2 questions about Wood Industry Business Management in Canada B.C
Nancy 00001
GastonValuePropositionsWOOD365.pdf
WOOD 365
Gaston January 2020 1
January 2020 1
Value Propositions / Innovation Strategies
Chris Gaston, Ph.D.
WOOD 365
2WOOD 365 Gaston January 2020
Objectives…
By the end of this presentation you should be able to describe:
– What we mean by “innovation”
– What we mean by “marketing”
– The basics of the “NABC approach” to innovating, or creating a value proposition
– The process of designing an “elevator pitch” as a first step in developing a “business plan”
3WOOD 365 Gaston January 2020
Customer
Competition
Company
What people want
Who else can deliver this want?
What you have that people want
MARKETING!!!
The concept of marketing
WOOD 365
Gaston January 2020 2
4WOOD 365 Gaston January 2020
Marketing Research
Market Mix
Marketing Strategy
• Customer • Company • Competition • Context/Climate • Collaboration
• Product • Price • Place • Promotion
Marketing Plan
Marketing plan
5WOOD 365 Gaston January 2020
The SRI approach to innovation
6WOOD 365 Gaston January 2020
SRI – The five disciplines of innovation
“Innovation is the creation and delivery of new customer value in the marketplace that also provides a
sustainable return to the enterprise.”
WOOD 365
Gaston January 2020 3
7WOOD 365 Gaston January 2020
SRI – The five disciplines of innovation
It is not the strongest of a species that survives, nor the most intelligent, it is the one most adaptable to change (Darwin)
8WOOD 365 Gaston January 2020
SRI – The five disciplines of innovation
9WOOD 365 Gaston January 2020
SRI – The five disciplines of innovation
WOOD 365
Gaston January 2020 4
10WOOD 365 Gaston January 2020
SRI – The five disciplines of innovation
11WOOD 365 Gaston January 2020
SRI – The five disciplines of innovation
Work on what’s important, not just what’s interesting
- Incremental or transformative
12WOOD 365 Gaston January 2020
SRI – The five disciplines of innovation
You don’t define value—your customers do!
Value Factor = Benefits / Costs
Value Propositions
NABC
WOOD 365
Gaston January 2020 5
13WOOD 365 Gaston January 2020
Value Factors
Prius
Quality Importance 0-5 Satisfaction 0-5 Benefit 0-25
Pollution 5 5 25
Styling 2 2 4
Reliability 5 4 20
“green” identity 5 5 25
Rear spoiler 0 4 0
74
Cost attributes Importance 0-5 Expense 0-$$$$$ Cost 0-25
Base price 1 $$$$ 4
Gas costs 3 $ 3
Repairs 4 $$ 8
Insurance 2 $$ 4
19
Value Factor for Prius 3.8
Value Factor for Taurus 1.4
14WOOD 365 Gaston January 2020
Value Factors – Conjoint analysis
Choice-based analysis • recognizes that most purchase decisions come
down to a few specific attributes • excellent way to determine the trade-off of these
attributes (including price without directly asking) • take a proprietary lumber product as an e.g.
size and placement of knots clear lumber rings per inch degree of wane degree of sweep company reputation price
15WOOD 365 Gaston January 2020
SRI – The five disciplines of innovation
WOOD 365
Gaston January 2020 6
16WOOD 365 Gaston January 2020
SRI – The five disciplines of innovation
17WOOD 365 Gaston January 2020
SRI – The five disciplines of innovation
No Champion, no project, no exception!
- Market or technical champions
18WOOD 365 Gaston January 2020
SRI – The five disciplines of innovation
No Champion, no project, no exception!
-Market and technical champions -Importance of “watering holes”
WOOD 365
Gaston January 2020 7
19WOOD 365 Gaston January 2020
SRI – The five disciplines of innovation
20WOOD 365 Gaston January 2020
SRI – The five disciplines of innovation
Launching these disciplines of innovation throughout the organization
-Fostering innovation culture
-Continuous Value Creation
21WOOD 365 Gaston January 2020
FPInnovations template for industry engagement
WOOD 365
Gaston January 2020 8
22WOOD 365 Gaston January 2020
Plastic Wood Composites
23WOOD 365 Gaston January 2020
Profile Decking
24WOOD 365 Gaston January 2020
An example – Profile Decking
Need • Decking is a 3 bbf + market in the N.A. ($6 billion +) • Wood plastic decking has taken 30%+ market share (with considerable price
premiums) Approach • Produce profiled decking • Applying considerable technical and market research • Establish demonstration sites • Develop value chain, including product positioning, branding and distribution Benefit • Pacific silver fir treatable and dimensionally stable • Profiling minimizes checking, adds design appeal • Brandable • Attractive pricing, high margin / return-to-log potential • Attractive LCA Competition • Plastic wood composites, non-wood, traditional treated
wood decking
WOOD 365
Gaston January 2020 9
25WOOD 365 Gaston January 2020
Profile Decking – Vancouver Home Show
26WOOD 365 Gaston January 2020
Profile Decking – Boathouse Restaurant Opening
27WOOD 365 Gaston January 2020
Profile Decking
WOOD 365
Gaston January 2020 10
28WOOD 365 Gaston January 2020
Profile Decking
29WOOD 365 Gaston January 2020
Profile Decking
30WOOD 365 Gaston January 2020
UBC South Campus
150 units with 150-350 sq ft decks
Profile Decking
WOOD 365
Gaston January 2020 11
31WOOD 365 Gaston January 2020
– Commercial and residential demonstration sites
– Validated in trials: margin uplifts of over $200 per mbf
– Distribution agreement; sales at over $2200 per mbf
Profile Decking
32WOOD 365 Gaston January 2020
Assignment 1
For this Tuesday OR Thursday (Group A / Group B).
In class work on developing a one-page elevator pitch. Final one-pager for each group due this Friday by midnight.
For following two Tuesdays OR Thursdays (Group A / Group B).
Elevator pitch presentations.
33WOOD 365 Gaston January 2020
SRI – Elevator pitch template
WOOD 365
Gaston January 2020 12
34WOOD 365 Gaston January 2020
SRI – Elevator pitch in action
https://www.bing.com/videos/search?q=yutube+elevator+pitch+TV+show&view=detail&mid=1 7B6FF22929E933FFF9117B6FF22929E933FFF91&FORM=VIRE
35WOOD 365 Gaston January 2020
Quiz #2
1. What is the difference between an “invention” and a “innovation”?
2. What does “N-A-B-C” stand for?
3. What are the two categories of value proposition “champions” that were identified in the lecture?
