Marketing of Innovations PDF

The+Fuqua+School+of+Business+logo Marketing of Innovations Future-casting & Idea Generation “The cinema is little more than a fad. It's canned drama. What...

The+Fuqua+School+of+Business+logo Marketing of Innovations Future-casting & Idea Generation “The cinema is little more than a fad. It's canned drama. What audiences really want to see is flesh and blood on the stage.” ~ Charlie Chaplin 1 How do we generate good product and service ideas? A Hierarchy of Creative Corporate Culture How do firms Individual create structures Effects and cultures of change? Group Effects Innovation Process + Formal +Emergent Strong Marketing Orientation © Wood 2008, 2009 3 Design-thinking #1. Start MUCH EARLIER than you think is necessary… Ideo: Nemours Children’s Hospital Best practices for research in NPD #1. Start MUCH EARLIER than you think is necessary… “Yes AND…” First should not be last! Rich stories, joys & pains User needs User constraints Valuation Stanford’s Design-Thinking Process Competition What is voc? A process for deeply understanding customer perceptions, needs, and priorities Consists of both qualitative and quantitative methods Important through all stages of the PLC (product life-cycle) Critical for imagining the future What is voc? A process for deeply understanding customer perceptions, needs, and priorities Consists of both qualitative and quantitative methods Important through all stages of the PLC (product life-cycle) Design an intervention or tool to help single low-income parents feed their kids (and teach about) more nutrition-dense food. Voice of the Customer (VoC): Steps (according to John Hauser) 1. Interviews with 10-30 consumers to develop list of customer John Hauser MIT needs “in their own words” 2. Resulting list (often 75-150 phrases) is categorized by firm into primary, secondary, and tertiary needs 1. Primary: Abstract consumer goals 2. Secondary: Managerial actions 3. Tertiary: Operational tactics/details 3. Primary needs are prioritized by consumer group 4. Customer perception of performance for primary/secondary needs is assessed by survey for competitive set Interviews & observations What if you can’t observe unnoticed? Pro-tips for how to conduct contextual user interviews: 1. Dress like your informant 2. Watch for workarounds 3. Watch for pain points 4. Note technology or lack 5. Note consumption constellations 6. Note process & distractions See more at: http://theuxreview.co.uk/user-interviews-the-beginners-guide/ Best practices Get creative in your qualitative! Mystery customers Trade Show ethnographers ZMET  https://www.youtube.com/watch?v=RIUuIlB5ciA ZMET Can you ask people about culture/meaning or are these concepts difficult to articulate? IF SO, then the use of metaphors provides a critical tool. Remember Metaphors? A simple system is used to explain a complex system by aligning similarities between the two. ZMET: Zaltman Metaphor Elicitation Task Zmet exercise 2015 Capture all your thoughts & emotions about your FUQUA MBA experience…in images! STEPS: 1. Think for a moment of all the emotions you’ve felt here. 2. Search/collect images that jump out to you when you think of your MBA experience. 3. It’s ok if there are multiple themes or facets 4. Cut out and arrange them in a collage that highlights the juxtaposition of those themes 5. Use the back of the collage to write a one-page explanation of your collage – “What’s going on here? Translate it to me...” Class zmet: Money Fast 12% Family & friends 16% 64% Power & Confidence Play 56% 32% Stress 74% The “real” Food you Doubt & Team 40% 52% Fear 16% Happy 42% 18% Diversity Travel Exercise 36% 32% 4%  Power & Class zmet: Confidence Team 56% 16% The “real” you 40% Stress 74% Fast Play 16% Doubt & 32% Travel Fear 42% 32% Food Diversity 52% 36% Class zmet: The paradox of Fuqua Growth at a rocketing pace Exploration What’s the difference Future-casting between these terms? Trend-spotting Cool-hunting ESPN’s Bananaland ESPN’s Bananaland EXPLORE FUTURE TRENDS Explore new trends/inventions outside of your industry (and don’t rely solely on others’ future-casting) The Importance of Management Culture comes from the top Management incentivizes Managers “frame the problem” Managers must perfect “loose-tight” leadership Only managers can “honor failures” 18 Skunk Works Li’l Abner’s “Skonk Works” bootleg distillery to Lockheed Martin’s Skunk Works Isolated Unique creative culture Examples: IBM, Dow Chemical, Toys “R” Us General Aviation News 19 Product Champions & “Unlearning” Product Champions “Unlearning” Idea ownership Devil’s Advocate process Horizontal power structure Goal is to make a practice of Personal characteristics questioning conventional wisdom Drive Example: GE’s “workout” sessions Discernment Expertise Ego strength 20 Cross-Functional Teams Boundary-spanning theory Successful when… Senior management is committed to joint project Clear and stable project vision Flexible, improvisational path to market Highly varied information exchange Collaboration under pressure Importance of “co-opetition” Lynn & Reilly 2002 Luo, Slotegraaf, & Pan 2006 JM 21 A Hierarchy of Creative Corporate Culture How do firms Individual encourage individuals Effects to be agents of change? Group Effects Innovation Process + Formal +Emergent Strong Marketing Orientation © Wood 2008, 2009 22 Three keys to individual creativity 1. Happiness 2. “Combinatorial play” 3. Analogies 23 Three keys to individual creativity 1. Happiness Alice Isen 2. “Combinatorial play” 3. Analogies Positive affect promotes: 1. Task perceptions and job satisfaction 2. Novelty of associations 3. Creative problem solving 4. Diagnosis accuracy (physicians) 5. Variety-seeking behavior 6. Risk tolerance 7. Helping behaviors 24 Three keys to individual creativity 1. Happiness 2. “Combinatorial play” 3. Analogies Albert Einstein ”Combinatorial play seems to be the essential feature in productive thought.” 25 Three keys to individual creativity Creativity is fostered by the 1. Happiness association of disparate 2. “Combinatorial play” schemas. Analogies are a literary device in which we 3. Analogies compare unlike things. (e.g. planetary model of atoms) How do you foster combinatorial or analogical thinking? 1.Introduce new people from different industries 2.Encourage outside learning of new topics 26 5 Takeaways 1. There is a hierarchy to the creative corporate culture; higher order elements work when lower order foundations are in place 2. The dichotomy between formal and emergent processes should be strategic choice 3. Learn the steps to hear the VoC (Hauser). 4. The role of management in innovative product creation is critical 5. The unique atmosphere that best supports individual creativity takes careful attention! Happiness, intersection, and deep learning. 27