6. INTRODUCTION
TARGET MARKET TYPE OF INNOVATION
EARLY
ADOPTION
ADOPTION NETWORK
CONFIGURATION
MAINSTREAM ADOPTION
Frattini et All.’s approch to commercialization in
technological innovation
Comparative analysis of 18 innovations over 30 years
8. INTRODUCTION
Commercialization of innovation:
Definition:
“ set of decisions and activities that are necessary to
present a new product to its target market and start to
generate income from its sale.”
Dimensions:
TIMING
TARGETING POSITIONING DISTRIBUTION
PRICING
COMMUNICATIONPRODUCT CONFIGURATION
PARTNERSHIPS
10. COMMERCIALIZATION OF
RADICAL INNOVATION IN EARLY MARKET
Launching a whole product completely developed and perfectly working is FAR MORE
IMPORTANT than anticipating the timing of market entry
Limited number of functionalities BUT perfectly working
Product designed to emphasize the technical advantage and sophistication of the innovation
Idenify one or more market segments that will be more likely to adopt the innovation early
Communication campaign should emphasize the technical content of the innovation
An early preannouncement is generally helpful.
TIMING
TARGETING
COMMUNICATION
PRODUCT CONFIGURATION
Focused exclusively on those features of the
innovation that will be available at launch.
11. COMMERCIALIZATION OF
DISCONTINUOUS INNOVATION IN
EARLY MARKET
Linkages represents the single most important
dimension for stimulating the support of the
adoption network’s players
Innovation compatiblity with existing products and
systems needs to be clear
POSITIONING
PARTNERSHIPS
12. SELLING INNOVATION TO
MAINSTREAM CUSTOMERS
Mainstream Customers:
look for complete product,
end-to-end solutions for their needs,
want to be educated about the new technology,
require a high level of customer service,
are attracted by simple and easly understandable
solutions.
An adequate diffusion in the early market can
help lower the uncertainty perceived by the
members of the mainstream market.
MAINSTREAM
CUSTOMERS
EARLY
CUSTOMERS≠
13. Clearly positioned and clearly communicated
It is critical that distribution channels perform an intense customer
education function
Negative effects if there is an incomplete whole product
configuration
Price of the innovation significantly lowered before it diffuses
among mainstream market’s customers is important
SELLING INNOVATION TO
MAINSTREAM CUSTOMERS
POSITIONING
DISTRIBUTION
PRICING
PRODUCT CONFIGURATION
homogeneous message
associated to the innovation
Communication campaign that stresses
funcionalities not available in the basic
configuration of the innovation.
High-price for
complementary products
and services
COMMUNICATION
14. COMMERCIALIZATION OF INNOVATION AS A
SET OF INTERRELATED SUB-STRATEGY
• Early adoption strategy:
stimulate the diffusion of the
innovation in a early market;
• Adoption network
configuration strategy: obtain
support necessary for enabling
the diffusion of the innovation in
the mainstream market;
• Mainstream adoption strategy:
stimulate the diffusion of the
innovation in the mainstream
market.
17. Apogee and Decline caused
by “Disruptive Technology”
In the 1881 George Eastman (Rochester-New York) disrupted the
industry by founding a new company, Kodak, which introduced two
revolutionary breakthroughs:
• Dry Film and
• Handheld cameras
The handheld cameras
were for the masses
“You press the button, we do the rest”
18. Apogee and Decline caused
by “Disruptive Technology”
By 1975, Kodak market share in the US
was around 85%–90% for both
photographic film and cameras.
The digital technology was never really accepted nor adopted by Kodak for
nearly two decades after the invention of the digital camera:
Bankruptcy filing in January 2012
The first digital camera was invented in
1975. Initially considered fringe
technology, over the next thirty-five
years, disrupted and then wiped out
the film based photography industry.
19. Founded in 1908 by Camillo Olivetti with an initial
corporation stock of 350 000 lire
Became rapidly one of the most important industry in
electronic.
In 1955 it had about 16 000 employers and a sales
volume around 50 billions lire.
Its success derived from typewriters and calculators
Lexikon80
Divisumma24
Marcator5000 Elea 9003
20. In 1965 Olivetti launched Programma 101, which was
recognized as precursor of personal computers
3 years later its corporation stock grew of obout 465
billions lire, with more then 73 000 employers.
21. But in the same year, some young fellows worked in
their garage and involved customers who were intrigued
by the possibilities of a computer they improved their
product, lowered their prices and...
...the rest, as they say, is hystory!
23. CONCLUSIONS
Firm should modify its commercialization approach
independently from the characteristics of the innovation, as
long as the innovation diffuses into the target market
Suitable communication campaign
Right product targeting
Better few functionalities BUT perfecly working and clear
BELIEVEinINNOVATION!
