Manging for Innovation

Slide 1: MANAGING 4 INNOVATION Greg Fisher

Slide 2: WHAT? WHY? HOW?

Slide 3: WHAT?

Slide 4: What is innovation? Innovation is the process of turning opportunity into new ideas and putting those into widely used practice – Tidd, Bessant & Pravitt – Managing Innovation (2001) Innovation is the means by which entrepreneurs exploit change as an opportunity for a different business or service – Peter Druker – Innovation and Entrepreneurship (1985) Innovation is the successful exploitation of new ideas – UK DTI Innovation Unit

Slide 5: What is innovation? Opportunity + Idea + Exploitation = Innovation

Slide 6: Product Innovation Improving the features of a product or creating new products

Slide 7: Process Innovation Improving or changing the process by which a product or service is produced or delivered

Slide 8: Business Concept Innovation Radically reconceiving products and services, not just developing new products / services Redefining market space Redrawing industry boundaries

Slide 9: WHY?

Slide 10: Encyclopaedia Britannica’s 225 year track record of success was destroyed in: • 24 months • 5 years • 10 years • 25 years

Slide 11: Encyclopaedia Britannica’s 225 year track record of success was destroyed in: • 24 months • 5 years • 10 years • 25 years

Slide 12: What has more computing power? • Dell 400 Mhz Pentium III desktop PC • Apollo 11 mission control computer • Sony Playstation

Slide 13: What has more computing power? • Dell 400 Mhz Pentium III desktop PC • Apollo 11 mission control computer • Sony Playstation

Slide 14: It took the telephone 40 years to penetrate 10 million homes. How long did it take the Netscape browser? • 18 months • 5 years • 10 years

Slide 15: It took the telephone 40 years to penetrate 10 million homes. How long did it take the Netscape browser? • 18 months • 5 years • 10 years

Slide 16: How many people use the internet in China? • 50 million • 200 million • 300 million

Slide 17: How many people use the internet in China? • 50 million • 200 million • 300 million

Slide 18: Value of Yahoo!’s offer to buy Facebook.com from the 22 year old founder, Mark Zuckerberg • $100 million • $1 billion • $500 million

Slide 19: Value of Yahoo!’s offer to buy Facebook.com from the 22 year old founder, Mark Zuckerberg • $100 million • $1 billion • $500 million

Slide 20: 3 billion people live in Asia. What proportion of the population is < 25 years old? • 20% • 35% • 50%

Slide 21: 3 billion people live in Asia. What proportion of the population is < 25 years old? • 20% • 35% • 50%

Slide 22: The cost of hiring an English speaking PhD chemist in India is: • R65,000 pa • R150,000 pa • R350,000 pa

Slide 23: The cost of hiring an English speaking PhD chemist in India is: • R65,000 pa • R150,000 pa • R350,000 pa

Slide 24: The average consumer in the developed world is hit with how many marketing messages every day? • 500 • 2500 • 4500

Slide 25: The average consumer in the developed world is hit with how many marketing messages every day? • 500 • 2500 • 4500

Slide 26: General Motors makes more money from? • Selling cars • Selling technology • Lending customers money to buy its cars

Slide 27: General Motors makes more money from? • Selling cars • Selling technology • Lending customers money to buy its cars

Slide 28: Number of Apple iPods sold to date? • 10 million • 35 million • 100 million

Slide 29: Number of Apple iPods sold to date? • 10 million • 35 million • 100 million

Slide 30: Google’s value at IPO, 6 years after the business was founded? • 32 billion • 20 billion • 12 billion

Slide 31: Google’s value at IPO, 6 years after the business was founded? • 32 billion • 20 billion • 12 billion

Slide 32: HOW?

Slide 33: 4 businesses 4 case studies 4 management philosophies 4 innovation models

Slide 36: Observe Brainstorm Prototype Implement Methodical Innovation

Slide 37: Observe IDEO’s cognitive psychologists, anthropologists, and sociologists team up with corporate clients to understand the consumer experience

Slide 38: Ideo

Slide 39: Brainstorm An intense, idea-generating session analyzing data gathered by observing people. Each lasts no more than an hour. Rules of brainstorming are strict and are stenciled on the walls.

Slide 40: Ideo

Slide 41: Prototype Mocking up working models helps everyone visualize possible solutions and speeds up decision-making and innovation.

Slide 42: Ideo

Slide 43: Implement Bring IDEO’s strong engineering, design, and social-science capabilities to bear when actually creating a product or service.

Slide 44: • Process to drive innovation • Fun environment • Diverse teams • Encourage failure Application Methodical Innovation

Slide 46: • 167-year-old business • $50 billion in sales • 300 brands • 160 Countries • 13 brands in Facts about excess of $1 P&G billion

Slide 47: P&G History of Innovations How do they keep this going?

Slide 48: P&G Response = R&D • R&D Spend – $1.6 billion • 7,200-strong R&D staff • Over 1000 PhD’s But still not getting the innovation they want?

Slide 49: [Research & Development] Open Innovation R&D C&D [Connect & Develop]

Slide 50: Source: P&G Connect and Develop Booklet: http://pg.t2h.yet2.com/t2h/page/homepage

Slide 51: Connection network Source: P&G Connect and Develop Booklet: http://pg.t2h.yet2.com/t2h/page/homepage

Slide 53: Our vision is simple. We want P&G to be known as the company that I have a ready-to- collaborates - inside and go product or out - better than any technology to other company in the offer P&G world. I want us to be the absolute best at spotting, developing and leveraging relationships with best-in-class partners in every part of our business. In fact, I want P&G to be a magnet for the best-in-class. I want to acquire a technology from P&G.

Slide 54: Ready-To-Go Products By acquiring the newly introduced SpinBrush, Open P&G was able to bring a superior oral care brand to Innovation market quickly, without undertaking the time and expense of developing an entirely new product. Ready-To-Go Packaging Consumer-preferred pump dispensers were originally developed by a European packaging products company. P&G led a collaborative improvement process to make the original pumps more effective prior to their launch in Olay’s North American markets.

Slide 55: Ready-To-Go Technologies P&G introduced Bounce, the world’s first dryer-added softener, after acquiring the product technology from the Open independent inventor who developed the innovative fabric- Innovation care solution. Commercial Partnerships P&G found the perfect complement to the Swiffer brand in a hand-held duster developed by a Japanese competitor. After purchasing the product, P&G leveraged elements of existing manufacturing processes and advertising components to launch Swiffer Duster within 18 months.

Slide 56: Open Application Innovation • Know where to look • Leverage networks • Distribute and screen ideas • Promote openness to external ideas

Slide 58: Innovation History MSA Discovery World Discovery Life 1994 2006 Vitality Destiny Health Discovery Card

Slide 59: "We don't innovate for innovation's sake, but without a deadline that fine line between a great product and a mediocre Driven product is seldom bridged.” Innovation Adrian Gore – CEO Discovery • Set a deadline • Short planning cycles: 18 months to 3 years • Link product and process innovation • Combine intellect & emotion

Slide 61: “We call all of these projects Googlettes. Basically, they're baby Googles, startups within the startups. We really like the concept because it helps us keep that innovative Pet Project startup feel and launch Innovation projects quickly.” Marissa Mayer - Director Consumer Web products at Google

Slide 62: • Free time • Access to upper managers • Top 100 priorities list • Small teams Pet Project Application Innovation

Slide 63: Where will Google go next?

Slide 64: Open Driven Innovation Innovation Pet Project Methodical Innovation Innovation

Slide 65: Consistent Themes?

Slide 66: Consistent Themes • Leadership • Teamwork • Values • Stimulation • Recruitment

Slide 67: Open Driven Innovation Innovation Pet Project Methodical Innovation Innovation

Slide 68: MANAGING 4 INNOVATION Greg Fisher www.fisherg.blogspot.com gregcfisher@gmail.com