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 Product & Marketing
 Innovation Workshop
 Delivered on 24 & 25 May 2010,
 at the IBN Conference
 Kuala Lumpur

www....
Our Learning Agenda
                                                     2

     DAY ONE                                  ...
Chapter 1:
                     What is Innovation?
                              3




www.invitro.com.sg                ...
What is Innovation?
                            4

“INNOVATION …IS APPLYING KN OWLEDGE TO A REAL
PROBLEM AND TAKING AN IDE...
What is Innovation?
                                                   5

  Innovation is not a new concept
        Busi...
The most innovative companies have outperformed the S&P
                  500 as well as the S&P Global 100
              ...
Past Success cannot be sustained by old Methods
                                                     7


  As Gary Hamel ...
Types of Innovation at Enterprise Level
                   8




                              PRODUCT & MARKETING INNOVAT...
Types of Innovation
                                                                       9

Changing the way business is...
Category Innovation / Business Model
                                                  10

  This is required when compan...
Brand Innovation
                                             11

   This is required when the brand is seeking a distinct...
Product & Service Innovation
                                              12

  Not just a one-off but an ongoing cycle ...
Types of Innovation Marketers can influence
                                                13

  It is useful to see Inn...
Types of Innovation Marketers can influence
                                14




www.invitro.com.sg                     ...
Types of Innovation Marketers can influence
                                15




                                       ...
Types of Innovation Marketers can influence
                                16




                                       ...
17




1% of your purchases on your Target REDCARD can be donated to a School of your choice. In your
neighbourhood.


www...
Types of Innovation Marketers can influence
                                18


                                         ...
19




www.invitro.com.sg
Types of Innovation Marketers can influence
                                                             20



           ...
21




 ING Direct, the discount stock broker best known for its bright orange logo and branches that look
 like sandwich ...
22




Kiva.org allows anyone to make a loan to an entrepreneur in the developing world. The
businesses, like the loans, a...
Types of Innovation Marketers can influence: Which
                          One?
                            23



      ...
Where does Innovation come from?

                                               24


                     W H AT I S T H ...
Possible Sources of Innovation
                                     25




                            Imperfect experienc...
26


           Bedside Telephone in Hotel Room        In-flight Safety




www.invitro.com.sg
Ideas at the Heart of Innovation
                                    27




www.invitro.com.sg                            ...
Ideas at the Heart of Innovation
                                     28

  Behind every product or service launched shou...
The simple idea headline
                                                   29

  The Idea Headline should create suffici...
The simple idea headline
                                             30

  Ideally the product idea or concept as it is ...
Exercise - Evaluate this Idea
                                                31

  Panaflex Patch – Pain relief patch wh...
Chapter 2:
         10 Lessons in Marketing Innovation
                         32




www.invitro.com.sg                P...
Lesson 1
                     Innovation work requires an “Invitro”
                                 environment
         ...
True breakthrough solutions are realised by
                imagining rather than rationalising
                          ...
Innovation work requires an “Invitro” environment
                                       35

  Brand and Product idea gen...
Lesson 2
              Make Innovation Routine, not Accidental
                                                         36...
Make Innovation Routine, not Accidental
                                         37

  Much innovation just happens, some...
Lesson 3
                     Product Innovation is no Surrogate for
                                 Brand Clarity
      ...
What is the Innovation building?
                                               39

     A weak equity can create poor in...
Lesson 4
                     Innovation is a Team Sport
                                         40


           INNOVATI...
Innovation requires a Diverse Set of Perspectives
                                 41

 • Convergent thinking tends to pro...
Lesson 5
                     Engineer the Ideation Process
                                                    42


     ...
Structured Ideation Process
                                  43




www.invitro.com.sg                           PRODUCT ...
Design Your Own Innovation Event
                                     44




www.invitro.com.sg                           ...
Lesson 6
                     Make Inspiration a Discipline
                                                              ...
Digital and Analog inspiration streams
                               46




www.invitro.com.sg                        PRO...
Lesson 7
                     Get Centred on Your Customer
                                              47

             ...
Consumer Inspiration
                               48




www.invitro.com.sg                          PRODUCT & MARKETING...
Lesson 8
                     Question all Your Assumptions
                                                       49

   ...
Provocations to Innovation
                                                          50


        1.    Which factors that...
Lesson 9
               Engage both Left and Right Brain
                                                     51

        ...
“What if …” Free-wheeling
                                 52




www.invitro.com.sg                           PRODUCT & M...
Borrowing Brilliantly
                               53




www.invitro.com.sg                           PRODUCT & MARKETI...
Lesson 10
                          Innovation is Serious Play
                                                           ...
Innovation is a creative process, it should be
                inspirational, interactive and fun
                        ...
Chapter 3:
                 The 5 Step Innovation Process
                              56




www.invitro.com.sg         ...
57




www.invitro.com.sg        57
58


The most critical step in
the process which
anchors all innovation
activity in understanding
of the weaknesses of the...
59


While the collection of
data on key consumer
markets should be a
year round activity,
innovation demands
that we orga...
60


Intense ideation
sessions over the year.
These can be highly
informal or formal. The
key is to arm idea
generators wi...
61


A key skill for
marketers to
develop is to be able
to sift the great
ideas from the
average.




 Step 4: Idea Screen...
62


This involves taking the
strongest ideas as
evaluated by
consumers and
starting to prototype
these ideas for in field...
Managing the 5 Step Innovation Process
                                  63

  Assemble a Multi-functional Team


  Key ...
Chapter 4:
                     Brand As Innovation Anchor
                                 64




www.invitro.com.sg     ...
Brand As Innovation Anchor
                                            65

  A strong brand bridges the gap between who y...
Brand As Innovation Anchor
                                  66

  It goes without saying that before embarking on formal...
Brand Equity: Overall
                                     67

  Captures the single-minded idea
   of what you want the ...
Brand Equity: Building Blocks
                                      68

  Captures the few, key aspects of
   the brand t...
Brand Equity: Design Theme
                                                69

  A metaphor that defines the aesthetic
  ...
Brand Equity: Equities Consumers Experience
                                            70

  Includes the few key elemen...
Brand Equity: An Good Example
                                                71

  A Brand Equity should reflect the
   ...
Chapter 5:
                        Foundation Work
                                     72


                   “SUCCESSFU...
73



               “The future is life seen through the lens of
                                possibility”
           ...
Foundation Work: The 4 Lenses
                                   74



                                        The Future ...
Framework for Understanding the Problem
                                  75




                         ISSUES & OPPORTU...
The Future Lens
                                                          76

  What trends and opportunities can drive o...
The Brand Lens
                                           77

  It‟s important to understand what the brand is capable of...
The Competitive Lens
                                          78

  A good starting point is to map the competitive land...
Foundation Work: Identify Opportunities and Challenges
                          79




www.invitro.com.sg                ...
Discovering a Category Problem
                             80




www.invitro.com.sg                    PRODUCT & MARKETI...
81




www.invitro.com.sg   Laundry Category   PRODUCT & MARKETING INNOVATION WORKSHOP
What Conventional Wisdom defines the our Category Today?
                                                    82



       ...
83




www.invitro.com.sg   Laundry Category   PRODUCT & MARKETING INNOVATION WORKSHOP
What conventional wisdom
           defines the Bottled Water Category today?
                               84


        ...
Innovation in the Bottled Water Category
                                  85




www.invitro.com.sg                      ...
Chapter 6:
         Foundation Work: Consumer Knowledge
                         86




www.invitro.com.sg                ...
Consumer Knowledge to Insight
                                        87

  The Consumer Knowledge component also provide...
Consumer Knowledge Sources
                                  88




www.invitro.com.sg                           PRODUCT &...
89




Existing Research
A good starting point is to
collect all research reports (no
matter how old) and attempt to
summa...
90




Category Digging
Explore Adjacent Categories:

Look within your category for new and interesting
ideas and look at ...
91



Category Digging
Go Shopping:

R&D Possibilities: If you have an R&D function, ask
them to share any interesting tec...
92



Category Digging
Talk to Experts:

An often overlooked and very potent source of insight
and fresh perspective is to...
93



Category Digging
New Target Learning

Extreme Users: We usually talk to the same set of core
users we want to unders...
94



Category Digging
New Target Learning

Broad Shifts and Trends:

Scanning for broad trends, these can be found by
loo...
95



Category Digging
New Target Learning

Observe the target:

Simply observe the target, in their everyday life, while
...
Consumer Experience Mapping
                                                              96

                     THE OBJ...
Consumer Experience Mapping
                                  97




www.invitro.com.sg                           PRODUCT ...
Consumer Experience Mapping: Paint Purchase
                            98




www.invitro.com.sg                      PRO...
2. Explore
                                                        99




                               Store visit 1


 ...
2 Key Pain Points
 There is so much choice
Which colour is right for me?                     100

                        ...
101




    The current retail space
 does not serve the consumers
       Colour choice or
      How to paint needs




ww...
2 Key Innovation Points
                                                 102

 1.    Help consumers make more confident co...
Consumer Knowledge Exercise
                                        103



               EXERCISE : MAP THE BUYING EXPERI...
Consumer Experience Mapping For Your Category
                           104


                                 1. Walk th...
Chapter 7:
                Framing Innovation Challenges
                             105




www.invitro.com.sg          ...
Targeting the Innovation to a Challenge
                                     106

  Innovation challenges at any organiza...
Floor Cleaning Products Innovation Challenge: How might we?
                                               107


  “De-co...
Floor Cleaning Products Innovation Challenge: How might we?
                                           108

  The answers...
Setting Idea Success Parameters
                                        109

  What are you looking for?
    Ideas to im...
What are the Innovation Challenges for a Brand
          seeking to enter the packaged water category?
                   ...
Chapter 8: Idea Generation
                                 111




www.invitro.com.sg                        PRODUCT & MA...
Where do Ideas come from?

                                112




www.invitro.com.sg                         PRODUCT & MA...
Where do Ideas come from?
                                 113

  Draw a mind map of where your ideas come from?




www....
Where do Ideas come from?
                                 114

  Draw a mind map of where your ideas come from?
    In ...
Isolating Idea Generation from regular work
                                   115

  The nature of work is that it is us...
The Ideation Event
                                      116

  An Ideation Event can take many forms but mostly includes...
The Ideation Event Guidelines
                                      117

    1. Treat each other with respect.
    2. be s...
The 4 Basic Rules of Brainstorming
                                                   118

  Judge Later: During the idea...
A Two day Ideation Event
                                              119

  Although smaller ideation requirements can ...
2 Day Agenda
                                                            120

Day 1                                       ...
Ideation Tools
                                              121


              1.     FORCING CONNECTIONS:
             ...
Using Inspiration to force connections
                                            122




                     INSPIRATIO...
How Might we use Inspiration:
                            Aloe Vera Drinks
                                          123

...
Using Inspiration to force connections
                                             124




                     Insight: ...
Borrowing Brilliantly
                               125




www.invitro.com.sg                           PRODUCT & MARKET...
Engineered Provocations - “What if …”
                                       126




www.invitro.com.sg                   ...
Random Idea Generation
                               127




www.invitro.com.sg                            PRODUCT & MARK...
Idea Generation Excursion
                                128




www.invitro.com.sg                         PRODUCT & MAR...
What are the Innovation Challenges for a Brand
          seeking to enter the packaged water category?
                   ...
We will use each of the 4 Types of Ideation
                  Tools to generate 100 Ideas!
                               ...
1. Forcing Connections
                                            131




                     INSPIRATION OR            ...
2. Borrowing Brilliantly
                                132




www.invitro.com.sg                              PRODUCT &...
3. Engineered Provocations - “What if …”
                                        133




www.invitro.com.sg               ...
4. Random Idea Generation
                                 134




www.invitro.com.sg                               PRODUC...
Consolidate Ideas for the Water Category?
                                  135




www.invitro.com.sg                    ...
Chapter 9: Developing & Evaluating
                        Ideas
                          136




www.invitro.com.sg     ...
3 Key Idea Evaluation or Testing phases
                                   137

  Internal Idea Headline Evaluation
  Qu...
Internal Idea Headline Evaluation
                                                      138

  At a first stage idea eval...
How Ideas Develop
                                     139




                          Headline

                       ...
3 Key Idea Evaluation or Testing phases
                                   140

  Internal Idea Headline Evaluation
  Qu...
Quantitative “Idea Headline with consumer
                  promise” test with Consumers
                                 ...
Idea Screener Example
                                                               142

                     Ranking   I...
Concept Format – Qualitative Testing
                                      143

  Idea Headline


  A way in or consumer...
GUIDELINES FOR WRITING CONCEPTS
                                                  144

  Check that the concept is single...
The Value of Prototyping
                                             145

                     “NOTHING TURNS A CONCEPT I...
Prototypes
                                  146


  Before there is a prototype - ideas exists in abstract form only.
 ...
Some Prototypes
                                          147

  Tide-to-go - A handy instant stain remover

            ...
Some Prototypes
                                          148

  Garnier : Depuffing Eye Serum

                     Prot...
A Retail Prototype / Model Building
                                      149




www.invitro.com.sg                      ...
Share Early
                                       150

  Create comfort around works in progress:
    Overcome natural ...
Chapter 10: Implementing Ideas
                            151




www.invitro.com.sg                   PRODUCT & MARKETIN...
Implementation
                                     152

  At its most basic level, implementation is a creative problem
...
Implementation                =        Change
                                            153

                        AS ...
Overcoming Resistance to Change
                                    154

  Rules of Thumb:
    Involve other people in t...
Implementation Guidelines
                                                    155

  1. Develop and evaluate GOAL STATEMEN...
Implementation Guidelines
                                                      156

  5. Analyse idea benefits
         ...
Implementation Techniques
                                           157

           It‟s important to provide some struct...
Time/ Task Analysis (aka Gantt charts)
                                  158




www.invitro.com.sg                       ...
Implementation Tasks
                                           159

                     IDEAS MUS T TRANSLATE WELL INTO ...
Chapter 11: Open Innovation and
                   Idea Management
                           160




www.invitro.com.sg  ...
What is Open Innovation?
                                                        161

                     TH E CE NTRAL I...
Levels of Open Innovation
                                                          162




 Taps into the co-creation or ...
Customer Involvement in Innovation
                                      163

  Open Innovation Sara Lee - open innovatio...
Levels of Open Innovation
                                                          164




  Taps into a community of inn...
Level 3 – Crowdsourcing ideas
                                   165

  TekScout - crowdsourcing R&D solutions
  IdeaCon...
166

  http://www.cnbc.com/id/15840232?video=1301998977&
     play=1




www.invitro.com.sg                     PRODUCT &...
Levels of Open Innovation
                                                          167

 When the idea seeking entity see...
Level 4 – General Public
                                   168

   Ireland - Your Country, Your Call




   Singapore
 ...
Singapore’s – Tourism Compass 2020
                                     169




www.invitro.com.sg                        ...
Singapore’s – Tourism Compass 2020
                                     170




www.invitro.com.sg                        ...
Idea Management
                           171




www.invitro.com.sg                     PRODUCT & MARKETING INNOVATION W...
How an Idea Management system works…
                              172




www.invitro.com.sg                        PRODU...
American Express:
                      Finding Opportunities in Recession
                                               ...
What are the Open Innovation possibilities for
                your Brand or Company?
                            174




...
Chapter 12: Starting an Innovation
                Programme from Today
                           175




www.invitro.com...
1. Get leadership support for innovation
                                  176

  Innovation is about change, as such dif...
Top-Ranked Barriers to Innovation
                                         177

   1.      Insufficient resources
   2.   ...
Companies that Lead by Example
                                                 178

  Get senior management to play an a...
Experimentation
                                      179

  Cultivate a climate of smart risk-taking:
    Draw a line b...
Other Experimentation Practices
                                           180

        Samsung: their motto is “Fail oft...
Excellent Sharing Practices
                                                181

        Google—Google Labs and beta test...
2. Educate and Inspire
                                                182

  Inspire others with what Innovation can ach...
Product & Marketing Innovation 101
Product & Marketing Innovation 101
Product & Marketing Innovation 101
Product & Marketing Innovation 101
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Product & Marketing Innovation 101

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This is a detailed set of notes for a 2 day Innovation Course. It's a good starting point for brand and marketing folks to improve their ideas.

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Transcript of "Product & Marketing Innovation 101"

  1. 1. 1 Product & Marketing Innovation Workshop Delivered on 24 & 25 May 2010, at the IBN Conference Kuala Lumpur www.invitro.com.sg
  2. 2. Our Learning Agenda 2 DAY ONE DAY TWO CHAPTER 1: What is Innovation? CHAPTER 8: Idea Generation CHAPTER 2: 10 Lessons of Marketing Innovation Idea Generation Excursion CHAPTER 3: The 5 Step Innovation Process CHAPTER 9: Developing & Evaluating Ideas CHAPTER 4: Brand As Innovation Anchor CHAPTER 10: Implementing Ideas CHAPTER 5: Foundation Work CHAPTER 11: Open Innovation & Idea Management CHAPTER 6: Consumer Knowledge CHAPTER 12: Starting an Innovation Programme from Today CHAPTER 7: Framing Innovation Challenges www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  3. 3. Chapter 1: What is Innovation? 3 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP,
  4. 4. What is Innovation? 4 “INNOVATION …IS APPLYING KN OWLEDGE TO A REAL PROBLEM AND TAKING AN IDEA TO MARKET. THERE MAY NOT BE ANY CUSTOMER IN MIND DURING A PROCESS OF DISCOVERY AND INVENTION, BUT A CUSTOMER IS CRITICAL TO TH E PROCESS OF I NNOVATION .” HENRY CHESBROUGH, TH E FATHER OF OPE N I NNOVATION PRODUCT & MARKETING INNOVATION WORKSHOP,
  5. 5. What is Innovation? 5  Innovation is not a new concept  Businesses have attempted to differentiate in the past on innovative technologies, services or marketing  Firms have fewer Competitive options today.  Can no longer compete on price, and frequently cannot differentiate on product quality as second and third world manufacturers achieve parity on these attributes  Increased outsourcing and “right sizing” of firms  A firm cannot shrink its way to greatness.  In order to generate more profits and revenue, a firm needs to grow.  Growth occurs when a firms offers its customers new products or services or finds new users for older products and services.  One of the key sources of organic growth left to many firms is through innovation. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  6. 6. The most innovative companies have outperformed the S&P 500 as well as the S&P Global 100 6 The index is derived from a combination of two rankings from the top 50 most innovative companies. The first is a qualitative ranking based on the company's position in the annual BusinessWeek/BCG survey. The second is a quantitative ranking based on three factors used to estimate a company's innovation—three- year earnings growth; three-year sales growth, and R&D as a percentage of sales. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  7. 7. Past Success cannot be sustained by old Methods 7  As Gary Hamel wrote in “Innovation Now!” for Fast Company: “Competing today comes down to a leadership gut check, where the first order of business is to admit that the boom-time 1990s were a once-a-century aberration. During the past decade, earings and share prices were propelled deliriously upward by five manic forces: a huge run up in IT investment…baby-boomer money fed into the stock market…round after round of cost cutting…a worldwide merger boom and a record number of share buybacks.”  While those forces may have buoyed the performance of your company in recent years, you must now confront a daunting fact: Things that can‟t go on forever don‟t go on forever. Those forces are spent.  Going forward, your only weapon is systemic, radical innovation.  In fact innovation is one of the few avenues left for revenue growth in mature industries. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  8. 8. Types of Innovation at Enterprise Level 8 PRODUCT & MARKETING INNOVATION WORKSHOP,
  9. 9. Types of Innovation 9 Changing the way business is done in terms of capturing value e.g. Compaq BUSINESS vs. Dell, hub and spoke airlines vs. Southwest, and Hertz/Avis vs. Enterprise. MODEL/ CATEGORY Creation or alteration of business structures, practices, and models, and ORGANISATIONAL may therefore include process, marketing and business model innovation. INNOVATION . Highly engaging or unique brand promise and touch-points which BRAND give the brand a highly competitive market position. INNOVATION The introduction of a new good or service that is new or PRODUCT OR substantially improved. This might include improvements in functional characteristics, technical abilities, ease of use, or any SERVICE other dimension. INNOVATION The development of new marketing methods with improvement in MARKETING product design or packaging, product promotion or pricing. INNOVATION The implementation of a new or significantly improved production or PROCESS/ SUPPLY delivery method. The sourcing of input products from suppliers and the CHAIN delivery of output products to customers INNOVATION www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  10. 10. Category Innovation / Business Model 10  This is required when companies find themselves in stiff price competition and in categories where consumers have difficulty distinguishing the relative strengths and weaknesses of brands www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  11. 11. Brand Innovation 11 This is required when the brand is seeking a distinctive Brand Equity to fuel Brand Architecture or Product and Marketing Programme Innovation. This may not result in a significant game-changer in the market, however has the power to drive positive consumer response. Brands who have successfully achieved this include: www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  12. 12. Product & Service Innovation 12  Not just a one-off but an ongoing cycle of searching for inspiration, ideation, evaluating ideas and then executing the best. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  13. 13. Types of Innovation Marketers can influence 13  It is useful to see Innovations as being broadly of 2 types:  Product/ Service Innovation  Ones that require resources to make a change to the offering (New Product Innovation)  Commercial/ Marketing Innovation  Ones that create an impression of newness however do not require much in the way of resources to create the “new” initiative www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  14. 14. Types of Innovation Marketers can influence 14 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  15. 15. Types of Innovation Marketers can influence 15 Line Extensions These are the least risky of new product introductions, they tap into the success of existing products and refresh a line up with new flavours, fragrances and so forth. They are particularly important in categories where consumer like news such as in snacks, beauty care, fashion and consumer electronics. The challenge with line extensions is that they often cannibalise existing revenue. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  16. 16. Types of Innovation Marketers can influence 16 Ideal Commercial Innovation Where limited or no changes are made to an existing service or product. For products, this often requires a packaging change to signal the newness as Tide did with their “Coldwater” offering. Within services the marketers may simply create a new bundled offering to create something fresh for the market as UOB Bank did with their Lady‟s Card credit card. And Target‟s Schools Programme www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  17. 17. 17 1% of your purchases on your Target REDCARD can be donated to a School of your choice. In your neighbourhood. www.invitro.com.sg
  18. 18. Types of Innovation Marketers can influence 18 True Product Innovation When a brand needs to add something or change the formula of a product a true product innovation is born. This is only worthwhile when the perceived newness and benefit to the consumer is apparent. Lay‟s Light with a claim of half the usual calories would require significant R&D investment. Tide On-the-Go offers a radically new way to remove stains on the go. Bank of America‟s Keep the Change programme required significant system changes and has an important impact on Savings behaviour. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  19. 19. 19 www.invitro.com.sg
  20. 20. Types of Innovation Marketers can influence 20 Innovation Nirvana There are plenty of opportunities to Category Innovation transform the consumer experience This innovation is so significant that it effectively through elements such as design changes the rules of the game in the category. without significantly changing the Some of the most notable category innovations base product. include: Help I Need Help has created a Hotel Formule 1 which transformed the budget hotel range of consumer remedies using category well designed packaging to simplify The ATM which transformed our relationship with the everyday drug purchase. banks (no single bank brand owns this innovation) Category Innovation requires significant resources, however has a potential to have a significant market impact. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  21. 21. 21 ING Direct, the discount stock broker best known for its bright orange logo and branches that look like sandwich shops. ING is promoting one of its products called the Easy Orange mortgage. The idea is that you can make payments every two weeks instead of once a month and pay off you mortgage faster. www.invitro.com.sg
  22. 22. 22 Kiva.org allows anyone to make a loan to an entrepreneur in the developing world. The businesses, like the loans, are small, but the impact is tremendous. All the business are verified by field agents from micro-financing institutes, and currently 100% of loans have been paid back. www.invitro.com.sg
  23. 23. Types of Innovation Marketers can influence: Which One? 23 More time and resources Bigger ambitions www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  24. 24. Where does Innovation come from? 24 W H AT I S T H E “ S O U RC E” O F I N N O VAT I O N ? www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP,
  25. 25. Possible Sources of Innovation 25 Imperfect experiences www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  26. 26. 26 Bedside Telephone in Hotel Room In-flight Safety www.invitro.com.sg
  27. 27. Ideas at the Heart of Innovation 27 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP,
  28. 28. Ideas at the Heart of Innovation 28  Behind every product or service launched should be an idea which can be clearly and simply articulated.  While the component parts of the offering may be many, at the heart of the product should be an idea, which wraps up the component parts to create an experience for the consumer.  The idea should be able to be articulated in a simple idea headline. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  29. 29. The simple idea headline 29  The Idea Headline should create sufficient understanding to create interest and even desire to know more about HOW the product works or delivers any claims made.  A Good Idea / Idea Headline should evoke a whole set of experiences in the mind of the consumer e.g Tide with Green Tea Deodorises as it detoxes your laundry clean www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  30. 30. The simple idea headline 30  Ideally the product idea or concept as it is called in an innovation context should be:  Unique or differentiated  Simple  Easy to communicate  Include an experiential component www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  31. 31. Exercise - Evaluate this Idea 31  Panaflex Patch – Pain relief patch which quickly relieves back and joint pain with its Activ Glycol Sal Formula. Unique or differentiated : Simple: Easy to communicate : Include an experiential component : Product Point of Sale www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  32. 32. Chapter 2: 10 Lessons in Marketing Innovation 32 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP,
  33. 33. Lesson 1 Innovation work requires an “Invitro” environment 33 INNOVATION IS MORE A CREATIVE RATHER THAN S TRATEGIC PROCESS. THE N ATURE OF THE WORK DEMANDS THAT IT BE SEPARATED FROM ROUTINE OR HIGHLY PRESSURED WORK, WHICH TENDS TO BE THE BULK OF OUR WORK LIVES. IT IS RECOMMENDED THAT BUSINESS TEAMS CREATE INNOVATION DAYS WHICH CREATE AN ENVIRONMENT CONDUCIVE TO NURTURING IDEAS. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP,
  34. 34. True breakthrough solutions are realised by imagining rather than rationalising 34 Left Brain Right Brain LOGIC MAGIC Understanding Imagining how the world as it is things can be PROBLEMS SOLUTIONS www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  35. 35. Innovation work requires an “Invitro” environment 35  Brand and Product idea generation is more a creative process akin to design thinking than a classic strategy process.  This creative process has difficulty living side-by-side highly pressured or routine work which forms the bulk of business life.  Invitro has designed an ideation process which creates a new kind of environment, even if just for a few days where ideas can germinate and flourish. New ideas are conceived “INVITRO” www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  36. 36. Lesson 2 Make Innovation Routine, not Accidental 36 MUCH I NNOVATION JUS T HA P PENS, SOMEONE HA S A N ACCI DENTAL SPARK OF BRILLIANCE AND THE SEED TO AN INNOVATION IS BORN. THE PROBLEM IS, NO T ENOUGH QUALIT Y INNOVATION HAPPENS THIS W AY. M A N Y G R E AT I N N OVAT O R S S U C H A S G O O G L E , P & G A N D P H I L I P S HAVE DEVELOPED PROCESSES TO MAKE INNOVATION ROUTINE RATHER THAN AN ACCIDENTAL OCCURRENCE. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP,
  37. 37. Make Innovation Routine, not Accidental 37  Much innovation just happens, someone has an accidental spark of brilliance and the seed to an innovation is born. • Insufficient quality innovation happens this way • How are these “sparks of brilliance” captured and evaluated?  Many great innovators such as Google, P&G and Philips have processes to make innovation routine rather than accidental.  Use a web-based Idea Management system  Consider holding a bi-annual 2 day ideation session www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  38. 38. Lesson 3 Product Innovation is no Surrogate for Brand Clarity 38 WHEN BRANDS LACK A S TRONG BRAND IDEA , INNOVATION CAN SOMETIMES BE USED TO DRI VE CONSUMER I NTERES T. THI S I S PAR TICULARLY T RUE I N T HE FA S HI O N A N D BE AUT Y C AT E GOR IE S W HE R E NEWS IS IMPORTANT TO THE CONSUMER. WHEN A BRAND LACKS A CLEAR BRAND ANCHOR, INNOVATION CAN BE HAPHAZARD AND P O T E N T I A L LY C O N F U S E T H E C O N S U M E R . F I R S T S E E K B R A N D C L A R I T Y, THIS WILL THEN HELP INFORM WHAT KIND OF INNOVATION CAN BUILD RATHER THAN UNDERMINE THE BRAND. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP,
  39. 39. What is the Innovation building? 39  A weak equity can create poor innovation ideas that are difficult to translate as communications. Original concept Product Innovations inspired by “Intuitive Kitchen Logic” With With with Honey Locust Dish Effect Lemon 360 degree cleaning Eraser Bar Tide Sunshine www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  40. 40. Lesson 4 Innovation is a Team Sport 40 INNOVATION IDEATION THRIVES ON THE MULTI -DISCIPLIN ARY TALENT S REQUI RED TO BRI NG A NEW P RODUCT TO MA RKET. THE MIX OF R&D, MANUFACTURING, SALES, CONSUMER MARKETING AND FINANCE BRAINS CREATE A S TIMULATING AND DIVERGENT IDEATION ENVIRONMENT WHERE THE SKILLS, PRIORITIES AND DISTINCT FRAMES OF REFERENCE CREATE THE KIND OF TENSION REQUIRED FOR INNOVATION. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP,
  41. 41. Innovation requires a Diverse Set of Perspectives 41 • Convergent thinking tends to produce ideas in the same zone. • Divergent thinking involves the generation of many ideas that are distinct from one another. • To conceive and nurture an idea from spark to realised product takes a multitude of perspectives and skills. • This is achieved when a multi-functional team is assembled. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  42. 42. Lesson 5 Engineer the Ideation Process 42 IDEATION IS ABOUT LEADING PEOPLE TOWARDS CREATIVE SOLUTION FINDING. IN ORDER TO DO THIS PEOPLE NEED TO BE ARMED WITH PROBLEM UNDERS TANDING, HAVE A RICH PROFILE OF THE TARGET CONSUMER, PLENT Y OF INSPIRATION AND A FLEXIBLE S E T O F T E C HN I QUE S T O C R E ATI VELY I M AG INE S O LUT IONS . HAVING A PROVEN FRAMEWORK AND DOING PLENT Y OF PREPARATION IS ESSENTIAL TO A PRODUCTIVE IDEATION SESSION. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP,
  43. 43. Structured Ideation Process 43 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  44. 44. Design Your Own Innovation Event 44 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  45. 45. Lesson 6 Make Inspiration a Discipline 45 UNDERSTANDING PROBLEMS AND OPPORTUNITIES IS HALF THE TASK, T H E O T H E R H A L F, I S O P E N I N G U P I N N O V A T I O N P O S S I B I L I T I E S , A N D T H I S CAN ONLY HAPPEN WITH S TIMULUS TO SPARK IDEAS. S TIMULUS OR INSPIRATION CAN TAKE THE FORM OF NEW CONSUMER KNOWLEDGE, IMMERSING YOURSELF IN WHAT‟S NEW ON YOUR CONSUMER‟S WORLD, OR WATCHING WHAT‟S HAPPENING IN ADJACENT AND UNRELATED CATEGORIES. KEEP AN INSPIRATION LOG OR FILE WHICH YOU CAN MINE FROM TIME TO TIME. “to invent you need a good imagination and a pile of junk” – Thomas Edison www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP,
  46. 46. Digital and Analog inspiration streams 46 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  47. 47. Lesson 7 Get Centred on Your Customer 47 WHERE DO YOU GO LOOKING FOR NEW IDEAS? WHILE SCOURING THE WORLD FOR NEW TRENDS AND TECHNOLOGY CAN HELP INSPIRE NEW IDEAS IT‟S IMPOR TANT THAT IDEAS SOLVE A C O N S U M E R P R O B L E M O R O P P O R T U N I T Y. A GOOD STARTING POINT IS TO IMMERSE THE TEAM IN CONSUMER UNDERSTANDING. THIS COULD TAKE THE FORM OF A CONSUMER FIELD TRIP OR SIMPLY TO REVIEW CURRENT CONSUMER INTELLIGENCE. EXERCISES WHICH HELP BRING THE TARGET CONSUMER INTO SHARPER VIEW ARE ALWAYS A GOOD ANCHORING POINT TO IDEATION. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP,
  48. 48. Consumer Inspiration 48 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  49. 49. Lesson 8 Question all Your Assumptions 49 MANY PRODUCT CATEGORIES HAVE UNWRITTEN CODES OF P R ACTI CE , O R G E N E RALLY AC C E P TED WAYS O F P R E S E NTING T HE I R P RODUCT S TO THE MA RKET. I T S ONLY WHEN WE A RE P REPARED TO INTERROG ATE EVERY ASPECT OF THE BRAND EXPERIENCE CAN WE UNCOVER THAT SOME OF OUR CHOICES THAT MAY NOT BE DELIVERING THE VALUE INTENDED. IT‟S POSSIBLE THAT AN INNOVATION BREAK THROUGH CAN HAPPEN WHEN CATEGORY ASSUMPTIONS ARE OVER-TURNED TO CREATE CONSUMER VALUE. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP,
  50. 50. Provocations to Innovation 50 1. Which factors that our industry takes for Which factors deliver real value to customers? granted should we STOP doing? 2. Which factors should we employ LESS of, Have we over engineered our offering? to below what is usual? 3. Which factors should be INVENTED? Seek new sources of value 4. Which factors should we commit MORE to What compromises does our industry force beyond industry norm? customers to make? www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  51. 51. Lesson 9 Engage both Left and Right Brain 51 SOME GOOD BRAND AND PRODUCT IDEAS ARE AS A RESULT OF R E G ULAR A N A LY TIC AL A P PROAC HE S. C O N S I DER A S O LUT ION S UC H A S P OR TION PACKS I N THE SN ACK MA RKET, WHI CH A RE A REMEDY TO SNACKS GOING STALE. WHILE LEFT BRAIN SOLUTIONS HAVE VALUE, IT‟S THE MORE RIGHT BRAIN APPROACHES WHICH ARE LIKELY TO RESULT IN BREAK THROUGH THINKING. RIGHT BRAIN ST YLED CREATIVIT Y MUST BE ENCOURAGED FOR TEAMS TO GIVE BIRTH TO UNCOMMON SOLUTIONS TO PROBLEMS AND OPPORTUNITIES. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP,
  52. 52. “What if …” Free-wheeling 52 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  53. 53. Borrowing Brilliantly 53 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  54. 54. Lesson 10 Innovation is Serious Play 54 THE PLAY ASPECT OF INNOVATION HAPPENS ON 2 LEVELS. F I R S T LY, C R E A T I V I T Y R E Q U I R E S T H A T W E A R E R E L A X E D T O B E O U R M O S T C R E A T I V E . S E C O N D LY, I T ‟ S I M P O R T A N T T O M A K E I D E A S A S TANGIBLE AS POSSIBLE. THIS CAN BE ACHIEVED THROUGH COLLAGE MAKING, DRAWING OR EVEN BUILDING A 3-D PRODUCT PROTOT YPE TO HELP OTHERS UNDERS TAND WHAT WE MEAN. NOTHING SELLS A CONCEPTUAL THOUGHT MORE THAN A VISUAL REPRESENTATION OF THE IDEA . www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP,
  55. 55. Innovation is a creative process, it should be inspirational, interactive and fun 55 Inspiration Wall Ideation Tools “play” Venue conducive to interaction Visualised Concepts www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  56. 56. Chapter 3: The 5 Step Innovation Process 56 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP,
  57. 57. 57 www.invitro.com.sg 57
  58. 58. 58 The most critical step in the process which anchors all innovation activity in understanding of the weaknesses of the business and opportunities that innovation can capitalize on. Step1: Foundation Work www.invitro.com.sg
  59. 59. 59 While the collection of data on key consumer markets should be a year round activity, innovation demands that we organize that information into insight for teams to use as inspiration for new ideas Step 2: Consumer Knowledge www.invitro.com.sg
  60. 60. 60 Intense ideation sessions over the year. These can be highly informal or formal. The key is to arm idea generators with direction (foundation work) and insight (consumer knowledge) in order to generate “on-brief” ideas. Step 3: Idea Generation www.invitro.com.sg
  61. 61. 61 A key skill for marketers to develop is to be able to sift the great ideas from the average. Step 4: Idea Screening www.invitro.com.sg
  62. 62. 62 This involves taking the strongest ideas as evaluated by consumers and starting to prototype these ideas for in field test marketing and then putting all the marketing elements together to ensure the idea is maximized. Step 5: Implementation
  63. 63. Managing the 5 Step Innovation Process 63  Assemble a Multi-functional Team  Key Roles within an Innovation Team  Team Leader  Sponsor (financial ownership)  Consumer Knowledge and Testing  Workshop/ Ideation Facilitator  Project management  Production representative www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  64. 64. Chapter 4: Brand As Innovation Anchor 64 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP,
  65. 65. Brand As Innovation Anchor 65  A strong brand bridges the gap between who you are and what others believe.  Functioning as both as map and compass.  This is particularly important when deciding where innovation is required and how innovation might more the brand forward.  The key questions a brand‟s equity needs to help answer are:  Which aspect of the brand could use help in the form of innovation (i.e where are we weak?)  What are the specific brand building blocks we can use as inspiration for innovation work?  What types of innovation don‟t fit our brand? www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  66. 66. Brand As Innovation Anchor 66  It goes without saying that before embarking on formal innovation the brand requires a clear Brand Equity.  There are many models for stating brand equity  The type of model is not important, what is important is that it clearly communication the brand to internal stakeholders. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  67. 67. Brand Equity: Overall 67  Captures the single-minded idea of what you want the brand to stand for in the target‟s heart and mind versus competition.  Should be inspirational, memorable and crisp articulation of what drives consumer preference. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  68. 68. Brand Equity: Building Blocks 68  Captures the few, key aspects of the brand that build the Overall Equity and therefore drive consumer preference.  Includes benefit equities (what the consumer gets for using the brand),  Reason-to-believe equities (the evidence supporting the benefit equities)  Brand character (the brand‟s personality). www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  69. 69. Brand Equity: Design Theme 69  A metaphor that defines the aesthetic direction of the brand.  A tool for ensuring the brand presents a cohesive, holistic face to the consumer.  Provides multi-sensory (visual, textual, scent, etc.) direction for all touchpoints including advertising, packaging, product development, in-store and all other places where the brand is presented to the consumer. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  70. 70. Brand Equity: Equities Consumers Experience 70  Includes the few key elements consumers see/experience, which we want to use consistently over a long period of time.  Those chosen should communicate, distinguish and reinforce the brand equity to the consumer (e.g. – Golden Arches for McDonalds).  Can consist of key visual and auditory elements from the product experience and advertising as well as brand- specific graphic elements, colours, scents and sounds. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  71. 71. Brand Equity: An Good Example 71  A Brand Equity should reflect the strategic choices you have made to take your brand into the future.  It should reflect a strong, differentiated position for your brand. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  72. 72. Chapter 5: Foundation Work 72 “SUCCESSFUL [S TRATEGY] REQUIRES FINDING THE RIGHT SOLUTION TO THE RIGHT PROBLEM. WE FAIL MORE OFTEN BECAUSE WE SOLVE THE WRONG PROBLEM THAN BECAUSE WE GET THE WRONG SOLUTION TO THE RIGHT PROBLEM.” RUSSELL ACKOFF www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP,
  73. 73. 73 “The future is life seen through the lens of possibility” - Karthi Vian, IFTF 10 year forecast leader www.invitro.com.sg
  74. 74. Foundation Work: The 4 Lenses 74 The Future Lens The changing Macro environment and implications for the future The Competitive Lens The Competitive landscape The Brand Lens Key Strengths ot exploit and Weaknesses to overcome The Human Lens What is the Consumer relationship with the brand or category? www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  75. 75. Framework for Understanding the Problem 75 ISSUES & OPPORTUNITIES www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  76. 76. The Future Lens 76  What trends and opportunities can drive our future?  Consider the F&N Foods aLive Brand  They noted that Asian consumers where opening up to western styled healthy foods such as breakfast cereals, diary products and health bars.  Most of the offerings in this space were provided by Western food companies who did not understand Asian tastes.  They also observed that people were becoming more health conscious while seeking greater convenience.  aLive therefore focused their product innovation in the “healthy convenience” area with emphasis on convenient on-the-go packaging and portion packs. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  77. 77. The Brand Lens 77  It‟s important to understand what the brand is capable of achieving based on the capacity and resources available.  Also does the brand have a right to succeed in a particular innovation space?  For example, does Frito-Lay (snacks) have the right to enter the lemonade category?  What is it about their brand reputation or expertise that makes this a natural choice for them?  Their understanding of the youth market was not sufficient legitimacy for them to enter such unfamiliar territory. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  78. 78. The Competitive Lens 78  A good starting point is to map the competitive landscape from a category perspective and a set of 2 axes, and then to repeat the exercise from a broader consumer perspective. Example: Asian Airlines www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  79. 79. Foundation Work: Identify Opportunities and Challenges 79 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  80. 80. Discovering a Category Problem 80 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP,
  81. 81. 81 www.invitro.com.sg Laundry Category PRODUCT & MARKETING INNOVATION WORKSHOP
  82. 82. What Conventional Wisdom defines the our Category Today? 82 Summarise the key aspects that currently come to mind about your Category / industry. Define the current “rules of the game” – How would you describe the industry? – How would you describe the product? – What is the stereotypical brand image? – What is the stereotypical communication approach? – The nature of the relationship with consumers? www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  83. 83. 83 www.invitro.com.sg Laundry Category PRODUCT & MARKETING INNOVATION WORKSHOP
  84. 84. What conventional wisdom defines the Bottled Water Category today? 84 Define the current “rules of the game”: – How would you describe the industry? – How would you describe the product? – What is the stereotypical brand image? – What is the stereotypical communication approach? – The nature of the relationship with consumers? Summarise the Category today: ________________________________ www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP ________________________________
  85. 85. Innovation in the Bottled Water Category 85 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  86. 86. Chapter 6: Foundation Work: Consumer Knowledge 86 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP,
  87. 87. Consumer Knowledge to Insight 87  The Consumer Knowledge component also provides a snapshot of the brand vis a vis the consumer but the most important role of Consumer Knowledge is to serve as Inspiration to idea generation.  Inspiration takes the form of new INSIGHT.  Insight is not just information about the target or the category. As French novelist Marcel Proust said, "The real act of discovery consists not in finding new lands but in seeing with new eyes."  True insight is a deep new understanding that leads to Action. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  88. 88. Consumer Knowledge Sources 88 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  89. 89. 89 Existing Research A good starting point is to collect all research reports (no matter how old) and attempt to summarise key findings. For example a year‟s worth of brand tracking data may reveal: - performs well on emotional values ,however, is weak on functional performance and therefore is not competitive on value. We need to direct innovation towards: performance and perceived value. www.invitro.com.sg
  90. 90. 90 Category Digging Explore Adjacent Categories: Look within your category for new and interesting ideas and look at adjacent categories. Don‟t limit your search to your geography. An ice-cream innovation team might explore: • The soft drinks category •Confectionary • Mints and chewing gum. www.invitro.com.sg
  91. 91. 91 Category Digging Go Shopping: R&D Possibilities: If you have an R&D function, ask them to share any interesting technologies they have come across. Get R&D to list the technologies in the following format: Technology Name: Consumer Benefit: Picture of it: Possible Applications: How it Works: www.invitro.com.sg
  92. 92. 92 Category Digging Talk to Experts: An often overlooked and very potent source of insight and fresh perspective is to talk to people who have a particular expertise or knowledge of the category or consumers you are targeting. A confectionary brand wanting to find ideas for a healthier treat might talk to: A dietician or nutritionist A fashion editor A Personal Trainer A Doctor www.invitro.com.sg
  93. 93. 93 Category Digging New Target Learning Extreme Users: We usually talk to the same set of core users we want to understand consumer needs, attitudes and behaviours. Sometimes when you are looking for a fresh stream of marketing ideas it pays to talk to the “wrong people”. A laundry detergent may choose not to talk to housewives but rather talk to people who get very dirty or who make a living from cleaning: • A chef • A hotel laundry manager • A person who runs a Laundromat and so on. www.invitro.com.sg
  94. 94. 94 Category Digging New Target Learning Broad Shifts and Trends: Scanning for broad trends, these can be found by looking at free sources such as Trendwatching.com, Springwise.com and PSFK.com. The key is to package findings into actionable findings. An interested way to may trends real is to create “Headlines from the Future”. Emergent Passions: What are people into, how are they spending their time and money? www.invitro.com.sg
  95. 95. 95 Category Digging New Target Learning Observe the target: Simply observe the target, in their everyday life, while interacting with your category or brand. This will speak volumes over what a consumer might say in a focus group. A bank might simply watch people as they queue up to transact at an ATM, or how people navigate the processes in a bank branch. How do they look, comfortable or irritated, confused or familiar with procedures? By simply watching you can see opportunities to improve your product or service. www.invitro.com.sg
  96. 96. Consumer Experience Mapping 96 THE OBJECTIVE OF EXPERIENCE MAPPING IS TO WALK IN THE SHOES OF THE CONSUMER AS THEY START TO INTERACT W I T H O U R C A T E G O R Y, F R O M N E E D I D E N T I F I C AT I O N , THROUGH TO PRE-PURCHASE RESEARCH, THE ACTUAL BUYING OF THE PRODUCT OR SERVICE TO CONSUMING AND POST-CONSUMPTION ACTIVITIES. BY MAPPING THE CONSUMER EXPERIENCE THROUGH THE F U L L P U R C H A S E J O U R N E Y, P A I N A N D P L E A S U R E P O I N T S I N THE JOURNEY CAN BE IDENTIFIED; THE PAIN POINTS ARE OPPORTUNITIES FOR THE BRAND TO INNOVATE. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP,
  97. 97. Consumer Experience Mapping 97 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  98. 98. Consumer Experience Mapping: Paint Purchase 98 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  99. 99. 2. Explore 99 Store visit 1 2. Explore 3. Consider 1. Need trigger 4. Purchase The Painting Process “Getting it delivered is a hassle.” 7. Support 5. preparation 6. Painting www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  100. 100. 2 Key Pain Points There is so much choice Which colour is right for me? 100 Help consumers make more confident colour choices 2. Color Exploration 3. Narrow brand and choose colour 1. Need trigger The Painting Process 4. Purchase “Getting it product and get delivered is a advice hassle.” Support I am not experienced in painting Paint can I learn quickly and easily How preparation Painting Play a role in the “How To” of painting www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  101. 101. 101 The current retail space does not serve the consumers Colour choice or How to paint needs www.invitro.com.sg
  102. 102. 2 Key Innovation Points 102 1. Help consumers make more confident colour choices 2. Practical help in making painting easier Behr In-Store Interative Kiosk www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  103. 103. Consumer Knowledge Exercise 103 EXERCISE : MAP THE BUYING EXPERIENCE FOR YOUR CATEGORY www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP,
  104. 104. Consumer Experience Mapping For Your Category 104 1. Walk through the consumer experience 2. Identify Pain and Pleasure Points 3. Identify Innovation Opportunities www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  105. 105. Chapter 7: Framing Innovation Challenges 105 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP,
  106. 106. Targeting the Innovation to a Challenge 106  Innovation challenges at any organizational level should be relatively open-ended and target an explicit objective such as increasing product sales.  A common way to state challenges is to start with the phrase, “How might we…?”  This provides a prompt for open-ended idea generation.  For instance, consider an objective of generating ideas for new floor-care products. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  107. 107. Floor Cleaning Products Innovation Challenge: How might we? 107  “De-construct” the challenge into its parts, simply by asking basic questions:  “What is involved in cleaning floors?”  “What do people dislike about it?”  “How often should floors be cleaned?”  “In what ways are current floor-care products ineffective?” www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  108. 108. Floor Cleaning Products Innovation Challenge: How might we? 108  The answers to these and similar questions then can be used as triggers for specific challenge statements. How might we:  Make it easier to dispense floor cleaning products?  Reduce the amount of effort involved in scrubbing a floor?”  Make floor cleaning more convenient?”  Reduce the frequency with which floors need to be cleaned?”  Increase the sanitizing effect of floor cleaning?” www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  109. 109. Setting Idea Success Parameters 109  What are you looking for?  Ideas to implement in the short, medium or long-term?  How much are you prepared to change key marketing elements such as product formulation, packaging, retail strategy, communications and so forth?  Define what parameters an idea needs to meet in order to progress for development.  Should overcome the Innovation Challenge of “_________________”  Should build the brands equity in “high performance”  Must be implementable without modifications to the retail strategy  Should deliver results within the current fiscal www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  110. 110. What are the Innovation Challenges for a Brand seeking to enter the packaged water category? 110 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  111. 111. Chapter 8: Idea Generation 111 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP,
  112. 112. Where do Ideas come from? 112 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP,
  113. 113. Where do Ideas come from? 113  Draw a mind map of where your ideas come from? www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  114. 114. Where do Ideas come from? 114  Draw a mind map of where your ideas come from?  In our Dreams  In a meditative / alpha state  In a state of day-dreaming  Unintentional full consciousness  Intentional full consciousness www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  115. 115. Isolating Idea Generation from regular work 115  The nature of work is that it is usually highly pressured or routine, neither of these 2 states are conducive for creative thought.  It‟s because of this that formal idea generation needs to be isolated from day to day activities even if just for a day or two. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  116. 116. The Ideation Event 116  An Ideation Event can take many forms but mostly includes:  A group of people who have a vested interest in quality ideas being generated. This can be as few as 10 people and as many as 1000 people.  Ideally a mix of skills, backgrounds and expertise:  Brand management, research, sales, production, customer service, retail management, suppliers, packaging and even advertising and design partners.  The Ideation needs to be led by a skilled facilitator  Participants are led through a structured process:  foundation work, given inspiration and then armed with some idea generation techniques, and ultimately screening out the weak ideas and developing the stronger ideas. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  117. 117. The Ideation Event Guidelines 117 1. Treat each other with respect. 2. be supportive of each other's ideas. 3. Focus on the possibilities, not the obstacles. 4. be curious, be surprised, have your thinking provoked. 5. Take responsibility for your own safety. 6. Encourage others with support, not pressure. 7. Acknowledge the contributions of others and appreciate their greatness. 8. Try to suspend your own judgments, certainties, and assumptions. 9. Be receptive to feedback and willing to change your thoughts, opinions, and behaviours. 10. Have fun! Don't take yourself too seriously. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  118. 118. The 4 Basic Rules of Brainstorming 118  Judge Later: During the idea generation process, just keep pumping out the ideas and go for quantity not quality.  Avoid Discussion: Avoid discussions or elaborations on how great the idea could be.  Capture Ideas: Every idea must be captured fully either by a person doing the recording or by each person writing their ideas on sticky notes.  Be Specific: Every idea should be specific and actionable and should include a noun and a verb, such as "distribute a weekly newsletter."  Build: Build on other people‟s ideas -- make them bigger, smaller, a different color.  Participate: Ideas come from anywhere and everywhere so it‟s important for everyone to contribute.  Set Time Limit: Set a time limit for each round of idea generation... ideally, not more than 30 - 45 minutes.  Number Your Ideas: IDEO believes that numbering ideas stimulates the flow of ideas and thinks that 100 ideas per hour indicates a good brainstorming session. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  119. 119. A Two day Ideation Event 119  Although smaller ideation requirements can be achieved with a half day or full day session, an ideation session wishing to inspire participants with new insights and challenges to overcome with require a full 2 day session. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  120. 120. 2 Day Agenda 120 Day 1 Day 2 9.00 Introduction, - Manage Expectations 9.00 Warm Up and recap of Day 1 progress 9.30 Brand Team shares brand performance 9.30 Round 3 of Ideation (Free-wheeling) 10.00 Share Brand Equity for anchor all 10.30 Share Round 3 Ideas 10.30 Share consumer Inspiration 11.00 Sort all ideas from 3 rounds 11.00 Share category learning, NPD inspiration 11.30 Vote on Ideas for further elaboration 11.30 Share best practice ideas 12.00 Select ideas for development BREAK FOR LUNCH BREAK FOR LUNCH 1.00 Develop Innovation Challenges 2.00 Share elaborate concepts with full visuals 1.30 Share Ideation tools /first round of Ideation 3.00 Vote on Ideas based on evaluation criteria 2.30 Review Round 1 Ideas (Force connections) 3.30 Establish work plan for next steps 3.00 Second round of Ideation (Copy cat Ideas) 4.00 Get feedback on the session, ideas 4.00 Share ideas 4.30 Close the session 4.30 Review the ideas of the day www.invitro.com.sg
  121. 121. Ideation Tools 121 1. FORCING CONNECTIONS: USING CONSUMER INSPIRATION TO CREATE IDEAS 2. BO R ROWING BR I LLIANTLY: LOOKING TO O THER BRANDS AND CATEGORIES FOR INSPIRATION 3. ENGINEERED PROVOCATIONS: FREE-WHEELING TECHNIQUES TO BREAK AWAY FROM ASSUMPTIONS 4. RANDOM IDEA GENERATION TECHNIQUES: GENERIC CREATIVIT Y TOOLS www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP,
  122. 122. Using Inspiration to force connections 122 INSPIRATION OR BRAND or TREND CATEGORY IDEA HEADLINE www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  123. 123. How Might we use Inspiration: Aloe Vera Drinks 123 Aloe drinks and LAUNDRY foods for soft and healthy skin Ariel with Aloe fabric conditioner www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  124. 124. Using Inspiration to force connections 124 Insight: Brand Truth: Nappies are mostly Pampers cares for the same but your babies 0vernight Nappies development are a torture test Pampers Undisturbed Sleep www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  125. 125. Borrowing Brilliantly 125 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  126. 126. Engineered Provocations - “What if …” 126 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  127. 127. Random Idea Generation 127 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  128. 128. Idea Generation Excursion 128 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP,
  129. 129. What are the Innovation Challenges for a Brand seeking to enter the packaged water category? 129 How can we make hydration: -More enjoyable - More purposeful - More convenient www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  130. 130. We will use each of the 4 Types of Ideation Tools to generate 100 Ideas! 130 1. FORCING CONNECTIONS: USING CONSUMER INSPIRATION TO CREATE IDEAS 2. BO R ROWING BR I LLIANTLY: LOOKING TO O THER BRANDS AND CATEGORIES FOR INSPIRATION 3. ENGINEERED PROVOCATIONS: FREE-WHEELING TECHNIQUES TO BREAK AWAY FROM ASSUMPTIONS 4. RANDOM IDEA GENERATION TECHNIQUES: GENERIC CREATIVIT Y TOOLS www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP,
  131. 131. 1. Forcing Connections 131 INSPIRATION OR WATER TREND IDEA HEADLINE www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  132. 132. 2. Borrowing Brilliantly 132 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  133. 133. 3. Engineered Provocations - “What if …” 133 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  134. 134. 4. Random Idea Generation 134 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  135. 135. Consolidate Ideas for the Water Category? 135 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  136. 136. Chapter 9: Developing & Evaluating Ideas 136 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP,
  137. 137. 3 Key Idea Evaluation or Testing phases 137  Internal Idea Headline Evaluation  Quantitative “Idea Headline with consumer promise” test with Consumers  Qualitative consumer exploration of strongest ideas in step 2 – Here consumers are exposed to the full concept board www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  138. 138. Internal Idea Headline Evaluation 138  At a first stage idea evaluation it is useful to use a PLUSES, POTENTIALS, AND CONCERNS (PPC) evaluation method.  PPC avoids premature idea-killing. 1. PLUSES 2. POTENTIALS 3. CONCERNS REVIEW RESTATED IDEA HEADLINE Make a list of at Make a list of at Make a list of Take a moment to Write a new and least three pluses, least three whatever concerns review the improved likes or specific potentials. What you have about information that statement of your strengths of your opportunities the idea. Make a you write down solution. “What I idea. might result if your list of whatever for Pluses, see us doing NOW What is good idea were concerns you have Potentials, and is…” about your idea implemented? about the idea Concerns now? List potentials starting with, “It might…” www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  139. 139. How Ideas Develop 139 Headline Insight Promise Substantiation Stage 1 Stage 2 Stage 3 Post-it Flip Chart 4-part Concept Idea Headline Concept Plus Visualisation www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  140. 140. 3 Key Idea Evaluation or Testing phases 140  Internal Idea Headline Evaluation  Quantitative “Idea Headline with consumer promise” test with Consumers  Qualitative consumer exploration of strongest ideas in step 2 – Here consumers are exposed to the full concept board www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  141. 141. Quantitative “Idea Headline with consumer promise” test with Consumers 141  An IDEA SCREENER is a preliminary analysis on the appeal of top ideas.  Idea Headlines with short promises and benefit descriptors are placed into a quantitative test alongside existing product offerings in the market (also written as Idea Headlines).  Each idea is evaluated against measures such as:  Purchase Intent, liking, believability, uniqueness, and usage frequency. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  142. 142. Idea Screener Example 142 Ranking Idea Theme WPI Uniquenes *FU Believability s #1 Immediate Cleaning Simpler 69 3.18 36 3.99 Actives Process #3 With Safeguard (5) Health 68 3.35 31 4.16 #4 With Chinese Honey Naturals 68 3.1 36 3.98 locust #6 Super Soaking Cleaning 67 3.19 31 3.91 #7 Blue Power Whiteness 65 3.1 28 3.93 #8 Naturals Health 64 3.17 37 3.96 #9 White Guard Whiteness 63 3.23 34 3.92 #10 Forever Suds Cleaning 62 2.82 31 3.78 Average 61 3.15 31 3.9 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  143. 143. Concept Format – Qualitative Testing 143  Idea Headline  A way in or consumer insight  A promise  Substantiation  A Visualisation www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  144. 144. GUIDELINES FOR WRITING CONCEPTS 144  Check that the concept is single-minded.  Make sure the concept is consistent with and feeds into the brand equity.  Check that the concept you have written is understandable, meaningful, believable, sustainable and ownable.  Does your concept answer the question: ‟what‟s in it for the consumer and why should she believe it?‟  Be ruthlessly logical and go through each of the concept stages one by one and check that they flow logically, tie together well and expressed in the most clear, concise form.  When you have finished crafting a concept, think whether you can imagine it working as an advertising strategy that will create strong advertising. (This can be a way of eliminating some concepts that seem appealing but will not ultimately lead to strong creative work.)  Make sure the concept is positive in tone. Occasionally you may wish to express the benefit of a negative; this however needs to be written to ensure that the overall tone is positive.  Ask yourself „Is this concept different from what I can buy today?‟ www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  145. 145. The Value of Prototyping 145 “NOTHING TURNS A CONCEPT INTO REALIT Y FASTER THAN A PROTOT YPE." – PAUL SLOANE www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP,
  146. 146. Prototypes 146  Before there is a prototype - ideas exists in abstract form only.  An idea described in words leaves scope for misunderstanding.  Once a prototype exists then people can see and touch and feel the idea.  Prototyping is problem solving. Its experimentation. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  147. 147. Some Prototypes 147  Tide-to-go - A handy instant stain remover Prototype Product Final Product www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  148. 148. Some Prototypes 148  Garnier : Depuffing Eye Serum Prototyped Product Final Product www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  149. 149. A Retail Prototype / Model Building 149 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  150. 150. Share Early 150  Create comfort around works in progress:  Overcome natural tendencies to “get it perfect” and to want to have a “dramatic reveal.”  Rapidly prototype, continuously get feedback, frequently iterate.  Get to the customer early. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  151. 151. Chapter 10: Implementing Ideas 151 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP,
  152. 152. Implementation 152  At its most basic level, implementation is a creative problem solving process.  A gap exists between WHAT IS and WHAT SHOULD BE and ACTIONS are required to close the gap. All actions taken to apply the solutions to the problem then constitutes the implementation process. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  153. 153. Implementation = Change 153 AS SUCH MANY OF THE ISSUES ASSOCIATED WITH CORPORATE CHA NGE EMERGE DURI NG I MP LEMENTATION. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP,
  154. 154. Overcoming Resistance to Change 154  Rules of Thumb:  Involve other people in the entire problem solving process  Be specific about the amount and type of change likely from implementing the idea  Stress personal benefits to be obtained from implementation  Create shared perceptions of the need for change  Identify key opinion leaders and get their support www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  155. 155. Implementation Guidelines 155 1. Develop and evaluate GOAL STATEMENTS  These should be specific, clear, realistic and include a time schedule 2. Assess your resources  What is needed to sell an idea  What is needed to apply your idea to the problem 3. Assess the needs of the people to be influenced  Who is the person behind the title and role?  What motivates them?  Are they risk takers or safety seekers?  Take time to find out – Observe them. 4. Assess your implementation Strengths and Weaknesses www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  156. 156. Implementation Guidelines 156 5. Analyse idea benefits  List features of the idea, then list benefits of each feature 6. Prepare for the Presentation 7. Conduct the Presentation 8. Develop the Implementation Strategy 9. Implement the Idea www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  157. 157. Implementation Techniques 157 It‟s important to provide some structure to the implementation activities to ensure timely execution of multiple activities. 2 techniques 1) Five W‟s (Who, What, Where, When and then Why?) 2) Time/ Task Analysis (aka Gantt charts)  Relating time requirements to implementation tasks www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  158. 158. Time/ Task Analysis (aka Gantt charts) 158 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  159. 159. Implementation Tasks 159 IDEAS MUS T TRANSLATE WELL INTO MARKETING ACTION www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP,
  160. 160. Chapter 11: Open Innovation and Idea Management 160 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP,
  161. 161. What is Open Innovation? 161 TH E CE NTRAL I DE A B E H I ND OPE N I NNOVATION I S TH AT I N A WO R L D O F W I D ELY D I S TRIBU TED K N OW L EDGE, C O M PANIES C A N N O T A F F O R D T O R E LY E N T I R E LY O N T H E I R O W N RESEARCH, BUT SHOULD BUY OR LICENSE PROCESSES OR INVENTIONS FROM OTHER COMPANIES. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP,
  162. 162. Levels of Open Innovation 162 Taps into the co-creation or ideas of customers of the company. Many of the consumer goods companies have already put initiatives in play to benefit from this idea source. Opening up the idea generation possibilities to employees, however for large multinationals this is a significant untapped resource . Where R&D drives all aspects of idea generation and execution. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  163. 163. Customer Involvement in Innovation 163  Open Innovation Sara Lee - open innovation portal of Sara Lee  P&G Open Innovation Challenge - external idea sourcing in Britain and Vocalpoint - P&G‟s network for women  Ideas4Unilever - corporate venturing  Kraft - innovate with Kraft  My Starbucks Idea - shaping the future of Starbucks.  BMW Customer Innovation Lab  LeadUsers.nl & Live Simplicity - Philips‟ crowdsourcing platforms  Dell IdeaStorm - external idea sourcing www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  164. 164. Levels of Open Innovation 164 Taps into a community of innovators, people who innovate professionally or simply amateurs who love solving problems with ideas. Taps into the co-creation or ideas of customers of the company. Many of the consumer goods companies have already put initiatives in play to benefit from this idea source. Opening up the idea generation possibilities to employees, however for large multinationals this is a significant untapped resource . Where R&D drives all aspects of idea generation and execution. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  165. 165. Level 3 – Crowdsourcing ideas 165  TekScout - crowdsourcing R&D solutions  IdeaConnection - idea marketplace and problem solving space.  Innocentive - open innovation problem solving www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  166. 166. 166  http://www.cnbc.com/id/15840232?video=1301998977& play=1 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  167. 167. Levels of Open Innovation 167 When the idea seeking entity seeks ideas from the broad population Taps into a community of innovators, people who innovate professionally or simply amateurs who love solving problems with ideas. Taps into the co-creation or ideas of customers of the company. Many of the consumer goods companies have already put initiatives in play to benefit from this idea source. Opening up the idea generation possibilities to employees, however for large multinationals this is a significant untapped resource . Where R&D drives all aspects of idea generation and execution. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  168. 168. Level 4 – General Public 168  Ireland - Your Country, Your Call  Singapore Tourism Board  Tourism Compass 2020 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  169. 169. Singapore’s – Tourism Compass 2020 169 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  170. 170. Singapore’s – Tourism Compass 2020 170 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  171. 171. Idea Management 171 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP,
  172. 172. How an Idea Management system works… 172 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  173. 173. American Express: Finding Opportunities in Recession 173 CHALLENGE  Determine business opportunities, particularly in current financial crisis  Find ways to increase customer loyalty & satisfaction  Foster innovative thinking across departments & locations SOLUTION  Deployed Idea Management Solution to employees globally RESULTS  High adoption rate: 2,000 users from many countries  Ideas found for, among others, ways to American Express capitalize on recession, support of female Leading global payments, network & travel company $39.1 billon revenue in 2008 entrepreneurs, growth of Prepaid 66,000 employees; operations in 130+ countries business in U.S., Latin America & Asia  Best ideas are currently implemented www.invitro.com.sg Success Story Snapshot PRODUCT & MARKETING INNOVATION WORKSHOP
  174. 174. What are the Open Innovation possibilities for your Brand or Company? 174 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP,
  175. 175. Chapter 12: Starting an Innovation Programme from Today 175 www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP,
  176. 176. 1. Get leadership support for innovation 176  Innovation is about change, as such difficult to implement without group support.  Most innovation is driven by the CEO as this chart demonstrates www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  177. 177. Top-Ranked Barriers to Innovation 177 1. Insufficient resources 2. No formal strategy for innovation 3. Lack of clear goals/priorities 4. Lack of leadership/management support 5. Short-term mindset 6. Structure not geared toward innovation www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  178. 178. Companies that Lead by Example 178  Get senior management to play an active part in innovation:  Time commitment  General Electric CEO, Jeffrey Immelt makes a monthly time commitment to “Commercial Council” meetings  Dedicated people  P&G created a VP of Design, Innovation and Strategy who reports to the CEO  Direct access  Novartis: CEO Dr. Daniel Vasella leads innovation efforts with a passion.  Budgets  Samsung‟s commitment to innovation translated into spending. They doubled their design staff and increased design budgets by 20–30% www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  179. 179. Experimentation 179  Cultivate a climate of smart risk-taking:  Draw a line between smart and imprudent risks.  Convert “risk” into “experimentation.”  Communicate strongly and proudly. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  180. 180. Other Experimentation Practices 180  Samsung: their motto is “Fail often in order to succeed faster”  Google: teams are encouraged to have “good failures”  Amazon—“two-pizza teams”  Bank of America: 30% of all innovative projects must fail www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  181. 181. Excellent Sharing Practices 181  Google—Google Labs and beta tests  “Google Labs is a playground where our more adventurous users can play around with prototypes of some of our wild and crazy ideas and offer feedback directly to the engineers who developed them”  Bank of America—trial market  General Motors—focus groups  Pixar—“five-minute sketch” www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP
  182. 182. 2. Educate and Inspire 182  Inspire others with what Innovation can achieve  Spreading the innovation message across the whole organisation, not just marketing or R&D.  Start an inspiration wall in your office, this wall can be a physical space where new ideas from other categories are shared. www.invitro.com.sg PRODUCT & MARKETING INNOVATION WORKSHOP

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