P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Jim Belfiore, Certified Innovation Master
Sr. Director of Client Innovation and Practices
Invention Machine
Where to Innovate in This Economy
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Definition: Where
w here : [hwair, wair]
adverb:
• in or at what place?:
Where is he?
• in what position or circumstances?:
Where do you stand on this question?
• in what particular respect, way, etc.?:
Where does this affect us?
• to what place, point, or end? wither?
Where are you going?
• from what source? whence?:
Where did you get such a notion?
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Where Do You Stay Informed?
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Staying Informed in Science & Innovation…
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Staying Informed in Business & Innovation…
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Staying Informed in Finance and Economics…
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Where Have We Been?
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Back in 2008…
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Back in 2008…
• “When do you innovate?”
„When we have time‟
„When we have budget.‟
„…in response to a crisis.‟
• Looking towards 2011…
The real crises have just begun
The impacts to your lines of
business and innovation strategies
will be swift and profound
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Where Are We Now?
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Innovation is Driven By Need
“Innovation must meet a consumer need - the consumer must be willing to part with their money for it, and it must provide value to both us and the customer.” - A. G. Lafley, CEO, October 5, 2010
All of us in this room are impacted by the needs (and health) of consumers of every type
Government, Corporate, Individual
Understanding trends in 2011 will be more important than in any
previous year
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Government Trends are Astronomical…
• We’re increasing deficit spending
• U.S. debt crossing $14 Trillion
If each dollar of debt was a star, we’d now owe 140 galaxies
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Corporate Trends are Harder to Spot…
One statistic speaks for itself…
Source: Bloomberg - October 14, 2010
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
The Consumer is a System
• Just as with any product or process design, the consumer is a system that is comprised of many interacting parts, and external environments that can convey positive or negative effects
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Consumer Trends are not looking so good…
• Higher unemployment
• Fewer jobs
• Less disposable income
• Increased debt
• Lower purchasing power
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Consumer Trends are not looking so good…
• Higher unemployment
• Fewer jobs
• Less disposable income
• Increased debt
• Lower purchasing power
• Less mobility
• Poorer diet
• Decreased health
• Greater crime risks
• (Hyper)inflation?
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Where Are We Going?
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Everything is Rapidly Evolving
• Tomorrow’s service and manufacturing leaders will succeed because of rapidly evolving:
Global supply chains
Modern finance
Government policies
Population demographics
Information ecosystems
Geophysical transformations
Natural
Synthetic
• In today’s world, there’s no place left to hide.
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Innovation is No Longer About…
• Making small improvements in existing products
• Gaining single-digit market share in a crowded space
• Re-inventing a brand
If it is, then I’ve got a new product announcement
Radical Innovation must be your 12-mth survival plan
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Innovation for Survival Means…
• Making generational leaps on a rapid schedule
Knowing your S-curves
and how to navigate them
• Business Model Innovation
Re-inventing your existing
products’ value propositions
through New Market Analysis
Discovering (and dominating) new markets
that are outside of your core competencies
which align to your value and growth
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Innovation for Survival Means…
• Obsoleting:
Your Products
Your Services
Your entire industry
• If you do your job right, you’ll put yourself, and your competitors out of a job (at a nice profit)
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Constraints are Key to Radical Innovation
• In 2008, I told you:
Look for conflicts,
tradeoffs, or compromise
When you find the box, you’ll
drive high-value innovation
• Good News / Bad News
Good News: We are all going to be surrounded by rapidly
increasing compromise and conflicts in our respective markets
for the foreseeable future
Bad News: (See, “Good News”)
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
(Consumer) Constraints Apply to Everything
• Cost (lower cash-flow)
Not going to spend as much
when cash / credit is
available
• Lifecycle / Function
“Pent-up demand” is, at
best, unpredictable
Products at all price-points
will be working longer & harder
• Supersystem Trends
Increasing impacts of Energy, Transportation, Environment, Food,
Policies, etc.
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Where Would Innovation Happen?
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Aerospace (Civilian)
• Challenges:
Environmental Pressures
Upper S-Curve Plateau
Industry Volatility (Fuel)
• Innovation Opportunity:
Complete re-think of
fuselage design; targeting of
non-passenger constraints
Constraints: Fuel Consumption,
Environmental Impact (Sound,
Emissions)
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Aerospace (Civilian)
• Case Study: N+3 “Double Bubble”
180-Passenger (B737 class)
double fuselage design
“Boundary Layer Ingestion”
(slow-speed top-side air intake)
70% less fuel, 75% less NOx emissions
Phase 2 underway
Market entry: 2035
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Energy
• Challenges:
Hydrocarbon (Production / Supply)
Most alternatives obsolete only the fuel,
bringing new problems along for the ride
Existing HC fleets / infrastructure
• Innovation Opportunity:
Disruption of manufacturing
methods for current (high-demand)
fuel products
Constraints: Cost, Resources,
Environment
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Energy
• Case Study: Joule BioTech
Bioreactors: Artificial Microbes
Consume Sunlight and CO2
Produce Ethanol and Diesel
20,000 Gallons / Acre / Year
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Electronics / Automotive
• Challenges:
Accelerated introduction of
transformational commodities
Fundamental shift in
transportation power plants
Critical, exponential dependency
on rare-earth materials
Finite, geo-politically volatile
• Innovation Opportunity:
Find RE-free, high-anisotropic
materials; RE recycling; NPM
Constraints: Cost, Form Factor, Supply Chain
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Electronics / Automotive
• Case Study: ARPA-E
High-Energy Permanent Magnets Project
New technologies to double power densities
Expand market from $7 billion to $20 billion
in 10 years
• Case Study: Tesla Motors
RE-free induction
motor
245 miles / charge
0-60mph: 3.7 sec
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Medical
• Challenges:
Rising costs:
Manufacturing / Delivery
Disease State
Treatment Efficacy
Regulation / Policy
• Innovation Opportunity:
Develop products that
eliminate life-critical needs (devices / procedures / pharma)
long before the end of current (product / services) lifecycles
Example: Drug-Eluding Stent
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Medical
• Case Study: Nanoburrs
Revolutionary combination
of drug-delivery biophysics
and pharmacology
Wide applications
Coronary disease
Cancer
Endoskeletal
Changes the game in
disease-state management
in the next 2-5 years
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Where Should You Innovate?
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Communities of Innovation
• The single inventor is a myth
The path from concept to commodity
involves many people
In Innovation, there is no evil genius
• Two essential questions:
“Has this already been done?”
Freedom to operate tells you
the size of your neighborhood
“Who’s doing anything like this?”
Turn k(now)-how, into k(now)-who
Share your Problems / Use the Expert Finder
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Business Model Innovation
• Problem:
Increasing invasion of new and
disruptive business models
Typical response is to adopt
the new business model alongside
new competitors
Many companies are unsuccessful at
simultaneously managing and
integrating multiple business models
• Typical Solution: Business Unit Separation
Often leads to failure
Key considerations need to be researched before innovating a
competing business model
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Business Model Innovation
• Assess “Market Attractiveness”
Examine the new market for:
Size, Growth
Demographics, …
• Examine your own organization
Core Competencies:
Do your core competencies
apply to the new market
in a unique way?
Can your core competencies
“disrupt a disrupter”?
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Business Model Innovation
• (Re)Assess the Value Chain
Are the potential new customers
representative of an entirely new
market?
Are the potential new customers
just a new segment of an existing
business model?
…
• Invention Machine Goldfire’s Tasks are Uniquely Suited
Research, Find and Disrupt New Markets
• Obsolete Yourself, Everyday
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Business Model Innovation
“If you make a widget that has become dominant in the marketplace,
work on getting rid of it now. If you don't…you‟ll find yourself playing
your competitor's game.”
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Where Next?
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Your Innovation Goal is K(now) Where
• Knowledge is the first step
Staying informed is essential
Past, Present, and Future
• Trends are critical insights
Know where changes are leading
Demographics, Landscapes, Supersystems, …
• S-curves are more than wavy lines
Know where your products
are along the ideality curve
Know what the next generation
looks like…today
Goldfire facilitates effective research
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Your Innovation Goal is K(now) Where
• Radical Innovation will become the norm
Flat or small growth won’t cut it
Obsolescence must be planned out, not in
• K(now) constraints
Recognize, embrace, and innovate
Opposing traffic always drives in the passing lane
• K(now) boundaries…and use them
Figure out the game changers, then
track them
Were you disrupted today?
Use Goldfire to research expertise, and
innovate new business models
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Where Are You?
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Where Do You Want To Be?
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
Jim Belfiore, Certified Innovation Master
Sr. Director of Client Innovation and Practices
Invention Machine
Where to Innovate in This Economy
P O W E R T O I N N O V A T E | O C T O B E R 2 5 - 2 7 2 0 1 0 | B O S T O N , M A
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