In the past, innovations were developed from the insights of a small

number of designers and engineers. Now, however, with greater technological

complexity and market segmentation, modern organizations are engaging as
many stakeholders as possible in the innovation process. This can result in
increased scanning capabilities and better information about market needs.
Engaging employees, suppliers, customers, and other lead users can reveal new
opportunities that otherwise might have gone undiscovered.

Technological complexity is significant in product engineering development, where

designers have to consider this aspect to create a functional and reliable product.
Technological complexity measures are important in order to support manufacturing
enterprises management in decisions concerning selection of new products to be
manufactured and their production. Once a technological complexity level is defined
for each product, it is possible to develop feasibility studies in order to check the
plant capability to produce it.

Market segmentati on (also referred to as customer segmentati on) is the

process of discovering groups of customers that have diff erent unmet
needs. An eff ecti ve market segmentati on process forms the foundati on
for a winning market strategy as it reveals how and why customers are
diff erent and pinpoints what unmet needs customers are looking to
sati sfy with new products and services. Using  Strategyn’s outcome-
based market segmentati on methodology, a company is able to identi fy
underserved and overserved customer segments, determine which needs
are unmet in each segment, and determine the degree to which they are
unmet.
New ideas from customers, strategic partners, and employees

1. Customers - Most organizations have a fixed idea of who their

customers are. But if you expand your definition of customer, you can also
expand your ability to generate winning ideas. Periodically expand your
definition of who your customers is, or could be. Instead of looking at only the
present, look also at the past (former customers) and the future (anyone you
haven’t done business with yet). Ask how you might meet those customers’
needs.

Example:
Philips Electronics came up with such products as a stethoscope

The medical products division of Holland-based Philips Electronics assumed its

customers were doctors in hospitals, since they were the ones making decisions
about medical supplies. But Philips managers looked more deeply at changes in the
health-care industry and saw that more services were being provided in
nontraditional environments, such as outpatient clinics, homes, and even on the
street for homeless people.
By asking themselves what these customers in non-hospital environments might
need, Philips came up with such products as a stethoscope with improved
acoustics to filter out voices, traffic, and other background noise, making it easier
for caregivers in chaotic settings to hear heart murmurs or breathing problems.

2. Strategic partners - share resources to help each other develop their

employees, and to assist each other in developing an edge in the
marketplace.

Example:

Nokia and Microsoft joint partnership agreement to build Windows phones.

Both companies share information on the technology needed to do the job,

and they help to train each others' employees to develop and sell the
technology. Both partners benefit from the new technology that advances
their position in the marketplace.

- which include not only the device, but the software, services, applications and
customer support that make a great experience

For example, if you are trying to reach more customers, but your strength is mainly
in technology, then perhaps a strategic partner in the marketing field is what you
need. Or if you already have an existing customer base, and lowering fulfillment
cost could help you cross sell, or break into different markets, then perhaps a
strategic supplier partnership may suit you.
3. Employees and Suppliers - Suppliers can be key partners in the idea-
creation process

The success of our business depends on our ability to collaborate with suppliers
that not only provide the highest quality products and services, but are
philosophically and strategically aligned with our commitment to our social and
environmental responsibilities. The success of our business depends on our ability
to collaborate with suppliers that not only provide the highest quality products
and services, but are philosophically and strategically aligned with our
commitment to our social and environmental responsibilities.

The chief purchaser for a Johnson & Johnson business unit used to visit suppliers
and try to solicit ideas by saying, “If you have any new ideas or technologies you
think we’d be interested in, be sure to let us know.” Result: zero new ideas.

Proprietary Materials means any tangible chemical, biological or physical

research materials that are furnished

These days, he brings his problems to his suppliers: “What I need to know,” he’d
say, “is whether you might have an adhesive that would work well on elderly skin,
sensitive skin, bruised skin, diseased skin, and five other kinds of skin that we’ve
identified?” This approach encourages suppliers to contribute to the company’s
idea-creation process. “Even one of our notoriously non-creative suppliers
developed two proprietary materials for the company in the last 12 months, say’s
the manager. “It’s unbelievable how excited some of our suppliers get when we
ask them to be creative on our behalf.” And the seemingly routine procurement
process added value to other departments in the organization, from R&D to
marketing.
Unarticulated needs of customers- Understanding unarticulated needs is
key to product development. As designers, our job is to predict what
the consumer's want or need before they even realize it. We pinpoint the
problems customers can't adequately solve and create and deliver compelling
solutions.

Example:

GE Advantium Microwave
Consider the microwave oven. Asked why they like it, most people would say it’s
because it heats food up faster than conventional ovens. Asked how they actually
use it, most people might say “to heat up my coffee” or “to pop popcorn.” What
they don’t say–their unarticulated desire–is that when they try to use their
microwave to make a “real meal,” such as a roast or a steak, the results are ugly,
gray, and unappetizing.

GE probed just such unarticulated needs and came up with Advantium, a speed
cooker for roasts, steaks, and other items. A white hot halogen bulb browns the
outside part of the meat while microwaves cook the inside. The result: home-
cooked meals that are fast and yet have the appearance of being conventionally
cooked. the Advantium microwave is able to cook your foods both
quickly and evenly.

Starbucks’ in-store coffee shops at Barnes & Nobles bookstores

- Starbucks Coffee Co. announced Tuesday it will team with Barnes & Noble Co.
to exclusively supply coffee for the national bookstore retailer.Starbucks
officials said the move was made 'to provide a consistent, quality cup of coffee
for readers to enjoy while perusing the latest best-sellers.'Cafe staff will receive
comprehensive 'coffee training' from Starbucks' representatives

In developing your selection criteria, the aim is to consider potential businesses

with a complementary product and/or service offering as well as their existing
customer base, industry verticals, experience and brand reputation in the market.