Value Opportunities  120

Summary Points  122

References  122

Part Two The Process  125

Chapter 5 A Comprehensive Approach to User-Centered, Integrated New Product Development  126

Clarifying the Fuzzy Front End of New Product Development  127

A New Way of Thinking  128

iNPD Is Only Part of the Process  130

User-Centered iNPD Process  132

Resource Allocation  156

Allocating the Time Resource: Scheduling  157

Allocating the Cost Resource: Financing  158

Allocating the Human Resource: Team Selection  159

Summary Points  160

References  160

Chapter 6 Integrating Disciplines and Managing Diverse Teams  162

User-Centered iNPD Facilitates Customer Value  163

Understanding Perceptual Gaps  166

Team Functionality  171

Team Collaboration  171

Negotiation in the Design Process  172

Team Performance  176

Part Differentiation Matrix  181

Team Conflict and the PDM  188

PDM and the Role of Core Disciplines  190

Issues in Team Management: Team Empowerment  191

Understand the Corporate Mission  192

Serve As a Catalyst and a Filter  192

Be Unbiased  193

Empower and Support the Team  194

Let the Team Become the Experts  196

Recognize the Personality and Needs of the Team  196

Use of an Interests-Based Management Approach  196

Visionaries and Champions  198

Summary: The Empowered Team  199

iNPD Team Integration Effectiveness  199

Summary Points  .200

References  201

Chapter 7 Understanding the User’s Needs, Wants, and Desires  204

Overview: Usability and Desirability  205

An Integrated Approach to a User-Driven Process  210

Scenario Development (Part I)  212

New Product Ethnography  214

Using Ethnography to Understand Parrotheads  220

Lifestyle Reference and Trend Analysis  223

Ergonomics: Interaction, Task Analysis, and Anthropometrics  225

Interaction  225

Task Analysis  228

Anthropometrics  231

Scenarios and Stories  236

Scenario Development (Part II)  236

Storytelling  238

Broadening the Focus  241

Other Stakeholders  241

Identifying Users in Nonconsumer Products: Designing Parts within Products  .243

Product Definition  244

Visualizing Ideas and Concepts Early and Often  247

Summary Points  252

References  253

Research Acknowledgments  254

Part Three Further Evidence  255

Chapter 8 Service Innovation: Breakthrough Innovation on the Product–Service Ecosystem Continuum  256

The Era of Interconnected Ecosystems: Product, Interface, and Service  257

Empathy Versus Logic  260

Traditional Service Design  262

Umpqua: Designing a Bank Like a Product  265

UPS Moves Beyond the Package Delivery Industry  267

The Disney Renaissance: The Ultimate Entertainment Service  272

Interaction Design  276

Interaction Through a Multisensory Interactive Teaching Tool  277

Summary Points  279

References  280

Chapter 9 Case Studies: The Power of the Upper Right  282

Reinventing the Classroom with Upper Right Seating Systems: The IDEO and Steelcase Node  283

Ball Parks Play in the Upper Right: The Dallas Stadium and PNC Park  291

Innovation in Machining: Kennametal Beyond Blast Titanium Manufacturing  296

Electric Vehicle Innovation: Bringing Upper Right Transportation to the Twenty-First Century  300

Upper Right Open Innovation Partnerships between Companies and Universities  305

Innovation along the Highway: Navistar International LoneStar  307

The 50+ and Environmental Responsibilities: Designing a New Refillable Sustainable Packaging System  311

Making University–Industry Innovation Partnerships Work  315

Summary Points  316

Endnotes  316

Chapter 10 Case Studies: The Global Power of the Upper Right  318

The BRIC Countries  319

Brazil: Innovation and Growth in South America  320

China: Haier, The First Major Chinese Global Brand  323

India: Design Impact and Social Responsibility in India  328

Be Green Packaging: The World Is Flat Meets Cradle to Cradle in Connect+Develop  330

DesignSingapore Council: The Third Component from the Little Country That Can  332

Summary Points  335

References  335

Chapter 11 Where Are They Now?  338

Changing SET Factors  339

The OXO GoodGrips Peeler  340

The Crown Wave  346

Retired Case Studies  348

Summary Points  360

Epilogue  361

Future Innovators  361

Have Faith in the Leap  363

References  365

Index  367

Back Cover

“Cagan and Vogel offer examples, case studies, and inspiration to guide a new generation of  open-minded, actionable innovation drivers.”

Jeff Weedman, Vice President Global Business Development, Procter & Gamble


“To create profitable, breakthrough products that transform markets, you need real global innovation skills. Cagan and Vogel reveal how world-class companies leverage both to create impact through design.”

David Kelley, Founder of IDEO and the Stanford


“This new edition retains all the basic wisdom of the first, but brings it up-to-date with fresh case studies that reflect the changing world of global innovation.”

Henry Petroski, Aleksandar S. Vesic, Professor of Civil Engineering; author of To Engineer Is Human and To Forgive Design


“This book has been the most influential integrated design book in China for 10 years.”

He Renke, Dean and Professor of School of Design, Hunan University, China


“In Cagan and Vogel’s widely referenced, landmark first book, they reached across disciplines to create a common understanding of useful, usable, and desirable products. This second edition adds a global view, services, and a look into healthcare, further establishing them as the grandmasters of the recipe for empathic innovation.”

Robert T. Schwartz, General Manager, Global Design & User Experience, GE Healthcare


“The second edition is a brilliant book that will move your company to success with less wear and tear and lower risk for all involved in creating and managing products.”

Lorraine Justice, Dean, CIAS, Rochester Institute of Technology; author, China’s Design Revolution


“I wouldn’t dream of commercializing a new product or service without infusing the  Creating Breakthrough Products design culture into my company and development teams.”

Eric Close, President and CEO, RedZone Robotics, Inc.(


“This book has helped greatly to expand the innovative use of design in many areas of industry.”

Yrjö Sotamaa, Advisory Dean and Professor, College of Design and Art, Tongji University, Shanghai;Executive Vice Director, Sino-Finnish Centre at Tongji University; President Emeritus, University of Art and Design Helsinki


“The authors’ approach to product development unleashed the collective creative genius of our designers and engineers, and helped us move beyond a typical competitive benchmarking approach, to create something unique, appealing and functional for our customers.” 

Paul Prichard, Innovation Ventures Engineering, Kennametal, Inc.


“Navistar has made strides in learning the iNPD techniques from this book and applying them to our everyday development process.”

David Allendorph, Director of Design, Navistar International Truck Group


For years, Creating Breakthrough Products has offered an indispensable roadmap for uncovering new opportunities, identifying what customers really value, and building products and services that redefine or  create markets. Now, Jonathan Cagan and Craig M. Vogel have thoroughly updated their classic book,  adding brand-new chapters on service design and global innovation, plus new insights, best practices, and a new selection of case studies that highlight the current state-of-the-art in product and service design.


This Second Edition shows how companies like  Apple and Disney manage evolutionary and  revolutionary innovation, helping you choose  between them and make your best strategy work in your organization. You’ll find important new insights into identifying Product Opportunity Gaps that can lead to enormous success; effectively navigating the “Fuzzy Front End” of product development; and  leveraging contributions from diverse product teams. Cagan and Vogel present powerful new case studies ranging from Navistar’s latest long-haul truck to P&G’s reinvention of Herbal Essences, and offer insightful updates to the First Edition’s pioneering cases.


More than ever, Creating Breakthrough Products  will help you deliver the right innovations and  products: offerings that succeed powerfully because they are laser-focused on your customers’ values  and lifestyles.


Moving to the “value quadrant” in product/service development

Understand the seven key attributes of value and focus R&D on maximizing some or all of them


Uncovering huge Product Opportunity Gaps nobody else has exploited

Find immense opportunities in the hidden connections among social change, economic trends, and  technical innovation


Crafting tomorrow’s dominant  product-service ecosystems

Integrate products, interaction, and service to  drive value competitors can’t match


Winning innovation everywhere: new cases, remarkable lessons across the globe

From metal cutting to packaging, elementary school classrooms to the Dallas Cowboys Stadium


Jonathan Cagan is the George Tallman and Florence Barrett Ladd Professor of Mechanical Engineering and Co-Director of  the Master of Product Development at Carnegie Mellon University. Globally known for his rigorous and effective approach to product  innovation, Cagan works extensively in research on innovation processes and tools, and teaching and leading innovation teams in both university and corporate settings. Cagan has worked with a variety of companies ranging from Fortune 100 to entrepreneurial start-ups such as Apple, Navistar, GlaxoSmithKline, and Philips Respironics.


Craig M. Vogel is Associate Dean for Graduate Studies in the College of Design, Architecture, Art, and Planning at the  University of Cincinnati. He is also a professor in the School of Design with an appointment  in Industrial Design. He is a Fellow, Past  President Elect, and Chair of the Board of the Industrial Designers Society of America (IDSA). He is a cofounder and president of the Live Well Collaborative, a nonprofit company working with corporations to address the challenges and opportunities of a globally  aging world.