- Firms derive significant sales and profits from recently introduced products within the last 5 years. However, product innovation carries high risks and failure rates.
- There are two categories of strategic behavior for product development - induced and autonomous. Induced involves planned innovation within existing markets/products, while autonomous allows for more creative thinking outside current offerings.
- Successful management of innovation requires flexibility but also structure. Firms must anticipate customer needs, communicate in real-time, experiment with new ideas, and carefully manage project transitions.
Organazational and Strategic innovationAfrouz Hojati
Strategic Innovation is the creation of growth strategies, new product categories, services or business models that change the game and generate significant new value for consumers, customers and the corporation
Organazational and Strategic innovationAfrouz Hojati
Strategic Innovation is the creation of growth strategies, new product categories, services or business models that change the game and generate significant new value for consumers, customers and the corporation
There are different Strategic Innovation methodologies, frameworks and models that aid organizations, particularly with technology driven, production companies. Most companies must innovate and continually improve to maintain a competitive advantage, but how they accomplish these process improvements differs significantly from Strategic Innovation. Traditional strategies rely on process improvements and product development through lessons learned, adoption of internal and external best practices, and improvements that are incremental and nature that are often found in Total Quality Management programs. Strategic Innovation requires a culture that can create breakthroughs within a company’s current market, and potentially enter a new market or segment. Strategic Innovation, and the implementation models that follow, are not for every organization, and a review of traditional strategies and risks associated with Strategic Innovation will be covered.
There are different Strategic Innovation methodologies, frameworks and models that aid organizations, particularly with technology driven, production companies. Most companies must innovate and continually improve to maintain a competitive advantage, but how they accomplish these process improvements differs significantly from Strategic Innovation. Traditional strategies rely on process improvements and product development through lessons learned, adoption of internal and external best practices, and improvements that are incremental and nature that are often found in Total Quality Management programs. Strategic Innovation requires a culture that can create breakthroughs within a company’s current market, and potentially enter a new market or segment. Strategic Innovation, and the implementation models that follow, are not for every organization, and a review of traditional strategies and risks associated with Strategic Innovation will be covered.
Best Practices for an Effective Innovation ProcessMindjet
In our webinar with Forrester VP and analyst Chip Gliedman, we discuss best practices for implementing an effective innovation process, from ideas through execution.
Clayton Christensen essentials on what to include in developing a business plan or a business model. Also elements of disruptive innovation and some charts on the process of constructing theory from statements of association, to correlation to causality.
Achieving Innovation through Outcome EngineeringCognizant
In today's rapidly changing technical and competitive environment, the onus is on organizations to continuously develop innovative digital products. But, first they must ensure that both their design and digital product engineering teams are aligned from the beginning -- using an approach called outcome engineering.
Second in a series of innovation webinars from Paul May & Brendan Dunphy of 'How to Farm Lightning: sustainable innovation' in partnership with Frost & Sullivan Ltd
The value of any technological innovation is only partly determined by what the tech-nology can do. A large part of the value of an innovation is determined by the degree to which people can understand it, access it, and integrate it within their lives. Effective deployment strategies can reduce uncertainty about the product, lower resistance to switching from competing or substitute goods, and accelerate adoption.
This presentation provides a framework for product managers and C-level executives to discuss and prioritise their product investments. Maintaining a practical focus, it condenses highlights from McKinsey's three horizons model and more recent successors developed by academics at Wharton and MIT.
Basic principles of product development with experiences in HVAC and other B2...A.T.E. Private Limited
NPD or new product development is a process that takes a product from concept to market. This presentation explains the importance of NPD, and the seven principles of lean, rapid and profitable NPD, in the context of HVAC and other B2B products. Click on the link to read more.
There are different Strategic Innovation methodologies, frameworks and models that aid organizations, particularly with technology driven, production companies. Most companies must innovate and continually improve to maintain a competitive advantage, but how they accomplish these process improvements differs significantly from Strategic Innovation. Traditional strategies rely on process improvements and product development through lessons learned, adoption of internal and external best practices, and improvements that are incremental and nature that are often found in Total Quality Management programs. Strategic Innovation requires a culture that can create breakthroughs within a company’s current market, and potentially enter a new market or segment. Strategic Innovation, and the implementation models that follow, are not for every organization, and a review of traditional strategies and risks associated with Strategic Innovation will be covered.
There are different Strategic Innovation methodologies, frameworks and models that aid organizations, particularly with technology driven, production companies. Most companies must innovate and continually improve to maintain a competitive advantage, but how they accomplish these process improvements differs significantly from Strategic Innovation. Traditional strategies rely on process improvements and product development through lessons learned, adoption of internal and external best practices, and improvements that are incremental and nature that are often found in Total Quality Management programs. Strategic Innovation requires a culture that can create breakthroughs within a company’s current market, and potentially enter a new market or segment. Strategic Innovation, and the implementation models that follow, are not for every organization, and a review of traditional strategies and risks associated with Strategic Innovation will be covered.
Best Practices for an Effective Innovation ProcessMindjet
In our webinar with Forrester VP and analyst Chip Gliedman, we discuss best practices for implementing an effective innovation process, from ideas through execution.
Clayton Christensen essentials on what to include in developing a business plan or a business model. Also elements of disruptive innovation and some charts on the process of constructing theory from statements of association, to correlation to causality.
Achieving Innovation through Outcome EngineeringCognizant
In today's rapidly changing technical and competitive environment, the onus is on organizations to continuously develop innovative digital products. But, first they must ensure that both their design and digital product engineering teams are aligned from the beginning -- using an approach called outcome engineering.
Second in a series of innovation webinars from Paul May & Brendan Dunphy of 'How to Farm Lightning: sustainable innovation' in partnership with Frost & Sullivan Ltd
The value of any technological innovation is only partly determined by what the tech-nology can do. A large part of the value of an innovation is determined by the degree to which people can understand it, access it, and integrate it within their lives. Effective deployment strategies can reduce uncertainty about the product, lower resistance to switching from competing or substitute goods, and accelerate adoption.
This presentation provides a framework for product managers and C-level executives to discuss and prioritise their product investments. Maintaining a practical focus, it condenses highlights from McKinsey's three horizons model and more recent successors developed by academics at Wharton and MIT.
Basic principles of product development with experiences in HVAC and other B2...A.T.E. Private Limited
NPD or new product development is a process that takes a product from concept to market. This presentation explains the importance of NPD, and the seven principles of lean, rapid and profitable NPD, in the context of HVAC and other B2B products. Click on the link to read more.
Agility In Innovation - Delivering Breakthrough ProductsNils Davis
We at Accept Software, along with some industry analysts like Forrester Research’s Dave West and Roy Wildeman, are seeing a need to reduce product development and delivery risks, and improve quality and market satisfaction, using what they have dubbed “Agile Value Management” – analytically evaluating product tradeoffs not only continuously during execution, as in agile, but from the very start of the product planning process.
In this presentation I talk about some concepts in product planning and agile software development that may be new for you, even if you are already familiar with agile methodologies.
This presentation was given at the AIPMM's Product Management Education Conference on 17 November 2006 in San Jose.
Responding to the Impact of #Covid19 Pandemic & Economic Crisis and Beyond - ...Richard Platt
So this Economic Crisis caused by the #Covid19 pandemic has hit us all pretty hard, so I thought you might want to get a leg up and over this whole thing and leverage your own and your organization's talents and abilities to make that Innovation Pivot, that everyone is going to need to do, and done quickly, otherwise it's not good for you and your company. This #Covid19 has been a big reset, but more than that, it's a #StrategicInflectionPoint, which basically means that everyone's profitability and competitive advantage got smashed, and you all are going to have to do something about that...and the one way we know, that will work, is to #innovate your way out of this economic downturn, because at the end of the day, no company or individual is going to survive this impact without Innovating their way out of the situation. So we suggest you have a read and let us know what you think, and if you need help let us know, we do know how to deal with this, learn how to #systematically innovate and get you going once again and back to being profitable and competitive individuals and firms.
Customer Collaboration & Product Innovation Using Social NetworksJohn Carter
This presentation to the Silicon Valley PMI Annual Symposium discusses the migration of social networks into products and product development processes. It presents the best practices and pitfalls of innovating with customers using social media and suggests some next steps for companies that are new to the use of social networks in product development.
Just having an Idea-to-Launch process in place does not guarantee success. In this article Scott Edgett outlines the innovation capabilities that, when embraced by organizations, creates a culture of product innovation excellence. Discover how the Stage-Gate Model can break down the often complex and chaotic process of taking an idea from inception to launch into a complete, robust business process.
DAN Brand Accelerator: Client Pitch KeynoteJason Newport
Here is the Brand Accelerator pitch deck I began using to pitch current clients more than two years ago. I refined as we advanced through each phase once clients had signed on and we adjusted as necessary. I pitched this to more than twenty clients, all household brand names -- an converted each of them. Not a single brand declined to move forward.
Digital Commerce Lecture for Advanced Digital & Social Media Strategy at UCLA...Valters Lauzums
E-commerce in 2024 is characterized by a dynamic blend of opportunities and significant challenges. Supply chain disruptions and inventory shortages are critical issues, leading to increased shipping delays and rising costs, which impact timely delivery and squeeze profit margins. Efficient logistics management is essential, yet it is often hampered by these external factors. Payment processing, while needing to ensure security and user convenience, grapples with preventing fraud and integrating diverse payment methods, adding another layer of complexity. Furthermore, fulfillment operations require a streamlined approach to handle volume spikes and maintain accuracy in order picking, packing, and shipping, all while meeting customers' heightened expectations for faster delivery times.
Amid these operational challenges, customer data has emerged as an important strategy. By focusing on personalization and enhancing customer experience from historical behavior, businesses can deliver improved website and brand experienced, better product recommendations, optimal promotions, and content to meet individual preferences. Better data analytics can also help in effectively creating marketing campaigns, improving customer retention, and driving product development and inventory management.
Innovative formats such as social commerce and live shopping are beginning to impact the digital commerce landscape, offering new ways to engage with customers and drive sales, and may provide opportunity for brands that have been priced out or seen a downturn with post-pandemic shopping behavior. Social commerce integrates shopping experiences directly into social media platforms, tapping into the massive user bases of these networks to increase reach and engagement. Live shopping, on the other hand, combines entertainment and real-time interaction, providing a dynamic platform for showcasing products and encouraging immediate purchases. These innovations not only enhance customer engagement but also provide valuable data for businesses to refine their strategies and deliver superior shopping experiences.
The e-commerce sector is evolving rapidly, and businesses that effectively manage operational challenges and implement innovative strategies are best positioned for long-term success.
How to Run Landing Page Tests On and Off Paid Social PlatformsVWO
Join us for an exclusive webinar featuring Mariate, Alexandra and Nima where we will unveil a comprehensive blueprint for crafting a successful paid media strategy focused on landing page testing.With escalating costs in paid advertising, understanding how to maximize each visitor’s experience is crucial for retention and conversion.
This session will dive into the methodologies for executing and analyzing landing page tests within paid social channels, offering a blend of theoretical knowledge and practical insights.
The Pearmill team will guide you through the nuances of setting up and managing landing page experiments on paid social platforms. You will learn about the critical rules to follow, the structure of effective tests, optimal conversion duration and budget allocation.
The session will also cover data analysis techniques and criteria for graduating landing pages.
In the second part of the webinar, Pearmill will explore the use of A/B testing platforms. Discover common pitfalls to avoid in A/B testing and gain insights into analyzing A/B tests results effectively.
Videos are more engaging, more memorable, and more popular than any other type of content out there. That’s why it’s estimated that 82% of consumer traffic will come from videos by 2025.
And with videos evolving from landscape to portrait and experts promoting shorter clips, one thing remains constant – our brains LOVE videos.
So is there science behind what makes people absolutely irresistible on camera?
The answer: definitely yes.
In this jam-packed session with Stephanie Garcia, you’ll get your hands on a steal-worthy guide that uncovers the art and science to being irresistible on camera. From body language to words that convert, she’ll show you how to captivate on command so that viewers are excited and ready to take action.
Short video marketing has sweeped the nation and is the fastest way to build an online brand on social media in 2024. In this session you will learn:- What is short video marketing- Which platforms work best for your business- Content strategies that are on brand for your business- How to sell organically without paying for ads.
Mastering Local SEO for Service Businesses in the AI Era is tailored specifically for local service providers like plumbers, dentists, and others seeking to dominate their local search landscape. This session delves into leveraging AI advancements to enhance your online visibility and search rankings through the Content Factory model, designed for creating high-impact, SEO-driven content. Discover the Dollar-a-Day advertising strategy, a cost-effective approach to boost your local SEO efforts and attract more customers with minimal investment. Gain practical insights on optimizing your online presence to meet the specific needs of local service seekers, ensuring your business not only appears but stands out in local searches. This concise, action-oriented workshop is your roadmap to navigating the complexities of digital marketing in the AI age, driving more leads, conversions, and ultimately, success for your local service business.
Key Takeaways:
Embrace AI for Local SEO: Learn to harness the power of AI technologies to optimize your website and content for local search. Understand the pivotal role AI plays in analyzing search trends and consumer behavior, enabling you to tailor your SEO strategies to meet the specific demands of your target local audience. Leverage the Content Factory Model: Discover the step-by-step process of creating SEO-optimized content at scale. This approach ensures a steady stream of high-quality content that engages local customers and boosts your search rankings. Get an action guide on implementing this model, complete with templates and scheduling strategies to maintain a consistent online presence. Maximize ROI with Dollar-a-Day Advertising: Dive into the cost-effective Dollar-a-Day advertising strategy that amplifies your visibility in local searches without breaking the bank. Learn how to strategically allocate your budget across platforms to target potential local customers effectively. The session includes an action guide on setting up, monitoring, and optimizing your ad campaigns to ensure maximum impact with minimal investment.
5 big bets to drive growth in 2024 without one additional marketing dollar AND how to adapt to the biggest shifting eCommerce trend- AI.
1) Romance Your Customers - Retention
2) ‘Alternative’ Lead Gen - Advocacy
3) The Beautiful Basics - Conversion Rate Optimization
4) Land that Bottom Line - Profitability
5) Roll the Dice - New Business Models
The session includes a brief history of the evolution of search before diving into the roles technology, content, and links play in developing a powerful SEO strategy in a world of Generative AI and social search. Discover how to optimize for TikTok searches, Google's Gemini, and Search Generative Experience while developing a powerful arsenal of tools and templates to help maximize the effectiveness of your SEO initiatives.
Key Takeaways:
Understand how search engines work
Be able to find out where your users search
Know what is required for each discipline of SEO
Feel confident creating an SEO Plan
Confidently measure SEO performance
When most people in the industry talk about online or digital reputation management, what they're really saying is Google search and PPC. And it's usually reactive, left dealing with the aftermath of negative information published somewhere online. That's outdated. It leaves executives, organizations and other high-profile individuals at a high risk of a digital reputation attack that spans channels and tactics. But the tools needed to safeguard against an attack are more cybersecurity-oriented than most marketing and communications professionals can manage. Business leaders Leaders grasp the importance; 83% of executives place reputation in their top five areas of risk, yet only 23% are confident in their ability to address it. To succeed in 2024 and beyond, you need to turn online reputation on its axis and think like an attacker.
Key Takeaways:
- New framework for examining and safeguarding an online reputation
- Tools and techniques to keep you a step ahead
- Practical examples that demonstrate when to act, how to act and how to recover
Mastering Multi-Touchpoint Content Strategy: Navigate Fragmented User JourneysSearch Engine Journal
Digital platforms are constantly multiplying, and with that, user engagement is becoming more intricate and fragmented.
So how do you effectively navigate distributing and tailoring your content across these various touchpoints?
Watch this webinar as we dive into the evolving landscape of content strategy tailored for today's fragmented user journeys. Understanding how to deliver your content to your users is more crucial than ever, and we’ll provide actionable tips for navigating these intricate challenges.
You’ll learn:
- How today’s users engage with content across various channels and devices.
- The latest methodologies for identifying and addressing content gaps to keep your content strategy proactive and relevant.
- What digital shelf space is and how your content strategy needs to pivot.
With Wayne Cichanski, we’ll explore innovative strategies to map out and meet the diverse needs of your audience, ensuring every piece of content resonates and connects, regardless of where or how it is consumed.
Mastering Local SEO for Service Businesses in the AI Era is tailored specifically for local service providers like plumbers, dentists, and others seeking to dominate their local search landscape. This session delves into leveraging AI advancements to enhance your online visibility and search rankings through the Content Factory model, designed for creating high-impact, SEO-driven content. Discover the Dollar-a-Day advertising strategy, a cost-effective approach to boost your local SEO efforts and attract more customers with minimal investment. Gain practical insights on optimizing your online presence to meet the specific needs of local service seekers, ensuring your business not only appears but stands out in local searches. This concise, action-oriented workshop is your roadmap to navigating the complexities of digital marketing in the AI age, driving more leads, conversions, and ultimately, success for your local service business.
Key Takeaways:
Embrace AI for Local SEO: Learn to harness the power of AI technologies to optimize your website and content for local search. Understand the pivotal role AI plays in analyzing search trends and consumer behavior, enabling you to tailor your SEO strategies to meet the specific demands of your target local audience. Leverage the Content Factory Model: Discover the step-by-step process of creating SEO-optimized content at scale. This approach ensures a steady stream of high-quality content that engages local customers and boosts your search rankings. Get an action guide on implementing this model, complete with templates and scheduling strategies to maintain a consistent online presence. Maximize ROI with Dollar-a-Day Advertising: Dive into the cost-effective Dollar-a-Day advertising strategy that amplifies your visibility in local searches without breaking the bank. Learn how to strategically allocate your budget across platforms to target potential local customers effectively. The session includes an action guide on setting up, monitoring, and optimizing your ad campaigns to ensure maximum impact with minimal investment.
Monthly Social Media News Update May 2024Andy Lambert
TL;DR. These are the three themes that stood out to us over the course of last month.
1️⃣ Social media is becoming increasingly significant for brand discovery. Marketers are now understanding the impact of social and budgets are shifting accordingly.
2️⃣ Instagram’s new algorithm and latest guidance will help us maintain organic growth. Instagram continues to evolve, but Reels remains the most crucial tool for growth.
3️⃣ Collaboration will help us unlock growth. Who we work with will define how fast we grow. Meta continues to evolve their Creator Marketplace and now TikTok are beginning to push ‘collabs’ more too.
A.I. (artificial intelligence) platforms are popping up all the time, and many of them can and should be used to help grow your brand, increase your sales and decrease your marketing costs.In this presentation:We will review some of the best AI platforms that are available for you to use.We will interact with some of the platforms in real-time, so attendees can see how they work.We will also look at some current brands that are using AI to help them create marketing messages, saving them time and money in the process. Lastly, we will discuss the pros and cons of using AI in marketing & branding and have a lively conversation that includes comments from the audience.
Key Takeaways:
Attendees will learn about LLM platforms, like ChatGPT, and how they work, with preset examples and real time interactions with the platform. Attendees will learn about other AI platforms that are creating graphic design elements at the push of a button...pre-set examples and real-time interactions.Attendees will discuss the pros & cons of AI in marketing + branding and share their perspectives with one another. Attendees will learn about the cost savings and the time savings associated with using AI, should they choose to.
2. Many firms derive their sales and profits from
recently introduced products.
From products commercialized within the
last 5 years, best-practice firms:
Generate 48% of sales
Generate 45% of profits
3. Risk, Reward & Failure
But, the risks of product innovation are high,
significant investment is required, and the
likelihood of failure is high.
However, due to…
Shorter product life cycles
Accelerating technological advances,
…Speed & Agility is central to success.
4. JAMES QUINN ASSERTS:
Innovation tends to be:
a. Individually motivated
b. Opportunistic
c. Customer Responsive
d. Non-linear
e. Interactive
Clearly though, some new-product-development is
an outgrowth of deliberate strategies.
5. Innovations Start Out Chaotic
• Generally, innovations start out chaotic.
• As a project (product development) progresses and as
the costs go up, more formal planning and controls
come in.
• Still, flexibility must be inherent in the project.
• There are two broad categories of strategic behavior:
▫ Induced
▫ Autonomous
6. Induced Strategic Behavior
Most large companies employ induced
strategic behavior.
This is a planned form of influence upon the
workforce to come up with innovative
thinking around (say) their present product
line for their customary markets.
7. Large resource-rich companies employ
autonomous strategic activities.
This is a situation where employees are allow
to think creatively about innovation outside
of their present products. They can think
about products that they’d like to create.
8. This approach often employs a “product or
project champion” who is also referred to as an
“intrepreneur” or “entrepreneur.”
Product Champion is one who…
◦ Creates, defines or adopts an idea for
innovation
◦ Willingly assumes significant risk (loss of
prestige & even their job)
…to successfully implement the innovation.
Autonomous Strategic Behavior
9. Product Champion
A product champion is an individual who:
1. Takes on a central role in sensing a marketing
opportunity
2. Mobilizes an informal network to assess the
opportunities via their:
a. Technical feasibility
b. Financial opportunity
3. Is willing to take on risk (reputation) to bring the
project to light
10. Entrepreneurial motivation can be nurtured and
encouraged based on:
1. Availability of rewards
2. Senior managements’ encouragement & support
3. Resource availability including release time to
work on entrepreneurial projects
4. Organizational structure that promotes
entrepreneurialism by providing an administrative
mechanism that brings others into the innovative
process when needed
5. Two other influences are:
Intrinsic motivation
Work design: availability of challenging projects
11. Activation of the Strategic Decision Process
a. Induced: Manager defines the market that is in line
with the organization’s strategy
b. Autonomous: Managers define a market that
diverges from the organization’s strategy
Nature of Screening Process
a. Induced: Formal screening
b. Autonomous: Informal network that assesses new
ideas
12. Type of Innovation
a. Induced: Incremental to present products
b. Autonomous: Major – whole new product lines
Nature of Communication
a. Induced: Consistent with organizational work flow
b. Autonomous: Departs from work flow in early stages
of the decision process
13. Major Actors
a. Induced: Formal as prescribed by the organization
b. Autonomous: Informal network and furthered by a
so-called “Champion”
Decision Roles
a. Induced: Roles and responsibilities are well defined
b. Autonomous: Roles and responsibilities are loosely
defined in early stages but become more defined as
the project progresses
14. Implications for Strategy:
a. Induced: Strategic alternatives are considered
and a commitment to a particular strategy
evolves
b. Autonomous: Commitment to a particular
strategy emerges during the early stages as
the project progresses through sponsorship of
the “Product “Champion”
15. Table 12.1 7th ed
Induced vs. Autonomous Strategic Behavior:
Selected Characteristics of Marketing Strategy Formulation Process
Developed by Cool Pictures and MultiMedia Presentations
16. Senior management at 3M Company will not commit to
a project unless a “Product Champion” emerges and
will not abandon the effort unless the champion “gets
tired.”
17. According to Michael Porter:
Technological change is the great
equalizer
▪ Can erode the competitive advantage of even
the most established competitors
▪ Can propel even the smallest companies to the
forefront
18. Many of the great companies we see today grew out
of technological changes that they were able to
exploit.
Long run competitiveness depends upon how they:
Manage,
Increase, and
Exploit their technology base.
Let’s start by classifying development projects!
19. Four Types: Development
Projects
Derivative projects center on incremental product
enhancements, incremental process improvements, or
incremental changes on both dimensions.
Platform projects create design and components shared by
set of products.
Breakthrough projects establish new core products and
new core processes that differ fundamentally from previous
generation of process and product.
Research and development creates knowledge of new
materials and technologies that eventually leads to
commercial development—more like “pure” science.
20. • Products that share common platform but have different
specific features and enhancements required for different
consumer sets.
• Strategists argue that firms should move away from
planning emphases that center on single products and
focus on a family of products that share a common
platform.
• The move toward product family perspective requires
close inter-functional working relationships, long-term
technology strategy view, and multiple-year resource
commitment.
21. Disruptive Innovation
Disruptive innovation occurs when a totally
new innovative product is developed that
interrupts the way business and society
does things.
Examples: Train, automobile, telephone,
birth control pill, plastics, and computers.
Usually disruptive products start out small
but grow to overshoot the market.
22. The Disruptive Innovation Model
Performance
Time
Disruptive
Innovations
Performance that
Customers Can Utilize
or Absorb
Range of
Performance
that Customers
Can Utilize
Source: Clayton M. Christensen and Michael E. Raynor, The Innovator’s Solution: Creating and
Sustaining Successful Growth (Boston: Harvard Business School Press, 2003), p. 33.
23. Disruptive vs. Sustaining Innovation
Looking at the Disruptive Innovations model, we see
that sustaining product innovation often leads to
product developments that offer much more capacity
than the “mainstream” market needs.
Sustaining innovation is designed for the heavy user.
In computer technology, we see heavy use by the
government.
Disruptive innovation is usually simpler, but still
changes the world as we know it.
Ex: We once used pens to write until typewriters
disrupted that, then computers disrupted typewriters.
24. Low End Disruptive Situation
24
Low End Disruption: There is a market
who wants the new technology but not as
much as is available.
Low End Strategy Test:
a. There needs to be an adequate number of
customers who want a low version of the
technology (product).
b. The company must be able to create a
business model and discounted product
to meet that need profitably.
25. New-market disruptions are new
products that change the way people do
business but the market historically
lacked the resources to procure it (non-
consumption).
New-market strategy test:
a. A large number of customers are unable
to financially procure the product.
b. It is inconvenient for present customers
to use.
New-Market Disruptions
26. Salesforce.com
One way to find a disruptive idea is: “to do what
competitors want.”
A new-market disruption is a situation where there is
non-consumption. Customers wanted a sophisticated
CRM program but they were too expensive or too
difficult for most customer’s to pursue.
Salesforce.com provided a Web based, relatively
inexpensive, CRM program for businesses to use.
It resides on a centralized (virtual) computer
Easy access by everyone worldwide
Easy to use
27. The final test of innovation is how disruptive
the product is and how it affects competitors.
If it is truly a new innovation, and there are no
competitive players pursing the strategy, then
we truly have a DISRUPTIVE INNOVATION.
28. 28
Three Approaches to Creating New-Growth
Businesses
Dimensions
Targeted perform-
ance of product
or service
Targeted customers
or market
application
Effect on required
business model
(processes and
cost structure)
Sustaining
Innovations
Performance improvement
in attributes most valued by
industry’s most
demanding customers.
These improvements may
be incremental or break-
through.
The most attractive (i.e.,
profitable) customers in
mainstream markets who
will pay for improved
performance.
Improves or maintains
profit margins by
exploiting existing processes
and cost structure and
making better use of
current competitive
advantages.
Low-End
Disruptions
Performance good
enough along traditional
metrics of performance
at low end of
mainstream market.
Over-served customers in
low end of mainstream
market.
Uses new operating or
financial approach or both—
different combination of
lower gross profit margins
and higher asset utilization
can earn attractive
returns at discount
prices required to win
business at low end of
market.
New-Market
Disruptions
Lower performance in
“traditional” attributes,
but improved performance
in new attributes—typically
simplicity and convenience.
Targets non-consumption:
customers who historically
lacked money or skill
to buy and use product.
Business model must make
money at lower price per
unit sold, and at unit
production volumes that will
initially be small. Gross
margin dollars per unit sold
will be significantly lower.
Source: Clayton M. Christensen and Michael E. Raynor, The Innovator’s Solution: Creating and Sustaining Successful Growth (Boston:
Harvard Business School Press, 2003), p. 51.
Table 8.2
29. How High-Tech Innovators Win
To win in the high tech game, which experiences:
1. Stiff competition
2. Short life-cycled products
3. High velocity industry
A high tech firm needs to:
1. Stay aligned with the market
2. Must continually innovate
3. Be responsive (on schedule, on time & on target’s
needs)
4.Anticipate customer needs
30. 1. Limited Structure: Creating successful products to meet changing
customer needs requires flexibility, but successful product
innovators combine this flexibility with a few rules that are never
broken.
2. Real Time Communication and Improvisation: Improvisation
involves design and execution of actions that converge with each
other in time.
3. Experimentation – Probing into the Future: Successful product
portfolio creators did not invest in any one version of a future
product but instead used a variety of low-cost probes to create
options for the future.
4. Time Pacing: Product innovators carefully manage transitions
between current and future projects, while less successful
innovators let each project unfold according to its own schedule.
31. Patching - A New Strategy in Dynamic
Markets
Eisenhardt & Brown contend that traditional
corporate planning and resource allocation are
not effective in volatile markets.
◦ Clear-cut partitioning of business into neat
squares on the organizational chart is
obsolete.
◦ Instead, the organization needs to manage
change and quickly realign itself (patching) to
capture market opportunities faster than the
competition.
Patching is the strategic process of quickly
realigning or remapping businesses by adding,
dividing, transferring, exiting or combining
pieces to take advantage of opportunities as they
emerge in new markets.
32. To sustain new product success companies:
Make new product development a top priority
Directly involve managers and employees to make
decisions and speed up action
Because of substantial risks and/or incredible
opportunities, companies employ systematic
thinking about new product development.
33. Although definitions of “failure” is somewhat
elusive, research suggests that 40% of industrial
products fail to meet successful objectives.
Yet, new products are the life blood for
companies.
Without new (or updated) products, eventually a
company will fail!
34. Critical success factors that drive a firm’s new
product performance are:
1. Quality of the new product development
process
2. Resource commitments to new product
development
3. New product strategy
35. Top companies have a clear and
visible new product strategy.
They set aggressive new product
performance goals as their basic corporate
goal and communicate them to all
employees.
36.
37. New Product Development Process
Successful companies that employ a high-quality new
product development process give careful attention to
execution of activities and decision points. Benchmarking
characteristics include:
• Firm’s emphasis on upfront market and technical
assessments before starting the development process.
• Process featuring complete descriptions of product
concepts, product benefits and positioning to target
markets before starting the development process.
• Process includes tough project go/kill decision points.
• New product process is flexible.
38. Resource Commitments
Three main ingredients:
1. Top management commits resources
necessary to meet firm’s objectives for total
product effort.
2. R&D budgets are adequate and aligned with
stated new product objectives.
3. Necessary personnel are relieved from
other duties and assigned specifically to the
new product effort.
39. New products trigger reactions from competitors
when the:
a. New product threatens their market
b. Product is in a rapid growth market
c. Selling firm communicates the new product too
strongly
To quell competitive reaction to some degree,
companies:
1. Put into action a strong “competitor
orientation” before and during implementation
2. Promote to niche markets instead of the whole
market
Anticipating Competitive Reaction
40. Sources of New Product Ideas
Internally from:
1. Salespeople
2.Employees
3. R&D
4.Marketing Research
5.Serendipity
Externally from:
1. Channel Members
2. Competitive Moves
3. Industrial Customers
4. Ultimate Consumers
41. Since many industrial markets consist of a small
number of high volume firms, special attention
must be given to the needs of lead users.
Lead Users are small, highly influential buying
organizations that consistently adopt new
technologies earlier than most users.
Example: If an auto manufacturer wanted a new
breaking system, they might ask a racing team to
help them develop the product.
42. Lead user projects are conducted by a
cross-functional team that includes four to
six managers from marketing and technical
departments.
One member serves as the project leader.
Team members typically spend 12 to 15
hours per week on projects.
43.
44. Visit with the customer
◦ Cross-functional teams actually go out, watch and ask
buying influentials what they are doing so as to uncover:
User problems
Needs
Desires
Instead of asking customers
A. “What do you want?” they ask
B. “Where do you want to go?”
45. A.Since a marketer job is to know their
customers’ situation better than they know it
themselves, progressive companies figure out
where customers might (should) want to go
(what are the possibilities) and develop
products accordingly.
B. Recognizing the customer’s ability to
innovate, many companies have developed
tool kits and have invited customers to
design their own customized products.
46. Determinants of Success
For a successful product development
strategy to occur, a company has to
employ proper strategic factors and be
proficient at executing them.
The 4 strategic factors are…
47. Product advantage refers to
customers’ perceptions of
product superiority with respect
to quality, cost-performance
ratio, or function relative to
competitors’ products.
Marketing synergy
represents the degree of fit
between project needs and the
firm’s resources and marketing
skills.
Technical synergy comes from
the fit between project needs
and the firm’s R&D resources
and competencies.
International orientation:
New products designed and
developed to meet foreign
requirements and targeted at
world or nearest-neighbor
export markets.
48. Proficiencies
In addition to a successful strategy,
various proficiencies are important.
They include:
1. Pre-Development
2. Market Knowledge
3. Technical Knowledge
49. Pre-development proficiency involves several
tasks:
A. Initial screening
B. Preliminary market & technical assessment
C. Detailed market research study
D. Preliminary business/financial analysis
50. Marketing Proficiency
Involves understanding about:
1. What does the customer need, want and
prefer?
2. What is customer’s buying behavior?
3. What is customer’s sensitivity to price?
4. What is the size of the market?
5. What are the trends?
6. Who and what is the competition?
7. Know how to launch a well planned and
targeted campaign backed with appropriate
resources.
51. Involves having the technical experience to
bring a product from idea to reality by bringing
the product through the various technical
stages such as:
a. Product development
b. Prototype testing
c. Pilot production
d. Production start-up
e. Full production (including quality control)
52. Compression Strategy
This strategy views
development as a
predictable number of
steps (approach) that can
be compressed (task).
Experiential Strategy
This strategy acknowledges
that developing a new
product is foggy at best.
Therefore, use intuition,
learn quickly, and be flexible
to shift depending upon the
environment.
Developing products quickly contributes advantageously to
product development success. Successful companies
match the approach to the developmental task at hand.
Successful strategies include: