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Transcript of Geoff Moore at SEE
Symbian 2015
Building an Innovation Strategyto Win the Smart Phone Market
Geoffrey MooreSymbian Exchange & ExpositionOctober, 2009
2 Dealing with Darwin © 2009, TCG Advisors LLCApril 8, 2023
Agenda
• Why have an innovation strategy?
• The key to a winning innovation strategy
• The impact of category maturity on innovation strategy
• What Symbian should do: An outsider’s view
3 Dealing with Darwin © 2009, TCG Advisors LLCApril 8, 2023
Why have an innovation strategy?
Most innovation is wasted
4 Dealing with Darwin © 2009, TCG Advisors LLCApril 8, 2023
How Innovation Doesn’t MatterRemember Your Vector Math Class!
= 0Bubble-up Innovation
When organizations innovate “bottoms up,”competitive separation is small,
and differentiation is not sustainable:Lots of activity, not much to show for it.
5 Dealing with Darwin © 2009, TCG Advisors LLCApril 8, 2023
Competitor 2*
Competitor 1*
Competitor 3*
YOU*Gain bargaining power by getting separation
from your competitive set
*
Competitive Set
Failure to separate equates to lack of ability to influence the market
COREAmplify a specific
vector of innovation
Innovating for DifferentiationFocus on Competitive Separation
6 Dealing with Darwin © 2009, TCG Advisors LLCApril 8, 2023
FailedAttempts
Waste
Return on Innovation
Differentiation Neutralization
Optimization
Sources of Waste:• Differentiation projects that don’t go far enough• Neutralization projects that go beyond good enough• Unaligned innovation efforts that cancel each other out
PRODUCTIVITY
CORE CONTEXT
7
Questions to AskApply These to Every Initiative You Sponsor
• Which of the three returns on innovation are we targeting? (Note: It is never appropriate to target more than one.)
• Have we staffed this initiative with the appropriate type of leader?
• Do our metrics of success measure the return we are seeking?
Dealing with Darwin © 2009, TCG Advisors LLCApril 8, 2023
8 Dealing with Darwin © 2009, TCG Advisors LLCApril 8, 2023
The key to a winning innovation strategy
Declare your core andrally around it
9 Dealing with Darwin © 2009, TCG Advisors LLCApril 8, 2023
Building an Innovation StrategyValue Disciplines as Innovation Zones
ProductLeadership
Zone
OperationalExcellence
Zone
CustomerIntimacy
Zone
Which zone is your sweet spot?
10 Dealing with Darwin © 2009, TCG Advisors LLCApril 8, 2023
Vectors of InnovationTargeting Your Sweet Spot
SolutionInnovation
PlatformInnovation
ProductInnovation
DisruptiveInnovation
DesignInnovation
ExperientialInnovation
MarketingInnovation
Line ExtensionInnovation
IntegrationInnovation
BusinessModel
Innovation
ProcessInnovation
ValueEngineeringInnovation
ProductLeadership
Zone
OperationalExcellence
Zone
CustomerIntimacy
Zone
Dell
Microsoft
HP
SAP
Salesforce.com
Genentech Autodesk
IDEO
TSMC
Apple
11 Dealing with Darwin © 2009, TCG Advisors LLCApril 8, 2023
Creating Definitive SeparationHow Great Companies Outperform Their Categories
• Identify a primary vector of differentiation, and declare this to be core. This will be your “Path out of the Yellow Circle.”
• Drive offer and program investments “beyond reason” along your core vector to the point where the competition either cannot or will not follow.
• Reengineer supporting context processes to further accentuate and enhance your core differentiation. “Tilt” toward core.
• Fund these extraordinary efforts by productivity initiatives focused on extracting resources from context activities.
12
Questions to Ask
• Have we declared or do we know which vector or vectors of innovation are core for our enterprise?
• Do we have “crown jewels” that give us distinct competitive advantage on one or more of these vectors?
• Are we over-investing on these vectors and making the corresponding cuts elsewhere to fund this focus?
Dealing with Darwin © 2009, TCG Advisors LLCApril 8, 2023
13 Dealing with Darwin © 2009, TCG Advisors LLCApril 8, 2023
The impact of category maturityon innovation strategy
Different types of innovation succeed at different times
14 Presentation Title © 2003, TCG Advisors LLCApril 8, 2023
Technology Adoption Life Cycle
Pragmatists create the dynamics of high-tech market development.
Innovators EarlyAdopters
Early Majority Late Majority Laggards
Techies:Try it!
Pragmatists:Stick with the herd!
Conservatives:Hold on!
Skeptics:No way!
Visionaries:Get ahead of the herd!
15 Presentation Title © 2003, TCG Advisors LLCApril 8, 2023
High-Tech Market Development Model
Chasm
Tornado
TotalAssimilation
BowlingAlley
Main Street
EarlyMarket
16
Time
Rev
enu
e G
row
th
Technology AdoptionLife Cycle
Indefinitely elasticmiddle
AEnd of
Life
FaultLine!
EDeclining
Market
DMature Market
CGrowthMarket
B
Category Maturity Life Cycle
© 2008, TCG Advisors LLCApril 8, 2023
17
Performance Buyers Relationship Buyers Value Buyers
Life-Cycle Marketing StrategyBuying Focus Evolves as a Percentage of Overall Mix
Dealing with Darwin © 2009, TCG Advisors LLCApril 8, 2023
18 Dealing with Darwin © 2009, TCG Advisors LLCApril 8, 2023
Building an Innovation StrategyValue Disciplines as Innovation Zones
ProductLeadership
Zone
OperationalExcellence
Zone
CustomerIntimacy
Zone
Just to reconfirm,which zone is your sweet spot?
PerformanceBuyers
RelationshipBuyers
ValueBuyers
19
Questions to AskApply These to Every Category You Compete In
• Where is this category in the Category Maturity Life Cycle?
• Which type of buyer do we have the best chances with? What are we doing to win as many of these buyers as we can?
• What is our best bet for winning as many of the dominant type of buyer as we can (even if that is not our sweet spot)?
• Where is the least valuable place we can spend our energy, and what are we doing to minimize our activities in that area?
Dealing with Darwin © 2009, TCG Advisors LLCApril 8, 2023
20 Dealing with Darwin © 2009, TCG Advisors LLCApril 8, 2023
What Symbian should do
An outsider’s view
21 Dealing with Darwin © 2009, TCG Advisors LLCApril 8, 2023
Prioritizing Vectors of Innovation
ProductLeadership
Zone
OperationalExcellence
Zone
CustomerIntimacy
Zone
ProcessInnovation
Toyota
PlatformInnovation
Microsoft
Line ExtensionInnovation
Mattel
IntegrationInnovation
SAP
ExperientialInnovation
Starbucks
ProductInnovation
Apple
BusinessModel
Innovation
Salesforce.com
DisruptiveInnovation
Genentech
SolutionInnovation
RIM
DesignInnovation
IDEO
MarketingInnovation
P&G
ValueEngineeringInnovation
Southwest
Too niche focused
Too niche focused
Too company specific
Too company specific
Too company specific
Too company specific
Ditto
22 Dealing with Darwin © 2009, TCG Advisors LLCApril 8, 2023
Symbian Innovation Strategyfor Mature Markets
ProductLeadership
Zone
OperationalExcellence
Zone
CustomerIntimacy
Zone
ProcessInnovation
Toyota
PlatformInnovation
Microsoft
IntegrationInnovation
SAP
BusinessModel
Innovation
Salesforce.com
ValueEngineeringInnovation
Southwest
Refresh and extend your reach at the low end of the market as feature phones evolve to
smart devices
23 Dealing with Darwin © 2009, TCG Advisors LLCApril 8, 2023
Symbian Innovation Strategyfor Growth Markets
ProductLeadership
Zone
OperationalExcellence
Zone
CustomerIntimacy
Zone
PlatformInnovation
BusinessModel
Innovation
Use Neutralization Innovation to catch up
and eventually overtake existing
market leaders
Exploit Business Model Innovation to
differentiate from existing market
makers
24
Final Thoughts
• Manage Growth Market and Mature Market initiatives separately• Focus the first on Performance Buyers, the second on Value Buyers
• Exploit your distribution advantage in the feature phone market• Create a value-based upgrade path that stays within the price
envelope that is optimal for the low-end market
• Exploit your business model advantage in the smart phone market• Neutralize and then commoditize every currently differentiating
element as fast as you possibly can
Dealing with Darwin © 2009, TCG Advisors LLCApril 8, 2023