Innovation Models Flashcards

Question

At what point does innovation from the firm start for a user-led innovation?

Answer 1

Collaborative improvement For a firm-driven innovation, this would usually be at the start in market research stage, but the lead users have done this already for them.

Answer 2

Idea invention - Needs/problems - Research Development - Design - Commercialise Adoption/Diffusion - Marketing - Distribution - Promotion

Answer 3

Innovation by users Free revealing followed by collaborative improvement Peer-to-peer diffusion

Answer 4

Consumer needs are clear and concrete Users take on costs of testing and development Risk free

Answer 5

Hard to prevent competition doing similar Reactive models cannot build a big picture like disruptive innovations Hard to predict

Answer 6

First mover advantage (Lieberman and Montgomery, 1988) Blue ocean strategy (Chan, Kim and mauborgne, 2005) Organisational memory can mean a failure could used to innovate later down the line Create and capture a new demand in an uncontested market space

Answer 7

Costly No evidence of consumer needs - can be over stated, biased within the industry Commercialisation treated as a fourth stage which comes too late Assumes organisations are the sole source of innovation Lack of identity value of new products and services eg: Harley Davidson

Answer 8

1) PROCESS NEEDS (Peter Drucker) - Perfect a process that already exists eg: 1909 Bell Telephone projected the trend for the growth in the American population and number of operators required to handle calls - lead to switchboards requiring automation 2) DEMOGRAPHIC CHANGES - Baby boomers - What values, ideals and struggles do these groups face? eg: Monzo - 20-35s struggling to budget when wages are decreasing and rent prices are increasing 3) NEW SPECIALISED KNOWLEDGE New forms of scientific or technical knowledge making new forms of living possible Innovator has to create a want for users to be receptive as the ideals are so radical eg: iPhone

Answer 9

Firms look to discover needs to develop new products and services Conduct research to see if it is feasible through technical and market assessments Developing prototypes and testing Commercialise

Answer 10

Post war consumer culture saw rise of cultural engineering Marketers sold people the life they should lead Marketing used shared interests to bind people together (Baritz, 1989) People trusted organisations to care for them therefore corporations had the power to shape consumers desires, ideals and preferences

Answer 11

FDM denied people the freedom to choose - contradiction of having freedom which was picked up by critics and consumers alike (White, 1956, Mills 1953). Death of cultural engineering and emergence of a branding steeped in postmodernism People wanted to consumer brands that had identity value in search of their own sovereignty eg: VW Beetle

Answer 12

1) Where there are ASYMMETRIES in key resources, knowledge, expertise and capital between the industry and consumers Firms stockpile knowledge through patents, draw on expertise and maintain market power eg: Automotive industry eg: Pharmaceutical industry eg: Tech industry 2) Where organisations EXPLOIT consumer dependencies and lack of substitutes Unable to use others without substantial switching costs - they are locked in (Schumpeter, 1934) eg: Apple having iMessage, iCloud, Mac etc eg: Google Costs endured include search costs, loyalty cost and dependence on complementary products and services (Harrison et al, 2012)

Answer 13

Gap between need recognition and organisations taking advantage Firms are involved after lead-users product prototypes to meet their own needs and wants

Answer 14

After the lead user has created a prototype, collaborated with others to improve the overall product.

Answer 15

Innovators who solve their own needs at private expense Often circulate innovations with others desiring the same need fulfilment Are at the leading edge of important trends Serve as a market signal that innovation has sufficient market demand now and in the future

Answer 16

``` Range including: Waistband flex Nanosphere technology 3M reflective tape Waterproof No crotch blow out ``` Lead users did all the innovation for Levis

Answer 17

Organic | Community driven

Answer 18

Firm led | Marketing driven

Answer 19

Internet Technology Value Barrier to entry - reduced Communities - online Globalisation - ideas across boundaries Platforms - app stores Crowd funding Legal system Influencer culture

Answer 20

Consumers - Desire identity and symbolic benefits People engage in non-commercial innovation to reduce reliance on the market place Similar values animate craft consumerism (Campbell, 2005) Deprofessionalisation in work one's leisure pursuits (Campbell 2005) Democratisation of skills and knowledge via the internet (von Hippel, 2005) Excessive consumerism sees people turn to building their own products to create goods with identity value and not faceless commodities

Answer 21

Firms want to develop products that meet many user needs so leave minor unmet needs unmet, therefore gives space for users to innovate. Improved education and vocational training by firms has resulted in consumers becoming skilled (Ritzer and Jurgenson, 2010) Firms are embracing this idea of innovation, providing users with resources and toolkits to facilitate innovation (Thomke and von Hippel, 2011)

Answer 22

Users with High levels of specific knowledge High levels of use experience

Answer 23

Users who Occupy positions between different groups of users Use social network analysis tools to identify users that influence flow of communication

Answer 24

1) Observe through building digital platforms 2) Ethnography 3) Pyramiding to explore activity at the leading edge of lead-user innovation

Answer 25

LEGO Robotic lego toys 1998 for kids 70% of customers turned out to be 18+ Major universes built their curriculum around windstorm technology Adult fans shared hacks through Lugnet and program the robots in ways that Lego had not originally intended Lego created a marketplace for users to share hacks and monitor their popularity. They would license the most successful and sell them.

Answer 26

Networking through pyramids of expertise to identify lead users and experts. Starts within the target market before looking to other experts in the field eg: ABS came through speaking to racing car drivers feathering brakes. Went to Boeing to mimic the technology, they were at the leading edge.

Answer 27

ABS - learnt from Boeing to transfer to racing car driving Professional cycling motor homes - learnt from formula 1

Answer 28

A brand that delivers an innovative, cultural expression.

Answer 29

Serves as a compass point and linchpin of identity, providing users with symbolic rather than functional value. It helps to communicate and signal value to others, helping us to express identity

Answer 30

Clothing Cars Food Drinks

Answer 31

Ideology Myth Cultural codes

Answer 32

A particular point of view on a major cultural construct that has become widely shared and taken for granted, naturalised by a segment of society as truth eg: Jack Daniels and Marlboro capitalising on the ideology working class, frontier masculinity

Answer 33

Instructive stories that impart ideology. The ideology is only comprehensible when it is embedded in a myth. eg: Jack Daniels men uphold frontier ideals of masculinity with whiskey making in a hillbilly subculture which romanticised untouched Tennesse backwards. This world was untouched by industrialisation and the post war ideology of the organisation man.

Answer 34

For a myth to resonate it must be composed using codes. Cultural codes provide a shorthand for consumers to easily understand and experience the emded meanings. Texts, sounds, symbols, colours, smells - a palette for the brand to express their myth. eg: Jack Daniels using men in worn denim and manual techniques making it clear there is a preference for old time craftsmanship.

Answer 35

When they break the cultural orthodoxy

Answer 36

The cultural expressions articulated by your competition Firms unintentionally compete with one another on similar terms (Institutional isomorphism) eg: for the Phluid Project, prescriptive binary apparel

Answer 37

When all competitors are trying to say they do something better than competitors eg: These trainers make you run faster Leads to imitation and trying to compete through differential USPs

Answer 38

Improved spaces for value propositions for a brand, whether they are created by new technology or by mixing and matching value propositions across categories eg: Whiskey firms all thought consumers wanted whiskey to reflect sophistication, Jack Daniels utilised a blue oceans space with a cultural perspective, rather than a better mousetraps perspective to innovate their brand.

Answer 39

Events in society that create consumer demand for new cultural expressions Social disruptions provide ideological opportunities which cultural expressions can exploit. Industries do not live in a vacuum, things happen that transform our lives to create new demands.

Answer 40

Political, social, economic, environmental and cultural events.

Answer 41

Cultural orthodoxy: Prescriptive binary apparel Social disruption: Intensification of right-wing philosophies Ideological opportunity: Non-prescriptive identity exploration and expression Ideology: Androgynous personhood Myth: Out and proud identity Cultural codes: Labelless store, spectrum of colours Source material: LGBT+ subculture Out and proud media myth

Answer 42

1) Mapping the cultural orthodoxy 2) Identifying the social disruption 3) Unearth ideological opportunity 4) Cull source material 5) Craft the cultural strategy

Answer 43

Discourse analysis | The study of patterns of meaning, their assumptions and broader ideological relationships (Thompson and Hirshman, 1995)

Answer 44

Sociological analyses | eg: Think Tanks showing macrotrends

Answer 45

Identity project interview | Ethnography

Answer 46

Literary analysis Brand genealogy Ethnographic research methods Media analysis

Answer 47

We champion... This is what we stand for... eg: Clearblue We champion a body-positive feminist view of reproduction and women's health. We celebrate women's bodies: sex as playful and fun

Answer 48

When markets are saturated in terms of product/service development eg: Beer industry Your competitor imitate one another in terms of the expression eg: Bud Light as the party beer vs. Corona and Spring Break When the market is dominated by engineer focused functionality When social shifts occur and ideological opportunities emerge eg: Subway

Answer 49

Ideology: Combative solo willpower Motivation myth: 'Just Do It'. When times were tough, showing people they are up for the challenge if they harness their combative solo will power to win Cultural codes: Weiden using adverts to nail the vernacular of each discriminated sports subculture. Eg: the ghetto appropriating the public housing crisis and beat up basketball courts, Latin slums (Ronaldo and World Cup)

Answer 50

In markets where functionality is important When there is significant variance in functionality across brands When functionality is easy for consumers to evaluate eg: Kitchen knives, bicycles

Answer 51

Provide concrete direction and motivation acting as symbolic anchors for question of identity, purpose, aspiration and value.

Answer 52

Stake out social identities based upon key social categories such as social class, gender, race and ethnicity. They convey status, solidarity and community.

Answer 53

On a trip to the US with his grandchildren in 1960 he was struck by the difficulties his daughter was having in taking her child’s pushchair on board the plane. Owen Finlay Maclaren used his knowledge of lightweight load-bearing airplane structures to create a new type of folding stroller. He saw the connection between the mechanisms used in retractable undercarriages of Spitfire aircrafts and his daughter’s problem and began working on the idea. Where previous strollers folded in half, Maclaren’s patented frame folded in half and in on itself – like an umbrella – smaller and lighter than any product that came before. The one-step umbrella-fold design allowed busy parents to quickly fold the stroller with one hand, while holding the baby in the other - forever changing the world of baby transport. In 1965 the first Maclaren buggy was launched. Affectionately branded and trademarked as Baby Buggy®, the name has become the popular eponym to describe the entire category of umbrella folding strollers all over the world, similar to Hoover for vacuum cleaners, Kleenex for tissues, or Google for online search. A design so revolutionary and timeless it has been recognised as a design icon and is treasured in the permanent collection of the Museum of Modern Art in New York (MoMA) and the Design Museum in London, as well as in book references in Phaidon Design Classics, Dyson Icons of Design, and Century Makers as “one of the hundred most clever inventions that have changed our lives over the past century”. Maclaren caters to the sophisticated and knowledgeable parent, discerning in style and conscious of the need for quality and safety. Indeed, our brand tagline is “What a mother wants, What a baby needs”.

Answer 54

Cultural orthodoxy: Spacious, leisurely travel for your baby Social disruption: Changing family structures and routines. Increase in mobility of middle classes, holidaying and air travel. - 1950s golden age of air travel no longer existed. Flying became more accessible and not as glamorous as before. People could travel with no ID cards and decide to board a flight half an hour before take off. No screenings required until 1973. - With the publishing of "The Feminine Mystique" by Betty Friedan in 1963, many women began to leave the role of housewife and start careers of their own. "The Feminine Mystique" chronicled the lives of women who were unhappy and unfulfilled in their traditional roles and encouraged women to seek more. This attitude, along with a changing culture, changed the nature of the typical family. Women began to enter the work force, and, as a result, demanded their husbands assist them more with housework and child care. Ideological opportunity: Smarter, mobile strollers which allowed more convenience and mobility in taking care of children and completing household activities such as shopping. Ideology: Post-Modern Parenthood Myth: What mother wants, what baby needs myth - Parents with two children, need one hand to open the buggy, one to hold the child. - Need easier ways to care - Women back in the work force - Easy to fit in the back of cars Cultural codes: Umbrella design, functional engineering

Answer 55

User led innovation Used combination of artificial intelligence and pyramiding to transfer knowledge to create cyclors. In the 2017 America Cup campaign, the Kiwis placed “huge value” on simulation, sailing the boat virtually on a huge computer screen without it touching the water to test resources without huge time and cost constraints. On the AI simulation, skipper Glenn Ashby moved the wing with an X-box controller – a gadget that transferred to the real boat and became known as Team NZ’s ‘secret weapon’. It was familiar and functional. The cyclor technology was introduced by British-born Bernasconi who brought the idea from his six-year career working as a vehicle dynamics engineer with the McLaren Formula One Racing team. Simon van Velthooven - Olympic bronze cycling medalist used to push the boundaries and give an extra competitive edge. Now cyclors have been ruled out, with rules stating hands must be used on pedals.

Answer 56

IRRIGATION SYSTEMS are essential for dairy farming. The uniqueness and harsh conditions of New Zealand dairying increase the need for firms to harness innovations created by farmers. There are instances where lead-users – innovative farmers – install unique configurations of existing irrigation equipment to increase efficiency. Industry organisation DairyNZ understands the importance of these user-created configurations. Rather than ignore innovative practices and compete with lead-users to devise better irrigation systems, DairyNZ decided instead to work closely with them to develop best practices that could be adopted by the wider dairy-farming community – a process that perfectly illustrates user innovation.

Answer 57

Innovative motion sensor control different to the Xbox and Playstation Did not make an incremental change to the existing GameCube to target experienced gamers, it created simple games for non-gamers and the whole family to enjoy. It made gaming a group activity that was reminiscent of the party atmosphere physical games like Charades and Twister bore. Advantages: Created something consumers did not know they wanted Targeted a new demographic, women married with children wanting them to have an active gaming experience Disadvantages: High cost of innovation

Answer 58

Lead user: Paul Lindsey had daughter Ella in 1999. Need recognition: Had trouble weaning daughter Pyramiding: Nine years at Nickelodeon taught him knowledge of marketing to children and more important their parents. Noted the importance of milestones in children's lives which served as the foundation of Ella's Kitchen 'Kid's First' philosophy with a meaning to put healthy eating at the forefront as well as provide landmarks in their food experience. Saw how television was being seen as the demon in leading the obesity crisis. Lead to question the complexities of the obesity crisis. Knowledge of accountancy meant he knew how to grow the business without fear of collapse. Used invoice financing to make money to repay innovation debts. User-led: Made collaborative improvements to the brand through 'Besties' in the Parent Pulse community where other parents can suggest methods to improve weaning. Lead to the development of Melty Sticks - an alternative to breadsticks that are healthier.

Answer 59

Large financial risk to Paul and family - had to remortgage their home to pay for the initial production Provided an alternative, not a new radical market Fails to provide identity value, only functional value Because the lead user was innovative in this instance, does not mean they will continue to be a future leader (Trott, 2013)

Answer 60

Need was known - risk of failure low Users helped in collaborative improvement Intrinsic motivation keeps the company going Lead-user Paul was at the edge of innovation, gained first mover advantage (Chan et al 2004)

Answer 61

Initiating an innovation is derived from a design improvement rather than new research

Answer 62

Firms and research organisations will not have the monopoly and new ideas of improvements

Answer 63

Linear does not mean sequential with no form of feedback Linear can be self enforcing, simultaneous and interconnected

Answer 64

Chain linked model Activities occur simultaneously with continuous feedback

Answer 65

They say: Sole firms innovate alongside others Scientists interact beyond their firm and to other academics and researchers in the field I say: I agree with this notion. However Balconi over looks the importance of user interaction to improve products and services. EG: FourSquare employed lead users to identify issues with the app which lead to unbundling the product and developing two separate apps to better serve each need.

Answer 66

They say: Netnography is a valuable source of finding lead users I say: I agree (Phluid Project) however feel other methods such as ethnography or identity project interviews can also be valuable

Answer 67

They say: User insights can be misleading eg: Xerox and iBM listened too closely to customers which resulted in failures (CHRISTENSEN, 1997) I say: I agree however only if they listen too closely. Still need to leave room for innovation by the firm to bring something refreshing that consumers may not have thought of

Answer 68

They say: Dichotomy between leading or following customers Technology push cannot be balanced by market pull eg: Apple as a tech push eg: Ella's Kitchen as a market pull I say: Yes there can. Cyclical Innovation Models believe we must blend the two. Firms never completely ignore the need of the market when trying to push new tech. eg: Google Wave tried to push new technology by recognising the demand for social media and this failed HOWEVER Apple pushed new touch screen technologies and applied it to pre-existing market demand

Answer 69

They say: Demographic changes are giving rise to innovative products and services for the elderly eg: Elderly and Student living I say: Some demographic changes can be hard to predict

Answer 70

They say: Toolkits for lead user ness positively affect user's innovation quantity I say: Not necessarily quality innovation?

Answer 71

They say: Combining approaches (ambidexterity) is hard to execute but has been found to be beneficial eg: I say: There always has to be a predominant source and driver of the innovation. eg: using lead users to compliment technological innovations such as Maclaren's daughter testing the product eg: using existing firm innovated technologies to launch your user led innovation such as printing, bottling, distribution technologies in the aggregate marketing system in Ella's Kitchen to develop the product.

Answer 72

CYCLICAL MODEL OF INNOVATION (CIM) Innovation never occurs from just one source Multifaceted approach is optimal Combining hard and soft sciences to create optimal innovation eg: Ella's Kitchen I say: I agree. Even firms who appear to solely innovate are themselves consumers of products and give feedback to the system eg: iPhone, Google search browsers The combination MUST vary between innovations with a focus source - trying to equally balance means synergy is less likely

Answer 73

Cost of getting product suggestions right is high Many fail to get to market at all I say: I agree - however does this mean we should shelve it as it is not the right time and it might be later? eg: 1980s smokeless cigarettes and Google glass. Does it mean the idea was valid? Did the firm innovate without the right consumer need or did the user simply not have enough funds to take the project to market successfully?