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Process 7: Implementing the Lead User Method for Breakthrough Innovation

As with other processes, a process owner, preferably a central department, should be assigned the ownership of the process, where it provides support and training for such departments that wish to implement the process. To implement the Lead User method, the following steps are involved.

Step 1: Project Planning.

1.       Form the team and plan the project.

2.       Through brainstorming sessions, select a need-related trend in the market to focus on.

3.       Develop strategies for data collection from target and analogous markets on need-related trends.

4.        Collect all the data available on the subject through focused competitive intelligence.

Step 2: Finding Lead Users.

1. Conduct interviews with industry leaders to identify lead users in the target and analo­gous markets, who have created solutions to deal with the need-related trends, each in his/her field of expertise.

1.      Work your way up "pyramids of experts"3 to locate lead users by getting referrals from experts in the field and identifying who has created solutions to address the needs they have.

2.      Get the widest exposure possible to the need-related trend in target and analogous mar­kets by going to the fieldwork of lead users.

Step 3: Concept Generation and Development.

1.       Generate preliminary new product concepts that are along the lines of the solutions developed by the lead users to address their needs.

2.       Conduct workshops in collaboration with lead users to examine the preliminary new product concepts and explore new ones.

3.       Choose the product concept(s) that has the widest applications to customers in the tar­get and analogous markets.

4.       Create a road map for development and launch of new products based on the identified platform.

5.       Align identified new product concepts with the business objectives and development/ growth plan.

Process 8: Technology Management Methods

The methods discussed under this process fall under the ambit of competitive intelligence. While Process 2 outlined the various competitive intelligence methods that can be used to support strate­gic planning, it is outlined under this process in relation to decision making at the operational level. It is noted that this process overlaps with other processes at the intellectual property management stage that purport to manage patents for competitive positioning. A number of methods emerged to mine patent data for insights to guide the innovation activity, as outlined next.

Step 1: Uncover Competition's Past Patenting Trends and Anticipate Future Moves.

1.       Draw a technology road map of the competition's patenting activity, using past patent­ing history as a guide.

2.       Use patent citation trees (an example is illustrated in Exhibit 12.8) to assess the compe­tition's activity around your patents.

3.       Use information from 1 and 2 above to create technology profiles of the competition's anticipated future moves; future scenario planning can be used here.

4.       Devise plans to respond to the competition's current and anticipated moves and reflect those plans in the innovation portfolio's strategic buckets.

Step 2: Assess Strengths and Weaknesses of Competition's Technological Position.

1.       Assess the scope of the claims of the competition's patents in the area of technology that you want to practice in. Keep in mind that a patent is only as good as its claims.

2.       Examine the file wrapper information to uncover areas where the competition has lim­ited the application of their own patent(s).

3.       Use information from 1 and 2 above to devise ways to get around the competition's blocking patents, in designing new products. Also refer to clearance procedures under the IPM stage.

4.       Consult the alliances portfolio to find potential partners whose strength may augment your ability to weaken the competition's position.

CompanyA Company B Company C

EXHIBIT 12.8    Sample Patent Citation Tree

Step 3: Decide on Projects in the Innovation Portfolio.

1.      Include incremental improvements projects designed to obtain improvement patents around the patents of the competition. This is particularly important to respond to simi­lar activity by the competition, as it enhances your bargaining power in cross-licensing transactions.

2.      Include incremental improvements projects to obtain improvement patents around your own patents to block the competition from doing the same.

3.      Kill innovation projects, seek a license, or enter into a joint venture with the competi­tion in technological areas where the competition is successful in obtaining a domi­neering patent, following an assessment of the strength of the patent. This is essential to avoid infringing the competition's patents or losing investments.

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