AIM@Innovations

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AIM@Innovations Project
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Supported by the Central European Initiative (CEI)
- KEPAustria Call 2014 and the Austrian
Development Cooperation.

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Project Goal
The main goal of the project is to enable transfer of knowledge and
strengthen capacities for provision of thematic trainings and
consultancies in the area of Innovation Management to SMEs, start-ups
and spinoffs in Republic of Macedonia.
The project is implemented by
brain plus and Knowledge Center

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Background/Needs Identification
 Importance of national innovations friendly eco-system - human capital, access to
finance, IPP, and a favourable business climate.
 National Strategy for Innovation 2012-2020 aims at tackling the main weakness of
Macedonian innovations eco-system:
 poor access to finance; and
 lack of absorptive capacity of Macedonian SMEs.
 Fund for Innovation and Technology Development (2013).
 supporting innovation and R&D activities in SMEs.
 activities and innovation projects in ICT, agriculture, tourism, and renewable energy,
preferably with a local collaboration agenda.

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Project Objectives
 To increase and strengthen existing capacities of
Knowledge Center (KC) for provision of consultancy
and trainings in the area of Innovations Management
(IM);
 To establish a Center for Innovations – Innovations
Lab;
 To promote and establish KC as a legitimate source of
knowledge in the area of IM; and
 To raise awareness on the benefits arising from the
knowledge on Managing Innovations in Macedonia.

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Project Activities
 Conducting needs assessment survey of Macedonian
companies in the area of Innovations;
 Developing and delivering an in-house training for
KC team in the area of Innovations Management;
 Organising a Study visit of University spinoff centers
in Austria; and
 Developing a training module and
 Delivering pilot training in Innovations Management.

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Results and Outputs
 Strengthened internal capacities of the main partner (KC) in
the area of consultancy and trainings in Innovation
Management;
 Developed national knowledge in the area of Innovation
Management;
 Raised awareness on the benefits arising from the knowledge
on Managing Innovations for the benefit of all stakeholders in
the country.

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Impact and Sustainability
 The project impact is foreseen in the increase of the number of SMEs,
start-ups and spin-offs which will successfully access and use the
instruments available from the Fund for Innovations, along with other
opportunities in the country.
 The sustainability of the project is ensured through the establishment of
a training and consultancy centre (!-lab) for innovation management
within the structure of the main partner (the company Knowledge
Centre).

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Knowledge Center Services

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Thank You for Your Attention!
Andrijana Bogdanovska, MBA, PhD cont.
andrijana.djurovic@theknowledge-center.com
mob: 389 70 60 60 60
office: 389 78 15 40 30
www.theknowledge-center.com
www.i-lab.mk

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Innovations and Innovations Management in Macedonia
Andrijana Bogdanovska, MBA, PhD

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Innovations and Types of innovations
From the first appurtenance of innovation in the economic theory of nations i.e. Schumpeter (1930s) till
today, the definition of innovation has changed many times in order for the same to accurately reflect the
growth in social understanding of the concept. As a result, innovation today is no longer just a novel
product, or a technology developed in the R&D labs of companies, it is as well a broad range of activities
which purpose is to develop new or significantly improved products, new processes, new marketing
approaches, or new organisations of business practices.
Different types of innovation in companies:
Product Innovation
Process Innovation
Market Innovation
Organisational Innovation

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Product Innovation
Definition:
Product innovation is the introduction of a good or service that is
new or significantly improved with respect to its characteristics or
intended uses. This includes significant improvements in
technical specifications, components and materials, incorporated
software, user friendliness or other functional characteristics.
(OECD, 2005)

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Radical vs. incremental

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Radical vs. Incremental

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Innovations in companies

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Macedonia – Product/Service Innovation Findings
13%
35%
24%
28%
During the four years (2010 to 2013), the company
introduced:
New or significantly improved
goods
New or significantly improved
services
Both
None

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57%34%
3%
3% 3%
Who developed these product/service innovations?
Mainly your enterprise or enterprise group
Your enterprise together with other enterprises
Mainly other enterprises or institutions
Research organizations
Others

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63%
69%
60% 62% 64% 66% 68% 70%
…. new to your market?
…. only new to your firm?
These goods and service innovations were…

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19.23%
13.21%
67.54%
0.0% 20.0% 40.0% 60.0% 80.0% 100.0%
Goods and service innovations introduced during
2010 to 2013
that were new to your market
Goods and service innovations introduced during
2010-2013 that were only new to your firm
Goods and services that were unchanged or only
marginally modified during 2010 to 2013
The percentage of total turnover in 2013 from….

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Process Innovation
Process Innovation describes measures in enterprises, which
introduce a new or significantly improved production processes,
distribution methods, or support activities for goods and services
(Lager 2010).
http://www.dineshbakshi.com

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Macedonia – Process Innovation Findings
28%
18%
18%
15%
21%
During the three years (2010 to 2013), the companies introduced ….
New or significantly improved methods of manufacturing
goods or services
New or significantly improved logistics, delivery or
distribution methods
New or significantly improved supporting activities for
your processes
All of the above
None of the above

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Macedonia – Process Innovation Findings
69%
20%
9%
1% 1%
Who developed these process innovations?
Mainly your enterprise or enterprise
group
Your enterprise together with other
enterprises
Mainly other enterprises or institutions …
Research organizations …

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Market and Organizational Innovations
An organisational innovation ‘is the implementation of a new
organisational method in the enterprise’s business practices,
workplace organisation, or external relations’
(OECD, 2005, p.51).
A marketing innovation ‘is the implementation of new
marketing method involving significant changes in product design
or packaging, product placement, product promotion or pricing’
(OECD, 2005, p. 49).

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Macedonia –Organisational and Market Innovation
Findings
69%
53%
51%
49%
36%
0% 20% 40% 60% 80%
New or significantly improved knowledge management
systems
A major change to the organisation of work within your
enterprise
New or significant changes in your relations with other firms
or public institutions
Significant changes to the design or packaging of a good or
service
New or significantly changed sales or distribution methods
During the three years 2010 to 2013, did your enterprise introduce...

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Macedonia –Organisational and Market Innovation
Findings
1.80 2.00 2.20 2.40 2.60
Reduced time to respond to customer or supplier
needs
Improved quality of your goods or services
Reduced costs per unit output
Improved employee satisfaction and/or reduced
rates of employee turnover
If your enterprise introduced an organisational innovation during the three
years 2010 to 2013, how important were each of the following effects?

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Session 1
Andrijana Bogdanovska, MBA, PhD cont.
mob: 389 70 60 60 60
office: 389 78 15 40 30
www.i-lab.mk

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Innovation Audit

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Factors for Successful Innovations - I
• Business culture favourable for new developments;
• Organizational structure favouring cross departmental project work;
• Clear market-, technology- and cooperation strategies;
• Precise market-oriented product and project definition;
• Efficient cross departmental team work
• Emphasis on pre-development and product definition phases
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Factors for Successful Innovations - II
• Structured innovation process, transparent stop or go decisions
• Efficient Project Management
• Use of integrated development tools and methods
• Emphasis on creativity
• Simultanious product-, production- and marketing development
• Market oriented cost management and QM
• Prototyping and costumer oriented testing
(SCHÄPPI ET AL,
2005)
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Innovation Audit
A tool for evaluating innovation assets and innovation performance of
companies.
 Consulting tool (Adams et al. 2006) applicable for medium and large
companies
Based on products and technology
Holistic and focused on the company and its people
 Self assessment tool (Project PROINCOR – CEE Project)
designed for SMEs

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Innovation Audit (Adams et al. 2006)
1. Inputs
Management
2. Knowledge
Management
3. Strategy
4. Structure and
Culture
5. Portfolio
Management
6. Project
Management
7.
Commercialisation

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Innovation Audit Consulting tool (Adams et al. 2006)
1. Inputs
Management
1.1. People
1.2. Physical and
Financial resources
1.3. Tools
R&D Intensity =
expenditure or number of
R&D employees / output.
Example: Number of
people committed to the
innovation task.
Facilities, or physical
resources - a broad
category - buildings to
computer equipment.
Example:Tools and
techniques for promoting
creativity
systems of quality control

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2. Knowledge
Management
2.1.Idea Generation
2.2. Knowledge
Repository
2.3. Information flows
СТРУКТУРА
ТЕХНОЛОГ
ИЈА
КУЛТУРА
Создавање
Усвојување
Генерирање
на Знаење
Финансиски
перформанси
Нефинансиски
перформанси
Организациски
Перформанс
Донесување
одлуки
Креирање/
иновации
Сензибилност
Користење
на Знаење
Складирање
Мерење
Заштита
Организација
Споделување
Трансфер
Реплицирање
Дисеминација
H1
H2
H3
H4
H5H6 H7

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3. Innovation
Strategy
3.1. Strategic
Orientation
3.2. Strategic
Leadership
Two types of measures
First, whether the organization
has an innovation strategy.
Second, strategy as a dynamic
instrument.
Vision for innovation, being
supportive and adopting an
attitude tolerant to change and
championing the notion of
innovation

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4. Structure and
Culture
4.1. Structure
4.2. Culture

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5. Portfolio
Management
5.1. Risk/Return balance
5.2. Optimization tool use

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6. Project
Management
6.1. Project efficiency
6.2. Tools 6.4. Collaborations
6.3. Communications

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7. Commercialisation 7.1. Market research
7.2. Market testing
7.3. Marketing and
sales

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Step 1: Identification
of the Innovation
Strategy
Step 2. Identification
of the desired
performance
Innovation audit
elements
Step 3. Identification
of the actual
performance
Innovation audit
elements

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Identification of the Innovation Strategy
Booz and Co (2012) classification and tool:
1. Need seekers
2. Market readers
3. Technology drivers
….. Exercise with participants

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Innovation Audit Self-assessment tool for SMEs
(Project PROINCOR – CEE Project)

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Innovation Circle
46
MARKET PULL
TECHNOLOGY PUSH
PROJECT
MANAGEMENT
TOOLS
INNOVATION
MARKETING
INNOVATION
CONTROLLING
INPUT
PROJECT
MANAGEMENT IMPLEMENTATION

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Project Management Objectives
quality
time
cost

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IMPLEMENTATION
Barriers to the successful implementation of innovative
products/services:
- Complexity of the new product/service
- Novelty of the way a problem is solved
- Positioning of a new product/service
- Social bonds/ties to business partners
- Giving attention to distribution channels
- Compliance with legal requirements

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mob: 389 70 60 60 60
office: 389 78 15 40 30
www.i-lab.mk

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Innovation management structure

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Innovation in Companies
Methodological Background
- „House of Innovation“
- „Integrated Product Development“
- „Market to market“ Circle
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„House of Innovation“
53
Source: House of Innovation AT Kearny

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1. Goal
setting
2. Future
analysis
3.Idea
generation
4. Idea
evaluation
5.Idea
detailling
7. Realization
planning
6. Concept
evalutaion
Structural process
W-Model – Innovation RoadMap –Methodology

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g
1. Goal setting
Company objectives
Company strategy
Company data
Market- and field data
Information from past plannings

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g
2.Future analysis
Design areas in case of product activities
Potential relevant for innovation
Company data
Market- and field data
Methods: Delphi-Study, Innovation-Potentiality-Matrix, portfolio-analysis,
scenario management

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g
3. Idea Generation
Creativity Techniques
Market research
Competitor Analysis
Other sources of ideas, fairs, conferences,
etc
Methods: creativity techniques

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4.Idea Evaluation
Innovation strategy
Innovation goals
Product ideas 2nd order
Methods: criteria-model, comparison in couples, Portfolio-System, selectional-
algorithm

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g
5.Idea detailing
Product ideas 2nd order
Methods: QFD-Methodology, market research, Morphologic Box, TRIZ
W-Model – Innovation RoadMap –
Methodology

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g
6.Concept evaluation
Innovation strategy
Methods: Conjoint Analysis, efficiency analysis, economic evaluation methods
Innovation goals
Product concepts
W-Model – Innovation RoadMap –
MethodologyW-Model – Innovation RoadMap –Methodology

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7. Implementation planning
Future projections
Methods Innovation Roadmap
Innovation tasks
Product concepts

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CREATIVITY TECHNIQUES

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What would our neighbour say? Creativity is…
 Sunrise of
evolution
 Pure inspiration
 Pure talent
 Either “you have it
or you haven’t”
 Abyssal follies
 Just for kids
 Artistic credo
 The cornerstone of
innovation
 ..ok, Albert, Leonardo….
But me?
 Divine spark
 Pure genius
 Pure curiousness
 Our potential
 ….

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The term creativity
Mihaly Csikszentmihalyi:
“Don’t ask, “What is creativity" but:
“Where is creativity?”
… a creative achievement in the context of the history of development
• by a person with certain abilities
• with specific motivation and emotions
• against the background of a certain society with a reservoir of knowledge &
culture
Mihaly Csikszentmihalyi
Creativity. Flow and the Psychology of Discovery and Invention.
New York, Harper Collins, 1996

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The term creativity
 „Creativity“ is defined as (Brockhaus):
The inventive capacity in actions and thoughts, which combines newness or
originality with a reference to the solution of various problems.
 The „creative process“ does not only include the – often seemingly
intuitive – proposing of new ideas, but also the analytic consideration
of the problem as well as the choice of ideas and the establishing of the
implementation strategy.

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The term creativity
“Creativity is each act, idea or cause changing an existing domain or
turning an existing domain into a completely new one.
And a creative human being is a person, whose thinking or acts
change a certain domain* or establish a new domain ... A domain
can only be changed by the explicit approval of the responsible
field.....”
Mihaly Csikszentmihalyi (1997, S. 48)
* Note: A domain is defined as a certain field of interest, e.g.
the domain of music.

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The term creativity
“Creativity is the ability of a human being to
create different trains of thought, which are
mainly new and also unknown to the person
creating them.”
J.E. Drevdahl (1956); Factors of importance for
creativity

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The term creativity
“Creativity is an answer or an ideas, which is new, or in a
statistical sense rare (…);and which can be implemented partly
or as a whole. It must be suited to improve an existing state or
fulfil a given goal.”
D.W. McKinnon (1962); The nature and nurture of creative talent

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Are you creative or analytical?

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The term creativity
Already in J.P. Guilford opposed linear thinking with "divergent thinking" (Hentig
1998, 12).
Edward de Bono calls this form of thinking "lateral thinking" and describes it as
follows:
"Lateral thinking is about moving sideways when working on a problem to try
different perceptions, different concepts and different points of entry. The term covers
a variety of methods including provocations to get us out of the usual line of thought.
Lateral thinking is cutting across patterns in a self-organising system, and has very
much to do with perception"

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 Try to be amazed about something every
day
 Try to make at least one day amazing.
 Begin each day with a specific goal you
can look forward to.
 Everything you are doing well, makes you
happy.
 To remain happy with one activity, you
have to increase its complexity.
 Make your own timing.
 Take time for reflection and relaxation.
 Design your own room.
 Try to find out, what you love in life and
what you hate about it.
Mihaly Csikszentmihalyi,

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Recommendations supporting your own creativity
 Do more of what you love and less of what you hate.
 Support your less developed sides.
 Change often between openness and closeness.
 Pursue complexity.
 Express what moves you.
 Take a look at the problems from as many points of view as possible.
 Determine the problem’s implications.
 Implement the solution.
 Produce as many ideas as possible.
 Develop as many different ideas as possible.
 Try to produce unusual ideas
Mihaly Csikszentmihalyi, Kreativität, Wie Sie das Unmögliche schaffen und
Ihre Grenzen überwinden, Stuttgart: Klett-Cotta 1997

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How to be more creative?

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Dimensions of creativity’s complexity
Paradox ability combinations of creative people
(cf. Mihaly Csikszentmihalyi, 1996)
 Physical energy versus ability to relax
Creative people are able to get into the highest concentration, and still emanating freshness
and enthusiasm. They are not constantly running on full speeds and are not hyper active, but
also make the necessary breaks recharging their batteries.
 Prudence versus naivety
Also interesting is the combination of wisdom, childishness and curiousness. There is also
evidence that creative achievements are only possible with an IQ of 120 or higher.

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 Discipline versus the playful element
The casual toying with ideas combined with a certain stubbornness and great endurance
are prerequisites for creative achievements
 Responsibility versus freedom
 Imagination and sense of reality
It is important that you are able to make a jump into the realms of fantasy, real border
being lifted.

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 Extroversion versus Introversion
Creative people combine the spectrum of introversion and extroversion, meaning
that they have the ability to on the one hand being in the centre of attention but also
only be an onlooker.
They are thus able to see things from a „meta level“ and can so produce an objective
judgment.

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Creativity inhibiting factors
Reinhard Sellnow (1997) points out:
“Many people cannot develop their creative potential because they have
been systematically blocked by their upbringing, or by their work
experiences and are still up to this day – partly unconsciously – blocked.“

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Eipper (1998) points out the most natural of creativity
blockades:
The implicitness:
“Seemingly natural things are not questioned anymore",
so that the following * mentioned demodulating sayings are
not noticed anymore.

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• Prenzel (1997, 32ff) lists further possibilities demotivating
learners (which can also be transferred to the relationship of
employer and employee), which minimize or at least complicate
creative approaches:
 Untransperant/vague goal and requirement structure
 Faulty instruction quality
(“feeding” with facts instead of supporting questioning thoughts and problem solutions)
 Lacking confidence and competence support
 Lacking social inclusion of human resources
 Infectious boredom
(Tutor/trainer thinks learning material below his or her level).

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Internal creativity inhibiting factors
Internal, individual blockades don’t develop independent from external influences, but are often
“home-made” and can thus be easier reflected and changed than external factors. R. Sellnow
(1997, 15f) counts among these internal creativity blockades:
• Pessimism: the constant expectation of negative developments and bad experiences produce little
courage for creative experiment.
• Conformism: the wish for accordance with the values of others can prevent necessary
innovations.
• Fear: “Being paralyzed with fear" or fleeing like a “scaredy-cat”, both kinds of behaviour
prevent conscious and independent problem solving and acting.
• Prejudices: quick judgments and solutions exclude certain aspects and lead to results, which are
not appertain to persons and/or situations.
• Routine: Acting on habits is comfortable, but does not appertain to changed situations.

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These methods allow a free flow of
thoughts. It is important to
think in many directions.
The generated ideas can be
combined with each other, so
that they again develop new
ideas.
The following methods are
included in the exercises:
• Brainstorming
• Brain Writing (6-3-5)
• Mind Mapping
Association methods Analogy- and picture methods
Here you try to find similarities,
which at first glance don’t even
seem to fit to the topic or problem,
which must be solved. Although you
may think that there is no causal
relation those ideas can nevertheless
contain solutions.
• Photo Impulse
• Bisociation
• Semantic Intuition
• Word String
Systematic ideas generation
These exercises cope with
structures and systematisation
A topic or problem is highlighted
from different point s of view
• Morphological box
• Osborn-Checklist
• Six-Hat-Method
• Ideas Workshop
• Headstand

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Mad Man and the Telegram – an example of Brainstorming

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Brainstorming (Alex. F. Osborn)
How? Preparation?
Board and coloured chalk or flipchart and crayons.
Duration:
20 – 30 min.
Implementation:
State the problem and write it on the board or flipchart

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6-3-5 Methodology „Brainwriting“
To generate creative ideas through association (similar to brainstorming)
All participants are integrated in the process by rotation in the creative phase.

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6-3-5 Methodology „Brainwriting“
How? Preparation?
Each participant gets an equally sized sheet of paper.
The paper is then divided into three columns (vertically) and six
rows (horizontally).
The problem is defined together
(Note: the template is available in a separate file)
Duration:
3 min. per turn – total of ~ 20 min

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6-3-5 Methode „Brainwriting“
Implementation:
Each person individually writes down one idea per box in the first row.
 The sheet is handed on (clockwise)
 The neighbour reads his or predecessors ideas and writes down his or her ideas,
which built up on the ideas already written down, in the next row
 The sheets are handed on until everybody again has his or her own sheet
*Note: repeated five times in 6-3-5 . 6 persons have handed on 3 ideas 5 times
 Maintain a relaxed atmosphere
 No discussion or criticism is allowed during the writing phase!
 An abundance of ideas is wanted

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Mad Man and Kodak‘s Carousal – an example of Analogy

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Photo Impulse
Goals:
To develop creativity trough associations
To find new ideas through pictures instead of words.
How? Preparation?
Camera
Duration: 20 – 30 min.
Implementation:
The participants take pictures with the camera inside and outside the building.
(related to the question) The pictures are presented in the group. Try to find relations
between the question and the pictures. Everybody says what comes to their minds.

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Six-Hat-Method (Edward De Bono)

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Six-Hat-Method
Information is collected without being evaluated.
The person wearing this heat is similar to a computer.
Only facts and numbers count, no emotions or judgements.
The personal opinion is totally unimportant.
The wearer of the white hat tries to get an objective overview about all
available data and information – totally independent from his or her personal
opinion.
This hat is often used at the beginning of a discussion or process to get a first
overview.

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Six-Hat-Method
The red hat symbolises emotions.
All emotions, positive or negative, are allowed,
they can be clear or diffuse, without the need
of justification.
In addition there is the “more general” approach, like e.g. intuition.
The wearer should act “from the gut”, not “from the head”!
Everything diffuse, everything connected to feeling can be said with the
read hat without the need for justification.

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Six-Hat-Method
The black hat – objective negative aspects
delivers all factual arguments, expressing doubts,
concerns and risks, but no negative feelings.
The wearer of the black hat tries to find all objective
negative aspects related to the topic.
It is important to only state objective doubts and not the own
personal negative feelings (Note: that’s the red hat’s job)

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Six-Hat-Method
The yellow hat - objective positive aspects
states the objective, positive characteristics,
meaning chances, advantages and plus points,
hopes and goals (Note: it is the opposite of the black hat),
so all aspects that support a decision.
Here again the positive aspects must be seen from an objective point of
view and not be influenced by feeling!
It is also not about developing ideas (that’s the green hat’s job), but about
the recognition of all aspects, which support a project, decision or idea.

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Six-Hat-Method
The green hat – new ideas
This hat stands for creativity, for growth and for
new ideas.
It represents alternatives and is a symbol for thinking beyond existing
things.
It allows provocation and opposition and can formulate everything, which
leads to new ideas, however crazy or impracticable these ideas may seem.
Critical comments are not allowed.
You may not make critical statements with the green hat (that’s the black
hat’s job).

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Six-Hat-Method
The blue hat – being the conductor
stands for control and organisation of the whole thought
process, meaning that the wearer of this hat looks down on the
whole process from a higher level. He or she maintains the
overview and brings together the single results.
The blue hat’s wearer’s tasks are collecting results and making decisions which hats
should be worn again during the further process.
The blue hat is often worn at the end of a meeting.
But it can also happen that one person is wearing the blue hat all the time moderating
the whole process.

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Six-Hat-Method
Implementation:
Write down a problem so that all participants can see it.
Now distribute six roles (and the corresponding hats) in the group symbolising the different lines of thought.
(Note: You can approach the problem according to group size and available time. This means that the whole
group, several participants or single participants can wear a specific “hat”)
It is important that everybody knows – and can see – from which perspective he or she should take a look at the goal
or problem.
(Note: instead of hats coloured table cards can be used which are then put in front of the respective participants.
Or write down the representative characteristic on a card and put it in front of the participants.)
It is best to start with the wearer of the white hat, to collect data and facts and get a first overview.

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Semantic Intuition
Goals:
To produce new ideas by randomly combining words (here: two words)
How? Preparation?
Flipchart
Writing paper
Duration:
20 – 30 min.

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Semantic Intuition
Implementation:
Collect 20 terms from the area of the question (or a specific topic) If there are double-words, separate them.
(Note: You can also use words that have nothing to do with the task. This can lead to innovative ideas, but may
also generate higher spreading losses.
Attention:
There are also often spreading losses when using terms suited for the task, due to useless ideas.
Number the terms 1 – 20.
Each participant (or each group) now chooses two numbers between 1 and 20.
The chosen terms are then combined forming a new term, which very often makes no sense.
Now fantasise what the term is:
- How could the item look like?
- How could it be used?
- Which use could we get from it?

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String of words
Implementation:
The group is sitting in a circle (6 – 15 persons)
(Note: two parallel groups are also possible)
The trainer states a word and starts a story
Each teenager now continues the story clockwise
The first one left of the trainer states the next word, the following another one, etc.
This is continued until somebody states a word which has to be followed by a punctuation mark.
The next teenager now states the punctuation mark.
The next one continues the story after the punctuation mark.
This continues until the story finds a (good) end

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Morphological box
Goals:
To gain new ideas by systematically combining partial aspects
How? Preparation?
Flipchart (or sheet of baking paper)
Duration:
30 – 60 min.
Implementation:
Definition and analysis of the problem:
Define and analyse the problem and divide it into essential part aspects. These part aspects must
be variable to cover the whole spectrum of possibilities in the problem.

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Marketing of Innovations

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• Identifying Sources
of Innovation
• Connecting with
Innovative Users
• Building Value-in-
Use Models
2. Marketing in
the Exploration
Phase
• Define the Value Proposition
• Define the Revenue Generating
Mechanism
• Design Resource Base and Value
Network
1. Marketing Strategy and
Business Model Design
• Understanding
Diffusion of
Innovations
• Communicatio
n in the
Diffusion
Process
3. Marketing in
the Exploitation
Phase

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MARKETINDUSTRY
GOODS
$$$$$$$$$
COMMUNICATION
INFORMATION
Industry vs. Markets

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Business
Mission
External
Environm
ental
Analysis
Internal
Environm
ental
Analysis
Goal
Formulation
Strategy
Formulation
Tactical
Formulation
Implement
ation Feedback
and
control
Business Strategy

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Select
Marketing
Objectives
Identify
Treats and
Opportunities
Select
Target
Markets
Develop
Marketing
Strategies
Design
Action Plans
Execute
Plans
Measure
Results
Marketing Strategy

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MARKETINDUSTRY
GOODS
$$$$$$$$$
COMMUNICATION
INFORMATIONBUSINESS
STRATEGY
MARKETING
STRATEGY
Business vs. Marketing Strategy

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Selling vs. Marketing Concept

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• Identifying Sources
of Innovation
• Connecting with
Innovative Users
Use Models
Marketing in
the Exploration
Phase
• Define the Value
Proposition
• Define the Revenue
Generating Mechanism
• Design Resource Base and
Value Network
Marketing Strategy and
• Understanding
Diffusion of
Innovations
• Communicatio
n in the
Diffusion
Process
Marketing in
the Exploitation
Phase

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EXAMPLE
Value Delivery Process

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The bases of the marketing mix – 4Ps vs7Ps
Physical
environment
People
Processes

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PRODUCT
PRICE
PLACE
PROMOTION CUSTOMER
RESELLERS
Pull vs. Push Strategy

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Product - Value and Revenue Generation

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Internal Factors
• Marketing Objectives
• Marketing mix strategy
• Costs
• Organisational
considerations
External Factors
• Nature of the market and
demand
• Competition
• Other environmental factors
(economy, resellers,
government)
Pricing
Decisions
Value based pricing
PRICING METHODS
Price- Value and Revenue Generation

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Producer
Direct to
Concumer
Consumer
segment 1
Retailers
Consumer
segment 2
Distributors
Dealers
Business
segment 1
Direct to
Business
Business
segment 2
Sales
Force
Catalogues,
telephone,
Internet
Place - Value and Revenue Generation

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Promotion - Value and Revenue Generation

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INTEGRATED MARKETING
COMMUNICATIONS

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ONLINE & SOCIAL MEDIA

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• Identifying
Sources of
Innovation
• Connecting with
Innovative Users
Use Models
Marketing in
the Exploration
Phase
Proposition
Value Network
• Understanding
Diffusion of
Innovations
• Communicatio
n in the
Diffusion
Process
Marketing in
the Exploitation
Phase

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Screen 1
Screen 2
Ship
Phase One
Product/Process idea
generation and concept
development
Phase Three
Rapid, focused development
projects of multiple types
Phase Two
Detailing of proposed
project bounds and required
knowledge
Innovation Funnel - Closed Innovation Model

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Innovation Funnel – Open Innovation Model

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• Identifying
Sources of
Innovation
• Connecting with
Innovative Users
Use Models
Marketing in
the Exploration
Phase
Proposition
Value Network
• Understanding
Diffusion of
Innovations
• Communication
in the Diffusion
Process
Marketing in
the Exploitation
Phase

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Adoption during the diffusion of innovation

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Marketing mix
and the PLC
Promotional mix
and the PLC
EXCERSISE

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Access to Finance - Global Trends

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Two basic forms of
access to finance for
entrepreneurs and
innovations of SMEs:
1. Own resources
2. Debt/ Credit
3. Equity
143

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Phase of
Development
Sources of Funding Alternative sources of
funding
Government framework
Pre seed and seed
phase
Own funds, family,
friends
Peer-to-peer lending
Crowdsourcing
www.kickstarter.com
Appropriate regulatory framework
Tax advantaged for investors
Tax breaks for start-ups
Start-up phase Business Angles Lending Platforms –
Market Invoice
Facilitate the formation BA networks
Tax relieves for companies
Tax advantages
Emerging growth Bank Finance
Venture Capital
Explore credit guarantees
Introduce monitoring and mediation entities
Make it easier for VC firms to make cross-
border investments
Co-invest with the private sector
Expansion Private Equity
Going Public
Avoid too much regulation on the PE activity
144

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Access to Finance - Macedonia

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0.00 0.50 1.00 1.50 2.00 2.50
Lack of funds within your enterprise or group
Lack of finance from sources outside your enterprise
Innovation costs too high
Lack of qualified personnel
Lack of information on technology
Lack of information on markets
Difficulty in finding cooperation partners for innovation
Market dominated by established players
Uncertain demand for innovative goods or services
No need due to prior innovations
No need because of no demand for innovations
During the three years 2010 to 2013, how important were the following factors for
hampering your innovation activities or projects or influencing a decision not to
innovate?

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National Sources of Funding
• Fund for Innovation and Technology Development – FITD;
• Direct financing from other Government Agencies (APPRM);
• Macedonian Bank for Development Promotion;
• European Bank for Reconstruction and Development;
• Commercial Banks; and
• Business Angels.

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