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Naphunsakorn (Ronnie) Waiyawuththanapoom, Ph.DBangkok University
Komes ChandavimolData Science Thailand
How data science connect to Innovation?
INNOVATION
Evolution of the sources of wealth:
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What is innovation?
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The importance ofInnovation
Succeeding at Innovation is tough• In fact, a recent study performed by
Harvard business school showed that 70% -90% of innovations fail to find the customer. This results in retiring innovations from the market in only 12 months after market launch.
•A similar failure rate is found among innovation startups, which also fail at a 90% rate, according to a study done by Stanford business school
Knol,
Google reader,
Google Buzz
Even very innovation driven companies, such as Google, Microsoft, Danone, Renault among others, fail, as well
maps Essentis
Vista VelSatis
So…..
Why do most innovation fail?
Too much focus on technology
•There’s often too much focus on technology and not enough on understanding consumers.
•Example:
–the Concorde, the first supersonic commercial airplane,
–the EPR, the latest generation nuclear plant,
–the “Rafale”, a first rate military airplane, and
–the “Minitel” a very innovative telecommunication systems which, in many ways, predated the Internet.
Innovation Failure
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What happen to these companies?
People think that being one step ahead is enough
•Product life-cycle is extremely short
•Being one step ahead isn’t enough.
•No more competitive industry.
•Competitive as usual
Top Reasons for Innovation Failures
• Too little voice of customers
• Underdeveloped capabilities
• Inefficient innovation and operational processes
• Poor failure management
• Time
71 innovation methodologies…. and many mores
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http://www.openinnovation.eu/04-02-
2016/71-innovation-methodologies/
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Amazon Kindle Fire HDX Mayday
McDonald surprise alarm
Foreover 21 SOS closet
KLM 24/7 Service Group
How come!
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DATA
KNOWLEDGE
INNOVATION
Co-creation!
Companies spent the
20th century managing
efficiencies.
In the 21st century, they
should spend more time
managing their
experiences.
The traditional company-
centric view
(1) The consumer is
outside the domain
of the value chain;
(2) the enterprise
controls where,
when, and how
value is added in
the value chain;
(3) value is created in a
series of activities
controlled by the
enterprise before
the point of
purchase;
(4) there is a single
point of exchange
where value is
extracted from the
customer for the
enterprise.
The consumer-centric
view
(1) The consumer is an
integral part of the
system for value
creation;
(2) The consumer can
influence where,
when, and how
value is generated;
(3) The consumer need
not respect industry
boundaries in the
search for value;
(4) The consumer can
compete with
companies for value
extraction;
(5) There are multiple
points of exchange
where the consumer
and the company
can co-create value.
consumer
heterogeneity
consumer heterogeneity
CHOICES!
BMW offers its Z3 roadster in "26 wheel designs and 123
consoles"
Customer experiences
Price and performance
Type of Co-creation
Mass customisation
•Mass customisation is at one end of the co-creation spectrum – each product is customised for the particular customer who is purchasing it.
Real-time self services
•Real-time self-service allows the customer to be involved right up to the point that they receive the product.
•A typical example of this level of co-creation would be a delivery firm, like FedEx, who allow their customers to select and change their delivery times right up to the point of delivery.
•Many airlines also allow real-time self-service for their customers, allowing you to choose and change your seat, meal and even your departure time right up to (and in the latter case sometimes after) departure.
Service re-design
•Co-creating service redesign lets customers work with the brand and change the experience without changing the product itself. It goes beyond the types of co-creation that focus only on the customer’s own product or experience but does not cause lasting change to the product itself.
New product co-creation• Brands and customers work together to develop and design new products. The
results can be very powerful and brands from Lego to Xerox have worked with customers in this way to create new products.
• In new-product co-creation, customers are working to improve the product overall, and to improve the offering the brand has to make to all customers. This works for three reasons:
–customers want to help and work with brands they know are listening to them
–customers want to solve problems
–all to often the solution or idea you need will be really simple to somebody else
Lesson learned
•Allow the user to customise the product they receive (mass customisation).
•Customise the experience right up to the point of delivery (real-time self-service).
•Innovate and co-create the way they experience the product (service redesign),
•work on new product development (new product co-creation).
Community product design
• The consumer have more of a driving influence and more responsibility. Rather then helping the brand to co-create the product they as a community are co-creating it for the brand.
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Conceptual model of the data driven innovation mechanism(Jetzek, Avital and Andersen 2013)
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Why innovate “inside the box”?
