The Map of Innovation

Creating Something out of NothingCreating Something out of Nothing

� Whether you are trying to create something new or innovate within an existing company, the steps are the same – and there is a process that will

Are you sure you want to innovate?

same – and there is a process that will allow you to do it faster, cheaper and better

� Thomas Edison quotes “innovation is 1 percent inspiration and 99 percent perspiration”

� Edison would find a problem and work

Are you sure you want to innovate?

� Edison would find a problem and work his ass off finding the best solution.

� Creating a large number of viable ideas.� Picking the right ides to pursue.� Creating a highly focused strategy to

bring the idea to market.

Fundamental for start innovate

bring the idea to market.� Getting the money to fund the strategy.� Hiring great people to implement the

strategy.

� Genetics; that is, you were born with a willingness to put the ideas into action.

� Timing.� Approach.

Three key factors for innovate successfully

� Approach.

� A way to draw out all possible answers.� A way to narrow the many possible

answers to only a few of the best.� A way to build a consensus.

Brainstorming Prioritization Technique

� A way to build a consensus.

2 questions;� What will the internet look like in three to

five years?� What are the biggest obstacles keeping us

Brainstorming Prioritization Technique

� What are the biggest obstacles keeping us from getting there?

� 3 things to note about how the voting process works:1. People can put only one vote against an idea.

Even if you’re convinced there’s one perfect idea, you can’t throw all of you twelve votes against it. You can vote for it only one.

Brainstorming Prioritization Technique

all of you twelve votes against it. You can vote for it only one.

2. There is no sandbagging. Say you know one idea that you like is going to win. You still have to vote for it. You can’t save that vote and put it toward another idea.

3. You don’t have cast all your votes. Vote only for the ideas that you think have merit. If you have twelve votes but you like seven ideas, then votes for the seven you like. There is a maximum number of votes you can cast, but no minimum.

1. Get the right people in the room.2. Define the problem carefully.3. Spend up to twenty minutes brainstorming, no

discussion.4. Explain and talk about the ideas until everyone is clear

what they are.

BPT Checklist

what they are.5. Combine similar ideas.6. Number the ideas.7. Divide the total number of ideas by three. This is the

number of votes each person gets.8. Only one vote per idea.9. Circle the top three to six ideas. Ignore everything and

begin your research.

“NOW Just Do IT” …the success for any change effort N = need, burning platform for change is

communicated and well understood

O = opportunity, chance of success

W = will of senior management, committed

leadership

Just = justification

DO = need doers, not talkers

IT = information technology

Brain & Opportunity

Innovation DrivenEconomy

Value Creation Opportunity

Less for More

Sweat &Tear

Sweat & Brain

Factor DrivenEconomy

Investment DrivenEconomy

More for More

More for Less

Agriculture Commodity Model

• Tesco Model• Nabisco Model• Starbuck Model

Michelin Model

Subcontracting • LVMH Model De-beer ModelManufacture

Sweat & Tear Sweat & Brain Brain & Opportunity

Subcontracting Model

• LVMH Model• Nike Model• Zara Model

De-beer Model

Labor Intensive Model

• Club 21 Model• Wal-Mart Model

Visa Model

Manufacture

Services

Physical Endowment

ProductDifferentiation

PlatformLeadership

Today, IP asset is the main part of the product, pl aying an important role in value creation

Walt Disney

76%

Nike, Inc

70.9% 76%

93.5%

Merck & Co

93.5%

The design of processes

Images from Professor John Heskett, IWDS conference 2006

One to one Design advice

Customer StrategiesStrategies

Customers are in driver’s seat

� Innovative thinking: How to offer customers something they didn’t know they wanted�Understand how the customers think & do

business (needs, desires, & intentions) &business (needs, desires, & intentions) &�Design our business from outside in (taking

initiative to satisfy them – do not simply focus on internal operations)

� Move beyond customers’ focus –Customers’ Value

Customers’ ValueValue : “What a customer likes & is prepared to

pay for”Dimensions of customer ‘Value’1. Speed 2. Quality3. Cost 4. Convenience3. Cost 4. Convenience

“Marketing + Innovation”= Two basic functions of business that produce

results (creating a customer);all the rests are costs

Peter Drucker

4 Ways to Serve Customers Better by Rethinking the Customer Strategies

Be creative in the ways you…� Add value to your customers

� Decommoditization, New biz strategies

� Hear your customers� Hear your customers� Collaboration w/ Customers + Future Prediction� Influencers > Overall Market Research

� Serve your customers� Review processes: Company’s, Customer’s

� Hire your customers� Customers to serve themselves

Creating the Future� Since the future is hard to predict,

perhaps the best way to Control your destiny is to Create your own Future

� Customers do not always know what � Customers do not always know what they want:� Sony walkman, CNN 24hr. – the need didn’t exist: it was created

Establishing an innovative environment and propagating this virtuous circle