Industry Diagnostics

Type of record:
  • micromethod
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Ideal innovation phases for this method:
  1. Innovation Phase
  2. 1
  3. 2
  4. 3
  5. 4
  6. 5
  7. 6
  8. 7
  9. 8
  10. 9
  11. 10

Description

The Industry Diagnostics method uses Michael Porter's Five Forces Framework to better understand the industry and identify opportunities for innovation at an early stage.

Once you have identified the key aspects of the industry, you can see the current health of the industry. Wherever weaknesses have developed in an industry over time, there is always a great opportunity for new concepts to penetrate.

The five forces being analyzed here are:
- The threat of potential market entry by new competitors
- The threat of substitution by other products and services
- The power of customers and users of products
- The power of the suppliers of your own industry
- The intensity of competition between competitors

The extended version of the Five Forces from Porter are the Six Forces, which additionally include the complementors of an industry into the system.
  • Effective for radical innovations
  • Effective for disruptive innovations
  • Effective for highly complex challenges
  • Effective for medium complexity challenges
  • Effective for new business models
  • Effective for product innovations
  • Effective for service innovations
  • P3 Observing (of people - the environment - the product use)
  • P4 Synthesize (create leading questions - derive position)
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