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User-­‐driven	
  	
  Innova.on	
  


          Listen	
  to	
  your	
  customers	
  


Peter	
  Møller	
  
Consultant,	
  Keynote	
  Speaker:	
  
LinkedIn:	
  dk.linkedin.com/in/pmoller	
  
Twi4er:	
  h4p://twi4er.com/tweete_pete	
  


	
  I	
  fight:	
  
                     	
  "We	
  can	
  not	
  do	
  that	
  ..."	
  
                     	
  ”This	
  is	
  how	
  we	
  always	
  have	
  done	
  ..."	
  
                     	
  ”This	
  is	
  how	
  you	
  do	
  things	
  in	
  this	
  industry	
  ..."	
  
                     	
  "There	
  are	
  too	
  many	
  doing	
  this	
  already	
  ...”	
  

                                                                                                           Pic:	
  Isamizdat	
  CC	
  
Userdriven	
  Innova.on	
  
                 There	
  is	
  nothing	
  more	
  difficult	
  to	
  take	
  in	
  
                 hand,	
  more	
  perilous	
  to	
  conduct,	
  or	
  more	
  
                 uncertain	
  in	
  its	
  success,	
  than	
  to	
  take	
  the	
  lead	
  
                 in	
  the	
  introduc?on	
  of	
  a	
  new	
  order	
  of	
  things…	
  	
  	
  

                 -­‐	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  Niccolo	
  Machiavelli;	
  ”The	
  Prince”	
  
Innova.on	
  
-­‐	
  defined	
  	
  


                  Innova.on	
  is	
  to	
  use	
  crea.vity	
  
                  of	
  employees	
  and	
  corporate	
  
                  resources	
  to	
  make	
  new	
  things	
  
                  happen	
  ...	
  	
  
Innova.on	
  
                -­‐	
  defined	
  



                                     To	
  go	
  from	
  a	
  new	
  idea	
  	
  –	
  
                                    To	
  a	
  new,	
  usefull	
  solu3on!	
           	
  




Pic:	
  ralphbijker	
  
Innova.on	
  
-­‐	
  where?	
  



       -­‐ Where	
  in	
  the	
  value-­‐chain?	
  What	
  type	
  of	
  
                                      	
  innova.on?    	
  
             	
  -­‐	
  How	
  big	
  a	
  ”leap”,	
  what	
  level	
  of	
  
                                  	
  innova.on?	
  	
  
Innova.on	
  
-­‐	
  type	
  of	
  innova.on	
  




                                •  Product	
  
                                •  Process	
  
                                •  Procedure	
  
Innova.on	
  
-­‐	
  type	
  of	
  innova.on	
  




                                •  Product	
  

Product	
  development	
  –	
  classic	
  innova?on…	
  The	
  idea	
  of	
  a	
  new	
  
product.	
  
Completely	
  new	
  products	
  or	
  small	
  changes	
  to	
  exis?ng	
  products…	
  	
  	
  
Innova.on	
  
-­‐	
  type	
  of	
  innova.on	
  




                                     •  Process	
  
Innova?ons	
  in	
  the	
  produc?on	
  process…	
  Can	
  we	
  do	
  things	
  
differently?	
  
Example:	
  FedX	
  buys	
  Kinkos	
  and	
  is	
  now	
  sending	
  documents	
  
digitally	
  across	
  the	
  US,	
  prints	
  them	
  -­‐	
  and	
  delivers.	
  Saves	
  a	
  lot	
  of	
  
transporta?on	
  costs…	
  	
  	
  	
  
Innova.on	
  
-­‐	
  type	
  of	
  innova.on	
  




                                •  Procedure	
  
Innova?ons	
  in	
  the	
  business	
  model…	
  Can	
  we	
  change	
  the	
  
tradi?onal	
  way	
  we	
  do	
  commerce?	
  
Example:	
  Itunes	
  changed	
  the	
  way	
  people	
  consume,	
  store	
  and	
  
buy	
  music…	
  	
  	
  How	
  about	
  soWware	
  that	
  is	
  financed	
  through	
  
voluntary	
  dona?ons…?	
  	
  	
  	
  
Innova.on	
  
-­‐	
  level	
  of	
  innova.on	
  




                            •  Incremental	
  
                            •  Dis.nc.ve	
  
                            •  Breakthrough	
  
Innova.on	
  
-­‐	
  Incremental	
  
Innova?on	
  in	
  small	
  steps,	
  one	
  at	
  the	
  ?me…	
  Small	
  improvements	
  
to	
  exis?ng	
  products!	
  	
  
 	
  	
  Innova.on	
  	
  
   -­‐	
  Dis.nk.ve	
  
    Extend	
  the	
  possibili?es	
  of	
  an	
  	
  exis?ng	
  plaYorm…	
  ‘Horizontal’	
  
    innova?on.	
  	
  
Innova.on	
  
-­‐	
  Breakthrough	
  

The	
  revolu?onizing,	
  never	
  seen	
  before	
  inven?ons…	
  




               Telephone	
                                   Penicillin	
  
Innova.on	
  
-­‐	
  level	
  of	
  innova.on	
  

The	
  revolu?ons…	
  Things	
  that	
  change	
  our	
  everyday	
  life	
  –	
  might	
  
not	
  always	
  	
  come	
  as	
  breakthrough	
  innova?ons!	
  	
  




               Telefonen	
  
Innova.on	
  
-­‐	
  one	
  comment	
  


There	
  is   	
  NOT	
  a	
  type	
  or	
  level	
  of	
  
innova.on	
  that	
  is	
  “beNer”	
  or	
  more	
  
innova.ve	
  than	
  others!	
  
Breakthroughs	
  are	
  nice,	
  but	
  need	
  luck!	
  Small	
  incremental	
  
innova?ons	
  might	
  oWen	
  be	
  the	
  realis?c,	
  helpful	
  alterna?ve.	
  
Adding	
  more	
  colours	
  than	
  black	
  might	
  considerably	
  expand	
  our	
  
markets...	
  	
  	
  	
  	
  
Innova.on	
  
-­‐	
  is	
  important!	
  
Innova.on	
  
-­‐	
  why?	
  



                         Because	
  it’s	
  an	
  important
                  	
  prerequisite	
  for	
  future	
  growth!	
  
                                                              	
  

                          …ask	
  McKinsey	
  &Co	
  	
  
Innova.on	
  
-­‐	
  why?	
  

                  •    Expand	
  market	
  share	
  
                  •    Expand	
  exis.ng	
  markets	
  
                  •    Create	
  new	
  markets	
  
                  •    Gain	
  access	
  to	
  other	
  markets	
  
                  •    Increased	
  profit	
  
                  •    Reduce	
  Costs	
  
                  •    Develop,	
  aNract	
  and	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
                       	
  retain	
  talent	
  
Innova.on	
  
-­‐	
  is	
  important,	
  but	
  fails	
  anyway!	
  


   60%	
  	
  	
  -­‐	
  	
  of	
  all	
  product	
  development	
  is	
  stopped	
  early	
  
   40%	
  	
  	
  -­‐	
  	
  of	
  all	
  new	
  products,	
  fail	
  and	
  are	
  withdrawn	
  	
  	
  	
   	
  
   	
             	
  	
  	
  	
  	
  	
  	
  	
  	
  from	
  the	
  market	
  	
  	
  
   75%	
  	
  	
  -­‐	
  	
  of	
  investments	
  in	
  innova.ons	
  are	
  lost	
  

          Clayton	
  Christensen,	
  The	
  Innovators	
  Solu.on	
  
Innova.on	
  
-­‐	
  is	
  important,	
  but	
  fails	
  anyway!	
  




                  	
     75%	
  	
  -­‐	
  	
  of	
  all	
  investments	
  in	
  innova3on	
  	
  	
  
                           	
     ”down	
  the	
  drain”
                                                       	
  
       Clayton	
  Christensen,	
  The	
  Innovators	
  Solu.on	
  
Innova.on	
  
-­‐	
  Why	
  does	
  it	
  go	
  wrong?	
  


        •    Not	
  mee.ng	
  customer	
  needs	
  	
  
        •    Lack	
  of	
  technological	
  skills	
  and	
  understanding	
  
        •    Ineffec.ve	
  implementa.on	
  	
  
        •    Poor	
  .ming	
  	
  
        •    The	
  culture	
  does	
  not	
  support	
  innova.on	
  
        •    Wrong	
  mo.ves	
  for	
  innova.on	
  	
  
Innova.on	
  
-­‐	
  Hvordan	
  undgår	
  vi	
  det	
  går	
  galt?	
  



                  “People	
  don’t	
  buy	
  products	
  
                  they	
  buy	
  solu.ons	
  to	
  
                  problems”	
  
                  THEODOR	
  LEVITT,	
  1975	
  
Innova.on	
  
How	
  can	
  we	
  do	
  beNer?	
  


    •  Strategy	
  –	
  plan	
  
    •  Meet	
  customer	
  needs	
  –	
  ask	
  
    •  Understand	
  the	
  organiza.on,	
  its	
  competencies,
       	
  capabili.ues	
  and	
  culture	
  -­‐	
  look	
  
    •  Plan	
  the	
  implementa.on	
  -­‐	
  go	
  


   Understand	
  the	
  customer	
  –	
  and	
  our	
  selfs	
  
Userdriven	
  Innova.on	
  
Case:	
  Emporia	
  	
  



   Small	
  producer	
  of	
  mobile	
  phones.	
  
   Develops	
  and	
  sells	
  phones	
  that	
  are	
  
   ergonomically	
  well	
  thought	
  out	
  and	
  
   are	
  targeted	
  towards	
  older	
  people	
  
Userdriven	
  Innova.on	
  
Case:	
  Emporia	
  	
  


  How	
  does	
  Emperia	
  meet	
  the	
  criteria	
  for	
  successful
  	
  innova.on?	
  

         •    Well	
  defined	
  strategy	
  
         •    Insight	
  and	
  interest	
  into	
  the	
  customer's	
  needs	
  
         •    They	
  master	
  the	
  technology	
  
         •    They	
  have	
  a	
  good	
  basis	
  for	
  implementa.on	
  
Userdriven	
  Innova.on	
  
Case:	
  Emporia	
  	
  


  The	
  product:	
  
         • 	
  One	
  buNon	
  per	
  func.on	
  
         • 	
  Few	
  basic	
  func.ons	
  
         • 	
  Large	
  numbers	
  
         • 	
  Large	
  display	
  
         • 	
  Large	
  buNons	
  
Userdriven	
  Innova.on	
  
Case:	
  Emporia	
  	
  


  The	
  product:	
  
         • 	
  One	
  buNon	
  per	
  func.on	
  
         • 	
  Few	
  basic	
  func.ons	
  
         • 	
  Large	
  numbers	
  
         • 	
  Large	
  display	
  
         • 	
  Large	
  buNons	
  

                 Consumer insight!
Userdriven	
  Innova.on	
  
Case:	
  Emporia	
  	
  

      Communica.on	
  addaptet	
  to	
  the	
  	
  segment…	
  



Needs	
  
Userdriven	
  Innova.on	
  
Case:	
  Emporia	
  	
  

                      Reverse	
  innova.on…?	
  
Userdriven	
  Innova.on	
  
Case:	
  Emporia	
  	
  




                           NO!	
  
    Breakthrough	
  to	
  the	
  target	
  group!	
  
    Incremental	
  and	
  dis3nc3ve	
  on	
  the	
  product	
  side!	
  
Userdriven	
  Innova.on	
  
The	
  approach	
  



    Let	
  the	
  market	
  be	
  the	
  founda.on	
  for
      	
  understanding	
  the	
  full	
  process	
  of	
  
                             	
  innova.on	
  	
  
           -­‐	
  From	
  idea	
  to	
  finished	
  product
                                                         	
  
Market-­‐driven	
  Innova.on	
  
…myths	
  


     • 	
  The	
  customers	
  don’t	
  know	
  what	
  they	
  want…	
  

     • 	
  The	
  customers	
  can’t	
  express	
  their	
  needs…	
  

     • 	
  The	
  customers	
  have	
  needs	
  they	
  don’t	
  know…	
  

  …	
  companys	
  don’t	
  know	
  what	
  the	
  customers	
  want
       	
  either!	
  So	
  it	
  can’t	
  hurt	
  to	
  ask…!!	
  	
  
Market-­‐driven	
  Innova.on	
  
-­‐	
  Road	
  map	
  


 Plan	
                                                                                                    Implement	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  



             6.	
  Select,	
  deselect,	
  priori3ze	
  -­‐
             	
  and	
  set	
  in	
  progress	
  




             5.	
  Brainstorm	
  innova3ons	
  that
             	
  meets	
  those	
  needs	
  



                                                     4.	
  Rate	
  the	
  relevance	
  of	
  results	
  
                                                     for	
  clients	
  and	
  iden3fy	
  unmet	
  
                                                     needs	
  
Market-­‐driven	
  Innova.on	
  
…last	
  comment	
  

There	
  is   	
  NOT	
  a	
  place	
  in	
  an	
  organiza.on	
  
which	
  can	
  not	
  par.cipate	
  to,	
  or	
  with	
  innova.ons!	
  

Therefore:	
  Start	
  to	
  build	
  a	
  innova.ve	
  culture
  	
  through	
  out	
  Your	
  en.re	
  organiza.on!	
  	
  
Market-­‐driven	
  Innova.on	
  
…Usefull	
  liNerature	
  
Resources	
  
…thanks	
  to:	
  
Google	
                           Theodor	
  LeviN	
  
Clayton	
  N.	
  Christensen	
     Apple	
  
McKinsey	
  &	
  Co	
              Microsoj	
  
Flickr/Crea.ve	
  Commons	
        Machiavelli	
  	
  
Emporia	
  	
                      Tim	
  
isamizdat	
                        Ralph	
  Bijker	
  




                                     What	
  I	
  fight:	
  

                                     "We	
  can	
  not	
  that	
  ..."	
  
                                     ”This	
  is	
  how	
  we	
  always	
  have	
  done	
  ..."	
  
                                     ”This	
  is	
  how	
  you	
  do	
  things	
  in	
  this	
  industry	
  ..."	
  
                                     "There	
  are	
  too	
  many	
  doing	
  this	
  already	
  ...”	
  

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Userdriven innivation - listen to your customers

  • 1. User-­‐driven    Innova.on   Listen  to  your  customers   Peter  Møller   Consultant,  Keynote  Speaker:   LinkedIn:  dk.linkedin.com/in/pmoller   Twi4er:  h4p://twi4er.com/tweete_pete    I  fight:    "We  can  not  do  that  ..."    ”This  is  how  we  always  have  done  ..."    ”This  is  how  you  do  things  in  this  industry  ..."    "There  are  too  many  doing  this  already  ...”   Pic:  Isamizdat  CC  
  • 2. Userdriven  Innova.on   There  is  nothing  more  difficult  to  take  in   hand,  more  perilous  to  conduct,  or  more   uncertain  in  its  success,  than  to  take  the  lead   in  the  introduc?on  of  a  new  order  of  things…       -­‐                                                                  Niccolo  Machiavelli;  ”The  Prince”  
  • 3. Innova.on   -­‐  defined     Innova.on  is  to  use  crea.vity   of  employees  and  corporate   resources  to  make  new  things   happen  ...    
  • 4. Innova.on   -­‐  defined   To  go  from  a  new  idea    –   To  a  new,  usefull  solu3on!     Pic:  ralphbijker  
  • 5. Innova.on   -­‐  where?   -­‐ Where  in  the  value-­‐chain?  What  type  of    innova.on?    -­‐  How  big  a  ”leap”,  what  level  of    innova.on?    
  • 6. Innova.on   -­‐  type  of  innova.on   •  Product   •  Process   •  Procedure  
  • 7. Innova.on   -­‐  type  of  innova.on   •  Product   Product  development  –  classic  innova?on…  The  idea  of  a  new   product.   Completely  new  products  or  small  changes  to  exis?ng  products…      
  • 8. Innova.on   -­‐  type  of  innova.on   •  Process   Innova?ons  in  the  produc?on  process…  Can  we  do  things   differently?   Example:  FedX  buys  Kinkos  and  is  now  sending  documents   digitally  across  the  US,  prints  them  -­‐  and  delivers.  Saves  a  lot  of   transporta?on  costs…        
  • 9. Innova.on   -­‐  type  of  innova.on   •  Procedure   Innova?ons  in  the  business  model…  Can  we  change  the   tradi?onal  way  we  do  commerce?   Example:  Itunes  changed  the  way  people  consume,  store  and   buy  music…      How  about  soWware  that  is  financed  through   voluntary  dona?ons…?        
  • 10. Innova.on   -­‐  level  of  innova.on   •  Incremental   •  Dis.nc.ve   •  Breakthrough  
  • 11. Innova.on   -­‐  Incremental   Innova?on  in  small  steps,  one  at  the  ?me…  Small  improvements   to  exis?ng  products!    
  • 12.      Innova.on     -­‐  Dis.nk.ve   Extend  the  possibili?es  of  an    exis?ng  plaYorm…  ‘Horizontal’   innova?on.    
  • 13. Innova.on   -­‐  Breakthrough   The  revolu?onizing,  never  seen  before  inven?ons…   Telephone   Penicillin  
  • 14. Innova.on   -­‐  level  of  innova.on   The  revolu?ons…  Things  that  change  our  everyday  life  –  might   not  always    come  as  breakthrough  innova?ons!     Telefonen  
  • 15. Innova.on   -­‐  one  comment   There  is  NOT  a  type  or  level  of   innova.on  that  is  “beNer”  or  more   innova.ve  than  others!   Breakthroughs  are  nice,  but  need  luck!  Small  incremental   innova?ons  might  oWen  be  the  realis?c,  helpful  alterna?ve.   Adding  more  colours  than  black  might  considerably  expand  our   markets...          
  • 16. Innova.on   -­‐  is  important!  
  • 17. Innova.on   -­‐  why?   Because  it’s  an  important  prerequisite  for  future  growth!     …ask  McKinsey  &Co    
  • 18. Innova.on   -­‐  why?   •  Expand  market  share   •  Expand  exis.ng  markets   •  Create  new  markets   •  Gain  access  to  other  markets   •  Increased  profit   •  Reduce  Costs   •  Develop,  aNract  and                      retain  talent  
  • 19. Innova.on   -­‐  is  important,  but  fails  anyway!   60%      -­‐    of  all  product  development  is  stopped  early   40%      -­‐    of  all  new  products,  fail  and  are  withdrawn                              from  the  market       75%      -­‐    of  investments  in  innova.ons  are  lost   Clayton  Christensen,  The  Innovators  Solu.on  
  • 20. Innova.on   -­‐  is  important,  but  fails  anyway!     75%    -­‐    of  all  investments  in  innova3on         ”down  the  drain”   Clayton  Christensen,  The  Innovators  Solu.on  
  • 21. Innova.on   -­‐  Why  does  it  go  wrong?   •  Not  mee.ng  customer  needs     •  Lack  of  technological  skills  and  understanding   •  Ineffec.ve  implementa.on     •  Poor  .ming     •  The  culture  does  not  support  innova.on   •  Wrong  mo.ves  for  innova.on    
  • 22. Innova.on   -­‐  Hvordan  undgår  vi  det  går  galt?   “People  don’t  buy  products   they  buy  solu.ons  to   problems”   THEODOR  LEVITT,  1975  
  • 23. Innova.on   How  can  we  do  beNer?   •  Strategy  –  plan   •  Meet  customer  needs  –  ask   •  Understand  the  organiza.on,  its  competencies,  capabili.ues  and  culture  -­‐  look   •  Plan  the  implementa.on  -­‐  go   Understand  the  customer  –  and  our  selfs  
  • 24. Userdriven  Innova.on   Case:  Emporia     Small  producer  of  mobile  phones.   Develops  and  sells  phones  that  are   ergonomically  well  thought  out  and   are  targeted  towards  older  people  
  • 25. Userdriven  Innova.on   Case:  Emporia     How  does  Emperia  meet  the  criteria  for  successful  innova.on?   •  Well  defined  strategy   •  Insight  and  interest  into  the  customer's  needs   •  They  master  the  technology   •  They  have  a  good  basis  for  implementa.on  
  • 26. Userdriven  Innova.on   Case:  Emporia     The  product:   •   One  buNon  per  func.on   •   Few  basic  func.ons   •   Large  numbers   •   Large  display   •   Large  buNons  
  • 27. Userdriven  Innova.on   Case:  Emporia     The  product:   •   One  buNon  per  func.on   •   Few  basic  func.ons   •   Large  numbers   •   Large  display   •   Large  buNons   Consumer insight!
  • 28. Userdriven  Innova.on   Case:  Emporia     Communica.on  addaptet  to  the    segment…   Needs  
  • 29. Userdriven  Innova.on   Case:  Emporia     Reverse  innova.on…?  
  • 30. Userdriven  Innova.on   Case:  Emporia     NO!   Breakthrough  to  the  target  group!   Incremental  and  dis3nc3ve  on  the  product  side!  
  • 31. Userdriven  Innova.on   The  approach   Let  the  market  be  the  founda.on  for  understanding  the  full  process  of    innova.on     -­‐  From  idea  to  finished  product  
  • 32. Market-­‐driven  Innova.on   …myths   •   The  customers  don’t  know  what  they  want…   •   The  customers  can’t  express  their  needs…   •   The  customers  have  needs  they  don’t  know…   …  companys  don’t  know  what  the  customers  want  either!  So  it  can’t  hurt  to  ask…!!    
  • 33. Market-­‐driven  Innova.on   -­‐  Road  map   Plan   Implement                       6.  Select,  deselect,  priori3ze  -­‐  and  set  in  progress   5.  Brainstorm  innova3ons  that  meets  those  needs   4.  Rate  the  relevance  of  results   for  clients  and  iden3fy  unmet   needs  
  • 34. Market-­‐driven  Innova.on   …last  comment   There  is  NOT  a  place  in  an  organiza.on   which  can  not  par.cipate  to,  or  with  innova.ons!   Therefore:  Start  to  build  a  innova.ve  culture  through  out  Your  en.re  organiza.on!    
  • 36. Resources   …thanks  to:   Google   Theodor  LeviN   Clayton  N.  Christensen   Apple   McKinsey  &  Co   Microsoj   Flickr/Crea.ve  Commons   Machiavelli     Emporia     Tim   isamizdat   Ralph  Bijker   What  I  fight:   "We  can  not  that  ..."   ”This  is  how  we  always  have  done  ..."   ”This  is  how  you  do  things  in  this  industry  ..."   "There  are  too  many  doing  this  already  ...”