The Innovator's DNA: Mastering the Five Skills of...

The Innovator's DNA: Mastering the Five Skills of Disruptive Innovators

Featuring Jeff Dyer, Professor of Strategy at Brigham Young University and Co-author and Founder of The Innovator’s DNA

SEPTEMBER 11, 2014

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SEPTEMBER 11, 2014

Today’s Speaker

Jeff Dyer, Professor of Strategy at Brigham Young University and Co-author and Founder of The Innovator’s DNA

The Innovator's DNA: Mastering the Five Skills of Disruptive Innovators

@HBRExchange | #HBRwebinar

SEPTEMBER 11, 2014

Jeff Dyer, Professor of Strategy at Brigham Young University and Co-author and Founder of The Innovator’s DNA

The Innovator's DNA: Mastering the Five Skills of Disruptive Innovators

SEPTEMBER 11, 2014

Today’s Speaker

TheInnovator’sDNA

JEFF DYERBYU and Wharton

HAL GREGERSENINSEAD

CLAYTON M. CHRISTENSENHarvard Business School

© Copyright 2013 Innovator’s DNA LLC 8

What is innovation?

© Copyright 2013 Innovator’s DNA LLC 9

What is innovation?

Novel and Useful Idea

© Copyright 2013 Innovator’s DNA LLC 10

What is innovation?

Novel and Useful Idea

Successfully Implemented+

© Copyright 2013 Innovator’s DNA LLC 11

What is innovation?

Novel and Useful Idea

Successfully Implemented+ =

innovation

© Copyright 2013 Innovator’s DNA LLC 12

What is innovation?

NewPRODUCT

Novel and Useful Idea

Successfully Implemented+ =

innovation

© Copyright 2013 Innovator’s DNA LLC 13

What is innovation?

NewPRODUCT

NewSERVICE

Novel and Useful Idea

Successfully Implemented+ =

innovation

© Copyright 2013 Innovator’s DNA LLC 14

What is innovation?

NewPRODUCT

NewSERVICE

NewPROCESS

Novel and Useful Idea

Successfully Implemented+ =

innovation

© Copyright 2013 Innovator’s DNA LLC 15

What is innovation?

NewPRODUCT

NewSERVICE

NewPROCESS

NewEXPERIENCE

Novel and Useful Idea

Successfully Implemented+ =

innovation

© Copyright 2013 Innovator’s DNA LLC 16

What is innovation?

NewPRODUCT

NewSERVICE

NewPROCESS

NewEXPERIENCE

NewCHANNEL

Novel and Useful Idea

Successfully Implemented+ =

innovation

© Copyright 2013 Innovator’s DNA LLC 17

What is innovation?

NewPRODUCT

NewSERVICE

NewPROCESS

NewEXPERIENCE

NewCHANNEL

NewMARKETING

Novel and Useful Idea

Successfully Implemented+ =

innovation

© Copyright 2013 Innovator’s DNA LLC 18

What is innovation?

NewPRODUCT

NewSERVICE

NewPROCESS

NewEXPERIENCE

NewCHANNEL

NewMARKETING

New PROFIT FORMULA

Novel and Useful Idea

Successfully Implemented+ =

innovation

19

A GOOD MANAGER HIRES PEOPLE WHO ARE SMARTER THAN HE IS.

The Innovation Challenge 

20

A GOOD MANAGER HIRES PEOPLE WHO ARE SMARTER THAN HE IS.

SO…YOUR BOSS IS DUMBER THAN YOU?

The Innovation Challenge 

21

A GOOD MANAGER HIRES PEOPLE WHO ARE SMARTER THAN HE IS.

SO…YOUR BOSS IS DUMBER THAN YOU?

AND YOUR BOSS’S BOSS IS DUMBER YET?

The Innovation Challenge 

22

A GOOD MANAGER HIRES PEOPLE WHO ARE SMARTER THAN HE IS.

SO…YOUR BOSS IS DUMBER THAN YOU?

AND YOUR BOSS’S BOSS IS DUMBER YET?

ACCORDING TO YOUR THEORY, OUR CEO IS THE DUMBEST PERSON IN THE COMPANY.

The Innovation Challenge 

23

A GOOD MANAGER HIRES PEOPLE WHO ARE SMARTER THAN HE IS.

SO…YOUR BOSS IS DUMBER THAN YOU?

AND YOUR BOSS’S BOSS IS DUMBER YET?

ACCORDING TO YOUR THEORY, OUR CEO IS THE DUMBEST PERSON IN THE COMPANY.

UNLESS ALL OF YOU ARE BAD MANAGERS.

The Innovation Challenge 

24

A GOOD MANAGER HIRES PEOPLE WHO ARE SMARTER THAN HE IS.

SO…YOUR BOSS IS DUMBER THAN YOU?

AND YOUR BOSS’S BOSS IS DUMBER YET?

ACCORDING TO YOUR THEORY, OUR CEO IS THE DUMBEST PERSON IN THE COMPANY.

UNLESS ALL OF YOU ARE BAD MANAGERS.

TRULY WE ARE DOOMER EITHER WAY.

The Innovation Challenge 

25

A GOOD MANAGER HIRES PEOPLE WHO ARE SMARTER THAN HE IS.

SO…YOUR BOSS IS DUMBER THAN YOU?

AND YOUR BOSS’S BOSS IS DUMBER YET?

ACCORDING TO YOUR THEORY, OUR CEO IS THE DUMBEST PERSON IN THE COMPANY.

UNLESS ALL OF YOU ARE BAD MANAGERS.

TRULY WE ARE DOOMER EITHER WAY.

THIS CONCLUDES THE MOTIVATIONAL PART OF OUR MEETING.

The Innovation Challenge 

26

A GOOD MANAGER HIRES PEOPLE WHO ARE SMARTER THAN HE IS.

SO…YOUR BOSS IS DUMBER THAN YOU?

AND YOUR BOSS’S BOSS IS DUMBER YET?

ACCORDING TO YOUR THEORY, OUR CEO IS THE DUMBEST PERSON IN THE COMPANY.

UNLESS ALL OF YOU ARE BAD MANAGERS.

TRULY WE ARE DOOMER EITHER WAY.

THIS CONCLUDES THE MOTIVATIONAL PART OF OUR MEETING.

I’D GIVE YOU A HIGH FIVE BUT I DON’T LIKE TO MOVE.

The Innovation Challenge 

True or False?

Studies by psychologists show that creativity is largely a genetic endowment where

nature trumps nurture in importance.

28

Why are some more creative?

It’s Genetic.

29

ResearchStudy

Why are some more creative?

Twins:Raised Apart

30

Why are some more creative?

Sometime between the ages of 15‐25 the twins are given intelligence and creativity 

tests. 

Twins:Raised Apart

31

Why are some more creative?

Sometime between the ages of 15‐25 the twins are given intelligence and creativity 

tests. 

Twins:Raised Apart

32

Why are some more creative?

Results:

Sometime between the ages of 15‐25 the twins are given intelligence and creativity 

tests. 

Twins:Raised Apart

33

Why are some more creative?

Results:IQ tests reveal that roughly 80% of general intelligence 

is genetic.

Sometime between the ages of 15‐25 the twins are given intelligence and creativity 

tests. 

Twins:Raised Apart

34

Why are some more creative?

Results:IQ tests reveal that roughly 80% of general intelligence 

is genetic.

Creativity tests reveal that roughly 33% of creativity performance is genetic

35

It’s Not JustGenetic

So….

Why are some more creative?

36

It’s Not JustGenetic

Nurture

Nature

So….

Why are some more creative?

You have more creative capacity

than you think.

Disruptive Innovators

How does Jeff Bezos Innovate? 

Disruptive Innovators

How do they get new ideas

Disruptive Innovators

How do they get new ideas

Disruptive Innovators

How can I get new ideas

Ability to connect seemingly unrelated ideas and put them together in new ways(DQ)

Where do Innovative Ideas come from?

Ability to connect seemingly unrelated ideas and put them together in new ways(DQ)

Where do Innovative Ideas come from?

Ability to connect seemingly unrelated ideas and put them together in new ways(DQ)

Where do Innovative Ideas come from?

Ability to connect seemingly unrelated ideas and put them together in new ways(DQ)

Where do Innovative Ideas come from?

Ability to connect seemingly unrelated ideas and put them together in new ways(DQ)

Where do Innovative Ideas come from?

For example

Dairy Queen

Steve JobsCEO Apple Inc.

“Creativity is connecting things…creative people connect experiences they’ve had and synthesize new things.”

Associating

Jennifer Hyman, MBA Student

Designer Dresses

Jennifer Hyman, MBA Student

Designer Dresses

Jennifer Hyman, MBA Student

Designer Dresses

Jennifer Hyman, MBA Student

Jennifer Hyman, MBA Student

Associating

Associating

Associating

Associating

See connections between seemingly unrelated ideas.

Associating

Associating

See connections between seemingly unrelated ideas.

YourTurn

Now It’s

Associating

Dishwasher

Associating

Dishwasher

+

Associating

MicrowaveDishwasher

+

Associating

MicrowaveDishwasher

+

Associating

=

MicrowaveDishwasher

+

In‐Sink Dishwasher

Associating

=

MicrowaveDishwasher

+

In‐Sink Dishwasher

Associating

=EdgeStar Countertop Dishwasher

Associating

CognitiveSkill

Associating

The Innovator’s DNA Model

CognitiveSkill

Associating

Creative Idea

The Innovator’s DNA Model

CognitiveSkill

Associating

Creative Idea

The Innovator’s DNA Model

DiscoveryBehaviors

CognitiveSkill

Associating

Creative Idea

The Innovator’s DNA Model

DiscoveryBehaviors

CognitiveSkill

Associating

Creative Idea

Questioning

The Innovator’s DNA Model

DiscoveryBehaviors

CognitiveSkill

Associating

Creative Idea

Questioning

Observing

The Innovator’s DNA Model

DiscoveryBehaviors

CognitiveSkill

Associating

Networking

Creative Idea

Questioning

Observing

The Innovator’s DNA Model

DiscoveryBehaviors

CognitiveSkill

Associating

Networking

Creative Idea

Questioning

Observing

Experimenting

The Innovator’s DNA Model

Discovery-Driven Executives Who

Think Different

Act Different

Discovery-Driven Executives Who

Act Different

Think Different

… AND SINCE OUR BONUSES DEPEND ON THINGS WE CAN’T CONTROL…

Act Different: Question

… AND SINCE OUR BONUSES DEPEND ON THINGS WE CAN’T CONTROL…

…CAN MINE BE BASED ON THE PERFORMANCE OF SOME OTHER COMPANY?

Act Different: Question

… AND SINCE OUR BONUSES DEPEND ON THINGS WE CAN’T CONTROL…

…CAN MINE BE BASED ON THE PERFORMANCE OF SOME OTHER COMPANY?

YOU ASK ONE QUESTION AND SUDDENLY YOU’RE NOT A TEAM PLAYER.

Act Different: Question

What:Actively question the status quo.

Why:Gain an under‐standing of what the problem is and is not.

Questioning

David NeelemanFounder, Jet Blue & 

Azul Airlines

“One of my strengths is an ability to look at a processthat has been in place for a long time and ask, “Why don’t they do it this other way?”  And sometimes I find myself thinking the answer is so obvious that I wonder “Why has no one else ever thought of this before?” 

Questioning

“What if” we were legally prohibited from conducting any future business with our current set of customers. 

Good Questions Impose Constraints

“What if” we were legally prohibited from conducting any future business with our current set of customers. 

Good Questions Impose Constraints

How would we make money next year?

“What if” we could only interact with our customers through digital technologies?

Good Questions Impose Constraints

“What if” we could only interact with our customers through digital technologies?

Good Questions Impose Constraints

How would that change the way we deliver a great customer experience?

Or Eliminate Constraints

“What if” money were no object?

What kind of product would we create?

Or Eliminate Constraints

“What if” money were no object?

• Identify a problem that you are trying to solve. 

Question‐Storming

• Identify a problem that you are trying to solve. 

• Instead of brainstorming solutions, brainstorm ONLY questions to the problem (at least 25 questions).

Question‐Storming

• Identify a problem that you are trying to solve. 

• Instead of brainstorming solutions, brainstorm ONLY questions to the problem (at least 25 questions).

• Write the questions on a white board for all to see as they are being generated.

Question‐Storming

• Identify a problem that you are trying to solve. 

• Instead of brainstorming solutions, brainstorm ONLY questions to the problem (at least 25 questions).

• Write the questions on a white board for all to see as they are being generated.

• At the end, prioritize the top 3‐5 questions that should be addressed/answered before brainstorming solutions 

Question‐Storming

Questioning is—• Challenging the status quo.

Creative Idea Generation

Questioning is—• Challenging the status quo.

• Imposing or eliminating constraints.

Creative Idea Generation

Questioning is—• Challenging the status quo.

• Imposing or eliminating constraints.

• Pushing others to imagine the future by asking “what if” questions?

Creative Idea Generation

What:Gain insights for new ways to do things by finding “surprises.”Why:Understand the job‐to‐be done.

ObservingObserving

© Copyright 2013 Innovator’s DNA LLC 96

Identify key “jobs-to-be-done” through customer empathy and discovery

Understand customer functional, social, and emotional

jobs-to-be-done

Empathy

Solution JobWhat? Why?

“People don't want to buy a quarter-inch drill…

…they want a quarter-inch hole!" - Theodore Levitt

© Copyright 2013 Innovator’s DNA LLC 97

Identify key “jobs-to-be-done” through customer empathy and discovery

Understand customer functional, social, and emotional

jobs-to-be-done

Empathy

Solution JobWhat? Why?

“People don't want to buy a quarter-inch drill…

…they want a quarter-inch hole!" - Theodore Levitt

Overcome customer barriers through simplicity, convenience,

cost, and access

Discovery

© Copyright 2013 Innovator’s DNA LLC 98

Identify key “jobs-to-be-done” through customer empathy and discovery

Understand customer functional, social, and emotional

jobs-to-be-done

Empathy

Solution JobWhat? Why?

“People don't want to buy a quarter-inch drill…

…they want a quarter-inch hole!" - Theodore Levitt

Overcome customer barriers through simplicity, convenience,

cost, and access

Discovery

Look for jobs that are important, unmet, and widely-held

BMW HondaHarley Davidson

Why do people buy (hire) a Harley Davidson?

BMW HondaHarley Davidson

Why do people buy (hire) a Harley Davidson?

BMW HondaHarley Davidson

‐ Brand Image (rugged individualism)

Why do people buy (hire) a Harley Davidson?

BMW HondaHarley Davidson

‐ Brand Image (rugged individualism)‐ Customizable product so that each is unique.

Why do people buy (hire) a Harley Davidson?

BMW HondaHarley Davidson

‐ Brand Image (rugged individualism)‐ Customizable product so that each is unique.‐ Access to a community (HOG) of like minded bikers 

Harley Davidson

“The only way I know to teach people to be innovative is to teach them how to observe andask just one question that often generates surprising responses, ‘What’s different than you expected?’”

Scott CookCEO, Intuit

Observing

Observing

P&G and Google swap marketing and HR employees for two months to learn through 

observing and networking.

Observing

P&G and Google swap marketing and HR employees for two months to learn through 

observing and networking.

Observing

P&G and Google swap marketing and HR employees for two months to learn through 

observing and networking.

Results:

P&G learns how to use “Mommy Bloggers” to promote products.

Observing

Lived in 2+ Countries

Observing

Lived in 2+ Countries

ANDOR

Worked in 2+ Industries/Business Functions

Observing

Lived in 2+ Countries

ANDOR

Worked in 2+ Industries/Business Functions

Twice as Likely to Innovate

Observing is—

Creative Idea Generation

The propensity to intensely observe the world around you —such as customers, products, services, companies and technologies—to gain insights and ideas about new ways of doing things.

Creative Idea Generation

In 60 seconds or less, list your top 10 (or more) “go‐to” people for helping you generate or spark new ideas.

1. ______________________2. _______________________3. _______________________4. _______________________5. _______________________6. _______________________7. _______________________8. _______________________9. _______________________10. _______________________

Your Idea Network

• Opposite gender?

How Diverse is Your Network?

• Opposite gender?• Different function of your company?

How Diverse is Your Network?

• Opposite gender?• Different function of your company?• Different industry?

How Diverse is Your Network?

• Opposite gender?• Different function of your company?• Different industry?• Different nationality? (grew up in a different country).

How Diverse is Your Network?

• Opposite gender?• Different function of your company?• Different industry?• Different nationality? (grew up in a different country).

• Different age group?

How Diverse is Your Network?

• Opposite gender?• Different function of your company?• Different industry?• Different nationality? (grew up in a different country).

• Different age group?• Different socioeconomic group?

How Diverse is Your Network?

What:Actively seek diverse ideas.

Why:Gain a new perspective.  

Networking

“I like to hang out with young entrepreneurs, like Drew Houston, 28 year old cofounder of Dropbox.  He grew up in the internet.  I didn’t.  So he can see things in ways that I don’t.  That perspective is really important.  I can’t sit in my headquarters and pretend I’m in touch.”

Marc BenioffFounder and CEO, Salesforce.com

Networking

Marc BenioffFounder and CEO, Salesforce.com

Networking

Facebook  & Twitterfor Businesses

Don’t eat…

…alone.

with someone who thinks like you.  

Don’t eat…

Building Your Networking skills:

Creative Idea Generation

Building Your Networking skills:1. Tap experts.   Who else has solved a problem like this before?

Creative Idea Generation

Building Your Networking skills:1. Tap experts.   Who else has solved a problem like this before?

2. Attend networking events—and set a goal to talk to as many people as possible.

Creative Idea Generation

Building Your Networking skills:1. Tap experts.   Who else has solved a problem like this before?

2. Attend networking events—and set a goal to talk to as many people as possible.

3. Form or join a networking group.

Creative Idea Generation

Early experiments in transportation

Act Different: Experiment

What:• Test ideas.• Seek new 

experiences.• Take things apart. Why:Learn from new experiences, pilots and prototypes.

Experimenting

Jeff BezosFounder, Amazon.com

“One of the things we’ve tried to do at Amazon is reduce the cost of conducting experiments.  If you can increase the number of experiments you try from 100 to 1,000, you dramaticallyincrease the innovations you produce.”

Experimenting

IDEO PeopleExperimenting

David KelleyFounder, IDEO“If a picture is worth a thousand words, a prototype 

is worth a million words.” –David Kelley, Founder IDEO

© Copyright 2013 Innovator’s DNA LLC 133

What is a prototype?

© Copyright 2013 Innovator’s DNA LLC 134

What is a prototype?

Prototypes have many names….

‘Comp’

‘Rough’

‘Alpha’‘Beta’

‘Mock‐up’

‘Design’

‘Blueprint’

‘Visual’

‘WorkingModel’‘Pilot’

‘Test’

‘Trial’

© Copyright 2013 Innovator’s DNA LLC 135

What is a prototype?

Prototypes have many names….

CAD Models Ad Mock-Ups

Sketches

Drawings

Integrated Systems

Hardware

Websites

Simulations

‘Comp’

‘Rough’

‘Alpha’‘Beta’

‘Mock‐up’

‘Design’

‘Blueprint’

…and come in many shapes and sizes

Physical Models

Virtual Markets‘Visual’

‘WorkingModel’‘Pilot’

‘Test’

‘Trial’

© Copyright 2013 Innovator’s DNA LLC 136

What is a prototype?

Prototypes have many names….

CAD Models Ad Mock-Ups

Sketches

Drawings

Integrated Systems

Hardware

Websites

Simulations

‘Comp’

‘Rough’

‘Alpha’‘Beta’

‘Mock‐up’

‘Design’

‘Blueprint’

Common Definition: Anything visible and tangible that lets us explore, experience, evaluate and push forward an idea

…and come in many shapes and sizes

Physical Models

Virtual Markets‘Visual’

‘WorkingModel’‘Pilot’

‘Test’

‘Trial’

• Planning– You can’t plan your way to success when there is a high degree of market risk (will they want it?) and technological risk (can we make it?)

Experimenting Lessons

• Planning– You can’t plan your way to success when there is a high degree of market risk (will they want it?) and technological risk (can we make it?)

• Quickly test assumptions with prototypes– Use A/B prototypes and iteration to learn your way to success

Experimenting Lessons

• Planning– You can’t plan your way to success when there is a high degree of market risk (will they want it?) and technological risk (can we make it?)

• Quickly test assumptions with prototypes– Use A/B prototypes and iteration to learn your way to success

• Experimenting is the best way to answer a “what if” question– Sometimes there is no question, observation, or conversation that can reveal the future.

Experimenting Lessons

Experimenting is—

Creative Idea Generation

Experimenting is—• Learning new skills

Creative Idea Generation

Experimenting is—• Learning new skills

• Taking apart products, ideas, processes.

Creative Idea Generation

Experimenting is—• Learning new skills

• Taking apart products, ideas, processes.

• Piloting ideas to test hypotheses...to answer questions you cannot through observing or networking. 

Creative Idea Generation

Discovery Behaviors Feed Associating

Think

Creative Idea

Four behaviors—questioning, observing, 

networking, experimenting—turbo charge creative thinking.

© Copyright Innovator’s DNA 147

• Discounted Self Assessment through September 30th, 2014• To take your assessment, follow these steps: Go to this URL: bit.ly/idna‐register Use Registration Key: “innovation” to get the assessment at a 50% discount!

• Contact support@innovatorsdna.com with any questions

Take the Innovator’s DNA Self Assessment at 50% Off!

“If we pull this off, we’ll eat like kings.”

Take Calculated Risks

Creativity is not just a genetic endowment.  

Conclusion

Remember:

Creativity is not just a genetic endowment.  

Conclusion

Remember:

Implication:

Creativity is not just a genetic endowment.  

Conclusion

Remember:

Act Different

Implication:

Creativity is not just a genetic endowment.  

Conclusion

Remember:

Act Different

To 

Implication:

Creativity is not just a genetic endowment.  

Conclusion

Remember:

Act Different

To  ThinkDifferent

Implication:

Questions?

OCTOBER 17, 2012

To ask a question … click on the “question icon” in the lower-right corner of your screen.

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Register for “Your Scarcest Resource” with Michael Mankins, leader of Bain’s Organization practice in the Americas and co-author of the Harvard Business Review Article, “Your Scarcest Resource.”

Register here: www.krm.com/hbr/ScarcestResourceWP

SEPTEMBER 11, 2014