Types of Innovation Marketing Innovation development of new marketing methods with improvement in product design or packaging product promotion or pricing Organizational Innovation ID: 1033259
Download Presentation The PPT/PDF document "Rapid Innovation Process" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
1. Rapid Innovation Process
2. Types of InnovationMarketing Innovation - development of new marketing methods with improvement in product design or packaging, product promotion or pricing. Organizational Innovation - the creation of new organizations, business practices, ways of running organizations or new organizational behavior.Product Innovation - introduction of a new good or service that is substantially improved. This might include improvements in functional characteristics, technical abilities, ease of use, or any other dimension. Process Innovation - implementation of a new or significantly improved production or delivery method. Business Model Innovation involves changing the way business is done in terms of capturing value Innovative Thinking: Six Simple Secrets by Padi Selwyn, M.AInnovation is Often Divided into Five Types:2
3. Common Struggles with InnovationInnovation efforts often not aligned with long term business strategyMost Innovation efforts are reactionary Driven by a change in the market (regulations)Inside out approach (single customer or sales driven)Technology drivenEfforts often yield incremental improvement, not breakthroughs or game changersHigh failure rate or inability to scale Is the Innovation solving a widespread problem for which value can be associatedUnderestimate the impact of corporate culture 3
4. What Drives You InnovationInnovationTechnologyPushChanges in RegulationMarket Needs Driven (Outcome Based)This is cool…We have to …. Market Driven, Critical to our growth…Expand Customer RequestOthers can use this……. Innovation4Does the Market Need It?Strategic & ProactiveWill it Satisfy a Need?Can I Differentiate?
5. Traditional Processes Most Often Result in Innovation Around the CoreSource: Straligence, adopted from Monitor, in Harvard Business Review, May 2012Create new markets, target new customer needsEnter adjacent markets, serve adjacent customersServe existing markets and customersUse existing products & assetsAdd incremental products & assetsDevelop new products & assetsWhere to PlayHow to WinDeveloping breakthroughs and inventions for markets that do not yet existOptimize existing products for existing customersExpand from existing business into “new to company” businessCOREADJACENTTRANSFORMATIONAL5
6. PMG’s Outcome Driven Innovation ProcessUncover UnmetNeeds/OutcomesDevelop Innovation StrategyAlign Team to StrategyIdentify Markets to AssessEvaluate & Group Unmet NeedsDevelop SolutionConceptsPrototypeSolutionsNarrow to Top 3 OpportunitiesHand Off toBusiness Dev.Create Marketing PlanSize Market & Revenue PotentialOutside - In Approach Narrow - Fit &Attractiveness MatrixInsideOutside 6
7. Traditional Innovation FunnelIdea Generation is Often Internally Focused…. and Commercial Success is Typically Low .Internally generated product ideas are vetted based on ???? 7RegulationsNew TechnologyCustomer Need
8. Outcome Driven Innovation FunnelTopic SelectionSegmentationNeeds AssessmentPotential Solutions Identify Solution DevelopSolution Implement SolutionNeeds are Generated from Customers…. Products and Services are Created and Vetted Based on the Amount of Value Delivered in Solving Customer Problems8
9. Outcome Driven Innovation FunnelTopic SelectionSegmentationNeeds AssessmentPotential Solutions Identify Solution DevelopSolution Implement SolutionNeeds are Generated from Customers…. Products and Services are Created and Vetted Based on the Amount of Value Delivered in Solving Customer Problems9
10. PMG’s Process can be Used in All Areas of InnovationSource: Straligence, adopted from Monitor, in Harvard Business Review, May 2012Create new markets, target new customer needsEnter adjacent markets, serve adjacent customersServe existing markets and customersUse existing products & assetsAdd incremental products & assetsDevelop new products & assetsWhere to PlayHow to WinDeveloping breakthroughs and inventions for markets that do not yet existOptimize existing products for existing customersExpand from existing business into “new to company” businessCOREADJACENTTRANSFORMATIONAL10
11. Implementing Innovation New to the companyAdjacent to current offeringsSame as current offeringsSame as presentAdjacent to CompanyNew to the companyProduct/TechnologyIntended MarketLimited sales resourcesLittle internal buy-inFew relationshipsLimited market knowledgeLonger sales cycle - not in budgetNothing to leverageLong learning curveNew technologyMust have long term viewIncreased Risk of Failure When Moving From the Core is Not Driven by Inability to Innovate, but by Underestimating Difficulties of ImplementationHand Off toBusiness Dev.DivisionalSkunk-works11
12. Success Requires a Culture of InnovationMarket Orientation for InnovationInnovation StrategyInnovation ImplementationPlanInfrastructure for InnovationWell defined innovation strategyKnow where you are goingUnderstand implicationsPlan beyond the innovation Who will sell R& D support Align to monetizeInnovation process aligned with strategy Outside - inWell defined deliverablesStrict timetableAlign organization to support innovation Executive support Operational support R&D support12