Successful Innovation Tec de Monterrey September 23, 2008 John Seifert
Why companies fail <ul><li>Innovation 1000: Booze Allen Hamilton Report 2007 </li></ul>Consumer Research Consulting  J.A. ...
The Study <ul><li>1000 Companies </li></ul><ul><li>10 Industry Sectors </li></ul><ul><li>Global </li></ul><ul><li>3 Innova...
Classic Innovation Models <ul><li>Need Seekers </li></ul><ul><li>Market Readers </li></ul><ul><li>Technology Drivers </li>...
Need Seeker Model <ul><li>These companies actively engage current and potential customers to shape new products, services,...
Market Readers <ul><li>These companies watch their markets carefully, but they maintain a more cautious approach, focusing...
Technology Drivers <ul><li>These companies follow the direction suggested by their technological capabilities, leveraging ...
Findings <ul><li>No correlation between R&D investment and sales. </li></ul><ul><li>No correlation by innovation model </l...
Successful companies <ul><li>Have clear objectives that are honestly shared with consumers and stake-holders </li></ul><ul...
Successful Companies <ul><li>Strategic Alignment </li></ul><ul><li>(Transparency) </li></ul><ul><li>Customer Focus </li></...
To succeed  <ul><li>We need frequent consumer feedback </li></ul><ul><li>We need access  </li></ul><ul><li>We need a sorti...
Target Consumer Identification <ul><li>Demographic </li></ul><ul><li>Attitudinal </li></ul><ul><li>Habit and Practice </li...
Elements of Target Identification  <ul><li>Incidence  (How many are there?) </li></ul><ul><li>Access  (Where can we find t...
Example Projects <ul><li>Custom made jewelry </li></ul><ul><li>Vegetarian restaurant </li></ul><ul><li>I phone application...
How NOT to Identify Your Consumer <ul><li>“ Those interested in buying what I’m selling” </li></ul><ul><li>“ Those interes...
Summary <ul><li>Key to successful innovation is frequent target consumer contact </li></ul><ul><li>Frequent contact requir...
<ul><li>Learning from Lead Users </li></ul>Consumer Research Consulting ©
- MIT, professor Eric von Hippel (author of  Democratizing Innovation) <ul><li>Empirical research is finding that users ra...
Lead Users <ul><li>Influencers </li></ul><ul><li>Activists </li></ul><ul><li>Trendsetters </li></ul><ul><li>Heavy Users </...
Lead Users (food) are….. <ul><li>Articulate </li></ul><ul><li>Involved </li></ul><ul><li>Happy </li></ul><ul><li>Social </...
Food Involvement Identifiers <ul><li>The food I serve says a lot about me and who I am </li></ul><ul><li>My friends consid...
Lead User Sessions <ul><li>In-Depth and Personal </li></ul><ul><li>No mirrors </li></ul><ul><li>Positive environment </li>...
Consumer Research Consulting ©
Consumer Research Consulting ©
Higher Order Variables <ul><li>You can design a better product by understanding a person’s  </li></ul><ul><li>Values  </li...
Working BELOW the Line <ul><li>Attribute & Benefit Segmentation (How it’s traditionally done) </li></ul>Enablement and Pro...
Working Above the Line <ul><li>Values and Superior Experiences </li></ul><ul><li>Life stage </li></ul><ul><li>Involvement ...
Stay at  high thought level …. <ul><li>How can my work… </li></ul><ul><li>touch their lives? </li></ul><ul><li>speak to th...
Higher Order Variables <ul><li>A user group’s product requirements can come from the group’s values and the broader contex...
Paint the Picture <ul><li>Words = container </li></ul><ul><li>Picture = content </li></ul><ul><li>Collage </li></ul><ul><l...
Consumer Research Consulting ©
Consumer Research Consulting ©
Consumer Research Consulting ©
What is Premium Food?  <ul><li>Unique </li></ul><ul><li>Complex </li></ul><ul><li>Has Heritage </li></ul><ul><li>Special <...
Model the Ideals <ul><li>What did it feel, smell, taste, sound, look like? </li></ul><ul><li>What was it like? </li></ul><...
Above the Line Connections for Your Work <ul><ul><ul><ul><ul><li>Make her Healthy </li></ul></ul></ul></ul></ul><ul><ul><u...
<ul><li>The Consumer Value Proposition  </li></ul><ul><li>of Your Project </li></ul>Consumer Research Consulting ©
CVP: “What Who Why” <ul><li>Cognition   What is it? </li></ul><ul><li>Recognition   Is it for me? </li></ul><ul><li>Valuat...
The “What Who Why” Model <ul><li>What   your concept or prototype </li></ul><ul><li>Who   your target </li></ul><ul><li>Wh...
The Consumer Value Proposition <ul><li>CVP = Need * Importance </li></ul>Consumer Research Consulting  J.A. Seifert
CVP: The Early Conceptual Stage Consumer Research Consulting  J.A. Seifert What Who Why
In the best interest…. <ul><li>Products Enable Experiences </li></ul><ul><li>Breakthrough products enable life enhancing e...
In the best interest…. <ul><li>Health and Aging  </li></ul><ul><li>Community </li></ul><ul><li>Social Justice </li></ul><u...
Consumer Research Consulting © www.NewIdeasOnline.com
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Tec 2010 Target 9 23 09

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Successful Innovation
presentation to MNN students Tec de Monterrey September 23, 2009

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Tec 2010 Target 9 23 09

  1. 1. Successful Innovation Tec de Monterrey September 23, 2008 John Seifert
  2. 2. Why companies fail <ul><li>Innovation 1000: Booze Allen Hamilton Report 2007 </li></ul>Consumer Research Consulting J.A. Seifert
  3. 3. The Study <ul><li>1000 Companies </li></ul><ul><li>10 Industry Sectors </li></ul><ul><li>Global </li></ul><ul><li>3 Innovation Models </li></ul><ul><li>$447 billion in R&D </li></ul>Consumer Research Consulting J.A. Seifert
  4. 4. Classic Innovation Models <ul><li>Need Seekers </li></ul><ul><li>Market Readers </li></ul><ul><li>Technology Drivers </li></ul>Consumer Research Consulting J.A. Seifert
  5. 5. Need Seeker Model <ul><li>These companies actively engage current and potential customers to shape new products, services, and processes; they strive to be first to market. </li></ul>Consumer Research Consulting J.A. Seifert
  6. 6. Market Readers <ul><li>These companies watch their markets carefully, but they maintain a more cautious approach, focusing largely on creating value through incremental change. </li></ul>Consumer Research Consulting J.A. Seifert
  7. 7. Technology Drivers <ul><li>These companies follow the direction suggested by their technological capabilities, leveraging their investment in research and development to drive breakthrough innovation and incremental change, often seeking to solve the unarticulated needs of their customers. </li></ul>Consumer Research Consulting J.A. Seifert
  8. 8. Findings <ul><li>No correlation between R&D investment and sales. </li></ul><ul><li>No correlation by innovation model </li></ul>Consumer Research Consulting J.A. Seifert
  9. 9. Successful companies <ul><li>Have clear objectives that are honestly shared with consumers and stake-holders </li></ul><ul><li>Have constant contact with their consumers </li></ul>Consumer Research Consulting J.A. Seifert
  10. 10. Successful Companies <ul><li>Strategic Alignment </li></ul><ul><li>(Transparency) </li></ul><ul><li>Customer Focus </li></ul><ul><li>(Discipline) </li></ul>Consumer Research Consulting J.A. Seifert
  11. 11. To succeed <ul><li>We need frequent consumer feedback </li></ul><ul><li>We need access </li></ul><ul><li>We need a sorting algorithm </li></ul>Consumer Research Consulting J.A. Seifert
  12. 12. Target Consumer Identification <ul><li>Demographic </li></ul><ul><li>Attitudinal </li></ul><ul><li>Habit and Practice </li></ul><ul><li>Degree of Involvement </li></ul>Consumer Research Consulting J.A. Seifert
  13. 13. Elements of Target Identification <ul><li>Incidence (How many are there?) </li></ul><ul><li>Access (Where can we find them?) </li></ul><ul><li>Ease of identification (How to sort them?) </li></ul><ul><ul><li>Demographics </li></ul></ul><ul><ul><li>Habits </li></ul></ul><ul><ul><li>Attitudes </li></ul></ul><ul><ul><li>Degree of Involvement </li></ul></ul>Consumer Research Consulting J.A. Seifert
  14. 14. Example Projects <ul><li>Custom made jewelry </li></ul><ul><li>Vegetarian restaurant </li></ul><ul><li>I phone application </li></ul><ul><li>Fresh produce </li></ul><ul><li>Boutique hotel </li></ul><ul><li>Laundry products for low income households </li></ul><ul><li>Evaluate these for target consumer access, incidence and identification </li></ul><ul><li>How many are there? Where can I find them? How will I sort them? </li></ul>Consumer Research Consulting ©
  15. 15. How NOT to Identify Your Consumer <ul><li>“ Those interested in buying what I’m selling” </li></ul><ul><li>“ Those interested in what I’m interested in” </li></ul><ul><li>“ Anybody with money” </li></ul>Consumer Research Consulting ©
  16. 16. Summary <ul><li>Key to successful innovation is frequent target consumer contact </li></ul><ul><li>Frequent contact requires access, incidence and identification </li></ul><ul><li>Lead Users are more useful than rep users </li></ul>Consumer Research Consulting ©
  17. 17. <ul><li>Learning from Lead Users </li></ul>Consumer Research Consulting ©
  18. 18. - MIT, professor Eric von Hippel (author of Democratizing Innovation) <ul><li>Empirical research is finding that users rather than manufacturers are the actual developers of many or most new products and services, and that they are a major locus of innovative activity in the economy . This finding opens up new questions and avenues for exploration in fields ranging from economics to management of technology to organizational behavior to marketing research. </li></ul>Consumer Research Consulting ©
  19. 19. Lead Users <ul><li>Influencers </li></ul><ul><li>Activists </li></ul><ul><li>Trendsetters </li></ul><ul><li>Heavy Users </li></ul><ul><li>Frequent Purchasers </li></ul>Consumer Research Consulting ©
  20. 20. Lead Users (food) are….. <ul><li>Articulate </li></ul><ul><li>Involved </li></ul><ul><li>Happy </li></ul><ul><li>Social </li></ul><ul><li>Fun </li></ul><ul><li>Eager </li></ul><ul><li>Smart </li></ul><ul><li>Influential </li></ul>Consumer Research Consulting ©
  21. 21. Food Involvement Identifiers <ul><li>The food I serve says a lot about me and who I am </li></ul><ul><li>My friends consider me knowledgeable </li></ul><ul><li>I shop in specialty food stores (like “Whole Foods”) </li></ul><ul><li>I seek food experiences </li></ul><ul><li>I am aware of food trends </li></ul><ul><li>I source, prepare and serve frequently </li></ul>Consumer Research Consulting ©
  22. 22. Lead User Sessions <ul><li>In-Depth and Personal </li></ul><ul><li>No mirrors </li></ul><ul><li>Positive environment </li></ul><ul><li>Not an interrogation </li></ul><ul><li>A friendly conversation </li></ul><ul><li>Rewarding </li></ul><ul><li>On-going </li></ul>Consumer Research Consulting ©
  23. 23. Consumer Research Consulting ©
  24. 24. Consumer Research Consulting ©
  25. 25. Higher Order Variables <ul><li>You can design a better product by understanding a person’s </li></ul><ul><li>Values </li></ul><ul><li>Ideals </li></ul><ul><li>Life’s Experiences </li></ul>Consumer Research Consulting ©
  26. 26. Working BELOW the Line <ul><li>Attribute & Benefit Segmentation (How it’s traditionally done) </li></ul>Enablement and Problem Resolution benefit functional solution attributes molecule/technology/idea Consumer Research Consulting ©
  27. 27. Working Above the Line <ul><li>Values and Superior Experiences </li></ul><ul><li>Life stage </li></ul><ul><li>Involvement </li></ul><ul><li>Ideal benefits </li></ul><ul><li>Form development </li></ul><ul><li>Specific problems and needs </li></ul><ul><li>Physical characteristics and conditions </li></ul>Fundamental Motives and Ideal States Enablement and Problem Resolution Consumer Research Consulting ©
  28. 28. Stay at high thought level …. <ul><li>How can my work… </li></ul><ul><li>touch their lives? </li></ul><ul><li>speak to them? </li></ul><ul><li>become part of them? </li></ul><ul><li>improve their lives? </li></ul><ul><li>change the world? </li></ul>Consumer Research Consulting ©
  29. 29. Higher Order Variables <ul><li>A user group’s product requirements can come from the group’s values and the broader context of their usage experience: understand what they value and how they live. </li></ul><ul><li>Understand a consumers “dreams” (their Ideals, their SOEs, their best-in-class solutions). </li></ul>Consumer Research Consulting ©
  30. 30. Paint the Picture <ul><li>Words = container </li></ul><ul><li>Picture = content </li></ul><ul><li>Collage </li></ul><ul><li>Draw </li></ul><ul><li>Photos/Disposable Cameras </li></ul><ul><li>Magazines </li></ul>Consumer Research Consulting ©
  31. 31. Consumer Research Consulting ©
  32. 32. Consumer Research Consulting ©
  33. 33. Consumer Research Consulting ©
  34. 34. What is Premium Food? <ul><li>Unique </li></ul><ul><li>Complex </li></ul><ul><li>Has Heritage </li></ul><ul><li>Special </li></ul><ul><li>Has Been Constructed, Produced with Care </li></ul>These are important design considerations for sourcing and naming ingredients Consumer Research Consulting ©
  35. 35. Model the Ideals <ul><li>What did it feel, smell, taste, sound, look like? </li></ul><ul><li>What was it like? </li></ul><ul><li>Give me an example? </li></ul><ul><li>How did it change you life? </li></ul><ul><li>And that’s good because? </li></ul><ul><li>How does that make things better? </li></ul><ul><li>Ladder up! </li></ul>Consumer Research Consulting ©
  36. 36. Above the Line Connections for Your Work <ul><ul><ul><ul><ul><li>Make her Healthy </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Be compatible with his life style </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Reinforce identity </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Enhance mood </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Enhance social interactions </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Entertain </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Make us smarter </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Make his life better </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Make me a better person </li></ul></ul></ul></ul></ul>Consumer Research Consulting ©
  37. 37. <ul><li>The Consumer Value Proposition </li></ul><ul><li>of Your Project </li></ul>Consumer Research Consulting ©
  38. 38. CVP: “What Who Why” <ul><li>Cognition What is it? </li></ul><ul><li>Recognition Is it for me? </li></ul><ul><li>Valuation Is it a good one? </li></ul>Consumer Research Consulting J.A. Seifert
  39. 39. The “What Who Why” Model <ul><li>What your concept or prototype </li></ul><ul><li>Who your target </li></ul><ul><li>Why Consumer Value Proposition </li></ul>Consumer Research Consulting J.A. Seifert
  40. 40. The Consumer Value Proposition <ul><li>CVP = Need * Importance </li></ul>Consumer Research Consulting J.A. Seifert
  41. 41. CVP: The Early Conceptual Stage Consumer Research Consulting J.A. Seifert What Who Why
  42. 42. In the best interest…. <ul><li>Products Enable Experiences </li></ul><ul><li>Breakthrough products enable life enhancing experiences </li></ul>Consumer Research Consulting ©
  43. 43. In the best interest…. <ul><li>Health and Aging </li></ul><ul><li>Community </li></ul><ul><li>Social Justice </li></ul><ul><li>Education </li></ul><ul><li>Environment </li></ul>Consumer Research Consulting ©
  44. 44. Consumer Research Consulting © www.NewIdeasOnline.com
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