Selecting the Right Strategy : How are user innovations linked to the product life cycle for mature industries

Abstract: Companies are dependent on continuously provide the market with new products to keep its market position and profitability level. The companies examined in this thesis are two bigger Swedish enterprises that have a long history in a mature business-to-business context providing industrial goods to the market. This work examines how users are involved in the different innovation and product development activities. The problem is to understand how business-to-business companies co-operate with stakeholder and users, when in the product life cycle that is done, and who are the ones doing the actual innovation. The methodological approach for the work was deductive, building a theory including innovation, strategy and user theories that was empirically tested and followed by an analysis and conclusion of the found evidence. Key findings: Most if not all innovations in mature market are routine ones. There is lack of strategic focus due to micromanagement that shifts focus rapidly. Innovations are often found in the beginning and in the end of the product life cycle. Mature markets tend to utilize a more closed innovation model as opposite to an open model. Users are not heavily involved in the actual innovation process. Stickiness and tacit knowledge is quite big in large corporation event though there is said to be a strategic focus on the customers. Implications: More involvement of users, especially lead users, will lead to more innovations. Utilising strategic buckets of different sizes for spreading the resources on different innovation types (routine/disruptive/discontinuous) to become successful