External Viewpoints Reports (EVRs) - 2 The Sources of Innovation PathFinder - Hyundai team

1. External Viewpoints Reports (EVRs) - 2 The Sources of Innovation PathFinder - Hyundai team Wangbong Lee, Jihye Eom, Youngseok Oh, Ilseok Suh Sep. 27. 2005

2. EVRs – The Sources of Innovation • Contents • Brief Description • The Source of Innovation • Variations in the Source of Innovation • Lead Users • What’s interesting for the Studio project • Summary • Q&A

3. EVRs – The Sources of Innovation • Brief Description • Illustration of the sources of innovation • Users as Innovators • Manufacturers as Innovators • Suppliers as Innovators • Presents the studies in various areas • Scientific instruments, semiconductor and PCB process, • Engineering Plastics, Tractor Shovel-related, • Wire Termination Equipments, Industrial Gases, and Thermoplastics, etc • Lead Users • users whose present strong needs will become general in a market place months or years in the future

4. EVRs – The Sources of Innovation • The Source of Innovation • consider what innovation will take place where there is the greatest economic benefit to the innovator. • The sources of innovation vary greatly in various fields. • Users, manufacturers, suppliers • Boeing is a manufacturer of aircraft • But also, Boeing is a user of machine tools. • If we were considering innovations in aircraft, Boeing would be categorized as a manufacturer. • If we were considering innovations in metal-forming machinery, Boeing would be categorized as a user

5. EVRs – The Sources of Innovation • Variations in Source of Innovation • Users as Innovators • Scientific Instruments, Semiconductors, PCB process, Pultrusion process • Manufacturers as Innovators • Engineering Plastics, Tractor Shovel-related, and Plastic Additives • Suppliers as Innovators • Wire Termination Equipments, Industrial Gases, and Thermoplastics

6. EVRs – The Sources of Innovation • Lead Users • Marketing research constrained by user experience is the most significant difficulty in industrial market analysis. • This limitation makes it difficult to accurately determine needs for new products • Characteristics of Lead Users • Lead users will possess the particular real-world experience that manufacturers must analyze if they are to accurately understand the needs • Lead users attempt to solve their need. • Proposed method • First, Identify an important market or technical trend • Second, Identify lead users with respect to that trend • Third, Analyze lead user data • Last, Test lead user data on ordinary users

7. EVRs – The Sources of Innovation • What’s interesting for Studio project • Navigation system • What is the Source of innovation in this system? • Users as Innovators • Drivers, pedestrians • But, our project is concerning on data reorganization for efficient searching • What is the Source of innovation in this project? • Manufactures as Innovators • HMC, other manufactures • Lead Users Approach • we need to identify the important market or technical trend as soon as possible. • Probably, HMC is a lead user. • analyze lead user data,  is this elicitation of requirements ?

8. EVRs – The Sources of Innovation • Summary • The author says • The source of innovation vary greatly, users, manufactures, suppliers. • A series of studies showing that users, manufacturers and suppliers are the typical sources of innovation in various fields • Most often users are innovators from innovation data • Lead user • Marketing research constrained by user experience is the difficulty in industrial market analysis. • This limitation makes it difficult to accurately determine needs for new products • The author proposes the lead user methodology as a solution

9. EVRs – The Sources of Innovation Q & A