Innovate your innovation


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Presented in Verhaert`s Innovation Day 2012 in Belgium

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  • innovate your innovation to keep the business growingIn recession companies focus more on organizational, business model innovationIn high economy growth time on technologies – industry level innovation
  • He is an inventor.. He invented and left the product for another company bring to the market and manage the business model around itDEKA had a business model around inventing . He could continuously develop revolutionary products and quit after inventingSegway was his first big love, he wanted to bring to market himself…AutoSyringe, Inc. (infusion devices: wearable infusion pump, wearable infusion pump for diabetics and others);sold that company to Baxter International Corporation
  • The invention gained attention even before it was unveiled in December 2001, spurred by leaked quotes from a book proposal that ran on the news site. The proposal quoted Apple Inc. Chief Executive Officer Steve Jobs saying people will design cities around the invention and venture capitalist John Doerr comparing its significance to the World Wide Web. Development budget: 100 m USDChallenges:Pricy (6,000 USD +)Legal restrictions (NewYork)2003: recalled all 6,000 of its transporters after a safety report found operators risk falling as batteries ran out. 2006: recalled 23,500 of its scooters because they could suddenly reverse, causing the rider to fall were too high. The Segway was described as the future of transport. As an innovation it was said to be on a par with the PC or the internet. Inevitably it could not live up to this level of hype. PR exposure is generally useful but this time it was overdone. It was a product not a solution. The product works well but it lacked a support context. Where can you park it? How do you charge it? Do you use it on roads or sidewalks? Our cities are designed for pedestrians or speedy vehicles and this was neither so it had no proper infrastructure to support it. No clear need or target market. Who was the target market? Who really needed this? It was an appealing novelty but there was no compelling need for anyone to buy it – and it was very expensive. It was an invention rather than an innovation. The Segway was patented and kept under wraps until its launch. There was no user feedback or iteration in the process. Its inventors were then surprised when people criticised or ridiculed the design for being ‘dorky’ rather than cool. Regulation. The Segway fell foul of regulation in many countries where it was banned from sidewalks and roads because it did not fit any existing categories. This is a problem for a truly revolutionary product – but it was not properly anticipated.
  • with examples different kind of innovaitons
  • Meaningful Marketing is all about context. Hitting consumers when it matters, promoting product value (for purchase) by adding experience value immediately (for free)
  • The Economist cites that 20% of all output from 3D printers is currently producing final products rather than prototypes. And it is expected that by 2020 that number will rise to more than 50%.
  • The department store’s test of the svelte virtual employee, whose talking is prompted by sensors in the ceiling when people approach her, is among an array of high-tech initiatives that retailers are starting to embrace to help cut costs and pump up business.N.C.-based Marketing Ad Group, which began promoting the product last summer and has leased about 70 greeters. "You might have to pay someone $10 an hour to be a greeter, while this costs just $2 to $3" an hour based on the monthly leasing cost.Macy's Magic Fitting Room features a large-scale mirror with multi-touch technology that interacts with a multi-touch tablet and lets customers browse, shop and "try-on" the latest must-have items virtually, with the magic of style at the user's fingertips. Flip through the hottest tops, dresses, bottoms and coats from some of Macy's top designers and once complete you can send the whole experience to your Facebook page, SMS, or email, and shop all the looks in the store itself. Customers have a digital photo taken by a camera attached to the mirror to register their position and body orientation before trying on virtual apparel that is projected onto their image.In total, they’ve installed more than 1,000 bots at a dozen warehouses and are growing quickly. By the end of this year, they expect single locations to have systems with 1,000 of the machines. Dreamed up and executed by old M.I.T. buddies, these teams of retail robots presage an automated future in which multiagent robotic systems put computer science theories into practice. smart carts are another way to pitch customized deals to shoppers at or before the point of purchase. Customers can create a shopping list on the Web while they're at home, then load it up on a screen in their shopping cart while at the store. •Faster, more efficient shopping. Concierge tells shoppers where to find items, and describes complementary and alternative products, recipes, brand comparisons, product details, and a lot more. •An enjoyable shopping experience. Consumers find what they need without wasting time searching store aisles. As well, scanning products with Concierge means there are no more line-ups when their shopping is done. the retailer and advertisers gather shopping intelligence that lets them deliver targeted ads and promotions that mean more effective inventory management, higher sales, and increased profits.
  • Meaningful Marketing is all about context. Hitting consumers when it matters, promoting product value (for purchase) by adding experience value immediately (for free)
  • it is not monolithic; consider the diversity of it; make the understanding of it practical for all units of the company (not only marketing); the number of customers you need depends on complexity of the product, diversity of market, product use, and the sophistication of customers; collect the insights: what are the needs? how the needs can be satisfied? what are the priorities?
  • Meaningful Marketing is all about context. Hitting consumers when it matters, promoting product value (for purchase) by adding experience value immediately (for free)
  • Substitute competition – computer + skype
  • Dysonsufferedfromeconomicrecession – cuttingcostsinsalaries, R&D; planning to havenewapplicationswithhismotortechnologyinautomotive, aerospaceCooper offers these “seven ingredients of a unique, superior product with real value for the customer”: Meets customers’ needs better than competitive products. Is a better-quality product than competitors’ (however the customer defines quality). Has unique benefits and features for the customer. Solves customers’ problems with competitive products. Reduces the customer’s total in-use costs (better value-in-use). Has highly visible benefits for users. Is innovative or novel — the first of its kind on the market.
  • Meaningful Marketing is all about context. Hitting consumers when it matters, promoting product value (for purchase) by adding experience value immediately (for free)
  • rises: Telecommunications service providers are increasingly turning to outsourcing as a solution to ever-increasing operating costs, a study from Infonetics Research finds. By the end of 2010, service providers had outsourced $53.5 billion worth of networking tasks to equipment vendors, 8 percent more than they outsourced in 2009. "With major outsourcing deals looming, Ericsson, Nokia Siemens Networks, Alcatel-Lucent, and Huawei may end up running three-quarters of the networks on this planet," notes StéphaneTéral, Infonetics Research's principal analyst for mobile and FMC infrastructure. News release.
  • Meaningful Marketing is all about context. Hitting consumers when it matters, promoting product value (for purchase) by adding experience value immediately (for free)
  • Innovate your innovation

    1. 1. CONFIDENTIAL Innovate your Innovation Zane Smilga Innovation consultant zane.smilga@verhaert.com26/10/2012 Slide 1
    2. 2. CONFIDENTIAL http://www.fastcompany.com26/10/2012 Slide 2
    3. 3. CONFIDENTIAL Content Falling in love with one type of innovation watch out! What to include in innovation programs open the box! How to do it? shape it smart!26/10/2012 Slide 3
    4. 4. CONFIDENTIAL What is his innovation love story? big love: Segway first love: AutoSyringe, Inc. sold to Baxter International Corporation another secondary love: First; robotics competition secondary love: another secondary second love: Helicopter love: DEKA company, Teletrol. sold to Philips Research & Development Corporation sold in medical sector26/10/2012 Slide 4
    5. 5. CONFIDENTIAL it almost failed… - lack of user-centric design - lack of positioning (wide target group, high price) - wrong marketing approach (market penetration, no distribution network)“its significance is close to - lack of product ecosystem (parking, charging, taking the World Wide Web” a plane, regulations…) /John Doerm 2001/ business model innovation & marketing innovation Every product has to be considered in the system no matter how big its potential may be on its own26/10/2012 Slide 5
    6. 6. CONFIDENTIAL innovation focus brand products / services technology operations26/10/2012 Slide 6
    7. 7. CONFIDENTIAL innovation focus brand products / services technology operations26/10/2012 Slide 7
    8. 8. CONFIDENTIAL THERE Management innovation Organizational innovation Service innovation Business model innovation IS Marketing innovation Value chain innovation Technology innovation Material innovation Application innovation Partnership innovation MORE Resource management innovation Customer relationship management innovation Brand innovation Process innovation Packaging innovation Revenue stream innovation Product innovation Pricing innovation but how to choose? Platform innovation Experience innovation *** Radical innovation Incremental innovation Disruptive innovation26/10/2012 Slide 8
    9. 9. CONFIDENTIAL Goals of doing more than one type of innovation 1. Adding value to the main innovation line Innovation to reach company objectives and 2. Connecting to users and customers continue innovation to growing 3. Not missing out on important market trends stay ahead of competition 4. Not missing out on important technological developments DNA innovation 5. Staying ahead of competition innovation to connect better to 6. Solving company problems and reaching the goals your customers and users innovation to be in line with market complementary effect developments (trends and and support for technologies) company DNA26/10/2012 Slide 9
    10. 10. CONFIDENTIAL an innovation call from market & technologies26/10/2012 Slide 10
    11. 11. CONFIDENTIAL Innovation - response to market trends how long can we still count on “many cheap hands”?26/10/2012 Slide 11
    12. 12. CONFIDENTIAL Example Adidas will close its factories in China Adidas DNA: - product innovation & manufacturing - strong brand Product innovation Complementary innovation: Organizational innovation: Manufacturing will possibly be outsourced and local R&D centers allocated in China organizational innovation Channel innovation: & Efforts (most likely) will be put in consumer channel innovation market potential of China (more retail channels, retail experiences)26/10/2012 Slide 12
    13. 13. CONFIDENTIAL Innovation – response to technological developments 3 D printing Ubiquitous sensor networks Robotics and automation Artificial intelligence Smart materials/homes/cities26/10/2012 Slide 13
    14. 14. CONFIDENTIAL Example – shopping centers technology driven retail business Marketing innovation a digital greeter at the Bay’s flagship Toronto a touch-screen computer on the handle of store a shopping cart & in-store wireless network Service/ experience Innovation + business model innovation Smart mirrors & social retailing at Macy`s in Robots in retail warehouses - 12 min from NYC order to truck, Zappos & Kiva systems26/10/2012 Slide 14
    15. 15. CONFIDENTIAL an innovation call from customers and users26/10/2012 Slide 15
    16. 16. CONFIDENTIAL Innovation – response to customers and users User and customer centric approach Innovation opportunities in the whole ecosystem of products, services and business26/10/2012 Slide 16
    17. 17. CONFIDENTIAL Example manufacturers of packaging machinery turn into service providers Product • Renting out machinery and equipment innovation • Supplying consumables • Providing logistics • Supporting with temporary crew • Providing condition monitoring and maintenance value proposition services + service innovation26/10/2012 Slide 17
    18. 18. CONFIDENTIAL an innovation call from competition26/10/2012 Slide 18
    19. 19. CONFIDENTIAL Innovation - response to competitor threats 1. Direct competition 2. Price competition 3. Substitution competition 4. Commodity trap 5. Brand competition26/10/2012 Slide 19
    20. 20. CONFIDENTIAL Example Innovation to build competitive advantage Foxonn plans to use 1 million of robots (in 3 years) Process optimization - organizational innovation Iconic design and brand innovation Market innovation core innovation26/10/2012 Slide 20
    21. 21. CONFIDENTIAL an innovation call from internal problems & goals26/10/2012 Slide 21
    22. 22. CONFIDENTIAL Innovation – response to company goals and priorities26/10/2012 Slide 22
    23. 23. CONFIDENTIAL Innovation – response to company goals and priorities Innovation goal EFFICIENCY Optimization & cost cutting in Optimization & cost cutting products & processes services26/10/2012 Slide 23
    24. 24. CONFIDENTIAL What type of innovation is useful for your innovation programs?26/10/2012 Slide 24
    25. 25. CONFIDENTIAL Example Telecoms changed their DNA - outsourcing infrastructure & service development - customer relationship management inhouse Product innovation Business model & customer relationship management innovation26/10/2012 Slide 25
    26. 26. CONFIDENTIAL How to revitalize innovation programs26/10/2012 Slide 26
    27. 27. CONFIDENTIAL Revitalizing innovation programs Innovation programs Innovation programs that make your position in that make your company market and DNA stronger grow and DNA stronger Innovation to connect better to your customers Innovation to and users core stay ahead of innovation competition Innovation to be in line with market developments (trends and technologies)26/10/2012 Slide 27
    28. 28. CONFIDENTIAL Revitalizing innovation programs • watch out not to fall in love with only one type of innovation • open the box of diverse innovation opportunities in other areas • analyse, assess, screen and design innovation programs with more power for growth26/10/2012 Slide 28
    29. 29. CONFIDENTIAL VERHAERT MASTERS IN INNOVATION® Headquarters Hogenakkerhoekstraat 21 9150 Kruibeke (B) tel +32 (0)3 250 19 00 fax +32 (0)3 254 10 08 More at VERHAERT MASTERS IN INNOVATION® Netherlands European Space Innovation Centre Kapteynstraat 1 VERHAERT MASTERS IN INNOVATION® helps companies and 2201 BB Noordwijk (NL) governments to innovate. We design products and systems for organizations looking for Tel: +31 (0)633 666 828 new ways to provide value for their customers. We are a leading integrated product innovation center; creating technology platforms, More at developing new products and business in parallel, hence facilitating new-growth strategies for our clients.26/10/2012 Slide 29