Business executive • MAY 11


disciplines: mechanical engineering; the physics of foams; control software. In addition, Jura places emphasis on the aesthetics of its machines; its designers took inspiration from the shape of a coffee bean in defining the unique lines of the Z5. However, Jura has not just concentrated on the design of the product; it also offers a carefully designed premium service to match the product. Firstly, the Z5 is designed for easy operation and


maintenance. For example, in contrast to many other products on the market, the grinder does not need to be removed, as it is self-cleaning. The Z5 also has an array of sensors that enables it to prompt owners to re-fill the coffee beans, or change the water filter, or initiate the cleaning cycle. Should owners have a problem, a hotline number provides first-line advice on how to solve it. Should the machine experience a fault, the hotline operator will advise on fast dispatch and repair. In Switzerland owners often drive to Jura’s state-of-the-art ‘service factory’ (a servicescape in itself). There they can watch while the problems with their machine are diagnosed and the repair costs estimated. Fast maintenance and repair are foremost in Jura’s service strategy, but they are also careful to work on customer contact. Many manufacturers send advertising and other material to owners registered through warranty schemes. Often such marketing can be intrusive and so Jura have focused on just one communication a year – Z5 owners receive a Christmas card with new coffee recipes. To support luxury products, manufacturers


increasingly need to be just as careful in designing their services as the products themselves. Few do it as well as Jura.


use of the term Gemba is similar to the way in which researchers talk of their field. Sending new product development employees into


the Gemba to conduct the market research had the advantage of widening commitment but most of the employees were not experienced in market research. So Nokia produced a ‘Training Guide’ for the team: this consisted of an introduction to the objectives of the research; an explanation of the importance of the Gemba, guidelines for observation; guidelines for approaching and interviewing people; and obtaining volunteers for focus groups. Following the procedures in the Guide, Nokia employees collected photographs of the locations where they made their observations, the answers to a questionnaire and short field notes following a set format. The Nokia case demonstrates three important issues.


Firstly, the importance of having market research conducted by the new product development team and not just by a market research company. Secondly, the need to provide clear guidelines for the team involved, to ensure that observations are conducted systematically and consistently. Thirdly, the reluctance of Japanese people to voice their opinions to strangers shows that cultural issues need to be addressed. From the information that Nokia have published, it


appears that the primary limitation of their research was that those involved had no previous experience of systematic observation. Although the Training Guide was prepared, it is difficult to learn systematic observation without practice. Inexperienced researchers can learn much more from working with skilled observers who are coding video tapes of consumer behaviour. An important part of any ethnographic research project is the training of the team. Often the best way is to have the most experienced researchers make the first visits and use the data collected as an intricate part of training of the rest of the team.


Nokia — Going to the Gemba


One of the world’s leading manufacturers of mobile telephones, Nokia, has recognised the importance of observation in understanding customer culture. The UK operation that is responsible for developing some of the company’s products was aware that the Japanese market has different characteristics. Rather than employing a market research company, management decided that it was important for members of the new product development team to see the issues first-hand. Therefore, sales, marketing, R&D and managers were all paired up with Japanese colleagues. These pairs observed Japanese people using mobile phones in public places and gathered opinions, which meant that issues such as the delicacy of approaching people on the street had to be considered. In Japanese quality management, the word “Gemba”


means, “where things actually occur; raw, untainted information”. It is used to stress that managers must spend sufficient time on the production floor if they are to learn how to improve production efficiency. Nokia’s


These case studies illustrate the diversity of innovation.


As managers we need to break out of the formality of thinking “inside the box”, and really get outside and look at the business from the customer’s point of view. These cases are refreshing examples of considering what the customer wants and appreciates. We shall have further examples in our next issue.


Book offer


Palgrave Macmillan, the publishers of the authors’ book, Innovation Management are kindly offering Business Executive readers who would like to buy the book a discount of 20% (RRP £32.99). The net price to readers of Business Executive will thus be £25.99, including free postage and packing. To purchase go to: www.palgrave.com and enter the code INNOVATION2011a


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