AGSM Making Innovation Happen

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My presentation to the AGSM MBA marketing class, October 2010

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AGSM Making Innovation Happen

  1. 1. MAKING INNOVATIONS HAPPEN AGSM MBA CLASS Melbourne, 20th October 2010 commercial in confidence 1 Wednesday, 20 October 2010
  2. 2. So you’ve got an idea... 2 Wednesday, 20 October 2010
  3. 3. FOUR INNOVATIONS ... FOR INNOVATION Anthony Ulwick - Steven Blank - Geoffrey Moore - Eric von Hippel - Outcome-Driven Customer Crossing The Lead users Innovation (2000s) Development (2000s) Chasm (1990s) (1990-2000s) 3 Wednesday, 20 October 2010
  4. 4. WORKING THE ADOPTION CURVE Underlying question: what jobs do people want to get done? Innovators give us clues to what will happen in the market which follows Choosing to work with lead users allows us to mine them for insights and ideas Later on, working with beach heads allows us to create case studies that convince the Customers mainstream our product is appropriate for them Chasm Lead users Beach heads Time Innovators Early Adopters Early Majority Late Majority Laggards Wednesday, 20 October 2010
  5. 5. OUTCOME-DRIVEN INNOVATION ANTHONY ULWICK commercial in confidence 5 Wednesday, 20 October 2010
  6. 6. OUTCOME-DRIVEN INNOVATION Don’t ask customers what they want... ...most can’t tell you Customers often use their existing experiences as a frame of reference; they frequently ask for the impossible and they don’t know what is possible Instead, consider that customers have jobs or tasks which they want help to perform “If I had asked my customers what they wanted, they would have said a faster horse.” – Henry Ford 6 Wednesday, 20 October 2010
  7. 7. CUSTOMER DEVELOPMENT STEVEN BLANK commercial in confidence 7 Wednesday, 20 October 2010
  8. 8. CUSTOMER DEVELOPMENT PROCESS The customer development process happens in parallel to the product development one The “four steps to epiphany” are 1. Customer Discovery - understanding customer problems and needs 2. Customer Validation - developing a sales model that can be replicated 3. Customer Creation - creating and driving end user demand 4. Company building - transitioning the organisation into a well-oiled machine 8 Steven Blank The Four Steps to the Epiphany Wednesday, 20 October 2010
  9. 9. TWO PARALLEL STREAMS Product Development Customer Development – The focus of this stream is the economic customer – Product development should remain focused on the – Aim to understand feature set and on usability by the core user groups ★ Existing issues and challenges ★ Barriers and incentives to product uptake – Feature list to remain driven by the vision / ★ Affordability and likely usage patterns experience of founders except where customer – Customer development will work from current feedback indicates revisions to be considered product concept provided by product development – Where identified, constructive product-related feedback will be provided to product development 9 Wednesday, 20 October 2010
  10. 10. CROSSING THE CHASM GEOFFREY MOORE commercial in confidence 10 Wednesday, 20 October 2010
  11. 11. TARGET MARKET CHARACTERISTICS INNOVATORS / EARLY ADOPTERS EARLY MAJORITY •Seek out new products •Cautious about new ideas – “they might be •High level of comfort with risk fads” •Expects discontinuous behaviour change •Want to see others like them using between old & new products first •Circa 16% of the market •Seeks evolution not revolution •Do not use early adopters as a reference group 11 Wednesday, 20 October 2010
  12. 12. LEAD USERS ERIC VON HIPPEL commercial in confidence 12 Wednesday, 20 October 2010
  13. 13. LEAD USERS Like chasm-crossing, this involves working very closely with customers... ... but amongst innovators rather than the mainstream •Tap into issues early •Understand how innovators are already trying to solve the problems you aim to address •Learn from people who know they have a problem how those coming later will act 13 Churchill, Von Hippel, Sonnack, Lead User Project Handbook Wednesday, 20 October 2010
  14. 14. LEAD USER RESEARCH 1. HYPOTHESISE KEY TRENDS WHAT IS CHANGING IN OUR MARKET THAT WE CAN TAP INTO? IDENTIFY LEAD USERS IN OUR SECTOR AND ANALOGOUS ONES 14 Based on Churchill, Von Hippel, Sonnack, Lead User Project Handbook Wednesday, 20 October 2010
  15. 15. LEAD USER RESEARCH 1. HYPOTHESISE 2. RESEARCH KEY TRENDS ISSUES & TRENDS WHAT IS CHANGING IN INTERVIEW LEAD USERS - OUR MARKET THAT WE PAINS, PROBLEMS, CAN TAP INTO? PARTIAL SOLUTIONS IDENTIFY LEAD USERS IN OUR SECTOR AND ANALOGOUS ONES 14 Based on Churchill, Von Hippel, Sonnack, Lead User Project Handbook Wednesday, 20 October 2010
  16. 16. LEAD USER RESEARCH 1. HYPOTHESISE 2. RESEARCH 3. CO-CREATION KEY TRENDS ISSUES & TRENDS SESSIONS WHAT IS CHANGING IN INTERVIEW LEAD USERS - CO-CREATION SESSIONS - OUR MARKET THAT WE PAINS, PROBLEMS, SEE HOW LEAD USERS CAN TAP INTO? PARTIAL SOLUTIONS PROPOSE FIXING THINGS IDENTIFY LEAD USERS IN OUR SECTOR AND ANALOGOUS ONES 14 Based on Churchill, Von Hippel, Sonnack, Lead User Project Handbook Wednesday, 20 October 2010
  17. 17. LEAD USER RESEARCH 1. HYPOTHESISE 2. RESEARCH 3. CO-CREATION 4. CONCEPT KEY TRENDS ISSUES & TRENDS SESSIONS TESTING WHAT IS CHANGING IN INTERVIEW LEAD USERS - CO-CREATION SESSIONS - TEST PROPOSITION OUR MARKET THAT WE PAINS, PROBLEMS, SEE HOW LEAD USERS BEYOND LEAD USER CAN TAP INTO? PARTIAL SOLUTIONS PROPOSE FIXING THINGS GROUPS IDENTIFY LEAD USERS IN OUR SECTOR AND ANALOGOUS ONES 14 Based on Churchill, Von Hippel, Sonnack, Lead User Project Handbook Wednesday, 20 October 2010
  18. 18. So you’ve got an idea... 15 Wednesday, 20 October 2010
  19. 19. WWW.EFM.COM.AU Chris Grannell chris.grannell@efm.com.au 03 9561 3460 This document © Ellis Foster McVeigh 2010 16 Wednesday, 20 October 2010

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