3. Innovation is quoted as first strategic priority by
general managers
(source PIMS/IMD 99)
It is a question of survival
All markets are concerned!
(fatality doesn't ’exist !!) E.g.: the milk or water
markets…
INNOVATION
4. All brands, as strong as they are, need to
evaluate
even DAVID BOWIE AND MADONNA...
5. • Market pressure (with the paradoxical equation:
innovation/profit)
1. Competitive pressure
• Social evolutions (consumers are more and more
demanding and become « consumption » experts)
• Technological advances
KEY REASONS
6. What was true yesterday is not always true
today, even less tomorrow...
7. Innovating is more and more difficult
(70% of failures, copies, speed…)
The level of requirement is always
higher
3 key words : Anticipate - Decide –
Act
as fast as possible...
INNOVATION IS A GROWING CHALLENGE
8. Product creationProduct creation
Product creation is not to be viewed in the narrow sense ofProduct creation is not to be viewed in the narrow sense of
simply giving birth to a new product—but in a much broadersimply giving birth to a new product—but in a much broader
sense—product innovation, life cycle management. Productsense—product innovation, life cycle management. Product
creation in this sense becomes a complete process by itselfcreation in this sense becomes a complete process by itself
•Finding out what customers might need / wantFinding out what customers might need / want
•Generating ideas and technologies to meetGenerating ideas and technologies to meet
such needs and wantssuch needs and wants
•Developing, realizing, and launching a productDeveloping, realizing, and launching a product
•Providing supporting servicesProviding supporting services
9. Product creationProduct creation
Product /
Technology
Strategy
Development
And
planning
Product /
Project
management
Product
support
Technology and resource development
Idea management
Intelligence
development
10. Barriers to productBarriers to product
creationcreation
1. Terrible inertia of status quo.—we’ve always
done it this way. – rule of thumb –tried and tested kind of
mind set. –change initiators are viewed with skepticism.
2. Organizational legacy.
-functional specialization (pigeon hole)
-sequential working (relay race)
-too specialization can lead to unproductively
-needless iterative loops
-heavy handed hierarchy
11. Causes for success/ failureCauses for success/ failure
•Superficial market analysis 50%--(of which 60%due delay in
distribution. And 40% due overestimation of market
resources).
•Production problems—38% (of which 50% delay from
prototype to test market and 50% die difficulty in developing
final product)
•Insufficient financial resources—7%
•Commercialization problems—5%
Failurefactors•Product fit with market needs—85%
•Product fit with internal functional strengths—62%
•Technological superiority of the product—52%
•Top management support—45%
•use of new product process—33%
•Favorable competitive environment—31%
•Structure of new product organization—15%
Success
contributors
12. The systems mind set as a possibleThe systems mind set as a possible
solutionsolution
Aims at refocusing the organization on value creation.
•Find out main things customers care about.
•Determine how well your company meets these customer
expectations both despite and relative to competition
•Know about your competitor's plans to improve their product
and services.
•Develop a strategy specific on customer satisfaction areas to
catch up, to be on par, and to excel.
•Realign your internal processes, resources, and organizational
characteristics to deliver to the customer what you have
decided. Taking due care to ensure needs of the owners and
the employees are directly addressed
•Systems thinking eliminate fragmented thinking.
13. Create a vision forCreate a vision for
The futureThe future
Assess the firm’s
future
environment
Set strategic
Directions
and priorities
Define the
scope
of
innovation
To seeding stage
Envisioning opportunities (fertilization)Envisioning opportunities (fertilization)
Creating a vision.Creating a vision.
Answering the following simple but essential questions canAnswering the following simple but essential questions can
help in creating a visionhelp in creating a vision
1.1. What do want to stand for as a corporation?What do want to stand for as a corporation?
2.2. What kind of products do we want to offer?What kind of products do we want to offer?
3.3. What kind of customers do we want to serve?What kind of customers do we want to serve?
4.4. What do we want our products to mean to our customers?What do we want our products to mean to our customers?
17. IncubationIncubation
Fund and program
project
Conduct exploratory
R&D projects
Conduct advanced
Marketing projects
Start orientation
phase
Evaluate and plan
Product projects
Technical FeasibilityFrom seeding
stage
Concept
refinement
If needed
Market validation
Product planning
Product development project
18. Product concept
Highest possible volumeLowest target
Price/cost
Low product cost
Highest specs
Within the cost
Maximum customer
value
Overturning traditional
Price performance
relationship
Systematic questioning
of cost assumptions
Shared hierarchy of
attributes and
obsession with value
Understanding of
price /volume
relationship
Rethinking customer valueRethinking customer value