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Strategic innovation Evolving innovative thinking by focusing on future users

Strategic innovation Evolving innovative thinking by focusing on future users. Jon Sundbo Roskilde University Denmark. Basis for the comments. Case studies of service and experience firms Experiments in service and experience firms (project ”When the customer encounters the employee”)

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Strategic innovation Evolving innovative thinking by focusing on future users

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  1. Strategic innovationEvolving innovative thinking by focusing on future users Jon Sundbo Roskilde University Denmark

  2. Basis for the comments • Case studies of service and experience firms • Experiments in service and experience firms (project ”When the customer encounters the employee”) • General reflections and case-examples

  3. Why strategic innovation • Innovation is a risky business • The idea phase not the most difficult – that is the commercialisation phase • Firms want to introduce innovations that the market wants • Service firms have very little R&D and need to be pull-oriented • They have the advantage of meeting the customers • Their innovation process becomes customer oriented

  4. What is strategic innovation ? • Innovation is about what people may want in the future • That is difficult to predict Firms can not rely on actual user-demands on the market – they can not find lead users • Firms are forced to choose a strategy: • Defensive: Try to guess what future users will want • Offensive: Try to determine what the future users will want (influencing life style)

  5. How is strategic innovation practiced? • It is difficult to practice directly user-based innovation: Customers often have no ideas, particularly not for radical innovations • Strategic innovation is the indirect way to find what users may want in the future • Several methods

  6. User analyses • Market analyses Examples: Surveys (how do people use web sites) Trend spotters (new food habits) Focus groups (social home service) • Anthropological approach Examples: Living in youth groups (music, clothes, everything) – acting as a tourist • Critical incidences Example: Interviews with victims of fire

  7. User involvement • User communities Examples: Web-blogs (software firms, library) Help desk and complaints (travel agency) • User involvement in the innovation process Examples: Co-creation (NewInsight) – The idea and test phases (New services for mobile phones) • Value chain innovation (company-users as experts) Examples: Diary – wholesale – cafe Hotel - attraction – tour operator – press

  8. Employee-based user-knowledge • Idea boxes Examples: Library, IBM, Venture Cup • Empathic innovation Examples: Waiters in a cafe Insurance agents • Employees as innovators Example: TrygVesta (insurance company) • Volunteers Example: Roskilde festival

  9. Offensive strategy • Creating behavioral trajectory Example: Discount airlines discount airport terminals • Experience added (influencing life style) Examples: Cars – web pages – Levis jeans • Entrepreneurship – create the movement oneself Examples: Body Shop – Windmill industry

  10. Reflexive strategy • The strategy must be regularly assessed (the innovations may be wrong - the world is changing) • Employees are involved (encounter ther customers) • New push-based innovations may come up (technology, R&D, intrapreneurship)

  11. Sum up • Market or user based strategic innovation is about incremental innovation • Strategic innovation is constant hard work • It is about business development and solving problems/creating a better life – call it innovation or not • The methods must be developed and people trained in using them. Management must be committed and focused on innovation – and educated e.g. Project ”When the customer encounters the employee”

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