Managing R&D in MarkStrat® simulation

Paris Chrysos

Professor of Innovation ManagementISC Parisparis.chrysos@iscparis.com@paris_chrysos

MBA Programme

Janvier, 2016 Paris Chrysos, ISC Paris

Overview

● Quick answer

● Longer answer

● How it works

Janvier, 2016 Paris Chrysos, ISC Paris

Quick answer

● It takes time

● It takes money

Janvier, 2016 Paris Chrysos, ISC Paris

Longer answer

● It's about creating a new product.

● A product is

– A brand

– A set of characteristics

– An R&D project

Janvier, 2016 Paris Chrysos, ISC Paris

The brand

● Helps people recognize it (it's the name)

● People get to know it through marketing

Janvier, 2016 Paris Chrysos, ISC Paris

The characteristics

● Correspond to people's specific needs.

● Different categories of people, need or like different things in the product (characteristics or features).

Example the importance of the characteristic “Battery” for different categories (savers, shoppers, explorers, professional, high earners) and the corresponding brand positioning (“Semantic Scale”)

Janvier, 2016 Paris Chrysos, ISC Paris

The R&D project

● The enterprise learns how to create a product with the desired characteristics through an R&D project

Janvier, 2016 Paris Chrysos, ISC Paris

How it works

Janvier, 2016 Paris Chrysos, ISC Paris

How it worksIn time

● Round N

– Decision: “Learn how to make a product with these characteristics” (because I know that's what a specific market segment wants). Let's name it “POROVE”..

● Round N+1

– Decision: “Create a new brand, based on the results of the R&D project” OR “Change the attributes of an existing brand”.

– Decision: “Tell the people we have it!” (marketing)● Round N+2

– That's when you get the money...

Janvier, 2016 Paris Chrysos, ISC Paris

Round N:Order the research

Janvier, 2016 Paris Chrysos, ISC Paris

DecideR&D

Janvier, 2016 Paris Chrysos, ISC Paris

Start a new R&D project

Janvier, 2016 Paris Chrysos, ISC Paris

Order your characteristics

Janvier, 2016 Paris Chrysos, ISC Paris

And pay for it!

Janvier, 2016 Paris Chrysos, ISC Paris

Round N+1:Create a new brand

Janvier, 2016 Paris Chrysos, ISC Paris

Go to Brand Portfolio

Janvier, 2016 Paris Chrysos, ISC Paris

Launch a new brand

Janvier, 2016 Paris Chrysos, ISC Paris

Give it a Brand name, a role, and select your R&D project

Janvier, 2016 Paris Chrysos, ISC Paris

Round N+2:See what you've done, get the money!

Janvier, 2016 Paris Chrysos, ISC Paris

Want to know more ?

Where to start from● Nonaka, I., Umemoto, K., & Senoo, D. (1996). From

information processing to knowledge creation: A Paradigm shift in business management. Technology in Society, 18(2), 203–218.

● Hatchuel, A., Le Masson, P., & Weil, B. (2001). From R&D to R-I-D: Design strategies and the management of “Innovation Fields.” In 8th International Product Development Management Conference.

● Le Masson, P., Weil, B., & Hatchuel, A. (2010). Strategic Management of Innovation and Design. Cambridge University Press.

● Maniak, R., & Midler, C. (2014). Multiproject lineage management: Bridging project management and design-based innovation strategy. International Journal of Project Management, 32(7), 1146–1156.

Janvier, 2016 Paris Chrysos, ISC Paris

Thanks for watching !