Sometimes Things Change

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Sometimes things changeRotman Gurupalooza 2
November 2006
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Invention vs. innovation On improving innovation
hit rates W Hotel NYC 2006
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Helsinki
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Helsinki municipal lighting project
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Helsinki municipal lighting project
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(No Transcript)
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Innovation from the fringe
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Four big ideas, in forty short minutes

• Sometimes things changeLeaders must sense when
  the business fundamentally shifts
• A fresh look at innovation fundamentalsTo
  innovate it helps to understand what it isand
  isnt
• The building blocks of effective innovation
  What to stop and what to start to innovate
  reliably
• Platforms Rule! In an interconnected world,
  platforms matter most

Hmm, lets rethink innovation
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A fresh look at innovation fundamentals


Rethinking what innovation is
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A new discipline is emerging

• A discipline of innovation is emerging today
  because
• Operational excellence is no longer enough every
  good business does it
• An increased rate of change has made an ability
  to change more valuable
• Methods and tools are emerging to vastly improve
  innovation success rates
• Designused effectivelyis now an imperative for
  competitiveness
• Companies need new insights to achieve growth
• Doblin expects it will take 2-4 more years to
  become a robust, mainstream practice, codified in
  better business schools

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Innovation efforts have a pathetic hit rate
The global innovation success average, across
all geographies and all industries
Source Doblin analysis
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Innovation effectiveness eyes on the prize
Firms can now reliably get a dramatic increase in
innovation success9 to 17 times the norm
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Effective innovation blows up many cherished
myths
Abandon the brainstorming!
Use discipline above creativity
Ditch your segmentation
Apply multiple diagnostics
Do financial analytics after prototypes
Think insidethe box

• Pursue platforms not products!

Share your patents!
Use several innovation types
It isnt playful,its brutal
Build concept prototypes
Study non-users!
Trash the stage gates
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10 types of innovation move beyond products to
win
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Using innovation types strategically
Core competence planning
Offering process
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Leading to a shift in value creation
Volume of innovation effortsLast 10 years
Hi
Lo
Source Doblin analysis
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Leading to a shift in value creation
Process.
Finance
Offering
Delivery
Channel
Brand
Customer experience
Core process
Enabling process
Business model
Networking
Product performance
Product system
Service
Cumulative value creationLast 10 years
Hi
Pareto revisited Less than 2 of projects
produce More than 90 of value
Lo
Source Doblin analysis
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Time to play Spot the innovation!
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Dell innovation assessment
Eight types
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Apple music
Seven types
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Spot the innovation!
Eight types
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The building blocks of effective innovation


Demystifying processes of innovation
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Use proven innovation protocols
A root cause of chronic innovation failure is the
ridiculous belief in low protocol methods
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So whats the deal with stage gate processes?
Stages
Conception
Preliminary investigation
Detailed investigation
Development
Testing and validation
Full production and launch
Source adapted from R. G. Cooper
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Innovation discipline model
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On innovation diagnostics
New techniques help identify which specific types
of innovation others have overlooked
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Doblin has pioneered innovation metrics

• Ten types of innovation was a major Doblin
  discovery
• Innovation Landscapes use these ten types for
  assessing industry innovation patterns
• Has already been used to analyze dozens of
  industries
• Scalable, fast, widely respected
• Published in HBR, September 1999
• Patent expected shortly

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Computers peripherals

• Assessment
• Complexsix types in evidence
• Costly and sophisticated
• Overly center-weighted

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Passenger airline travel

• Assessment
• Significant omissions performance experience
• Business model in play (LCC)

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Newspapers
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Participative networks
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Pharmaceuticals
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Key value chain areas--healthcare
Patient
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Platforms Rule!
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All the important stuff now cuts across companies
and markets
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(No Transcript)
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Modern bikes a system of platforms
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Most popular consumer platforms
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Most popular B2B platforms
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(No Transcript)
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Building experience breakthroughs Cirque du
Soleils competence
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Top innovations of all timean arguable list

• Weapons
• Mathematics and the number zero
• Money
• Printing
• Free markets and capital markets
• Domesticated animals and agriculture
• Property ownership
• Limited liability
• Participative democracy
• Anesthetics and surgery
• Vaccines and antibiotics
• Semiconductors
• The Internet
• Genetic sequencing

Note All of these are platforms They
transcend enterprises, industries, and political
borders.
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Innovation in times of changesome options
Simplicity

• Health

Enlightenment
Environment
Financialskills
Functional
Travel
Smart!
Mastery
Security
Design
Engaging
TalentLeverage
Politicalfreedom
Entertainment
Relationships
Personalexpression
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BusinessWeek commits to DESIGN
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And to INNOVATION
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Bedrock some base skills of designers

• Skilled designers and design teams
• Conceive and make stuff
• Make things, places messages distinctive
• Empathize with people in situations
• Imagine ideal usage experiences
• Sense and value what is new
• Simplify and clarify information
• Dramatically affect preference and value

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The composition of switched on design teams
Intellectual property
Strategists
Pattern recognition
Innovation management
Licensing
Culturalanthropologists
Program managers
Simulation
Library scientists
Design methodologists
Linguists
Supplier management
Brand architects
Statisticians
Deal flow
Information architects
Market analysts
Graphic designers
Experience architects
Industrial design
Usability analysts
Contract admin
Model makers
Interaction design
Market researchers
Design engineers
Purchasing
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A short summary of innovation effectiveness
You should now expect innovation hit rates
between 35 and 70
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Go get em! Access to these notes http//clientwe
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