Developing new products and services (9)

Invention

anything new and hasnt been done before

Innovation

bringing new practices that a organisation hasnt done before adapted from existing products/services

Design

process that transforms innovative ideas into somethin concrete (tangible)

High impact change to product market, low possibility of Execution

Invention (sits there)

No impact on product market, no possible execution

No invention, no innovation

High impact change to product market, high Execution possibility

Radical (disruptive) innovation

Low impact on product market, high execution possibility

Incremented innovation (continuous improvement)

Modification

level 1 novelty - change in some way, usually continuous improvements

Restaging

level 2 novelty - modify use on different occasions, by new market segement or regain interest. Can't modify much but make product seen in different ways

Line extensions

level 3 novelty - product variations (flexibility), extend line or depth of product

New products in exisiting catagories

level 4 novelty - high risk = more potential to increase customers, E.g. smart devices: phones, tablets, wearables

New catagories

level 5 novelty - even riskier = even more potential to increase customers, develops new products/services

Inventions

level 6 - highest risk but most potenial to increase customers, entirely new

Radical step change (Kaikaku)

High step changes (always making new things) Big impacts on market and company changing perceptions

Kaikaku downside

continual radical step change not always sustainable as company becomes fatigued

Incremental/Continuous improvement (Kaizen)

Small changes to catch up with market requirements (gradually)

Kaizen downside

improvements may not be sustantial enough to keep up with requirements overtime

Combination (Kaikaku & Kaizen)

Optimum and sustainable improvement, maintain 'S' curve before peak

Formulate ideas

stage 1 NPD/NSD - objectives, structure, generate ideas, screen them

Decide whether to proceed

stage 2 NPD/NSD - basis of decision? impact on market? commercially viable? test concept and development and business analysis

Test the Design

stage 3 NPD/NSD - onc approved, test the product, include personnel training

Evaluate the outcome

stage 4 NPD/NSD - launch it, review outcome, test marketing

Innovation itself

if just modifying products then dont need to do all the steps of NPD/NSD. If its an invention then it needs all steps

Organisation culture

The the culture is entreprenurial then can miss some steps of NPD/NSD. Task focus or power culture requires all steps.

External environment

PESTLE, another reason contributing to eliminating some steps NPD/NSD

Screening

Level of inquired investment, ease of execution, csutomer demand, fit with existing product range

Feasibility

How difficult is it? -> what investment is needed?

Acceptability

how worthwhile is it> -> what return (benefits)?

Vulnerability

What could go wrong? -> what risks if they go wrong?

Formal approach to innovation

Product protected by patent, little to no competitors, innovation is original, new products impact manufacturing

Bureaucratic culture

Mature marketplace

involve external experts/consultants

Formal research/development departments

Informal approach to innovation

Product modification/restaging/line extension, less likely patent, innovation not part of major change, competitors actively innovating, 'new' products based on existing market ones.

Create/entrepreneurial leadership

Grow integration across supply chain

Task culture

DEregulated markets

Barriers ti successful innovation

Top management (not open to change)

Innovation seen as too risky

Intolerance to 'fanatics' inappropriate culture

Short financial time horizons

Innovations seen as change=chaos if not careful

Excessive bureaucracy (delays)

Challenge: Control of resources

(inhouse) close but loose, (outsource) distant through contracts

Challenge: Familiarity

(inhouse) strong, (outsource) weak in short term, possibly stronger long term

Challenge: Accesibility

(inhouse) High, (outsource) low/limited

Challenge: Cost

(inhouse) fixed, (outsource) variable

Challenge: Risk of knowledge leakeage

(inhouse) small, (outsource) Great - potentially

Patent

legal right to exploit invention that is novel with practical use

lasts 20 yrs (no protection after or renew), prevent submission of identical patents, disclosed in legal document

Design rights (Trademarks)

protects appearance of a product, so it isnt copied. Disclosed by word, letter or shape

Copyright

legal protection 'creative works' (books, films, music), lifetime grant, easiest to do but doesnt protect ideas, disclosed by published material.

Trade secrets (Non-disclosures)

if you dont want the product to have commercial value, dont mention it anywhere. Post idea to yourself as evidence you thought of it first.