Welcome to Innovation

Make Bright Ideas come true

By Jose Pla2013-01-21

What is innovation?

• Definitions– The United Kingdom's Department of Trade and Industry

website (www.innovation.gov.uk):• Innovation – the successful exploitation of new ideas –

incorporating new technologies, design and best practice is the key business process that enables UK businesses to compete effectively in the global environment.

– Wikipedia• Innovation is the implementation of a new or significantly

improved idea, good, service, process or practice which is intended to be useful

– Harvard Business Review• ʻ…we define Innovation broadly, encompassing not just brilliant

new products but also distinctive operating practices, managerial tactics, and even business strategies.

Defining Innovation as a simple process

Need

• A need to ignite creativity, to find a better way

Dream

• Be Creative, get an idea

Plan

• Put your idea in paper

• In case your plan needs others involvement then be political and sell your idea

Execute

• Make your Dream come true

• From your mind to the physical world

The Monk who Killed the Cow

“A long time ago, a Monk set out on his travels accompanied by his assistant, a Brother. Night was falling when the Monk told the Brother to go on ahead to find lodging. The Brother searched the deserted landscape until he found a humble shack, in the middle of nowhere. A poor family lived in the hovel. The mother, father and children were dressed in rags. The Brother asked if he and the Monk could spend the night in their dwelling. “You are most welcome to spend the night,” said the father of the family. They prepared a simple meal consisting of fresh milk, cheese and cream for the Brother and the Monk. The Brother felt moved by their poverty and even more by their simple generosity.

The Monk who Killed the Cow

When they finished eating, the Monk asked them how they managed to survive in such a poor place, so far away from the nearest neighbors and town. The wife looked to her husband to answer. In a resigned tone of voice he told them how they managed to survive. ‘We have one cow. We sell her milk to our neighbors who do not live too far away. We hold back enough for our needs and to make some cheese and cream-that is what we eat.”

The next morning, the Brother and the Monk said their good-byes and set out to continue their journey. After the Monk and the Brother had walked a few miles, the Monk turned to the Brother and said, “Go back and push the cow off the cliff!” “Father,” the Brother replied, “they live off the cow. Without her, they will have nothing.” The Monk repeated his order “go back and kill the cow.”

The Monk who Killed the Cow

With a heavy heart, the Brother returned to the hovel. He worried about the future of the family because he knew they depended on the cow to survive. His vow of obedience bound him to follow the orders of the wise Monk. He pushed the cow off the cliff.

Years later, the young Brother became a Monk. One day he found himself on the same road where he found lodging so many years ago. Driven by a sense of remorse he decided to visit the family. He rounded the curve in the road and to his surprise, he saw a splendid mansion, surrounded by landscaped gardens, in the place where the hovel used to be. The new house exuded a sense of prosperity and happiness. The Monk knocked on the door.

The Monk who Killed the Cow

A well-dressed man answered. The Monk asked, “what ever became of the family who used to live here? Did they sell the property to you?” The man looked surprised and said he and his family had always lived on the property. The Monk told him how he had stayed in a hovel on the same spot, with his master the old Monk. ‘What happened to the family that lived here?” he asked.

The man invited the Monk to stay with him as his guest. While they ate, the host explained how the family’s fortune changed. “You know Father, we used to have a cow. She kept us alive. We didn't own anything else. One day she fell down the cliff and died. To survive, we had to start doing other things, develop skills we did not even know we had. We were forced to come up with new ways of doing things. It was the best thing that ever happened to us! We are now much better off than before.”

Business Case P&G

• P&G used to be a VERY closed organization

– “We invented Not Invented Here” – J. Weedman

• P&G financial crisis, in 2000

– Missed a series of quarterly financial estimates

– Stock market lost confidence in the company

– Stock price fell by more than half in 4 months!

– CEO (Jagr) was fired

© 2007 Henry Chesbrough 9

P&G’s Stock Price: 8/1998-3/2000

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Searching for the Root Cause

• “We fundamentally had a growth problem. Our current brands were performing well. But we weren’t developing many new brands.” –C. Wynett

• To get new brands, P&G needed to open up.

• Connect and Develop

– SpinBrush, Swiffer, Regenerist

The New P&G

• Many processes to enable open innovation

– Technology scouts

– Legal templates for IP, partnering

– Investments in Innovation Intermediaries

• The Goal Now: Become the open innovation partner of choice

Where does innovation come from?

• Should we criticize?

• Should we always rely on R&D?

Components of Innovation

Innovation

CoachingKnowledge

Sharing

Proactive Strategies and

Solutions

Guidance, Training

& Mentoring

Domain

Knowledge

Architectural Approaches +

Technology Evaluations.

Innovation Labs

What is the 6 hat theory?

• Everyone wears the same color hat at the same time.

• Everyone looks at problem from the same perspective.

• It is a decision technique for promoting innovation, developed by Dr. Edward De Bono.

Yellow Hat

• Based on positive thinking for new ideas

• Answer the following questions, but restrictively thinking with optimism, opportunity, positivism point of view and on benefits:

– What are the good points?

– What are the benefits?

– Why will this idea work?

– Is it worth doing?

– How will it help us?

– Why is it be done?

Black Hat

• Consider risks, dangers, obstacles, potential problems and downside of a suggestion

• Judge the same questions as in the yellow hat but with a cautious point of view.

Red Hat (Not the Linux version ;)

• Involve feelings, hunches, intuition into the judgment of the idea; no need to justify any of these.

White Hat

• Measure possibility, and try to list the pending requirements:

– What information do we have ?

– What information do we need ?

– What information is missing ?

– How are going to get the information we need ?

– What questions do we need to ask ?

Green Hat

• Find possible workarounds or alternative solutions to attack the same problem:

– Alternatives and enhancement opportunities

– New different ideas

– New Proposals

– Suggestions

Blue Hat

• Actions taken and Next Steps pending.

• It is like a Scrum meeting, where it is listed what we have and will be the next task.

• This hat is unique since it is the intermediary between switching hats.

• “Blue Hat Thinker is responsible for summaries, overviews and conclusions.”

• “Blue Hat Thinker monitors the thinking and ensures that the rules of the game are observed.” It is like a referee or auditor.

Sequence example on wearing the hats:

Red + White

Comparing facts and opinion

Black + Yellow + Green

Comparing and synthesizing (coming up with new ideas from the known)

White + Blue

What do we know (facts) and where are we going (planning)

Ways to stimulate new ideas

• Innovation tournaments Examples

Innovation tournament Business letter

Dear Team:

The events of the last year have created unprecedented opportunities for innovation at

xxx.

In this context, I would like to create a set of new business opportunities for the xxxx

market segment. I expect this sector to undergo some serious change in the future,

reflecting changes in xxxx.

Of course, I understand that given the time you have for this effort, these opportunities

will be quite preliminary. Nevertheless, I think this quick exploratory activity will be

useful in stimulating discussion about whether and how we might address emerging

market needs in this area.

I’d like you to take part of the day on xxxx, to develop about two dozen interesting

opportunities, with the best handful identified based on the consensus of the group.

I would prefer that each opportunity be articulated in terms of

(a) the stakeholder targeted,

(b) the unmet need addressed, and

(c) one or more potential solution concepts.

I do want to emphasize that I think of solutions in broader terms than our current

product line. You might want to also (though not exclusively) consider solutions that

involve service offerings or new business models.

Good luck and I look forward to hearing from you no later than next week.

xxxx

Chief Executive Officer

Insert company logo

Process from Idea until Final Product:

Ignite

• Ignite uses techniques from creative thinking to stimulate whole brain thinking, and move teams “Outside the Box”. Workshop setting to produce focused results.

Explore

• Explore using techniques like Brainstorming, Six Thinking Hats, What if , Contextual Design to explore solutions and innovative ideas, via workshops and coaching.

Analysis

• Analysis uses marketing research data, financial models, project estimates, high level designs to define innovations in terms of market drivers, development costs and return on innovation (ROI)

Process from Idea until Final Product:

Refine

• Refine uses the collective talents of cross functional teams, creativity and facilitated sessions to help teams qualify and quantify ideas, in preparation for management presentation. Often done in an “Innovation Lab”

Present

• Present is the step where management review and selection of new product and services innovations occur

Implement

• Implementation is done as a dedicated set of projects funded separately from the normal product pipeline and with separately dedicate teams of resources to insure the fastest time to market

What or who defies

innovation at a business

level?

A/ Decision processes on

selecting new ideas to

invest in.

The 3 skills needed for creativity:

1. Knowledge (promote innovation within others by sharing your knowledge)

2. Mental flexibility

– 1&2 bring them together to be open to learn new things so your view of solutions will go wider and open minded to new ideas

3. Motivation

Creative vs. Innovator

Ideas are not worth it if they just stay on drawings and papers.

(one example: Leonardo da Vinci’s drawings)

Have

Fun

Grow

Invent

Assume risks

Break the

rules

Dare to fail

One person can build a canoe but for a vessel it requires a coordinated team.

“If you're not failing every now and again, it's a sign you're not doing anything very innovative.”

-Woody Allen

"Everyone who has ever taken a shower has had an idea. It's the person who gets out of the shower, dries off, and does something about it that makes a difference.“

-Nolan Bushnell

“In the long history of humankind (and animal kind, too) those who learned to collaborate and improvise most effectively have prevailed"

-Charles Darwin

“The best way to guarantee a steady stream of new ideas is to make sure that each person in your organization is as different as possible from the others. Under these conditions, and only these conditions, will people maintain varied perspectives and demonstrate their knowledge in different ways.”

-Nicholas Negroponte (b. 1943)U.S. computer scientist, co-founder of MIT Media Laboratory

CREDITS:

• Slideshare:• La Vaca - Camilo Cruz• Innovation Tournaments Slides - for Darwinator• Encouraging Innovation (Slides)• developinginnovationcapabilityinorganizationsadynamiccapabilitiesapproach-120504033801-phpapp01• CP-INN01 Developing Innovation Skills• Innovationwebinarslides• 201111MillerslidesInnovationandIC• innovacin-120201142722-phpapp01• slgsixthinkinghatsseminarv2-120622155321-phpapp02• innovationaccelerator-110506152518-phpapp01• openinnovationslides-100607164414-phpapp02• innovation_processes_slide_1_to_15• esn-091014051553-phpapp01

Bibliography:

AUDIENCE SUMMARY:

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