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How Intelligence Practices Reduce the Fuzziness at the Front End of Innovation

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How Intelligence Practices Reduce the Fuzziness at the Front End of Innovation

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How Intelligence Practices Reduce the Fuzziness at the Front End of Innovation

  1. 1. The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by How Intelligence Practices Reduce the “Fuzziness” at the Front End of Innovation A Complimentary Webinar from Aurora WDC 12:00 Noon Eastern /// Wednesday 16 November 2016 ~ featuring ~ Dr. David Blenkhorn Dr. Craig Fleisher
  2. 2. The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by Dr. David Blenkhorn David Blenkhorn, CPA, CMA, is Professor of Marketing at Wilfrid Laurier University in Waterloo, Ontario, Canada, where he teaches courses in Competitive Intelligence, Business-to-Business Marketing, and Marketing Strategy. He is co-editor of the books (1) Competitive Intelligence and Global Business, (2) Controversies in Competitive Intelligence: the Enduring Issues, (3) Managing Frontiers in Competitive Intelligence, and co-author of the book Reverse Marketing: the New Buyer-Supplier Relationship. He has published articles on competitive intelligence, business relationship management, business-to-business marketing, and organizational effectiveness in journals such as Journal of Competitive Intelligence and Management, Journal of Advertising, Industrial Marketing Management, and Journal of Business and Industrial Marketing, among others. Email: dblenkho@wlu.ca The Intelligence Collaborative is the online learning and networking community powered by Aurora WDC, our clients, partners and other friends and dedicated to exploring how to apply intelligence methods to solve real- world business problems. Apply for a free 30-day trial membership at http://IntelCollab.com or learn more about Aurora at http://AuroraWDC.com – see you next time!
  3. 3. The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by α Use the Questions pane on your GoToWebinar control panel and all questions will be answered in the second half of the hour. α You are welcome to tweet any comments on Twitter where we are monitoring the hashtag #IntelCollab or eavesdrop via http://tweetchat.com/room/IntelCollab α Slides will be available after the webinar for embedding and sharing via http://slideshare.net/IntelCollab α To view the recording and download the PPT file, please register for a trial membership at http://IntelCollab.com Questions, Commentary & Content
  4. 4. The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by The Genesis of This Research ► Companies frequently fail at NPD. Failures often come from the “fuzzy front end” (FEI). ► Some FEI failures are due to failures to develop intelligence about customers, needs, functionality, markets, and technology ecosystems. ► Though we have seen recent innovations in developing or employing FEI research methods, the range used is still too narrow and misses on capturing key insights. ► Many intelligence-based methods can be applied to improve the probability of FFE success. FEI The activities that take place before a product development process (PDP) has been established.
  5. 5. The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by The “Fuzzy” Front End Solutions Ideas Problems R&D Prototyping/ Adjusting Feasibility/ Pre- Marketing The Business End Plan Build Evaluate The “Messy” Back EndThe Product Management End Sunsetting Customer Support & Maintenance Delivery Sales + Marketing The Difficult Innovation Process in New Product Development (NPD)
  6. 6. The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by The “Fuzzy Front End” of Innovation (FEI) 1000s of Possible Business Ideas 100s of Ideas that Fit Your Capabilities 10s of Ideas that Fit Strategic Interests Several Ideas that Users are Demanding A Few Ideas that Users Will Pay For A Couple Ideas that Will Scale The 1 Idea that Became a Great Success Ideation Market & Tech Evaluations Product Development & Trials Whole PD Scale Up Commercialization FEI: The activities that take place before a product development process (PDP) has been established.
  7. 7. The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by “In what ways can intelligence methods and processes contribute to reducing the “fuzziness” experienced by organizations during the front end of innovation (FEI) in the NPD process?” Research Question
  8. 8. The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by Intelligence Propels the 10 Essentials of Strategic Innovation 1. Innovation has to be integrated and managed at the core of the strategy, as a pivotal, visible corporate value – continuously focused 2. Core competencies – explicity outline the linkages between your L/T strategic goals and R&D/innovation investments and technology strategies 3. It should move your organization from balancing/optimizing your business to/and creating business and new spaces 4. You’ll need to develop cross-functional innovation and/or insight teams (with R&D’s participation, of course, but not only theirs) 5. Stimulate participative management, a high degree of delegation & responsibility, collaborative & team works, and employee engagement (an innovative HRM style) 6. Continuous development of industry/market foresight – actively monitoring and exploring emerging trends and developing alternative scenarios 7. It’s an inside-out, open process of interacting w/customers, prospects, suppliers, partners, competitors, staff 8. Balance supply-pushed (new technologies) with demand-led (based on CX/UX, market requirements) – directly involve suppliers and customers 9. Design smart systems for idea assesment+prioritization of detected/selected opportunities 10. Space – innovation teams need dedicated space (-s) to work and collaborate
  9. 9. The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by Classical Approach to NPD Intelligence-driven Innovation (IdI) Approach 1. Analysts: Their Educational Backgrounds - engineering - marketing - new product planning - single disciplines/majors - the traditional sciences - communication - cross-disciplinary/dual majors - data sciences - intelligence studies - liberal arts 2. Analysts: Their Functional Backgrounds - functional silos - marketing - product engineers - single discipline data teams - cross-disciplinary data teams - crowd-sourced - insight teams - subject matter expert networks 3. Nature of Data Utilized - existing products./services logs - heavily quantitative - legacy records - off-line testing - past customer behavior structured - traditional/classic experiments - creative design - heavily qualitative - mobile/recorded - real-time experiments/field testing - semi- and unstructured data - socially generated 4. Degree of Change Achieved - additive - functional improvements - one-offs - refinements of existing products - disruptions - exponential - field or market changers - revolutionary 5. IT and Systems Support - assigned per project - closed/proprietary platforms - data mining techniques - enterprise data warehouses - fixed cost investments - collaborative - customized insight portals - fusion centers - platforms - variable/marginal cost investments Intelligence-driven Innovation or IdI * * (Source: Fleisher & Blenkhorn, 2016, PDMA Proceedings, Atlanta)
  10. 10. The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by Classical Approach to NPD Intelligence-driven Innovation (IdI) Approach 6. Methods Used to Collect Data - automated mobile collection - focus groups - internal sales records - purchase behavior data records - sensors/smart devices - targeted web-based techniques - computer-assisted phone interviews - ethnographic interviews/observation - face-to-face interviews (developing areas.) - focus groups - social communication platforms 7. Nature of Analysis Methods Used - those taught in business and engineering schools, e.g., SWOT, voice of the customer (VOC), user experience (UX), traditional statistical methods, data mining, web analytics, etc. - socialized, cross-functional, collaborative, synchronous, and/or interactive methods; e.g., competitive simulations, customer journey mapping, red/blue teaming, mind mapping war-gaming, etc. 8. Nature of Planning - grand visions - longer cycle - set cycles - strategic - agile experimentation - iterative cycles - opportunistic - shorter cycle 9. Organizational Structure - business unit-based - NPD unit - permanent - silos - agile/rotating - cross-functional - fluid structures - insight teams 10. Timing Considerations & Project Time Frame - deliberate - must pass stage gates - planned - show results next quarter/year - agile - longer-term, 2 cycles or more in future - opportunistic - rapid production of preliminary results Intelligence-driven Innovation or IdI * * (Source: Fleisher & Blenkhorn, 2016, PDMA Proceedings, Atlanta)
  11. 11. The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by Intelligence-based Analysis Methods Key Intelligence-based Analysis Methods Underlying 1) Idea-driven FEI Key Intelligence-based Analysis Methods Underlying 2) Opportunity-driven FEI Alternative Futures Design Thinking Blue Sky Thinking Ethnography Brainstorming | Brainwriting Market Opportunity & Sizing Convergent Thinking Product Life Cycle Customer Journey Mapping Product Lines and Markets Divergent Thinking Road Mapping Idea Management Systems Scenario Thinking Mind Mapping S-curve mapping | Tech Life Cycle Red/Blue Teaming Strategic Relationships Shadowing Technology Scouting Simulations/Games Trend Analyses * (Source: Fleisher & Blenkhorn, 2016, PDMA Proceedings, Atlanta)
  12. 12. The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by Preliminary Results 1. When companies apply IdI, they generate a higher volume of actionable insights. 2. The use of IdI increases the likelihood that ideas will receive higher levels of executive investment. 3. IdI results in a higher percentage of ideas that make it to subsequent parts of the innovation process. 4. IdI introduces new techniques in data collection and analysis which are not currently utilized in traditional NPD . 5. IdI is complementary to traditional NPD, not a substitute for it. Front End of Innovation BEFORE Front End of Innovation AFTER
  13. 13. The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by What’s Next? ► Expand the number of companies adopting IdI. ► Attempt to employ a wider and deeper range of IdI conepts/analytics in the traditional NPD process. ► Apply IdI across more industry/vertical contexts. ► Educators/programs must ramp up with the new digitally-based social data inputs and techniques. ► Traditional NPD analysts must morph to include IdI analytics.
  14. 14. The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by
  15. 15. The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by Thank you! Now how about a little Q&A? The Intelligence Collaborative is the online learning and networking community powered by Aurora WDC, our clients, partners and other friends and dedicated to exploring how to apply intelligence methods to solve real- world business problems. Apply for a free 30-day trial membership at http://IntelCollab.com or learn more about Aurora at http://AuroraWDC.com – see you next time! Email: dblenkho@wlu.caDr. David Blenkhorn

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