Innovation Equity : Assessing and Managing the Monetary Value of New Products and Services

From drones to wearable technology to Hyperloop pods that can potentially travel more than seven hundred miles per hour, we’re fascinated with new products and technologies that seem to come straight out of science fiction. But, innovations are not only fascinating, they’re polarizing, as, all too quickly, skepticism regarding their commercial viability starts to creep in. And while fortunes depend on people’s ability to properly assess their prospects for success, no one can really agree on how to do it, especially for truly radical new products and services. In __Innovation Equity,__ Elie Ofek, Eitan Muller, and Barak Libai analyze how a vast array of past innovations performed in the marketplace—from their launch to the moment they became everyday products to the phase where consumers moved on to the “next big thing.” They identify key patterns in how consumers adopt innovations and integrate these with marketing scholarship on how companies manage their customer base by attracting new customers, keeping current customers satisfied, and preventing customers from switching to competitors’ products and services. In doing so, the authors produce concrete models that powerfully predict how the marketplace will respond to innovations, providing a much more authoritative way to estimate their potential monetary value, as well as a framework for making it possible to achieve that value. From Drones To Wearable Technology To Hyperloop Pods That Can Potentially Travel More Than Seven Hundred Miles Per Hour, We’re Fascinated With New Products And Technologies That Seem To Come Straight Out Of Science Fiction. But, Innovations Are Not Only Fascinating, They’re Polarizing, As, All Too Quickly, Skepticism Regarding Their Commercial Viability Starts To Creep In. And While Fortunes Depend On People’s Ability To Properly Assess Their Prospects For Success, No One Can Really Agree On How To Do It, Especially For Truly Radical New Products And Services. In Innovation Equity, Elie Ofek, Eitan Muller, And Barak Libai Analyze How A Vast Array Of Past Innovations Performed In The Marketplace—from Their Launch To The Moment They Became Everyday Products To The Phase Where Consumers Moved On To The “next Big Thing.” They Identify Key Patterns In How Consumers Adopt Innovations And Integrate These With Marketing Scholarship On How Companies Manage Their Customer Base By Attracting New Customers, Keeping Current Customers Satisfied, And Preventing Customers From Switching To Competitors’ Products And Services. In Doing So, The Authors Produce Concrete Models That Powerfully Predict How The Marketplace Will Respond To Innovations, Providing A Much More Authoritative Way To Estimate Their Potential Monetary Value, As Well As A Framework For Making It Possible To Achieve That Value. Introduction -- The Basic Diffusion Pattern Of An Innovation -- The Whole Is Bigger Than The Sum Of Its (diffusion And Customer Lifetime Value) Parts -- Don't Just Stand There: Do Something! Growing Innovation Equity Through Marketing Actions -- Foreseeing Bumps And Potholes Along The Diffusion Road -- Jumpstarting Stalled Adoption: Getting The Mainstream To Take The Plunge -- Survival In The Presence Of A Rival: Valuing Innovations At The Brand Level -- Leaping Ahead To Valuing The Next Generation -- Innovation Equity Makes The World Go Round -- Making The Framework Work For You. Elie Ofek, Eitan Muller, And Barak Libai. Includes Bibliographical References And Index. This book bridges the gap between what academics know and what innovation stakeholders— from managers, to investors, to analysts, to consumers—need to know about how new products and services are expected to perform in the marketplace. The book develops a compelling framework that connects the rich academic knowledge on innovation diffusion with that on customer relationship management, thereby marrying our understanding of how consumers adopt innovations with how firms effectively acquire, serve, and retain customers. The result, aptly called innovation equity, is a lens through which to view the commercial potential of innovations. It is a powerful vehicle for placing a dollar value on new products and services that are about to be, or that have recently been, launched. The book further shows how the framework can be used to evaluate the implications of marketing actions, consumer heterogeneity, competition, successive technology generations, and globalization on innovation equity assessments. The exposition is replete with vivid examples from a wide array of domains (such as video games, wireless phone services, computers, tablets, satellite radio, electric vehicles, cloud-based software, pharmaceuticals, and more), which demonstrate how the topics covered apply to real-world situations. A set of hands-on tools for implementing the various topics is provided and, for the interested reader, a companion website features concrete templates that can be adapted to any context. The writing style is highly engaging and the core messages are conveyed using simple, easy-to-grasp language and terminology "From drones to wearable technology to Hyperloop pods that can potentially travel more than seven hundred miles per hour, we're fascinated with new products and technologies that seem to come straight out of science fiction. But, innovations are not only fascinating, they're polarizing, as, all too quickly, skepticism regarding their commercial viability starts to creep in. And while fortunes depend on people's ability to properly assess their prospects for success, no one can really agree on how to do it, especially for truly radical new products and services. In Innovation Equity, Elie Ofek, Eitan Muller, and Barak Libai analyze how a vast array of past innovations performed in the marketplace--from their launch to the moment they became everyday products to the phase where consumers moved on to the "next big thing." They identify key patterns in how consumers adopt innovations and integrate these with marketing scholarship on how companies manage their customer base by attracting new customers, keeping current customers satisfied, and preventing customers from switching to competitors' products and services. In doing so, the authors produce concrete models that powerfully predict how the marketplace will respond to innovations, providing a much more authoritative way to estimate their potential monetary value, as well as a framework for making it possible to achieve that value."--Provided by publisher From drones to wearable technology to Hyperloop pods that can potentially travel more than seven hundred miles per hour, we're fascinated with new products and technologies that seem to come straight out of science fiction. But, innovations are not only fascinating, they're polarizing, as, all too quickly, skepticism regarding their commercial viability starts to creep in. And while fortunes depend on people's ability to properly assess their prospects for success, no one can really agree on how to do it, especially for truly radical new products and services. In Innovation Equity, Elie Ofek, Eitan Muller, and Barak Libai analyze how a vast array of past innovations performed in the marketplace from their launch to the moment they became everyday products to the phase where consumers moved on to the "next big thing." They identify key patterns in how consumers adopt innovations and integrate these with marketing scholarship on how companies manage their customer base by attracting new customers, keeping current customers satisfied, and preventing customers from switching to competitors' products and services. In doing so, the authors produce concrete models that powerfully predict how the marketplace will respond to innovations, providing a much more authoritative way to estimate their potential monetary value, as well as a framework for making it possible to achieve that value The basic diffusion pattern of an innovation The whole is bigger than the sum of its (diffusion and customer lifetime value) parts Don't just stand there : do something! growing innovation equity through marketing actions Foreseeing bumps and potholes along the diffusion road Jumpstarting stalled adoption : getting the mainstream to take the plunge Survival in the presence of a rival : valuing innovations at the brand level Leaping ahead to valuing the next generation Innovation equity makes the world go 'round Making the framework "work" for you Appendix : Math and more.