"Innovation + Marketing: Two Essential Tools of Modern Business" by Mike Parsons, Qualitance In 1954 Peter Drucker, famous business author, said: “…the business enterprise has two–and only two–basic functions: marketing and innovation.“ Today, 63 years later, this has never been truer. Discover how product innovation drives growth and how modern marketing practices are binding brands and customers together. Mike Parsons, Chief Innovation Officer at QUALITANCE will take you through a journey of ideas and practical advice to help you unlock the two essential weapons of modern business. Over the last 20 years, Mike has developed breakthrough products for IKEA, Virgin, Levi’s and Nike. During his time on Madison Avenue, he created award-winning campaigns for Xbox, VW, and Hasbro.

1. INNOVATION & MARKETINGESSENTIAL BUSINESS TOOLS

2. COMPANIES FAIL.

4. COMPANIES FAIL.
PRODUCTS FAIL.

7. COMPANIES FAIL.
PRODUCTS FAIL.
A LOT.

8. ONLY 12% OF THE
FORTUNE 500 HAS
SURVIVED SINCE 1955.
WE LOST 15 IN 2016.
WWW.AEI.ORG

9. 75% OF U.S. VENTURE-
BACKED START-UPS FAIL
HARVARD BUSINESS SCHOOL

10. 95% OF INNOVATION FAILS
CLAY CHRISTENSEN

11. HALF THE MONEY I SPEND
ON ADVERTISING IS
WASTED; THE TROUBLE IS
I DON'T KNOW WHICH
HALF.
JOHN WANAMAKER

12. FOR EVERY $3 SPENT ON
DIGITAL ADS, FRAUD
TAKES $1
ADAGE

13. ART + SCIENCE = RISK

14. HOW DO WE IMPROVE THE
ODDS OF SUCCESS?

15. “…THE BUSINESS ENTERPRISE
HAS TWO–AND ONLY TWO–
BASIC FUNCTIONS:
MARKETING AND
INNOVATION.”
PETER DRUCKER

16. LET’S GET CONTEXT

17. Services
80%
Industry
19%
Agriculture
1%
CIACIA
U.S. GDP BREAKDOWN BY SECTOR, 2016

18. FROM TO
MACHINES DATA
MANUFACTURING PROBLEM SOLVING
ORGANISATION INTEGRATION
STABILITY CHANGE
FACTORY WORKER KNOWLEDGE WORKER
TOP DOWN BOTTOM UP
CAPITAL KNOWLEDGE
MASS PRODUCTION AUTOMATED PRODUCTION
TEACHERS SELF-LEARNING

19. EVERYTHING ELSE
4
SLEEP
8
MEDIA
12
CIAEMARKETER
12 HOURS OF MEDIA PER DAY

20. • What's the biggest problem you face
(insert your area of focus)?
• How do you feel when using our (insert
your product/service/company)?
• How would you explain (insert your
product/service/company) to a friend?
• How do you compare (insert your
product/service/company) to other
op@ons?
11% OF THE
GLOBAL
INTERNET
POPULATION IS
BLOCKING ADS
ON THE WEB .
ADBLOCK USAGE
GREW 30%
GLOBALLY IN
2016
11%

21. MCKINSEY
PURCHASE STARTS WITH
ADVOCACY

22. • What's the biggest problem you face
(insert your area of focus)?
• How do you feel when using our (insert
your product/service/company)?
• How would you explain (insert your
product/service/company) to a friend?
• How do you compare (insert your
product/service/company) to other
op@ons?
SEQUENTIAL SCREENING
90% USE MULTIPLE
SCREENS SEQUENTIALLY
TO ACCOMPLISH A TASK
OVER TIME
SIMULTANEOUS SCREENING
77% OF TV VIEWERS USE
ANOTHER DEVICE AT THE
SAME TIME
GOOGLE MULTI-SCREEN REPORT

23. IN A WORLD BEING EATEN
BY SOFTWARE, THE ONLY
WAY FOR COMPANIES TO
THRIVE IS TO BE…

24. BE HUMAN

25. BACK TO BASICS

26. DISCOVER AND VALIDATE

27. Waterfall
Agile
Define
Build
Release
Define
Build
Release Define
Build
Release Define
Build
Release

28. IDEAS DON’T LIVE IN
POWERPOINT – THEY
BELONG IN THE HANDS OF
CUSTOMERS.

29. DIRECT EXPERIENCE:
ALLOW CUSTOMERS TO
USE AND INTERACT WITH
A PROTOTYPE

30. 778594

31. 778594

34. RECRUIT REAL
CUSTOMERS
Find people who are your
poten@al customers.
Do not recruit family and
friends as customers.
Real customers give real,
unfiltered feedback.
INSTALL A
FACILITATOR
Someone needs to run the
tes@ng experience with a
prototype.
The facilitator will help
sessions stay on track and
ensure that designers
understand the feedback.
SET THE
CONTEXT
Provide the user with a
goal or a task.
Don’t forget to explain
where they are, what @me
of day and any other
context that creates the
direct experience.
DON’T LEAD THE
WITNESS
Never sell a prototype.
In fact the less you pitch,
the beNer the feedback.
REFINE AFTER
EACH TEST
Each prototyping sprint
session should reveal new
opportuni@es.
The more you test, the
beNer the product.

35. LOW FIDELITY
A5 Card
A4 Paper
Black /White XL foam boards
Post it notes:
4-6 colours
White board markers
MIXED MEDIA
Tape
Pens & Pencils
Scissors
Ruler
String
DIGITAL
Sketch
InVision
Adobe XD
iPad
Laptop

36. A closed card sort
Participants sort items into categories you give them

38. INSPIRATION

39. SEARCHING FOR
INSIGHTS
• Discover what keeps people up at night
• Discover what brings a smile to people’s
faces
• Discover what people are missing in their
life
• Make something ten @mes beNer than
today's best op@on

40. CHALLENGE A LARGE AND
COMMON CONSTRAINT
THAT EVERYBODY AS
ACCEPTED

41. CREATIVE
CONSTRAINTS
• What's the opposite way to how everyone
currently does it?
• What if we could not include instruc@ons?
• What can we make invisible to the user?
• What if users could only use the product
for 60 seconds a day?
• How can we make the most boring part of
the product deligh^ul?
• Make a product with one feature
• Make your product like AirBnB would

42. HOW COULD THE
PRODUCT GET BETTER
THE MORE PEOPLE THAT
USE IT?

43. EVALUATE

45. ENDOWMENT EFFECT
Customers value what they have.
And they don’t like change.
When thinking about new products the “switching
costs” weigh heavier than the potential benefits.
Companies also value what they have.
They fall in love with their creations.
They become blind to the customer truth: the customer
see’s more loses than gains

46. LOW
HIGH
HOW TO AVOID A PRODUCT THAT NOBODY WANTS
AMOUNT OF BEHAVIOUR
CHANGE REQUIRED
FAIL
QUICK-FIX
HARD WORK
INNOVATION
iPHONEXIAOMI
IRIDIUM, FIRE, KIN BLACKBERRY
LOW HIGH
USER BENEFITS

47. MORE BENEFITS, LESS CHANGE
Amount of Behaviour Change Required
Time
Money
Effort
Brain Cycles
Social Deviance
My Routine
User Benefits
Simplicity
Mobility
Affordability
More personal time
Wellness
Freedom
Higher performance
Fulfilment
Impact

48. BRAIN CYCLES

49. SOCIAL
DEVIANCE

50. ROUTINE

51. A STORY WORTH SHARING

52. PEOPLE DON’T BUY WHAT
YOU DO

53. THEY ARE COMPELLED BY
HOW AND WHY

54. APPLE v. SAMSUNG
NIKE v. ADIDAS

55. 0
25
50
75
100
MARKET CAP
98.09
41.83
ADIDAS NIKE

56. KINECT EFFECT CASE

58. NIKE FIND YOUR
GREATNESS

60. HOW DO YOU DISCOVER A
STORY?

61. VALIDATE CUSTOMER
NEEDS
• Conduct a survey or interview with real
customers
• What's the biggest problem you face
(insert your area of focus)?
• How do you feel when using our (insert
your product/service/company)?
• How would you explain (insert your
product/service/company) to a friend?
• How do you compare (insert your product/
service/company) to other op@ons?

62. • a@tudes per customer group

63. CHOSE ARCHETYPE
• Use different archetypes and add color for
each.
• An archetype is an example of personality
descrip@on.
• Myers-Briggs, a popular personality
indicator, has archetypes such as the
‘Commander’ a imagina@ve and strong
willed leader. In contrast to the ‘Mediator’
a poe@c and kind personality.

65. TEST YOUR STORY
• Put the stories to the test. If you can
survey the original customers from the first
survey that's good, but not essen@al.
• Your goal is to produce a package of
different stories that were created from
validate insights. Do not guess. Be
objec@ve and write, design and crad
stories through the voice of your customer

69. Is this message appealing to you?
- NO, this image is not appealing to me
- Nothing out of the ordinary
- Yes, I’m curious to hear more about this
- YES, it resonates. I might even share via LinkedIn!
NEGATIVE RESULT POSITIVE RESULT

70. WRITE A MANIFESTO
• Write a manifesto to what, how and why
• Start with the pain of the customer
• Present what you do as the short term
answer
• Explain how you do it makes you unique
• End with a celebra@on of the posi@ve
things that happen when customers work
with you

72. THIS MORE THAN
PRODUCT AND
MARKETING

73. IT’S INNOVATION AND
STORY

74. IT’S INNOVATION AND
STORY
AS ONE

75. THE SOURCE OF
INSPIRATION IS RIGHT IN
FRONT OF YOU

76. DON’T GUESS YOUR NEXT
PRODUCT OR LAUNCH
CAMPAIGN

77. EMBRACE YOUR
CUSTOMER

78. AND DISCOVER THEIR
DEEPS NEEDS AND
MOTIVATIONS

79. CREATE A PRODUCT
WORTH SHARING

80. THANK YOU