Developing an Innovative Company

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Today’s post goes and explain the article discusses in HBR on Innovation, my main subject and research for this blog stub.

Every Thursday I will try to put a blog article discussing an article or providing some hints on how to develop a company which is innovative and forward thinking.

This maybe a naive point of view as, at the current time my objective is to gain experience and hindsight, but not all knowledge that I write about, has to come directly from me, and I believe, that Harvard Business Review, with his insights provide some kudos on my side.

As I was saying, today post goes and discuss HBR article, Building an Innovation Factory.

All this articles are from the 2000, but still relevant today, as they discuss Engineering and Design, as well as Business.

The main idea of the article, is that there are four components which help in developing an innovative company:

These components are embedded in the company culture, and companies as such as IDEO, take advantage of this components in developing their corporate culture.

Now, you will be saying, what it has to do with a small business….

I would reply to you, that no matter the size, is important in being innovative, as ideas are the currency of Business.

 

This components, in the text, are referred as the Knowledge-Brokering Cycle:

And they are discussed as, the main building block to keep and retain ideas.

  1. Keep the good ideas:

Ideas, as discussed in precedence, can come from within a firm, or engineered outside a firm, and as such, is important to keep them, as often they are forgotten, and more specifically, in corporate culture, they are often forgotten also because these ideas are tied to the owner of the idea.

2. Ideas have to survive:

In order to flourish, ideas have to be kept alive, to remain alive, this ideas have to be past around, and discussed and toyed with. Effective brokers spread the information.

3. Reinventing the wheel:

This is where the concept gets interesting, innovation arrive when old ideas are captured and remembered in new contexts. For example, using the idea box, one can plot the innovation that the Nintendo Wii brought, and design new ideas for new consoles.

4. Testing concepts:

Testing allow to check if an innovation is viable commercially or is a flop. Brokers in this context can learn valuable lessons even if the idea is not working.

 


Innovation Management #3

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Today’s post goes and discuss various technique to stay innovative for corporations.

The easiest method is via brain storming (mind mapping) ideas, the second one is via the idea box.

Both these techniques are better explained in an ebook called: Thinker toys

These techniques are easy to draw than to be explained.

Plenty of material can be found on the internet.

Mind mapping consist in using a blank paper and writing in the middle the concept, or the idea researched, and then connect by lines around it all connections that come to mind, for example, in purchasing a car, the idea is to go and look for all the issues that can arise when buying it.

From this start then is to go and draw connections also with the concept that for outsiders maybe don’t make sense, but for you, the painter of the map maybe easy understandable. There are plenty of software and tools the helps in creating mind map, however nothing beats the original Tony Buzan book which draws also on cognitive science theory. In fact is suggested that when drawing lines or connections, different colors are do be used.

The second approach for idea generation is the idea box.

This is explained in thinker toys as a method which exponentially increases the chances of getting good ideas to the consumer.

Last but not least I’m going to introduce the term of lead user method.

Lead user method is a technique explained in innovation management by Harvard business school.

This technique goes and explains that technological advancements are usually achieved not always by the manufacturer of goods, but mostly by the lead user.

This allow for new products to be developed in collaboration of a network of experts which cooperate in the development of new tech.

This goes hand in hand with the explanation of the S curve, a curve used in innovation management to explain how a new product is marketed to various market segment according to their own skills and expertise.


Innovation Management #2

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Creating Market Space

In today’s post, I am going to discuss of a technique used in Marketing and Corporate Strategy which is adoptable to Innovation Management.

This technique is called value curve analysis.

By analysing what is the function and emotion which are targeted by competitors, is possible to target new market and create space for new nieches.

This tool is very practicable, although is difficult to explain, there are plenty of example of companies using this strategy, and is widely explained by Harvard Business School.

An example is the chart provided in personal finance software in the 80s vs pen and pencil use for personal finance calculation.

the main point to describe is the there are key point into analysis:

This are the points:

Remove the points taken for granted.

Diminuish the factors below industry standard.

Increase the factors above industry standard and create factors which the industry does not offer.

The main key take aways are that is important to look at what competitors offer in the industry, look what buyers are willing to spend money on, look on substitutes in terms of products and services, target emotions and functionality, look across time horizon in following current trends.


Innovation Management

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An important initial step in Business and Management is Innovation Management, therefore how to remain innovative and have new product or service ideas.

This is the initial step in innovation management.

With this blog stub, I will try to provide some examples studied in University on how companies become and stay innovative in order to achieve competitive advantage. For who does not know what a competitive advantage is, is simply a term to define how companies succeed.

When developing or inventing new products or services is always important to think how much the market (customer) would pay?

Then in ideating, there are mainly two segments: B2B and B2C.

The main reason is that certain products are made for retail, thus, becomming Business to Consumer, other product or services, are Business to Business products or services, and are mostly defined as used in collaboration or partnership with other companies.

Innovation management key point is the management of creativity, and define the difference between a technology (coding or tacit knowledge),

and innovation, taking novel ideas and technology to market.

The main examples are by the way on the different ways to use a brick, which is an exercise, which i would suggest everybody on doing to find out new creative ways of idea generation.

With this Blog Post i provided a small example of creativity in action, for further get to know the business capabilities, feel free to contact me with the contact page, and I will sort out an appointment for a consultation.


Price Discrimination

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Hello there and welcome back,

Here I’m going to discuss for the first time an interesting article that one of the others blog, more precisely by Tim Harford went and discuss.

Many people know how eventful travelling is, and the mobile companies how smart with their service offerings are, however, not everyone is aware of some practices used to pricing products and services.

Such techniques are called Price Discriminations.

So what is price discrimination?

In theory, as Industrial Organisation goes and explain, price discrimination is the pricing of the same service or product at different rates, in practice is used by airline companies to price the same seat at different times according to the plane capacity.

In fact, one of the most not lucrative businesses and that most often takes the headlines are the airline industry, but to stay competitive they use a pricing technique called price discrimination in combination with yield pricing.

I might be wrong in this article, so be free to comment about this post.

In practice there are three kind of pricing discriminations techniques. In practice they are fully described as when the company uses to sell the same product or service at different prices based on differences such as, age, gender, income and etc.

The first kind is called full pricing, when the price is negotiated and the supplier and the buyer agree on a certain price which allows for the supplier to get the maximum benefit possible.

The second kind is called product bundle, and happens most often than thought, for example when subscribing to the mobile service, the operator allows for subscription of bundled services and a discount price.

The Third is called group pricing and happen when prices are established based on groups, such as age, demographic data, income, etc.

with this blog post j provided you an introduction to a new pricing technique, for more information contact us via the contact form, and I will provide for a consultation.