INNOVATION MANAGEMENT CLASS

INNOVATION MANAGEMENT ECONOMIC & MARKET ADOPTION

Week 2 Class

by Ir. D. Wim Prihanto, MM (AIM)

Learning Points

1. Which one would be survived ? Why ?

The strongest

The biggest

The most adaptive

Most People want to be

Most Companies want to be

Core of Innovation

Learning Points

2. Where should innovation lead ?

Innovation should lead to economic growth such as revenue growth, profit growth, etc innovation is engine of growth.

Business Growth

To be Pioneer

Differentiation

Utility Purposes

Legendary and Legacy

Competitive Platform

Learning Points

3. How is the sequence of innovation process ? was led by creative individuals then applied to company architecture and operating.

Creative Applicable Operating

Creative Individuals

Creative Company Architecture

Utility Purposes

Legendary and Legacy

Competitive Platform

Innovation process was led by creative individuals then applied to company architecture and operating.

Learning Points

4. Is innovation an integrated management process or a single action ?.

Single Action

Integrated Management Process

Ideas

Innovation

Innovation is an integrated management process not a single action .

Learning Points

5. What is difference between Ideas, Thinking of ideas and Implementation ideas to organization ?

IDEAS

THINKING OF IDEAS

IMPLEMENTATION IDEAS

Invention

Creativity

Innovation

EXTERNAL INPUTS:societal needs;competitors;supplier partnerships;distributors;customers;strategic alliances.

EXTERNAL INPUTS:scientific and technological development;competitors;suppliers;customers;university departments.

Organisation and business strategy

Mar

ketin

g

EXTERNAL INPUTS:macro factorsROIcosts;competition.

Organisation’s knowledge base

accumulates knowledge

over time

Research and technology

Innovation management framework

New productsSource: Trott, 2005

Learning Points

6. Science is discovering a new one, then technology came from employing and manipulating science into concept, process and devices which make our life easier.

7. Innovation could be happen when all stimulated factors (external & internal) are interactive connected as integrated management systems

8. The pharmaceutical is more on technology push model but food industry is market pull model. Other industries could be mixture of the two models.

9. Marketing, research and manufacturing, and business planning are three main functions which more influential on common organization.

Innovative firm

Factor conditions

Institutional setting

Suppliers andsupportingindustries

Customers

FinancingR&D

Educational and othersocietal effects

Competitionregulator

Purchaser

Information anddecision centre,political stability

Macroeconomicconditions

Infrastructure

Environment andsafety regulator

The role of the state in innovation

Learning Points

1. Government has a important role for creating an innovation growth climate (long term wise).

2. The other hand, business man & entrepreneur may only focus on high-return opportunities in the short term.

3. The right business environment is key to innovation, but the people is the master key of that.

4. First Revolution : Steam Engine, Second Revolution : Computers….then the Third Revolution is Welness

5. Market vision or the ability to look into the future and picture products and services that will be successful is a fundamental requirement for those firms wishing to engage in innovation.

Learning Points

1. Marketing insights have an importance role to facilitate innovation toward the market vision.

2. Lead users is being used by technology minded product development as they want to be perceived as pioneer and innovative people.

3. Company only has 2.5% of innovators and early adopters 13.5% for successful new products and after that critical “chasm” before convincing early majority for successful launching.

4. Knowing the psychographic of each categories is critical for innovation process.

Is market evolving? Challenge for Industry

Rationale Emotional

1977 – 1980

1st Generation

1981 - 1985

2nd Generation

1986 – 1996

3rd Generation

1997 – 2004

4rd Generation

“Kijang Innova – Beautiful [R]evolution” (Sep 2004)

[R]evolution in Style

[R]evolution in Comfort

[R]evolution in Performance

[R]evolution in Safety

[R]evolution in Variants & Colors

Kijang Journey …..

Source : Courtesy of Dini E , 2006

Telephone …..

Basic telephone

- Music (MP3)- Ring Tones- Waiting call

music- 3G- Internet, etc.

Rationale Emotional

‘Technology’ makes people becomes more

‘Emotional’ NOT ‘Rational’

Old Paradigm“High technology = More Rational”

Friendster.com

Web site frinedster.com

J.Co “Donut

Orchestra experience

…”

Hanyawanita.com

• Web site …

“Emerging Metro-sexual”“Men becomes more

emotional”

Examples …

• Perfume & Lotion for Men• Spa & Treatment for Men• L-Men• Appearance oriented• Chatting (“ngerumpi)

Male Grooming

So …It’s an Emotional World!

Next AssignmentINNOVATION PROJECT

• Buat detail proposal innovation project, berisi :

Nama Project

Latar Belakang (Why)

Konsep Ide (What)

Concept testing

Business Analysis

Prototype development

Test marketing

Commercialization

Investment

• Proposal diserahkan pada kuliah berikutnya

The NPD process as a series of linked activities

Strategic planning

Assembling knowledgeR&D

Marketresearch

Scientific andtechnologicaldevelopments

Generating businessopportunities

Society and marketdevelopmentsleading to needs

Development ofproduct prototypes

Product concept generationScreening and evaluation is not a one-off activity –it is a continual process and takes place at every stage.

Market introduction

Market and technical testing

Next Week Assignment

Case analysis “Zara”

Cari informasi inovasi apa saja yang dilakukan Zara dan analisa mengapa inovasi ini berhasil dijalankan oleh Zara.

Siapkan paper anda untuk presentasi tanggal 01 Maret 2010

THANK YOU END OF

PRESENTATION