Innovation Techniques


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Summary of Innovation Techniques

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Innovation Techniques

  1. 1. Innovations<br />A Brief introduction to Techniques in<br />
  2. 2. Revolutionary Innovation<br />Discontinuous<br />An innovation that creates a new market by allowing customers to solve a problem in a radically new way.<br />Examples - Automobiles <br />
  3. 3. Evolutionary Innovation<br />An innovation that improves a product in an existing market in ways that customers are expecting. <br />Driven by<br />Improved quality, Creation of new markets, Extension of the product range, Reduced labour costs, Improved production processes, Reduced materials, Reduced environmental damage, Replacement of products/services, Reduced energy consumption, Conformance to regulations<br />Examples <br />Carburetor vs. Fuel injection systems <br />
  4. 4. Disruptive Innovation<br />An innovation that disrupts an existing market. <br />An innovation that creates a new (and unexpected) market by applying a different set of values.<br />Examples <br />Mobile vs. Land line<br />E mail vs. Snail mail<br />Digital Photography vs. Chemical Photography<br />
  5. 5. Bass Diffusion Model<br />Process of how new products get adopted as an interaction between users and potential users<br />Empirical model for predicting new product growth for consumer products <br />Most popularly cited model <br />
  6. 6. Everett Rogers’ Diffusion of Innovation<br />Diffusion of Innovations is a theory that seeks to explain how, why, and at what rate new ideas and technology spread through cultures.<br />Innovators<br />“Pull” the Change. Brave.<br />Early Adopters<br />Opinion Leaders, Try out new ideas, but careful. Respectable <br /><ul><li>Early Majority
  7. 7. Careful but accept change, Thoughtful
  8. 8. Late Majority
  9. 9. Will follow Majority. Skeptics
  10. 10. Laggards
  11. 11. Care for old ways, Critical on new ideas, will accept new idea only once it is mainstream, Traditional</li></li></ul><li>Crossing the chasm<br />Geoff Moore’s extension to Diffusion of Innovation<br />There is a chasm between the early adopters ofthe product - (the technology enthusiasts and visionaries) and the early majority (the pragmatists). <br />Visionaries and Pragmatists have very different expectations, and he attempts to explore those differences and suggest techniques to successfully cross the "chasm," including <br />Choosing a target market<br />Understanding the whole product concept, <br />Product Positioning<br />Building a marketing strategy, <br />Choosing the most appropriate distribution channel <br />Pricing.<br />
  12. 12. Technology Acceptance Model (TAM)<br />Describes how users come to accept and use a technology. <br />The model suggests that when users are presented with a new technology, a number of factors influence their decision about how and when they will use it, notably:<br />Perceived usefulness (PU) - This was defined by Fred Davis as "the degree to which a person believes that using a particular system would enhance his or her job performance".<br />Perceived ease-of-use (PEOU) - Davis defined this as "the degree to which a person believes that using a particular system would be free from effort"<br />
  13. 13. New product development<br />
  14. 14. New Product Development<br />Complete process of bringing a new  product  or service to market.<br />Two parallel paths : <br />Idea generation, product design and detail engineering; <br />Market research and marketing analysis. <br />Stages<br />Idea Generation<br />Idea Screening<br />Concept Development and Testing<br />Business Analysis<br />Beta Testing and Market Testing<br />Technical Implementation<br />Commercialization (often considered post-NPD)<br />New Product Pricing<br />
  15. 15. Subbu 99451 03337<br />