Why students should care about Product Design
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1 Why students should care about Product Design Mark F. Hurwitz 2017
2 In our dedication to research, we forget engineers create new knowledge but always with the goal of providing specific benefit to specific people.
3 The world is changing: Graduation Rates Rise New U.S. PhDs by year Number of PhDs Year Engineering Math & Comp. Sci. *Compiled from National Science Foundation, National Center for Science and Engineering Statistics
4 while Faculty Positions Flatten Out Number of Engineering Professors in U.S Assistant Prof Assoc. Prof Full Prof *National Science Foundation, National Center for Science and Engineering Statistics Science and Engineering Indicators 2014
5 More PhDs are Moving Out of Academia *National Science Foundation, National Center for Science and Engineering Statistics Special tabulations (2013) of the Survey of Doctorate Recipients Percentage of Science, Engineering, and Health PhDs Employed in Academia*
6 Things are also changing in Industry Venture Capital backed companies are doing a larger share of R&D in industry. Note: VC backed public companies start as small VC backed private companies. U.S. Public Company R&D Spending* *Gornall, Will and Strebulaev, Ilya A., The Economic Impact of Venture Capital: Evidence from Public Companies (November 1, 2015). Stanford University Graduate School of Business Research Paper No Available at SSRN: or
7 The Role of the R&D Professional is Changing In the 20 th century* Research produced New Technology New Technology was handed to Marketing who handed a Product Specification to Engineering who handed the Design to Manufacturing who delivered Product to Sales. *Personal observation from my 40 year industrial R&D career. **Museum of the City of New York
8 Now, in the 21 st century* Small integrated teams develop a product idea into a complete business. Research professionals are on the team from concept through sales. This is true in companies of all sizes. *Personal observation from my industrial R&D career
9 MSE/CHEME/MAE 7070 teaches A common framework in which Technical and business professionals together Produce successful new products And how technology can Enable new products Which solve real problems for real people
10 The Course in a Nutshell Method: Students work on new product teams. Instructor guides, lectures and acts as senior executive. Real world feedback: Guest lecturers & reviewers. Students learn to: Iteratively design Product Identify Value Proposition and Target Customer Define a complete, viable, business around the product Verify or falsify business hypotheses through interviews Students produce: A detailed design (including prototype only for apps) A midterm progress report and presentation. A final report and pitch presentation. Grade based on presentations, reports, and peer review
11 What Product? From students research or interests or brainstorming. Big Audacious Goals : Major demographic trend NAE Grand Challenge * UN Global Issue** No need to save the world, just make a meaningful contribution. * **
12 Design Focus: Minimum Viable Product (MVP) MVP = least number of features that deliver the Value Proposition to the Target Customer. Iterative development of MVP Get Out of the Building * to identify customers and test Value Proposition. Top-Down function and system design Robustness & Quality: Design Failure Modes and Effects Analysis (DFMEA)** Planning: Gantt charts and scrums & sprints. Patents: Process, claims and infringement. *Steve Blank, Bob Dorf, 2012, The Startup Owners Manual, K&S Ranch, Pescadero **Anleitner, MA, 2011, The Power of Deduction Failure Modes and Effects Analysis for Design, ASQ, Quality Press, Milwaukee
13 Will it make money? Teams use the Business Model Canvas* to iteratively define a complete business around the product. Iteratively improve estimates of: Product cost Customer acquisition cost Lifetime customer value Cash flow and Return on Investment The Ask: What is the next stage and how much money is needed to get there? *
14 Stages and Milestones First Hypotheses: Value Proposition, Customers & Product Test and iterate: Get out of the Building, Top-Down design Mid- Course Review Final design & business model: DFMEA, Suppliers & Channels, ROI Final Pitch Student teams will frequently present progress to instructor and invited faculty throughout the semester. Invited faculty and experts from industry will attend Mid-Course Review and Final Pitch.
15 END
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