So You Want To Be Innovative ?

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This is a presentation from May 2011 on customer-centric innovation which came up when going through our older files. It's a bit dated, but much of the thinking is still valid.

Published in: Spiritual, Technology

So You Want To Be Innovative ?

  1. 1. Alain Thys So You Want To Be Innovative? A FUTURELAB ACTION GUIDE May 2011
  2. 2. FUTURELAB So you want to be innovative? Prelude “Chance favours the prepared mind” Louis Pasteur
  3. 3. Let us start with a few questions: Why do the space shuttle engines have the diameter they have? 3. FUTURELAB
  4. 4. Let us start with a few questions: OK, that’s pragmatic, but why is the tunnel that width? 4. FUTURELAB
  5. 5. Let us start with a few questions: That makes sense, but who decided on the width of tracks? 5. FUTURELAB
  6. 6. Let us start with a few questions: Remarkable, but why choose this base for trams? 6. FUTURELAB
  7. 7. Let us start with a few questions: OK, but then why make the axes this wide? 7. FUTURELAB
  8. 8. Let us start with a few questions: So if the ruts lead to the cart, what caused the ruts? 8. FUTURELAB
  9. 9. Let us start with a few questions: Standardised imperial chariots? Where did Ceasar get that idea? 9. FUTURELAB
  10. 10. Let us start with a few questions: OK, but some Egyptian must have had an original idea! 2000 B.C. 10. FUTURELAB
  11. 11. Let us start with a few questions: And so we find the answer: it’s all because of a horse’s ass. 2x 11. FUTURELAB
  12. 12. Orthodoxies drive our behaviour We copy and build on what we know to work 12. FUTURELAB
  13. 13. Orthodoxies drive our behaviour In fact, it’s in our genes HUMANS COPY 13. ... behaviour ... ... ways of working ... ... processes .... ... organisational structures ... FUTURELAB
  14. 14. Orthodoxies drive our behaviour It is the secret to human success and achievement Reading and print Agriculture 14. Industrial progress Apps FUTURELAB
  15. 15. Orthodoxies drive our behaviour But there is also a dark side 15. FUTURELAB
  16. 16. Orthodoxies drive our behaviour They can fail us if the world around us changes Music industry Education Personal shame (1994/5) “Blockbuster CD’s rule.” “No cheating.” “Browsing is for geeks.” Illustration by ~Si2. Print can be purchased at www.deviantart.com 16. FUTURELAB
  17. 17. Orthodoxies drive our behaviour They can be based on wrong assumptions Our actions have always been driven by assumptions which everyone knows to be true. It can happen to the best of us: “God does not play dice with the universe” Albert Einstein on Quantum Mechanics Earth is flat illustration by ~Si2. Print can be purchased at www.deviantart.com 17. FUTURELAB
  18. 18. Orthodoxies drive our behaviour Worst of all, they can close our mind to other options • • • • 18. We’ve always done it that way This is “best practice” That’s what everyone does Our world-view is right FUTURELAB
  19. 19. FUTURELAB So you want to be innovative? Part 1: What orthodoxy does to innovation Tradition means giving votes to the most obscure of all classes, our ancestors. G.K. Chesterton
  20. 20. What orthodoxy does to innovation. No, I’m not going to talk about orthodoxy versus creativity Think out of the box! Wear a green hat! Find your inner lightbulb! 20. FUTURELAB
  21. 21. What orthodoxy does to innovation. I am going to talk about the orthodoxy of innovation itself Why we make it harder than it needs to be? 21. FUTURELAB
  22. 22. Time for an innovation renaissance Which would be the easiest route to cross this desert? Over the mountains? Through the valleys? 22. FUTURELAB
  23. 23. Time for an innovation renaissance Weird, most corporate innovators seem to disagree. AIRLINES BANKS COMPUTERS UTILITIES PROCESSED FOOD PHARMA Source: The Doblin Group, www.doblin.com 23. FUTURELAB
  24. 24. Time for an innovation renaissance Weird, most corporate innovators seem to disagree. Why? 24. FUTURELAB
  25. 25. Time for an innovation renaissance Innovation is driven by industrial mass production orthodoxies Industrial revolution Mass-production logic More volume Better & more features Lower costs Invention mindset 25. FUTURELAB
  26. 26. Time for an innovation renaissance This worked fine as long as we had room in our life for “more” 26. FUTURELAB
  27. 27. Time for an innovation renaissance But our world has changed – the tub is full 27. FUTURELAB
  28. 28. Time for an innovation renaissance Many of our innovation efforts are wasted Product parity Category overload Hypercompetition Too much choice actually reduces the preparedness of customers to make a purchase. Barry Schwartz 28. FUTURELAB
  29. 29. Time for an innovation renaissance We consider massive failure as the norm (orthodoxy?) “50-90% percent of innovation projects [are] judged to have made little or no contribution to Wikipedia, 2011 organizational goals” 29. FUTURELAB
  30. 30. Time for an innovation renaissance Our response: innovating even more 30. FUTURELAB
  31. 31. Time for an innovation renaissance Accepting “collateral damage” as it occurs • • • • • 31. Demotivation Stress Wasted resources Lost competitive position Complexity FUTURELAB
  32. 32. FUTURELAB So you want to be innovative? Part 2: Time for an innovation renaissance Anything that won't sell, I don't want to invent. Its sale is proof of utility, and utility is success. Thomas A. Edison
  33. 33. Time for an innovation renaissance How do these guys do it? The industrialist’s nightmare: I sell overpriced, underspec’d computers and people love them. 33. I take a traditional industry like finance, travel or telco and slap a red logo on it. FUTURELAB
  34. 34. Time for an innovation renaissance On innovation, they lead their people through the valleys Experience innovation Business model innovation Service innovation … 34. FUTURELAB
  35. 35. Time for an innovation renaissance They have let go of the old world orthodoxies “Age of Scarcity” Innovate for: More volume Better & more features Lower costs 35. FUTURELAB
  36. 36. Time for an innovation renaissance They have recognised we live in a different era “Age of Abundance” In mature markets It’s hard to get double-digit growth from finding new customers. It’s much easier to extend the relationship with the customers you already have. 36. FUTURELAB
  37. 37. Time for an innovation renaissance They innovate for relationships Enough to keep things fresh and interesting. 37. But not too much. FUTURELAB
  38. 38. Time for an innovation renaissance Or in business terms A compass for your consideration “Age of Abundance” Innovate for: Stakeholder Lifetime Value Better relationships & reputation Lower costs 38. FUTURELAB
  39. 39. An innovation renaissance Some remarkably good practices • • • • • • • 39. Hardware Software Infrastructure Hosting Consulting Operations ... One more thing FUTURELAB
  40. 40. Time for an innovation renaissance A “not so best” practice Every innovation poses a relationship risk. Innovate to keep your relationships fresh, but don’t overdo it. DO DON’T Innovate for growth Risk relationships How Planta almost lost me ... and still might. 40. FUTURELAB
  41. 41. FUTURELAB So you want to be innovative? 5 Steps to transform yourself A leader is someone who steps back from the entire system and tries to build a more collaborative, more innovative system that will work over the long term. Robert Reich
  42. 42. 5 Steps to transform yourself Step 1: Listen, Watch and Learn Take the customer perspective ... all the way. Choice Drivers Insights Recommendation triggers Key Advice “Shop your own product”. By walking in customers’ shoes you understand how they see the world. Georges-Edouard Dias SVP, L’Oréal Group 42 16/11/2013 Obvious? Test yourself: If you’re in B2C: when was the last time you really spoke to a consumer? If you’re in B2B: how actively do you manage all your stakeholder’s emotions? FUTURELAB
  43. 43. 5 Steps to transform yourself Step 1: Listen, Watch and Learn Asset leveraging Bad profits Global inspiration Co-creation For most of us Innovation is not invention. Most of what you need will exist in some shape or form. 43. Internal sensing Market foresight FUTURELAB
  44. 44. 5 Steps to transform yourself Step 2: Broaden your innovation horizon The Innovation Radar There are 12-15 types of innovation. Which ones are your competitors missing? Adaptation of The Innovation Radar 2.0 by J.Chen and M.Sawney of Kellogg School of Management, 2008. 44. FUTURELAB
  45. 45. 5 Steps to transform yourself Step 2: Broaden your innovation horizon The Innovation Strategy Matrix High Areas to keep up or stay ahead Look at the niches Customer Engagement Develop a “portfolio” of innovation strategies depending on the situation. Opportunities for meaningful differentiation Copy when proven only Low Low 45. Innovation Intensity High FUTURELAB
  46. 46. 5 Steps to transform yourself Step 3: Involve your people Innovation is a social, not a personal achievement. It does not belong in a “department”. • • • • • • 46. Engagement programmes Digital (open) platforms Organisational flexibility Corporate venturing projects Innovation teams ... FUTURELAB
  47. 47. 5 Steps to transform yourself Step 3: Involve your people Only 5% of your workforce understands your strategy* So how can they innovate upon it?    Make sure people understand what you aim to achieve Provide people with the innovation & design knowledge/tools to contribute Build an innovation movement that rewards initiative rather than ask for instant ROI * Based on Norton, D. Aligning your Strategy to the Customer Value Proposition, 13/9/2005. 47 16/11/2013 FUTURELAB
  48. 48. 5 Steps to transform yourself Step 4: Make sure you got it “right” “Failing fast” is no excuse for being sloppy. Implement a simple system that allows people to evaluate their own ideas and forces cross-functional co-operation. 48 FUTURELAB
  49. 49. 5 Steps to transform yourself Step 4: Make sure you got it “right” Simplify, so your business is able to execute. Then simplify again. The Laws of Simplicity John Maeda 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 49 16/11/2013 Reduce Organise Time Learn Differences Context Emotion Trust Failure The One Food for thought: Can you “appify” your business? FUTURELAB
  50. 50. 5 Steps to transform yourself Step 5: Go to market to enhance relationships Experience The experience IS the product. Peter Merholz Delight Loyalty Profit How do your innovations strengthen your existing customer relationships? Racing to market is no excuse for being sloppy. Align your business as if it were the only innovation you’ll ever launch. 50 FUTURELAB
  51. 51. FUTURELAB So you want to be innovative? Conclusion Finally, in conclusion, let me just say this. Peter Sellers
  52. 52. CONCLUSION Break innovation’s orthodoxies. STEP 1 Listen, watch and learn. STEP 2 Broaden your innovation horizon. STEP 3 Involve your people. STEP 4 Make sure you got it “right”. STEP 5 : Go to market to enhance existing relationships. 52 16/11/2013 FUTURELAB
  53. 53. Conclusion Focus on the valleys that lead to customer success You can innovate less Because no one is there, you make your life easier. 53. Innovations have more meaning With the same effort you can differentiate yourself more. FUTURELAB
  54. 54. Conclusion In Summary Innovate Less But with More meaning. 54. FUTURELAB
  55. 55. Alain Thys Email: ath@futurelab.net Twitter: @FLB_alainthys 55. FUTURELAB

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