AC/SL Ike Alisson

ALICON SE – Commercial in Confidence

JtbD

evolved Theory of

Innovation and Disruption

Overview

Ike Alisson

Stockholm

2017- 02 - 27

AC/SL Ike Alisson

ALICON SE – Commercial in Confidence

Table of Contents

1. Theory of Innovation and Disruption (TID) Diagram

2. TID - Summary

3. Incumbent’s ”Disruption” alternative ”Ways of Working”

4. TID evolved – Theory of ”JtbD”

5. ”Innovators” Personality Traits

6. Question(s) to consider

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AC/SL Ike Alisson

ALICON SE – Commercial in Confidence

1. Theory of Innovation and Disruption – Diagram (evolvement over time)

Product

Performance

Time

Higher

Lower

Source: Clayton M. Chr. et al, 2015

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AC/SL Ike Alisson

ALICON SE – Commercial in Confidence

1. ”Disruption” is a PROCESS

- Product/Solution transformation over a period of time

- not a Product/Solution impact at certain point in time

2. Impact on the Business Model(s)

- entrants with ”different” BM

3. Not all ”innovations” - ”disruptive” and succeed

4. ”Disrupt” or ”be disrupted” mantra – can be misleading

- INCUMBENTS – could benefit from a new unit separate from the ”core”

2. TID - Summary

Source: Clayton M. Chr. et al, 2015

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AC/SL Ike Alisson

ALICON SE – Commercial in Confidence

“New Business Unit” to operate separately from the Core Business Unit A. The ”Vision” Portfolio (long-term: 2 – 10 years)

B. The ”Innovation” Portfolio (short-term 2-12 months)

C. The ”Investment” Portfolio (filled-in continously from the Core Business)

Core Business & “Innovations” continuously

- Tested & adjusted,

- Core business evolve

- Core Innovations endure

- Resources shift

- Competencies evolve

- Competitive advantage retained

Establish/Create Process for:

Challenge: Connecting long-term objectives with near/short-term demands

3. Incumbent’s ”Disruption” alternative Ways of Working - 1

Innovations

Portfolio Vision Portfolio Enhancement Update

Knowledge, Innovation,

Competive advantage

Core Business Competitive Gains

Source: Johnson, M. W., 2015

Innovations

Portfolio

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AC/SL Ike Alisson

ALICON SE – Commercial in Confidence

To get ”the right” Venture/New Business Design - benefit from Ways of Working of:

”Start-up” Business - Agility

- Flexibility

- Open for New Ways of Working

- Open for New Business Model(s)

”Establised Core Business” - Product knowledge

- Technology knowledge

- Key Competencies

- Knowledge about the Market

- Knowledge about the Competitors

- Strategic Partnerships Advantage

- Key Customers’ Relationship

- Own capital

- Product brand name reputation

3. Incumbent’s ”Disruption” alternative Ways of Working - 2

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AC/SL Ike Alisson

ALICON SE – Commercial in Confidence

- Theory of ”JtbD” - complementary to ”TID”

- JtbD – ”a roadmap” for where or how to innovate for ”disruption”

- JtbD – new market creation ability

- ”JtbD” focuses on the ”WHY” - the Customer Choice when selecting to buy a Product/Solution

- ”JbtD” – distinction between

- ”Customers” and ”Problems People seek Help to resolve”

- ”JtbD” focuses on the Progress (”a movement towards a goal or aspiration”) in a given

Circumstance a Product, Solution contributes to the Customer’s use & benefit

- ”Progress” shall not be mixed with a ”Need” (could be ”ever present and generic”)

4. TID Evolved - Theory of ”JtbD” - 1

Source: Clayton M. Chr. 2016 book & article

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AC/SL Ike Alisson

ALICON SE – Commercial in Confidence

- Theory of ”JtbD” - complementary to ”TID”

- Customer need(s) & demand(s), ”traditionally” identified through:

- Customer characteristics

- Product attribute(s), advantage(s), improvement(s)

- New technologies

- ”Stack fallacy” and JtbD Theory illuminate the same hazard:

- to mistake the technical know-how with the Customer’s (JtbD) need for Progress

- aware of distinction between ”correlation” & ”causality”, but not avoid mixing it

- ”Main & focal point of Theory of ”JtbD” - ”the circumstance”(context):

- ”what an individual really seeks to accomplish in a given circumstance”

- be aware that the ”Product’s / Solution’s Function” is aligned with ”Social” and ”Emotional” dimension

- the importance of ”context” of the needed progress by the Customer

- ”JtbD” – a specification for innovation – no more guessing on the Customers’ ”will to make a trade-offs”

3. TID Evolved - Theory of ”JtbD” - 2

Source: Clayton M. Chr. 2016 book & article

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AC/SL Ike Alisson

ALICON SE – Commercial in Confidence

Process mapping, design and alignment, is an imperative due to:

- ”successful Innovation” - ability of the Company to

- develop ”set of experiences”

- to successfully integrate those experiences into the Company processes

- address the Customer ”JtbD” through those processes

- remove existing obstacles;

- process ”act as a sort of the subconscious of an organisation” - ”moves you closer” or ”away”

from the ”Customer’s JtbD”

- hinder/stop legacy ways of working and legacy ways of thinking

- align structures, policies, vision with the new ways of working;

- support the Customer’s ”JtbD”

- hard to see/impossible to copy (e.g TPS) ….. takes time

3. TID Evolved - Theory of ”JtbD” - 3

Source: Clayton M. Chr. 2016 book & article

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AC/SL Ike Alisson

ALICON SE – Commercial in Confidence

- Process mapping, design and alignment, is an imperative due to:

- Process Change Flexibility reflecting the change in Customer ”JtbD” over time

(”principle of a modular internal-process structure”)

- process as a competitive advantage when optimised to

- facilitate progress and

- deliver experiences that Customers seek

- Companies succeeding in their Innovation when:

- ”unwittingly” build process that

- ”operationalise” and

- ”churn their mediocracy” of their ”messy”, ”imperfect” and ”unknowable” invention process

- introducing new processes to established organisation(s) is ”very, very hard”, takes time and not to be underrated

3. TID Evolved - Theory of ”JtbD” - 4

Source: Clayton M. Chr. 2016 book & article

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AC/SL Ike Alisson

ALICON SE – Commercial in Confidence

4. ”Innovators” Personality Traits

Source: Clayton M. Chr. et al, 2009

Source: Todd Rose, 2016

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AC/SL Ike Alisson

ALICON SE – Commercial in Confidence

5. Questions to consider

- Is your Ways of Working reflected/aligned with your internal process?

- Do you have a function/person in the organisation Responsible for ”understanding and

ensuring” that the Company delivers to the Customer what is expected?

- What is your Company approach & attitude towards ”helpful Cassandras”?

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