ethnographic opportunity analysis (oct.5,2009)

Ethnographic Ethnographic Opportunity Analysis Opportunity Analysis part 1part 1

Hank Delcore & Jim MulloolyHank Delcore & Jim Mulloolyaka “TheAnthroGuys” @aka “TheAnthroGuys” @

www.TheAnthroGuys.comwww.TheAnthroGuys.com

Innovation

?

Innovation in Business Innovation in Business (Schumpeter, (Schumpeter, 1934)1934)

1. Introduction of a 1. Introduction of a new/improved new/improved goodgood

2. Introduction of a 2. Introduction of a new methodnew method of of productionproduction

3. Opening 3. Opening new market or new market or territory territory 4. Conquest of a 4. Conquest of a new sourcenew source of raw of raw

materialsmaterials 5. New type 5. New type of organizationof organization



Sweet Chocolate


2. Introduction of a 2. Introduction of a new methodnew method of of productionproduction

Henry Ford’s Assembly Line


3. Opening 3. Opening new market or new market or territory territory

Shushi in US


4. Conquest of a 4. Conquest of a new sourcenew source of raw of raw materialsmaterials

Sugar Beets in 1870s


5. New type 5. New type of organizationof organization

Japanese Automotive

Administration



Sweet Chocolate

Steve JobsSteve JobsMaster ofInnovation

as improvemen

t of an existing

good

How How Personal Personal ComputeComputers were rs were

UsedUsed

How Music How Music was Usedwas Used

How How Smart Smart

Phones Phones were Usedwere Used

Apple is a Apple is a Software Software Company Company

(Steve Jobs)(Steve Jobs)

Apple is a Software Company Apple is a Software Company ((JobsJobs))

The Macintosh Interface

Apple is a Software Company (Jobs)

The Ipod’s Itunes Store

Apple is a Software Company (Jobs)

The Iphone’s App Store

How can you find these opportunities?

Ethnographic (Inductive) Ethnographic (Inductive) Opportunity Analysis Opportunity Analysis

Deductive ApproachesDeductive Approaches– Hypothesis Hypothesis Data Collection Data Collection Analysis Analysis

from general to specific from general to specific

Inductive ApproachesInductive Approaches– Data Collection Data Collection Analysis Analysis Hypothesis Hypothesis

from specific to generalfrom specific to general

IntelIntel Green Homeowners Green Homeowners as Lead Adoptersas Lead Adopters

What People Say What People Say They DoThey Doand What They Do and What They Do Are Are DifferentDifferent

The Business Case for The Business Case for User-Driven InnovationUser-Driven Innovation Unprecedented specialization and Unprecedented specialization and

segmentationsegmentation, multiplied many times , multiplied many times over by domestic and international over by domestic and international cultural diversity.cultural diversity.

The Value of the Use The Value of the Use CaseCase Entrepreneurs can neither assume Entrepreneurs can neither assume

that they are socially or culturally that they are socially or culturally close to users nor that they can close to users nor that they can keep up with consumer trends keep up with consumer trends themselves – unless they seek user-themselves – unless they seek user-centered insights.centered insights.

Increased CompetitionIncreased Competition Increased competition Increased competition from emerging from emerging

economieseconomies Companies can no longer rely on the Companies can no longer rely on the

advantages of being the first to advantages of being the first to introduce new technologiesintroduce new technologies to the to the market.market.

Democratization of Democratization of KnowledgeKnowledge The The democratization of knowledgedemocratization of knowledge, driven by , driven by

the internet and information technology in the internet and information technology in generalgeneral

Armed with lots of information and the ability Armed with lots of information and the ability to buy from companies all over the globe, to buy from companies all over the globe, consumers no longer consider the price/quality consumers no longer consider the price/quality trade-off as the sole driver of choice.trade-off as the sole driver of choice.

Democratization of Democratization of KnowledgeKnowledge Instead, consumers increasingly consider Instead, consumers increasingly consider

how a company and its products match their how a company and its products match their own personal values, behaviors and needs.own personal values, behaviors and needs.

To get at this, successful companies must To get at this, successful companies must include users in the innovation processinclude users in the innovation process..

Just to Stay SolventJust to Stay Solvent As Squires and Byrne put it: “…As Squires and Byrne put it: “…

companies have to manufacture the companies have to manufacture the rightright commodities and deliver them in the commodities and deliver them in the rightright way to the way to the rightright consumers at least four consumers at least four out of ten times every year – just to stay out of ten times every year – just to stay solvent” (Squires and Byrne 2002:xiv). solvent” (Squires and Byrne 2002:xiv).

Traditional R&D departments and Traditional R&D departments and entrepreneurs with their own entrepreneurs with their own views on “what people want” can views on “what people want” can no longer keep up with the reality no longer keep up with the reality of rapidly evolving needs and of rapidly evolving needs and desires.desires.

THE ASSIGNMENTTHE ASSIGNMENT

1) Conduct some sort of 1) Conduct some sort of “inductive observation”, “inductive observation”,

2) analyze your notes, then 2) analyze your notes, then 3) expand those notes into a brief 3) expand those notes into a brief

report about what you found.report about what you found.

DESCRIPTIONDESCRIPTION– Rather than looking into a Rather than looking into a

completely innovative idea (service completely innovative idea (service or product), the goal is to or product), the goal is to 1) observe 1) observe something that already works; 2) something that already works; 2) observe it in great detail; then 3) observe it in great detail; then 3) begin to understand begin to understand it in such detail it in such detail that you can that you can 4) make concrete 4) make concrete suggestionssuggestions about improving it. about improving it.

In Other WordsIn Other Words– Rather than looking for how Rather than looking for how

consumers COULD use a NEW consumers COULD use a NEW service/product, the goal is to service/product, the goal is to observe how consumers DO use a observe how consumers DO use a EXISTING service/productEXISTING service/product with the with the intention of intention of looking for opportunitieslooking for opportunities to improve or to improve or “add value”“add value” to that to that experience.experience.

StepsSteps– 1. Find a routine, taken-for-granted 1. Find a routine, taken-for-granted

task/service/product,task/service/product,– 2. “Hang out” and “thickly describe” it in a 2. “Hang out” and “thickly describe” it in a

notebook, notebook, – 3. 3. In a one page pitchIn a one page pitch, suggest some sort , suggest some sort

of innovation that will add value. DUE: Friday of innovation that will add value. DUE: Friday October 16October 16thth by midnight. Submit by by midnight. Submit by attached MS Word Document to attached MS Word Document to [email protected]@gmail.com.

– The best observations will be published on The best observations will be published on our blog and presented in class on October our blog and presented in class on October 2121stst..

Ethnographic Ethnographic Opportunity Analysis Opportunity Analysis part 1part 1

Hank Delcore & Jim MulloolyHank Delcore & Jim Mulloolyaka “TheAnthroGuys” @aka “TheAnthroGuys” @

www.TheAnthroGuys.comwww.TheAnthroGuys.com

Thanks for your

Time

ethnographic opportunity analysis (oct.5,2009)

Design

anew methodof

openingnew

stay solvent

typeof organization

anewimproved

software company

jobs

longer