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1. What is creativity and innovation ?
2. Need for innovation
3. Barriers to innovation
4. Innovation systems
5. Scimitar and Shield
What Is Innovation?A Complex and difficult Management Process
PROBLEMS
Needs ResearchMeans Development
Idea GenerationConcept Development
Concept EvaluationProject Development
Customer Trials
Launch
Commercial Development
Product Development
VIABLE NEW BUSINESS
10 Steps toInnovation
1. Sourcing Ideas for Innovation
Some organisations find it difficultTo generate relevant new ideas
And . . . You have to play the numbers game
4. Timing Development and Launch
Don’t give me that!What I need is growth . . .NOWSALES
Controlling DevelopmentAnd Launch Timing
5. Marketing ProblemsDoes it satisfy the Need?
• Does it go significantlyBeyond conventionalPerformance?Will our clients use it?
Misunderstanding the Market
Why Bother?Shed a little light on the need to change and innovate
• No organisation can stand still in a competitive environment
Basic Systems for Improving Innovation
Just as there are proven systems forincreasing cost efficiency in existing business
There are proven systems for increasingcost efficiency in Innovation
Tasters for Scimitar Systems
1. SCIMITAR Business Modelling- Idea Generation Model
2. Creative Visualisation- Creative Psychology
3. SCIMITAR Appraisal Systems- Three Stage Assessment
First Management System
ThreeThree DimensionalDimensionalIntegrative
BusinessBusiness ModellingModelling
SCIMITAR Modelling
Three Dimensional Integrative ModellingMARKETS SERVED
RESOURCESUSED
PROCESSESAPPLIED
MR P
ALL EXISTING BUSINESSIS MODELLED AS FILLED CUBES
M
P R
Example of SCIMITAR Model – Café 3D
FRYGRILL
ROAST
BAKE
PROCESSES
POTATOESFISHMEATPOULTRY
RESOURCES
BUSINESS LUNCHES
SCHOOLKIDS
EVENING DINERS
SPECIAL PARTIES
MARKETS
SEARCH FOR UNUSUALAVAILABLECOMBINATIONS
Example of SCIMITAR Model – Café 3D
FRYGRILL
ROAST
BAKE
PROCESSES
POTATOESFISHMEATPOULTRY
RESOURCES
SCHOOLKIDS
BUSINESS LUNCHES
EVENING DINERS
SPECIAL PARTIES
MARKETS
SEARCH FOR UNUSUALAVAILABLECOMBINATIONS
Three Dimensional Integrative Modelling
M
P RA
BC
D
Theoretical vs. Practical
•Larger
•Derivative Axes
•Practical Axes
• A void within the Company Model represents availableunexploited options• Not all voids are meaningful - search each• The company has access to all items on all 3 axes within its model
Company Opportunities – Integrative Growth Points
ATTRIBUTES?
?
APPLICATIONS
A
BC
D
APPROACHES
Creative SearchingLOGIC ALONE CANNOTSOLVE ALL BUSINESSPROBLEMS . . .
Nor can logic alone find allA company’s OPPORTUNITIES
The need for a Creative Approach
Mind Sets
PROBLEM
Habitual Thinking
Pre-conceived ideas lead toForegone conclusions
The Spark ofInsight
Company Mind Sets can prevent Creativity
Important !!!During Model Search
SUSPEND
JUDGEMENT
Do not challenge other team members’ ideas. . . Only add to them so as to make improvements
Separate Idea Generation from Idea Assessment
Selection ProceduresHow to locateWinnable Nuggets . .
12 Nuggets in a Mountain of stones
PANNING FOR GOLD
Scimitar Assessment Stages
1. QUALITATIVENew
RelevantActionable
2. RISK ANALYSISProcurement Risk
Marketing Risk
3. V.A.S.T.Venture Appraisal & Selection Technique
Selection of a Balanced Portfolio
Concept Quantification- V.A.S.T.1. How much will the concept cost?
What capital cost is involved?What development cost is involved?
What additional revenue cost is involved?
2. How much will the concept yield?How big is the market?
What % will be captured?What margin will be achieved?
3. What is the Yield to Cost Ratio?What return on capital will be achieved?
What will the payback period be?
Venture Appraisal & Selection Technique
V.A.S.T. GraphYIELD
COSTAcceptance Level =
Pay
Back
LOW RISKVENTURES
GROWTHPOINTS
MAJORVENTURES
Final Selection – Balanced Portfolio of 12
Venture Justification ReportVENTURE1. The Opportunity2. The Product3. Resources Used4. The Process Applied5. The Market Served6. The Likely Sales7. Project Costing8. Profit Potential9. The Unknowns10. Development Needed – to answer the unknowns11. Conclusions12. Recommendations
Final Short List Presentation
Business Modeling
Furniture manufacture:Materials of construction
Function or what it used for
Where it is used