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The challenge of innovation presentation notes

  1. 1. The challenge of innovationParis March 20th 2012Dr. Michael Ohler, Principal BMGI EuropeAnthony Shingleton, Principal BMGI EuropeMichael.Ohler@bmgi.comAnthony.Shingleton@bmgi.com 1
  2. 2. Content One shared understanding of innovation? Failure to innovate versus ... Failure to stay with the current paradigm Breakthrough from inside and outside „the box“ „Learning to see“  Job-To-Be-Done  Outcome Expectations  The Four Growth Quadrants Deploying the „creation of novelty“ 2
  3. 3. One shared understanding of innovation? 3
  4. 4. What is your understanding ofinnovation? Note your understanding of innovation on a sheet of paper or post-it note:  Legibly  No more than 1-2 sentences 2 minutes 4
  5. 5. News from early this year From: The Economist, Jan 21st 2012 5
  6. 6. Creating future business:Can we beat the odds? Current Business Future Business 80% of all venture capital investments fail >90% of companies fail to sustain above-average shareholder return for longer term 75% of all new products fail that established companies put into their markets (*). (*) D. Leonard-Barton, “Wellsprings of Knowledge” HBS Press, 1995). 6
  7. 7. Yahoo! - or failure to stay with the„Search engine paradigm“ 10th of July 2008 Allen & Co Conference. Source: 7
  8. 8. Kodak – or the failure to innovate Managing CreatingCurrent Business Future Business 8
  9. 9. Breakthrough from “inside the box”:The circular saw market 9
  10. 10. Systematic approach to the identifiction of customer needsCircular saw - outcome expectationsMinimize the cost due to cord cutsMinimize the amount of debris thrown up into the user‘s faceMinimize the blade guard snagging the material when cutting at any angleMinimize the frequency of kickbacksMinimize the amount of times the cut line is blocked from view and can not be seenMinimize the strain that builds on the wrist during useMinimize the number of cuts that can be made with a single bladeMinimize the time it takes to make adjustments that can be madeMinimize the frequency with which the end plug gets caught on the material... 10
  11. 11. Definition of the strategy throughopportunity analysisHow satisfied are you with your current ability to... Ready for Disruption Right served Under-served How important is it for you to... 11
  12. 12. Breakthrough ideas from inside theparadigm focused on customer needs Direct Connect cord Footplate with smoother glide Fast bevel and depth adjustments 12Debris directed away from user Blade guard for dust exhaust Hook to hang saw
  13. 13. Double-digit Change in CustomerSatisfactionBased on historical data, most successful new products and servicesintroduced in a core market improved the satisfaction levels ofunderserved outcomes by 5% to 10%. In contrast, a breakthroughconcept – one that will stand well out in front of current products andlikely take on a market leadership position – typically improvessatisfaction levels by 25% or more. Bosch circular saw increased levelof satisfaction by 38% [i.e., 87% / 63%] making it a breakthroughproduct. 13
  14. 14. Breakthrough from outside the paradigm Carbon Monoxide as bio-marker and therapeutic agent 14
  15. 15. Breakthrough from outside the paradigmAccording to the patent(Choi and Otterbein 2010):“… It has unexpectedly beendiscovered that the delivery ofa therapeutic gas comprisinglow concentrations (…) ofcarbon monoxide is anextremely effective method fordelaying the onset of,inhibiting or reversing theeffects of oxidative stress in apatient. This is an unexpectedresult… ”. 15
  16. 16. Companies do have great systemscapturing the Voice of the customer!…. But … 16
  17. 17. The trouble with the„Voice of the Customer“How the customer How the project leader How the engineers How the programmer How marketing explained it understood it designed it wrote it promoted itHow the project How the consultants 17 How the customer How it was What the customerwas documented proposed installing it was billed supported really asked for
  18. 18. Today‘s solution to a problem is the past -Therefore, the VOC is yesterday‘s voice If I had asked customers what they wanted, they would have asked for a faster horse. Henry Ford The Ford Motor Company 18
  19. 19. Stable concepts for capturing people‘s needs:Job-To-Be-Done and Outcome Expectations Manage personal finances at home Action verb Object of action Contextual clarifier Clean clothes at home Maximize the accuracy while managing personal finances Direction verb Attribute of object Contextual clarifier Minimize the time it takes to clean clothes at home 19
  20. 20. Capture your growth strategy: The Four Growth Quadrant CONSUMER NON-CONSUMER Core Market Growth Disruptive GrowthCURRENT JOB - Clearly understand the JTBD - Understand barriers for non- - Include social & emotional jobs consumption (price, access, …) - Identify un-met Outcome Expectations - Understand the higher-level JTBD (can we make the original JTBD obsolete?) Related Market Growth New Market Growth - Understand what people do before, - List all the capabilities of the companyNEW JOB during and after getting the original job - Which new jobs (that are poorly done? satisfied today) can be done with these capabilities? 20
  21. 21. Extracting Jobs to be done andOutcome ExpectationsThe Chulha Stove 21
  22. 22. Classification of new products,services, processes biz-models Study the examples in your handout materials Classify them according to the Four Growth Quadrants 10 min De-brief in the entire class 5 min 22
  23. 23. D4 roadmap for the creation of novelty:Repeatable, teachable, deployable Concepts available Opportunity „Plastic“ understood prototype 23
  24. 24. BMGI‘s roadmap for „deployment of X“:The creation of novelty can be deployed! ALIGN DESIGN DEPLOY SUSTAIN Deployment Project Financial Stakeholders Plan Selection Results Strategic Competency KPI Infrastructure Objectives Development Improvement Structured Deployment Programme Leadership Problem Strategy Management Development Solving Review Review Review Review 24
  25. 25. How ambidextrous is your organisation? Sustainable growth Execute today’s biz Create tomorrow’s biz Predictable I/O relations  Cause/effect uncertainty Governed by KPIs  Governed by experiments Accountability for  Accountability for results action & learning 25
  26. 26. Sustainable growth creates conflictsinside the organisation Sustainable growth Operate Shared Staff Leadership 26
  27. 27. How to create an „innovation mindset“?Interview withVijay Govindarajan: 27
  28. 28. Thank you! Questions and Answers: 28