1
© 2010 Invitro Innovation
All rights reserved.

Written by Angela Koch
Director of Innovation Strategy
Invitro Innovation
...
How to Use this Innovation Guide


Dear Learners,

This work book is intended as follow-on from the Invitro Product Innova...
Contents


 I          Innovation for Marketing


 II    10 Lessons in Marketing Innovation


III       The 5 Step Innovat...
INNOVATION FOR MARKETING


        “Innovation…is applying knowledge to a real problem and taking an idea to market.
     ...
Growth occurs when a firms offers its customers new products or services or finds new users for older prod-
ucts and servi...
Product innovation involves the introduction of a new good or service that is new or substantially improved.
This might in...
Category Innovation
This innovation is so significant that it effectively changes the rules of the game in the category. S...
When a brand needs to add something or change the formula of a product a true product innovation is born.
This is only wor...
Ideally the product idea or concept as it is called in an innovation context should be:
- Unique or differentiated
- Simpl...
10 Lessons in Marketing Innovation

These are some principles we believe are invaluable for getting behind a Marketing Inn...
Lesson 1 Innovation Requires an “In Vitro” Environment
Innovation is more a creative rather than strategic process. The na...
Lesson 6 Make Inspiration a Discipline
Understanding problems and opportunities is half the task, the other half is openin...
The 5 Step Innovation Process


Whenever a brand is searching for new product or marketing innovation ideas to implement, ...
Step 4: Idea Screening – The nature of ideation sessions is that we generate a lot of ideas, not all of which
will be of a...
BRAND AS INNOVATION ANCHOR



A strong brand bridges the gap between who you are and what others believe. Functioning as b...
Whatever the Brand Equity Model your company uses, it‟s important that the overall Brand Essence or Equi-
ty and the key b...
Design Theme:

    –   A metaphor that defines the aesthetic direction of the brand.
    –   A tool for ensuring the brand...
A good Brand Equity from Whisper / Always femcare.




                                                19
STEP 1: FOUNDATION WORK


Preparation for innovation is the most critical step in the process. This is where the brand iss...
This chapter will address the first 3 foundation work items. The Human Lens will be covered in the next
chapter.



      ...
2. The Competitive Lens             – The Competitive landscape

A good starting point is to map the competitive landscape...
CONSUMER KNOWLEDGE


Much of the foundation work serves to orientate the innovation team around understanding the world as...
1. Existing Research

If your brand has a history of qualitative and quantitative research then it would be a good startin...
R&D Possibilities: If you have an R&D function, ask them to share any interesting technologies they
  have come across. Th...
Broad Shifts and Trends: Scanning for broad trends, these can be found by looking at free sources such as
Trendwatching.co...
An experience mapping exercise
conducted for the paint category
revealed that the consumer was
expecting the retail enviro...
FRAMING INNOVATION CHALLENGES

Even if you are not concerned with strategic innovation, the need still exists to frame cha...
The answers to these and similar questions then can be used as triggers for specific challenge state-
ments. For instance,...
IDEA GENERATION


Where do ideas come from?

Some ideas seem to appear out of thin air, they come to us when we are in the...
An Ideation Event can take many forms but mostly includes:
    - A group of people who have a vested interest in quality i...
Ideation Session Guidelines
        1.      Treat each other with respect.
        2.      Be supportive of each other's i...
A Two day Ideation Event

         Although smaller ideation requirements can be achieved with a half day or full day sess...
Sample Agenda - Day Two (9am – 5pm)
   9.00          Warm Up and recap of Day 1 progress
   9.30          Round 3 of Ideat...
1. Forcing Connections

   It helps to spend some time generating consumer inspiration




       For Example: Laundry Det...
THINK: If I replicated this exactly for my brand, how would it work?
How would this work if I replicated the „spirit” of t...
3. Engineered Provocations

  Free-wheeling techniques designed to break away from assumptions.
4. Random idea generation techniques

    There are a bunch of generic creativity tools that will also work for Product an...
DEVELOPING & EVALUATING IDEAS



There are 3 Key Idea Evaluation or Testing phases:

    1. Internal Idea Headline Evaluat...
Internal Idea Headline Evaluation

At a first stage idea evaluation it is useful to use a PLUSES, POTENTIALS, AND CONCERNS...
The Evolution of an Idea


         Phase 1: Post-it Idea Headline                     Phase 2: Flip Chart Full Concept


...
Quantitative “Idea Headline with consumer promise” Test with Consumers

This testing stage with consumers is sometimes cal...
Qualitative Consumer Exploration of Strongest Ideas

As companies move their product ideas through the innovation pipeline...
Guidelines for Writing Concepts

   Check that the concept is single-minded.
   Make sure the concept is consistent with...
IMPLEMENTING IDEAS


At its most basic level, implementation is a creative problem solving process. A gap exists between W...
Overcoming Resistance to Change

  1) Involve other people in the entire problem solving process

  2) Be specific about t...
Implementation Techniques

It‟s important to provide some structure to the implementation activities to ensure timely exec...
Ideas Must Translate Well into Marketing Communications

Poor concepts show their true colours at implementation, as teams...
OPEN INNOVATION AND IDEA MANAGEMENT



What is Open Innovation?

The central idea behind Open Innovation is that in a worl...
A History of Open Innovation

While closed innovation has been the way most companies have operated and we think of Open
I...
Level Zero or closed innovation is where R&D drives all aspects of idea generation and execution.

Level 1 open innovation...
Beyond FMCG:

   -   BMW Customer Innovation Lab
   -   LeadUsers.nl & Live Simplicity - Philips‟ crowdsourcing platforms
...
It‟s important for open innovation programmes to put feedback mechanisms in place so that strong
ideas which are selected ...
STARTING AN INNOVATION PROGRAMME
                        FROM TODAY

Here are a few tips for kick-starting Innovation in y...
2. Educate and Inspire

Inspire others with what Innovation can achieve:
    Spreading the innovation message across the ...
3. Create Opportunities for Participation

Lead an innovation event for your brand or category; invite everyone who would ...
About Angela Koch

Angela is a South African trained marketing and brand specialist who has spent the past 9 years
working...
Inciting Ideas: Innovation Handbook by Angela Koch
Inciting Ideas: Innovation Handbook by Angela Koch
Inciting Ideas: Innovation Handbook by Angela Koch
Inciting Ideas: Innovation Handbook by Angela Koch
Inciting Ideas: Innovation Handbook by Angela Koch
Inciting Ideas: Innovation Handbook by Angela Koch
Inciting Ideas: Innovation Handbook by Angela Koch
Inciting Ideas: Innovation Handbook by Angela Koch
Inciting Ideas: Innovation Handbook by Angela Koch
Inciting Ideas: Innovation Handbook by Angela Koch
Inciting Ideas: Innovation Handbook by Angela Koch
Inciting Ideas: Innovation Handbook by Angela Koch
Inciting Ideas: Innovation Handbook by Angela Koch
Inciting Ideas: Innovation Handbook by Angela Koch
Inciting Ideas: Innovation Handbook by Angela Koch
Inciting Ideas: Innovation Handbook by Angela Koch
Inciting Ideas: Innovation Handbook by Angela Koch
Inciting Ideas: Innovation Handbook by Angela Koch
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Inciting Ideas: Innovation Handbook by Angela Koch

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A 80 page book written by Invitro Innovation's Chief Ideas Facilitator Angela Koch.

A simple step by step guide for Marketers for fuelling Product and Marketing Innovation.

This book is available as an e-book for SGD9.00

http://www.invitroinnovation.com/products-page/

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  • Thanks to Asad Ali Shah who paid with a tweet, this doc is available for download for the next 24 hours!
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  • Angel, this is a good presentation ( even though i was able to read only the transcript, because my INTERNET band with is low) please can you send a copy of this awesome book with the details to me please, am just starting out in this field of innovation and creativity. thanks for helping me grow. my email is = creativityschool2012@gmail.com . once again, thank YOU
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  • Hi Kim, is available for hardcopy purchase through me. Payment by paypal is USD 12 plus regular airmail postage (another USD 10). Write to me at angela.koch@invitro.com.sg if you wish to proceed.
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  • I would love a copy of this - is it available for download/purchase?
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  • Hi Katharine, you can purchase a copy for USD12.
    Drop me an email at angela.koch@invitro.com.sg if you are interested.
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  1. 1. 1
  2. 2. © 2010 Invitro Innovation All rights reserved. Written by Angela Koch Director of Innovation Strategy Invitro Innovation angela.koch@invitro.com.sg 2
  3. 3. How to Use this Innovation Guide Dear Learners, This work book is intended as follow-on from the Invitro Product Innovation Training. It provides a refresher to material shared in the training session and a step by step guide on how to implement modules in your day-to-day job as innovators. This Innovation Guide is intended to be a companion to the Innovator when embarking on an inno- vation initiative. Please do write to me if you have any ideas for future additions to this guide. Happy Innovating! Angela Koch Director of Innovation Strategy Invitro Innovation angela.koch@invitro.com.sg 3
  4. 4. Contents I Innovation for Marketing II 10 Lessons in Marketing Innovation III The 5 Step Innovation Process IV Brand As Anchor V Foundation Work VI Consumer Knowledge VII Framing Innovation Challenges VIII Idea Generation IX Idea Evaluation & Development X Idea Implementation XI Open Innovation & Idea Management XII Starting an Innovation Programme 4
  5. 5. INNOVATION FOR MARKETING “Innovation…is applying knowledge to a real problem and taking an idea to market. There may not be any customer in mind during a process of discovery and invention, but a customer is critical to the process of innovation.” Henry Chesbrough, the father of Open Innovation A. What is Innovation? An increasing amount of attention is being paid to innovation as an important concept to generate organic growth for many companies. Unlike idea management or invention, we think of innovation as the entire process from the initial concept or idea until that concept has been evaluated, prototyped and launched as a new product or service. Innovation is putting ideas into valuable action. Innovation is not a new concept – businesses have attempted to differentiate in the past on innovative tech- nologies, services or marketing. Much of this focus on innovation faded as firms sought to reduce costs through outsourcing, rather than committing to innovation as an ongoing differentiator for their business. With the advent of global markets and free trade movements, many firms are faced with few competitive options. Most companies can no longer compete on price, and frequently cannot differentiate on product quality as second and third world manufacturers achieve parity on these attributes. These factors have led to increased outsourcing and “right sizing” of firms... But this approach has a logical limit – a firm cannot shrink its way to greatness. At some point, in order to generate more profits and revenue, a firm needs to grow. 5
  6. 6. Growth occurs when a firms offers its customers new products or services or finds new users for older prod- ucts and services. One of the key sources of organic growth left to many firms in is through innovation. As Gary Hamel wrote in “Innovation Now!” for Fast Company: “Competing today comes down to a leadership gut check, where the first order of business is to admit that the boom-time 1990s were a once-a-century aberration. During the past dec- ade, share prices were propelled deliriously upward by five manic forces: a huge run up in IT investment…baby-boomer money fed into the stock market…round after round of cost cutting…a worldwide merger boom and a record number of share buybacks. While those forces may have buoyed the performance of your company in recent years, you must now con- front a daunting fact: things that can‟t go on forever don‟t go on forever. Those forces are spent. Going forward, your only weapon is systemic, radical innovation. In these suddenly sober times, the inescapable imperative for every organization must be to make innovation an all-the-time, everywhere capability. Clearly, innovation – generating new ideas and moving them through a systematic evaluation process to create new products and services – is a fundamental driver for organic growth, differentiation and long term profitability. In fact innovation is one of the few avenues left for revenue growth in mature industries. B. Types of Innovation at Enterprise Level From an overall business perspective Innovation comes in many forms: Business Model innovation involves changing the way business is done in terms of capturing value e.g. Compaq vs. Dell, hub and spoke airlines vs. Southwest, and Hertz/Avis vs. Enterprise. Organizational innovation involves the creation or alteration of business structures, practices, and models, and may therefore include process, marketing and business model innovation. Process innovation involves the implementation of a new or significantly improved production or delivery method. Supply chain innovation where innovations occur in the sourcing of input products from suppliers and the delivery of output products to customers. Marketing innovation is the development of new marketing methods with improvement in product design or packaging, product promotion or pricing. 6
  7. 7. Product innovation involves the introduction of a new good or service that is new or substantially improved. This might include improvements in functional characteristics, technical abilities, ease of use, or any other dimension. Service innovation is similar to product innovation except that the innovation relates to services rather than to products. Illustrative example: Financial innovation occurs as new financial products and services are developed, combining basic financial attributes (risk-sharing, liquidity, credit) in innovative ways, as well as exploiting the weaknesses of tax law. To address problems or capitalise on opportunities, new financial products and services are developed, new business models emerge, and business processes are adapted and improved. Financial innovation, therefore, may be seen in general to involve most of the above mentioned types of innovation. C. Types of Innovation Marketers can influence Broadly Marketing and Product or Service Innovation is simply the introduction of new concepts or ideas to market. The degrees of new-ness or significance of the innovation may vary depending on the business ob- jectives. It is useful to see Innovations as being broadly of 2 types: - Product/ Service Innovation o Ones that require resources to make a change to the offering (New Product or Service Inno- vation). - Commercial/ Marketing Innovation o Ones that create an impression of newness however do not require much in the way of re- sources to create the “new” initiative. This 9 box matrix shows degrees of product newness and market newness: 7
  8. 8. Category Innovation This innovation is so significant that it effectively changes the rules of the game in the category. Some of the most notable category innovations include: - Hotel Formule 1 which transformed the budget hotel category - The ATM which transformed our relationship with banks (no single bank brand owns this innova- tion) Innovation Nirvana There are plenty of opportunities to transform the consumer experience through elements such as design without significantly changing the base product. Help I Need Help has created a range of consumer remedies using well designed packaging to simplify the everyday drug purchase. Many other categories such as chocolate, wines, tea etc, have been transformed in the same manner. Ideal Commercial Innovation Where no or limited changes are made to an existing service or product. Within services the marketers may simply create a new bundled offering to create something fresh for the market as UOB Bank did with their Lady‟s Card credit card. For products, this often requires a packaging change to signal the newness as Tide did with their “Coldwater” offering. The product formulation often remains unchanged. True Product Innovation 8
  9. 9. When a brand needs to add something or change the formula of a product a true product innovation is born. This is only worthwhile when the perceived newness and benefit to the consumer is apparent. When Lay‟s introduces Lay’s Light with a claim of half the usual calories we might expect that they have had to change the way they manufacture their crisps. It all likelihood this has involved significant R&D investment to achieve this claim. Of course if these are simply their “baked” products repackaged then this would be a commercial innovation. The Tide On-the-Go product offers a radically new way to remove stains on the go. The product does not use conventional laundry detergent and water to clean, but uses a stain dissolving substance applied by “pen” application. Now this is not designed to change the way we do laundry but is a handy complementary prod- uct. Line Extensions Line Extensions are the least risky of new product introductions, they tap into the success of existing prod- ucts and refresh a line up with new flavours, fragrances and so forth. They are particularly important in categories where consumers like news such as in snacks, beauty care, fashion and consumer electronics. The challenge with line extensions is for them not to simply cannibalise existing revenue. For example a Lays Cucumber flavor launch may bring new users into the potato crisp category whereas “fillet mignon” may simply cannibalise “BBQ” or “Fried Chicken”. D. Ideas at the Heart of Innovation Behind every product or service launched should be an idea which can be clearly and simply articulated. While the component parts of the offering may be many, but at the heart of the product should be an idea, which wraps up the component parts to create an experience for the consumer. The idea should be able to be articulated in a simple idea headline: Lays Light – All the pleasure of Lays with half the calories Bank of America “Keep the change” – Every credit card spend puts spare change in your pocket Tide with Green Tea – Deodorises as it detoxes your laundry clean Crest Overnight– The toothpaste left in your mouth continues to fight bacteria while you sleep. The Idea Headline should create sufficient understanding to create interest and even desire to know more about HOW the product works or delivers any claims made. 9
  10. 10. Ideally the product idea or concept as it is called in an innovation context should be: - Unique or differentiated - Simple - Easy to communicate - Include an experiential component Weak Ideas: Panaflex Patch – Pain relief patch which quickly relieves back and joint pain with its Activ Glycol Sal Formula. Unique or differentiated - NO, relies on the magic ingredient to create uni- queness Simple – clumsy with substantiation Easy to communicate - NO Include an experiential component – NO Product Package POS Material 10
  11. 11. 10 Lessons in Marketing Innovation These are some principles we believe are invaluable for getting behind a Marketing Innovation Programme: Lesson 1 Innovation Requires an “In Vitro” Environment” Lesson 2 Make Innovation continuous and routine Lesson 3 Innovation is no surrogate for brand clarity Lesson 4 Innovation is a team sport Lesson 5 Engineer the Process Lesson 6 Make Inspiration a Discipline Lesson 7 Get centered on your customer Lesson 8 Question All Assumptions Lesson 9 Engage both left and right brain Lesson 10 Innovation is Serious Play 11
  12. 12. Lesson 1 Innovation Requires an “In Vitro” Environment Innovation is more a creative rather than strategic process. The nature of the work demands that it be se- parated from routine or highly pressured work, which tends to be the bulk of our work lives. It is recommended that business teams create innovation days which create an environment conducive to nur- turing ideas. Lesson 2 Make Innovation continuous and routine Much innovation just happens, someone has an accidental spark of brilliance and the seed to an innova- tion is born. The problem is, not enough quality innovation happens this way. Many great innovators such as Google, P&G and Philips have developed processes to make innovation routine rather than an ac- cidental occurrence. To make Innovation routine you need to plan for it. Consider holding a bi-annual 2 ideation session where you bring all key stakeholders for your brand together to imagine new products and ideas to solve business problems. Lesson 3 Innovation is no surrogate for brand clarity When brands lack a strong brand idea, innovation can sometimes be used to drive consumer interest. This is particularly true in the fashion and beauty categories where news is important to the consumer. When a brand lacks a clear brand anchor innovation can be haphazard and potentially confuse the consumer. First seek brand clarity, this will then help inform what kind of innovation can build rather than undermine the brand. Lesson 4 Innovation is a team sport Innovation ideation thrives on the multi-disciplinary talents required to bring a new product to market. The mix of R&D, manufacturing, sales, consumer marketing and finance brains create a stimulating and divergent ideation environment where the skills, priorities and distinct frames of reference create the kind of tension required for innovation. Lesson 5 Engineer the Process Ideation is about leading people towards creative solution finding. In order to do this, people need to be armed with problem understanding, have a rich profile of the target consumer, plenty of inspiration and a flexible set of techniques to creatively imagine solutions. Having a proven framework and doing plenty of preparation is essential to a productive ideation session. 12
  13. 13. Lesson 6 Make Inspiration a Discipline Understanding problems and opportunities is half the task, the other half is opening up innovation possi- bilities, and this can only happen with stimulus to spark ideas. Stimulus or inspiration can take the form of new consumer knowledge, immersing yourself in what‟s new on your consumer‟s world, or watching what‟s happening in adjacent and unrelated categories. Keep an inspiration log or file which you can mine from time to time. Lesson 7 Get centered on your customer Where do you go looking for new ideas? While scouring the world for new trends and technology can help inspire new ideas it‟s important that ideas solve a consumer problem or opportunity. A good starting point is to immerse the team in consumer understanding. This could take the form of a consumer field trip or simply to review current consumer intelligence. Exercises which help bring the target consumer into sharper view are always a good anchoring point to ideation. Lesson 8 Question All Assumptions Many product categories have unwritten codes of practice, or generally accepted ways of presenting their products to the market. It‟s only when we are prepared to interrogate every aspect of the brand experience that we can uncover that some choices may not be delivering the value intended. It‟s possible that an innovation breakthrough can happen when category assumptions are over-turned to create consumer value. Lesson 9 – Engage both left and right brain Some good brand and product ideas are as a result of regular analytical approaches. Consider a solution such as portion packs in the snack market, which are a remedy to snacks going stale. While left brain so- lutions have value, it‟s the more right brain approaches which are likely to result in breakthrough thinking. Right brain styled creativity must be encouraged for teams to give birth to uncommon solutions to problems and opportunities. Lesson 10 – Innovation is Serious Play The play aspect of innovation happens on 2 levels. Firstly, creativity requires that we are relaxed to be our most creative. Secondly, it‟s important to make ideas as tangible as possible. This can be achieved through collage making, drawing or even building a 3-d product prototype to help others understand what we mean. Nothing sells a conceptual thought more than a visual representation of the idea. 13
  14. 14. The 5 Step Innovation Process Whenever a brand is searching for new product or marketing innovation ideas to implement, it is imperative to adopt a formal Innovation Process to ensure that innovation is grounded in solid business fundamentals rather than generating innovation for new-ness sake. There are 5 critical steps to follow towards new product introduction. Step 1: Foundation Work, the most critical step in the process which anchors all innovation activity in an understanding of the weaknesses of the business and the opportunities innovation can capitalize on. Step 2: Consumer Knowledge, while the collection of data on key consumer markets should be a year round activity, innovation demands that we organize that information into insight for teams to use as inspira- tion for new ideas. Step 3: Idea Generation should ideally be concentrated into intense ideation sessions over the year. These can be highly informal or formal. The key is to arm idea generators with direction (foundation work) and insight (consumer knowledge) in order to generate “on-brief” ideas. 14
  15. 15. Step 4: Idea Screening – The nature of ideation sessions is that we generate a lot of ideas, not all of which will be of any value. A key skill for marketers to develop is to be able to sift the great ideas from the aver- age. Some level of idea screening will occur within an ideation session. Step 5: Implementation – This involves taking the strongest ideas as evaluated by consumers and starting to prototype these ideas for in field test marketing and then putting all the marketing elements together to ensure the idea is maximized. It is advisable to assemble a Multi-functional Team to manage the 5 Step Process Some Key Roles within an Innovation Team - Team Leader - Sponsor (financial ownership) - Consumer Knowledge and Testing - Workshop/ Ideation Facilitator - Project management - Production representative 15
  16. 16. BRAND AS INNOVATION ANCHOR A strong brand bridges the gap between who you are and what others believe. Functioning as both map and compass. This is particularly important when deciding where innovation is required and how innovation might more the brand forward. The key questions a brand‟s equity needs to help answer are: - Which aspect of the brand could use help in the form of innovation (i.e. where are we weak?) - What are the specific brand building blocks we can use as inspiration for innovation work? - What types of innovation do not fit our brand? It goes without saying that before embarking on formal innovation the brand requires a clear Brand Equity. There are many models for stating brand equity; it‟s even called many names such as Brand Positioning or Brand Architecture or Brand Pyramid. The type of model is not important, what is important is that it clearly communication the brand to internal stakeholders. 16
  17. 17. Whatever the Brand Equity Model your company uses, it‟s important that the overall Brand Essence or Equi- ty and the key brand supports or building blocks are central to innovation. A brand equity model example: Overall Brand Equity: – Captures the single-minded idea of what you want the brand to stand for in the target‟s heart and mind versus competition. – It should be inspirational, memorable and a crisp articulation of what drives consumer preference. Building Blocks: – Captures the few, key aspects of the brand that build the Overall Equity and therefore drive con- sumer preference. – Includes benefit equities (what the consumer gets for using the brand), reason-to-believe equities (the evidence supporting the benefit equities) and the brand character (the brand‟s personality). 17
  18. 18. Design Theme: – A metaphor that defines the aesthetic direction of the brand. – A tool for ensuring the brand presents a cohesive, holistic face to the consumer. – Provides multi-sensory (visual, textual, scent, etc.) direction for all touch-points including advertis- ing, packaging, product development, in-store and all other places where the brand is presented to the consumer. – The glue that holds the brand experience together, ensuring all consumer touch-points are cohesive. – Like the Overall Equity and the Brand Character, it is enduring. However, specific executional elements from the theme will evolve over time. Equities Consumers Experience: – Includes the few key elements consumers see/experience, which we want to use consistently over a long period of time. Those chosen should communicate, distinguish and reinforce the brand equity to the consumer (e.g. – Golden Arches for McDonalds). – Can consist of key visual and auditory elements from the product experience and advertising as well as brand-specific graphic elements, colours, scents and sounds. In multiple brand portfolios in a category the Brand Equity becomes very important in apportioning innova- tion ideas to brands. For example: Pantene Hair Shampoo is about using science to create healthy beautiful hair. The following ideas may be good hair care ideas, but a poor fit with Pantene: - Pantene with yoghurt conditioning for healthy smooth hair (wrong ingredient) Better fit with Rejoice - Pantene fruit bust for lively hair (wrong benefit) Better fit with Clairol Herbal Essence If your brand does not have a Brand Equity documented, then make this Step 0 in the now 6 Step process. A Brand Equity should reflect the strategic choices you have made to take your brand into the future. It should reflect a strong, differentiated position for your brand. 18
  19. 19. A good Brand Equity from Whisper / Always femcare. 19
  20. 20. STEP 1: FOUNDATION WORK Preparation for innovation is the most critical step in the process. This is where the brand issues direct where innovation can help the business. Get this wrong an you are innovating for the sake of it. All innovation should address a pressing issue for the brand. There are 4 areas to survey or lenses to look through that encompass the foundation work: 1. The Future Lens The changing Macro environment and implications for the future 2. The Competitive Lens The Competitive landscape 3. The Brand Lens Key Strengths to exploit and Weaknesses to overcome 4. The Human Lens What is the Consumer relationship with the brand or category? 20
  21. 21. This chapter will address the first 3 foundation work items. The Human Lens will be covered in the next chapter. Foundation Work Summary 1. Future Lens - What trends and opportunities can drive our future? As a way of example, consider the F&N Foods aLive Brand – They noted that Asian consumers where opening up to western styled healthy foods such as breakfast cereals, dairy products and health bars. Most of the offerings in this space were provided by Western food companies who did not un- derstand Asian tastes. They also observed that people were becoming more health conscious while seeking greater convenience. aLive therefore focused their product innovation in the “healthy con- venience” area with emphasis on convenient on-the-go packaging and portion packs.
  22. 22. 2. The Competitive Lens – The Competitive landscape A good starting point is to map the competitive landscape from a category perspective and then to repeat the exercise from a broader consumer perspective. Example: Asian Airlines 3. The Brand Lens – Key Strengths to exploit and Weaknesses to overcome It‟s important to understand what the brand is capable of achieving based on the capacity and resources available. Also does the brand have a right to succeed in a particular innovation space? For example, does Frito-Lay (snacks) have the right to enter the lemonade category? What is it about their brand reputation or expertise that makes this a natural choice for them? Their understanding of the youth market was insufficient legitimacy for them to enter such unfamiliar territory.
  23. 23. CONSUMER KNOWLEDGE Much of the foundation work serves to orientate the innovation team around understanding the world as it is. The Consumer Knowledge component also provides a snapshot of the brand vis- a-vis the consumer but the most important role of Consumer Knowledge is to serve as Inspiration to the idea generation team. To ensure a batch of quality ideas are arrived at, it is important to give participants quality inspiration. In product innovation, inspiration takes the form of new INSIGHT. Insight is not just any information about the target or the category, true insight is a deep new understanding that leads to Action. Everybody has heard of déjà vu, it's the distinct feeling you've been somewhere before. When you go out to do field work in Insight mode, you should aspire to the opposite: a state of mind called "vuja de." Vuja de” was coined by comedian, George Carlin, this happens when you enter a situation you've been in a thousand times before, but with the sense of being there for the first time. As French novelist Marcel Proust said, "The real act of discovery consists not in finding new lands but in seeing with new eyes." So if you want to find untapped innovation opportunities, watch the world around you with "fresh eyes." Where can you go to find this Consumer Knowledge Inspiration? There are a multitude of sources, some of which are already sitting within existing research files; other insight will require some extra digging.
  24. 24. 1. Existing Research If your brand has a history of qualitative and quantitative research then it would be a good starting point to collect all research reports (no matter how old) and attempt to summarise key findings. Your aim is to condense what can be a huge volume of information into a one-page summary of key In- sight. For example a year‟s worth of brand tracking data may reveal things such as: - The brand performs well on emotional values such as popularity, is modern, makes me feel good, however, is weak on functional performance and therefore is not competitive on value. - This insight helps direct innovation towards: performance and perceived value. 2. Category Digging Explore Adjacent Categories: Look within your category for new and interesting ideas and look at ad- jacent categories. Don‟t limit your search to your geography. It‟s useful to draw up a list of adjacent categories to your own and explore what‟s new there. An ice-cream innovation team might explore: The soft drinks category, confectionary, mints and chew- ing gum. Go Shopping: If you are able to buy a sample of a product all the better, nothing like a physical product for people to explore and play with during ideation.
  25. 25. R&D Possibilities: If you have an R&D function, ask them to share any interesting technologies they have come across. The key is to get them to talk in clear, plain language so that non-technical team members can process the inspiration. Get R&D to list the technologies in the following format: Technology Name: Consumer Benefit: Picture of it: Possible Applications: How it Works 3. Talk to Experts An often overlooked and very potent source of insight and fresh perspective is to talk to people who have a particular expertise or knowledge of the category or consumers you are targeting. A confectionary brand wanting to find ideas for a healthier treat might talk to: - A dietician or nutritionist - A fashion editor - A Personal Trainer - A Doctor - A Retail Manager of a clothing store for larger women One option is to talk to them individually through depth interviews; another option is to bring them all together to enjoy a discussion on the topic of “Female Obesity”. 4. New Target Learning Extreme Users: We usually talk to the same set of core users we want to understand consumer needs, attitudes and behaviours. Sometimes when you are looking for a fresh stream of marketing ideas it pays to talk to the “wrong people”. These are people who may use your product at least occasionally or even in a non-traditional way. For example: A laundry detergent may choose not to talk to housewives but rather talk to people who get very dirty or who make a living from cleaning: a chef, a hotel laundry manager, and so on.
  26. 26. Broad Shifts and Trends: Scanning for broad trends, these can be found by looking at free sources such as Trendwatching.com, Springwise.com and PSFK.com. The key is to package findings into actionable find- ings. An interested way to may trends real is to create “Headlines from the Future”. Emergent Passions: What are people into, how are they spending their time and money? Observe the target: Simply observe the target in their everyday life, while interacting with your category or brand. This will speak volumes over what a consumer might say in a focus group. A bank might simply watch people as they queue up to transact at an ATM, or how people navigate the processes in a bank branch. How do they look, comfortable or irritated, confused or familiar with pro- cedures? By simply watching you can see opportunities to improve your product or service. For product offerings with a significant service offering (which would include all high involvement re- tail purchases) there is value in expanding the “Observe the Target” consumer learning and conducting a full Consumer Experience Mapping exercise. 5. Experience Mapping The objective of Experience Mapping is to walk in the shoes of the consumer as they start to interact with our category, from need identification, through to pre-purchase research, the actual buying of the product or service to consuming and post-consumption activities. By mapping the consumer experience through the full purchase journey, pain and pleasure points in the journey can be identified; the pain points are opportunities for the brand to innovate.
  27. 27. An experience mapping exercise conducted for the paint category revealed that the consumer was expecting the retail environment to both educate and help them to make the right colour choices for their paint purchases. However a review of the retail ex- perienced shows that the retail environment is dedicated to show- case paint product types and educating on their purpose and the space apportioned to colour choice was more an afterthought. A huge opportunity for innovating. Think of your service or retail experience and try identify what the pleasure and pain points are in your category? Now how might you convert pain points into opportunities to innovate?
  28. 28. FRAMING INNOVATION CHALLENGES Even if you are not concerned with strategic innovation, the need still exists to frame challenges for produc- tive idea generation. Innovation challenges at any organizational level should be relatively open-ended and target an explicit objective such as increasing product sales. A common way to state challenges is to start with the phrase, “How might we…?” This provides a prompt for open-ended idea generation. For instance, consider an objective of generating ideas for new floor-care products. It might be tempting to ask: How might we generate ideas for new floor care products? However, the focus then is on HOW to get the ideas as opposed to the ideas themselves. Your Foundation Work will prepare you to “de-construct” the challenge into its parts, simply by asking basic questions: • “What is involved in cleaning floors?” • “What do people dislike about it?” • “How often should floors be cleaned?” • “In what ways are current floor-care products ineffective?”
  29. 29. The answers to these and similar questions then can be used as triggers for specific challenge state- ments. For instance, answers to the above questions might lead to challenges such as: “How might we: – Make it easier to dispense floor cleaning products? – Reduce the amount of effort involved in scrubbing a floor? – Make floor cleaning more convenient? – Reduce the frequency with which floors need to be cleaned? – Increase the sanitizing effect of floor cleaning? Setting Idea Success Parameters What are you looking for? Ideas to implement in the short, medium or long-term? How much are you prepared to change key marketing elements such as product formulation, packag- ing, retail strategy, communications and so forth? Define what parameters an idea needs to meet in order to progress for development. 1. Should overcome the Innovation Challenge of “_________________” 2. Should build the brands equity in “_____________________” 3. Must be implementable without modifications to (the retail strategy) 4. Should deliver results within the current fiscal, and so on.
  30. 30. IDEA GENERATION Where do ideas come from? Some ideas seem to appear out of thin air, they come to us when we are in the shower, while we ride the train into work or are having our hair cut. These are all states which allow our minds to travel away from the current moment, and then it hits us, an idea! I have personally had some of my most interesting and crazy ideas while lying on a massage table! The problem with this almost meditative brain state is it‟s difficult to command an idea to manifest. It either hap- pens or it doesn‟t. Not a very reliable method to use for generating ideas. If you consider the work environment, it is unsuitable for the creative task of idea generation. The nature of work is that it is usually highly pressured or routine; neither of these 2 states is conducive for creative thought. It‟s because of this that formal idea generation needs to be isolated from day to day activities even if just for a day or two. This chapter outlines how to go about running an idea generation session, also called an Ideation Event.
  31. 31. An Ideation Event can take many forms but mostly includes: - A group of people who have a vested interest in quality ideas being generated. This can be as few as 10 people and as many as 1000 people. - Ideally a mix of skills, backgrounds and expertise: Brand management, research, sales, production, customer service, retail management, suppliers, packaging and even advertising and design partners. - The Ideation needs to be led or facilitated by a skilled facilitator - Participants are led through some foundation work, given inspiration and then armed with some idea generation techniques.
  32. 32. Ideation Session Guidelines 1. Treat each other with respect. 2. Be supportive of each other's ideas. 3. Focus on the possibilities, not the obstacles. 4. Be curious, be surprised, have your thinking provoked. 5. Encourage others with support, not pressure. 6. Acknowledge the contributions of others and appreciate their greatness. 7. Try to suspend your own judgments, certainties, and assumptions. 8. Be receptive to feedback and willing to change your thoughts, opinions, and behaviours. 9. Have fun! Don't take yourself too seriously. Finally it‟s important to educate people on the basic Rules of Brainstorming. It has been discovered that by simply sticking to these tried and tested rules a group can increase the volume and quality of ideas by 50%! The Basic Rules of Brainstorming: Judge Later: During the idea generation process, just keep pumping out the ideas and go for quantity not quality. The judging process will come later. Avoid Discussion: Avoid discussions or elaborations on how great the idea could be. Just keep generating ideas. Capture Ideas: Every idea must be captured fully either by a person doing the recording or by each person writing their ideas on sticky notes. Be Specific: Every idea should be specific and actionable and should include a noun and a verb, such as "distribute a weekly newsletter." Build: Build on other people‟s ideas -- make them bigger, smaller, a different color. For instance: "Yes, and we could distribute it by email or in payroll envelopes." Participate: Ideas come from anywhere and everywhere so it‟s important for everyone to contribute. Set a Time Limit: Set a time limit for each round of idea generation... ideally, not more than 30 - 45 min- utes. At the end of this time, take a short break and assess where you are. Number Your Ideas: IDEO, the award-winning design firm believes that numbering ideas stimulates the flow of ideas and thinks that 100 ideas per hour indicates a good, fluid brainstorming session.
  33. 33. A Two day Ideation Event Although smaller ideation requirements can be achieved with a half day or full day session, an idea- tion session wishing to inspire participants with new insights and challenges to overcome with require a full 2 day session. Sample Agenda - Day One (9am – 5pm) 9.00 Introduction, Warm Up, Manage Expectations 9.30 Brand Team shares brand performance 10.00 Share Brand Equity for anchoring all Ideas 10.30 Share consumer Inspiration 11.00 Share category learning, NPD ideas from the world 11.30 Share best practice ideas (What does success look like?) 12.00 BREAK FOR LUNCH 1.00 Develop Innovation Challenges 1.30 Share some Ideation tools /first round of Ideation 2.30 Review Round 1 Ideas (Force connections) 3.00 Second round of Ideation (Copy cat Ideas) 4.00 Share ideas 4.30 Review the ideas of the day
  34. 34. Sample Agenda - Day Two (9am – 5pm) 9.00 Warm Up and recap of Day 1 progress 9.30 Round 3 of Ideation (Free-wheeling) 10.30 Share Round 3 Ideas 11.00 Sort all ideas from 3 rounds according to type 11.30 Vote on Ideas for further elaboration 12.00 Teams choose ideas to develop into full concepts 1.00 BREAK FOR LUNCH 2.00 Share elaborate concepts with full visuals 3.00 Vote on Ideas based on evaluation criteria 3.30 Establish work plan for next steps with team members 4.00 Get feedback on the session, ideas 4.30 Close the session Ideation Tools Ideas don‟t just happen. They need a problem to overcome, some inspiration and a tool or technique for find- ing the idea. There are no good or bad methods for generating ideas and there have been many books written on the sub- ject. These are types of creativity techniques that I have found be productive in generating divergent product or marketing innovation ideas. - Forcing Connections: Using consumer inspiration to create ideas - Borrowing Brilliantly: Looking to other brands and categories for inspiration - Engineered Provocations: Free-wheeling techniques to break away from assumptions - Random idea generation techniques: Generic creativity tools
  35. 35. 1. Forcing Connections It helps to spend some time generating consumer inspiration For Example: Laundry Detergent 2. Borrowing Brilliantly This involves looking to other brands and categories for inspiration. Ideas are essentially new combinations of two existing things, so it pays to keep your eyes open to new and interesting things happening with your category, in similar categories or in the world at large. If you can‟t rely on memory then create an Inspiration Wall or an Inspiration Scrapbook. Is borrowing brilliantly copying? No, you would never take an idea from your direct competition and simply apply it to your brand. That would be unoriginal and unlikely to generate a consumer advantage. Here are some examples of good ideas executed by others.
  36. 36. THINK: If I replicated this exactly for my brand, how would it work? How would this work if I replicated the „spirit” of the idea from my brand?
  37. 37. 3. Engineered Provocations Free-wheeling techniques designed to break away from assumptions.
  38. 38. 4. Random idea generation techniques There are a bunch of generic creativity tools that will also work for Product and Marketing Innovation Ideation. Your local library will have plenty of good books on the subject. Here are a few handy tools: You will require several rounds of ideation, so you can use each of the tools in turn. The key is to capture ALL ideas, good or bad so they can be evaluated at the next stage. This can be done by writing ONE idea per POST-IT or listing all ideas on a flip chart / white board.
  39. 39. DEVELOPING & EVALUATING IDEAS There are 3 Key Idea Evaluation or Testing phases: 1. Internal Idea Headline Evaluation. 2. Quantitative “Idea Headline with consumer promise” test with Consumers. 3. Qualitative consumer exploration of strongest ideas in step 2 – Here consumers are exposed to the full concept board. Ideas start out rough but soon need to develop into full concepts. But before you get to a full concept stage you need to be some preliminary evaluation of the hundreds of ideas you may have generated.
  40. 40. Internal Idea Headline Evaluation At a first stage idea evaluation it is useful to use a PLUSES, POTENTIALS, AND CONCERNS (PPC) evaluation method. PPC avoids premature idea-killing by putting you (and your group) into a positive mindset. It also allows you to overcome an idea‟s weakness. 1. PLUSES – Make a list of at least three pluses, likes or specific strengths of your idea. What is good about your idea now? 2. POTENTIALS – Make a list of at least three potentials, speculations, spin-offs or possible future gains from your idea. What opportunities might result if your idea were implemented? List potentials starting with, “It might…” 3. CONCERNS - Make a list of whatever concerns you have about the idea. When listing concerns be sure to phrase them in the form of a question starting with “How to…” or “How might we…” By starting this way, you invite solutions for how to overcome each one of these concerns and to develop a plan of action. 4. REVIEW – Take a moment to review the information that you write down for Pluses, Potentials, and Concerns, and especially the ideas and opportunities that you generated for overcoming your concerns. 5. NEW STATEMENT – Write a new and improved statement of your solution. “What I see us doing NOW is…” PLUSES POTENTIALS CONCERNS IDEA 1 IDEA 2 IDEA 3 IDEA 4 ETC
  41. 41. The Evolution of an Idea Phase 1: Post-it Idea Headline Phase 2: Flip Chart Full Concept Phase 3: Visualised Concept Concept Format I. Idea Headline II. A way in or consumer insight III. A promise IV. Substantiation V. A Visualisation
  42. 42. Quantitative “Idea Headline with consumer promise” Test with Consumers This testing stage with consumers is sometimes called an IDEA SCREENER. It‟s useful to include this test- ing phase when a team finds it has many good ideas and wants to know which ones to develop into full concepts. An IDEA SCREENER is a preliminary analysis on the appeal of top ideas. Idea Headlines with short promises and benefit descriptors are placed into a quantitative test alongside exist- ing product offerings in the market (also written as Idea Headlines). Each idea is evaluated against measures such as: Purchase Intent, liking, believability, uniqueness, and usage frequency. Example of an Idea Screener Survey Result Ranking Idea Theme WPI Uniqueness *FU Believability Immediate Simpler #1 69 3.18 36 3.99 Cleaning Actives Process With Safeguard #3 Health 68 3.35 31 4.16 (5) With Chinese #4 Naturals 68 3.1 36 3.98 Honey locust #6 Super Soaking Cleaning 67 3.19 31 3.91 #7 Blue Power Whiteness 65 3.1 28 3.93 #8 Naturals Health 64 3.17 37 3.96 #9 White Guard Whiteness 63 3.23 34 3.92 #10 Forever Suds Cleaning 62 2.82 31 3.78 Average 61 3.15 31 3.9
  43. 43. Qualitative Consumer Exploration of Strongest Ideas As companies move their product ideas through the innovation pipeline, their challenge is to correctly iden- tify the potentially winning ideas among all of those under consideration as early as possible. This careful vetting of ideas allows for less money to be put toward ideas that fail, and more resources to be put toward those with the highest probability of success. Concept testing is a critical step in identifying winning ideas, and the vast majority of consumer packaged goods companies are engaged in some form of concept testing. Unfortunately, something as simple and avoidable as a poorly written or designed concept can derail a winning idea. A Concept is a printed or filmed representation of a product or service. It is a promise a product makes to resolve an unmet consumer need, the reason why it will satisfy the need, and a description or portrayal of any key element that will affect the perception of the product. Translation: "What‟s in it for me, the consumer, and why should I believe it?" A fictitious Concept Example
  44. 44. Guidelines for Writing Concepts  Check that the concept is single-minded.  Make sure the concept is consistent with and feeds into the brand equity.  Check that the concept you have written is understandable, meaningful, believable, sustainable and own- able.  Does your concept answer the question: ‟what‟s in it for the consumer and why should she believe it?‟  Be ruthlessly logical and go through each of the concept stages one by one and check that they flow log- ically, tie together well and expressed in the most clear, concise form.  When you have finished crafting a concept, think whether you can imagine it working as an advertising strategy that will create strong advertising. (This can be a way of eliminating some concepts that seem appealing but will not ultimately lead to strong creative work.)  Make sure the concept is positive in tone. Occasionally you may wish to express the benefit of a nega- tive; this however needs to be written to ensure that the overall tone is positive.  Ask yourself „Is this concept different from what I can buy today?‟
  45. 45. IMPLEMENTING IDEAS At its most basic level, implementation is a creative problem solving process. A gap exists between WHAT IS and WHAT SHOULD BE and ACTIONS are required to close the gap. All actions taken to apply the solutions to the problem then constitute the implementation process. At its core Implementation is about CHANGE. As such many of the issues associated with corporate change emerge during implementation.
  46. 46. Overcoming Resistance to Change 1) Involve other people in the entire problem solving process 2) Be specific about the amount and type of change likely from implementing the idea 3) Stress personal benefits to be obtained from implementation 4) Create shared perceptions of the need for change 5) Identify key opinion leaders and get their support Implementation Guidelines 1) Develop and evaluate GOAL STATEMENTS a. These should be specific, clear, realistic and include a time schedule 2) Assess your resources a. What is needed to sell an idea b. What is needed to apply your idea to the problem 3) Assess the needs of the people to be influenced a. Who is the person behind the title and role? b. What motivates them? c. Are they risk takers or safety seekers? d. Take time to find out – Observe them. 4) Assess your implementation Strengths and Weaknesses 5) Analyse idea benefits a. List features of the idea, then list benefits of each feature 6) Prepare for the Presentation 7) Conduct the Presentation 8) Develop the Implementation Strategy 9) Implement the Idea
  47. 47. Implementation Techniques It‟s important to provide some structure to the implementation activities to ensure timely execu- tion of multiple activities. 2 Techniques among many: 1) Five W‟s (Who, What, Where, When and then Why?) 2) Time/ Task Analysis (aka Gantt charts)  Relating time requirements to implementation tasks. Example of Times/Task Analysis
  48. 48. Ideas Must Translate Well into Marketing Communications Poor concepts show their true colours at implementation, as teams struggle to communicate un- clear, complex or weak concepts. Poor concept and execution
  49. 49. OPEN INNOVATION AND IDEA MANAGEMENT What is Open Innovation? The central idea behind Open Innovation is that in a world of widely distributed knowledge, com- panies cannot afford to rely entirely on their own research, but should buy or license processes or inventions from other companies.
  50. 50. A History of Open Innovation While closed innovation has been the way most companies have operated and we think of Open Innovation as mostly a 21st Century phenomenon, there are many examples of open innovation throughout history. In 1714, the British government offered the Longitude Prize to anyone who could develop a method for determining a ship‟s longitude. Incentives valuing over £100,000 were offered in the form of encouragements and awards. The winner was John Harrison, who received £14,315 for his work on chronometers. Likewise, in 1919, a New York City hotel owner Raymond Orteig offered a $25,000 reward to the first aviator to fly non-stop between New York City and Paris. 9 years later the prize was won by little known aviator, Charles Lindbergh with his aircraft the Spirit of St. Louis. In the corporate world one could argue that true crowd sourcing also began some 100 years ago when the suggestion box was first used. Truth is the suggestion box was a rather tedious mecha- nism for gathering feedback and by the 1990‟s many companies had given up on it. Luckily with the diffusion of the internet the suggestion box was given a make-over, and in the past 10 years the “digital suggestion box” has garnered a lot of support and become a highly viable mechanism for problem solving and generating high quality ideas. No longer is the “digital suggestion box” a method for placating employees and customers into believing they have a voice, it is now a power- ful tool for generating new ideas through Open Innovation. One of the first genuine examples of corporate crowd sourcing was developed in 2001 by a drug company, Eli Lilly; they decided to open up their R&D to a broader community of contributors by posting research questions to scientists and others outside the company. These contributors collabo- rated to generate solutions, and the winning solution received a financial reward. Out of this venture grew a new company, InnoCentive, which now offers this crowd sourced approach to other companies. Many others have followed in the footsteps of Eli Lilly to collect ideas from the com- munity, whether they are a community of amateur inventors, customers or even the broad public. So why does Crowd Sourced Innovation or Open Innovation Work? Open innovation helps companies succeed because it opens them up to the power of the Long Tail. They gain access to a vast network of professionals and experts from a varied collection of disci- plines, increasing the likelihood that someone will come up with a creative solution. Today, open innovation can be seen all over the world. Non-profit organizations, corporations and government agencies are using the Internet to reach a worldwide audience, and they are taking their in-house challenges and seeking the public‟s help in solving them. From an Innovation Seeker perspective (corporate or government entity) they can look beyond the R&D department and practice open innovation on several levels which are complementary.
  51. 51. Level Zero or closed innovation is where R&D drives all aspects of idea generation and execution. Level 1 open innovation may be regarded as not being open at all as it concerns opening up the idea generation possibilities to employees, however for large multinationals this is a significant un- tapped resource. Since 2001, IBM has used jams to involve its more than 300,000 employees around the world in far-reaching exploration and problem-solving. ValuesJam in 2003 gave IBM's workforce the oppor- tunity to redefine the core IBM values for the first time in nearly 100 years. During IBM's 2006 Innovation Jam™ - the largest IBM online brainstorming session ever held - IBM brought together more than 150,000 people from 104 countries and 67 companies. As a result, 10 new IBM busi- nesses were launched with seed investment totalling $100 million. Level 2 open innovation is truly open as it taps into the co-creation or ideas of customers of the company. Many of the consumer goods companies have already put initiatives in play to benefit from this idea source. - Open Innovation Sara Lee - open innovation portal of Sara Lee - P&G Open Innovation Challenge - external idea sourcing in Britain and Vocalpoint - P&G‟s network for women - Ideas4Unilever - corporate venturing - Kraft - innovate with Kraft
  52. 52. Beyond FMCG: - BMW Customer Innovation Lab - LeadUsers.nl & Live Simplicity - Philips‟ crowdsourcing platforms - Dell IdeaStorm - external idea sourcing And in the retail space: My Starbucks Idea - shaping the future of Starbucks. Level 3 open innovation taps into a community of innovators, people who innovate professionally or simply amateurs who love solving problems with ideas. Here the company can use the same idea management web based systems to reach out to this professional or enthusiast group or can work with existing R&D communities such as: InnoCentive works with Seeker organizations to define and post their problems on a global community website. Seeker organizations pay Solvers for the winning solutions. Seekers pay InnoCentive a fee to post Challenges and, in some cases, they also pay InnoCentive a commission on the amount awarded. - Innocentive - open innovation problem solving - TekScout - crowdsourcing R&D solutions - IdeaConnection - idea marketplace and problem solving space. Level 4 is when the idea seeking entity seeks ideas from the broad population. Some notable examples: - The government of Ireland have been at the forefront of public sector crowdsourcing for ideas. In early 2009 they launched the Ideas Campaign and a year later have followed up with Your Country, Your Call, a citizen-based ideation and innovation campaign to spur economic development. An award of €100,000 for each of the top two ideas will be given, along with a development fund for implementation of up to €500,000 each project. - Also the Singapore government called out to all Singapore residents and visitors to share their views and visions for Singapore's tourism industry. The initiative TourismCom- pass2020.com was launched in the second half of 2009 and asks citizens and visitors to contribute ideas to shape Singapore Tourism by the year 2020. There is always a concern with customer and general public open innovation that the motivation for the exercise could be more a public relations effort rather than a genuine attempt to get better ideas, fast. Open Innovation should never be a “we are listening” exercise.
  53. 53. It‟s important for open innovation programmes to put feedback mechanisms in place so that strong ideas which are selected for implementation are showcased back to the “solver” community. Idea Management The web has made open innovation and idea management a compelling proposition for aspiring in- novators. There are plenty of web based systems which can be purchased and customized to help with the collection of ideas from a community, and also allow the community to select the best ideas for im- plementation. A good place to start is to broadcast innovation challenges to internal stakeholders such as staff, when you have perfected this, then progress to opening up idea collecting from a broader community.
  54. 54. STARTING AN INNOVATION PROGRAMME FROM TODAY Here are a few tips for kick-starting Innovation in your organisation. 1. Get leadership support for innovation Innovation is about change, as such difficult to implement without group support. Most innovation is driven by the CEO as this chart demonstrates.
  55. 55. 2. Educate and Inspire Inspire others with what Innovation can achieve:  Spreading the innovation message across the whole organisation, not just marketing or R&D.  Start an inspiration wall in your office, this wall can be a physical space where new ideas from other categories are shared.
  56. 56. 3. Create Opportunities for Participation Lead an innovation event for your brand or category; invite everyone who would be part of imple- mentation in the future. Brand your Innovation Event in the way IBM have called their sessions IBM JAMS or DELLSTORMS or how P&G calls their ideation sessions “GYM” session. Not only are these events great at yielding lots of new ideas they are a great way to remove people from their day to day work and to focus the mind around the value of innovation. Adopt an idea management system; this is an efficient way for setting innovation challenge priori- ties and involving staff in generating, documenting and then evaluating ideas. A web based system can cost as little as USD 5000 to set up and can cost as little as a few hundred dollars a month to run.
  57. 57. About Angela Koch Angela is a South African trained marketing and brand specialist who has spent the past 9 years working and living in Asia. Primarily working with Asian brands seeking to reinvent themselves for a larger Asian or global audience. Angela has helped brands energise their new product portfo- lios by facilitating new product development; her category experience includes consumer goods, retailing, and telecommunications. Other areas of Angela‟s expertise include Brand Positioning Reinvention, namely defining Brand Architecture‟s for greater consumer engagement and brand success. A key component of this is an intimate understanding of Asian consumers. Angela has authored key Asia-Pacific consumer stud- ies including the Miss Understood Asia Study (2005) and has experience across key Asia markets including – South East Asia, Greater China and Australia. Angela was previously Strategy Director within multi-national Advertising Agencies in Johannesburg, Hong Kong and Singapore. Angela is currently Director of Innovation Strategy at Invitro Innovation, a Singapore based Inno- vations consultancy. About Invitro Innovation INVITRO is an Ideas & Innovations Consultancy which provides an intervention for companies who find it difficult to deliver breakthrough solutions to business and brand problems. INVITRO believes that breakthrough solutions are derived by imagining rather than rationalizing, assuch INVITRO adopts a Very Human Approach to Ideas and Innovation. It is INVITRO‟S mission to make business more creative in how they overcome problems and seize opportunities. INVITRO has impacted outcomes for: ZUJI Asia Pacific, P&G China, Dragonair, Tiger Beer Sin- gapore, Archipelago Beer, Alive by F&N Foods, Celcom Malaysia, Cerebos Pacific Limited and Strandard Chartered Bank. Invitro has 3 key offerings, all of which involve group facilitation. 1. Brand and Company (Re) invention Workshops – long range planning 2. Ideation sessions or “Innovation Camps” for Product and Marketing Innovation. 3. Training – How to use Imagination to solve business problems. The Invitro Blog can be found at www.invitro.com.sg Follow us on Twitter @invitrotweets.

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