Carnegie Mellon Qatar © Robert T. Monroe Course Core Concepts in Innovation: Products, Services, and Experiences Robert Monroe Innovative Product Development January 13, 2011

Carnegie Mellon Qatar © Robert T. Monroe Course By The End Of Class Today, You Should: Be able to articulate the difference, and relationship between: –a product –a service –an experience Understand that a new business opportunity can take any of these three forms

Carnegie Mellon Qatar © Robert T. Monroe Course Products, Services, and Experiences For purposes of this course, a product is a good or service offered for sale by a company. –A product may be customized for different customers but it needs to be offered for sale in substantially the same form to multiple customers. –A product may be a service, as long as the service is offered as a standard package to multiple customers –Sometimes I will use the generic term offering to refer to refer to either a product or service It is also possible for a company to offer a product that is fundamentally an experience. As long as the experience is available in a standard package or form and repeatedly offered to multiple customers

Carnegie Mellon Qatar © Robert T. Monroe Course Are These Products, Services, or Experiences? A laptop computer A car An oil change at a car dealer Renting a bicycle to tour around a foreign city A book that describes best practices for organizational change management Hiring a consultant to advise your company on organizational change management. –The consultants are paid based on hours worked An adventure outfitter that leads treks to Mt. Everest A hotel room and dinner at the Ritz-Carleton hotel

Carnegie Mellon Qatar © Robert T. Monroe Course How Does Product, Service Or Experience Change: Developing your offering? Producing your offering? Delivering your offering to customers? Marketing and selling your offering? –Pricing your offering Does an offering need to be only one of product/service/experience? If not, should it be?

Carnegie Mellon Qatar © Robert T. Monroe Course Discussion Question What makes a product or service offering innovative?

Carnegie Mellon Qatar © Robert T. Monroe Course Innovation Beyond Products and Services Are product, service, and experience innovation the only types of innovation that businesses are interested in, or should be concerned with? –Manufacturing process innovation –Product lifecycle innovation (end of useful life recycling/repurposing) –Pricing innovation (lease or rent vs. buy) –Packaging innovation –Financing and business process innovations All of these are potentially good opportunities for businesses to innovate, but the focus of this course will be on innovations that lead to the introduction of innovative new products and services

Carnegie Mellon Qatar © Robert T. Monroe Course Exercise – Discuss, Evaluate, Be Prepared To Present: Each 2-3 person group selects a product or service from the list Describe the product or service. What is it or what does it do?Who are its primary customers and consumers? What was/were the fundamental innovation(s) that drove the success of the product? Were the fundamental innovations ‘high- tech’ or ‘low-tech’? What role did context (time, place, opportunity) play? Had similar previous efforts failed? Why? Why did this one work? Is the innovation obvious in retrospect? Has the innovativion provided or supported a dominant industry position for the inventor? Why or why not?

Carnegie Mellon Qatar © Robert T. Monroe Course Innovations To Evaluate Apple iPad Google keyword advertising Al Jazeeera News Network (Arabic and/or English) Wikipedia Toyota Prius Vélo Libre (Paris) Liquified Natural Gas (LNG) Anti-lock braking systems for cars Aramex shipping service Nintendo Wii Garmin handheld / automotive GPS systems

Carnegie Mellon Qatar © Robert T. Monroe Course Wrap Up

Carnegie Mellon Qatar © Robert T. Monroe Course For Tuesday We will look at the Cagan/Vogel process for creating and bringing an innovative new product to market We will introduce the concept of Social, Economic, and Technology (SET) factors and how their analysis can lead to the identification of Product Opportunity Gaps (POGs) Readings will be distributed this afternoon by and/or on Blackboard The wiki will be up and in-service by the end of the weekend.