NEW PRODUCT DEVELOPMENT USING DESIGN THINKING FOR HOME DECORATION PRODUCT (CASE STUDY : ALGAEID) FINAL PROJECT By Noor Nafisah 19221008 Undergraduate Program Bachelor of Entrepreneurship School of Business and Management Bandung Institute of Technology 2024 i APPROVAL PAGE NEW PRODUCT DEVELOPMENT USING DESIGN THINKING FOR HOME DECORATION PRODUCT (CASE STUDY : ALGAEID) By : Noor Nafisah 19221008 A Final Project for Partial Fulfillment of the Requirement for the Degree of Bachelor of Entrepreneurship Bachelor of Entrepreneurship Program School of Business and Management Bandung Institute of Technology Juli, 2023 Approved by Yulianto Suharto, PharmD, MBA, M.Sc. NIP. 118110077 ii NEW PRODUCT DEVELOPMENT USING DESIGN THINKING FOR HOME DECORATION PRODUCT (CASE STUDY : ALGAEID) Noor Nafisah 19221008 Supervisor : Yulianto Suharto, PharmD, MBA, MSc. Bachelor of Entrepreneurship Program School of Business and Management, Bandung Institute of Technology (noor_nafisah@sbm-itb.a.c.id) ABSTRACT The issue of climate change has gained unprecedented attention in recent decades, with its impacts being felt globally. One innovative solution to mitigate climate change is the use of microalgae-based technology, known for its high efficiency in absorbing carbon dioxide compared to traditional trees. This research aims to contribute to the development of green technology by exploring the commercial potential of a microalgae-based home decoration product, specifically a lamp by AlgaeID. The objectives of this study are to gather feedback for product improvement and identify key factors influencing the adoption of microalgae- based home decorations. Using semi-structured interviews with a stratified random sample of Gen Z and millennial respondents, the study reveals critical insights into the design, functionality, and cost considerations for the AlgaeID prototype to meet market’s expectations and demands. The study underscores the importance of balancing aesthetic appeal, practical functionality, and environmental impact in product development. Key words : Carbon, Climate, Design, Development, Microalgae, Technology iii PENGEMBANGAN PRODUK BARU MENGGUNAKAN DESIGN THINKING UNTUK PRODUK DEKORASI RUMAH (STUDI KASUS : ALGAEID) Noor Nafisah 19221008 Supervisor : Yulianto Suharto, PharmD, MBA, MSc. Program Sarjana Kewirausahaan Sekolah Bisnis dan Manajemen, Institut Teknologi Bandung (noor_nafisah@sbm-itb.a.c.id) ABSTRAK Isu perubahan iklim telah mencuri perhatian berbagai pihak dalam beberapa dekade terakhir, dengan dampaknya yang dirasakan secara global. Salah satu solusi inovatif untuk mengurangi perubahan iklim adalah penggunaan teknologi berbasis mikroalga, yang dikenal dengan efisiensinya yang tinggi dalam menyerap karbon dioksida dibandingkan dengan pohon tradisional. Penelitian ini bertujuan untuk berkontribusi pada pengembangan teknologi hijau dengan mengeksplorasi potensi komersial produk dekorasi rumah berbasis mikroalga, khususnya lampu dari AlgaeID. Tujuan dari penelitian ini adalah untuk mengumpulkan umpan balik untuk perbaikan produk dan mengidentifikasi faktor-faktor kunci yang mempengaruhi adopsi dekorasi rumah berbasis mikroalga. Dengan menggunakan wawancara semi-terstruktur dengan sampel acak terstratifikasi dari responden Gen Z dan milenial, penelitian ini mengungkapkan wawasan kritis tentang pertimbangan desain, fungsionalitas, dan biaya untuk prototipe AlgaeID untuk meningkatkan daya tarik pasar dan keberhasilan produk AlgaeID. Kata kunci : Desain, Iklim, Karbon, Mikroalga, Pengembangan, Teknologi iv FOREWORD I express my greatest gratitude to my God, Allah. The one and only God for me. I am grateful for everything He has given to me, His help, His guidance, His mercy, and all the blessings in my life, especially in this case, my study throughout these 3 years in School of Business and Management, Bandung Institute of Technology. This exceptional opportunity has become my “war battle” to improve my capability, both as an individual and as a student who is a part of society. Additionally, I would like to express my gratitude and deep thankful heart to those who helped me finishing this beautiful journey starting from being a freshman in college up to the completion of this final project : 1. Me, my own self - who is always there for me no matter what. Always do her best despite the roller coaster she's been through in life. I know you are capable of anything, girl. 2. My Mom - who is always replying to my text and listening to my stories whenever I feel tired of everything, college life, work-life, and any other stories. Thank you mommy. 3. My Dad - Hope you are always doing well there, Dad. You are the only person who gives me exceptional trust and always teaches me how to believe in myself through your actions. 4. Mr Yulianto - who helped me a lot in writing this final project 5. My unconditional supporters, Laily and Fenny - My best friends since far far years ago, respecting every decision I have throughout my lifetime 6. My feels-like sister, Sofhi - Who is always busy but always checking in and listen to my mind as well, love you sister. 7. My girls, anti demo - You guys gave me a colorful college life. 8. My mentors in college - Random people I talked with and giving me lessons in professionalism and life in general. v TABLE OF CONTENTS APPROVAL PAGE ................................................................................................. i ABSTRACT .......................................................................................................... ii ABSTRAK ......................................................................................................... iii FOREWORD ......................................................................................................... iv TABLE OF CONTENTS ........................................................................................ v LIST OF FIGURES .............................................................................................. vii LIST OF TABLES ............................................................................................... viii INTRODUCTION .................................................................................................. 1 I.1 Background ........................................................................................ 1 I.2 Research Problem .............................................................................. 4 I.3 Research Questions ............................................................................ 5 I.4 Research Objectives ........................................................................... 5 1.5. Significance of Research ................................................................... 5 1.6. Scope and Limitation ........................................................................ 6 1.7 General Outline .................................................................................. 6 BUSINESS AND TECHNOLOGY DESCRIPTION ............................................. 8 2.1 Executive Summary ........................................................................... 8 2.2 Company Profile ................................................................................ 8 2.2.1 Company History ........................................................................ 8 2.2.2 Vision and Mission ..................................................................... 9 2.2.3 Organizational Structure ............................................................ 9 2.3 Current Business Stages ................................................................... 11 2.3.1 Concept Development Stage ................................................... 11 2.3.2 Technology Readiness Level .................................................. 12 2.3.3 Prototyping Stage ..................................................................... 13 2.3.4 Product-Solution Fit ................................................................. 14 2.4 Business, Market and Industry Analysis .......................................... 14 2.4.1 VRIN/VRIO Framework ......................................................... 14 2.4.1.1 Valuable ............................................................ 14 2.4.1.2 Rare................................................................... 15 2.4.1.3 Imperfectly imitable ......................................... 15 2.4.1.4 Non-Substitutable ............................................. 15 2.4.2 Business Model Canvas (BMC) ............................................. 15 2.4.2.1 Value Proposition ............................................. 15 2.4.2.2 Key Partnership ................................................ 15 2.4.2.3 Key Activities ................................................... 16 2.4.2.4 Key Resources .................................................. 16 2.4.2.5 Customer Relationship ..................................... 16 2.4.2.6 Channel ............................................................. 16 2.4.2.7 Customer Segment............................................ 16 2.4.2.8 Cost Structure ................................................... 17 2.4.2.9 Revenue Stream ................................................ 17 2.4.3 Porter Five Forces ..................................................................... 17 2.4.3.1 Threat of New Entrants .................................... 18 vi 2.4.3.2 Threat of Substitutes ......................................... 18 2.4.3.3 Bargaining Power of Buyers ............................ 18 2.4.3.4 Bargaining Power of Suppliers ......................... 19 2.4.3.5 Rivalry of Competitors ..................................... 19 2.4.4 Potential Market Segment ....................................................... 19 CHAPTER 3..........................................................................................................20 THEORETICAL FOUNDATION AND CONCEPTUAL FRAMEWORK ........ 20 3.1 Green product trend ......................................................................... 20 3.2 Green Product Purchasing Behavior in General .............................. 22 3.3 Green Product Purchasing Behavior in Gen Z ................................. 24 3.4 The Story of Electrical Vehicle (EV) Commercialization ............... 26 3.5 Product Development Theories ........................................................ 30 3.6 Design Thinking ............................................................................... 34 CHAPTER 4..........................................................................................................38 METHODOLOGY ............................................................................................... 38 4.1 Research Design ............................................................................... 38 4.2 Research Methodology .................................................................... 39 4.3 Data Collection ................................................................................ 39 4.3.1 Population and Sampling .........................................................