3. CONFIDENTIAL
October 26th 2012 Slide 4
Content
Falling in love with one type of innovation
watch out!
What to include in innovation programs
open the box!
How to do it?
shape it smart!
4. CONFIDENTIAL
October 26th 2012 Slide 5
first love:
AutoSyringe, Inc.
sold to Baxter International
Corporation
second love:
DEKA
Research & Development Corporation
in medical sector
secondary love:
Helicopter
company,
sold
another secondary
love:
Teletrol. sold to Philips
big love:
Segway
another
secondary love:
First; robotics competition
What is his innovation love story?
5. CONFIDENTIAL
October 26th 2012 Slide 6
- lack of user-centric design
- lack of positioning (wide target group, high price)
- wrong marketing approach (market penetration, no
distribution network)
- lack of product ecosystem (parking, charging, taking
a plane, regulations…)
it almost failed…
“its significance is close to
the World Wide Web”
/John Doerm 2001/
business model
innovation
&
marketing
innovation
Every product has to be considered in the system no matter how big its potential may be on its own
8. CONFIDENTIAL
October 26th 2012 Slide 9
THERE
IS
MORE
Management innovation
Organizational innovation
Service innovation Business model innovation
Marketing innovation
Value chain innovation Technology innovation
Material innovation Application innovation
Partnership innovation
Resource management innovation
Customer relationship management innovation
Brand innovation Process innovation
Packaging innovation
Revenue stream innovation Product innovation
Pricing innovation
Platform innovation Experience innovation
* * *
Radical innovation Incremental innovation
Disruptive innovation
but how to choose?
9. CONFIDENTIAL
October 26th 2012 Slide 10
Goals of doing more than one type of innovation
1. Adding value to the main innovation line
2. Connecting to users and customers
3. Not missing out on important market trends
4. Not missing out on important technological
developments
5. Staying ahead of competition
6. Solving company problems and reaching the goals
complementary effect
and support for
company DNA
DNA
innovation
innovation to
connect better to
your customers
and users
innovation to be in
line with market
developments
(trends and
technologies)
innovation to
stay ahead of
competition
Innovation to
reach company
objectives and
continue
growing
11. CONFIDENTIAL
October 26th 2012 Slide 12
Innovation - response to market trends
how long can we still count on
“many cheap hands”?
12. CONFIDENTIAL
October 26th 2012 Slide 13
Example
Adidas will close its factories in China
Adidas DNA:
- product innovation & manufacturing
- strong brand
Complementary innovation:
Organizational innovation:
Manufacturing will possibly be outsourced and
local R&D centers allocated in China
Channel innovation:
Efforts (most likely) will be put in consumer
market potential of China (more retail
channels, retail experiences)
organizational
innovation
&
channel innovation
Product
Innovation
13. CONFIDENTIAL
October 26th 2012 Slide 14
Innovation – response to technological developments
3 D printing
Ubiquitous sensor networks
Robotics and automation
Artificial intelligence
Smart materials/homes/cities
14. CONFIDENTIAL
October 26th 2012 Slide 15
Example – shopping centers
Service/
experience
Innovation +
business model
innovation
a 'digital greeter' at the Bay’s flagship Toronto
store
Smart mirrors & social retailing at Macy`s in
NYC
Robots in retail warehouses - 12 min from
order to truck, Zappos & Kiva systems
a touch-screen computer on the handle of
a shopping cart & in-store wireless network
technology driven retail business
Marketing
Innovation
16. CONFIDENTIAL
October 26th 2012 Slide 17
Innovation – response to customers and users
User and customer centric approach
Innovation opportunities in the whole ecosystem of products,
services and business
17. CONFIDENTIAL
October 26th 2012 Slide 18
Example
value proposition
+
service innovation
• Renting out machinery and equipment
• Supplying consumables
• Providing logistics
• Supporting with temporary crew
• Providing condition monitoring and maintenance
services
manufacturers of packaging machinery
turn into service providers
Product
Innovation
19. CONFIDENTIAL
October 26th 2012 Slide 20
Innovation - response to competitor threats
1. Direct competition
2. Price competition
3. Substitution competition
4. Commodity trap
5. Brand competition
20. CONFIDENTIAL
October 26th 2012 Slide 21
Example
Innovation to build competitive advantage
Process
optimization -
organizational
innovation
Iconic design and
brand innovation
Market innovation
Foxonn plans to use
1 million of robots
(in 3 years)
Core
Innovation
25. CONFIDENTIAL
October 26th 2012 Slide 26
Example
Telecoms changed their DNA
- outsourcing infrastructure & service
development
- customer relationship management inhouse
Business model
& customer
relationship
management
innovation
Product
Innovation
27. CONFIDENTIAL
October 26th 2012 Slide 28
Revitalizing innovation programs
Innovation programs
that make your company
grow and DNA stronger
Innovation to
stay ahead of
competition
Innovation to
connect better to
your customers
and users
Innovation to be in
line with market
developments
(trends and
technologies)
Innovation programs that
make your position in
market and DNA stronger
Core
Innovation
28. CONFIDENTIAL
October 26th 2012 Slide 29
• watch out not to fall in love with only one type of innovation
• open the box of diverse innovation opportunities in other areas
• analyse, assess, screen and design innovation programs with more power for
growth
Revitalizing innovation programs
29. CONFIDENTIAL
October 26th 2012 Slide 30
VERHAERT MASTERS IN INNOVATION®
Headquarters
Hogenakkerhoekstraat 21
9150 Kruibeke (B)
tel +32 (0)3 250 19 00
fax +32 (0)3 254 10 08
ezine@verhaert.com
More at www.verhaert.com
VERHAERT MASTERS IN INNOVATION®
Netherlands
European Space Innovation Centre
Kapteynstraat 1
2201 BB Noordwijk (NL)
Tel: +31 (0)633 666 828
willard.vanderheijden@verhaert.com
More at www.verhaert.com
VERHAERT MASTERS IN INNOVATION®
helps companies and governments to innovate.
We design products and systems for organizations looking for new ways to provide value
for their customers.
We are a leading integrated product innovation center; creating technology platforms,
developing new products and business in parallel, hence facilitating new-growth strategies
for our clients.
Notas do Editor
innovate your innovation to keep the business growing
In recession companies focus more on organizational, business model innovation
In high economy growth time on technologies – industry level innovation
He is an inventor.. He invented and left the product for another company bring to the market and manage the business model around it
DEKA had a business model around inventing . He could continuously develop revolutionary products and quit after inventing
Segway was his first big love, he wanted to bring to market himself…
AutoSyringe, Inc. (infusion devices: wearable infusion pump, wearable infusion pump for diabetics and others);
sold that company to Baxter International Corporation
The invention gained attention even before it was unveiled in December 2001, spurred by leaked quotes from a book proposal that ran on the Inside.com news site. The proposal quoted Apple Inc. Chief Executive Officer Steve Jobs saying people will design cities around the invention and venture capitalist John Doerr comparing its significance to the World Wide Web.
Development budget: 100 m USD
Challenges:
Pricy (6,000 USD +)
Legal restrictions (NewYork)
2003: recalled all 6,000 of its transporters after a safety report found operators risk falling as batteries ran out.
2006: recalled 23,500 of its scooters because they could suddenly reverse, causing the rider to fall
http://www.bloomberg.com/news/2010-09-27/segway-company-owner-heselden-dies-in-u-k-after-driving-segway-off-cliff.html
Expectations were too high. The Segway was described as the future of transport. As an innovation it was said to be on a par with the PC or the internet. Inevitably it could not live up to this level of hype. PR exposure is generally useful but this time it was overdone.
It was a product not a solution. The product works well but it lacked a support context. Where can you park it? How do you charge it? Do you use it on roads or sidewalks? Our cities are designed for pedestrians or speedy vehicles and this was neither so it had no proper infrastructure to support it.
No clear need or target market. Who was the target market? Who really needed this? It was an appealing novelty but there was no compelling need for anyone to buy it – and it was very expensive.
It was an invention rather than an innovation. The Segway was patented and kept under wraps until its launch. There was no user feedback or iteration in the process. Its inventors were then surprised when people criticised or ridiculed the design for being ‘dorky’ rather than cool.
Regulation. The Segway fell foul of regulation in many countries where it was banned from sidewalks and roads because it did not fit any existing categories. This is a problem for a truly revolutionary product – but it was not properly anticipated.
http://innovatorium.wordpress.com/category/model/
Describing with examples different kind of innovaitons
Meaningful Marketing is all about context. Hitting consumers when it matters, promoting product value (for purchase) by adding experience value immediately (for free)
The Economist cites that 20% of all output from 3D printers is currently producing final products rather than prototypes. And it is expected that by 2020 that number will rise to more than 50%.
The department store’s test of the svelte virtual employee, whose talking is prompted by sensors in the ceiling when people approach her, is among an array of high-tech initiatives that retailers are starting to embrace to help cut costs and pump up business. N.C.-based Marketing Ad Group, which began promoting the product last summer and has leased about 70 greeters. "You might have to pay someone $10 an hour to be a greeter, while this costs just $2 to $3" an hour based on the monthly leasing cost.
Macy's Magic Fitting Room features a large-scale mirror with multi-touch technology that interacts with a multi-touch tablet and lets customers browse, shop and "try-on" the latest must-have items virtually, with the magic of style at the user's fingertips. Flip through the hottest tops, dresses, bottoms and coats from some of Macy's top designers and once complete you can send the whole experience to your Facebook page, SMS, or email, and shop all the looks in the store itself. Customers have a digital photo taken by a camera attached to the mirror to register their position and body orientation before trying on virtual apparel that is projected onto their image. In total, they’ve installed more than 1,000 bots at a dozen warehouses and are growing quickly. By the end of this year, they expect single locations to have systems with 1,000 of the machines.
Dreamed up and executed by old M.I.T. buddies, these teams of retail robots presage an automated future in which multiagent robotic systems put computer science theories into practice.
http://www.wired.com/wiredscience/2009/01/retailrobots/
So-called smart carts are another way to pitch customized deals to shoppers at or before the point of purchase. Customers can create a shopping list on the Web while they're at home, then load it up on a screen in their shopping cart while at the store. •Faster, more efficient shopping. Concierge tells shoppers where to find items, and describes complementary and alternative products, recipes, brand comparisons, product details, and a lot more.
•An enjoyable shopping experience. Consumers find what they need without wasting time searching store aisles. As well, scanning products with Concierge means there are no more line-ups when their shopping is done. the retailer and advertisers gather shopping intelligence that lets them deliver targeted ads and promotions that mean more effective inventory management, higher sales, and increased profits.
http://www.mercatustechnologies.com/solutions/
Meaningful Marketing is all about context. Hitting consumers when it matters, promoting product value (for purchase) by adding experience value immediately (for free)
it is not monolithic; consider the diversity of it;
make the understanding of it practical for all units of the company (not only marketing);
the number of customers you need depends on complexity of the product, diversity of market, product use, and the sophistication of customers;
collect the insights: what are the needs? how the needs can be satisfied? what are the priorities?
http://www.packserv.com.au/AboutUs.aspx
Meaningful Marketing is all about context. Hitting consumers when it matters, promoting product value (for purchase) by adding experience value immediately (for free)
Substitute competition – computer + skype
Dyson suffered from economic recession – cutting costs in salaries, R&D; planning to have new applications with his motor technology in automotive, aerospace
Cooper offers these “seven ingredients of a unique, superior product with real value for the customer”:
Meets customers’ needs better than competitive products.
Is a better-quality product than competitors’ (however the customer defines quality).
Has unique benefits and features for the customer.
Solves customers’ problems with competitive products.
Reduces the customer’s total in-use costs (better value-in-use).
Has highly visible benefits for users.
Is innovative or novel — the first of its kind on the market.
Meaningful Marketing is all about context. Hitting consumers when it matters, promoting product value (for purchase) by adding experience value immediately (for free)
http://www.fiercetelecom.com/story/week-research-outsourcing-gains-popularity-quad-play-competitive-driver-fra/2011-01-14
Outsourcing rises: Telecommunications service providers are increasingly turning to outsourcing as a solution to ever-increasing operating costs, a study from Infonetics Research finds. By the end of 2010, service providers had outsourced $53.5 billion worth of networking tasks to equipment vendors, 8 percent more than they outsourced in 2009. "With major outsourcing deals looming, Ericsson, Nokia Siemens Networks, Alcatel-Lucent, and Huawei may end up running three-quarters of the networks on this planet," notes Stéphane Téral, Infonetics Research's principal analyst for mobile and FMC infrastructure. News release.
Meaningful Marketing is all about context. Hitting consumers when it matters, promoting product value (for purchase) by adding experience value immediately (for free)