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Innova&on workshop for the 2015 alumni reunion
http://kwanghui.com
Kwanghui Lim
Associate Professor, MBS and
Co-‐Director, Intellectual Property Research Ins&tute of Australia.
Agenda
• Quick introduc&ons
• What is innova&on? – A framework for being a beOer innovator.
• Prac&ce session! – This is a workshop. Not a lecture.
• Discussion and wrap-‐up
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Innova&on
• What is innova&on?
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Top myths
• Innova&on is about technology. – What about business model innova&ons, design innova&ons, etc.?
• Innova&on is ‘disrup&on’. – What about architectural, radical, incremental innova&on?
• Innova&on is about startups. – That’s entrepreneurship. Innova&on also applies to incumbent firms and to
social, community, government.
• Innova&on is an individual effort. – Even inven&on is no longer an individual effort.
• Innova&on just needs the company to regularly run an ‘innova&on day’. – Good innova&on &es strategy, marke&ng and organiza&onal processes at a
deeper level.
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So how do we become more innova&ve?
• Lots of techniques available – Crea&vity – Brainstorming – Design thinking – Lean – Etc.
• But we’re MBAs … – So it is important to have a framework that puts them together J – It should help not just startups, but expand our capacity to innovate
more broadly.
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Start with a problem
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A simple innova&on framework
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Hothouse promising ideas Slingshot those with the highest product-‐market fit Hatch lots of ideas
Image credits: Google Images., http://techtites.com/angry-birds-epic/angry-birds-epic-upgrade-your-heroes/ http://disneydude-94.deviantart.com/art/The-Eggs-Hatched-267491726
I. How to hatch ideas
• Use crea&vity techniques, brainstorming, the Stanford design thinking bootleg, etc. – It is a myth that only some people are born crea&ve.
• Four key elements cut across different techniques: – Observe – Reframe – Recombine – Withhold judgment !
• Even simple steps can make the ordinary into something new.
– E.g., hOp://pix.kwanghuiseto.com/Fun/2013-‐05-‐MBS-‐Favs
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II. How to hothouse your promising ideas
• Develop a business model – What’s the added-‐value of the idea? – Which customers and channels to pursue. – Cost and revenue models. – Market entry strategies.
• Test with actual market feedback – Prototype, validate and pivot as needed (e.g., using the lean methodology)
• Build a team – Bring onboard the minimum number of people, but with the diverse range of
skills needed to get off the ground.
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Elements of a business model
• Note: A business model is not a strategy (yet)! It just ar&culates viability without necessarily taking into account the full compe&&ve dynamics and a comprehensive marke&ng plan.
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What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive?
Through which Channels do our Customer Segments want to be reached? How are we reaching them now?How are our Channels integrated? Which ones work best?Which ones are most cost-efficient? How are we integrating them with customer routines?
For what value are our customers really willing to pay?For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?
For whom are we creating value?Who are our most important customers?
What type of relationship does each of our CustomerSegments expect us to establish and maintain with them?Which ones have we established? How are they integrated with the rest of our business model?How costly are they?
What value do we deliver to the customer?Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment?Which customer needs are we satisfying?
What Key Activities do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue streams?
Who are our Key Partners? Who are our key suppliers?Which Key Resources are we acquiring from partners?Which Key Activities do partners perform?
What Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?
Day Month Year
No.
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Example: Tradi&onal versus do-‐it-‐yourself book publishing
http://kwanghui.com Source: “Business Model Generation” by Osterwalder & Pigneur
Partner
Costs Revenues
Resources
Activities
Value Proposition
Customers
Channels
Customer Segments
III. How to ‘slingshot’ your most promising ideas
• The key is to build the right capabili&es and resources to execute on your proposed business model. – Seek funding (if needed). – Pitch to obtain investment, mentoring, lead customers and support. – Protect the idea and/or develop partnerships.
• Note that partnering is risky if you cannot protect the idea.
• An&cipate and overcome obstacles, avoid nega&vity. – Recruit champions. – Recruit customers/users – Cross the “chasm”. – Build an innova&ve culture and organiza&on (ini&al/founding condi&ons
maOer).
• Con&nue adap&ng to feedback and pivot as needed. http://kwanghui.com
A simple innova&on framework
http://kwanghui.com
Hothouse promising ideas Slingshot those with the highest product-‐market fit
Develop Business Model
Test, Validate, Pivot
Build a Team
Crea&vity techniques
Design thinking
Brainstorming
Recruit champions Recruit customers
Seek funding if needed Protect and/or partner Cross the “chasm”
Build innova&ve organiza&on
Hatch lots of ideas
A few &ps
• You should hatch many ideas, as only some of them will find a product-‐market fit.
• Form teams that cross disciplinary areas, and with different social connec&ons. – It helps reframe/recombine, e.g., through knowledge bridging and brokering.
• Isolate/separate the three nodes. – They require different tradeoffs, choices. – E.g., hatching an idea needs the suspension of judgment, while building a business plan
requires engaging with ‘reality’.
• Hatching an idea is only a small part of it. – MBAs can play a key role!
• E.g., building the strategy and market links, championing and genera&ng momentum, having a business systems view.
– Don’t overthink the business model/plan. A real risk for MBAs.
http://kwanghui.com
A simple innova&on framework
http://kwanghui.com
Hothouse promising ideas Slingshot those with the highest product-‐market fit
Develop Business Model
Test, Validate, Pivot
Build a Team
Crea&vity techniques
Design thinking
Brainstorming
Recruit champions Recruit customers
Seek funding if needed Protect and/or partner Cross the “chasm”
Hatch lots of ideas
Your team Challenge (30 minutes)
• Pick a problem to work on. – Preferably something from work or
your recent social experience. • Write it down at the top of the
worksheet
• Go through the steps in our framework – Hatchery -‐> Hothouse -‐> Slingshot
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Statement of problem
Hatchery • Observe • Reframe • Recombine • Withhold judgment
Hothouse • What’s the business
case? • How to test it? • Who to bring
onboard
Slingshot • What problems do
you anticipate? • How would you
overcome them: • What resources,
people and capabilities will get you there?
• Funding, protecting IP, partnership
Slides for Q&A
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The key thing is to overcome the emo&onal obstacles mid-‐way
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Courtesy of Sally Hogshead http://www.printmag.com/Article/The-5-Stages-of-Your-Creative-Process
Taxonomy of innova&ons
http://kwanghui.com Source: “The business model innovation factory” by Saul Kaplan
