1. INNOVATION MANAGEMENT CLASS INNOVATION MANAGEMENT ECONOMIC & MARKET ADOPTION Week 2 Class by Ir. D. Wim Prihanto, MM (AIM)

2. Learning Points 1.Which one would be survived ? Why ? The strongest The biggest The most adaptive Most People want to be Most Companies want to be Core of Innovation

3. Learning Points 2.Where should innovation lead ? Innovation should lead to economic growth such as revenue growth, profit growth, etc  innovation is engine of growth. Business Growth To be Pioneer Differentiation Utility Purposes Legendary and Legacy Competitive Platform

4. Learning Points 3.How is the sequence of innovation process ? was led by creative individuals then applied to company architecture and operating. Creative Applicable Operating Creative Individuals Creative Company Architecture Utility Purposes Legendary and Legacy Competitive Platform Innovation process was led by creative individuals then applied to company architecture and operating.

5. Learning Points 4.Is innovation an integrated management process or a single action ?. Single Action Integrated Management Process Ideas Innovation Innovation is an integrated management process not a single action.

6. Learning Points 5.What is difference between Ideas, Thinking of ideas and Implementation ideas to organization ? IDEAS THINKING OF IDEAS IMPLEMENTATION IDEAS Invention Creativity Innovation

7. EXTERNAL INPUTS: societal needs; competitors; supplier partnerships; distributors; customers; strategic alliances. EXTERNAL INPUTS: scientific and technological development; competitors; suppliers; customers; university departments. Organisation and business strategy Marketing EXTERNAL INPUTS: macro factors ROI costs; competition. Organisation’s knowledge base accumulates knowledge over time Research and technology Innovation management framework New products Source: Trott, 2005

8. Learning Points 6.Science is discovering a new one, then technology came from employing and manipulating science into concept, process and devices which make our life easier. 7.Innovation could be happen when all stimulated factors (external & internal) are interactive connected as integrated management systems 8.The pharmaceutical is more on technology push model but food industry is market pull model. Other industries could be mixture of the two models. 9.Marketing, research and manufacturing, and business planning are three main functions which more influential on common organization.

9. Innovative firm Factor conditions Institutional setting Suppliers and supporting industries Customers Financing R&D Educational and other societal effects Competition regulator Purchaser Information and decision centre, political stability Macroeconomic conditions Infrastructure Environment and safety regulator The role of the state in innovation

10. Learning Points 1.Government has a important role for creating an innovation growth climate (long term wise). 2.The other hand, business man & entrepreneur may only focus on high-return opportunities in the short term. 3.The right business environment is key to innovation, but the people is the master key of that. 4.First Revolution : Steam Engine, Second Revolution : Computers….then the Third Revolution is Welness 5.Market vision or the ability to look into the future and picture products and services that will be successful is a fundamental requirement for those firms wishing to engage in innovation.

11. Learning Points 1.Marketing insights have an importance role to facilitate innovation toward the market vision. 2.Lead users is being used by technology minded product development as they want to be perceived as pioneer and innovative people. 3.Company only has 2.5% of innovators and early adopters 13.5% for successful new products and after that critical “chasm” before convincing early majority for successful launching. 4.Knowing the psychographic of each categories is critical for innovation process.

12. Is market evolving? Challenge for Industry

13. Rationale Emotional 1977 – 1980 1 st Generation 1981 - 1985 2 nd Generation 1986 – 1996 3 rd Generation 1997 – 2004 4 rd Generation “Kijang Innova – Beautiful [R]evolution” (Sep 2004) [R]evolution in Style [R]evolution in Comfort [R]evolution in Performance [R]evolution in Safety [R]evolution in Variants & Colors Kijang Journey ….. Source : Courtesy of Dini E, 2006

14. Telephone ….. Basic telephone -Music (MP3) -Ring Tones -Waiting call music -3G -Internet, etc. Rationale Emotional

16. ‘Technology’ makes people becomes more ‘Emotional’ NOT ‘Rational’ Old Paradigm “High technology = More Rational”

17. Friendster.com Web site frinedster.com

26. J.Co “Donut Orchestra experience …”

29. Hanyawanita.com Web site …

30. “Emerging Metro-sexual” “Men becomes more emotional”

31. Examples … Perfume & Lotion for Men Spa & Treatment for Men L-Men Appearance oriented Chatting (“ngerumpi)

32. Male Grooming

34. So …It’s an Emotional World!

39. Next Assignment INNOVATION PROJECT Buat detail proposal innovation project, berisi : Nama Project Latar Belakang (Why) Konsep Ide (What) Concept testing Business Analysis Prototype development Test marketing Commercialization Investment Proposal diserahkan pada kuliah berikutnya

40. The NPD process as a series of linked activities Strategic planning Assembling knowledge R&D Market research Scientific and technological developments Generating business opportunities Society and market developments leading to needs Development of product prototypes Product concept generation Screening and evaluation is not a one-off activity – it is a continual process and takes place at every stage. Market introduction Market and technical testing

41. Next Week Assignment Case analysis “Zara” Cari informasi inovasi apa saja yang dilakukan Zara dan analisa mengapa inovasi ini berhasil dijalankan oleh Zara. Siapkan paper anda untuk presentasi tanggal 01 Maret 2010

42. THANK YOU END OF PRESENTATION