Ethographic opportuntiyanalysis2012(mullooly & delcore)

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Ethnographic Ethnographic Opportunity Analysis Opportunity Analysis 2012 2012 part 1part 1

Hank Delcore & Jim MulloolyHank Delcore & Jim Mulloolyaka aka ““TheAnthroGuysTheAnthroGuys”” @ @

www.TheAnthroGuys.comwww.TheAnthroGuys.com

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Innovation

?

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Innovation in Business Innovation in Business (Schumpeter, (Schumpeter, 1934)1934)

1. Introduction of a 1. Introduction of a new/improved new/improved goodgood

2. Introduction of a 2. Introduction of a new methodnew method of of productionproduction

3. Opening 3. Opening new market or new market or territory territory 4. Conquest of a 4. Conquest of a new sourcenew source of raw of raw

materialsmaterials 5. New type 5. New type of organizationof organization

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Innovation in Business Innovation in Business (Schumpeter, (Schumpeter, 1934)1934)

1. Introduction of a 1. Introduction of a new/improved new/improved goodgood

Sweet Chocolate

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Innovation in Business Innovation in Business (Schumpeter, (Schumpeter, 1934)1934)

2. Introduction of a 2. Introduction of a new methodnew method of of productionproduction

Henry Ford’s Assembly Line

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Innovation in Business Innovation in Business (Schumpeter, (Schumpeter, 1934)1934)

3. Opening 3. Opening new market or new market or territory territory Shushi in US

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Innovation in Business Innovation in Business (Schumpeter, (Schumpeter, 1934)1934)

4. Conquest of a 4. Conquest of a new sourcenew source of raw of raw materialsmaterials

Sugar Beets in 1870s

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Innovation in Business Innovation in Business (Schumpeter, (Schumpeter, 1934)1934)

5. New type 5. New type of organizationof organization

Japanese Automotive

Administration

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Innovation in Business Innovation in Business (Schumpeter, (Schumpeter, 1934)1934)

1. Introduction of a 1. Introduction of a new/improved new/improved goodgood

Sweet Chocolate

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Steve JobsSteve JobsMaster of

Innovation as improvement of an existing

good

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How How Personal Personal

ComputerComputers were s were UsedUsed

(1984)(1984)

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How Music How Music devices devices

were Usedwere Used(2001)(2001)

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How Smart How Smart Phones Phones

were Usedwere Used(2007)(2007)

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How Tablet How Tablet Computers Computers

were Usedwere Used(2010)(2010)

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BUTBUTApple is a Apple is a Software Software Company Company

(Steve Jobs)(Steve Jobs)

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Apple is a Software Company Apple is a Software Company ((JobsJobs))

The Macintosh Interface

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Apple is a Software Company (Jobs)

The Ipod’s Itunes Store

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Apple is a Software Company (Jobs)

The Iphone’s App Store

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Apple is a Software Company (Jobs)

The Ipad’s App Store

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How can you find these opportunities?

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Ethnographic (Inductive) Ethnographic (Inductive) Opportunity Analysis Opportunity Analysis

Deductive ApproachesDeductive Approaches– Hypothesis Hypothesis Data Collection Data Collection

AnalysisAnalysis from general to specific from general to specific

Inductive ApproachesInductive Approaches– Data Collection Data Collection Analysis Analysis

HypothesisHypothesis from specific to generalfrom specific to general

Engineering vs. Reverse Engineering

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The AnthroGuy HimselfProfessor Hank Delcore

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IntelIntel Green Homeowners Green Homeowners as Lead Adoptersas Lead Adopters

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What People Say What People Say They DoThey Doand What They Do and What They Do Are Are DifferentDifferent

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The Business Case for The Business Case for User-Driven InnovationUser-Driven Innovation Unprecedented specialization and Unprecedented specialization and

segmentationsegmentation, multiplied many times , multiplied many times over by domestic and international over by domestic and international cultural diversity.cultural diversity.

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The Value of the Use The Value of the Use CaseCase Entrepreneurs can neither assume Entrepreneurs can neither assume

that they are socially or culturally that they are socially or culturally close to users nor that they can close to users nor that they can keep up with consumer trends keep up with consumer trends themselves – unless they seek user-themselves – unless they seek user-centered insights.centered insights.

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Increased CompetitionIncreased Competition Increased competition Increased competition from emerging from emerging

economieseconomies Companies can no longer rely on the Companies can no longer rely on the

advantages of being the first to advantages of being the first to introduce new technologiesintroduce new technologies to the to the market.market.

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Democratization of Democratization of KnowledgeKnowledge The The democratization of knowledgedemocratization of knowledge, driven by , driven by

the internet and information technology in the internet and information technology in generalgeneral

Armed with lots of information and the ability Armed with lots of information and the ability to buy from companies all over the globe, to buy from companies all over the globe, consumers no longer consider the consumers no longer consider the price/quality trade-off as the sole driver of price/quality trade-off as the sole driver of choice.choice.

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Democratization of Democratization of KnowledgeKnowledge Instead, consumers increasingly consider Instead, consumers increasingly consider

how a company and its products match their how a company and its products match their own personal values, behaviors and needs.own personal values, behaviors and needs.

To get at this, successful companies must To get at this, successful companies must include users in the innovation processinclude users in the innovation process..

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Just to Stay SolventJust to Stay Solvent As Squires and Byrne put it: As Squires and Byrne put it: ““……

companies have to manufacture the right companies have to manufacture the right commodities and deliver them in the commodities and deliver them in the right way to the right consumers at least right way to the right consumers at least four out of ten times every year – just to four out of ten times every year – just to stay solventstay solvent”” (Squires and Byrne (Squires and Byrne 2002:xiv). 2002:xiv).

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Traditional R&D departments and Traditional R&D departments and entrepreneurs with their own entrepreneurs with their own views on views on ““what people wantwhat people want”” can can no longer keep up with the reality no longer keep up with the reality of rapidly evolving needs and of rapidly evolving needs and desires.desires.

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THE ASSIGNMENTTHE ASSIGNMENT

1) Conduct some sort of 1) Conduct some sort of ““inductive observationinductive observation””, ,

2) analyze your notes, then 2) analyze your notes, then 3) expand those notes into a brief 3) expand those notes into a brief

report about what you found.report about what you found.

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DESCRIPTIONDESCRIPTION– Rather than looking into a Rather than looking into a

completely innovative idea (service completely innovative idea (service or product), the goal is to or product), the goal is to 1) observe 1) observe something that already works; 2) something that already works; 2) observe it in great detail; then 3) observe it in great detail; then 3) begin to understand begin to understand it in such detail it in such detail that you can that you can 4) make concrete 4) make concrete suggestionssuggestions about improving it.  about improving it. 

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In Other WordsIn Other Words– Rather than looking for how Rather than looking for how

consumers COULD use a NEW consumers COULD use a NEW service/product, the goal is to service/product, the goal is to observe how consumers DO use a observe how consumers DO use a EXISTING service/productEXISTING service/product with the with the intention of intention of looking for opportunitieslooking for opportunities to improve or to improve or ““add valueadd value”” to that to that experience.experience.

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StepsSteps– 1. Find a routine, taken-for-granted 1. Find a routine, taken-for-granted

task/service/product,task/service/product,– 2. 2. ““Hang outHang out”” and and ““thickly describethickly describe”” it in a it in a

notebook, notebook, – 3. 3. In a one page pitchIn a one page pitch, suggest some sort , suggest some sort

of innovation that will add value. DUE: next of innovation that will add value. DUE: next Wednesday March 14 by 3:00pm in class. Wednesday March 14 by 3:00pm in class.

– The best observations will be published on The best observations will be published on our blog and presented in class on March our blog and presented in class on March 2121stst..

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Ethnographic Ethnographic Opportunity Analysis Opportunity Analysis part 1part 1

Hank Delcore & Jim MulloolyHank Delcore & Jim Mulloolyaka aka ““TheAnthroGuysTheAnthroGuys”” @ @

www.TheAnthroGuys.comwww.TheAnthroGuys.com

Thanks for your

Time