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Transcript of Bringing Innovation
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338 JOURNAL OF CONSUMER MARKETING, VOL. 14 NO. 5 1997, pp. 338-361 MCB UNIVERSITY PRESS, 0736-3761
What is the next big business trend? Manufacturing and quality circles?
Total quality management? Reengineering? Mergers and acquisitions?
Downsizing, Right sizing? Cost cutting?
How about none of the above? We have all been there and done that and it
is definitely time to try something new.
What about something as simple as growth? What about innovation as the
next big thing? Corporate leaders across the USA are beginning to realizethat there is no place left to look for that next big thing, and that they must
create it themselves. They are discovering that the only sure-fire way to
ensure long-term stability, satisfy shareholder growth goals, maximize
employee happiness, and stay at the forefront of their industry with a
sustainable, dependable position is to innovate.
The key difference with innovation, relative to past big business trends, is
that innovation cannot be the flavor of the day. Innovation needs to go
beyond being a project and, instead, become part of a companys
mainstream. As we make our way through the innovation age, the time has
come for business leaders to shed their short-term mindsets and expand their
thinking into the future. The development and fostering of an innovationmindset is the only way that the power of innovation (Figure 1) will
continuously bring success to an organization and maximize its risk/return
posture.
Successfully innovative companies have recognized that risks are inherent,
failure is okay, rewards and recognition are critical, and senior management
involvement enhances innovation efforts. They have, in fact, according to
Tom Kuczmarski, in his breakthrough book,Innovation, embraced several
contrarian views and guiding principles that separate the best from the
rest.
Bringing innovation to lifeScott M. Davis and Kristin Moe
Competitive benefits Unique competitive
offerings andadvantage
Preempts competitiveentry
People benefits Expanded employment
opportunities Increased stakeholder,
employee and end-user satisfaction
Energized, creativeand enthusiastic workenvironment
Customerbenefits Helping customers and
end-users better satisfytheir needs and wants
Increased customerloyalty andcommitment
Increased customersatisfaction
Companybenefits Sustainable growth
engine Increased customer
goodwill Enhanced productivity Increased margins Increased revenues Position in new
categories Increased employee
retention Increased positive
press coverage
Figure 1. Power of innovation
Time to t ry somethingnew
An executive summary
for m anagers andexecut ives can be found
at the end of this article
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JOURNAL OF CONSUMER MARKETING, VOL. 14 NO. 5 1997 339
Contrarian views
Contrarian views state that:
(1) Idea generation is the worst way to begin a new product process.
(2) Marketing should never work alone on new product development.
(3) Senior management needs to be the leader of innovation.
(4) Return on innovation investment needs to be measured separately.
(5) New product teams should be compensated differently.
(6) Failure should be celebrated.
Guiding principles
Guiding principles postulate the following:
(1) Failure is an intrinsic part of innovation. Willingness to accept some
failures will inculcate far greater confidence in new product
participants, and, over time, generate higher financial results.
(2) Companies that have a new products strategy in place are more
successful than those that do not. By identifying the financial goals,
strategic roles, and screening criteria that new products should try to
satisfy; innovation will become a permanent part of an organizations
strategy.
(3) Using multi-functional teams with dedicated team members is a critical
requirement for success. This requires people who can focus on,
become immersed in, and are surrounded by innovation. This way, they
have the time, concentration, and motivation to develop an innovation
mindset.
(4) Compensation incentives, which simulate an entrepreneurial
environment, are more apt to motivate participants on new products
teams.
(5) Top management commitment is the cornerstone for successful
innovation. There are three ingredients for top management
commitment:
allocating adequate resources: financial (including R&D and
technology funds), and personnel (assigning some of the best people
to new products);
a perspective and mindset that allows for failures, mistakes, and a
long-term payback; and
an expressively proactive, positive, I-believe-in-you attitude.
(6) Companies that are successful innovators keep track of their results andmeasure their returns on innovation. They stay on top of new product
expenditures. They recalibrate future investments and fine-tune return
expectations annually.
(7) Development of a new products portfolio helps to diversify risks and
provide a balanced investment approach to innovation (Figure 2).
(8) Companies need to begin the new product development process with
consumer or customer problem identification and need intensity
research not idea generation.
(9) Identifying innovation values and new product team norms to guide
behavior and communications among team members is another key
factor. Companies that allow teams to invest adequate time up front to
Keeping t rack of results
Will ingness to acceptsome failures
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340 JOURNAL OF CONSUMER MARKETING, VOL. 14 NO. 5 1997
do this, and are open to the inputs made, help to solidify and empower
new product teams. In addition, understanding team member tangible
and intangible motivators is critical to keeping team members
continuously energized (Figure 3). This coalesces the people power,
which usually lies dormant within a team.
(10) A systematic, well-defined and commonly understood new product
development process is a given not a differentiator for successful
innovation.
To maximize your innovation hit rate, develop your own formula for
success. The best new product companies in the world 3M, Rubbermaid,
S.C. Johnson and Son have adopted processes that have altered their
success potential from luck (i.e., 1 out of 10 successes) to probability (i.e., 7
out of 10 successes). These companies ensure they always have an active,
live pipeline, filled with a balanced portfolio of new products, from low
Costreductions
High
Low
Newness to market
Productrepositionings
Productimprovements
Lineextensions
New to thecompany
New to theworld
HighLow
Newness to company
Increa
singris
k/return
Figure 2. Leveraging a portfolio of new products helps to diversify risk and
maximize returns
Self-accomplishment
Peer recognition
Top management exposure
Career advancement
Compensation
Peer pressure
Part of job description
Mandate or edict
0 1 2 543
4.49
4.06
3.74
3.37
2.97
2.74
2.37
2.06
What motivates a functional team member to work together asa team to develop a new product or service?
Figure 3. Key factors in motivating team members
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JOURNAL OF CONSUMER MARKETING, VOL. 14 NO. 5 1997 341
risk/low return to high risk/high return products. They treat innovation as a
valuable corporate asset. And they do not take a low-risk approach.
Leveraging a new products process within your company that is iterative and
easy to understand will only help its adoption potential throughout your
entire organization. While there are many processes out there, and we
certainly do not mean to offer ours as the only alternative, the eight stepsoutlined below constitute the steps we have consistently found that
effectively take a company from customer-driven needs and wants
assessment to final commercialization:
(1) Planning and direction setting develop a new products strategy that
includes earnings and revenue growth gaps to be filled by new products,
the roles you want new products to fulfil, and an assessment of past new
products to assess lessons learned. In addition, total team integration and
an agreed-on workplan is critical to ensuring everyone is in agreement
before beginning.
(2) Market problems and needs exploration conduct qualitative research
with consumers to explore and identify their needs, gripes, complaints,and hassles in a given product category. These problem areas provide a
focus for idea generation.
(3) Problem-solving and idea generation generate new solutions and
creative approaches that address consumer problems. An idea
describes the purpose of the new product and outlines the benefits that
the new product will provide to consumers.
(4) Concept development and business analysis develop screened ideas
into three-dimensional descriptions of a product. A concept should
describe the product features and attributes, intended use, and primary
benefits perceived by consumers. It outlines the core technologies that
will be used and states general technical feasibility. It addresses how the
product might be positioned against competition and defines the primary
purchaser. In addition, business analysis will help your team to
formulate a market and competitive assessment that projects the
potential size and attractiveness of the new product concept. Included is
a rough-cut, three-year pro-forma that estimates future financial
performance.
(5) Prototype development complete development of the product,
including product performance and consumer acceptance tests.
(6) Plant scale-up determine roll-out equipment needs and manufacture
the product in quantities large enough to identify bugs and problems;
run additional product-performance and quality tests.
(7) Commercialization introduce and sell the product. Initiate awareness-
building and trial stimulation programs to reach the targeted consumer
base.
(8) Post-launch checkup monitor performance of the new product at six
and 12 months after launch and evaluate potential changes or
improvements.
In our many years of experience, working on scores of new product
development projects, cutting across multiple industries, we have
consistently found that most companies have difficulty with steps 1-4
(Figure 4). In fact, more often than not, companies have a very strong
development and commercialization process, but admit to being weak in
determining what to develop.
Many processes
Weaknesses
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342 JOURNAL OF CONSUMER MARKETING, VOL. 14 NO. 5 1997
To this end, the rest of this article and corresponding figures highlight the
key elements of those first four steps. Think of this as an overview of the
cookbook your company should consider adopting for developing new
products going forward. Every time you go through this process, the
cookbook should be updated and new recipes should be added.
Step 1: Planning and direction-settingStep 1: stated objectives
The purpose of Step 1 is to improve your new product success rate by
developing a strategy and identifying the best process for new product
development within your organization. This strategy leverages the strengths
and weaknesses of historical new product development efforts. In addition,
step 1 should clearly identify specific new product goals and objectives to be
achieved over a three-to-five-year period.
Step 1 generally requires about four weeks to complete and entails the
following major activities:
Conducting product and company diagnostics to assess past new product
performance and leverage lessons learned.
Developing an initial new product strategy, including a new product
vision, new product roles and goals, screening criteria, and a financial
growth gap.
Step 1: end results
an agreed on new product strategy,
a customized new product process,
a cross-functional project team,
research categories to explore, and a workplan for executing that
exploration.
Step 1 objectives
Develop detailed conceptdescriptions for top-tier
ideas
Review, test and reviseconcepts with customers
Conduct businessanalysis onapproximately 15-20most attractive newproduct concepts
Determine next steps fortaking top 5-6 newproduct concepts forwardinto prototypedevelopment and testing
Conduct seniormanagement workshopon processenhancements, resourcerequirements anddecision-making process
Prepare idea
generationstimulusmaterials byneed/problemarea
Conduct ideagenerationsessions withkey internal andexternalparticipants
Consolidate,evaluate andscreen ideas
Identify andprioritize top-tier20-25 newproduct ideas
Conductseveral waves
of qualitativeinterviews andfocus groupswith customersand decisioninfluencers
Sythesize andanalyze dataand keylearnings
Identify,prioritize andfully-detail keycustomerproblems,needs andopportunityareas
Craft newproducts vision
Determinefinancialgrowth gap
Define newproductstrategic roles
Establishscreeningcriteria andmeasurements
Identifyopportunityareas andresearchcategories
Set teamnorms, goals,timeline,responsibilitiesand outputexpectations
Develop
overallresearch planand approach
4 weeks 8 weeks 4 weeks 8 weeks
Step 1:Planning and
direction-setting
Step 2:Market problems
and needs exploration
Step 4:Concept development and
business analysis
Step 3:Problem solving and
idea generation
Figure 4. Priming the new product development process steps 1-4
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Step 1: hidden objectives
This step will force senior management to get involved in the process, agree
on long-term goals and objectives, and recognize the level of resources
required to achieve their stated goals and objectives.
Steps 1-4 should each begin with a meeting that officially starts the step and
explains its objectives, activities, and outputs. It is this meeting and theactivities surrounding it, more than anything else, that sets the tone for the
project teams interaction. Team members have an opportunity to get to
know one another and share individual goals for the project through
discussion and team-building exercises.
In addition to the kick-off meeting, the first week during step 1 should be
filled with a review of past activities and planning of future ones. Team
members should present a brief review to the team of current activities in their
functional area. This allows each team member to display his/her expertise
and initiates the cross-functional learning that will take place throughout the
project. The team leader should plan and manage the activities during this
week. Specific team tools that need to be developed include an issue tree, adata matrix, interview guides, and write-up and analysis templates.
Additionally, the team will need to schedule interviews with selected
individuals throughout the company that will take place during step 1.
Developing an agreed-on new product strategy
Overview. A new product strategy is an overall description of the role that
new products will play in satisfying the growth goals of a company.
Specifically, it defines: the financial growth gap and goals that new products
are expected to meet; strategic roles that describe the functions that new
products will perform; and screening criteria that serve as filters in
determining which categories and new product concepts are most attractive
to pursue.
Financial growth gap. A financial growth gap is developed by first
understanding the amount of sales revenue senior management expects to
obtain from new products at the end of a specified period (typically three-
five years). Key inputs for determining this gap are interviews with senior
managers, historical new product performance, current company planning
documents and category performance learnings. The purpose of developing
this growth gap is to provide management with a common understanding of
expected financial contribution of new products (Figure 5).
Vision and strategic roles. A new products vision and strategic roles help a
company specifically identify the areas in which new products will compete
and the potential ways they can help support existing business lines and
establish new markets. Key inputs include interviews with management,
company planning documents, and research on consumer and market trends.
The purpose for developing a new product vision is to define the market for
new products, and the purpose for developing strategic roles is to pinpoint
the methods for defending and expanding the companys current business
(Figures 6-7).
In general, there are two types of roles that are most often used. Requisite
roles direct a company to develop new products that defend and bolster its
current line of products. These are generally line extensions, revisions and
new-to-the company products. Expansive roles direct a company to think
outside the box and develop products that will truly expand the business in
JOURNAL OF CONSUMER MARKETING, VOL. 14 NO. 5 1997 343
Step 1 activities
Satisfying companygrowt h goals
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344 JOURNAL OF CONSUMER MARKETING, VOL. 14 NO. 5 1997
which it competes. Expansive roles, most often, direct a company to look at
new markets, new benefits, new technologies, etc. Obviously, the returns are
greater when developing expansive products, but so is the level of risk. Our
philosophy continues to be finding the right mix of new products to
maximize the risk/return payback.
Screening criteria. Screening criteria are measures for evaluating the potential
of new product opportunities. Key inputs include management perspectives,
historical screens and risk analysis. The purpose for determining new product
screening criteria upfront is to prioritize ideas generated during the project,
and to provide guidelines for objectivity, discipline, and rigor in selecting the
ideas that will move forward to concept development and business analysis
(Figure 8).
Stated senior management commitment. Arguably, the most critical output of
this activity is garnering top management commitment to proceed with the
new product initiative. This includes a consistent and visible commitment to
invest resources, adherence to a formal process as well as strategic and
$1,250,000
$1,000,000
$805,000
$640,000
$385,000
20
15
10
5
5
Totalrevenue
5-yearcompound
annualgrowth rate(percent)
Management cited goal
Projected growth in the1993 strategic plan
Management cited goal
Latest 5-year compoundannual growth rate ismaintained
Compound annual growthrate for current product lineswith no new productintroductions
$385,000
$805,000
$500,000
Input source
Recommended five-yearfinancial growth gap
Example$420,000 = 5year revenue
gap to be filled bynew products orother sources
1995/1996F 2000/2001
Figure 5. Example: financial growth gap (000)
Sets the overall direction for new productdevelopment. Helps make new products apriority and rallying point within the organization
New product vision
Sets specific financial goals for new products
and determines the growth gap to be filled bynew product revenues
New product financialgoals and growth gap
New productstrategic roles
Tied to strategic roles, determine which projectsreceive priorities and further developmentexpenditures
New productscreening criteria
Determines the specific objectives new productsare to fulfil in support of the business strategy
Requisite roles Defend or bolsterexisting businesses
Expansive roles Propel company intonew categories, marketsor businesses
Figure 6. New product strategy components
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financial screens, continuous direction-setting, and autonomy for new
product managers.
If, at the end of step 1, you have not really seen and heard commitment
consistently voiced and displayed, you have two choices: either force senior
management into a room together to reach consensus or pull the plug on the
entire endeavor. Neither of these are ideal options. However, investing six
months of your time without senior management commitment will be a
wasted investment for both you and your company.
End benefits and outputs. Ideally, a new product strategy should include: a
desired three-to-five-year new product revenue target from new products; a
specific vision and strategic roles that new products will fill for the
organization; an estimate of development expenditures and investment
capital needs for at least the next two to three years; and top managements
expectations for, and commitment to, new products.
Without a new product strategy, it is difficult to know in which direction to
head. One idea or concept may appear attractive to one person and not to
another. With an agreed-on strategy, management can more quickly and
effectively focus on the market categories, ideas, and concepts that match
specific strategic roles. It enables managers to focus idea generation on
agreed-on targets, and it cuts down the screening time and prototype
development costs incurred by false starts. In short, the new product strategy
JOURNAL OF CONSUMER MARKETING, VOL. 14 NO. 5 1997 345
To be the leading manufacturer and marketer of high-quality interior building products to provide customerswith optimal solutions to their interior needs
Newproductvision
New productstrategic
roles
New productscreens
Requisite roles Defend or bolsterexisting businesses
Expansive roles Propel company intonew categories, marketsor businesses
Target and obtain aleadership position inselect marketsegments
Become the interiorproducts industrytechnicalperformance leader
Continue tooutperform anddifferentiate from thecompetition inproduct aesthetics
Redesign current interiorsystems to increase easeof installation andaccessibility of interiorproducts
Expand the benefitsprovided by interiorsystems by including non-traditional functionalitybenefits
Become a morecomprehensive providerof interior productsincluding installation andmaintenance services
$225 million in 8 years
New product
financialgoals andgrowth gap
> $18 million inannual revenues
35 per cent GPV NPV > 0/7 years at
10 per cent
Requires < $6 millioninvestment
Leverages currentdistribution
ROI > 24 per cent
Figure 7. New products strategy example: commercial products organization
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346 JOURNAL OF CONSUMER MARKETING, VOL. 14 NO. 5 1997
defines how the growth objectives of the company will be satisfied by
internally developed new products.
Developing a new product process
Overview. Armed with the results of the new products strategy, management
is well equipped with information to reassess the existing new product
process and guide the development of a process that is well tailored to the
companies specific needs. Internal strengths to exploit in generating new
concepts will be identified, the reasons behind past new product
performance are more accurately understood, and the potential internal
impediments can now be addressed. At this point, the key benefits from the
audit are informed decision making and judgment that can be integrated into
the enhanced new products process going forward.
Diagnostic audit. The diagnostic audit is an analytical tool aimed at
improving new product development efforts. Specifically, it is designed to
identify strengths and weaknesses of the new product system and guide
future new product efforts by allowing the new product team to build on
strengths and learn from past projects.
There are three areas of assessment in the diagnostic audit:
(1) Historical new product performance. This includes analysis of revenue
and profit performance, survival and success rates, performance against
objectives and reasons for success or failure (Figure 9).
(2) Strengths and weaknesses assessment. This includes analysis of cost-
related and manufacturing factors, technology-driven factors, demand-
and marketing-related factors, and sales and distribution factors.
Team judgment based on qualitativeresearch
Medium to high fit with brand name
At least one concept in portfolio(a) extends to brand
(b) has time to market < 1 year Portfolio has proper mix of conceptsrequiring low, medium and highdevelopmental/capital costs and peopleresources
Criteria Objective Measure
Address at least one of thebrands new productstrategic roles
Satisfy strategic screensand portfolio assessment
criteria
Strategicalignment
Consumerneed
(a) Positive qualitative consumer researchfindings
(b) Positive quantitative study results
(a) Address a strongconsumer need; benefitrelevant for identifiedtarget groups
(b) Secure high consumerconcept appeal basedupon preliminaryexecution
Technicalbasis
Potential for technological successmedium to high
Development plan/milestone/criteria
established Estimated development time outlined
Identify potentialtechnologies capable ofdelivering the consumer
need
Financialviability
ROI 15.5 per centPV of 4 year CF > 0Year 1 net sales $18 $28MM (line
extension)$28 +MM(NTC or NTW)
Payback Cash flow 3.5 years,NOE 3 years
Assess financial potentialof the concept based onbest available information
Figure 8. New product concept screens
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(3) Development system review. This includes analysis of new product
strategies and growth role, step-by-step new products process, screening
criteria and adaptive new products organization.
To perform a diagnostic audit, conduct the following four steps: first, identify
new products for study; second, gather data from internal reports and external
sources; third, schedule interviews with functional team members and new
product development managers; and fourth, analyze results and develop top-
line system recommendations to integrate into steps 1-4.
The audit will provide information that will guide decision making in
developing new products and the companys overall new product strategy,
and will confirm whether expectations for future new products are realistic.
End benefits and outputs. The audit will reveal and help team members
understand best practices in developing and commercializing new
products. It will seed-out the bad practices that either bottlenecked the
team or led to new product failure.
Forming a cross-functional project team
Overview. If you do not have respect and trust among team members, if you
do not have adequate resources to complete this initiative within the agreed-
JOURNAL OF CONSUMER MARKETING, VOL. 14 NO. 5 1997 347
90/91 91/92 92/93 93/94 94/95 96/97 97/98
Product A Product B Product C Product D Product E Product F Product G Product H Product I Product J Product K Product L Product M Product N Product O
Company XYZ new product introductions
New product scorecard
New products launched: 15a
Still on the market: 10 (66 percent) Two-plus years old and still on the market: 4 (27 percent) Met original net sales projections: 2 (6 TBD) Cumulative net sales ($000): $300,000 New product net sales as a percent of total category: 15 percent Cumulative gross profits ($000): $180,000 New product gross profit as a percent of total category: 13 per cent Cumulative PC ($000)b: $12,000-($23,000) Cumulative NOE ($000)b: $5,000-($28,000) Average year 2 net sales ($000): $11,000
Average year 3 net sales ($000): $7,000
($000s) Total net sales 300 18,000 70,000 102,000 110,000 Total PC* (1,600) (8,500) (16,000) (1,500) 5,000 Total NOE* (800) (5,000) (12,000) (6,000) (4,000)
Note: aPC = Product contribution; b NOE = Net operating earnings
Figure 9. A new product scorecard
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upon time period, if you do not have cross-functional representation or the
levels of commitment described earlier, you may be doomed to failure. We
have consistently found that poor team dynamics and poor hand-offs,
more often than not, result in failure.
Team formationactions to take. We suggest conducting a number of values-
related exercises and teaming events within this step to maximize team
effectiveness. Some of the more impactful exercises we have used, include:
setting a team vision and a team pledge,
agreeing on team values and norms,
understanding one another through several, available tests and exercises
(i.e., Myers-Briggs),
getting to know one anothers spouses or friends,
agreeing on specific roles and responsibilities for each team member as
well as a totally integrated workplan.End benefits and outputs. While many will balk at the idea of conducting
these exercises, we have consistently found that those teams that take the
time to go through this in step 1, have a higher likelihood of success in steps
2-4. Again, trust and strong communications are the two most important
elements of any good relationship, and we would heavily suggest that this is
a worthwhile investment for your team in the short and long run.
Agreeing on research categories to explore
Overview. In this stage, the team will make important strategic decisions
prior to going out into the field to conduct exploratory research. The team
will also finalize the workplan and determine exact resources needed to
complete the entire project.
348 JOURNAL OF CONSUMER MARKETING, VOL. 14 NO. 5 1997
Marketresearch
Productdevelopment
Packaging/engineering
Manufacturing Finance Sales
Marketing
Team leader100 per cent dedicatedto new product project
Team members50 per cent dedicated
Team members20-30 percentdedicated
Figure 10. Example team construct
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Research categories . A research category is nothing more than an area to
explore. For instance, our work with a leading manufacturer of air care
products pointed to aromatherapy as a robust and growing category of
opportunities to pursue. This decision in step 1 led our team ultimately to
develop a line of candle products that has resulted in several hundred million
dollars worth of sales. Strategic roles, category trends and secondaryresearch are designed to help the team decide upon no more than 15-20
research categories to pursue.
Workplan. This workplan lays-out the gameplan of major activities and tasks
to complete going forward. It includes geographic and demographic direction.
Ultimately, the team creates a research roadmap for the rest of the project
(Figure 11).
End benefits and outputs. Having reached total agreement on next steps is
one of the most exciting and binding experiences the team will face. Done
well, research categories and a strong workplan result in a contract between
the team and the rest of the organization.
Creating and presenting a report is a necessity after each step of the new product
development process. This report should be presented to senior management, as
well as selected audiences throughout the organization who will be directly
affected by the outcome of this project. The new product development team
should be responsible for creating and presenting this report. This benefits
individual team members by allowing their functional area managers and peers
to understand the work they have done, and it also benefits the new products
process by highlighting the strength of cross-functional teaming.
Step 2: Market problems and needs exploration
Step 2 stated objectives
The purpose of step 2 is to uncover and determine important needs and
wants that are currently not being met, or not being met well in the market.
JOURNAL OF CONSUMER MARKETING, VOL. 14 NO. 5 1997 349
Area to explore
At t he end of t he step
Develophypotheses
and keyissues
Conduct 10 IDIsto scope issue
areas
Conductworkshop with
internalmanagers to
frame researchfor problem/opportunity
areas
Developmoderatorguide andscreeners
Activatewave Isetup
Preparation
Focus groups
7-8(6-8 consumers
each)
IDIs, dyads andtriads
3 rounds(18 consumers
Total)
Experientialobservations
5-6
Estimated totalconsumers
65-88Surface problemareas/needstates
Wave I
Define problemareas/needstates
Wave II Focus groups
4-5(6-8 consumers
each)
IDIs, dyads andtriads
3 rounds(18 consumers
total)
Prioritize problemareas/need states
Wave III Focus groups
1-2(6-8 consumers
each)
IDIs, dyads andtriads
2 rounds(12 consumers
total)
42-58
18-28
Figure 11. In-depth qualitative research process
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This step helps the team to focus idea generation and concept development
around the issue areas with the highest potential for marketplace success.
Step 2 is time-intensive, research-driven, and generally requires about eight
weeks to complete. Its major objectives include:
Identification of high need intensity unmet needs, wants and opportunities
based on research with primary decision makers and decision influencers.
An understanding of key trends and drivers impacting the various
categories based on non-consumer research and secondary research.
Step 2 end results
A comprehensive understanding of the marketplace.
Five to seven strategically focussed customer opportunity areas that will
serve as a basis for step 3 idea generation.
Step 2 hidden objectives
This step will teach everyone in the organization that the answer does lie in
the marketplace. It will also equip every team member conducting the
research with, arguably, the greatest depth of knowledge of anyone
participating in the category or industry.
Developing a comprehensive understanding of the marketplace
Overview. The majority of this step involves interviewing, both in a one-on-
one and focus group setting. In addition, where appropriate, the team should
conduct in-home interviews and/or on-site viewings to better understand
specific behaviors driving decisions within the category.
Because the cross-functional project team will conduct all of the research
(rather than an outside moderator), it is imperative that thorough, upfront
interview training occurs before the start of the interviews. Additionally,because of the intensive interviewing, and tight timeframe of the step, one
team member should have ownership over the logistics and interview
scheduling for the team.
Interviewing in step 2 is structured by IQA (iterative qualitative analysis).
IQA is the process whereby the team interviews, analyzes, restructures and
re-focuses, interviews again, analyzes again, revises again, and so on, to
form a funnel that starts broad and narrows down to the highest potential
opportunity areas (Figure 12).
The key benefit of this approach is the division it creates in the research
process for analysis and thought. Conducting research can be time and
energy consuming, and sometimes even the best of us gets lost in the data.
IQA ensures that the team breaks out of research, formally analyzes the
results to date, revises the interviewing approach and goals based on the
findings, and then, and only then, begins to research again.
Conducting qualitative research. Wave 1 is typically broad in scope and
focuses the team on understanding each research category. It reveals the
current process for purchasing the product and the buyers perception of
both the product and the brands in the market/industry.
After the analysis of wave 1 findings, wave 2 refocuses efforts to dig even
deeper and better understand specific problems and frustrations within each
research category. Wave 2 also uncovers new categories that may have been
overlooked in wave 1.
350 JOURNAL OF CONSUMER MARKETING, VOL. 14 NO. 5 1997
Step 2 activi ties
Benefit s of IQA
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Wave 2 analysis generally allows the team to develop problem statements
that are then presented to interviewees in wave 3 to confirm both the
accuracy of the problem, and its relative intensity compared to other big
issues. Wave 3 research is used if needed, to prioritize opportunities further
and to make sure the team is in full consensus with step 3 idea generation.
Conducting non-consumer research. While the majority of effort in step 2 is
directed at conducting primary research with decision influencers, equaltime is spent on conducting non-consumer research. Through secondary, and
selected primary research (with industry experts, association, and the like), it
is possible to round out the teams market understanding.
Specific types of information that should be addressed in non-consumer
research are: marketplace trends; emerging technologies; competitive profiles;
and industry facts and figures. This information will allow the team to enhance
its understanding of the market, and evaluate the areas for greatest opportunity.
Selecting five to seven strategically focussed customer opportunity areas
Opportunity area prioritization. Once all the data have been collected, we
recommend that the team invest a solid week to analyze and synthesize the
data and reach consensus on a gameplan for step 3. This should involve a
total integration of learnings from primary research with decision makers
and decision influencers as well as secondary research. The team should
select the highest potential opportunity areas for step 3 idea generation based
on market need intensity of the unsolved problems and/or oppportunities
addressed in each category.
Step 2 report development. The new product development team will present
their findings and recommendations to senior management. At this step 2
report, the teams mindset should focus on the impact their work will have
on the direction of the organization relative to new product development
efforts. This report is a milestone for the project, as it marks the completion
of gathering information, and the start of creating new product ideas.
JOURNAL OF CONSUMER MARKETING, VOL. 14 NO. 5 1997 351
Specific need Specific need Specific need Specific need
Specific need Specific need Specific need Specific need
Need area1
Need area2
Need area3
Need area1
Need area2
Need area3
Analysis
Research
Broad need area exploration
Research
In-depth need area understanding
Specific need Specific need Specific need Specific need
Analysis
Figure 12. IQA (Iterative qualitative analysis)
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Step 3 idea generation
Step 3 stated objectives
The purpose of step 3 is to generate high-potential new product ideas based
on the market needs and wants uncovered in step 2. The emphasis in step 3
should be on generating as many ideas as possible that will potentially solve
problems and satisfy needs identified by consumers during the exploratory
research conducted in step 2. The top 20-25 ideas will move forward to step
4 concept development and business planning.
Step 3 generally requires about four weeks to complete. The major
objectives for this step are:
Develop a comprehensive list of ideas to address needs and
opportunities identified in step 2.
Evaluate each idea against the consumer and strategic and technology
and manufacturing screens identified in step 1.
Choose 20-25 top-tier ideas to take into step 4.
Step 3 end results
Conducting a series of idea-generation sessions.
A list of 20-25 top-tier new product ideas to concept development and
business planning.
Step 3 hidden objectives
This step will force the team to gather ideas and solutions against the top
research categories even ideas that are out of the box or defy the law of
physics. The main purpose of this step is to generate as many ideas as
possible without being limited by the traditional inhibitions that most
companies face (i.e. limited by todays technology, instead of thinking about
the possibilities tomorrow).
Conducting a series of idea generation sessions
Overview. The primary objective of step 3 is to generate new product ideas.
The forum for doing this is a series of idea generation sessions (Figure 13).
352 JOURNAL OF CONSUMER MARKETING, VOL. 14 NO. 5 1997
Step 3 objectives
Step 3 activi ties
Problem-solving packageand homework exercise
A summary of the problem categories and underlyingrationale sent in advance to familiarize participants priorto the idea generation session
Idea-sorting Ideas are sorted according to agreed-to criteria. Theresulting idea ranking is then used for further ideation
Idea-builder Ideas are passed from participant to participant. Ideafragments are added each time with the end output beinga complete idea
Analogy examples Use of analogies to the problem area (e.g., moisturizingwood and moisturizing skin)
Situation simulation Problem situations are presented to consumers to elicitsolutions
Written stimuli Detailed problem description and relevant consumer quotes
Pictureboards/visual stimuli
Project team members brainstorm different ways to visuallydepict the problem. Boards or media are used to generateideas at the beginning of each ideation session
Figure 13. Techniques for idea generation
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These are not focus groups: At first glance, these sessions appear similar to
traditional focus groups. There are 1-2 moderators, 8-10 participants, and a
recorder taking notes. The purpose of a focus group is to identify consumer
problems. The purpose of idea-generation sessions is to identify solutions for
problems and satisfying identified consumer needs. Similar to step 2
research, all idea-generation sessions are conducted by team members.
These are not random brainstorming sessions: Idea-generation sessions are
not traditional open brainstorming exercises. Rather, idea generation is a
focused process aimed at creatively solving consumer-cited problems.
Step 3 set-up and background. Typically six to eight idea-generation sessions
are conducted during step 3. Of these sessions, six to seven are likely to be
conducted with different functional areas of the company, such as marketing,
R&D, packaging, sales, and customer service. The team should also pursue a
separate session with senior management that will provide an open, non-
threatening forum to foster creativity at the highest level. Conducting a
session with this group also continues the buy-in process that is so critical
to new product development.In addition to internal idea-generation sessions, one to two sessions should
be held with the market (consumers, customers, decision influencers, etc.).
These groups sometimes generate the most out of the box ideas, since they
are not working in the industry, and have no preconceived paradigms.
Believe it or not, these idea-generation sessions will provide several hundred
targeted, new product ideas. Some of these ideas will be complete, while
others may still be in idea fragment form. Concurrent to these sessions, the
team will need to edit/maintain continually the list of ideas to ensure that the
ideas captured are complete, robust new product ideas.
Generally, an idea should contain a benefit, an action, and a form. In addition,
we have also seen ideas contain such items as the surface use, technology use,and a segment of the target market to be addressed (Figure 14).
Idea screening (Figure 15). There are two types of idea screening that
should be conducted in step 3. The first screens an idea must pass are
consumer and strategic screens. These screens assess the degree to which
JOURNAL OF CONSUMER MARKETING, VOL. 14 NO. 5 1997 353
Idea generation sessions
An idea is a (1) description of the product, (2) a detailing of what the productdoes, and (3) a listing of the benefit(s) provided to consumers
Example Cellular phone
A telephone that is portable to allow consumers to communicate from any
location, providing freedom and security
Product What the product does
Benefit(s) provided
Example Contact lenses
A miniature plastic film that is placed directly onto each eye to eliminate
the need for consumers to wear eyeglasses
Product What the product does
Benefit(s) provided
Figure 14. What should a new product idea look like?
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ideas satisfy or address new product strategic roles and consumer needs and
wants. The team uses these screens to help answer specific questions: Does
the idea address a strategic role? Does the idea satisfy an unmet consumer
need? Does the idea deliver a meaningful consumer benefit? And, does the
idea have broad, moderate or narrow appeal within the market identified?
Consumer and strategic screens should be viewed as an important
mechanism in selecting the best ideas and screening out the less attractive
ones. If an idea does not solve a problem or fill a need, or if it does not
support the teams strategic roles, then it should not move into step 4.
However, the idea should be held in a catalogue of ideas for future
evaluation, as the market may change, and in ten years, it may become the
hottest selling product on the shelf.
The second type of screens are technology and manufacturing screens.
Typically, only the top 75-100 ideas are subjected to this screen, which is
why the consumer and strategic screens are conducted first. Technology and
manufacturing screens assess the degree to which ideas leverage available
technologies and manufacturing/packaging processes. The team uses the
technology screen to help answer specific questions: Does the idea fit within
354 JOURNAL OF CONSUMER MARKETING, VOL. 14 NO. 5 1997
(4) Needintensity/broad
or narrow(niche) appeal
(5) Fit withconsumerparadigms/
beliefs
(6) Me-tooproduct
(7) Brand fit
(8) Technicalfeasibilityscreening
Highestpotentialideas
Newidea
(3) Deliversmeaningfulconsumer
benefit
Yes
(2) Satisfyexisting or
unmet need
Yes
(1) Fit withstrategic role
Yes
No
Audit trail ofrejected ideas
Less strongneed and
narrow appealPut ideaon hold
Put ideaon hold
Put ideaon hold
No
Yes
Intense needor broadappeal
Yes
No
Figure 15. Idea screening criteria and process
Hottest selling product
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the companys technological capabilities? What are the estimated
development costs for this idea? How difficult is the packaging technology
for this idea? And, what manufacturing capabilities might be required?
Importantly, technology screens, unlike consumer and strategic screens, are
generally not used to filter-out ideas. These screens are used more to sort ideas
into different development and technology categories. They help the projectteam to choose a mix of short-term and long-term ideas into step 4. Ultimately,
the company will need a mix of ideas with short- and long-term technologies to
build a portfolio and pipeline for ongoing new product development (Figure 16).
Narrowing the list of ideas to the top 20-25 ideas
In typical projects, there may be 50-60 ideas that pass all the screens, fit the
strategic roles set up in step 1 and seem like they are winners. Unfortunately,
it would be unrealistic to attempt testing that many ideas as concepts in step
4. Only 25-30 ideas can successfully be tested and assessed in a months
time by any strong research team. The team is responsible for filtering the
50-60 ideas down to only 25-30. All of these ideas have potential and all will
be tested eventually. But, to move on to the next step, narrowing the list is arequirement.
The step 3 report is focused on a description of the idea generation process,
the screening process, and the top 20-25 ideas that will move forward to step
4 concept development and business planning.
Step 4 concept development and business planning
Step 4 stated objectives
The purpose of step 4 is to identify two or more high potential concepts
ready for further development in step 5 based on iterative consumer input
and business attractiveness.
This step generally requires about eight weeks to complete. Its two major
objectives are:
shaping the highest potential concepts from step 3 via iterative
consumer input,
JOURNAL OF CONSUMER MARKETING, VOL. 14 NO. 5 1997 355
Introducing the car seat desk
Organize files and business supplies in your car
Working out of your car can be difficult as a resultof poor organization and storage and the lackof stable writing surface
Now theres a better answer you cansimulate working in the office conveniently
from your car with the new care seat desk.The product provides an efficient andorganized method of storing your files andsupplies allowing you to get back to business.In addition, the car seat desk is equippedwith a removable desktopfor a stable writing surface
Organize files andbusiness supplies in yourcar with the new car seatdesk
The car sear desklocks into place inyour carspassenger seat
Provides an organized and efficientway of storing files and supplies
Introducing the car seat desk
Organize files and business supplies in your car
Working out of your car can be difficult as a resultof poor organization and storage and the lack ofa stable writing surface
Now there is a better answer you cansimulate working in the office conveniently
from your car with the new car seat desk. Theproduct provides an efficient and organizedmethod of storing your files and suppliesallowing you to get back to business.In addition, the car seat desk isequipped with a removabledesktop for a stable writingsurface.
Organize files andbusiness supplies inyour car with the newcar seat desk
The car sear desklocks into place inyour carspassenger seat
Provides an organized and efficientway of storing files and supplies
Introducing the car seat desk
Organize files and business supplies in your car
Working out of your car can be difficult as a resultof poor organization and storage and the lack ofa stable writing surface
Now there is a better answer you cansimulate working in the office convenientlyfrom your car with the new car seat desk. Theproduct provides an efficient and organizedmethod of storing your files and suppliesallowing you to get back to business.In addition, the car seat desk isequipped with a removabledesktop for a stable writingsurface.
Organize files andbusiness supplies inyour car with the newcar seat desk
The car sear desklocks into place inyour cars
assen er seat
Provides an organized and efficientway of storing files and supplies
Introducing the car seat desk
Organize files and business supplies in your car
Working out of your car can be difficult as a resultof poor organization and storage and the lack ofa stable writing surface
Now there is a better answer you can
simulate working in the office convenientlyfrom your car with the new car seat desk. Theproduct provides an efficient and organizedmethod of storing your files and suppliesallowing you to get back to business.In addition, the car seat desk isequipped with a removabledesktop for a stable writingsurface.
Organize files andbusiness supplies inyour car with the newcar seat desk
The car sear desklocks into place inyour cars
assen er seat
Provides an organized and efficientway of storing files and supplies
Figure 16. Example concept
Step 4 objectives
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conducting business analysis on the top 5-7 concepts to develop a full
understanding of the potential for each of these strong concepts.
Step 4 end results
two (or more) high potential concepts with mock-up
designs/formulations that mesh with the existing category portfolio andare ready for full product development,
five (or more) additional deferred high potential concepts that are
documented for future consideration.
Step 4 hidden objectives
This step forces market feedback to direct a companys commercialization
efforts. Again, the team needs to place strong emphasis on allowing the
marketplace to drive the answer not senior management or other internal
forces.
Developing high potential concepts
Overview. Think of this step as inside-outside-inside. The first part of thisstep entails turning the 25-30 ideas into robust concepts. The second part
involves testing those concepts and prioritizing the top 5-7. The last part
involves conducting business analysis on those 5-7 concepts and narrowing
them down to the top 2-3 that should move forward into development.
Concept development and testing. To determine the highest potential
concepts for business analysis, the team will conduct iterative consumer
research, similar to that conducted in step 2. Prior to this research, however,
the team needs to develop fully each of the 25 ideas into concepts, with
written descriptions and renderings. These concept descriptions will become
the stimuli for the consumer focus groups (Figure 16).
The team will begin iterative qualitiative analysis to reveal the most
attractive concepts. These waves of research again act like a funnel, sifting
out the best concepts for successive waves, and leaving the weaker ones
behind. For example: Wave 1 addresses all 25 concepts, these concepts
undergo team analysis, to narrow down to the top 12-16 concepts for wave
2. Wave 2 analysis determines the top 5-10 concepts, and wave 3 solidifies
with the market the high potential of these concepts. Approximately five to
seven concepts are selected during wave 3 for business analysis.
Conducting business analysis. After step 4, all ideas for future development
consideration must display strong market and business attractiveness, based
on extensive preliminary design, cost and sales assessment. These
assessments include market potential, technical and design scenarios, costand manufacturing potential, and all lead to business case financial scenarios
(Figure 17).
The team is ready to develop a business case for each of the five to seven
concepts. The components of each business case should include (Figure 18):
concept statement and renderings,
market sales scenarios,
R&D (technology) scenarios,
packaging scenarios,
manufacturing scenarios,
business financial analysis scenarios.
356 JOURNAL OF CONSUMER MARKETING, VOL. 14 NO. 5 1997
Step 4 activi ties
Business casecomponents
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Business case development should begin with three-year sales estimates.
The team may consider the following guidelines for developing sales
potential estimates:
consumer-based trial and repeat estimates leveraging historical launches,
share estimates based on the existing and potential market size for the
consumer benefit offered by the concept,
JOURNAL OF CONSUMER MARKETING, VOL. 14 NO. 5 1997 357
What range ofsales revenues,
costs, grossmargins and
growth rates mightbe expected from
this concept?
What profitsmight accruefrom bringing
this concept tomarket?
What financialhurdles mightthis concept be
expected toclear?
What are thepotential unit costsfor this concept?
What resourcesmight need to bededicated to bring
this concept tomarket?
What marketingand distribution
costs might haveto be incurred to
launch thisconcept?
What is theestimated marketsize for each ofthese concepts?
What type ofpurchase behaviormight be expectedfor this concept?
What ballparkunit sales volumemight this conceptachieve during its
first 3 years?
What is the estimatedmarket potential for
each of the concepts?
What potentialbusiness
scenarios mightexist for each
concept?
What are the estimatedcosts necessary to
develop and introduceeach concept?
What new product/service concepts should betaken forward to commercialization and launch?
Figure 17. Business analysis helps answer strategic questions
Refinedconcepttext
Refinedconceptdrawings
Umbrellabrandnames
Sub-brandnames
Price
Key consumerlearnings
Potential targetmarkets
Alternativepositionings
Quantitativetest results
Channelconsiderations
Competitiveproducts
EstimatedROI
Presentvalue of cashflow
Salespotential
Deliveredprofit
Productcontribution
Discounted
payback
Consumerbenefitsdesired
Alternativetechnologies
Testingrequirements
Estimateddevelopmenttime
Estimateddevelopmentcost
Alternative
technologies
Riskassessment
Packagingconfigurations
Estimateddesign cost
Estimatedtiming
Estimated unitand refill costs
Capitalrequirements
Estimatedtiming
Manufacturing
Packaging
R&D
Financial
Marketing
Conceptdescription
Figure 18. Elements of business analysis
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benchmarking against businesses with similar characteristics, including
normal sales growth benchmarking.
Technology, packaging and manufacturing scenarios should be developed to
estimate the cost of materials for developing a product. In most cases, the
team will have several options for each scenario, and should therefore
calculate each one. Scenario development was designed to help the projectteam create a list of possible options including costs for input in the financial
scenario calculations.
Financial scenarios should be developed using all of the above input. The
objective of these financial scenarios is not to determine an exact launch
pro-forma financial plan, but rather to aid in the selection of the most
attractive ideas to move forward into development. It is too early to make a
refined estimate of exact costs or develop the accuracy needed at that level.
Selection of top two to three concepts. This rigorous analysis and the market-
based research will point the team into an obvious direction in which two to
three concepts will be recommended to move forward. However, gameplans
should be constructed for the other concepts as they were also very desirable.
The step 4 report should review the process for concept development. It
should describe and focus on each concept scenario developed in business
analysis. After the step 4 meeting, the project team should be ready to select
concepts to move forward into development (Figure 19).
Once step 4 is completed, the team should celebrate and, hopefully, be
recognized by senior management. Additionally, the same team should be
involved in steps 5-8, while also transitioning back to their areas and core jobs.
Conclusion: a few unspoken benefits of this process
The following unspoken benefits can be identified:
Not a penny has been spent yet on product development all productdevelopment efforts will be well grounded in market research.
The project team, that has gone through this process, will now have a
deeper appreciation and understanding of the criticality of new product
development and the iterative steps it takes to complete a full cycle.
If communications have been completely open, then each functional
area should be fully abreast of what is taking place within the process.
Consequently, any transitions will be made more easily and pride of
ownership will be maintained.
Goodwill and public relations has been enhanced for your company just
by being out in the market and talking to hundreds of customers.
An important message has been sent to the organizations stakeholders
regarding the companys future.
Well, now that you have gone through the process with us, you can begin to
understand the amount of rigor, discipline and hard work it takes to make
innovation happen. Put this on your Monday morning to-do list and take the
time to talk about innovation with your colleagues. This next big thing is
likely to have the biggest impact yet.
Scott M. Davis is a partner and Kristin Moe is a consultant, both at Kuczmarski &
Associates, Inc., Chicago, Illinois, USA.
s
JOURNAL OF CONSUMER MARKETING, VOL. 14 NO. 5 1997 359
Estimating t he cost ofmaterials
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Executive summary and implications for managers and executives
Seven actions and three cultural factors needed to make your firm more
innovative
Innovation is the next great business challenge. We have fought our way
through TQM, BPR, JIT and other acronymic business ideas. Now, proclaim
Davis and Moe, we need to embrace the challenge of innovation. And this
new realization is not just a trend, it is a fundamental change in our attitude
to management. Business people must shed their short-term mindsets
and expand their thinking into the future.
So what is this innovation stuff, then? Surely we cannot mean simply
developing more new products and more new brands? Businesses are
already doing that, many with great success. Nor can innovation mean yet
another expensive reorganization of the business. After all where you put
people and what you call them does not represent innovation merely a new
shuffle of the pack followed by a new deal.
A friend of mine once opined that most successful entrepreneurs founded
their success on one great idea. And, the less competitors could copy the
idea, the more money the entrepreneur would make. By idea he didnt just
mean a new product, or even a new service, but often a subtle tweak to the
way of working or a new insight into how to sell whatever it was that the
business made or did.
This friend went on to say that most of these entrepreneurs lost their way
when either the great idea is superseded or when the business reached a size
that required a different approach to management from the all-embracing
everything-is-important attitude of the successful entrepreneur.
I do not know whether this opinion contains any truth nor do I suggest an
urgent research programme to find out how to let entrepreneurs have a
second great idea. But I do feel that business success is nearly alwayspredicated on innovation. A firm without innovation becomes doomed to
decline and eventual closure or else absorption into some larger or more
dynamic organization.
Davis and Moe present a polemic about creating a structure and culture of
innovation in a firm. Their focus is on the new product rather than a broader
concept of innovation embracing service delivery, organizational structure
and human resources. The principles, however, apply regardless of how we
define innovation.
To embrace innovation we need to take on board seven key actions and
acknowledge three cultural requirements.
The seven actions:
(1) Have a new product development strategy. Davis and Moe point out that
firms with a new product strategy succeed more than those without.
Even better develop an innovation strategy stretching beyond mere
material creation.
(2) Develop a pay structure that rewards innovation and creativity. Do not
take new product development or innovation and put it in a tidy little box
leaving most staff to plod on doing the same old things day in, day out.
(3) Avoid allocating innovation to a particular function. Innovation is not
marketing or finance or production. The profitable new idea can come
from anywhere in the business. Create cross-functional teams and make
innovation a part of everybodys job.
360 JOURNAL OF CONSUMER MARKETING, VOL. 14 NO. 5 1997
This summary has been
provided to allowmanagers and execut ives
a rapid appreciation of
the content of thisarticle. Those w ith a
particular interest in t he
topic covered may then
read t he arti clein toto totake advantage of the
more comprehensive
descript ion of theresearch undertaken and
its result s to get the full
benefit of the m aterial
present
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(4) Count the innovation beans. Measure your return on innovation and
measure the benefits that seeking the new brings to productivity and
loyalty in employees. Challenge finance people to finds ways to deliver
rather than slam the brakes on all the time.
(5) Be collegiate rather than authoritarian and hierarchical. Try to bring
everyone into discussions and take the trouble to listen to what staff atany level say.
(6) Recruit innovators. Do not get hung up on qualifications and education.
Look out at the real world and realize that most entrepreneurs and
innovators do not hold higher degrees from business schools. Yet it is
their ideas that change the world.
(7) Let people do their own thinking. Rather than giving them some pat
solution help them solve problems and face challenges themselves. They
will have more fun and you will get more out of them.
Three cultural requirements:
(1) Lead by example. Davis and Moe insist that, without senior
management commitment to and involvement in innovation, there willnot be any. And commitment does not just mean sending out a memo
saying the board is committed. It means rolling up your sleeves and
getting involved in the nitty-gritty of the firms thinking.
(2) Allow people to fail. If you have a culture where people are terrified of
making a mistake or failing at some project then you will have no
meaningful innovation. Davis and Moe describe how our wider culture
affects our attitude to failure. Too often we see failure as a character
flaw or a stigma rather than a reflection of someones efforts to succeed.
In allowing failure, though, you must set in place the support and
methods for people to learn from failure. It may not be wrong to fail but
people need to take time out to think about why they failed. The more
your organization assesses its failures the more it will learn how not to
fail and that means more successful innovation.
(3) Dont get obsessed by secrecy, privacy and protection. Open up
discussions and debates in your business. Do not lock doors and hold
exclusive meetings. Allow staff free access to the experiences and
knowledge that exists in your business. There should be nothing beyond
the privacy of personnel files that employees cant see and understand.
The more they can know, the more they will get involved and the more
chance you have of getting their best efforts and best ideas.
Innovation is not a system it is a way of working
Although Davis and Moe present a structure for innovation in a new product
development context, what underlies their process is a different attitude to
work. Successful innovators are more prevalent where the society in which
they work sees innovation as a core activity. In places like Silicon Valley
innovation is celebrated and people go there because they anticipate support
for ideas and the chance to play a part in leading the future of business and
technology.
If our information age is indeed an innovation age then successful
organizations will create structures and employ staff with new ideas in mind.
For those that dont the future is more frightening and less lucrative. Where
do you want to be?
(A prcis of the article Its not simply change, its evolution. Supplied
by Marketing Consultants for MCB University Press)
JOURNAL OF CONSUMER MARKETING, VOL. 14 NO. 5 1997 361