INNOVATION MANAGEMENT: KEY TOOLS AND TECHNIQUES
Innovation Strategy1
The Need for Innovation
Environment
Competitors
Technology
PEST, STEEPI, Porter, 5 forces etc
OK
What we plan to do
People and Organization
Decomposing Culture5
ƒ Framework of the five key areas
Customers
TRENDS
Now
Innovation Pentathlon1
ƒ Use as a basis for “auditing”
innovation performance
4 Stories
5 Routines
and Rituals
3 Symbols
2 Power
Structures
7 Paradigm
Future
NEED FOR INNOVATION
Not OK
•
• Goals
•
• Communication
•
• Technology
•
• Measures
Innovation
Innovation
Strategy
Strategy
WHY NOT?
The aspirations of stakeholders drive innovation
6 Control
Systems
CulturalWeb1.ppt
Innovation Audits
Product-Technology Roadmaps2
Layers
connect:
Generic format
Business or
Market
Drivers
1 Organizational
Structures
Ideas
Implementation
Prioritization
(e.g. New
Product Development)
Innovation
strategy
(5)
Process/technology
innovation
ISSUES
(5)
‘purpose’
(know-why)
Product,
Service,
Capabilities
(5)
Service
innovation
People and Organization
‘resources’
(know-how)
Market Requirements
(5)
High Product
Innovation
Rate
• Culture
• Motivation
• Appraisal
Time
(know-when)
Ideas
Implementation
/NPD
(5)
People/HRM
Issues
Objectives (The ‘what’)
Enablers (The ‘how’)
Implementation
Prioritization
Hidden Needs Analysis3
•What is your org.
perceived
performance?
Portfolio
management
(5)
(5)
time
Score 5 = high / 0 =
low
Perceived Performance
‘delivery’
(know-what)
Technology,
Knowledge,
Resources
•What are the market
requirements?
Creativity and
idea
management
(5)
Kano Model
Portfolio Management
Customer Satisfaction = Σ[ Satisf(Excite) + Satisf(Perf) + Satisf(Basic)]
Data collection /
analysis
Brainstorming and
developing
attributes to solve
customers’ issues
MARKET 4
Breakthrough
Products
Pearls
MARKET 3
Create
10%
MARKET 2
MARKET
1
New Methods
-Observation
-Contextual interviews
-Repertory grid
-Lead users
-Surveys
-Focus groups
Relationship
Questions to Ask
1
Relative
advantage
The greater the perceived
advantage, the faster the
diffusion
ƒWhat new benefits does the innovation offer?
ƒDoes the innovation cover all of the benefits of the
existing product, process or service?
ƒHow much better is the innovation, in terms of
financial, time saved and other measures?
2
Observability
The easier it is to observe
the advantages, the faster
the diffusion
ƒHow can the benefits of the innovation be made as
tangible and demonstrable as possible?
3
Trialability
The easier it is for users to
test the innovation, the
faster the diffusion
ƒIs the customer easily able to trial the innovation to
perceive the benefits first hand?
ƒCan a trial on a small scale be used?
4
Compatability
The closer the match to
the
existing
product,
process or service, the
faster the diffusion
ƒIn what ways can the innovation be made similar to
the customer’s current way of working?
5
Complexity
The simpler the innovation
appears, the faster the
diffusion
ƒHow can an innovation be designed to be simple?
ƒHow can extra features and customization be
developed in the product, process or service without
adding unnecessary complexity?
The lower the risk
faster the diffusion
ƒWhat are the customer’s perceived risks of adoption?
ƒHow can they be minimized?
Perceived risk
the
1) Based on Goffin, K. and Mitchell, R., Innovation Management: Strategy and Implementation Using the Pentathlon
Framework, Palgrave MacMillan Academic Publishers: Basingstoke, June 2005, ISBN 1-4039-1260-2.
The models presented on this poster are covered in detail on Cranfield’s Managing Innovation Seminar
(www.cranfield.ac.uk/som/executive/minp)
2) Diagram courtesy of Dr R. Phaal, Cambridge University.
3) Based on Goffin, K., and Lemke, F., ‘Uncovering Your Customer’s Hidden Needs’, European Business Forum, Issue
18, Summer 2004, pp45&47.
© Cranfield School of Management 2006
Re-Use
10%
Design and layout S. Körner / C. Hutchings
Delight
Excitement needs
(Seldom expressed:
new to the world)
Immediate
happiness
Performance needs
(Generally expressed.
e.g. miles per gallon)
Not
unhappy
Basic needs (hygiene)
(Not always expressed.
e.g. safety, car will start,
food non-poisoned)
Source: AXA Ireland
Bubble Diagrams
Factor
6
Oysters
Bread and
Butter
-Attribute association
-Experimentation
-Conjoint analysis
Diffusion of Innovations4
No.
40%
Improve
40%
Traditional
Methods
Eliminate
Customer satisfaction
Market Research
Design Phase
Disappointed
Easy, high prob.
“BREAD AND BUTTER”
Degree of feature
implementation
Good
Poor
“PEARLS”
The NPD / NSD Process6
Low
Reward/ NPV
High
“WHITE
ELEPHANTS”
“OYSTERS”
Preliminary
Investigation
Detailed
Investigation
Gate
1
Development
Gate
2
Gate
3
Difficult, low prob
4) Based on Rogers, E.M. Diffusion of Innovations, The Free Press: New York, 1995, ISBN 0-02-926671-8
5) See Balogun, J., Hope Hailey, V. with Johnson, G. and Scholas, K., Exploring Strategic Change, (London:
Prentice Hall, 1999), ISBN 0-13-263856-8, p229-234
6) The work of Professor Robert Cooper, including his Stage-GateTM model, has had a key influence on new
product
development processes. See for example Cooper, R.G., Winning at New Products, Perseus: Cambridge,
Mass.
2001, 3rd Edition, ISBN 0738204633.
Centre for Innovative Products and Services (CIPS)
Cranfield School of Management
Cranfield, Bedfordshire, MK43 0AL, UK.
Tel: +44 (0)1234 754871 email: k.goffin@cranfield.ac.uk
Test
Production /
Launch
Gate
4
Review