Going Beyond Innovation: How Companies Must Use "Market-Driven" Principles to Compete & Grow (And Transform a Country)

Going Beyond Innovation
How Companies Must Use "Market-Driven" Principles to
Compete & Grow (And Transform a Country)

Tom Evans
Lûcrum Marketing
@compellingmktr

Copyright © 2012, Lûcrum Marketing, All Rights Reserved

Where Are Companies & Countries Investing?

Technical Skills
Economic Growth
Quality Standards Productivity
Global
Management/Leadership Competitive Products
Competitiveness
Innovation Methods


Understanding Definitions

• Product
• Quality
• Innovation


Product

• A "thing produced by labor or effort" or the "result of an act
or a process",

http://en.wikipedia.org/wiki/Product_(business)


Quality

• A product or process that is reliable, and that performs its
intended function is said to be a quality product.
• Reducing the variation around the target

http://www.qualitydigest.com/html/qualitydef.html


Innovation

• The introduction of something new.
• A new idea, method or device.
• Creativity: (1) the ability to make or bring into existence
something new; (2) having the quality of being able to
create rather than imitate
• Invention: something invented: as (1) a product of the
imagination; (2) a device, contrivance, or process
originated after study and experiment.

http://www.merriam-webster.com/dictionary


Going Beyond

• product to PRODUCT
• quality to QUALITY
• innovation to INNOVATION


Going Beyond – Why?

• Today, the Institute for Competitiveness & Prosperity
released a report titled Canada’s Innovation Imperative. In
it, we conclude that public innovation policy is not working
largely because our governments focus on driving
invention, not innovation.

http://www.thestar.com/opinion/editorialopinion/article/1000453--key-to-productivity-is-innovation-not-invention>


PRODUCT

• A product is anything that can be offered to a market that
might satisfy a want or need.

http://en.wikipedia.org/wiki/Product_(business)


QUALITY

• Quality is the ongoing process of building and sustaining
relationships by assessing, anticipating, and fulfilling
stated and implied needs.
• Quality is the customers' perception of the value of the
suppliers' work output.
• The degree to which something meets or exceeds the
expectations of its consumers.

http://www.qualitydigest.com/html/qualitydef.html


INNOVATION

• Innovation is the creation of better or more effective
products, processes, services, technologies, or ideas that
are accepted by markets, governments, and society.

http://en.wikipedia.org/wiki/Innovation


What’s The Difference?

• Product Orientation - A business approach or
philosophy in which whatever a company makes or
supplies is the focus of the management's attention.
• Market Orientation - A business approach or philosophy
that focuses on identifying and meeting the stated or
hidden needs or wants of customers.

http://www.businessdictionary.com/


Innovation Value Chain

Harvard Business Review, June 2007, The Innovation Value Chain
by Morten Hansen & Julian Birkinshaw

Key Components - Innovation Value Chain


Idea Generation

• Market Problem: The root of Innovation begins with
Market Problems and Market Needs that need to be
solved. We must discover and understand these before
we can apply creativity and invention to solving them.
• Concept Generation (Creativity & Invention): Create
concepts (ideas) that lead to a better or more effective
product, process, service, technology or idea to address
the market problem or market need.


Idea Conversion (1)

• Evaluate & Select: Evaluate and Select those concepts
(ideas) with the greatest potential for success.
• Market Strategy: This is the key decision that drives the
development of the solution, the business model and the
marketing and sales activities. This includes defining the
best target markets and how the solution is to be
positioned in the market.
• Define & Design: Define the product, process, service,
technology or idea in enough detail that any risks can be
determined and the cost of development and delivery can
be defined.

Idea Conversion (2)

• Business Model: Determine the pricing model, delivery
mechanism and the cost to sell and deliver to ensure the
potential of profitability.
• Business Case: Validate that this is a worthy market
opportunity and approve funding for the investment.
• Develop: Fully develop the product, process, service,
technology and idea such that is can be introduced to the
market.


Idea Diffusion

• Communicate Value: Use marketing and sales to
communicate to the market why they should solve their
problem or need with your solution.
• Effectively Deliver: Efficiently and effectively deliver the
product, process, service, technology or idea with
appropriate quality.


Contributions to Innovation Value Chain

Contributions to the Innovation Value Chain
Market Concept Evaluate & Market Define & Business Communicate Effectively
Develop
Problem Generation Select Strategy Design Model Value Deliver

Quality Standards
X X X
Innovation Methods
(Creativity & Invention) X X X
Product Management
X X X X X X X X


How Do We Go Beyond?

The aim of marketing is to know and understand the
customer so well that the product or service fits him and
sells itself.
Peter Drucker

Product Management

What is Product Management?

• Creating and sustaining value throughout the entire
product life cycle (Greg Geracie)
• Discover & validate valuable market problems.
• Define the right solution to solve market problems.
• Justify the investment in the market opportunity.
• Define a clear market strategy that leads to a competitive
advantage.
• Communicate to the market how the solution solves the
problem or need and why they should buy the solution.

Product Management Contribution to
Innovation Value Chain


Investing in Product Management

• The Singapore government has set aside S$46 million
(US$36.4 million) for an initiative called Infocomm Industry
Productivity Roadmap.
• Train professionals with specialised skills such as product
management to support the transformed business models.

http://www.mis-asia.com/resource/industries/singapore-rolls-out-programme-to-transform-local-infocomm-players


Conclusion

• Innovation is a key investment for countries and
companies.
• Innovation contributes to productivity, competitive
products, growth and creating a competitive advantage.
• Companies (& Countries) must invest in all parts of the
Innovation Value Chain to achieve the benefits of
Innovation. (innovation v. INNOVATION)
• The Market-Driven Principles of Product Management are
a major contributor to the Innovation Value Chain.


Thank You!

Tom Evans
Lûcrum Marketing
tevans@lucrum-marketing.com
+1.512.961.5267
@compellingmktr


Going Beyond Innovation: How Companies Must Use "Market-Driven" Principles to Compete & Grow (And Transform a Country)

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