innovation

innovation components

• team focus

• timing

• failure= learning

diffusion of innovation curve

the process by which ideas spread

pioneers

establish completely new markets/ radically change consumer preference

innovators

“early” investors (2.5%)

• people who bought tickets before the previews were out

early adopters

product not yet to the mass market, still into it (13.5%)

Ex. people buying tickets opening night

early majority

crossing the chasm, the group that needs to buy things for goods to become profitable (34%)

Ex. people who waited a few days for reviews come out

late majority

34%, product had already achieved full market potential

(we’re seeing it on streaming)

laggards

16%, avoid change and rely on traditional products as long as possible

Ex. maybe it’s on cable

product development process

1. idea generation

2. concept testing

3. product development

   1. prototype

   2. alpha testing

   3. beta testing

4. market testing

   1. premarket testing

   2. test market

5. product launch

6. evaluation of result

sources of new product ideas

• customer input

• competitor products

• outsourcing

• brainstorming

• licensing

• internal research and development

• R&D consortia

R&D consortia

group of firms and institutions that explore new ideas of get solutions for developing new products

diffusion factors

• relative advantage

• compatibility

• observability

• complexity/triability

relative advantage

a good is perceived as being better than the substitutes

compatibility

consumer features affect the speed of the diffusion process

Ex. old people probably aren’t getting VR apps

observability

products ability to be observed translates to how easily their benefits are communicated

Ex. blender v turbotax

complexity/triability

how hard is it to work

product life cycle

• introduction

• growth

• maturity

• decline

Simon Sinek TED talk

• Golden circle: Why, How, What

• You SHOULD go why, how, what

  • most people go the other way

• people don’t but what you do they buy why you do it

• people blame money, market conditions and people

  • Samuel Pierpont Langley