Seppo Hänninen

Product innovation as micro-strategy

Diversification strategy discussions had relatively little focus on the unintentional diversification caused by a product innovation that does not match the existing business strategy of a company. The objective of the study is to deepen the understanding of product innovation-based diversification as a corporate micro-strategy. The new theory development is illustrated by a case study. A finding is that the micro-view offers a way to better understand the innovation-based diversification, which is an unavoidable consequence of any product innovation in a company. Another finding is that the diversification indicators operate beyond the limits of the coherent product innovation concept.

The 'perfect technology syndrome': sources, consequences and solutions

Recent research literature in product innovation has paid attention to the fact that technological discipline can lead to dominance by a knowledge base. Technology-intensive development is often partially and publicly supported and problems in finding a proper balance in technology development are in common interest. The objective of this study is to deepen the understanding of the dominance by technological knowledge base with reference to the sources, consequences and solutions of this overemphasis. Finnish publicly supported technology-intensive product innovation projects are studied. In the case studies, examples of the ‘perfect technology syndrome’ are identified and their sources are analysed. This syndrome describes the intention to achieve the ultimate level in the technology development. Solutions proposed to the unfavourable consequences included alliances with organisations having complementary resources, careful pretesting of products with key partners and developing the technological products to specific target groups.

A Multidimensional Product-Concept Model Enhancing Cross-Functional Knowledge Creation in the Product Innovation Process: The Case of the Suunto T6 Training Wrist Computer

This article presents a four-dimensional product-concept model enhancing cross-functional knowledge creation in product innovation: the dimensions presented in the new model are: technology, end-user, brand and business logic. The application of the model is described in the case study of the Suunto t6 training wrist computer. For the Suunto t6 development it was revealed that cross-functional knowledge creation had happened on an even larger scale than expected. Analysis of the results suggests that certain dimensions of the product concept can be especially indicative of cross-functional knowledge creation, such as concern with the end-users experience. Furthermore, the new product concept may provide an early warning of innovation-based diversification. Nicknames for the product concept under development, which requires the verbalisation of tacit subjective associations, can be used as indicators of cross-functional integration within the organization and as suitable indicators of tacit knowledge. Measurement of all relevant organizational capabilities is discussed.

Start-up, growth and internationalisation of entrepreneurial ventures by the use of service families

This article uses a single case study methodology that draws from the process-based life cycle models of (a) product development (b) product family development and (c) new venture development. It analyses e-Pay Asias efforts to pioneer an electronic prepaid airtime reload delivery system and subsequently develop it into a comprehensive payment service family. This research resulted in the identification of close linkages between new services development and service family extension, especially as they regard internationalisation and new venture development. Both new service development/extension and internationalisation contributed to the development and rapid growth of the case company, thereby confirming the Uppsala model of internationalisation.

Managing uncertainty in the marketing of new-technology products

In this paper, we work to systematise the kinds of uncertainty inherent in the marketing of a new-technology product. Our frame is based on the idea that uncertainty can be categorised along dimensions such as the uncertainty about the product, requiring to develop the product as an exchange good, and the uncertainty related to the environment, requiring to develop the product as a product-service complex and relationship. The paper identifies measures and strategies concerning why and how the enterprise and the client ought to manage their relationship, specifying distinctions between environments that are low and high in uncertainty.

The identification and research of product and service innovations: a microanalysis approach

The objective of the present study is to deepen the understanding of tangible (material) product concepts and intangible (immaterial) service concepts as well as the interconnections between them. The study utilises a microanalysis approach and a case study on a wrist computer for athletes is conducted. In the inductive phase of the present study, innovation matrixes are developed to help deconstruct the product concept and the service concept of the case example into their basic characteristics. In the deductive phase of the present study, the interconnections between the basic characteristics of the product concept and the service concept of the case example are analysed based on sources of value adding regarding technology, usage, service and processes.

Empirical assessment of technology dominance in technology programmes

Traditionally, technology programmes have aimed at deepening the technology knowledge base as much as possible. However, a successful commercialisation process cannot be limited to the utilisation of the technology knowledge base but other knowledge bases should be utilised in parallel. The objective of the study was to assess the relative strengths of various knowledge bases in a recently implemented technology programme that utilised a new broader approach of technology development. The main result of the study is that in the technology programme under investigation the strengths of the different knowledge bases did not correlate in a concerted, synergic manner.

Consumer Learning Roadmap: New Buzzword or Necessary Tool?

In order to cope with the increasing competition, high-tech firms need to continuously launch new products. However, adoption of the new products may require substantive cognitive efforts from consumers. Therefore, firms should be able to monitor and influence their consumer’s knowledge base. The aim of this chapter is to evaluate the usability of a consumer learning roadmap for high-tech marketing. A tentative framework is built based on the previous literature on innovation adoption and consumers’ knowledge development. The usability of this framework is then evaluated on the basis of case studies. The study indicates that in the case innovations, firms were actively triggering, monitoring and guiding consumer’s knowledge base in order to promote the adoption of successive product generations. This supports the idea that a consumer learning roadmap is a relevant and indeed successful concept for high-tech marketing. The fact that a consumer learning roadmap has so far been used only marginally means that the most prominent high-technology marketers are likely, little by little, to dominate their market.

Product Innovation as Micro-Strategy: The ‘Innovation-Based Diversification’ View

Diversification strategy discussion has focused relatively little on the unintentional diversification caused by a product innovation which does not match the existing business strategy of a company. The objective of the study is to deepen the understanding of product-innovation-based diversification as a corporate micro-strategy. The new theory development is illustrated with a case study of a consumer electronics product innovation. One of the key findings is that the micro-view offers a way to better understand innovation-based diversification, which is an unavoidable consequence of any product innovation in a company. A second finding is that the diversification indicators operate beyond the limits of the coherent product innovation concept.

Organising product conceptualisation from the 'four knowledge bases' perspective: how to reduce development time

Shortened product life cycle is causing pressure in the high-technology industry; it is, therefore, important to understand how product development can be shortened. The objective of the present study is to deepen the understanding of how high-technology industries should shorten their product conceptualisation. Product conceptualisation can be viewed as knowledge creation in which the basic elements are translator, knowledge broker, coaching member, and boundary objects. The four practical ways to categorise product conceptualisation are: external product conceptualisation, the single product concept designer, functional product conceptualisation and the knowledge-brokering product conceptualisation team. Each of these has its advantages and limitations.