SEARCHING FOR INNOVATION OPPORTUNITIES PROJECT
James05
WK03_ENES663_MarketplaceAdvantageOpportunities.pptxHow Does the Marketplace Generate Innovation Opportunities?
Market Exploitation Opportunities
These sources present marketplace advantage opportunity to organizations:
Translation of Ideas from one market to another
Associating an Innovation Analogy
High-Growth Business Segments or Regions
Translating Market Ideas
Where customer preferences translate from different regions or markets
Where marketable ideas or innovations are translated by hi-tech communication or global business interactions
Market Translation Opportunity
Translation of the potential inherent in Starbucks coffee shops from the performance of Italian espresso stands
Translation of interest and value of mini-cars in crowded cities where first used in European cities with narrow streets and limited parking space
Innovation Analogy
When a company from one industry segment borrows an innovative idea from a company in an entirely different segment
Where benchmarking a best business practice results in an innovation
Analogy Opens Up Opportunity
LL Bean’s functional and efficient logistics approach benchmarked from WalMart
Full-service insurance companies (USAA, Geico) emulate bank functions
Starbucks cafes diversify by selling music CDs like bookstores formerly did – the reverse is also true
Value Chain Opportunities
Identifying new needs and interdependencies leading to potential new forms of value for customers
Identifying new forms of value from suppliers and distributors
Finding unmet needs throughout the value chain
Opportunities in the Value Chain
FedEx acquisition of Kinko’s led to an integrated value chain and consolidated customer service
Multi-service banking by CitiBank and Wells Fargo combines customer process steps in the value chain
High-Growth Sector Opportunity
Where certain business sectors grow faster than GNP rate or regional growth
Where customer volume is greater than what would is apparent or expected from a customer segment
Opportunities in High-Growth
Dramatic expansion of the online education sector, and life-long learning through MOOCs
Increasing growth, diversification and complexity of health care sector
Expansion of bandwidth and wi-fi availability throughout the world
Takeaways
Marketplace advantage opportunities can be recognized through analysis of market data and trends in customer preferences
These opportunities can be leveraged through ongoing market research efforts
