advanced models in high-tech marketing day 2- innovation – blue ocean and global brain modelos...
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Advanced Models in High-Tech Marketing
Day 2- Innovation –Blue Ocean and Global Brain
modelos avançados em marketing de alta tecnologia
2
Course Objectives• Review of advanced models in high-tech
marketing• Implementation of these models by the
participants in a unique project
ImplementaçãoÚnico Projeto
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Day 2 Objectives
• Blue Ocean analysis for class projects Projeto Oceano Azul
• The innovators dilemma O Dilema do Inovador• Global Brain Model Cérebro global
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Course Rational
Innovation
Diffusion of Innovation
Positioning/Branding
Revenues
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Course Rational
inovação
difusão da inovação
receita
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Course PlanTopics “Startup Nation”
case studies Readings/ Submissions
Day 1 – Technology Innovation 1 : Disruptive Technologies and Blue Oceans Introduction and review of course
rational and requirements Startup Nation
Disruptive Technology and the Innovator’s dilemma
The Blue Ocean Model for competitive landscape Analysis
Blue Ocean Strategy
Day 2 – Technology Innovation : The Global Brain Model Blue Ocean Model – Discussion of
Implementation on Student projects Brazilian Projects
Project proposal and Blue ocean analysis
The Global Brain Model for Network-Centric Innovation
Apple vs. Google
Day 3 – Marketing Innovation 1 - The Chasm and Dual Markets Model Rogers Technology Adoption Model The Chasm Model
Crossing the chasm
The Dual Market Model Marketing by word of mouth vs.
external promotion
Publication 1
Day 4- Marketing Innovation 2 – Marketing to Mainstream vs. Early Adopters The 3 step Model of Segment
Targeting, Positioning and Branding
Publication 2
The Network Effect
Facebook movie Publication 3
“all-nighter” for consulting students Project draft 1 Day 5 –High-tech Revenue Models – Pricing, Bundling and Lock-in Pricing and Bundling high-tech
products and services Achieving Customer Lock-in
“Startup Nation” summary session – implementation of all course models by Checkpoint Software Technologies
Day 6 – Class Presentations of Student Projects and Course Summary Project presentations Final Projects Course summary and initial feedback
Blue Ocean
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What factors should be eliminated that the industry has taken for granted?
Eliminate
What factors should be reduced well below the industry standard?
Reduce
What factors should be created that the industry has never offered?
Create
What factors should be raised well beyond the industry standard?
Raise
Four Actions to create a Blue Ocean
PillCam Blue Ocean Analysis
Cost Ease precision therapy0
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Colon 1 Colon 2 Pillcam2
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cérebro global
The Emerging Innovation Agenda… We will acquire 50% of our innovations from outside.
We expect a significant part of our offerings to be based on innovation occurring within the open source
community.
We expect our external innovation initiative to evolve from technology acquisition to the sourcing of more
complete product concepts in the next few years.
We have set an internal target of sourcing 30% of our product concepts from outside .
The Concept of Network-Centricity
network centricity: “network as the focal point and the associated opportunity to extend, optimize, and/or enhance the value of a stand-alone entity or activity”
Network-centric Innovation
Innovationinovação
Customers clientes
Academia
Suppliersfornecedores
Non-R&D Employeesfuncionário
Independent Inventors
inventores
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Personal Example for Innovation
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Network-Centric InnovationApplying the concept of Network-Centricity to
Innovation:.1Amplify innovation reach (aumentar).2Accelerate innovation speed (acelerar).3Improve the quality (qualidade)
Understanding the landscape…..
Diffused difuso• Community led• More informal structures/linkages• Etherarchical
Centralized• Dominant player led• More formal structures/linkages• Hierarchical
Defined definido• Clearly defined/structured problem space• Exploitation, efficiency• Emphasis on ‘known connections’ in knowledge-base
NetworkLeadership
Emergent emergente• Less defined / unstructured problem space • Exploration, novelty• Emphasis on ‘unknown connections’ in knowledge-base
Inn
ovati
on
Space
centralizada
The Four Models of Network-Centric Innovation
CreativeBazaar
JamCentral
Orchestra MODStation
Centralized Diffused
Defined
Emergent
Network Leadership
Inno
vatio
n Sp
ace
The Orchestra Model Characteristics
•Focused on exploiting the market opportunities based on an explicit innovation
architecture that is defined and shaped by a dominant firm
•Role as the Innovation Integrator
•Found in markets where a proprietary dominant design has emerged
•Emphasize modularity and innovation efficiency
•Highly organized and coordinated innovation processes & support infrastructure
Inno
vatio
n
MODStation
Orchestra
JamCentral
CreativeBazaar E
ME
RG
EN
T
NetworkCENTRALIZED DIFFUSED
DE
FIN
ED
•Predefined script
•Conductor or lead entity
•Defined roles based on expertise
•Hierarchical (formal) relationships
Boeing 787 Design & Development
787 :Key Themes…
From “Build to Print” to “Design & Build to Performance”
Shared risk/reward ($4 billion partner commitment)
Boeing as the Orchestrator
High situational awareness (Virtual Global Collaboration Centers)
The Creative Bazaar Model
•Characteristics
•Focused on seeking out and bringing to fruition new innovation opportunities that meet the broad market
and innovation agenda of the dominant firm
•Role as the Innovation Seeker
•Emergence of new types of innovation intermediaries (e.g. Innovation Capitalist)
•Found in markets that are diverse in terms of customer choices (e.g. consumer products) or
technology application contexts (e.g. enterprise computing)
Inno
vatio
n
MODStation
Orchestra
JamCentral
CreativeBazaarE
ME
RG
EN
T
NetworkDIFFUSED
DE
FIN
ED
CENTRALIZED
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The Jam Central Model Characteristics
•Focus on exploring novel market/ technological problems
•Role as the Innovation Champion
•Members of the community together frame the broad parameters of the
problem space
•Found in markets where complex and a diverse set of knowledge elements have to
be brought to bear to solve novel & ill-defined problems
Inno
vatio
n
MODStation
Orchestra
JamCentral
CreativeBazaar
EM
ER
GE
NT
NetworkCENTRALIZED DIFFUSED
DE
FIN
ED
Jam Central Classic• http://www.innocentive.com/• Total Registered Solvers: 300,000+ from nearly 200
countries• Total Solver Reach: 13+ million through our strategic
partners• Total Solution Submissions: 40,000+• Total Awards Given: 1,500+• Total Award Dollars Posted: $40+ million• Range of awards: $5,000 to $1+ million• Premium Challenge Success Rate: 85%
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The MOD Station Model Characteristics
•Focus on exploiting the knowledge of a community of ‘experts’ to address
market/technological issues within a predefined problem space
•Role as the Innovation Catalyst catalisador
•Community of innovators come together to create new offerings by “modifying”
existing innovations in ways that benefit everybody
•Value appropriation and governance mechanisms defined by the community
(includes social mechanisms)
Inno
vatio
n
MODStation
Orchestra
JamCentral
Creative Bazaar
EM
ER
GE
NT
LeadershipCENTRALIZED DIFFUSED
DE
FIN
ED
Example for MOD
Defined
Emergent emergente
DiffusedCentralized
Orchestra MOD Station
JamCentral
CreativeBazaar
Where do you see your organization on this landscape?
difusocentralizada
definido
How do you prepare your organization to pursue those opportunities.… ?
The Capability Platform will depend on the specific model of network-centric innovation
and the role your organization plays in it
The elements of the capability platform:Cultivate a culture of ‘openness’ franqueza
organizational structure estrutura organizacional
Adopt a portfolio of success metrics métricas de sucesso
So what is stopping us … ?73% of CEOs strongly agree that: “we could dramatically boost innovation by
collaborating with outsiders, even competitors ”.
However, the same set of CEOs express: “deep dissatisfaction with our knowledge about appropriate strategies, practices, and tools” for such network-centric
innovation.
-Bain & Co CEO survey 2006
‘Mindset’ Challenges (Are we okay with this?)
Contextualization Challenges (What is the best approach for us?)
Execution Challenges (Are we prepared for this?)
Some Concluding Thoughts.… Collaborative innovation & problem-solving:
The Way of the Future!
Engage diverse sets of stakeholders: customers, competitors, employees,suppliers
Pursue the “right” network-centric innovation approach
Experiment! Experiment!