Marketing Innovation SS2021 Part 7 Innovation Tools

Marketing & Innovation
Part 2 Innovation
Chapter 7: Innovation Tools
Summer Semester 2021
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Lecturer: Harald Pflughaupt MBA

Berlin Professional School
Berlin School of Economics and Law
Structure of the Lecture
Chapter 1 Definitions, 4 Components, Value Text 1 Better Marketing for a better world
Introduction to Marketing Text 2 Principles of Marketing
Chapter 2 Orientations, Marketing Concept, Text 3 Marketing Renewable Energy

Marketing Orientations Plan, Relations to Strategy, Strategic Text 4 Strategic Marketing
Marketing Concept and Plan and Operational marketing Text 5 Visualizing Marketing
Chapter 3 Relations to Business Model, Target Group, Text 6 Green Marketing Mix
Marketing Mix Segmentation, Positioning, 4P, 7P, Details to Text 7 Marketing Mix for Renewable
Application on Renewable Energy Product, Price, Promotion, Place, Energy
Marketing Mix for Ren. Energy,
Chapter 4 CRM, Social Media, Big Data, E-Commerce, Text 8 Digital Marketing
Digital Marketing Online- and Mobile Marketing
Chapter 5a + b Definition, Kondratieff-cycles, innovation Video 1 „The Art of the Start“

Innovation Understand + Plan process, phases, Innovation checklist,
Open and Closed Innovation, roles, idea Video 2 Open Innovation Best Practices
Chapter
www.renac.de 6 generation, timing, communication, testing Video 3 Open Innovation at Lego
Innovation Develop + Implement Text 9 Open Innovation: Research,...
Design Thinking, 6Sigma/DMAIC, Video 4 + Text 10 Design Thinking

Chapter 7 Morphological box, Fishbone and Innovation at Apple
Innovation Tools (+ Add ons) Diagram, Pitch Presentation Video 5 Six Sigma
2
Tools and concepts for Innovation
Management
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3
Basic concept of an innovation process
Innovation impulse: Situation analysis /

Problem identification
Idea generation
Idea collection Idea generation
Innovation controlling
Systematic collection and

and storage
Screening
Rating
Decision
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Implementation
Market launch
4
Basics Innovation
++ High relevance present Idea generation

§ Search
+ Relevance field determination
present - Internal and external information sources
Idea collection Idea generation
- No relevance available
§ Publications ++ -
Information sources
External
§ Patents and property rights ++ +

§ Competitor analyses (benchmarks) ++ +
§ Suppliers ++ ++
§ Customers ++ +
§ Employees + ++
Internal
§ Corporate documents ++ -
(strategy / position papers)
§ Brainstorming - ++
Creativity
methods
§ Brainwriting - ++
§ Morphology + ++
§ Synectic + ++
§ Market research ++ +
Other methods
§ Expert workshops ++ ++
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§ Exploratory interviews ++ +
§ Suggestion scheme / idea competitions + +
§ Document research ++ -
5
Idea Collection – Open and Closed Innovation
§ Overview of widespread innovation models - further development of the

previously mentioned "closed" innovation models through open innovation
Closed Innovation Model open innovation model
Corporate
border
New Market
Projects Market Current market
Source: Chesbrough, H., 2006, p. 43 ff.

Research Development Research Development
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Idea collection and generation by creativity
Creativity is the creative

process of creating new
ideas.
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... and everybody can be creative!
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Creativity Techniques
§ Brainstorming
§ Brainwriting/635
§ Reversals
§ Mind-Mapping
§ Five Whys?
§ RWW Analysis
§ Fish Bone diagram
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Brainwriting (6-3-5)
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Reversals
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Example: Instead of Win 100 new customers -> lose 100 customers
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Morphological Analysis
According to its inventor Fritz Zwicky, this creativity

technique is intended to provide a "total solution" to
a given problem. The technology first breaks down
a problem or challenge into individual parts, which
are then combined and assembled again in a
variety of ways. The term morphological box is
somewhat misleading; a kind of morphological
tableau or table is used.
Creation of a variety of ideas, especially for product
improvements, updates and product reformulations,
by systematically breaking down complex issues
into delimitable individual elements (problem
parameters), varying the shape of the individual
elements and combining shape variations to create
new overall solutions.
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See also text: „Mobility and the Internet of People: A Morphological Analysis“ by Olga Levina, 2016
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Morphological Analysis
§ Example: Morphological Box for a Torch.
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Source: Burge, Hughes, Walsh
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Mind-Mapping
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Five Whys?
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Five Whys-Methode
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Five Whys-Methode
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Evaluation of ideas: RWW
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Fishbone / Ishikawa diagram as instrument
Inefficient
BVW
Lack of
innovation
Lack of culture No
time Too little Incentive
Employees system
Missing
Motivation
Missing
Too many Visions or
Projects Missing Missing
strategies Support of the Valuation
Management methods
Inefficient Authoritarian
Problem Leadership
solving Insufficient
Flow of ideas in
the
Company
No use Insufficient No
of creative Environmental implementation
techniques and of "idea places"
Situation analysis Too rigid
Hierarchy
Corporate
Lack of management does
promotion of not articulate Too many
internal innovation goals Sync and
Missing Idea potential corrections
Creativity of
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Too long
the Need Infoways
Employees new ideas will
not recognised Organizational
Defects
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Ishikawa or Fishbone-Diagramm
§ The Ishikawa diagram or cause and effect diagram is a method to collect

the potential causes for a problem. The Ishikawa analysis is used to
present all ideas on the topic in a clear graphical way within the team in a
structured brainstorming. The methodology helps to prepare a more in-
depth consideration of the root causes of the problem. Here, the individual
ideas on the causes and also the relationships between the individual
causes are presented.
§ The Ishikawa diagram is also known in the literature as the Cause & Effect
diagram or Fishbone diagram.
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B-School and D-School (Business and Design School)
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Source: Stanford University
20
Design Thinking for Innovation
Management
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Design Thinking as an innovation methodology
Origins of Design Thinking
Design and design theory

David Kelley (IDEO Design): What is required is a combination ...
... of art, architecture, theatre, technology, music, business, science, design etc.
... To increase effectiveness and efficiency in solving complex problems.
Important Persons: Nigel Cross (2007), Roger Martin (2009), Tim Brown (2009), Hasso
Plattner (2009).
Related Companies: McKinsey, Siemens, Telekom, SAP and many more.
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Mauroner (2017)
22
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§ Definition Design Thinking
Design thinking is an approach that focuses on people

to solve problems and uses a "design" mindset.
Tim Brown (British Industrial Designer & IDEO Chairman)
Design Thinking is a human-centered, iterative, team-based mindset that

leads to breakthrough innovations. With its fusion of creativity, shared
leadership and efficiency, Design Thinking can help overcome
yesterday's working models and transform traditional organizational
cultures.
Hasso-Plattner-Institut
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§ Design Thinking integrates business, technology and people
Empathy and knowledge

of human nature
3
Visualize concepts
Collect ideas
Prototype and
user evaluation
2
Strategic
1 Business
Design
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Overview
26
EXPERIENCE
Brands Innovation
BUSSINESS
EMOTIONAL profitable
INNOVATION
Marketing Connections PROCESS
Innovation
PEOPLE TECHNOLOGY
in demand Feasible
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FUNCTIONAL
Innovation
27
Compassion Show, don't Experiment Mindfulness Action- Co-operation

Only through
tell Turn ideas into Create time and
oriented Key elements are
empathy can you Showing instead of reality and learn space to pay There are more communication,
develop design telling to bring your from the reactions attention to your ways to problem solving
solutions. ideas to life. to your prototype. environment. communicate with support, sharing
customers than and diversity.
ever before.
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Design Innovation Process
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Source: Linda Naiman 2016
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Design Thinking Mindset
People
• Multidisciplinary team to enable ideas that go far
beyond disciplinary boundaries.
Multi-
disciplinary
• From individualistic thinking to we-culture/to co-creation.
teams • Collaborative teams act faster, use their collective
intelligence better, generate more sustainable work
processes and come up with amazing results.
Iterative process Variable space

Place
• Develop in a free and flexible
working environment
• Flexibly adaptable to the needs
of the respective project
• Tables and partition walls can be
moved on castors. Walls and
Process almost all other surfaces can be
• Six-stage iterative innovation process
www.renac.de used freely.
• Open error culture • Shelves full of colourful materials
• Thinking in impossibilities invite you to quickly illustrate
• User is fully at the centre ideas and bring them to life.
• Empathic approach
Source: https://hpi.de/school-of-design-thinking/design-thinking/mindset.html
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Design Thinking: Multidisziplinary Teams

§ Team performance comes before individual performance
§ Interdisciplinary, diverse teams
§ Break down silo thinking, build on the ideas of others
§ T-shaped‘ People
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Source: Mauroner (2017) & https://www.zionandzion.com/what-is-a-t-shaped-person/

31
Design Thinking: Variable Space

Creative ambience, variability and sources of inspiration.
§ Breaking patterns & creating opportunities for prototyping and visual
thinking.
§ Objects, artefacts, spaces have a 'memory'
§ Playful atmosphere, willingness to experiment
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Design Thinking as an innovation methodology Mauroner (2017) &

https://vimeo.com/245179209
32
Design Thinking: Iterative Process
UNDER- POINT OF TEST

OBSERVE IDEATE PROTOTYPE
STAND VIEW
UNDERSTAND OBSERVE POINT OF VIEW IDEATE PROTOTYPE TEST
Tasks are Target groups Create a Develop and Visibility of the The idea is
described and and their mental knowledge base. document ideas. idea: Design of a tested on the
problems models need to Evaluate, No evaluation of plastic image. target group and
defined.
www.renac.de be understood. interpret and the ideas. then perfected.
weight findings.
Which personas
exist? What are How can we What does the What insights do
What problems their customer What do we solve the prototype look the customers
exist? needs? focus on? problem? like? give us?
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empathize ideation
The basis of a human- Approach
centered design process to the design process,
with the focus
on the generation
define
of ideas.
Prototyping
Empathic insights Ideas and
are unpacked and transformed observations transferred
into from the head into
essential needs the physical world
and insights .
merged Testing
Opportunity for
Refinement
and improvement
of solutions.
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§ What is empathy mode?
§ Basis of the human-centered design process empathize

The basis of a human-
centered design process
Important ingredients are:
§ Observe: look at users, their life situations and their behaviour
§ Engage: Contacting and interviewing users

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§ Immersion: recreating the user experience
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Human needs: Examples for the empathy mode
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https://www.cnvc.org/Training/needs-inventory
36
§ What is the definition mode?
define
Empathic insights
are unpacked and transformed
into essential needs
and insights
merged
§ Unpacking empathy results and defining insights and needs from them
§ Wide view instead of concentrated field of vision
§ Goal: Develop an understanding of the user and the design space, and define a point-of-
view.
§ Point-of-view should be the guiding principle, focusing on the individual user and their
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needs.
§ Understand the challenge and the associated solution finding
37
§ What is the idea mode?
Idea generation
Approach
to the design process,
with the focus
on the generation
of ideas.
§ Focus on idea collection (during the design process)
§ Process is dissipative and encompasses a wide spectrum (rather than

concentrated/focused approach)
§ The goal is to explore the solution space and collect a large number of ideas in order to
get a diverse set of choices
§ prototypes can be developed on the basis of these ideas

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Apply creativity tools
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„Living“ culture in the process

Radical collaboration in
Learning by doing
teams
The user is in focus
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§ What is the prototype mode?
prototyping
Ideas and
§ Trying out ideas and concepts observations
transferred
from the head into
the physical world.
§ A prototype can take any shape: Post-it notes, a role play, a room, an object, a storyboard,
etc.
§ Keep prototypes general so that they can be developed in many directions
§ Prototypes are more successful when you can try them out and use them
§ Everything learned from this creates better empathy and produces successful solutions
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Prototyping – keep it simple
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Hyper Island
41
Different Tools for Prototyping are available!
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https://proto.io/
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§ What is the test mode?
Test
Opportunity for
§ Opportunity to improve and refine results Refinement
and improvement
of solutions.
§ An iterative process in which the results are related to the user.
§ Prototype as if you were right, and finally test as if you were wrong.
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§ New way of thinking and acting
Traditional thinking design thinking
Flawless planning Thorough testing & errors
avoid mistakes Fast errors
Thorough analysis Thorough testing

procedures
Presentations Small experiments
Customer proximity Strong customer loyalty
Periodic Throughout
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Think Make
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Design Thinking and Agility
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From idea selection to idea implementation
§ Combine Design Thinking, Lean Startup and Agile

Sprint planning
Ideato
Learn
Abstract
Product Sprint
backlog execution
Define
Try experiments
Pivot/perservere?
Sprint Shipable
ild
Concrete
Bu
review increment
Empathize M
ea
su
re
Customer PROBLEM Customer SOLUTION

DESIGN
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Systematic approach for process
optimization: DMAIC - Six Sigma
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Trigger for Innovation Management

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Process optimization model DMAIC - Six Sigma
§ What is Six Sigma?
Process
Key figure improvement
On the performance Operational and
of processes productive processes
Problem solving Customer

Systematic, data-oriented, orientation
(DMAIC method, DMADV) Not quality improvement
at any price
Quality Initiative
7x7 Toolbox
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Clearly measurable successes such
Process analysis, statistics, as increased sales and reduced
Problem solving strategy costs
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§ Six Sigma principles
Consistent orientation Processing the tasks

to process understanding with clear project definitions
Meet customer requirements completely Support with a variety of methodological

and profitably tools
Decisions are based on quantified

fundamentals Introduction of secure solutions
Detailed understanding
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of variation (σ) and Link to management

its causes and business strategy
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§ Triggers of Six Sigma projects in the context of process optimization

Strategic Plan Critical To Trees Key performance indicators
CT
CTQ CTT CTS
Quality costs Project transfer Satisfaction analyses
A B
Identification of
A certain
Technologies as a Interaction
www.renac.de technology is
value contribution to
Technology is required
fulfilling the Voice of
but never an end in itself! or indispensable
the Customer
Digital / ICT Technologies
50
§ The following methods are used in Six Sigma projects
DMAIC DFSS - DESIGN FOR SIX SIGMA
Improvement of existing processes Creation of new products and

DMAIC cycle: Define, Measure, processes DMADV cycle: Define,
Analyze, Improve, Control Measure, Analyze, Design, Verify
CHANGE MANAGEMENT PROJECT MANAGEMENT
Tools to initiate the necessary change Coordination and execution of all

processes, initiated projects, with the most modern
support
www.renac.de and control the necessary development tools results can be
change processes presented to the customers faster,
more individually and more rationally
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Six Sigma
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Pflughaupt SoSe 2021
§ Overview DMAIC cycle

§ KEY QUESTIONS within the DMAIC cycle for the approach to business process
optimization
§ Define:
§ What's the problem?
§ What are the goals of the project?
§ How is the project for the optimization of the

business process differentiated from others?
§ Measure:
§ What measurement criteria are used?
§ How is current process performance measured?

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§ What are the quality characteristics?
§ What (statistical) data needs to be collected to establish a demonstrable link between the
cause of the existing process performance and the effect on the process?
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§ Analyze:
§ What are the causes of the defective process?
§ What relationships between cause and effect do the generated data reveal?
§ Improve:
§ How can the problem be solved?
§ What are the possibilities for improvement?
§ Control:
§ How is the solution found in the Improve phase implemented in the company?
§ What measures are taken to ensure that process performance is sustained?
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Core target Core tasks Main results

§ The main objective of the § Building a common § Project charter is approved.
Define phase is to obtain an understanding of the project § Validated options
initial overview of the starting mission Opportunities for process
position for process optimization
optimization from the § Creation of a common § Adopted action plan
customer's point of view knowledge base about the § Accepted actual process
(market view) and from the process to be optimized description
internal point of view § Customer definition
(performance view). § Elaboration of customer (Who is it?)
requirements (Voice of the § Defined customer
Customer, VoC) requirements (VoC)
§ Core focus is on customer- § Quick wins are identified
perceivable performance and § Hinweis: Create a common § Rough assessment of the
not on what the customer burning Platform à Change project benefits is available.
doesn't see or isn't aware of Coalition (Kotter Change § Established stakeholder
orwww.renac.de
doesn't (knowingly) pay for Process!) management
or "For what is the cusotmer § Workable project team
willing to pay for?"
55
§ Voice of the Customer (VoC) are determined by CTQs
Process critical Customer critical

Consultation with production Through customer interviews,
engineers and staff involved; surveys or customer data to
production reports, determine what is important
measurements QUALITY- to the customer.
CRITICAL
(Critical to
Quality -
CTQ)
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Critical of specifications
Are there any legal regulations,
guidelines or standards to be observed?
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Define
Customer needs "bottom up"

v "why"
"top down"
Matrix 1 v "like"
Matrix 2
Matrix 3
Matrix 4
Needs /
Customer Wishes
Quantitative Performance Business Products / Services

(SMART) results Targets Process
Functions Specialist
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Quality Function Deployment also known as House Of Quality is used to translate customer needs
to products / DL (or from the customer to the MA specialist) and delivers results (prioritization &
evaluation) (Own representation)
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§ Six Sigma implementation aspects - 7x7 Toolbox
Quality Control Management

Design tools Statistics tools Project tools Slimming Tools Customer tools
Tools tools
Source: Management models, tools and methods with dictionaries are also available via
Test forms
Factorial (including
Robust design Network Standardization Kano model Decision tree
experiments measurement
plan)
Quality Function Project-
Capability Requirements Affinity
Deployment and team Swerve analysis Histogram
Analysis structuring diagram
(QFD) description
Regression Bottleneck Relational

TRIZ CTQ analysis House of Quality Pareto chart
analysis analysis diagram
Concept selection
analysis Multivariate Taguchi loss Cause-effect
Tree diagram Flowchart Tree diagram
according to analysis function diagram
www.valuebasedmanagment.net.
Pugh
Statistical test
Capability Supply Chain customers- Graphical
FMEA / VMEA procedures Matrix diagram
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(ANOVA, ANOM)
Fault tree Hypothesis Cost-benefit Setup time Customer Matrix Data
Relation diagram
analysis testing analysis analysis questionnaires Analysis
Gage R&R Network planning

Tolerance Design Control cards Red Tag Analysis Conjoint analysis Control cards
analysis technique
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§ Six Sigma implementation aspects - success factors
Selection of important,
Selection of suitable
Top Down cleanly defined Clear
Black Belts, Green
Alignment and focused Understanding of roles
Belts and Champions
projects
Communication
Consistency and Integrated
"Good" training of successes and
perseverance implementation
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§ Six Sigma implementation aspects - Change Management
Freedom of choice Time

Everyone must have the freedom to Real change takes time.
objectively evaluate Six Sigma and
the changes it brings.
Respect Credibility
Respect for one another is in many Change must be based on the
ways a catalyst for self-esteem and credibility of the people
a will to change. in the organization.
Feelings Uniform language

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Everyone wants to feel that they Words and phrases used must be
are taken seriously and that correctly understood by recipients
they participate in the and create intended ideas.
development of the company.
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Additional material
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Pitch-Deck (Essentials)
- What problems are you trying to solve?

- What is your solution?
- What is the market for your product?
- What is the size of that market?
- Who are your competitors?
- What makes your product unique?
- Who is on your team?
=Create a story!
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Elevator Pitch (car2go)
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Elevator Pitch (car2go)
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Testing your business idea
Test Card Learning Card

Test Name Deadline Insight Name Date of Learning
Assigned to Duration Person Responsible
step 1: hypothesis step 1: hypothesis
We believe that We believed that
Critical:
step 2: test step 2: observation
To verify that, we will We observed
Test Cost: Data Reliability: Data Reliability:
step 3: metric step 3: learnings and insights
And measure From that we learned that
Time Required: Action Required:
step 4: criteria step 4: decisions and actions

We are right if Therefore, we will
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Copyright Strategyzer AG The makers of Business Model Generation and Strategyzer Copyright Strategyzer AG The makers of Business Model Generation and Strategyzer
65
Testing your business idea
The Progress Board

1 2 3 4
Business Test: Backlog Test: Build Test: Measure Test: Learn Progress
Hypotheses The tests and experiments that
you intend to perform
The tests and experiments that are
being planned, designed, or built.
The tests and experiments that are
currently running and collecting data.
The tests and experiments that were
executed, collected data, and are
Your validation criteria step-by-step.
ready to be analyzed.
List the key assumptions that need to be
true for your idea to work. Prioritize the most
critical ones that could kill your business.
!
! Invalidated
Back to the drawing board
Iterate or Pivot your design
! ?
Unclear Results
Design another test, and
learn more before making a decision
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! Validated
Advance to the next step,
move on in your quest to make ideas reality
copyright: Strategyzer AG
The makers of Business Model Generation and Strategyzer strategyzer.com
66

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Marketing & Innovation

Lecturer: Harald Pflughaupt MBA

Chapter 2 Orientations, Marketing Concept, Text 3 Marketing Renewable Energy

Chapter 5a + b Definition, Kondratieff-cycles, innovation Video 1 „The Art of the Start“

Design Thinking, 6Sigma/DMAIC, Video 4 + Text 10 Design Thinking

Innovation impulse: Situation analysis /

Systematic collection and

++ High relevance present Idea generation

§ Patents and property rights ++ +

§ Overview of widespread innovation models - further development of the

Closed Innovation Model open innovation model

Projects Market Current market

Source: Chesbrough, H., 2006, p. 43 ff.

Creativity is the creative

... and everybody can be creative!

According to its inventor Fritz Zwicky, this creativity

§ Example: Morphological Box for a Torch.

Source: Burge, Hughes, Walsh

§ The Ishikawa diagram or cause and effect diagram is a method to collect

Source: Stanford University

Origins of Design Thinking

Design and design theory

§ Definition Design Thinking

Design thinking is an approach that focuses on people

Design Thinking is a human-centered, iterative, team-based mindset that

§ Design Thinking integrates business, technology and people

Empathy and knowledge

§ Design Thinking integrates business, technology and people

§ Design Thinking integrates business, technology and people

Compassion Show, don't Experiment Mindfulness Action- Co-operation

Source: Linda Naiman 2016

Design Thinking Mindset

Iterative process Variable space

Design Thinking: Multidisziplinary Teams

Design Thinking as an innovation methodology

Source: Mauroner (2017) & https://www.zionandzion.com/what-is-a-t-shaped-person/

Design Thinking: Variable Space

Design Thinking as an innovation methodology Mauroner (2017) &

Design Thinking: Iterative Process

UNDER- POINT OF TEST

UNDERSTAND OBSERVE POINT OF VIEW IDEATE PROTOTYPE TEST

§ What is empathy mode?

§ Basis of the human-centered design process empathize

Important ingredients are:

§ Observe: look at users, their life situations and their behaviour

§ Engage: Contacting and interviewing users

§ Immersion: recreating the user experience

Human needs: Examples for the empathy mode

§ What is the definition mode?

§ Wide view instead of concentrated field of vision

§ Understand the challenge and the associated solution finding

§ What is the idea mode?

§ Focus on idea collection (during the design process)

§ Process is dissipative and encompasses a wide spectrum (rather than

§ prototypes can be developed on the basis of these ideas

Apply creativity tools

„Living“ culture in the process

The user is in focus

§ What is the prototype mode?

§ Keep prototypes general so that they can be developed in many directions

Prototyping – keep it simple

Different Tools for Prototyping are available!

§ What is the test mode?

§ An iterative process in which the results are related to the user.