Recommandé
Contenu connexe
Similaire à Translating innovation into profit innovation day 2009
Similaire à Translating innovation into profit innovation day 2009 (9)
Dernier
Dernier (20)
Translating innovation into profit innovation day 2009
- 1. Translating innovation into profit Using technology to overcome difficult market conditions Innovation Day 2009 Duncan Smith 20 October 2009
- 2. Innovation Creativity: The generation of novel and useful ideas Innovation: Making money out of creativity Many ways of being innovative, for example: – Business model innovation – Service innovation – Brand innovation – Technology led innovation 2
- 3. Translating innovation into profit Agenda: Using technology to… 1 Resist your product becoming a commodity 2 Create a new market with existing R&D output 3 Dramatically shift product price point 4 Radically differentiate your product 3
- 4. Fighting commoditisation: LauraStar Irons – a commodity 4
- 5. Fighting commoditisation: LauraStar Ironing science Heat the cloth, flatten the cloth, cool the cloth down 1986 – World’s first ironing ‘system’ patented by LauraStar Separate boiler for 3.5 bar, 160°C steam – Less frequent refill Steam delivered through ‘mono-tube’ Press button for steam on forward stroke – HEAT Release button on backward stroke – FLATTEN Fan blows through board – COOLS Cuts ironing time in half – hence a premium product 5
- 6. Fighting commoditisation: LauraStar Increasing competition with similar performance 6
- 7. Fighting commoditisation: LauraStar How could Laurastar stay ahead? Opportunity for improvement Press button for steam on forward stroke – HEAT Release button on backward stroke – FLATTEN Steam on automatically with forward stroke Steam off automatically when left alone or backwards Steam off when picked up 7
- 8. Fighting commoditisation: LauraStar How to detect iron motion and direction relative to a board (LauraStar iron) Relative movement Relative movement between Movement of iron between iron & board iron, board & other sensor independent of board Sensor in board Sensor in iron Other sensor Backward step - Physical contact Non-contact tried before unsuccessfully Not workable - too complex Undesirable element - Ball Switch Optical IR ‘map’ Vision system risk notable - needs solution correlator of board aimed at iron/ board Loads placed Time of Accelerometer Triangulation Air pressure/ Differential on handle flight flow acting non-contact on iron moisture Route sensor eventually Strain Sliding chosen gauges switch Handle Soleplate ‘Draw’ Temp profile Pressure Robot Scanning Capacitive Dielectric Electrostatic Inductive IR proximity Track wire sensors in sensor arm laser coupling absorption field pattern pick-up/ sensor radioactive sensor board array Magnetised iron source 8
- 9. Fighting commoditisation: LauraStar 18-month project yielded world’s most advanced ironing system Steam delivered in 1/1000th of a second (from pushing iron) Self-calibrating & correcting over time 9
- 10. Fighting commoditisation: LauraStar Jan Beekman, LauraStar’s chief operating officer… “Based on market surveys and inside market knowledge, we estimated that ca. 30% of our products sold would be with the intuitive iron. In reality we note that in the last 12 months almost every second product sold has been the intuitive iron.” 10
- 11. Translating innovation into profit Agenda: Using technology to… 1 Resist your product becoming a commodity 2 Create a new market with existing R&D output 3 Dramatically shift product price point 4 Radically differentiate your product 11
- 12. Using existing R&D output: SK-II In 1987 the Montreal Protocol banned the use of chlorofluorocarbons (CFCs) as aerosol propellants Caused concern for P&G In early 1990’s P&G licensed ‘Electrodyn’ spray technology from ICI 12
- 13. Using existing R&D output: SK-II Electrodyn? ++ + + + + + + + + + + +++ + + + + + + + + +++ + + + ++ +++ ++ ++ + + + Preferential deposition Even coverage Uniform dispersion (even under leaves) 13
- 14. Using existing R&D output: SK-II Too expensive for general aerosol use So it sat on the shelf…. …until Cambridge Consultants were asked to identify other potential applications for the technology in P&G’s business Nasal spray Foundation spray 14
- 15. Using existing R&D output: SK-II Strong lead application emerged Feature Benefit Low flow rate achievable Local application preferred, from portable device where low flow rate an advantage Can’t feel liquid application Use in sensitive areas? Uniform deposition Ideal for even colour depth Earth return path needed Hand-held device favoured Preferential deposition on No over-spray earthed surface Semi-conducting fluid required Oil based product ideal Device likely to be relatively Need high value product expensive (> $5) No current high performing Very high performance deposition technique 15
- 16. Using existing R&D output: SK-II SK-II Air Touch Foundation spray 16
- 17. Using existing R&D output: SK-II SK-II Air Touch Foundation spray Charged droplets disperse evenly on face – Avoid non-conducting media – hair or clothing Device retails for $150 – Twin pack (2x 5ml) retails for $90 – 5ml lasts approx. 3 months 17
- 18. Using existing R&D output: SK-II SK-II Air Touch Foundation spray “Today the world wide SK-II cosmetic business is worth over $400 million in sales. The Air Touch foundation product was a critical initiative in this business whose objective is to meet the needs of the highly discerning cosmetic consumer”. Rowena Pullan, Director Research & Development, Global Personal Healthcare, P&G 18
- 19. Translating innovation into profit Agenda: Using technology to… 1 Resist your product becoming a commodity 2 Create a new market with existing R&D output 3 Dramatically shift product price point 4 Radically differentiate your product 19
- 20. Radically changing the product price point: Iona Radio Internet radio – the “next generation of radio” Many thousands of stations - local radio wherever you are “listen again” content available on demand BUT Mainly tied to the PC – standalone internet radio products were expensive (~$300) Products were “techy” network devices, not targeted at average radio listeners Opportunity existed for a low cost, simple to use radio – connected anywhere in the world there was an internet connection 20
- 21. Radically changing the product price point: Iona Radio Our client CSR 2” 21
- 22. Radically changing the product price point: Iona Radio 22
- 23. Radically changing the product price point: Iona Radio 23
- 24. Radically changing the product price point: Iona Radio 24
- 25. Radically changing the product price point: Iona Radio RadioPro: From concept to platform launch in 10 months “RadioPro is a breakthrough design that enables our customers to penetrate this market quickly, at lower risk and at low- cost to the consumer. Tracy Hopkins, CSR, Vice President, Consumer 25
- 26. Radically changing the product price point: Iona Radio Cube Radio “At last, here was a way to make internet radio fun, and to turn it into a truly novel consumer product with mass appeal.” Kevin Taylor, e-commerce and Marketing Director, Armour Group 26
- 27. Translating innovation into profit Agenda: Using technology to… 1 Resist your product becoming a commodity 2 Create a new market with existing R&D output 3 Dramatically shift product price point 4 Radically differentiate your product 27
- 28. Radical product differentiation: Round tea bag A highly competitive market 28
- 29. Radical product differentiation: Round tea bag Market intelligence All the brands had high quality products – Blanket advertising – Shoppers had tried them all.. – ...couldn’t remember which one last… – ...bought the one on offer Lyons Tetley thought a different form factor may help – how about a round bag? – Couldn’t approach IMA (bag manufacturer) – Wouldn’t do confidential or exclusive deal – Approached Cambridge Consultants 29
- 30. Radical product differentiation: Round tea bag Secrecy paramount ‘Need-to-know’ basis within Cambridge Consultants AND at Lyons Tetley – Machines in cordoned off area – Headed paper/envelopes banned – Assumed names for CC staff How hard can it be? Many engineering challenges – Heat sealing and alignment – Cutting 30
- 31. Radical product differentiation: Round tea bag Many engineering challenges Heat sealing and alignment at 1200 bags per minute on 2 lanes Lack of concentricity spoils visual appeal 31
- 32. Radical product differentiation: Round tea bag Many engineering challenges Cutting – square bag is easy ? High quality D2 tool steel Optimised hardening process Development project saw tool life extended from 20 hours to >300 hours between re-grinds 32
- 33. Radical product differentiation: Round tea bag The improved brand recognition generated a huge return on investment Converted more than 50 machines worldwide – For approximately $2.5M including the development contract Lyons Tetley increased market share by 30% – Moved to number 1 in the UK Tetley PG Tips Typhoo/ Fresh brew 33
- 34. Summary There are many potential courses of action in turbulent market conditions 34
- 35. Summary There are many potential courses of action in turbulent market conditions Technological innovation, combined with market insight, can provide a spectacular return on investment, a protectable position and a manageable level of risk. 35
- 36. Contact details: Cambridge Consultants Ltd Cambridge Consultants Inc Science Park, Milton Road 101 Main Street Cambridge, CB4 0DW Cambridge MA 02142 England USA Tel: +44(0)1223 420024 Tel: +1 617 532 4700 Fax: +44(0)1223 423373 Fax: +1 617 737 9889 Registered No. 1036298 England info@CambridgeConsultants.com www.CambridgeConsultants.com © 2009 Cambridge Consultants Ltd, Cambridge Consultants Inc. All rights reserved. 36