APPM2MARKETINGINNOVA - Knowledge

Marketing & Innovation

Session 01:
Introduction to Innovation
Management
Marcos LIMA, PhD

Pôle Universitaire Léonard de Vinci
marcos.lima@devinci.fr

Part 1

Course
Introduction

Knowledge Management,
Innovation and New Products
 How

are these concepts
related?

Do we

Business Model
Positioning
Process
Marketing Mix

Market
Results

Innovation

Knowledge
Management

Technology

New Products
& Services

have an
innovatio
n
strategy?

Do we have an
innovative
Organization?

Targeted
Segments

Scope of This Course


Session 1
 Introduction to Innovation
Management
 Presentation of the “Innovation
Project Proposal” Challenge

 Preparing the Scaglia Case Study
1/2



Session 2
 Individual Mid-term Quiz (60
minutes)
 Business Model Canvas
 Preparing the Scaglia Case Study
2/2



Session 3
 Presenting the Scaglia Case (10

Our Main Textbook
http://www.businessmodelgeneration.com/book

My Expectations
 DREAM:

Buy the textbook and
read it thoroughly
 NICE: download the initial 72
pages (for free!)
and read them right after
the class!
 MUST: prepare and present the
Scaglia case
submit an (individual)
Innovation Project

Your first group assignment:
Discuss Your Expectations
A

good course…

 should be…
 should have…
 should NOT be…
 should NOT have…

Brainstorming


Should:
 Interactive
 Comprehensive
 Share different
opinions
 Adaptable
 Many examples
 Fun



Should NOT:

 Quiz
 Exam
 Just listening and
falling asleep
 Conflict
 Having a long day
from 9 to 6
 Not too formal
 Forget the break

Case Presentation :
Evaluation Criteria
VISUAL AID
(2 point):

DELIVERY
(3 point):

Simple, legible, organized logically, important findings stand out

Poised, well-rehearsed, good eye contact, no distracting gestures or mannerisms, not
too fast or slow, spoke clearly, stayed within time limit, used appropriate language, did
not read speech, did not turn back on audience when using visual aids

PERSUASIVENESS
(5 points)

Objective, well structured, clear, realistic, seductive, prioritized and highlighted most
relevant information

THOUGHTFULNESS
(5 points)

Critical thinking (capacity to analyze and synthesize), creative thinking (capacity to adapt
existing concepts / create new ideas).

Innovation Project Proposal


https://docs.google.com/forms

/d/1zy0KP1vVCuW3AaNV_aKO7FZWYY0fOjtpOJvI8iAECOI/viewform

Main Sources
 Books
 Osterwalder, “Business
Model Generation”
 Tidd & Bessant, “Managing
Innovation: Integrating
Technological, Market &
Organizational Change”,
Wiley 2009
 Trott, “Innovation
Management & New Product
Development”, Prentice Hall,
2008
 Podcasts
 Businessweek Innovation

Learning from each other…
What is a SHARED

SYNTHESIS?




At any moment during the
class…
•





The lecturer assigns each pair
of individuals a fragment
(usually 1 paragraph) of the
text that will be discussed in
class.

After reading the fragment,

discuss in pairs the main
messages / ideas
After 5 minutes of

Questions?

Part 2

Introduction:
Understanding
Innovation

What is Innovation?
 Let’s

brainstorm!

 Let’s

Something new

brainstorm!
Diffusion of an invention
 When it works it
creates
lots of
Changing behaviors and
habits
value
Social change
 It’s not always
It the beginning of the based
end ofon invention
something older
 A new need in people’s minds
 Creation of the blue ocean scenario






What is Innovation?
 Which

of these is NOT an
innovation? Why?

a) Nintendo Wii

b) Banana Peeler

c) Apple’s iPhone

d) Self-Service

A Few Definitions
 Innovation

is…

 “The introduction of
• new goods (…),
• new methods of production (…),
• the opening of new markets
(…),
• the conquest of new sources of
supply (…)
• and the carrying out of a new
organization of any industry”
(Joseph Schumpeter)

A Few Definitions
 Innovation

is…

 “the process of turning
opportunity into new ideas and of
putting these into widely used
practice” (Tidd & Bessant, 2009)
 “the management of all the
activities involved in the process
of idea generation, technology
development, manufacturing and
marketing of a new (or improved)
product[/service]” (Trott, 2008)
 “not just the conception of a new

A Few Questions
Is an unsuccessful new
product an innovation?
 Is the successful
introduction of an old
product in a new market
an innovation?
 Does all innovation involve
new technology?
 Xerox created the first
computer with a Graphic
User Interface. Steve Jobs


A Visual Definition

These two variables
explain the critical
role of
MARKETING in the
innovation process

Innovative in Different Ways
Innovative
Chief
Executive

Close
cooperation
w/ suppliers

Use of
external tech
sources

Scientific
freedom of
employees

Design

Speed of
product
development

BusinessWeek’s Most
Innovative Companies

Innovation’s Economic Relevance
 Nikolai

Kondratieff / Joseph
Schumpeter
 “virtually all of the economic
growth that has occurred since the
eighteenth century is ultimately
attributable to innovation”
 Schumpeter’s “Creative
Destruction”

Types of Innovation
 Radical
Incremental

 What
New to
we
the world
already do,
but better

Types of Innovation
 Product / Service Innovation
 Innovate in WHAT we do
 Process Innovation
 Innovate in HOW we do it
 Paradigm

/ Business Model
Innovation
 Innovate in HOW we make money

 Position Innovation
 Innovate in marketing mix and strategy
WHERE, WHO, HOW MUCH

Types of Innovation
 Tidd’s

4Ps

 Can you find
at least
one example
of each type
of innovation?

Disruptive Innovation
Technology

 Incremental

 What we
already do,
but better
Market Status Quo
 Sustaining

 Rules of the
game
remain the
same

 Radical

 New to the
world

 Disruptive

 Game Changer
for
Market or
Industry


Disruptive Innovations

Disruptive Innovations
http://www.youtube.com/watch?v=DaKgMcFP4Mo

Christensen’s Lecture


A few other examples

Christensen’s Lecture


A few other examples

Christensen’s Lecture


A few other examples

Text for Discussion
 Say

no to innovation-in-general

http://blogs.hbr.org/2014/01/say-no-to-innovation-in-general/

Fragmented Synthesis
 Group

Assignments

1. I had just … leaving the discussion
disappointed.
2. Yes, all of the panelists … different in
nature.
3. Without differentiating … they’re
both baseball.
4. In the research world… …investment
decisions.
5. It’s easy to poke fun… … what the
word means.

Evolution of Innovation Models
 Linear

Models

1950/60s – Technology Push
Research &
Development

Manufacturing

Marketing

1970s – Market Pull
Marketing

Research &
Development

Manufacturing

Evolution of Innovation Models
 Simultaneous

Coupling Model

1980s
Manufacturing

Marketing

Research &
Development

Evolution of Innovation Models
 Interactive

Latest in science & technology

1990s

Idea

Market
Pull

Model
Advances in society

R&D

Manufacturing

Needs in society
and the marketplace

Marketing

Technology
Push

Commercial
Product

Evolution of Innovation Models
 Open

Innovation Model

 Emphasis on Business Model
innovation as driver

2000s

 Approaches

to
New Product
Development:
 Stage Gate Process
 Lead User Method
 Design Thinking and
Lean StartUP

Decision Making in the
Innovation Process
 The

Innovation Funnel
Market
Knowle
d

ge

dge
e
l
w
o
n
ical K
g
o
l
o
n
Tech

Decision Making in the
Innovation Process
 Stage-Gate

Decision Process

Preliminary
Investigation
Business
Opportunities
Product/Process
Development

Pilot Testing

Launch

Decision Making in the
Innovation Process

http://www.forth-innovation.com

The FORTH Method

http://www.forth-innovation.com

The FORTH Method

http://www.youtube.com/watch?v=L4aUUCuj3j8

Eric Von Hippel’s
Lead Users Method

Lead Users
 Definition
 Method : An accurately forecasting
market opportunity by tapping the
expertise base of ‘lead users’
 Lead User
• The people whose experience are ahead of the
market segment.
• They may lead in either target or analogous
market.
• They may be involved with just one or more
attributes of the problems users met.

 Purpose
 unearth product development

First device used in field
developed and built by:
Innovations
Affecting
Gas
Chromatograp
hy
Nuclear
Magnetic
Resonance
Spectrometry
Ultraviolet
Spectrophoto
metry
Transmission

%
User
83%

User

Mfg.

10

2

80%

12

3

100%

6

0

72%

44

17

The World Wide Web
– A Lead User Innovation
 Tim

Berners-

Lee
 “it was something
I needed in my
work.”
 Result?
• WWW

Other Examples of Important
Consumer Product Innovations
Category

Example

Health Products

Gatorade

Personal Care

Protein-base Shampoo
Feminine Hygiene

Sports Equipment

Mountain Bike
Mountain Climbing-Piton

Apparel

Sports Bra

Food

Chocolate Milk
Graham Cracker Crust

Office

White-out Liquid

Computer
Application
Software

Electronic Mail
Desk Top Publishing

Lead Users Method at 3M
 3M

/ MIT
Video

Lead Users Method at 3M
 Advantage:
 richer and more reliable information
 better products and service concepts
 acceleration of the product and service
development process
 Necessary Elements:
 supportive management
 a cross-disciplinary team of high skilled people
 an understanding of the principles of Lead
User research
 Compose:
 4-6 people from marketing and technical
department

Lead User process
Stage 1
Project Planning
Stage 2
Trends/Needs Identification
Stage 3
Preliminary Concept Generation
Stage 4
Final Concept Generation

Design Thinking & Lean Startup
 Case:

IDEO
Shopping Cart
 How would you make
this product better?

 With

a colleague:

 Determine one unmet
need
 Discuss how to solve it
 You will be asked to
share your solution in

Design Thinking
 Launch

your idea before it is

ready

https://dschool.stanford.edu/groups/k12/wiki/17cff/Steps_in_a_Design_Thinking_Process.html

Alternative Approach
 Launch

your idea before it is

ready

http://blogs.hbr.org/2012/08/launch-your-next-idea-before-i/

Lean Startup
 Principles

 Don’t waste
time
designing
solutions
nobody wants
 Don’t assume
you know the
solution or
the problem:
experiment!

Myths about Innovation
 Innovation

is not

simply…
 Having strong R&D
capability
 The province of
specialists
 Understanding and
meeting customer
needs

Myths about Innovation
 Innovation

is not

simply…
 Only about
breakthrough
changes
 Only internally
generated
 Only externally
generated

Good Luck!

Marcos Lima

marcos.cerqueira_lima@devinci.fr