11- distilling strategy from innovations

This exercise will enable you to learn to see the strategic objectives behind innovations.

see page 113 of BDI.

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  1. Team Synergize&Co

    After reading the chapter, we came up with products that fit into different types of innovation strategies.

    The first one that we would like to discuss is the co-branding between Fatboy and Marimekko. For those who don´t know Marimekko, it is a Finnish fabric brand well known for its graphic design patterns.
    Fatboy introduced the original beanbag with the typical Marimekko fabrics. We don´t know the deal between Fatboy and Marimekko, but the price difference (70€) is huge and we did not expect this difference. Of course the product is more expensive because Marimekko also wants margin. Next to this, Fatboy´s products that differ from their standard model are kept at a higher selling price, because Fatboy likes to keep these products exclusive. As for innovation strategy, there is no innovation in product nor in technology, but in broadening their market.

    Both Fatboy and Marimekko want to extend their target group and their product portfolio. Fatboy and Marimekko originally have a different target group and with this co-branding they try to attract each other’s target group to enlarge their own. Thus the innovation is a market development, and this would make a big difference for Fatboy entering the Finnish market, introduced by Marimekko, and the other way around. Marimekko’s graphics fit into the Fatboy brand values because they both take a lot of care in good design, bright colours, clean and modern style.

    Fatboy needed to make a difference because of all the copies appearing after their success. They were the first ones introducing different kind of beanbags in the Dutch market, so co-branding with Marimekko is an easy and safe way to stand out from other brands.

    Dyson introduced in the mid 90’s a vacuum cleaner called, G-Force. They patented the “Dual Cyclone” technology, it was the first one without a dust bag. It is quite a revolutionary product, without giving a new product innovation because it is still used for the same purpose, vacuum cleaning. The brand was build on this technology and all their products have it, we could say that the company is technology driven. It also makes a change in the aesthetics of the product, Dyson made the housing cleaning transparent to give the user more insights in the product technology.

    Following these features, Dyson’s vacuum cleaners look very hi-tech and futuristic, this could attract a new market group. But would the previous target group also buy this device? This makes a big difference in the risks that are taken, people like to stick to the “know how to use” products. Dyson´s G-Force can be overwhelming for the usual target group of vacuum cleaners. But this risk also can open a new market, for men willing to clean up with this robust masculine product. Therefore we think of Dyson´s innovation as a market/ technological innovation.

    Dyson´s latest introduced product, the hand dryer (Airblade), is based on their already known technology. Instead of using a wide jet of heated air, it uses a layer of unheated air traveling at around 400 miles per hour. The Dyson Airblade dries hands in 10 seconds and uses less electricity than conventional hand dryers. Next to that the hand dryer is more hygienic because of fewer contact with the device. This product is a very clear example of a market innovation. Dyson could use their knowledge of the technology to design a product that was completely new to them. With this product they entered a new market, a Business-to-Business market for public sanitary.

    Oct 18, 2011 @ 2:44 pm


  2. Team EFCOM

    During this exercise, we have discussed a number of success and failure stories and we decided to present here the most striking examples of them.
    Our success story was about the SAAB turbo engine. A reason for this success was the fact that the company merged in this new product, a known technology that they used before in planes, with their technology in making cars. In this way they combined their expertise in two fields in one innovation. This way of innovation was really logical for their brand and by doing this they also introduces a new market of turbo cars, which targeted young people who liked speed in their driving. We think that this is a nice example of brand driven innovation. An example of external opportunities which triggered this innovation was the fact that more young people started to drive at this decade.

    One of the failure stories that we discussed was the Google wave. Google wave was software for real time editing, where emails were combined with social networks and load of other applications. In the end Google Wave turned out to be a major failure for Google. The brand ‘Google’ is normally known for its ability to make information easy to reach in a fast and simple way. We therefore think that the main reason of failure of Google Wave is the loss of focus on their brand. By developing this software Google wanted to implement other fields like social networks in their portfolio, but this failure showed that the step into this new was not realistic for Google or people just weren’t waiting on another lot to provide these services.

    Oct 20, 2011 @ 7:11 pm


  3. 6MINUS1

    Reverse engineering the strategy behind an innovation is a tricky business, especially when discussing successful innovations. Analysts will always try to reverse engineer the strategy behind the success and will try to draw conclusions to help future strategy-decision-making. In some cases, the strategy that is distilled will be different from the initial strategy that led to the innovation. Business models change, consumer preferences change, internal and external influencing factors change; strategy is dynamic. When distilling strategies from innovation, we should bear in mind that our perception of the strategic foundation of some innovations may be wrong.

    A good example from our chosen innovations is the Toyota Prius. When discussing the strategy behind the first big hybrid car, we discovered that our perceptions were very different. The Prius was the first hybrid car to hit the consumer market successfully, but did the innovation represent a change in strategy or was it just a pet-project of the CEO? Was the Prius the first manifestation of the new strategy or did its success make the company rethink its strategy?
    Toyota was always known to be a fast-follower in the car market, offering middle-range cars to their customers. Currently, they are promoting innovation and sustainability as their main drivers and are leading innovators. We believe that Toyota was trying to change their strategy from fast-follower to innovator in order to get ahead of competition in a world with growing demand for sustainable products. Competition was rising; safety and overall quality were beginning to become commonalities and new value needed to be found. The Toyota Prius was a try-out project and became very successful, because it fitted the need to show your eco-sensitivity.
    Therefore, we believe that the success of the Prius redefined the overall Toyota strategy, pushing Toyota towards an innovation- and sustainability-leader in the car industry. While our perception may be that the company was following a sustainable innovation-leader strategy, the initial strategy may have been: extending out portfolio with an eco-friendly car that will enhance the brand perception.

    From this case we learned that we need more information on the company to distill its strategy, because our perception of the strategy is enormously influenced by the promotion of the current strategy. Reverse engineering the strategy is tricky, because strategy is dynamic.

    Oct 24, 2011 @ 6:11 pm


  4. G3

    From what we haven discussed during the session, we ¬¬found KeyShot, which is a fast rendering software could be an interesting case to talk about here.
    We triggered the discussion with these several questions:
    1.What makes this product special?
    2.Is it a logical innovation?
    3.What is its purpose?
    4.What strategy was implemented?

    Keyshort is a new rendering approach, it offers fast rendering with little technology knowledge. Users only need six easy steps to finish rendering, a quick workflow. (http://www.keyshot.com/ tutorial video) This is the strongest advantage that users can get from the software. With the help of Keyshot, even junior design students can render out amazing pictures. In some extent, the software also helps designers who are not good at playing software build up their confidence. What’s more, the price of Keyshot is quite low, that means, Keyshot can be easily access to company and even amateur designers. The newest generation is about being released, in this version; designers not only render models in the software, but also make animation with it.

    Keyshot can be count as a logical innovation. The oldest Keyshot is named Hypershot, it creates previously unknown demand, that designer need a relief from complex techniques of expression. The real-time rendering process is more logical than standard rendering process. Designers need to know the effects they can get before rendering.

    The purpose of this product is to break down the complexity barriers of creating photographic images from 3D models. The designers can easily try out their concepts and make design decisions.

    LUXION stressed that they are the experts behind designers, they will help designers to deal with the technical problems about lighting simulations, they want the designers can put more energy on creating instead of wasting time on expression. They aim at providing a render tool that is easy, fast and amazing. LUXION is the expert in front of designers; it also has a brain trust behind its back. The company has a group of strategic partners to help them develop Keyshot. It is the guarantee to keep the innovative image of the company.

    Oct 24, 2011 @ 9:12 pm


  5. Group 13 - Paper Planes

    First of all, we came back to the exercise where we arranged different kinds of innovations into a table. From that point we selected some from there, however we also came up with new ideas which could even fit more to the topic. The innovations selected to describe are shown below:

    Twitter

    If we look at Twitter, people sometimes wonder why it is such a success. Especially in the beginning when Twitter just started and was not really popular yet (early adapter stage), a lot of people didn’t expect Twitter to grow into such a popular website/service. If you look at the actual innovation, it is not very radical. Basically it is just posting status-updates like it was already possible in Facebook and other social networks. There is a major difference though, and that is that your twitter page is much more similar to a weblog (this concept existed already for a long time, and was/still is very popular) then to a personal profile on a social network. So you could describe twitter as a collection of micro-blogs (the messages are short, there is a limitation) and essential to its success is the ability to use mobile devices to post something on twitter. Also it makes it possible to not only follow your friends (like Facebook) but also famous or inspiring people that you don’t personally know. 
Now if you consider all this, it is actually pretty clear what the advantages of Twitter are over other services like Facebook and weblogs. It makes full use of the potential of mobile devices, it is less attached to a personal profile, and in practice it costs less time to post (or to actually read posts) than a weblog (which again makes it perfect for mobile devices).

    Nespresso

    Nespresso is our second choice. Nowadays is the European leader in the portioned coffee market. Its system was based on changing the coffee experience without losing on the essentials of coffee making. For that, they created coffee portions, objectified in capsules that fit on their own coffee machine. Thus, every user could have many different flavours without compromising the quality. Furthermore, one of the main characteristics of it was the user friendliness and the time efficiency. Just one movement was required to get a coffee and quality is always equal. From the user there was a huge transition from making coffee with real beans to making it with only a capsule.

    Surprisingly, when looking for more information from their success, we discovered that the experience change was not the only key point. As far as Nespresso has always been innovative, they also had a notably rapid adoption and presence on the Internet. Approximately a decade ago, a club was created with an online shop was established aiming the orders for coffee machines and capsules. Hence, to reach their objectives, Nespresso became active in the traffic management aspect for its websites and launched a strategic qualitative and quantitative monitoring agenda in order to closely follow demand in key markets. With the growth of its e-business budget, Nespresso places great importance on the strategic optimization of organic search listing. The brands official sites are ranked at the top of the search result listings, yielding maximum visibility. It is clear

    To conclude, what we have realized how the strategy can really be more innovative that the product in itself. However, for several reasons we usually can not detect this fact, mainly because we need much more information to dissect it . This is well explained with the internet search engines Nespresso factor.

    Oct 25, 2011 @ 10:59 am


  6. G3

    From what we haven discussed during the session, we ¬¬found KeyShot, which is a fast rendering software could be an interesting case to talk about here.
    We triggered the discussion with these several questions:
    1.What makes this product special?
    2.Is it a logical innovation?
    3.What is its purpose?
    4.What strategy was implemented?

    Keyshot is a new rendering approach, it offers fast rendering with little technology knowledge. Users only need six easy steps to finish rendering, a quick workflow. (http://www.keyshot.com/ tutorial video) This is the strongest advantage that users can get from the software. With the help of Keyshot, even junior design students can render out amazing pictures. In some extent, the software also helps designers who are not good at playing software build up their confidence. What’s more, the price of Keyshot is quite low, that means Keyshot can be easily accessed by a company and even amateur designers. The newest generation is about being released, in this version; designers not only render models in the software, but also make an animation with it.

    Keyshot can be seen as a logical innovation. The oldest Keyshot is named Hypershot, it creates previously unknown demand, that designers need a relief from complex techniques of expression. The real-time rendering process is more logic than a standard rendering process. Designers need to know the effects they can get before rendering.

    The purpose of this product is to break down the complexity barriers of creating photographic images from 3D models. The designers can easily try out their concepts and make design decisions.

    LUXION stressed that they are the experts behind designers, they will help designers to deal with the technical problems about lighting simulations, they want that designers can put more energy in creating instead of wasting time on expression. They aim at providing a render tool that is easy, fast and amazing. LUXION is the expert in front of designers; it also has a brain trust behind its back. The company has a group of strategic partners to help them develop Keyshot. It is the guarantee to keep the innovative image of the company.

    Oct 25, 2011 @ 6:01 pm


  7. Paradox 20

    We decided to pick two brands to evaluate on their innovation strategy choices: Polaroid PoGo and Logitec’s space navigator 3D mouse.

    Polaroid PoGo is a mobile pocket format photo-printer to which you can send your picture and print it immediately. The most innovative part about the product is the thermic paper that can change the color of the paper by using warmth, and is dry already when it comes out.
    Everyone of course knows the old Polaroid camera from instant photographing. The disadvantage was that it prints already if you push the button. With the Polaroid PoGo you can decide yourself which pictures to print and which not.
    In this example it is easy to address why Polaroid brought this product on the market; to open up a new market. This is because they lost market share, and even got bankrupt. Only it is set on the market very late, because digital cameras and printers are there for a long time already. This fact, together with the fact that instant printing of pictures could only be useful for artists and on weddings, makes that the innovation is not that successful.

    The Logitec Space Navigator 3D mouse is an ergonomically shaped combination between a mouse and joystick that is mainly designed for 3D (CAD) designers started design tablets. It is a can be used very intuitively, and several different actions can be done simultaneously.
    The innovation is a logical one for Logitec, because this company already made mice, but these mice could not compete to the tablets anymore. That is why Logitec started to make their own device, which is very convenient to use in 3D-environments. It is a technological innovation on an existing market and is meant to shield off competition. The Space Navigator 3D mouse became a success because it was a new kind of 3D mouse in the market that is very intuitive and comfortable in use and is compatible with a lot of 3D applications.

    Oct 28, 2011 @ 1:47 pm


  8. peer2peer

    Brands: Lego, Skype, Post-it, Cirque du Soleil, Tata Nano
    [img]http://www.branddriveninnovation.com/wp-content/In Practice-Chapter 4.jpg[/img]

    Nov 02, 2011 @ 9:09 pm


  9. - shiqi -

    We found some examples and picked the most striking one to present. The brand is called “Home plus”, a supermarket chain/retail store which is jointly owned by Tesco and Samsung. In South Korea, Home plus ranked No.2 and wanted to exceed the No.1 supermarket, E-mart. Home plus had a fewer number of stores compared to E-mart, if they wanted to overtake the number it cost a large amount of money.

    They discovered that most Koreans tend to shop in stores near their homes because it is more convenient. Some of them even hardly have time to go shopping. Thus, instead of opening new stores Home plus designed an innovative shopping service for consumers, focusing especially on the commuters as their target group.

    They “bring the stores to consumers” by posting product images at the subway station. Dull grey walls suddenly become supermarket shelves, displaying all products a real supermarket also has. Consumers scan QR codes linked to the products which will automatically land in the consumers’ online cart. When the online purchase is done, the products will be delivered to your door right after you get home.

    We think this move is a little risky because this virtual store still misses the physical part, so quality of products cannot be checked by consumers themselves. This leads to another problem: consumers do not have the power to choose because they receive the products in a passive position. Thus, we think this new service can be an addition to traditional supermarkets, but still cannot replace it. And that’s exactly what Home plus provides. Consumer can still go to Home plus’ physical store, but they also can choose to shop at the subway.

    For the consumers, the shopping experience is convenient and quick like online shopping, and still can see the 1:1 size pictures of products when shopping. In addition to that, Home plus manages to transform boring waiting time to enjoyment of shopping and save time for people who are too busy to go to an actual supermarket. As for the company, instead of spending money on opening a real store, they rent the space to create a virtual store in the subway where can easily show their products to target group, and at the same time have the effect of advertising.

    As a result, Home plus overcame the obstacle – having fewer stores, and the rank is almost the same as the NO.1 E-mart. From this case, we can learn that making the right decision to guide the brand is really important. It is a good example of leverage by applying new technology (QR code) to reach the goal: exceed the competitor. They meet the consumers’ needs and solve a paradox: boring waiting time becomes saving time and a convenient way of shopping. Both their online and offline stores are beneficial, and they improve the brand image by only one innovative service.

    Nov 02, 2011 @ 11:02 pm


  10. Group 12

    S.M.A.R.T.

    1. The idea of the SMART car was that it would be a:
    – Tiny car (which could be easily parked in big European cities)
    – An energy efficient car (mainly because its low weight)
    – A incredible cute car (tiny and the coloured panels were replaceable)
    – A different presentation for consumers (you could just pick one from a huge pillar)

    In that sense the car was very innovative, it was one of the first cars to care for the environment and think about the parking aspect of driving. Also the way a SMART was bought was unique in the car branch.

    Qua attention the car was a big success, everyone knew or heard from it. Commercially wise the success was not as great as expected. It lost more money every year and nowadays the brand isn’t a big player at all on the car market. The brand, which originated from Swatch watches, even became a silly car, a car which was laughed at for its looks and image. The fact that SMART stems from Swatch seems illogical. The leap is just too big.

    2. The purpose of the innovation was to change the car industry, a friendly car which was not based on status, a useful car in which you could easily do groceries or visit your nearby family. Therefore it was definitely open to new markets, or better, open to define new markets.

    Senseo

    1. From collaboration between Philips en Douwe Egberts (a Dutch coffee brand) the Senseo derived, a quick and easy coffee making machine (introduced in 2001). An innovation which made the fully saturated and mature coffee market shakes on his knees. It was a big success in the Netherland. In the first four years over 15 million copies were sold worldwide and by 2007 one-third of the coffee in the Netherlands came from pads. The innovation was very logical for Douwe Egberts and Philips, looking at their core of business and the trends in that time (individualization, personalization, ease of use and appearance of espresso).

    2. Douwe Egberts was the main player in this cooperation Philips was very clever to participate in this project. The product is often used to show that they fulfil their brand promise (Sense & Simplicity is their slogan, red). So the purpose was on the one hand fulfilling the brand promise of Philips and on the other hand gaining sales from the pads for Douwe Egberts. This, however, did not work out as planned. They were unable to patent the pads because according to the judge they were too little innovative.

    Team Coffee-Break (group 12)

    Nov 03, 2011 @ 12:27 am


  11. Group 15

    In this exercise, we studied six innovations that we found interesting, some of them were also used in the previous exercise on p. 25 in the book.

    In general, these innovations are interesting because they are all introducing something new or outstanding to the market. But it should be noted that not all of them were commercially successful and some of them are only in the starting phase of their potential success. The possible purpose, strategy and the possible scenarios behind the innovations seems to be, not surprisingly, connected to each other and also quite close to the described stories of the innovations found on the internet. However, it was not always easy to find the “true story” about the innovations and even though we found some related stories to the innovations, we can not be sure that the organisation actually reveals the true or complete story.
    To keep this entry relatively short, we’ll only use one example of the discussed innovations to illustrate our result from the exercise. See the attached chart for the other examples.[img]http://www.branddriveninnovation.com/wp-content/p.113 table.jpg[/img]

    We discussed about the Superbus project innovated at TU Delft. (For more information check: http://www.superbusproject.com) This innovation is interesting because it tries to replace cars with a combination of public and private transportation. We do not regard this as a success for the Netherlands, but it seems that there is a potential of implementing the concept in Dubai, so it might be in its starting phase of success. Whether the innovation seems to be logical from its brand or not is quite difficult to conclude, since the Superbus project does not really stem from an existing brand. However, the university and the innovator himself could be regarded as a brand.

    Our suggestion about the possible purpose for the Superbus is to create a new service that supports sustainability. In order to make it commercially successful and creating a new market, the Superbus project’s strategy might be to try it out in different places in the world, e.g. in Dubai. The possible scenario we thought of was that the project was not about presenting a new means of transportation but rather about promoting sustainability and maybe the innovators (and TU Delft) as well.

    The “story” we found on the homepage of the Superbus project is that the research team wanted to create a carefree, comfortable and customised transportation. The strategy that could be interpreted from the homepage is that the Superbus team tries to compare the Superbus with present day’s public transport, in terms of money and time, to convince potential consumers that it’s a potential alternative to today’s public transportations. “Superbus is a new concept for sustainable mobility” is written on the homepage and this supports our speculation that the innovator is trying to promote sustainability. But other than that, we did not find the objectives behind this project explicitly explained.

    Nov 03, 2011 @ 4:22 pm


  12. [PENTAGON]

    DISTILLING STRATEGY FROM INNOVATIONS

    In this exercise we discuss about the strategic objectives behind some of the innovations developed by the following companies: Mini Cooper, Crocs, Mtv and Coca Cola.

    // MINI COUNTRYMAN //
    The nature of innovation for the Mini Countryman is based on the offer of a 4 door, 4 passenger new model. Analyzing mini’s strength as a brand, we can notice that minis greatest asset is the brand itself. Costumers are loyal to the brand in many different ways; not only by the purchase of cars, but by the purchase of other merchandise such as t-shirts, key chains etc. Mini costumer’s features enabled the brand to explore new business opportunities.

    Consider mini consumers as young, modern; an active one can conclude outdoor sports as a common practice amongst these. Based on this important trend; mini decided to introduce the Mini Countryman. This model has four doors and a wide-opening rear lid which provide more space for versatile use; it also offers an ALL4 all-wheel-drive for motoring enthusiasts. The MINI Countryman maintains the main characteristic of Mini driving experience, the go-kart feeling besides the key features of the brand such as design, premium quality, handling, efficiency and customization.

    Mini decided to innovate through the development of the Mini Countryman as an opportunity to offer alternatives to its market based on the discovery of a new trend. In order to do so, the company used its current resources such as know – how and expertise, and the support of the BMW platform to develop this innovation.

    // CROCS //
    Crocs products design is well-known by its unique style. The company has developed a consistent product portfolio based on the brand characteristics such as the use of plastic as main material and a non-ordinary shape in its design. The first Crocs shoe was a controversy design; people tend to either love or hate it. Once the company understood this extremely perspective from customers, they decided to develop more stylish designs to have a better acceptance in the market. Through the offering of these new models, customers that use to dislike the brand started to turn around and look at it and even buy its products. To develop this innovation, Crocs used the expertise they already have but increase the importance of aesthetics. The introduction of more stylish models was an incremental innovation that fit the essence of the Crocs brand.

    // MTV MOBILE //
    MTV mobile is a clear example of brand stretching. Once again MTV’s most valuable asset is the brand itself which has a value of US $6.08 billion. Over the years it has become an icon for their core audience: Young generations. It has achieved to embed in people minds, that even when you don’t watch any television you would be able to recognize the brand and easily associate it with its target group.

    The fast evolution in communications in the last few years has lead MTV to reframe its business and broaden its brand from being a TV channel to a telecommunications company. In hand with the increasing use of smart phones amongst young users, MTV used its brand as a platform for the launch of its mobile communication service provider. The mobiles services that they offered include music news, premium ringtones, and special numbers to contact Mtv’s Vj’s and featured artists. The branded mobile service “Hello Mtv” uses Telia Mobile’s GSM network and has subcontracted the mobile virtual network enabler Spinbok to provide network management, billing and customer care.

    Mobile operators have key assets such as a large customer contract base, access to personal data and location information about mobile users. Media companies have cognitive and emotional relationships with their audiences that they establish with the support of their brand identity and their brand promise. Through a strategy called Mobile Network Operator (MNOs) these two actors are cooperating to create value. In this way young users easily become familiar with the brand and MTV treasures important expertise and assets in the field of telecommunications.

    // COCA COLA ZERO //
    A few years ago Coca Cola Company decided to expand their portfolio by adding a new product targeted to young men. This is the result of a market trend, which mainly consists in men care. In the last ten years the market for men care has increased enormously resulting in new products, which would have been previously considered female targeted.

    The Coca Cola Company came up with a new idea, which mainly consists in the same formula as Coca Cola light. The main difference relies in the can, which suggested by the predominance of black is targeted to male. This is complemented by a strong advertising campaign employing famous athletes. This enhances the message in two ways fitness and masculinity.

    Coke achieved to enter the male light soda market successfully, without having to invest in the development of a new formula.

    Nov 04, 2011 @ 7:00 pm


  13. Group 11

    During this session we discussed several innovations that were either successful, a failure, unexpected or surprisingly clever. We picked two of these innovations, and took a closer look at them.

    iPod
    In 2001 apple announced their MP3 player, the iPod. With this product, Apple wanted open up a new market for the company. The concept of the MP3 player already existed. The innovation was in the technology they used in the device; using a relatively strong processor to make sure the interaction is very fast, scrolling trough the menu’s is done with a wheel instead of buttons, which made the interaction a lot easier. The other innovation was the aesthetics of the device. Apple gave the iPod a minimalistic look. The MP3 player was white/metallic and the earplugs where white as well, while existing MP players mainly use black. Where people used to hide the cable of the earplugs under their clothes, they now wore it in sight as a fashion attribute. This is one of the key aspects why the iPod turned into such a big success. Looking at the design of the device and its interface, it makes the product a design-driven innovation.

    Wii
    Nintendo has been making game consoles for more than 20 years. As the technology improved the game consoles improved. At some point two major players joined the market, Sony (Playstation) and Microsoft (Xbox). These companies focused on the graphics of the games. Nintendo knew they couldn’t compete and decided to go in a new direction. Instead of making a expensive console with high-quality graphics, they came with a affordable console that is fun for the whole family (compared to hard-core gamers). Nintendo brought the Wii to the market. The big innovation of this product is that it encourages people to do physical exercise while gaming. This is a response to the criticism game-consoles got because it de-motivated kids from playing outside and so made them fat. They sold the consoles for a very low price so a lot of people would buy them. In order to play certain games the consumer had to buy different joysticks. Which made the consumer still pay a considerable amount of money in the end. The product is technology-driven and a response to the market.

    Nov 08, 2011 @ 4:38 pm


  14. Four

    Pick six innovations:
    1. iStore
    2. Penicillin
    3. Concorde
    4. Easy Jet
    5. Prius
    6. Nokia touchscreen

    iStore

    The iStore brought a revolutionary way of buying music and other media. Apple was the first company to majorly adapt to the fact that more and more music was being downloaded, since the emergence of P2P programs such as Napster.

    By introducting the iStore Apple bridged the gap between legally receiving music from record companies, and mp3 players such as their own iPod. Creating an opportunity out of a threat (Napster). Another innovation within the iStore was the fact that Apple was also going to sell single songs for $0,99 instead of mere whole albums.

    Prius

    The Toyota Prius was the first hybrid-electric automobile that was available to the bigger audience. Toyota released this car in 1997 in Japan, followed by worldwide in 2001. The interesting bit is that they launched this car years before the main public began to take notice of global environmental issues. This is where the car gets it’s name, ‘Prius’ meaning ‘before’. So it seems Toyota had foreseen these trend.

    This global awareness was caused for the bigger part by the release of the movie ‘An Inconvenient Truth’ by Al Gore in 2006. From then on Prius sales started rising, in 2008 they reached the milestone of 1 million cars sold (nine years after the market entrance), while only two years later they managed to double this amount.

    Nokia smartphone

    In 2000 Nokia was the first mobile telephone company to introduce a smartphone to the market; the communicator 9210. Nokia has long time been the market leader in the mobile telephony.
    However, since the rise of smartphone competitors such as Blackberry, HTC and the iPhone, Nokia failed to anticipate. Nokia was great competing in the market of communication. Yet mobile phones became no longer mere communication devices but interface objects through which users would experience multimedia. Nokia’s products didn’t meet up to these demands. Furthermore, Nokia kept their own operating system, Symbian OS, which wasn’t open to third party software writers, meaning that it wasn’t possible to download apps on the device.
    One of the reasons that might have led to this loss in market share is according to some the fact that engineers, not designers, made most of the choices.

    Concorde:

    Started as a prestige project between the French and British government to fly important people within a day to far location (e.g. London and New York in one day). Although the technical conditions were accomplished, the economics of the airplane weren’t sufficient enough to make profit.
    The innovation (which was launched in 1969) was to fly a passenger plane twice the speed of sound. Regular flight flew from 1976 and ended in 2003 due to the unprofitable business and a flight accident two years before.
    Although this innovation isn’t equaled till today, the flights were too expensive to make the flight profitable. One flight costs approximately 11.000 dollars for a return flight on the same day (London – New York). A lot of businessmen found it too expensive while they could do business in New York within one day. The accident in 2000 and increasing energy prices was the end of the Concorde.

    Easy Jet:

    The problem of Concorde was the high pricing. The innovation that Easy Jet introduces was substantial low prices. Although the technology was the same as other flight companies (maybe less, in order to make the flights cheap) Easy Jet could offer very cheap flights to all sorts of countries in Europe and surroundings.
    At that time flying was pretty expensive and thus Easy Jet reduced a lot of costs. For example, customers had to buy their own food, a very tight schedule and low return times.
    The innovation took place by an entrepreneur who believed in free flights for everyone. Although it is not free, the prices are so low that the business is still growing.

    Penicillin:

    Accidently the British bacteriologist Alexander Flemming invented penicillin in 1928 when he saw that there were no bacteria’s around the most. At that moment one of the biggest inventions in human history used to create antibiotics. Since 1938 the active antibiotics was commercially produced.
    The invention prevented hundreds of thousands of people dying from infections, diseases and other bacterial complications. During World War II the antibiotics was an expedient for infected soldiers.
    The invention was rewarded with the Nobel price for medicine. Today, a lot of people are concerning the use antibiotics since some countries use it too often. Some bacteria have become resistant against the medicine. The consequences are incalculable when bacteria’s become resistant to antibiotics.

    Nov 08, 2011 @ 7:10 pm


  15. Powers of ten

    In practice: distilling strategy from innovations

    For this exercise we elaborated on six cards used earlier during the ‘In practice: distinguishing between types of innovation’. Below, four of the six innovations are treated. The answers are ordered like asked in the book. The innovation that will be treated are: Havaiana, Smart, Segway and Dyson.

    Havaiana

    1. Havaiana (picture) is a traditional slipper-brand from Brazil. Usually, the aim was at the low class people, since the slippers were rather cheap. After rebranding through innovation, the slippers became a fashion icon with e.g. the many striking colours. After an observation study it became clear that people customized their Havaianas by changing the straps on their slippers.
    2. Havaiana’s purpose with rebranding was entering a new market and repositioning the brand. The innovation that is used looks obvious, but it definitely is not (observations, research, design). They even managed to have art books and exhibition about the brand all over the world, since it became internationally popular. Nowadays, the brand is still going strong. They even broadened their target group (which was already quite wide) by bringing bags and towels on the market as well.
    3. Nowadays, their market expanded even more: they now make shoes as well. Another interesting thing is the collaboration with Missoni, from which a collection of styles inspired by the Italian fashion house’s signature zigzag motif was established.

    Smart

    1. Smart (picture) is chosen because of their innovating technology process. The ‘father of innovation’, CEO of Swatch, designed the Smart in a way that one could change colour of his car by removing the plastics that were clicked on, which was an innovation in the automotive branch.
    2. The purpose of this innovation has been, besides a small and cheap car, a customizable car. The customizing of the Smart could be done by the user itself in a shop. However, it was no success because of the extremely high prices due to the collaboration with Mercedes. Trey tried to enter a new market of ‘small cars’, but eventually did not succeed.
    3. Nowadays, the electric smart car is available through a lease program. This car is characterized by ‘environmentally friendly driving fun at a custom friendly price’. This car should be the breakthrough of smart.

    Segway

    1. Dean Kamen, inventor of Segway (picture), invited Steve Jobs and Bill gates for a private show where he showed them the Segway, under the condition they would not share it with the outside world, yet. Gates and Jobs said it would change the world. However, the Segway turned out to be too expensive ( > €4000) because of the used (new) technology. Kamen managed to open a new market, but unfortunately the Segway wasn’t a success.
    2. The main thing about why the Segway might have failed is the technology-driven innovation approach instead of the user-centred innovation approach. Their strategy was to leverage from a new technology and not that much about opening a new market.
    3. Their approach should be more user-centred and user-friendly (price) in order to be successful. Today the Segway is mostly used in business context and as a rental device. Movies on the internet, like a monkey riding a Segway, should illustrate the ease of use of the Segway (purpose is clear).

    Dyson

    1. James Dyson, the inventor of the Dual Cyclone bagless vacuum cleaner (picture), which works on the principle of cyclonic separation, is founder of the Dyson company. The new technique definitely can be called an innovation and is used in many other products such as dryers, vans, blowing machines etc. The target group for these innovations is big and diverse, which contributes to the success of the Dyson company.
    2. With his innovations, he entered a new market. He leveraged technology to new products and he really made products better. He actually redesigned existing products by applying his new technology in a different way.
    3. A possible new market could be entered by designing a hair dryer, since it was found out on the internet that many people ask for such a product. The success of Dyson will go on, because of the products’ quality and the broadening of the target group.

    This exercise enabled us to think about the purpose and strategic objective behind innovation in a certain context. They all differ in a way that they entered the market with different innovations, but they also show similarities when looking at expanding their audience and making risky decisions. Some succeeded in innovating and communicating this to the outside (Havaiana & Dyson), while others should reconsider their strategic approach in order to reach the public (Smart, Segway).

    [img]http://www.branddriveninnovation.com/wp-content/Distilling strategy from innovation.png[/img]

    Nov 08, 2011 @ 10:08 pm


  16. Group 18

    Distilling strategy from innovations

    Among all our findings, we would like to share one successful and one unsuccessful innovation to help distilling strategy;

    Amazon

    The world’s largest online retailer started the business with only selling books but soon enhanced their product category from software to electronic, furniture and even to food. Lower costs and offerings made the brand reachable for the users and provided a delightful environment to shop. Their goal was to provide one online store instead of a lot of stores. By this purpose, a new market was created. They solved a gap in the market, leveled up the market expectations therefore shield off competition. The strategy behind it was quite unusual. They did not expect profit for couple years and when it came it was it was not high either. Amazon’s strategy was growth instead of profit. For this reason they dedicated themselves to create innovative technologies. It resulted with an innovative, user-centered and successful brand.

    Concorde

    [img]http://www.branddriveninnovation.com/wp-content/concorde_last_flight_red_arrows_escort[1].jpg[/img]
    Concorde was supposed to be one of ‘the products’ which changed the world. But it did not. Instead, it was surprisingly unsuccessful and resulted with cancellation of production. The innovation value was on the new way of transporting and its technology. The supersonic transport system was something that nobody ever heard of, therefore a technology-driven innovation. It was a co-creation of two brands; The British Bristol Aeroplane Co. and the French Sud Aviation which were both working on similar designs separately and they were hugely founded from their governments. The co-operation was according to financial reasons and it became something bigger than the brands themselves but a treaty between countries. The purpose of the innovation, of course was to hold a great advantage which leveraged from a new technology. It failed because of ultra expensive costs and low passenger capacity. The innovation was not accessible to the users. The innovation strategy was neither user-centered nor the target group was clear. Therefore the technology centered strategy did not reach the design objectives.

    Nov 08, 2011 @ 10:14 pm


  17. The TwentyONEs

    Distilling Strategy from Innovations
    In Practice / Chapter 4 / Page 113

    Nature of Innovation

    Portable Spot Cleaner consist a transformative innovation in cleaning services.

    What makes it special

    The Portable Spot Cleaner is built on a very solid consumer insight and it is highly relevant.It is an instant laundry device that has a positive impact on the environment by reducing consumption. Its usage and interaction are very intuitive. We all want one. The Portable Spot Cleaner is built on a very solid consumer insight and it is highly relevant.

    What has been the purpose of the innovation

    The theme in the competition’s ninth year was ‘Intelligent Mobility’ . The purpose of innovation has been the ease of use on instant cleaning, creating a portable device that can be used anywhere in the world. The brief particularly requested ideas that offer personalization and inspire users while utilizing existing technology to offer support and guidance.

    Internet stories

    Instant laundry device wins Electrolux Design Lab 2011 award
    (source: http://www.pdesigni.com/innovations/consumer)

    Portable Spot Cleaner wins Electrolux Design Lab 2011
    (source: http://www.electroluxdesignlab.com/2011/09/portable-spot-cleaner-wins-electrolux-design-lab-2011/)

    Nov 10, 2011 @ 10:54 pm

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about this blog
this is Erik Roscam Abbing's blog on topics relating to the synergy between branding, innovation and design. Erik is a consultant (www.zilverinnovation.com), teacher (www.io.tudelft.nl), and frequent speaker on the topic of Brand Driven Innovation. He is also the author of the book by the same title, to appear in autumn 2010 at www.avabooks.ch. For inquiries, contact erik at erik at zilverinnovation.com
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