Market Growth Matrix

(Market Technology Matrix)

New
Markets C D
New Uses Diversification
(Market Development) (Business Development)

Current
Markets
A B
Improved Products Line Extensions
(Market Penetration) (Product Development)

Present or New Technologies

Improved Technologies

Technological Newness
Cited by Kotler (Igor Ansoff – Harvard Business Review – Sept-Oct, 1957)
 Principles of Innovation
The systematic practice of
innovation means:
Crating new wealth-producing
resources
Utilizing existing resources for
creating new wealth
To create focused change in an
enterprise’s economic or social
potential
The 7-Step Analysis of Sources of
Innovation
Unexpected Occurrences
 E.g. Univac, Novocaine-dentists, YouTube
(Time Best 2006 Inventions article)

Incongruities
 e.g. minimills, shipbuilders, Napster-iPod

Process Needs
 Newspapers-Ad industry
 TIVO-like

Industry and Mkt Changes: DO CHANGE!

 HMOs, personal printers
 More on C. Christensen The Innovator’s Dilemma
 7-Step Analysis of Sources of
Innovation
• The 7-Step Analysis of
Sources of Innovation
• Demographic Changes
• Hispanic growth/youth,
• Graying of America
• Robotics in Japan
• Changes in Perception
• Environment/hybrid cars
• Increases in health versus
quest for immortality
• Campaigns of real beauty,
pro-age by Dove
• New Knowledge: watch for
protracted span between the
emergence of new
knowledge and its
distillation into usable
technology
• Modern banking J.P.Morgan,
computer, speech recognition
• Nano anything
• Mobile anything
• Molecular medicine
• Functional foods
 Lessons
• Innovation is both a disciplined and creative
process
• There are many sources of innovation
• 7-step model by Druker
• Market/Product Potential Ansoff
• Traditional market needs
• ‘Traditional’ new technologies to new applications
• Trial and error, a.k.a. Google’s style