disruptive innovation - openthinking

Disruptive Innovation Overcoming the market with more than just lower pricing

Iyad Mourtada

New-Product Development

Reasons for new product failure

New-Development Process

The systematic search for new-product ideas

Sources of new-product ideas

Internal

External

Idea Generation

Identify good ideas and drop poor ideas

R-W-W Screening Framework:Is it real?Can we win?Is it worth doing?

Idea Screening

• Product idea is an idea for a possible product that the company can see itself offering to the market

• Product concept is a detailed version of the idea stated in meaningful consumer terms

• Product image is the way consumers perceive an actual or potential product

Concept Development and Testing

Marketing strategy statement includes:Description of the target marketValue propositionSales and profit goals

Business analysis involves a review of the sales, costs, and profit projections to find out whether they satisfy the company’s objectives

Marketing Strategy Development

Types of Test Markets

Product Life-Cycle Strategies

Product Life-Cycle Strategies

Fads are temporary periods of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity

Product Life-Cycle Strategies

The Reason for Failure:

• Listen to their customers

• Invest in Technology

• Satisfy their customers' next-generation needs.

How can great Firms Fail? The Reason for Success:

• Listen to their customers

• Invest in Technology

• Satisfy their customers' next-generation needs.

Innovator's Dilemma

Disruptive Innovation

Reinventing Your

Business Model

Reinventing Your Business Model

1.Articulate what makes your existing model successful. For example, what customer problem does it solve? How does it make money for your firm?

2.Watch for signals that your model needs changing, such as tough new competitors on the horizon.

3.Decide whether reinventing your model is worth the effort. The answer’s yes only if the new model changes the industry or market.

Johnson, Christensen, and Kagermann

Understand Your Current Business model

1. Customer value proposition.

Understand Your Current Business model

2. Profit formula.

Revenue – Cost = Profit X Turnover

Understand Your Current Business model

3. Key resources and processes.

Take a good technology and wrapped it in a great business model

Modern Business Approach (MBA 2.0) 50 Innovative Ways to grow your business in the Middle EastSaturday, December 22, 2012 – 9:00 AM – 5:30 PMDubai Knowledge Village, Building 19, Office: 208

Based on the 4 most innovative business models:

Price: AED 2,300 (Early Bird Price: AED 1,590)Email: learn@openthinking.ae Phone: 055 9852570

iyad@openthinking.ae