1. © 2011 David C. Robertson. Not be used or reproduced without permission. Sales Channel Distribution Retailers Partners Product Offering Products Components Product Suite Collection of products & servcs that provide complete solution Marketing Branding Messaging Campaigns Web sites Catalogs Customer Interaction Cust Service Community (online or not) Events Core Capability Manuf Supply Chn Procurement Enabling Processes Legal/IP Research Product Developmt Incremental Improvement to current market in existing category New Offering in existing category With new value proposition Redefine Category “Never seen before” offering Business Model Revenue model Pricing model Sample innovation “piano” matrix

2. © 2011 David C. Robertson. Not be used or reproduced without permission. The innovation piano exercise Choose a product that has been successful in its market(s) Choose a product that’s as similar as possible to the one you’re developing Choose a product that’s been successful for at least two product cycles Complete the matrix as fully as possible What complementary innovations did the company or its partners offer? What new products, services, business models, pricing plans, etc. accompanied the product? Who offered them? Where does each belong on the matrix? What type of innovation is it and how revolutionary is it? Place each on the matrix Feel free to customize the matrix if you wish – use different categories if the ones provided don’t fit What effect did the complementary innovations have on the success of the product? Which complementary innovations (if any) helped make the product a success? How did they help?

3. © 2011 David C. Robertson. Not be used or reproduced without permission. Sales Channel Distribution Retailers Partners Product Offering Products Components Product Suite Collection of products & servcs that provide complete solution Marketing Branding Messaging Campaigns Web sites Catalogs Customer Interaction Cust Service Community (online or not) Events Core Capability Manuf Supply Chn Procurement Enabling Processes Legal/IP Research Product Developmt Incremental Improvement to current market in existing category New Offering in existing category With new value proposition Redefine Category “Never seen before” offering Business Model Revenue model Pricing model Example: Innovation matrix for the Apple iPod Exclusive contract for new Toshiba hard drive Outsourced iPod devel. iTunes Pay-per- song Fairplay DRM Accessory Partnerships iPod “Silhouette” ad campaign Apple Store Training “Genius” support