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Common pitfalls of b2 b organizations ver 1.3

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“Innovate or die!” “Let’s create an innovation culture!” “Ideas, ideas, ideas!” “Great brainstorming session. Woohoo, now we’re innovators!”

All organizations strive to innovate. So why do so many companies, especially B2B companies, fall short on truly innovating? Join JJ Rorie, Managing Director of product management consultancy Envision Advisory, as she dives into these common pitfalls of B2B product innovation:

• Not having a clear understanding of what innovation really means
• Thinking of innovation as a time-boxed activity
• Mistaking “customer-ruled” for being “customer-focused”
• Not knowing your customers’ customers
• Trying to be something that you’re not
• Ignoring product portfolio management

Participants will learn:
1. The difference between B2B and B2C innovation
2. How their organization should define innovation
3. How to recognize common pitfalls and combat them

Published in: Marketing
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Common pitfalls of b2 b organizations ver 1.3

  1. 1. Product Innovation Common Pitfalls of B2B Organizations AIPMM Webcast Series
  2. 2. Our Speaker JJ Rorie Managing Director at Envision Advisory
  3. 3. AGENDA 1. What is Innovation • Defining innovation • Types of innovation 2. B2B Innovation Pitfalls • Thinking of innovation as an activity • “Customer-ruled” vs. “customer-focused” • Not knowing your customers’ customers • Trying to be something that you’re not • Ignoring product portfolio management
  4. 4. WHAT IS INNOVATION?
  5. 5. WHAT IS INNOVATION? https://www.merriam-webster.com/dictionary/innovation
  6. 6. WHAT IS INNOVATION? What defines “new”?
  7. 7. The process of translating an idea or invention into a good or service that creates value or for which customers will pay. WHAT IS INNOVATION? Source: http://www.businessdictionary.com/definition/innovation.html
  8. 8. B2B B2C Products sold to individuals / consumers Products sold to businesses, governments, institutions • Customers want you to help improve their business • More focus on features / workflow • Greater number of stakeholders – more layers of voice of customer • Customers want you to help improve their life • More focus on design / user experience • Greater number of users – larger sample size for voice of customer B2B v. B2C INNOVATION
  9. 9. TYPES OF INNOVATION
  10. 10. DISRUPTIVE vs. INCREMENTAL TYPES OF INNOVATION
  11. 11. DISRUPTIVE • Transforms existing markets or industries, or creates new ones • Results in groundbreaking products • Riskier – “betting the farm” TYPES OF INNOVATION
  12. 12. DISRUPTIVE INNOVATION The invention of the Universal Product Code (UPC) Source: https://en.wikipedia.org/wiki/Universal_Product_Code
  13. 13. DISRUPTIVE INNOVATION The first mobile phone Source: https://en.wikipedia.org/wiki/Universal_Product_Code
  14. 14. INCREMENTAL • Focuses on cost or feature improvements in existing products or services • New products that are extensions of an existing line or for existing markets • Less risky than disruptive TYPES OF INNOVATION
  15. 15. INCREMENTAL INNOVATION Source: Business Insider; http://www.businessinsider.com/how-oxo-reinvents-everyday-objects-2016-2 Photo: Oxo Oxo reinvents common kitchen gadgets
  16. 16. INCREMENTAL INNOVATION Source: Tech Crunch https://techcrunch.com/2017/12/12/twitter-officially-launches-threads-a-new-feature-for-easily-writing-tweetstorms/ Twitter releases new features
  17. 17. OPEN vs. CLOSED TYPES OF INNOVATION
  18. 18. OPEN • Ask external stakeholders – customers, partners, the public – to help with innovation and idea sharing • “All of the good ideas are not only within our walls” • We can profit from others’ use of our Intellectual Property (IP) TYPES OF INNOVATION
  19. 19. OPEN INNOVATION Lego Mindstorms allows customers to create designs Source: https://www.ideaconnection.com/open-innovation-success/Lego-Success-Built-on-Open-Innovation-00258.html
  20. 20. OPEN INNOVATION Amazon, Berkshire, JPMorgan tackle healthcare
  21. 21. CLOSED • We believe our people will have the best ideas • We believe we can get these great ideas to market first • We should control our Intellectual Property so that our competitors can’t profit from it TYPES OF INNOVATION
  22. 22. CLOSED INNOVATION Some firms are notoriously secretive with their innovation
  23. 23. COMMON PITFALLS
  24. 24. 5 Ignoring product portfolio management 4 Not knowing your customers’ customers 3 Being “customer-ruled” vs. “customer-focused” 2 Thinking of innovation as an activity Trying to be something that you’re not COMMON PITFALLS 1
  25. 25. PITFALL #1 Trying to be something you’re not
  26. 26. 1 Trying to be something that you’re not
  27. 27. 1 Trying to be something that you’re not
  28. 28. 1 Trying to be something that you’re not It’s ok to be you… define it, understand it, own it Note: there are no good and bad – just be honest and drive innovation within the context of your organization’s “personality” • Rely on your company’s mission • Are you risk-averse or not? • Are your processes bureaucratic or flexible?
  29. 29. PITFALL #2 Thinking of innovation as an activity instead of a culture
  30. 30. 2Thinking of innovation as an activity “We’re ideating.” “I’m Innovation Man!”
  31. 31. 2Thinking of innovation as an activity Make innovation part of your organization’s “DNA” • Create a learning environment • Celebrate wins and losses • Encourage ideas from everyone
  32. 32. PITFALL #3 Believing you are customer-focused when really you are customer-ruled
  33. 33. 3Being customer-ruled vs. customer-focused Don’t focus all your time on specific customer requests • Think long-term • Strategic > features • Learn to say “no”
  34. 34. PITFALL #4 Not truly understanding your customers’ customers
  35. 35. 4Not knowing your customers’ customers Help your customers solve their customers’ problems • Conduct voice of client with end users • Talk to your clients
  36. 36. PITFALL #5 Ignoring product portfolio management
  37. 37. 5Ignoring product portfolio management Keep your portfolio fresh so you can focus on innovation • Rationalization exercise – reduce the number of products you sell, so that you can focus your human and financial resources on the most profitable products and new development • Don’t be afraid to sunset… all products have a lifespan
  38. 38. Contact the Speaker JJ Rorie Managing Director Envision Advisory jjrorie@envisionadvisory.com 954.600.9944 mobile JJ Rorie @JJRorie

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