Innovation Strategy

Slide 1: Managing Innovation Strategy 1 visit: www.studyMarketing.org

Slide 2: You can download this presentation at: www.studyMarketing.org Visit www.studyMarketing.org for more presentations on Marketing, Strategy, Innovation, and Branding 2 visit: www.studyMarketing.org

Slide 3: Innovation Types Product Innovation Process Innovation Strategy Innovation 3 visit: www.studyMarketing.org

Slide 4: Product Innovation The process of bringing to life a new product/service to solve the customer's problem benefits 4 visit: www.studyMarketing.org

Slide 5: Process Innovation Process innovations increase bottom-line profitability, reduce costs, raise productivity, and increase employee job satisfaction. The customer also benefits from this type of innovation by virtue of a stronger, more consistent product or service value delivery. 5 visit: www.studyMarketing.org

Slide 6: Strategy Innovation Strategy innovation is about challenging existing industry methods of creating customer value in order to meet newly emerging customer needs, add additional value, and create new markets and new customer groups for the sponsoring company. 6 visit: www.studyMarketing.org

Slide 7: Innovation Levels Incremental Innovation Substantial Innovation Breakthrough Innovation 7 visit: www.studyMarketing.org

Slide 8: McDonald’s Innovation INNOVATION Product Process Strategy Breakthrough Big Mac Franchisee Global Regulations of Expansion Quality Substantial Value Meals Hamburger Opening for University Breakfast Incremental Green New French Boston Milkshakes Fry Cookers Markets for St. Pat’s Acquisition Day 8 visit: www.studyMarketing.org

Slide 9: Innovation Model Model 1: The Suggestion System Model 2: Continuous Improvement Teams Model 3: New Venture Teams Model 4: The Incubator Lab Model 5: Innovation Teams 9 visit: www.studyMarketing.org

Slide 10: Model 1 : The Suggestion System Suggestion programs provide employees an organized system through which to submit ideas and to have those ideas considered by a panel of dispassionate reviewers, who accept or reject them depending on pre- established criteria from management. 10 visit: www.studyMarketing.org

Slide 11: Model 2: Continuous Improvement Teams • Unlike suggestion programs that focus on motivating individual contributors to come forward with their ideas, Continuous Improvement Model systems rely on team collaboration. 11 visit: www.studyMarketing.org

Slide 12: Model 2: Continuous Improvement Teams • Sometimes called Kaizen Teams, (kaizen is the Japanese word for continuous improvement), they mostly focus on incremental, rather than substantial or breakthrough process on product improvements. 12 visit: www.studyMarketing.org

Slide 13: Model 2: Continuous Improvement Teams • Nevertheless, when these seemingly small, continuous tweaks produced by firm's rank and file workers are added up, they can be substantial in their bottom- line impact. 13 visit: www.studyMarketing.org

Slide 14: Model 4: New Venture Teams • The goal of the New Venture Team Model is decidedly not cost-saving ideas, not incremental improvements, and not process innovations. • Rather, the goal is more apt to be surfacing (and funding) unconventional product, service, or strategy ideas that have the potential to be breakthroughs. 14 visit: www.studyMarketing.org

Slide 15: Model 5: The Incubator Lab • The Incubator Model of Idea Management gained popularity along side the dot-corn bubble of the late 1990s and lost favor just as fast. 15 visit: www.studyMarketing.org

Slide 16: Model 5: The Incubator Lab • Beneath the hype, the basic idea of incubators was not too different from the skunkworks approach pioneered by Lockheed during World War II to rapidly develop and launch new aircraft by forming small, dedicated teams separate from the bureaucracy. 16 visit: www.studyMarketing.org

Slide 17: The gist of this approach is to set up a company-wide network of people with demonstrated skills in innovation and Model 7: give them very clear marching orders: Innovation Go out and find some new ideas that Teams have promise. 17 visit: www.studyMarketing.org

Slide 18: Innovation Strategy • Scan and monitor the sources of innovation opportunity. • Create a personal future-scan system. • Integrate future scanning with your company's idea management system. 18 visit: www.studyMarketing.org

Slide 19: Innovation Strategy • Assault industry assumptions. • Broaden your company's vision. • Strategize your place in the first mover, fast follower race. 19 visit: www.studyMarketing.org

Slide 20: Producing Innovative Products • Study previous breakthrough products. • Focus relentlessly on value creation throughout the development process. • Design and implement a new product development process. 20 visit: www.studyMarketing.org

Slide 21: Producing Innovative Products • Use a learning strategy for more radical ideas. • Use cross-functional teams. • Use rapid prototyping. 21 visit: www.studyMarketing.org

Slide 22: Source of Reference: Robert B. Tucker, Driving Growth Through Innovation, Innovation Berrett-Koehler Publishers. 22 visit: www.studyMarketing.org