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The Consumer in the InnovationProcessInnovation, Markets and the Consumer

Mark Cavender

Objective

Understand the role of consumers in the current innovation processes: • Co-creation approaches

• Lead users

• End-users

• Customer-centricity

Agenda

Innovation and the Technology Adoption Life Cycle (TALC)

Consumer Roles in Innovation

Tips and Tricks: Optimizing Consumer Input Across the TALC

Agenda

Innovation and the Technology Adoption Life Cycle (TALC)

Consumer Roles in Innovation

Tips and Tricks: Optimizing Consumer Input Across the TALC

Consumers Adopt Technology in Different Ways

Innovators - Technology Enthusiasts

Early Adopters - The Visionaries

Early Majority - Pragmatists

Late Majority - Conservatives

Laggards - Skeptics

Technology Adoption Life Cycle

Technology Adoption

Life Cycle

Indefinitely elastic

middle periodM

arke

t G

row

th

Time

Main Street

Thriving Market

Maturing Market

Declining MarketFault

Line!

End of Life

Early

Market Bowling Alley

Tornado

Philips, Innovation and You

http://www.youtube.com/watch?v=xL0T5FU5c1U#t=70

Four Innovation Zones

Disruptive

Innovation

Application

Innovation

Product

Innovation

PlatformInnovation

Enhancement

Innovation

Integration

Innovation

Experiential

Innovation

Process

Innovation

Marketing

Innovation

Business Model

Innovation

Line Extension

Innovation

Value Engineering

Innovation

Harvest& Exit

Renewal Innovation

Disruptive

Innovation

Application

Innovation

Product

Innovation

PlatformInnovation

Enhancement

Innovation

Integration

Innovation

Experiential

Innovation

Process

Innovation

Marketing

Innovation

Business Model

Innovation

Line Extension

Innovation

Value Engineering

Innovation

Harvest& Exit

Renewal InnovationRenewal Innovation

Product

Leadership

Zone

Operational

Excellence

Zone

Customer

Intimacy

Zone

Category

Renewal

Zone

Return on Innovation

How can we get a return on innovation?

Differentiation Neutralization

Productivity

Agenda

Innovation and the Technology Adoption Life Cycle (TALC)

Consumer Roles in Innovation

Tips and Tricks: Optimizing Consumer Input Across the TALC

Innovation Has Changed in the 21st Century

From an isolated laboratory To a social and participative approach

Technology Enables Collaboration

From Systems of Record To Systems of Engagement

Co-Creation

A business strategy focusing on customer experience and interactive relationships. Co-creation allows and encourages a more active involvement from the customer to create a value-rich experience

...is the chance for others to complete the work that you started, going well beyond what you envisioned or intended"• Henry Chesbrough

Co-Creation Types

Co-Creation – Guiding Principles

Co-Creation

http://www.youtube.com/watch?v=VlD2EyW5W_k

Lead Users

Early adopters of new methods, products, and technologies.

Their needs and choices usually portend the needs and choices of the general market

Provide significant opportunities for introduction of innovative products.

End User

Person or organization that actually uses a product, as opposed to the person or organization that authorizes, orders, procures, or pays for it.

Customer-Centricity

Creating a positive consumer experience at the point of sale and post-sale.

Differentiate from competitors who do not offer the same experience.

Technology and Customer Driven Innovation at Intuit

http://www.youtube.com/watch?v=3S3RcYQm2jw

Agenda

Innovation and the Technology Adoption Life Cycle (TALC)

Consumer Roles in Innovation

Tips and Tricks: Optimizing Consumer Input Across the TALC

Innovation Across the TALC

Cus

tom

erS

atis

fact

ion

Time

Enablers

“Delighters”

Price / Performance

Bowling Alley Tornado Main StreetEarly Market

Initial

Release

Potential Pitfall

Beware of how you use input from Bowling Alley customers once they are using your product successfully.

They will tell you the “delighters” they want.

In the Bowling Alley, you should be focusing on the “enablers” for your next segment(s).

The Initial Release

Steve Jobs on Innovation

So you can’t go out and ask people, you know, what’s the next big thing? There’s a great quote by Henry Ford, right? He said, “If I’d asked my customers what they wanted, they would have told me ‘A faster horse.‘ ”

The Enablers

Price / Performance

Delighters

Use the TALC to Shape the Consumer’s Role in Innovation

Main Street

Thriving Market

Maturing Market

Declining MarketFault

Line!

End of Life

Early

Market Bowling Alley

Tornado

In Conclusion

The Technology Adoption Life Cycle can serve as a framework for planning innovation initiatives

Consumers play many roles in the innovation process

Consumer roles vary dramatically as a product category moves through the Technology Adoption Life Cycle

Mark Cavendermcavender@chasminstitute.com

Dr. Carlos Téllezcarlos.tellez.martinez@itesm.mx

Lic. Sergio GarcíaProfesor Tutor

Lic. Sergio Garcíasagm@itesm.mx

Derechos Reservados 2015 Tecnológico de MonterreyProhibida la reproducción total o parcial de esta obra

sin expresa autorización del Tecnológico de Monterrey.

Derechos Reservados 2015 Tecnológico de MonterreyProhibida la reproducción total o parcial de esta obra

sin expresa autorización del Tecnológico de Monterrey.