ICB

Unit 3
Idea Generation
 Idea Generation
• New Knowledge
• Tapping the ideas of customers
• Learning from the lead users
• Empathetic design
• Invention factories and Skunk works
• Open market innovation
• The role of mental preparation
• How management can encourage idea generation
• Two idea generating techniques.
 Overview
• We have seen definition of Innovation and S-Curve concept

• In this module we will discuss different methods of

generating ideas, which lead to new successful products and
services in the market
•
• Innovation are result of purposeful & conscious efforts to
solve problems or to please customers

• New Knowledge, Tapping the ideas of customers, Learning

from the lead users, Empathetic design, Invention factories
and Skunk works, Open market innovation, The role of mental
preparation, How management can encourage idea
generation

• Two idea generating techniques.

 Innovation Process

IDEA Opportunity Commercializ

Development
generation Recognition ation

IDEA
Evaluation

Creativity –is result of Idea and

Opportunity recognition
 New Knowledge
• New Knowledge is basis for Innovations
• Time lag between development of New Knowledge and its
application in the market is generally large
• Computer : Product of new knowledge in binary mathematics,
Symbolic logic, programming concepts, electronic switch, etc.
Computer took nearly 50 years to get commercialized
• Satellite communication: Launching and maintaining
satellites – Knowledge of Calculus, Physics, electronics and
aeronautical sciences. Newton- Kepler- 100+ years time line
• Fiber optics technology : Developed in 1966 by Corning, to
market after 1970-80
• Impact in market will be huge
 Tapping the ideas of customers

• Customers are a evergreen source of ideas for new products and

features
• Identify weakness in the product ( Devise is great, but if it can fit
into suitcase, much better)- make a small size product
• Customers can lead to Unresolved problems, as experienced by
them ( Serving Pizzas take long time to be served during Lunch
break- Develop an oven to bake fast or keep half cooked Pizza for
faster delivery….)
• Use Market research as a tool to interact with customers regularly
and collect data
• Focus should be what Customers want. And Not How it is possible
(specifications)
• Opinion leaders, Focus groups to collect ideas from market
 Tyranny of Served markets

• Customers may prove to be hindrance in the process of

innovation or Idea generation: 1) due to failure of customers
failing to understand technological possibilities or
2) when they are afraid of becoming obsolete with new
Technology
• Tyranny of Served markets – Companies invest all energies in
serving existing customer base and there by losing future
technologies ( Ex: Tyre industry, IBM Main frames)
• Companies miss big wave by focusing on incremental
innovations to please existing profitable customers

•
 Learning from Lead Users

• Lead users – Customers or noncustomers whose needs are

ahead of market trends
• Their needs make them try new/innovative products before
companies think of such products
• They are not interested in commercializing their product for
some reasons
• MIT Prof. Eric studied Lead users as a source of new idea for
the first time
• Ex: Auto racing teams for special breaking needs for cars,
which exceed expectations of a normal car
Learning from Lead Users – A Four
way process
• Lay the foundation : Identify targeted markets and the type
and level of innovation desired by them
• Determine the trends : Talk to experts in the related field to
get trends in those connected areas
• Identify and learn from Lead users : Make a network of lead
users and get their ideas on innovation. Use them to come up
with a preliminary product idea and to assess market
potential
• Develop breakthrough : Conduct workshops for 2-3 days with
technical, marketing and lead users to convert preliminary
product idea to marketable product
 Empathetic Design

• Companies study the basic application of products by being

touch with the users to identify short comings of the product
and how they can be improved
• Ex: Harley-Davidson bike users and their modifications
• P&G – “Product Research Team” to study usage of products in
day-today life to find potential improvements
• Requirements of nondomestic market may be different from
that of domestic markets in terms of size, color and features
• Product Design- plays important role in meeting regional
requirements
 Empathetic Design
Empathetic design has FIVE steps as given by Dorothy Leonard and
Jeffrey Rayport:
1. Observe : Observe and note how product is used
2. Capture data : How people use, problems faced and how they
overcome problems. Use Visual techniques, video for recording
facts
3. Reflect and Analyze : Share findings with colleagues and analyze
the observations. Return to filed if more details are required
4. Brainstorm : Discuss in a team to convert observed problems or
issues to solutions
5. Develop solution prototypes : Develop small working type models
to try with users and get their reactions. Find out if they suggest
some alterations for prototype
 Invention factories and Skunk works
Organizations set up R&D teams at two levels :
• Organizational level : to look for technology
that can be used by different divisions
• Divisional level : To develop new technology
that can be immediately adopted by for
improving products at SBU level
• Bell Labs : invented transistor, laser and the
UNIX os. Now part of Lucent Technologies.
 Invention factories and Skunk works
• Skunkworks : is a focused project team in an
organization working to develop a specific
solution
• Ex: Johnson Controls Inc (JCI), a leading global
Auto parts producer from USA. Produced
CorteX – energy absorbent material for car
interiors. Also works on developing Vehicle
seats
 Open market innovation

• Inviting new product ideas from outside the

company
• Allow free trade of new ideas
• Pitney Bowes of US – challenge to deal with
Anthrax contaminated mails
• Invited ideas from public and developed Scanning
and Imaging Technology to track such Risky mail
items
• Licensing, Joint ventures, and strategic alliances
• Export and Import new ideas
 The role of mental preparation
• One’s mind should be ready to identify the
Opportunity and Idea
• Louis Pasteur – “Chance favors the prepared
mind”
• Immerse in the problem to get solution:
1. Look at all sides of the problem
2. Talk to people familiar with the problem
3. Play with the problem
4. Ignore the accepted wisdom and grow beyond it
 How management can encourage
idea generation
• Rewards : Monetary and non monetary
• Monetary – Promotion, pay jump etc
• Nonmonetary – freedom to attend conferences
and visit to lead users and major customers
• Climate for innovation :
• Encourage intrepreneurship
• Send signals that Company supports innovative
ideas
• Look for new suggestions and ideas
 How management can encourage
idea generation
• Hire innovative People
1. Experts in one or more fields
2. Enjoy doing innovative work
3. Usually individual contributors
4. Good problem solvers
5. Find new and different ways to seeing
things/problems
But they must have interest in Customers and in
meeting their needs
 How management can encourage
idea generation
• Encourage Cross-Pollination of Ideas :
– Arrange customer contact work shops
– Lectures by experts from other organizations –
Government, University
– Get People on Sabbatical for short duration
– Periodically move experts from Department to
other
– Send to Technical Conferences
– Arrange field visits or events to share and
understand Best practices (BP)
 Support for innovators
Companies should safeguard killing of new ideas
from others in the company
• A negative view of ideas that do not serve
existing customers : “tyranny of served markets”
syndrome. Current customers are part of the big
market. They also will jump to new product,
when proved.
• The new idea threatens the current business: If
not us now, some one else will swallow our
business
 Support for innovators
• Market potential is small relative to size of
existing market : ---S Curve growth
Ex: Computers : Initial market survey indicated a
demand for 10 Units from Defence and
academic institutions
Internet: Communication tool preferred by
Academic and Scientific institutions
 Two idea generating techniques.
• Brainstorming <To be Done >
 Two idea generating techniques.
• Catchball < To be done>
 Further Readings
• Skunkworks: https://hbr.org/2012/06/start-ups-skunkworks-and-your
• Tyranny in B2B: http://www.stratoserve.com/2012/05/innovation-
tyranny-of-the-buy-class-relationships-in-b2b-marketing-.html
• Intrapreneur : https://hbr.org/2018/06/the-myth-of-the-intrapreneur
• https://www2.deloitte.com/content/dam/Deloitte/de/Documents/techno
logy/Intrapreneurship_Whitepaper_English.pdf
• Forbes , Forbes, Time
• Intrapreneurship: https://ac.els-cdn.com/S2212567114008430/1-s2.0-
S2212567114008430-main.pdf?_tid=ffc39609-b948-42cd-9739-
ab5d2212cc7a&acdnat=1531064942_4136e92ea161af63fb24dae525f2d3
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