Product and Service Design Sources of Ideas for New of Redesigned Products and services Within the organization Employees Marketing People Research Outside the organization Customers May submit suggestions for improvements or new products. Be queried through the use of surveys or focus groups. Quality Function Deployment Complaints can provide valuable insight into areas that need improvement. Product failures and warranty claims. Competitors One of the strongest motivators is competitors products and services. By studying a competitors products or services and how the competitor operates. Pricing policies Return polices Warranties Location strategies Reverse Engineering- purchasing a competitors product and then dismantle and inspects it, searching for ways to improve own product. Suppliers With increase emphasis on supply chains and supplier partnerships, suppliers are becoming an important source of ideas.Research and Development ( R& D) - Refers to organized efforts that are directed toward increasing scientific knowledge and product or process innovation. Basic Research Has the objective of advancing the state of knowledge about a subject without any near-term expectation of commercial applications. Does not lead to near-term commercial applications. Underwritten by the government and large corporations Applied Research Has the objective of achieving commercial applications. Development Converts the use of applied research into useful commercial applications.Applied research and development because of the potential for commercial applications, appeals to a wide spectrum of business organizations. Benefits of Successful R&D Leads to patents, with the potential of licensing and royalties. Profit before anyone can catch up. Early products may be priced higher because of the temporary monopoly.