1. Innovation & the Market
Omescape
Innovation & the Market

2. Learning Outcomes
Understand the importance of linking innovation to the market
Consider innovations which attract you (part of the market) to a particular business
Understand and apply the two theoretical extremes in how businesses match their innovative products and services to the market

3. Creativity & Innovation
Is the generation of new idea
Innovation
Is the successful exploitation of ideas
Creativity
Market Opportunity
Innovation
Entrepreneurial Opportunity
The key thing is that for innovation and creativity to be viable their needs to be an opportunity to sell/market the innovation.
Creativity exists freely/everywhere, innovation requires the exploitation of this creativity, but for this to happen their needs to be a market opportunity.
It might be useful to discuss some creativity/inventions which were very good but failed because their was not a market i.e. things before their time or simply no market (for various reasons). e.g. Concord, The Apple Newton MessagePad, Sony MiniDisc, Microsoft Zune’s content subscription service, Seiko TV Watch, Peel P50.
It might also be useful to discuss with the group about innovations which at the moment only have limited markets, do the class think they will be successful e.g. Tesla, Google glasses, solar powered planes etc.

4. Innovating for the Marketplace
Creativity in business is only beneficial if it has a practical application
New product ideas need to meet the needs and profiles of their customers/clients
New technology and advances in knowledge have made more products and services possible
This makes it increasingly tempting to launch new innovations because it is possible not because there is necessarily a market for it
Often a need for balance between technical and corporate/business roles
Larges sums of money can be lost by big organizations by marketing creative ideas and innovations that have no market. However, small businesses and particularly new businesses need to make sure their innovations have a market.

5. Activity
Consider a small business (product or service) that you have regularly patronised, consider the below areas in relation to what brings you back to their business.
Features of the product of service
Benefits to you
The competitive edge
This activity is designed to make students think about innovative features and benefits that small businesses offer, which draws them back for repeat business, therefore there is a clear market/need. The activity is also designed to move student away from thinking of innovation only as technology and cutting edge. Innovation can happen not only in the product, but also the service/delivery, the positioning and paradigm (see the innovation diamond).
For this activity to be most effective it useful to move students away from focusing on location and a monopoly e.g. it is the only one.

6. Innovation & Approaches to the Market
There are two theoretical extremes to approaching the market:
Product Based or Market Based
Entrepreneurs tend to take an idea/innovation and then seek to market it
The market/customers do not always know what is available through innovation
The product based approach is focused on the offering and innovation that the business can provide. It can lead to an inflexible or even arrogant approach to the consumer. The more extreme product based approach is common in the music and film industry and other creative industries. For example some games and apps are more product focused.
The market based approach seeks to find out what the customer wants and is willing to pay for. It is focused on the needs of the customers not just want the business can provide. It is often slower and the market can move on during market research. It is not always ideally suited to a small/new business.
It is common in new/small businesses not to take a fully market based approach, but to focus on what the business can provide.

7. Innovation & Approaches to the Market 2
A successful approach to market is a combination of understanding the resources available and matching them to an idea for a new product/service, which is desired in the market
Matching Ideas to Resources
Idea
Product/Service
Resources
Individual Firm
Market Opportunity
Stokes & Wilson (2010)

8. Case Study: Omescape
Omescape has been a global leader in live escape games since 2012
The live games offer advanced game experiences, combining dazzling details with high-tech engineering
It has venues throughout China and franchises throughout the world, including the UK, US and Canada

9. Video
Embed/show video

10. Video Questions
What does Toby Chen mean by practical feasibly and return on investment feasiblity?
How have Omescape adjusted their offering (innovation) to fit international markets?
Why is this important for a business like Omescape?
How do Omescape approach developing their innovate products for the market
Can you think of any other innovative products/service offerings that need to be adjusted for different markets?
Omescape have adjusted their offering to fit different markets. The comparable private nature of the Chinese has meant that they cannot make up groups from previous unknown customers. All the product needs to be adjusted for the different markets so that the puzzle logic makes sense for different groups.
This type of tailoring is particularly important for Omescape as they are offering a gaming/leisure product so the consumer want to be able to enjoy themselves and not feel too frustrated.
Omescape approach developing their innovative products for the market through mixing their dream/fantasy ideas and considering what is realistic in terms of return on investment. They are not simply drawn into making their dream/fantasy ideas come true, but align these ideas against a feasible business opportunity. This mixes a both the ideas and resources of the firm to create variable innovation.

11. References
Stokes, D. and Wilson N. (2010) Small Business Management and Entrepreneurship, South-Western Cengage Learning: Andover.