Mapping Your Innovation

1
Mapping Your Innovation

• Scott D. Anthony
• Matt Eyring
• Lib Gibson

2
Strategy in Sports

• How you play the game depends on
• your team strengths
• Your opponents strengths and weaknesses
• Situation of game
• Same is true in innovation
• In sports, you play where the officials decide
• In business, you choose your area

3
Choosing where you play

• One way is to decide what you will NOT do
• Example newspaper looking into wireless delivery
  decided no games, no gambling and no personal
  ads
• What jobs cant our customers do?
• We will help them do it
• Intuit focus on small businesses and their
  problem of controlling cash other accounting
  software was too complicated

4
Choosing where you play

• Who is your worst customers?
• Dow Corning competes through a different channel
  for the commodity part of the silicone business
• Where are there barriers that constrain
  consumption?
• Democratize markets expand into major customer
  pools

5
Build your growth playbook

• Minute Clinic
• The target customer is looking for something
  different because existing solutions are too
  expensive, too complicated, or dont quite get
  the job done.
• The solution is good enough along traditional
  performance dimensions and superior along other
  dimensions that matter more to target customers

6
Innovation Game Plan

• Create specific opportunities
• Ethicon avoid high cost by having doctors do
  procedures that were done before only by
  specialists
• Focus on patterns rather than numbers
• Play the zeros game how many zeros?
• Estimate market size in general and not specific
  numbers (very difficult)

7
Problems in companies

• They are unwilling to kill projects that have
  fatal flaws
• They commit too much capital too soon
• They allow a project team to follow the wrong
  approach for too long
• They fail to adapt their strategies even in the
  face of information that suggests their current
  approach is wrong.

8
Options Plan and Execute

• Double down move forward rapidly.
• Continue exploring untested assumptions, so keep
  experimenting.
• Adjust the game plan another approach might be
  better
• Shelve There is no clear path forward, so move
  on to other projects

9
Role of senior management

• Block behavior that affects innovation
• Motorola with Razr limit features when all were
  adding more to phones
• Change the conversation
• Proctor and Gamble connect and develop (article
  covered later in course)

10
Disruptive Playbook

• The Back-Scratcher Scratch an Unscratched Itch
• Make it easier and simpler for people to get an
  important job done.
• Examples Federal Express, Intuits QuickBooks
• Current examples Procter Gambles Swiffer
  products, instant messaging technology.

11
Disruptive Playbook

• The Extreme Makeover Make an Ugly Business
  Attractive
• Find a way to prosper at the low end of
  established markets by giving people good enough
  solutions at low prices.
• Examples Nucors steel mini-mill,Toyota Corona.
• Current examples India-based Tatas sub-3,000
  automobile, exchange-traded mutual funds.

12
Disruptive Playbook

• The Bottleneck Buster Democratize a Limited
  Market
• Expand a market by removing a barrier to
  consumption.
• Examples Personal computers, balloon
  angioplasty, Sony Walkman, eBay.
• Current examples Blogs, home diagnostics

13
Innovation Mind Set

• Good enough can be great.
• Many companies unintentionally slow the
  innovation process by pushing for perfection.
• eBay CEO Meg Whitman Its better to put
  something out there and see the reaction and fix
  it on the fly

14
Innovation Mind Set

• Step, dont leap.
• Great leaps forward almost never work companies
  that spend many years and millions of dollars
  seeking to jump over existing companies do not
  succeed
• PGs Febreze brand initially as a removing
  odor and then as air freshener and now as
  freshener that alternates between two scents.

15
Innovation Mind Set

• The right kind of failure is success.
• Most companies consider failure to be highly
  undesirable.
• Managers need to recognize that learning whats
  wrong with an approach and adapting appropriately
  is a good thing, not a failure.
• The Mayo Clinic queasy eagle award to
  individuals who fail for the right reason.