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PRoduCT And sERviCE dEvEloPmEnT As A PRoCEss  289
                             Preliminary design

                             This stage represents the beginning of detailed work on the product or service design. It
                             includes defining what will go into the product or service. This will require the collec-
                             tion of information about such things as the constituent component parts that make
                             up the product or service package, the product/service structure – that is, the order
                             in which the component parts of the package have to be put together, and the bill of
                             materials (BOM) – that is, the quantities of each component part required to make up
                             the total package. This stage also may include specifying how the various components
                             are put together to create the final product or service.

                             Design evaluation and improvement
                             This stage takes the preliminary design and attempts to improve it before the proto-
                             type product or services are tested in the market. There are a number of techniques
                             that can be employed at this stage to evaluate and improve the preliminary design.
                             Some of these techniques are concerned with costing the proposed product or service
                             and identifying areas for cost improvement. Some are concerned with fully exploring
                             the technical characteristics of the product or service in an effort to improve its over-
                             all value. Most are based on an approach that emphasises systematic questioning of
                             exactly what each part of the product or service is intended to contribute to its overall
                             value, why it is being done in a particular way and how it might be done differently. It
                             is not the purpose of this book to explore any of these techniques in detail.





                Example   Apple nearly ditched the iPhone 11
                      There can be few more successful products launched in modern times – the iPhone has
                      changed the way we look at smartphones and provided the benchmark for competitors’
                      efforts. It has sold millions worldwide and helped to make Apple into the world’s most valu-
                      able company. But few outside Apple know that the company considered abandoning the
                      whole idea. Sir Jonathan Ive, senior vice-president of design at Apple, has admitted that
                      Apple had worked on several ‘incredibly compelling’ products over the years, but decided to
                      call a halt to their development because of what seemed to be insurmountable technical or
                      sourcing problems. For example, one of the iPhone’s fundamental innovations (at the time
                      that it was being developed) was the touchscreen. And it was this component that proved so
                      difficult that it brought the project to the brink of being aborted. ‘There were multiple times
                      when we nearly shelved it because there were fundamental problems that we couldn’t solve’, said Sir
                      Jonathan. ‘I would put the phone to my ear and my ear dialled a number. The challenge is that you
                      have to then detect all sorts of ear shapes, chin shapes, skin colour and hairdos. We had to develop
                      technology, basically a number of sensors, to inform the phone that “this is now going up to an ear,
                      please deactivate the touchscreen”.’
                        The fact that the Apple designers overcame several technology and production bugs during
                      its development is partly a testament to the design team’s belief, both in their technological
                      skills and in their understanding of what people will buy. Yet, Apple avoids conducting market
                      research when designing its products – a policy introduced by Steve Jobs, its late chief executive.
                      ‘We absolutely don’t do focus groups’, said Ive. ‘That’s designers and leaders abdicating responsibility.
                      That’s them looking for an insurance policy, so if something goes wrong, they can say, well this focus
                      group says that only 30 per cent of people are offended by this and, look, 40 per cent think it’s OK. What
                      a focus group does is that it will guarantee mediocrity.’









        M08 Operations Strategy 62492.indd   289                                                      02/03/2017   13:07
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