Week 8 Flashcards
Kano model
Expresses features and their implementation against satisfaction
Basic needs (Kano model)
Must-haves, rarely excite people, people don’t express that they’re required
Dissatisfaction if not present
Performance needs (Kano model)
Expressed as “x per y” Generally expressed by people
Satisfaction increases are more is provided
Excitement needs (Kano model)
Seldom expressed as they’re new to the world and unexpected
Surprise and delight the customer
Which needs do customers express?
Customers tend to only express performance/linear needs, not basic/excitement needs
Delight from features over time
Over time, needs shift down from excitement to performance, then to basic needs
Innovator’s Dilemma
Listening to your customers can satisfy their “next generation” needs, yet if their suggestions are bad…
If you stay too close to customers, you may be outmaneuvered if disruptive innovation occurs
Sustaining innovation
Focuses on satisfying current needs by improving performance et al.
Flaws of traditional methods for identifying customer needs
Customers are usually unable to articulate complex issues, or answer direct questions with respect to Kano
Surveys
Ask the customer questions
Importance of achieving representative samples and adequate response rates
Disruptive innovation
Focus on meeting customer’s future needs and establishing new markets (long-term survival)
Cheaper, lower performance
Lower margins
Traditional Market Research
Questionnaires
Focus Groups
Focus groups
Group of people assembled to participate in a discussion about x
Cost effective and offer rich data
Time consuming to plan conduct and analyse carefully. Require expertise and not always generalisable
Ethnography
Observation of people using products and services in real situations
Real insight, extremely personal
Data isn’t always representative
Market analysis steps
Industry overview
Target market
Competition
Pricing and forecast
5 methods of pricing
Cost-plus pricing (cost + markup)
Competitive pricing
Price skimming (start high, reduce over time)
Penetration pricing (start low, increase over time)
Price bundling
Psychological pricing
When you look cheaper
Premium pricing
When you look more expensive
Comparison of customer insight methods from personal and accurate to more representative
Repertory grid, ethnography, interview, focus group, survey, questionnaire
Web Data
Use web data to observe patterns, target new customers, drive traffic and increase sales. Can find unmet needs
Method of analysing competition for market analysis
Strategy canvas (sentiment analysis, feature-by-feature comparison, market share)
Price elasticity definition
Effect of price on quantity
Elastic demand
Change in price leads to bigger percentage change in demand
Inelastic demand
Change in price leads to a smaller percentage change in demand
Method for pricing and forecasting
Using statista reports
Innovation definition
Innovation is “the development and implementation of new ideas” (Van de ven 1986) and “the successful expoloitation of new ideas” (Cox 2005)
Schumer and Pavitt’s innovation topology
New products New services New production methods/processes New ways of business organisation New markets New business models
Technological innovations
New or significantly modified technological products and processes, where technological novelty emerges, unlike improvements, from their performance characteristics
Factors which restrict innovation
Harsh business environments
Regulatory barriers
Difficult technology (reliability issues)
TRL
Technology readiness levels which assess the maturity level of a given technology
Levels 1 and 2 of the TRL
Observing principles and showing potential applications
Levels 3, 4 and 5 of the TRL
Demonstrating proof of concept and validating it
Levels 6 and 7 of the TRL
Demonstrating prototype and validating it
Levels 8 and 9 of the TRL
System completion and use in successful operations
Valley of death
Where most technology fails
When moving from research to innovation
Hard to show practicality, and until then, the private/public sector can’t use your innovation
TRA in the private sector
1,2,3 (Basic principles and proof of concept) Public sector / research organisations
4,5,6 (Prototype development before validation in a significant environment) Death valley
7,8,9 (Demonstration and validation before mass-market adoption) Private sector and industry
Corporate social responsibility synonyms
Business for society and environment
Corporate compassion
Social entrepreneurship
Single planet economy
CSR definition
Companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis
Alternative CSR definition
Responsibility of enterprises for their impacts on society
CSR key themes
Voluntary Practices and values Transparent Requires multi-stakeholder orientation Beyond simple philanthropy Sustainability Essentially contested construct
CSR policies
Derived from externalities
Consequences of production born by society
Externalities of an economic transaction
Impact on a party that is not directly involved in the transaction
Caroll’s pyramid of CSR 1991 (From top to bottom)
Philanthropic responsibilities/being good corporate citizen
Ethical responsibilities
Legal responsibilities
Economic responsibilities
Baden’s pyramid of CSR 2016 (Top to bottom)
Economic responsibilities
Legal compliance
Ethical responsibilities
Stakeholders
People who have a legitimate interest in the corporation
Corporations are not just managed in the interests of their stockholders alone
Any group or individual who can affect or is affected by the achievement of the organization’s objectives
Stakeholders examples
Providers of capital Suppliers General public Community Pressure groups Competitors Employees Customers
Ethical management/stakeholder management
First phase is stakeholder analysis (identify each stakeholder’s influence and importance)
Primary stakeholders
Have influence and importance
Secondary stakeholders
Have influence or importance
Influence
Extent to which a stakeholder is able to affect the organisation, as a measure of power
Importance
Extent to which a stakeholder’s problems, needs and interests are affected by the organisation’s activities
Funding sources vs technology readiness levels
Levels 1-3 = University research
Levels 4-6 = Collaborative R&D projects
Leve;s 7-9 = Company based
