Contenu connexe Similaire à Product Innovation (20) Plus de Teaching Excellence (10) Product Innovation2. Learning Objectives
I. What is an innovation?
II. Why the case for innovation is even stronger today?
III. Product innovation
i. Explain why some product innovations are unsuccessful.
ii. Examine the process of product innovation.
iii. New Product Development (NPD) framework.
iv. Evaluate the merits of NPD framework.
IV. Why some innovations are popular/unpopular?
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4. A new idea, practice, process,
product or service that benefits
an individual, group or society.
West, M.A., Farr, J.L. (1990), "Innovation at work", in West, M.A., Farr, J.L. (Eds),Innovation and
Creativity at Work: Psychological and Organizational Strategies, Wiley, Chichester, pp.3-13
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5. novelty
Does it suggest
is a necessary attribute of innovation?
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6. When …and
new to who?
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7. …to the community that
adopts the “innovation” even
though it had long existed?
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8. Is
innovation
Invention
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13. Electronic
smartcard
(replaces paper
tickets) for
boarding public
transports in
London.
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14. Process innovations
New ways to achieve an
existing or a new goal.
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15. Finding new
ways to reduce costs,
speed up check-ins,
eliminate delays.
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17. Outsourcing
of call centers.
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18. They cause
adopters to
breakaway from
traditions.
E.g. telephone, PCs, Internet
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19. Feature-led innovation
Augmenting the
attribute(s) of an
existing product,
service, or process.
E.g. microprocessors,
iPad 1→iPad 2→iPad 3.
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22. Why should my
firm innovate?
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23. 1
Innovate or
If not you will be outran by the competition.
die!
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24. Kodak, the company
that invented the digital camera, filed for bankruptcy in
January 2012, after losing its competitiveness to rivals like… Other players
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25. The 100-year-old iconic
UK high street retailer ceased
operating in Nov. 2008.
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26. 2
A means
to create new
markets.
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27. 3
A means to find
solutions to organisational &
competitive challenges.
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28. Internal Challenges
Lack of skilled people.
Structural impediment.
Satisfying competing stakeholders’ expectations.
Sustaining a pipeline of innovations.
Rising operations costs.
Financial constraint.
Etc.
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29. External Challenges
Rapid changes.
Slow industry growth.
Changing consumers’ preferences.
Tightening regulatory conditions.
War, civil unrests, & geopolitical tensions.
Rising resources costs.
Economic uncertainties.
Ecological concerns & disasters.
Stiff competition.
Resource shortage.
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Etc. 29
30. 4
Innovation can be
a means to sustainable
competitive advantage.
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32. of new products fail.
Solomon et al. 2008
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34. 1
Innovation
Offers nothing
“new”.
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35. 2
Consumers were
not yet ready for such
innovations.
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36. The modern credit card,
created by Diners Club in 1950.
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38. …amid other reasons,
because of fewer
charging stations.
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39. 3
Product
had glitches.
First generation HD TVs
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40. Knowledge@Wharton (2012), “Pop Quiz: Can Indra Nooyi Revive PepsiCo?”. Retrieved
March 31, 2012, from http://knowledge.wharton.upenn.edu/article/2966.cfm
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41. Launched in 1993.
Reasons for
failure:
expensive, poor
handwriting
recognition,
marketing
messages
disguised
imperfections.
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42. 4
Product
Planet Price
Product
was poorly Process
Marketing
Place
marketed.
Mix
Physical
Promotion
Layout
People
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43. Tata Nano launched in 2009 has been dubbed a flop.
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44. India car boss Ratan Tata
admits Tata Nano “mistakes”.
Source: BBC (January 2012)
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45. In 1999, Cosmopolitan
rolled out yoghurt line.
Reasons for
failure:
expensive, not a
right fit for a
publishing firm.
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46. 5
Innovation was
aimed at the wrong
consumer segment.
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47. 6
Innovation
was killed by rival
innovations.
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48. HP’s Apotheker
18 August 2011—
discontinued TouchPad
after 2 months in market.
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Former HP CEO Leo Apotheker 48
49. 7
Innovation was
hastily withdrawn
from the market.
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50. Was the TouchPad
killed too early?
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52. Customers
Impact on customers
Successful innovations society Impact on society
Firm
Impact on firm
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55. Philip Kotler & Gary Armstrong (2009) Principles of Marketing, 13Ed.
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56. Ideas generation
Ideas screening
Concept Development
& Testing
Business Analysis
Marketing Strategy
Product Development
Test Marketing
Commercialisation
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57. Ideas generation
Ideas screening
Concept Development
& Testing
Business Analysis
Marketing Strategy
Product Development
Test Marketing
Commercialisation
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58. Merchant
Approach
Formal Informal
Approach Approach
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61. …top
management is
committed to spur
innovations.
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62. Innovative ideas come not only
from R&D people but everybody
inside & outside the organisation.
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65. Capture
innovative ideas
from consumers
by…
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67. Observing
consumers’
behaviours.
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82. Seek new product or service ideas through the…
forbesindia.com
Jobs-to-be-done
methodology.
Clayton Christensen
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84. If you can’t
generate
it, buy it.
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85. The iPod
concept was the
brainchild of
Anthony Fadell,
before he got
hired by Apple.
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86. Ideas generation
Ideas screening
Concept Development
& Testing
Business Analysis
Marketing Strategy
Product Development
Test Marketing
Commercialisation
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87. Suitability Acceptability Feasibility
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88. Is the new product idea an
excellent fit with the company?
Does it have potential to improve
the growth of the company?
Suitability
Is it a good fit with the
company’s product portfolio?
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89. Does the new product idea meet
the expectations of stakeholders?
What’s the potential return on
investment of the new product idea?
Acceptability
What and how much risks are involved?
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90. Does the firm has the resources
to develop the new product idea?
Feasibility Can the required resources
be mobilised in time?
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93. Ideas generation
Ideas screening
Concept Development
& Testing
Business Analysis
Marketing Strategy
Product Development
Test Marketing
Commercialisation
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96. In-house testing Off-house testing
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98. Ideas generation
Ideas screening
Concept Development
& Testing
Business Analysis
Marketing Strategy
Product Development
Test Marketing
Commercialisation
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100. How much sales
our we aiming for?
What’s the
projected profit?
How much costs
would be incurred?
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101. Ideas generation
Ideas screening
Concept Development
& Testing
Business Analysis
Marketing Strategy
Product Development
Test Marketing
Commercialisation
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102. Product
Planet Price
Marketing
Configure the right
Process
Mix
marketing mix for
Place
the new product.
Physical Promotio
Layout n
People
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103. Ideas generation
Ideas screening
Concept Development
& Testing
Business Analysis
Marketing Strategy
Product Development
Test Marketing
Commercialisation
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104. Product goes
into ‘full’ development
and production.
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105. Ideas generation
Ideas screening
Concept Development
& Testing
Business Analysis
Marketing Strategy
Product Development
Test Marketing
Commercialisation
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106. Product is made available to
limited customers | region aimed
to test its likely acceptance.
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108. Ideas generation
Ideas screening
Concept Development
& Testing
Business Analysis
Marketing Strategy
Product Development
Test Marketing
Commercialisation
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110. What challenges or
problems could I face during
the commercialisation phase?
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112. 1
Ideas generation
Ideas screening
Concept Development
& Testing
In practice, Business Analysis
NPD is not a Marketing Strategy
linear process. Product Development
Test Marketing
Commercialisation
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112
113. 2
Ideas generation
Ideas screening
Concept Development
& Testing
Some activities Business Analysis
are performed Marketing Strategy
simultaneously. Product Development
Test Marketing
Commercialisation
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113
114. 3
Ideas generation
Ideas screening
Concept Development
& Testing
Some radical Business Analysis
innovations skipped
some stages of the Marketing Strategy
NPD process. Product Development
Test Marketing
Commercialisation
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114
116. DIFFUSION OF
INNOVATION
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117. 3D TVs have been
around for some
years now, yet the
adoption rate has
been very slow.
Why?
Source: socialexcerpts.com
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118. …attempts
to explain why some
people are quick in
adopting new products
or services.
Source: alldaytech.com
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119. …or why some
people are slow in
adopting (oravoid)new
products or services.
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120. Dr. Everett M. Rogers
Diffusion of Innovation
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121. the spread of something,
DIFFUSION = over a period of time.
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122. INNOVATION = idea, service, product, etc.
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123. 2.5% 13.5% 34% 34% 13.5% 2.5%
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124. Factors influencing
consumers' adoption
of an innovation…
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125. Product Consumer
Message Messenger
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127. Is the innovation difficult
to use, or understand?
Complexity
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128. Does the innovation offer significant
benefits than existing product, etc.?
Relative advantage
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129. Does the innovation
offer observable results?
Observability
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130. Does the innovation fit my
beliefs, lifestyle, values, needs?
Compatibility
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131. Can the innovation be tested
or tried on a limited basis?
Trialability
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133. Age.
Gender.
Occupation.
Income.
Personality.
Referencegroup.
Perception.
Education.
Attitude.
Culture.
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Belief. 133
134. Reference Groups
Clubs
Gangs
Churches
Classmates
Interestgroups
Politicalaffiliations
Onlinecommunities
Professionalassociations
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137. Do you think
the message in
this advert is
communicated
effectively?
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138. Does this AD
get its message
across effectively?
Does it increase your
interest to know
more about Vita
Coco?
Source: www.celebritybug.net
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139. …sound, text, fonts, colours,
pictures, white space affect how
the message is perceived.
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140. Which features are (not)
highlighted in this AD?
Source: Apple.com (2012)
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142. …the medium that
carries or conveys the
message to the receiver.
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143. Radio.
Magazine.
Newspaper.
Opinionleader.
Spokesperson.
Fan-boysandfan-girls.
Socialmedia.
Directmail.
Television.
Internet.
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Leaflet. 143
144. Samuel L. Jackson, iPhone 4S TV Ad
Source: Apple.com (2012)
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148. The doping evidence made
Armstrong an untrustworthy
messenger of the Nike brand.
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149. Which “adopter” category are you?
Does it depend on the product or service?
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