Innovation Final terms/concepts Flashcards
(44 cards)
BEANS
Behavior enablers (tools and processes), artifacts (things you can see and touch), and nudges (tactic promoting change from indirect suggestion and reinforcement)
how to build a BEAN?
simple, fun, trackable
specify desired characteristics
identify blockers
avoid an agenda
come up with inventions
3 forms of experimentation
try new experiences, taking things apart, testing ideas
Delivery driven executives
experiences must have direct link to a learning outcome, focus on efficiently solving a problem they are addressed with
discovery driven executives
like to try new experiences even if they don’t have an obvious application
Market segmentation
demographic - age, gender, race
geographic - location, close to sea, mountains,
psychographic - motives and preferences
Behavioral - decisions and patterns
Firmographic - industry, company size, revenue
Needs based - specific needs and desires
Design Thinking 10 tools
1) visualization - create images, prototyping
2) journey mapping - customer experience (biggest mistake is to misjudge the consumers)
3) Value chain analysis - how organizations interact with chain partners
4) Mind mapping -
5) rapid chain development - 1. generate new ideas, 2 group ideas together, 3 elaborate on business design
6) Assumptions testing - test value (prices), executive test (create and deliver prices that work), scale test, defensibility (what stops others doing what you are)
7) Prototyping - saves money, narrows down ideas
8) custom co-creating - bring potential customers into the process, diverse group, interact with the product, time for discussion and feedback
9) learning launches - extension of co-creation process, creating prototypes, minimize costs of first launches
10) storytelling - bring together all ideas and information, better emphasize with customer
Why does design thinking work
superior solutions, lower cost and risk, employee by in
segmentation
group customer by similar needs and determines characteristics those grouped customers
targeting
Select a segment of people to focus on (determined by size and profitability)
Position
Identify the firm’s value proposition and start developing your plan of action
segmentation must be…
identifiable, large enough, easy ton access, stable (not changing), differentiable, and actionable
RFM Model
Recency, Frequency, and monetary
attributemulti- model
ask customers about preferences and directly related to their purchasing decision
conjoint analysis
force customers to make tradeoffs between products with different design attributes
Design Thinking defenition
human centered approach to innovation, evaluates needs and desires or users
Corporate entrepreneur
focused on building profit, attracts venture capitalists, measure performance on revenue and customer satisfaction
social entrepreneur
care about creating change and benefiting society, successes measured on their impact, attracts philanthropists, emphasis on creating social change
Disruptive innovation
a process where a product, service, or business model is created to be simpler, more affordable, and more accessible to a wider audience
Open innovation
a business strategy that involves using both internal and external sources to generate ideas and solutions for products and services
disruptive innovation is made possible by…
low end footholds - when incumbents pay less attention to less demanding customers
new market footholds - creating a market that does not exist, turning nonconsumers into consumers
pay attention to the underserved consumers
benefits of open innovation
reduced costs, don’t need to start from the beginning, construct value chinas, make research and development more sustainable
BOM
bill of materials (add up costs of materials to make product/service)
customer lifetime
how valuable a customer is to a company
