Upload
tksabarwal-sabarwal
View
10
Download
0
Tags:
Embed Size (px)
Citation preview
Innovation is quoted as first strategic priority by general managers(source PIMS/IMD 99)
It is a question of survivalAll markets are concerned!(fatality doesn't ’exist !!) E.g.: the milk or water markets…
INNOVATION
• Market pressure (with the paradoxical equation: innovation/profit)
1. Competitive pressure• Social evolutions (consumers are more and more
demanding and become « consumption » experts)• Technological advances
KEY REASONS
Innovating is more and more difficult(70% of failures, copies, speed…)The level of requirement is always higher3 key words : Anticipate - Decide – Act as fast as possible...
INNOVATION IS A GROWING CHALLENGE
Product creationProduct creation
Product creation is not to be viewed in the narrow sense of Product creation is not to be viewed in the narrow sense of simply giving birth to a new product—but in a much broader simply giving birth to a new product—but in a much broader sense—product innovation, life cycle management. Product sense—product innovation, life cycle management. Product creation in this sense becomes a complete process by itselfcreation in this sense becomes a complete process by itself
•Finding out what customers might need / wantFinding out what customers might need / want•Generating ideas and technologies to meet Generating ideas and technologies to meet such needs and wantssuch needs and wants•Developing, realizing, and launching a productDeveloping, realizing, and launching a product•Providing supporting servicesProviding supporting services
Product creationProduct creation
Product /TechnologyStrategy
DevelopmentAnd
planning
Product /Project
management
Product support
Technology and resource development
Idea management
Inte
llige
nce
deve
lopm
ent
Barriers to product Barriers to product creation creation
1. Terrible inertia of status quo.—we’ve always done it this way. – rule of thumb –tried and tested kind of mind set. –change initiators are viewed with skepticism.
2. Organizational legacy.-functional specialization (pigeon hole)-sequential working (relay race)-too specialization can lead to unproductively-needless iterative loops-heavy handed hierarchy
Causes for success/ failureCauses for success/ failure
•Superficial market analysis 50%--(of which 60%due delay in distribution. And 40% due overestimation of market resources). •Production problems—38% (of which 50% delay from prototype to test market and 50% die difficulty in developing final product)•Insufficient financial resources—7%•Commercialization problems—5%
Failu
re f
acto
rs•Product fit with market needs—85%•Product fit with internal functional strengths—62%•Technological superiority of the product—52%•Top management support—45%•use of new product process—33%•Favorable competitive environment—31%•Structure of new product organization—15%
Succ
ess
cont
ribu
tors
The systems mind set as a possible The systems mind set as a possible solutionsolution
Aims at refocusing the organization on value creation.•Find out main things customers care about.
•Determine how well your company meets these customer expectations both despite and relative to competition
•Know about your competitor's plans to improve their product and services.
•Develop a strategy specific on customer satisfaction areas to catch up, to be on par, and to excel.
•Realign your internal processes, resources, and organizational characteristics to deliver to the customer what you have decided. Taking due care to ensure needs of the owners and the employees are directly addressed
•Systems thinking eliminate fragmented thinking.
Create a vision forCreate a vision forThe futureThe future
Assess the firm’s future
environment
Set strategic Directions
and priorities
Define the scope
of innovation
To seeding stage
Envisioning opportunities (fertilization)Envisioning opportunities (fertilization)
Creating a vision.Creating a vision.
Answering the following simple but essential questions can Answering the following simple but essential questions can help in creating a visionhelp in creating a vision
1.1. What do want to stand for as a corporation?What do want to stand for as a corporation?
2.2. What kind of products do we want to offer?What kind of products do we want to offer?
3.3. What kind of customers do we want to serve?What kind of customers do we want to serve?
4.4. What do we want our products to mean to our customers?What do we want our products to mean to our customers?
opportunistic
Customer segments
needsbenefitsfunction
sP.conept
Priority 2
Priority 1Priority 3
opportunistic
rejected
Uncharted (on hold)
Mapping priority innovation areasMapping priority innovation areas
oppo
rtun
itie
s
Market
Technologies
Competitors
Identifying opportunities Identifying opportunities
•Fast growing segments
•New trade/consumer groups
•New components,
• materials
•New processes,
•standards
• unmet needs
•New emerging needs
•Scope & focus
•Weaknesses / gaps
•Substitution products
•Emerging competitors
Generate ideas
Collect ideas
Screen ideas Enrich ideas Evaluateideas
Rank ideas
To incubation stage
From fertilization stage
seedingseeding
Incubation Incubation
Fund and programproject
Conduct exploratoryR&D projects
Conduct advancedMarketing projects
Start orientation phase
Evaluate and plan Product projects
Technical Feasibility From seeding stage
Concept refinement
If needed
Market validation
Product planning
Product development project
Product concept
Highest possible volumeLowest targetPrice/cost
Low product costHighest specsWithin the cost
Maximum customer value
Overturning traditional Price performance
relationship
Systematic questioning of cost assumptions
Shared hierarchy of attributes and
obsession with value
Understanding of price /volume relationship
Rethinking customer valueRethinking customer value