Profitable Innovation
By Dr. Georg Tacke, David Vidal and Jan Haemer
5/5
()
About this ebook
The most urgent management challenge of our time is to combine innovation and marketing into one unified process. Even the best marketing can’t save a company that fails to innovate. On the other hand, even the most innovative ideas will flop if companies do not understand the value of their products and establish that value profitably. Combining these two functions gives you the best odds of escaping the oppressive price and competitive pressures that plague today’s markets around the globe. It gives you the best chances to generate the profit that continuously fuels further innovation and ensures long-term survival.
Dr. Georg Tacke
Dr. Georg Tacke is the Co-CEO of Simon-Kucher & Partners. He leads the global strategy and marketing consultancy together with Dr. Klaus Hilleke. Georg has more than 25 years of consulting experience in the service sector (telecommunications, transportation/logistics, travel and hospitality, B2B services, etc.) and the automotive industry. His areas of expertise include strategy, marketing, sales and pricing. He is well-known as one of the top pricing experts in these fields and supports numerous CEOs and management boards as a personal consultant and coach. Georg joined Simon-Kucher just three years after its foundation and became a partner in 1989. With the founders and the other partners, he has helped Simon-Kucher to grow from a small German consultancy into an international consulting firm with approx. 720 associates and offices in 22 countries. Georg holds a Master’s degree in business administration (Diplom-Kaufmann) and a PhD from the University of Bielefeld. He also studied and conducted research as a visiting scholar at the Stanford Business School. Georg is the (co-) author of books and numerous articles on strategic business issues, sales and pricing.
Related authors
Related to Profitable Innovation
Related ebooks
The 10x Growth Machine: How established companies create new waves of growth Rating: 0 out of 5 stars0 ratingsBuilding Insanely Great Products: Some Products Fail, Many Succeed… This is their Story Rating: 0 out of 5 stars0 ratingsInnovation by demand: An interdisciplinary approach to the study of demand and its role in innovation Rating: 0 out of 5 stars0 ratingsHow the new business models in the digital age have evolved Rating: 4 out of 5 stars4/5Growing Business Innovation: Developing, Promoting and Protecting IP Rating: 0 out of 5 stars0 ratingsTrend-Driven Innovation: Beat Accelerating Customer Expectations Rating: 5 out of 5 stars5/5The Design Thinking Mindset: How to Access the Power of Innovation Rating: 5 out of 5 stars5/5Innovation Alchemists: What Every CEO Should Know to Hire the Right Chief Innovation Officer Rating: 4 out of 5 stars4/5Disruptive Innovation Rating: 0 out of 5 stars0 ratingsDesign Thinking for Business: A Handbook for Design Thinking in Wicked Systems Rating: 4 out of 5 stars4/5RE:Think Innovation: How the World's Most Prolific Innovators Come Up with Great Ideas that Deliver Extraordinary Outcomes Rating: 0 out of 5 stars0 ratingsBusiness Model Innovation Strategy: Transformational Concepts and Tools for Entrepreneurial Leaders Rating: 5 out of 5 stars5/5Handbook of Business Model Innovation: Tips & Tools on How to Innovate Business Models Rating: 5 out of 5 stars5/5The Age of the Platform: How Amazon, Apple, Facebook, and Google Have Redefined Business Rating: 5 out of 5 stars5/5Startup Rating: 5 out of 5 stars5/5FLAT: How to Fuel Innovation, Speed, and Culture Without Managers Rating: 2 out of 5 stars2/5The Strategy Book: Create a Strategic Mindset and Future-Proof Your Business Rating: 0 out of 5 stars0 ratingsInnovation Strategy: Seven Keys to Creative Leadership and a Sustainable Business Model Rating: 0 out of 5 stars0 ratingsBusiness Model Shifts: Six Ways to Create New Value For Customers Rating: 5 out of 5 stars5/5Mapping Innovation (PB) Rating: 4 out of 5 stars4/5Plan B: How to Hatch a Second Plan That's Always Better Than Your First Rating: 3 out of 5 stars3/5Strategy Skills: Techniques to Sharpen the Mind of the Strategist Rating: 4 out of 5 stars4/5The Innovation Code: The Creative Power of Constructive Conflict Rating: 3 out of 5 stars3/5Innovator's Toolkit: 10 Practical Strategies to Help You Develop and Implement Innovation Rating: 5 out of 5 stars5/5Ten Types of Innovation: The Discipline of Building Breakthroughs Rating: 4 out of 5 stars4/5Branding Handbook Rating: 0 out of 5 stars0 ratingsOmnipreneurship: An Organized Approach to Living A Life of Meaning Rating: 4 out of 5 stars4/5Growth thinking: think, design, growth hack -- a design approaching to growth hacking Rating: 0 out of 5 stars0 ratings
Marketing For You
The Copywriter's Handbook: A Step-By-Step Guide To Writing Copy That Sells (4th Edition) Rating: 4 out of 5 stars4/5Affiliate Marketing For Dummies Rating: 0 out of 5 stars0 ratingsMastering ChatGPT: 21 Prompts Templates for Effortless Writing Rating: 5 out of 5 stars5/52022 Best Ways To Make Money Online Rating: 4 out of 5 stars4/5Win In Court Every Time Rating: 5 out of 5 stars5/5The Passive Income Cheat Sheet Rating: 4 out of 5 stars4/5The Passive Income Playbook Rating: 5 out of 5 stars5/5The YouTube Formula: How Anyone Can Unlock the Algorithm to Drive Views, Build an Audience, and Grow Revenue Rating: 4 out of 5 stars4/5Emotional Intelligence: Exploring the Most Powerful Intelligence Ever Discovered Rating: 5 out of 5 stars5/5Quiet Leadership: Six Steps to Transforming Performance at Work Rating: 4 out of 5 stars4/5The Freedom Shortcut: How Anyone Can Generate True Passive Income Online, Escape the 9-5, and Live Anywhere Rating: 5 out of 5 stars5/580/20 Sales and Marketing: The Definitive Guide to Working Less and Making More Rating: 4 out of 5 stars4/5Wanting: The Power of Mimetic Desire in Everyday Life Rating: 0 out of 5 stars0 ratingsThe Best Credit Repair Manual Ever Written Rating: 5 out of 5 stars5/5Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life Rating: 4 out of 5 stars4/5Six Figure Blogging Blueprint Rating: 5 out of 5 stars5/5The Psychology of Selling: Increase Your Sales Faster and Easier Than You Ever Thought Possible Rating: 4 out of 5 stars4/5How to Write Copy That Sells: The Step-By-Step System For More Sales, to More Customers, More Often Rating: 4 out of 5 stars4/5Influencer: Building Your Personal Brand in the Age of Social Media Rating: 4 out of 5 stars4/5INSPIRED: How to Create Tech Products Customers Love Rating: 5 out of 5 stars5/5Exactly What to Say: The Magic Words for Influence and Impact Rating: 4 out of 5 stars4/5Ogilvy on Advertising in the Digital Age Rating: 5 out of 5 stars5/5Marketing Made Simple: A Step-by-Step StoryBrand Guide for Any Business Rating: 5 out of 5 stars5/5Building a StoryBrand: Clarify Your Message So Customers Will Listen Rating: 4 out of 5 stars4/5Everybody Writes: Your Go-To Guide to Creating Ridiculously Good Content Rating: 4 out of 5 stars4/5Advertising Headlines That Make You Rich: Create Winning Ads, Web Pages, Sales Letters and More Rating: 4 out of 5 stars4/5The Catalyst: How to Change Anyone's Mind Rating: 4 out of 5 stars4/5Robert Cialdini's Influence: The Psychology of Persuasion Summary Rating: 4 out of 5 stars4/5
Reviews for Profitable Innovation
1 rating1 review
- Rating: 5 out of 5 stars5/5This book that explains the importance of innovation and marketing in a informative, clear and easy to read way.
Book preview
Profitable Innovation - Dr. Georg Tacke
Introduction
The most urgent management challenge of our time is to combine innovation and marketing into one unified process. Even the best marketing can’t save a company that fails to innovate. On the other hand, even the most innovative ideas will flop if companies do not understand the value of their products and establish that value profitably. Combining these two functions gives you the best odds of escaping the oppressive price and competitive pressures that plague today’s markets around the globe. It gives you the best chances to generate the profit that continuously fuels further innovation and ensures long-term survival.
Peter Drucker once declared that business has only two functions: innovation and marketing. The logic behind his statement is intuitively simple. In the ideal firm, the research and development teams create new products and services. Some will become breakthroughs, while others represent incremental yet valuable improvements. Marketing then enters the picture. The marketing teams entice customers to buy those products, generating enough revenue to make a profit. These profits fund the next innovations, and the cycle continues.
There is one problem with that ideal view. It isn’t working.
The reality is that most new products flop. The respondents in our Global Pricing Study 2014 revealed that 72% of the new products they have launched within the last five years have failed to achieve their profit targets. Even worse, one-fourth of the companies in the survey said that not one single new product or service met its profit targets.
Many of the flops make headlines. Think Segway. Think Apple Newton or New Coke. But the serious damage lies behind the headlines. It occurs in the financial statements these companies release months and sometimes years later. It occurs in the minds of millions of frustrated employees who walk the hallways and work in the labs at thousands of companies who poured their energies into a new idea, only to see most potential customers ignore it or reject it.
Does the solution lie with innovation, perhaps by improving the quality of the products or the manufacturing process? Or is the solution on the marketing side, which needs to do a better job of defining and communicating the innovation’s value? After all, the best marketing cannot save a poor product, and a great product may struggle to overcome poor marketing.
What if you could double your chances for a successful product launch?
That might sound too good to be true. One additional finding from the Global Pricing Study 2014 shows that it isn’t. That finding leads us to suspect that the problem with successful innovation — and therefore its solution — may lie with a widespread misconception. Many companies act as if they believe that innovation and marketing are separate and sequential processes. We feel that belief is mistaken.
If you want to launch a new product successfully — and avoid frustrating flop after flop — your chances of success double when you treat innovation and marketing not just as parallel processes, but as interconnected processes, each supporting the other right from the start of new product development.
This insight matters. The need for new products, and the pressure on them to succeed, has never been greater in today’s precarious market environment. Our Global Pricing Study, which included detailed responses from 1,600 respondents in 40 countries and across all major industries, revealed four key insights[1]:
Market conditions are oppressive and are forcing companies to seek new profit opportunities
Innovation is the only way to escape these pressures
Most new products fail to meet profit targets, putting companies’ profits and