{"id":67834,"date":"2022-04-12T16:47:49","date_gmt":"2022-04-12T14:47:49","guid":{"rendered":"https:\/\/visionarymarketing.com\/?post_type=glossary&p=67834"},"modified":"2023-05-26T07:58:15","modified_gmt":"2023-05-26T05:58:15","slug":"b2b-innovation","status":"publish","type":"glossary","link":"https:\/\/visionarymarketing.com\/en\/glossary\/b2b-innovation\/","title":{"rendered":"Innovation in B2B"},"content":{"rendered":"

There are many definitions for B2B innovation. Some definitions can be aimed at better understanding buyer behaviour (<\/i>read our definition of B2B buyer behaviour<\/a>), value creation<\/i>, the design of new business models, the\u00a0<\/i>commercialisation<\/i><\/span><\/span>\u00a0of new products, or the ability of a large company to adapt to its\u00a0<\/i>environment,<\/i><\/span><\/span>\u00a0etc.<\/i><\/p>\n

B2B Innovation<\/span><\/span>: Definition, Tools, Methods, and Limitations<\/span><\/h1>\n
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B2B innovation can be defined theoretically. Nonetheless, innovating in B2B markets is always, as Paul Millier would have it, marketing the unknown.<\/figcaption><\/figure>\n

Despite our desire for ready-made recipes, innovation is, by definition, a “foray into the unknown.” Therefore, trying to find a methodology for innovation is an oxymoron.
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Paul Millier<\/strong> declared,\u00a0“The truth lies somewhere between methodology and creativity. The definition of innovation in B2B<\/span> is also a matter of judgment, one could say that innovation is in the eyes of the beholder.”<\/p>\n

In line with a company’s strategy, innovation management consists of implementing resources (financial, human, etc.), processes (project management, research planning, etc.), and audits (monitoring, marketing studies, quality, FMEA, TRIZ, feedback, etc.). By implementing these, it is possible to channel the energies of inventors, engineers, and company staff to build and develop an array of skills.<\/p>\n

The Limitations of Theoretical Approaches to\u00a0B2B Innovation<\/h2>\n

There are many limitations to innovative approaches in B2B. In his book, “The Myths of Innovation,” Scott Berkun\u00a0debunks several preconceived notions and myths, including:<\/p>\n

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  1. \n
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    1. The myth of the epiphany<\/li>\n
    2. Innovation is a repeatable historical process<\/li>\n
    3. Innovation is a method<\/li>\n
    4. People love new ideas<\/li>\n
    5. The maverick innovator<\/li>\n
    6. Ideas are hard to come by<\/li>\n
    7. Your boss knows more about innovation than you do<\/li>\n
    8. The best idea wins<\/li>\n
    9. The problems and solutions<\/li>\n
    10. Innovation is always good<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n

      We invite you to discover these preconceived myths in the article “10 innovation myths torn apart by Scott Berkun.”<\/a><\/span><\/p>\n

      In his book \u00ab\u00a0Crossing the Chasm, \u00bb Geoffrey Moore explains how to bridge the gap between the initial invention and the success of product innovation.<\/p>\n

      He starts from the following observation: when an ‘innovative’ technological product is offered to the market, initially, it may be very successful, and then, once massive investments have been made to support its commercial development, it fails.<\/p>\n

      \"innovation<\/a>
      Geoffrey Moore’s theory humorously reviewed by Tom Fishburne<\/figcaption><\/figure>\n
      \"definition
      \u00a9 “Crossing the Chasm”, by Geoffrey Moore<\/figcaption><\/figure>\n

      Geoffrey Moore points out in his book that the technology adoption cycle is made of several stages and the most complicated step is crossing the gap between technology enthusiasts\/visionaries (in other words, “early adopters”) and pragmatists. These buyers make up a large part of the market. They will be followed by conservatives, who are even more difficult to convince.<\/p>\n

      Trends and Innovations in B2B Innovation<\/h3>\n

      As Paul Millier reminds us, there are two approaches to innovation: one is the offensive approach and the other is the defensive approach. Offensive companies are often referred to as “leaders,” and those who engage in more defensive behaviour are called “followers.”<\/p>\n

      Finally, a third strategy is segmentation. It consists in very finely segmenting the market to serve niches that competitors have not identified.<\/span><\/p>\n

      “There is no silver bullet guaranteeing success in innovation. Therefore, everyone can be successful if they take the appropriate steps. Trailblazers have an advantage over others because they learn faster from their own experiences than observers.” Beware, however, because as Paul Millier notes, you still have to choose the right experience curve to avoid fighting the wrong battle.<\/p>\n

      Tools and Methods<\/h3>\n

      There are multiple methods used by B2B innovators. The three main ones are used in start-ups but also, increasingly, in large businesses:<\/p>\n

      Design Thinking<\/h4>\n

      This method places people and their expectations at the heart of the innovation process. It is based on empathy<\/strong>, that is the ability to put oneself in other people’s shoes to understand their needs.<\/p>\n

      Unlike traditional linear projects, the logic is incremental<\/strong> and follows a cycle of three main stages: inspiration, ideation, and implementation. The testing phases are ubiquitous and not necessarily focused on implementation.<\/p>\n

      \"process\"
      The Design Thinking innovation process (c) Wikimedia Deutschland e. V. \/ CC BY-SA<\/figcaption><\/figure>\n

      The Business Model Canvas<\/h4>\n

      Alexander Osterwalder <\/strong>and Yves Pigneur\u00a0<\/strong>invented the Business Canvas Model. As its name suggests, it is a canvas composed of 9 blocks relating to the four major dimensions of the company: customers, offer, infrastructure and financial capacity.<\/p>\n

      In the following video, Alexander Osterwalder explains that the more you learn from your customers and prospects, by asking them questions, the more you hedge the risk associated with innovation:<\/p>\n