Professional Documents
Culture Documents
Les Green
Director of Technology Innovation
Cap Gemini Ernst & Young
Define Innovation
• Likely to be completely new product or service
• Could also be a small improvement in existing
products or services
• Might be an improvement in internal processes too
• Today is likely to have a strong technological
component, e.g. software, electronics
• Probably for existing market, but may also create
new / niche
Importance of Innovation
• Increases opportunity market separation
• Good for the economy as a whole (as companies
trade on a global basis)
• Usually leads to cost reductions – better margins
• Should give consumers greater satisfaction and
wider choice
• Reduces dependency on old products / services
and technological processes.
What are the stages of Innovation?
• Proof of Concept(s)
Commercialisation
Successful Innovation needs Purpose
• Must give the creator either a “build” and/or “deliver” opportunity
• Should generate revenues within a year (from Stage 0)
• Investment (through Proof of Concept) must within budget
• Revenues for first year should be “known” with set margins
• Revenues/margin projections and the R&D plans for first three
years should be well documented
• Need to take account (amortise) of the the process costs of
Innovation over the life of the product
• Should pre-build features into the product – but not always release
all of these in first version
• Understand the customer segmentation of the target markets from
the outset.
What about Promotion?
• The need to influence consumer behaviour
• Creating the “MUST HAVE” factor
• Separation from the competition
• Making the Innovation seem worthwhile / valuable
• Built-in adaptive qualities to stay ahead.
EXAMPLE:
SONY Walkman (1979) had features ready for release to fight competition.
Reduced size, Radio (FM), Auto Reverse, Shock Resistance, Water Resistance
Rechargeable batteries, Alarm Clock, Dolby …… and even smaller size!
Commercialisation
Questions ….
Les Green
Director of Technology Innovation
Cap Gemini Ernst & Young