Hi everyone. In this video, we're going to be discussing Concept Generation and Overview. When we are settling on our final concept, a lot of it will have to do with going through and making sure that where our customer needs are clearly identified and that we've set the target specifications, and what the feasibilities of being able to meet those specifications within a certain price point for the customer. A lot of times you may find where I see a lot of companies go wrong is that they put way too much capital into the overhead operations of the company because they don't really quite know where to automate, where to save money, what to outsource, and that builds up a lot of the production costs. However, there are a lot of tools that you can use for really lean and efficient overhead management of your company. That way you can put more capital into the proper development and quality of your product or service without having all that go to stuff that doesn't really benefit the customer a whole lot because we have to stay focused on the customer and their needs. In this example, we're going to be using a physical product. However, I'll touch on how to apply this to a software platform or application as well, or a wearable technology because those are always fun. Concept Generation. This is for a Power Nailer. The reason why we use this is because it's got different components that are dependent on each other. There's some element of modular architecture, some integral, it's mostly integral in this aspect, but like this example. You clarify the problem using a nailer. The difference is and when you take a look at who you're injured, sorry, is another reason why I like this example is that there are people who will use a nailer for projects, just around the house and then there are those who are working in commercial construction who may need to be able to use it hundreds of thousands of times a week. Well, thousands depending on how much people use nailers. But when you're putting up drywall or different kinds of studs or putting things in or putting on roofs, things that require a lot of use, those tools are going to need to be a lot more hardy than something that people like me would use, which is really not that often. You can search externally outside of your own industry and what your experiences are and within your own game. Let's just say that you are working in commercial construction and you see problems with nailers on the market, maybe they're not compact enough with being able to go up to high places or whatever and all those that are compact or maybe too flimsy and you've got an idea for how to improve it. Internally would be that sort of an example from your own experience. But then you may say, okay, there's not that big of a market in order to make the R&D feasible and you want to build economies of scale, so then you can look externally. What are some other industries or areas that may use this and have certain needs that you can hit their targets? Here's another physical product 1, for example. Vegetable Peelers, as you can see, there's a wide range, and a lot of them are typically supposed to do the same thing but as you know when you use a vegetable peeler depending on what you're using, you may have a favorite one. I spent too much time in the kitchen. Here are the questions and the customer thoughts. Remember we go back to take a look at what our customers trying of thinking is and being able to translate those into requirements and then into specifications. Remember, when you do start your company, get as much feedback from customers as possible so that you've got a lot of this qualitative information that you can then start to incorporate and break down into quantifiable specifications. Try not to worry or think that it's useless because what I found is that, the voice of the customer, even if it is often very basic terms, you can gain a lot of insight by doing a lot of interviews with people and you'll see certain trends coming out. Even if you look over this and you're like "What am I looking at here?" It can still be really useful. Don't just say, "I don't care what people think. I want to do my own thing" because remember, we're basing it around the customer. Here are some examples. I cut myself with this one. I'm left-handed, I use a knife. Here's a rusty one so you might say, okay, well, I'm going to use stainless steel or things that don't rust. Not bigger metals. But when you take a look here, I just leave the skin on, this is an important one not just for skin but looking at people's habits, buyer-user, consumer habits. Now, you'll notice that a lot of cans of tuna coming bags or in the cans have a ring pool and don't require a can-opener because Millennials, like as a matter of research, a lot of millennials don't own a can-opener. Then you have to take a look at what are the ergonomics involved that could impact whether or not your product is consumed? As customer needs, peels a variety of produce, it creates minimal waste, saves time, durable, easy to clean. Then you take a look at the decomposition. In this case, it's this one using a nailer, so energy input, output and it is applying it in this regard to looking at the integral nature and the integral architecture involved in this versus looking at it from a modular system. When you have a software product where you start to look at the problem and breaking it down into different areas especially now with the technology, how it is. The architectures are a lot more complicated and also you need to have different a whole range of features and uses that we haven't had to see up until now. Whether it works with certain devices, what the customer is able to do at the time, if you're using an app that has to do with maps or driving, it can't be too complicated because you want people to be focused on the road. What is the customer doing at the time that they using your software? Understand the processes involved in using the software or physical product or the service. In terms of providing a service, you really have to factor in non-ideal conditions as well where you have to do that regardless. But when providing a service, non-ideal conditions require a huge human element and that's where you can see a lot of things go wrong or arise. That's why it's a good idea to have user experience mapping and looking at probability trees and quantitative decision-making to be able to map out how you get the customer from the difficult situation that they're in into their destination, so understand the concept combinations as well. If you're providing a software product to people that comes also with a service, what can you automate? What can you outsource and how do you keep the quality controls in place? Tying those different things and map them out and what I found sketching all of these, you may find that flipping or reversing the model in certain areas can really help as well. Thanks.