1 Forecast for Design, Make, and Use is Cloudy FirstBuild at GE Appliances Justin Berger, Open Innovation Strategist
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
1
Forecast for Design, Make, and Use is Cloudy
FirstBuild at GE Appliances
Justin Berger, Open Innovation Strategist
2
FORGE DEVCON 2016
—
• Why FirstBuild
• The Model: Design, Build, & Sell
• Product Case Study: Prisma Cold Brew
• The Impact of Cloud Technology
AGENDA
3
THE PROBLEM:When you excel atmass production,
innovation can havemassive risks
4
TRADITIONAL PRODUCTION
Mass Production
Years to market
Rare product launch
Limited innovation
Sa
les
Qu
an
tity
Barrier 3: Selection Bias
100,000+100,000+
Time to Market
Barrier 2: Production Cost
Barrier 1: Confidentiality
___________________
High Cost
Risk Assessment
Uncertainty
5
MICROFACTORY PRODUCTION
Full-scale production
11-100
101-1000 Low-Volume Production
Minimum Viable Product1-10
Market Validation
Micro-Factory
First Sale in 3-6 months
Sa
les
Qu
an
tity
Time to Market
100,000+
Mass Production
6
Invent a new world of home appliances by
creating a socially-engaged community of home
enthusiasts, designers, engineers, and makers
that will share ideas, try them out, and build
real products to improve your life.
1B
MISSION
7
COLLABORATIVE ECONOMY
8
ONLINE COMMUNITYwww.firstbuild.com
9
PHYSICAL COMMUNITYLouisville, KY
10
SHIFTING TO A MAKING MINDSET
INTERNAL FOCUS Design to pre-determined specifications
MAKE LATERMaking is the last step of the design process
LIMIT INNOVATIONUse business processes to filter out ideas
CONSTANT ITERATIONFeedback from consumers and enthusiasts
MAKE SOONERCreate solutions to better understand problems
PURSUE INNOVATIONThink in terms of possibilities, not processes
11
DESIGN – BUILD - SELL
12
LIFTING THE BARRIERS
DESIGN
Co-creation
through open
innovation
BUILD
Rapid prototyping
and microfactory
production
SELL
Validation of design
through early sales
• Months to market
• Frequent and numerous
product launches
• Innovation is welcome
13
v
14
PROJECT CHOOSING
PROCESS
DECISION POINTS
—• Game changing & Innovative – New
value proposition
• Needing market validation
• Transfers to a core product
• Manageable risks – Safety and
Investment
1052
10
15
4 PATHS
FEATURE ADDED TO EXISTING PRODUCT
—• Oven Drawer
• Chill Hub
TECHNOLOGY TRANSFER
—• Paragon
• Opal
RE-PACKAGING /CUSTOMIZATION
—• Monogram Colors
• Monogram Single/
Double
NEW PRODUCT / PROPOSITION
—• Microkitchen
• Pizza Oven
16
v
17
METHODOLOGY
HIGH VOLUMEMODEL SHOP“HACK”
Collaboration w/ GE Plants
Range (Lafayette):- EZ Load Oven
- Single Double Wall Oven
Monogram (Selmer):
- Graphite Colors
Refrigeration (Louisville):- Chill Hub
“Bottoms Up”
1B: - Pizza Oven
- Micro Kitchen
- No Investment in hard tooling- Low cost change over / iteration
- Demand pull
Scalable
Source: - Paragon
- Opal- Pique
18
DFM – LOW VOLUME CAPABILITY
Plastic
• Cut
• Bend• Draw• Weld
• Urethane Casting
• Thermo Form• 3D Printing• Vacuum Forming
Sheet Metal Finishes
Controls Hardware Assembly
Partnering with Appliance Park
• Powder Paint
• Vinyl Clad
• Boards
• Wiring
• Machining • 5 products – 30/week
• Chassis
• Large volume 3D printing• Low volume injection molding
• Painting
• Stamping
19
v
20
CROSSING THE CHASM – IN REVERSE
21
FIRSTBUILD GO-TO-MARKET
PRIMARY PATH
—
• Online direct via FirstBuild.com• Retail via FirstBuild HQ• Contract direct (microkitchen)
STRATEGIC CHANNEL ENGAGEMENT
—• Select retail and contract partners• GEA store
TEST & LEARN
—
• Crowdfunding• Online-only retail partners• New channels
22
PRODUCT CASE STUDY
23
THE COMMUNITY LOVES COFFEE
HACKATHON CHALLENGE PRODUCTCROWDFUNDCHALLENGE
PIVOT
24Hackathon: Hack the home
HOUSE ROAST, HACKATHON
BORN
25
HOUSE ROAST
CHALLENGE
Highlighting tools, integrating development
• FirstBuild identifies product need, hosts challenge
• Instructables educates on background
• Fusion 360 provides modeling tools and resources
• Sweet Maria’s brings industry expertise, coffee enthusiasts
Partnering to Expand Reach• Cross-pollinate existing communities
• Drives increased page views and participation
• Amplify Press coverage
1st: Ember 3D printer 2nd: Othermill CNC
3rd: 1 yr Fusion 360 Student: Othermill
31 Entries (modeled in Fusion 360)
4 winners chosen (meeting all design criteria):
26
PIVOT TO PRISMA
1st: $5000 2nd: $3000 3rd: $2000
Roasting Coffee
VS
Cold Brew CoffeeSource: Google Trends
Design Challenge: Cold Brew Coffee
1% of campaign
Royalties shared between winners
27
7,000Backers
• Tim Cook
• Eric Schmidt
• $2.7MM by end of 30 day campaign• 9th most funded campaign in Indiegogo history• Crowdfunding is now prime location for validation
$2,772,000pledged
8,559Backers
$3,126,000pledged
9,522Backers
$2,437,429pledged
IN GOOD COMPANY WITH OPAL
28
IT’S GETTING CLOUDY…
29
EARLY LESSONS
DON’T REINVENT THE WHEEL
MAKE INTERNAL DATA AND LESSONS EASY TO FIND
LET’S ALL WORK FROM THE SAME PART
REV CONTROL SHOULD BE EASY, BUT WE MESS IT UP
I THINK I UNDERSTAND
CORRECT ITERATIONS WITH REAL-TIME EDITS
1
2
3
30
IDEAS MOVE SLOWLY IN A VACUUM: FROM FORMS TO FORUMS4
31
TEAMS COLLABORATE ACROSS BORDERS5
32
AGILE
COMMUNITY INVOLVEMENT
—
• Communicates to all stakeholders (Community,
Leadership, and Team)
• Run in 2 week sprints (Sprints are staggered)
• Visual Product Funnel
• Identifies areas of need
1B INVOLVEMENT
—
• Shows resource allocation
• Focus on skills rather than dedicated teams
• Identifies roadblocks
• Communicates priorities
6
33
DECENTRALIZED MANUFACTURING IS NIMBLE7
34
TRULY REAL-TIME INVENTORY 8
35
LIVE SALES DATA – TARGET MARKET
TARGETED MARKETING
—Campaign success driven by building a strong email list of
early adopters and ice enthusiast. Social media targeting
allowed for direct engagement with relevant audience.
DEMOGRAPHIC VALIDATION
—Unit sales confirmed hypothesis of regional passion for
nugget ice. Highest volume of sales from Texas and
southern states.
9
36
IT’S EASIER TO WORK IN A TRANSPARENT WORLD10
37
QUESTIONS?
39
BEYOND A PARTNERSHIP-
Powered by UofL Students
40
COMMUNITY IMPACT
Hardware Startup Startup Weekend New2Lou
41Hackathon: Hack the home
Related Documents
