“Innovate or die!” “Let’s create an innovation culture!” “Ideas, ideas, ideas!” “Great brainstorming session. Woohoo, now we’re innovators!” All organizations strive to innovate. So why do so many companies, especially B2B companies, fall short on truly innovating? Join JJ Rorie, Managing Director of product management consultancy Envision Advisory, as she dives into these common pitfalls of B2B product innovation: • Not having a clear understanding of what innovation really means • Thinking of innovation as a time-boxed activity • Mistaking “customer-ruled” for being “customer-focused” • Not knowing your customers’ customers • Trying to be something that you’re not • Ignoring product portfolio management Participants will learn: 1. The difference between B2B and B2C innovation 2. How their organization should define innovation 3. How to recognize common pitfalls and combat them

1. Product Innovation
Common Pitfalls of B2B Organizations
AIPMM Webcast Series

2. Our Speaker
JJ Rorie
Managing Director at Envision Advisory

3. AGENDA
1. What is Innovation
• Defining innovation
• Types of innovation
2. B2B Innovation Pitfalls
• Thinking of innovation as an activity
• “Customer-ruled” vs. “customer-focused”
• Not knowing your customers’ customers
• Trying to be something that you’re not
• Ignoring product portfolio management

4. WHAT IS INNOVATION?

5. WHAT IS
INNOVATION?
https://www.merriam-webster.com/dictionary/innovation

6. WHAT IS
INNOVATION?
What defines “new”?

7. The process of translating an idea or
invention into a good or service
that creates value or for which
customers will pay.
WHAT IS
INNOVATION?
Source: http://www.businessdictionary.com/definition/innovation.html

8. B2B B2C
Products sold to individuals /
consumers
Products sold to businesses,
governments, institutions
• Customers want you to help
improve their business
• More focus on features /
workflow
• Greater number of
stakeholders – more layers
of voice of customer
• Customers want you to help
improve their life
• More focus on design / user
experience
• Greater number of users –
larger sample size for voice
of customer
B2B v. B2C
INNOVATION

9. TYPES OF INNOVATION

10. DISRUPTIVE
vs.
INCREMENTAL
TYPES OF
INNOVATION

11. DISRUPTIVE
• Transforms existing markets or industries, or creates
new ones
• Results in groundbreaking products
• Riskier – “betting the farm”
TYPES OF
INNOVATION

12. DISRUPTIVE
INNOVATION
The invention of the Universal Product Code (UPC)
Source: https://en.wikipedia.org/wiki/Universal_Product_Code

13. DISRUPTIVE
INNOVATION
The first mobile phone
Source: https://en.wikipedia.org/wiki/Universal_Product_Code

14. INCREMENTAL
• Focuses on cost or feature improvements in existing
products or services
• New products that are extensions of an existing line
or for existing markets
• Less risky than disruptive
TYPES OF
INNOVATION

15. INCREMENTAL
INNOVATION
Source: Business Insider; http://www.businessinsider.com/how-oxo-reinvents-everyday-objects-2016-2 Photo: Oxo
Oxo reinvents common kitchen gadgets

16. INCREMENTAL
INNOVATION
Source: Tech Crunch https://techcrunch.com/2017/12/12/twitter-officially-launches-threads-a-new-feature-for-easily-writing-tweetstorms/
Twitter releases new features

17. OPEN
vs.
CLOSED
TYPES OF
INNOVATION

18. OPEN
• Ask external stakeholders – customers, partners, the
public – to help with innovation and idea sharing
• “All of the good ideas are not only within our walls”
• We can profit from others’ use of our Intellectual
Property (IP)
TYPES OF
INNOVATION

19. OPEN
INNOVATION
Lego Mindstorms allows customers to create designs
Source: https://www.ideaconnection.com/open-innovation-success/Lego-Success-Built-on-Open-Innovation-00258.html

20. OPEN
INNOVATION
Amazon, Berkshire, JPMorgan tackle healthcare

21. CLOSED
• We believe our people will have the best ideas
• We believe we can get these great ideas to market
first
• We should control our Intellectual Property so that
our competitors can’t profit from it
TYPES OF
INNOVATION

22. CLOSED
INNOVATION
Some firms are notoriously secretive with their innovation

23. COMMON PITFALLS

24. 5 Ignoring product portfolio management
4 Not knowing your customers’ customers
3 Being “customer-ruled” vs. “customer-focused”
2 Thinking of innovation as an activity
Trying to be something that you’re not
COMMON
PITFALLS
1

25. PITFALL #1
Trying to be something you’re not

26. 1 Trying to be something that you’re not

27. 1 Trying to be something that you’re not

28. 1 Trying to be something that you’re not
It’s ok to be you… define it, understand it, own it
Note: there are no good and bad – just be honest
and drive innovation within the context of your
organization’s “personality”
• Rely on your company’s mission
• Are you risk-averse or not?
• Are your processes bureaucratic or flexible?

29. PITFALL #2
Thinking of innovation as an activity instead
of a culture

30. 2Thinking of innovation as an activity
“We’re ideating.”
“I’m
Innovation
Man!”

31. 2Thinking of innovation as an activity
Make innovation part of your organization’s “DNA”
• Create a learning environment
• Celebrate wins and losses
• Encourage ideas from everyone

32. PITFALL #3
Believing you are customer-focused when
really you are customer-ruled

33. 3Being customer-ruled vs. customer-focused
Don’t focus all your time on specific customer requests
• Think long-term
• Strategic > features
• Learn to say “no”

34. PITFALL #4
Not truly understanding your
customers’ customers

35. 4Not knowing your customers’ customers
Help your customers solve their customers’ problems
• Conduct voice of client with end users
• Talk to your clients

36. PITFALL #5
Ignoring product portfolio management

37. 5Ignoring product portfolio management
Keep your portfolio fresh so you can focus on innovation
• Rationalization exercise – reduce the number of
products you sell, so that you can focus your
human and financial resources on the most
profitable products and new development
• Don’t be afraid to sunset… all products have a
lifespan

38. Contact the Speaker
JJ Rorie
Managing Director
Envision Advisory
jjrorie@envisionadvisory.com
954.600.9944 mobile
JJ Rorie
@JJRorie