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The Consumer in the Innovation
Process
Innovation, Markets and the Consumer
Mark Cavender
Objective
 Understand the role of consumers in the current innovation
processes:
• Co-creation approaches
• Lead users
• End-users
• Customer-centricity
Agenda
 Innovation and the Technology Adoption Life Cycle (TALC)
 Consumer Roles in Innovation
 Tips and Tricks: Optimizing Consumer Input Across the TALC
Agenda
 Innovation and the Technology Adoption Life Cycle (TALC)
 Consumer Roles in Innovation
 Tips and Tricks: Optimizing Consumer Input Across the TALC
Consumers Adopt Technology in Different
Ways
Innovators - Technology Enthusiasts
Early Adopters - The Visionaries
Early Majority - Pragmatists
Late Majority - Conservatives
Laggards - Skeptics
Technology Adoption
Life Cycle
Technology Adoption
Life Cycle
Indefinitely elastic
middle period
MarketGrowth
Time
Main Street
Thriving Market
Maturing Market
Declining Market
Fault
Line!
End of Life
Early
Market Bowling Alley
Tornado
Philips, Innovation and You
http://www.youtube.com/watch?v=xL0T5FU5c1U#t=70
Four Innovation Zones
Disruptive
Innovation
Application
Innovation
Product
Innovation
Platform
Innovation
Enhancement
Innovation
Integration
Innovation
Experiential
Innovation
Process
Innovation
Marketing
Innovation
Business Model
Innovation
Line Extension
Innovation
Value Engineering
Innovation
Harvest
& Exit
Renewal Innovation
Disruptive
Innovation
Application
Innovation
Product
Innovation
Platform
Innovation
Enhancement
Innovation
Integration
Innovation
Experiential
Innovation
Process
Innovation
Marketing
Innovation
Business Model
Innovation
Line Extension
Innovation
Value Engineering
Innovation
Harvest
& Exit
Renewal InnovationRenewal Innovation
Product
Leadership
Zone
Operational
Excellence
Zone
Customer
Intimacy
Zone
Category
Renewal
Zone
Return on Innovation
 How can we get a return on innovation?
Differentiation Neutralization
Productivity
Agenda
 Innovation and the Technology Adoption Life Cycle (TALC)
 Consumer Roles in Innovation
 Tips and Tricks: Optimizing Consumer Input Across the TALC
Innovation Has Changed in the 21st Century
 From an isolated laboratory  To a social and participative
approach
Technology Enables Collaboration
 From Systems of Record  To Systems of Engagement
Co-Creation
 A business strategy focusing on customer experience and
interactive relationships. Co-creation allows and encourages a
more active involvement from the customer to create a value-rich
experience
 ...is the chance for others to complete the work that you started,
going well beyond what you envisioned or intended"
• Henry Chesbrough
Co-Creation Types
Co-Creation – Guiding Principles
Co-Creation
http://www.youtube.com/watch?v=VlD2EyW5W_k
Lead Users
 Early adopters of new
methods, products, and
technologies.
 Their needs and choices
usually portend the needs
and choices of the general
market
 Provide significant
opportunities for
introduction of innovative
products.
End User
 Person or organization that
actually uses a product, as
opposed to the person or
organization that authorizes,
orders, procures, or pays for it.
Customer-Centricity
 Creating a positive consumer
experience at the point of sale
and post-sale.
 Differentiate from competitors
who do not offer the same
experience.
Technology and Customer Driven Innovation at
Intuit
http://www.youtube.com/watch?v=3S3RcYQm2jw
Agenda
 Innovation and the Technology Adoption Life Cycle (TALC)
 Consumer Roles in Innovation
 Tips and Tricks: Optimizing Consumer Input Across the TALC
Innovation Across the TALC
CustomerSatisfaction
Time
Enablers
“Delighters”
Price / Performance
Bowling Alley Tornado Main StreetEarly Market
Initial
Release
Potential Pitfall
 Beware of how you use input from Bowling Alley customers once
they are using your product successfully.
 They will tell you the “delighters” they want.
 In the Bowling Alley, you should be focusing on the “enablers” for
your next segment(s).
The Initial Release
Steve Jobs on Innovation
 So you can’t go out and ask
people, you know, what’s the
next big thing? There’s a great
quote by Henry Ford, right? He
said, “If I’d asked my customers
what they wanted, they would
have told me ‘A faster horse.‘ ”
The Enablers
Price / Performance
Delighters
Use the TALC to Shape the Consumer’s Role in
Innovation
Main Street
Thriving Market
Maturing Market
Declining Market
Fault
Line!
End of Life
Early
Market Bowling Alley
Tornado
In Conclusion
 The Technology Adoption Life Cycle can serve as a framework for
planning innovation initiatives
 Consumers play many roles in the innovation process
 Consumer roles vary dramatically as a product category moves
through the Technology Adoption Life Cycle
Mark Cavender
mcavender@chasminstitute.com
Dr. Carlos Téllez
carlos.tellez.martinez@itesm.mx
Lic. Sergio García
Profesor Tutor
Lic. Sergio García
sagm@itesm.mx
Derechos Reservados 2015 Tecnológico de Monterrey
Prohibida la reproducción total o parcial de esta obra
sin expresa autorización del Tecnológico de Monterrey.
Derechos Reservados 2015 Tecnológico de Monterrey
Prohibida la reproducción total o parcial de esta obra
sin expresa autorización del Tecnológico de Monterrey.

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