geoff moore at see

Symbian 2015

Building an Innovation Strategyto Win the Smart Phone Market

Geoffrey MooreSymbian Exchange & ExpositionOctober, 2009

2 Dealing with Darwin © 2009, TCG Advisors LLCApril 8, 2023

Agenda

• Why have an innovation strategy?

• The key to a winning innovation strategy

• The impact of category maturity on innovation strategy

• What Symbian should do: An outsider’s view


Why have an innovation strategy?

Most innovation is wasted


How Innovation Doesn’t MatterRemember Your Vector Math Class!

= 0Bubble-up Innovation

When organizations innovate “bottoms up,”competitive separation is small,

and differentiation is not sustainable:Lots of activity, not much to show for it.


Competitor 2*

Competitor 1*

Competitor 3*

YOU*Gain bargaining power by getting separation

from your competitive set

*

Competitive Set

Failure to separate equates to lack of ability to influence the market

COREAmplify a specific

vector of innovation

Innovating for DifferentiationFocus on Competitive Separation


FailedAttempts

Waste

Return on Innovation

Differentiation Neutralization

Optimization

Sources of Waste:• Differentiation projects that don’t go far enough• Neutralization projects that go beyond good enough• Unaligned innovation efforts that cancel each other out

PRODUCTIVITY

CORE CONTEXT

7

Questions to AskApply These to Every Initiative You Sponsor

• Which of the three returns on innovation are we targeting? (Note: It is never appropriate to target more than one.)

• Have we staffed this initiative with the appropriate type of leader?

• Do our metrics of success measure the return we are seeking?

Dealing with Darwin © 2009, TCG Advisors LLCApril 8, 2023


The key to a winning innovation strategy

Declare your core andrally around it


Building an Innovation StrategyValue Disciplines as Innovation Zones

ProductLeadership

Zone

OperationalExcellence

Zone

CustomerIntimacy

Zone

Which zone is your sweet spot?


Vectors of InnovationTargeting Your Sweet Spot

SolutionInnovation

PlatformInnovation

ProductInnovation

DisruptiveInnovation

DesignInnovation

ExperientialInnovation

MarketingInnovation

Line ExtensionInnovation

IntegrationInnovation

BusinessModel

Innovation

ProcessInnovation

ValueEngineeringInnovation

ProductLeadership

Zone


Zone

CustomerIntimacy

Zone

Dell

Microsoft

HP

SAP

Facebook

Google

Salesforce.com

Genentech Autodesk

IDEO

TSMC

Apple


Creating Definitive SeparationHow Great Companies Outperform Their Categories

• Identify a primary vector of differentiation, and declare this to be core. This will be your “Path out of the Yellow Circle.”

• Drive offer and program investments “beyond reason” along your core vector to the point where the competition either cannot or will not follow.

• Reengineer supporting context processes to further accentuate and enhance your core differentiation. “Tilt” toward core.

• Fund these extraordinary efforts by productivity initiatives focused on extracting resources from context activities.

12

Questions to Ask

• Have we declared or do we know which vector or vectors of innovation are core for our enterprise?

• Do we have “crown jewels” that give us distinct competitive advantage on one or more of these vectors?

• Are we over-investing on these vectors and making the corresponding cuts elsewhere to fund this focus?



The impact of category maturityon innovation strategy

Different types of innovation succeed at different times

14 Presentation Title © 2003, TCG Advisors LLCApril 8, 2023

Technology Adoption Life Cycle

Pragmatists create the dynamics of high-tech market development.

Innovators EarlyAdopters

Early Majority Late Majority Laggards

Techies:Try it!

Pragmatists:Stick with the herd!

Conservatives:Hold on!

Skeptics:No way!

Visionaries:Get ahead of the herd!

15 Presentation Title © 2003, TCG Advisors LLCApril 8, 2023

High-Tech Market Development Model

Chasm

Tornado

TotalAssimilation

BowlingAlley

Main Street

EarlyMarket

16

Time

Rev

enu

e G

row

th

Technology AdoptionLife Cycle

Indefinitely elasticmiddle

AEnd of

Life

FaultLine!

EDeclining

Market

DMature Market

CGrowthMarket

B

Category Maturity Life Cycle

© 2008, TCG Advisors LLCApril 8, 2023

17

Performance Buyers Relationship Buyers Value Buyers

Life-Cycle Marketing StrategyBuying Focus Evolves as a Percentage of Overall Mix



Building an Innovation StrategyValue Disciplines as Innovation Zones

ProductLeadership

Zone


Zone

CustomerIntimacy

Zone

Just to reconfirm,which zone is your sweet spot?

PerformanceBuyers

RelationshipBuyers

ValueBuyers

19

Questions to AskApply These to Every Category You Compete In

• Where is this category in the Category Maturity Life Cycle?

• Which type of buyer do we have the best chances with? What are we doing to win as many of these buyers as we can?

• What is our best bet for winning as many of the dominant type of buyer as we can (even if that is not our sweet spot)?

• Where is the least valuable place we can spend our energy, and what are we doing to minimize our activities in that area?



What Symbian should do

An outsider’s view


Prioritizing Vectors of Innovation

ProductLeadership

Zone


Zone

CustomerIntimacy

Zone

ProcessInnovation

Toyota

PlatformInnovation

Microsoft

Line ExtensionInnovation

Mattel


SAP

ExperientialInnovation

Starbucks

ProductInnovation

Apple

BusinessModel

Innovation

Salesforce.com

DisruptiveInnovation

Genentech

SolutionInnovation

RIM

DesignInnovation

IDEO

MarketingInnovation

P&G


Southwest

Too niche focused

Too niche focused

Too company specific




Ditto


Symbian Innovation Strategyfor Mature Markets

ProductLeadership

Zone


Zone

CustomerIntimacy

Zone

ProcessInnovation

Toyota

PlatformInnovation

Microsoft


SAP

BusinessModel

Innovation

Salesforce.com


Southwest

Refresh and extend your reach at the low end of the market as feature phones evolve to

smart devices


Symbian Innovation Strategyfor Growth Markets

ProductLeadership

Zone


Zone

CustomerIntimacy

Zone

PlatformInnovation

BusinessModel

Innovation

Use Neutralization Innovation to catch up

and eventually overtake existing

market leaders

Exploit Business Model Innovation to

differentiate from existing market

makers

24

Final Thoughts

• Manage Growth Market and Mature Market initiatives separately• Focus the first on Performance Buyers, the second on Value Buyers

• Exploit your distribution advantage in the feature phone market• Create a value-based upgrade path that stays within the price

envelope that is optimal for the low-end market

• Exploit your business model advantage in the smart phone market• Neutralize and then commoditize every currently differentiating

element as fast as you possibly can



Thank You

[email protected]