2011 Power To Innovate - Where to Innovate In This Economy

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Given today's economy, it is easy to justify focusing your innovation efforts around cost or resource reduction. But is that really the right focus? Or is this the time you really should be looking at break-through innovations? Drawing from numerous customer examples, Jim will make the case that the current economic environment is not only right for innovation around constraints other than cost - it is essential.

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2011 Power To Innovate - Where to Innovate In This Economy

  1. 1. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Jim Belfiore, Certified Innovation Master Sr. Director of Client Innovation and Practices Invention Machine Where to Innovate in This Economy
  2. 2. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Definition: Where where: [hwair, wair] adverb: • in or at what place?: Where is he? • in what position or circumstances?: Where do you stand on this question? • in what particular respect, way, etc.?: Where does this affect us? • to what place, point, or end? wither? Where are you going? • from what source? whence?: Where did you get such a notion?
  3. 3. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Where Do You Stay Informed?
  4. 4. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Staying Informed in Science & Innovation…
  5. 5. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Staying Informed in Business & Innovation…
  6. 6. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Staying Informed in Finance and Economics…
  7. 7. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Where Have We Been?
  8. 8. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Back in 2008…
  9. 9. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Back in 2008… • “When do you innovate?”  „When we have time‟  „When we have budget.‟  „…in response to a crisis.‟ • Looking towards 2011…  The real crises have just begun  The impacts to your lines of business and innovation strategies will be swift and profound
  10. 10. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Where Are We Now?
  11. 11. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Innovation is Driven By Need “Innovation must meet a consumer need - the consumer must be willing to part with their money for it, and it must provide value to both us and the customer.” - A. G. Lafley, CEO, October 5, 2010 All of us in this room are impacted by the needs (and health) of consumers of every type  Government, Corporate, Individual  Understanding trends in 2011 will be more important than in any previous year
  12. 12. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Government Trends are Astronomical… • We’re increasing deficit spending • U.S. debt crossing $14 Trillion  If each dollar of debt was a star, we’d now owe 140 galaxies
  13. 13. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Corporate Trends are Harder to Spot… One statistic speaks for itself… Source: Bloomberg - October 14, 2010
  14. 14. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA The Consumer is a System • Just as with any product or process design, the consumer is a system that is comprised of many interacting parts, and external environments that can convey positive or negative effects
  15. 15. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Consumer Trends are not looking so good… • Higher unemployment • Fewer jobs • Less disposable income • Increased debt • Lower purchasing power
  16. 16. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Consumer Trends are not looking so good… • Higher unemployment • Fewer jobs • Less disposable income • Increased debt • Lower purchasing power • Less mobility • Poorer diet • Decreased health • Greater crime risks • (Hyper)inflation?
  17. 17. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Where Are We Going?
  18. 18. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Everything is Rapidly Evolving • Tomorrow’s service and manufacturing leaders will succeed because of rapidly evolving:  Global supply chains  Modern finance  Government policies  Population demographics  Information ecosystems  Geophysical transformations  Natural  Synthetic • In today’s world, there’s no place left to hide.
  19. 19. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Innovation is No Longer About… • Making small improvements in existing products • Gaining single-digit market share in a crowded space • Re-inventing a brand  If it is, then I’ve got a new product announcement Radical Innovation must be your 12-mth survival plan
  20. 20. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Innovation for Survival Means… • Making generational leaps on a rapid schedule  Knowing your S-curves and how to navigate them • Business Model Innovation  Re-inventing your existing products’ value propositions through New Market Analysis  Discovering (and dominating) new markets that are outside of your core competencies which align to your value and growth
  21. 21. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Innovation for Survival Means… • Obsoleting:  Your Products  Your Services  Your entire industry • If you do your job right, you’ll put yourself, and your competitors out of a job (at a nice profit)
  22. 22. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Constraints are Key to Radical Innovation • In 2008, I told you:  Look for conflicts, tradeoffs, or compromise  When you find the box, you’ll drive high-value innovation • Good News / Bad News  Good News: We are all going to be surrounded by rapidly increasing compromise and conflicts in our respective markets for the foreseeable future  Bad News: (See, “Good News”)
  23. 23. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA (Consumer) Constraints Apply to Everything • Cost (lower cash-flow)  Not going to spend as much when cash / credit is available • Lifecycle / Function  “Pent-up demand” is, at best, unpredictable  Products at all price-points will be working longer & harder • Supersystem Trends  Increasing impacts of Energy, Transportation, Environment, Food, Policies, etc.
  24. 24. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Where Would Innovation Happen?
  25. 25. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Aerospace (Civilian) • Challenges:  Environmental Pressures  Upper S-Curve Plateau  Industry Volatility (Fuel) • Innovation Opportunity:  Complete re-think of fuselage design; targeting of non-passenger constraints  Constraints: Fuel Consumption, Environmental Impact (Sound, Emissions)
  26. 26. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Aerospace (Civilian) • Case Study: N+3 “Double Bubble”  180-Passenger (B737 class) double fuselage design  “Boundary Layer Ingestion” (slow-speed top-side air intake)  70% less fuel, 75% less NOx emissions  Phase 2 underway  Market entry: 2035
  27. 27. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Energy • Challenges:  Hydrocarbon (Production / Supply)  Most alternatives obsolete only the fuel, bringing new problems along for the ride  Existing HC fleets / infrastructure • Innovation Opportunity:  Disruption of manufacturing methods for current (high-demand) fuel products  Constraints: Cost, Resources, Environment
  28. 28. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Energy • Case Study: Joule BioTech  Bioreactors: Artificial Microbes  Consume Sunlight and CO2  Produce Ethanol and Diesel  20,000 Gallons / Acre / Year
  29. 29. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Electronics / Automotive • Challenges:  Accelerated introduction of transformational commodities  Fundamental shift in transportation power plants  Critical, exponential dependency on rare-earth materials  Finite, geo-politically volatile • Innovation Opportunity:  Find RE-free, high-anisotropic materials; RE recycling; NPM  Constraints: Cost, Form Factor, Supply Chain
  30. 30. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Electronics / Automotive • Case Study: ARPA-E  High-Energy Permanent Magnets Project  New technologies to double power densities  Expand market from $7 billion to $20 billion in 10 years • Case Study: Tesla Motors  RE-free induction motor  245 miles / charge  0-60mph: 3.7 sec
  31. 31. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Medical • Challenges:  Rising costs:  Manufacturing / Delivery  Disease State  Treatment Efficacy  Regulation / Policy • Innovation Opportunity:  Develop products that eliminate life-critical needs (devices / procedures / pharma) long before the end of current (product / services) lifecycles  Example: Drug-Eluding Stent
  32. 32. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Medical • Case Study: Nanoburrs  Revolutionary combination of drug-delivery biophysics and pharmacology  Wide applications  Coronary disease  Cancer  Endoskeletal  Changes the game in disease-state management in the next 2-5 years
  33. 33. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Where Should You Innovate?
  34. 34. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Communities of Innovation • The single inventor is a myth  The path from concept to commodity involves many people  In Innovation, there is no evil genius • Two essential questions:  “Has this already been done?”  Freedom to operate tells you the size of your neighborhood  “Who’s doing anything like this?”  Turn k(now)-how, into k(now)-who  Share your Problems / Use the Expert Finder
  35. 35. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Business Model Innovation • Problem:  Increasing invasion of new and disruptive business models  Typical response is to adopt the new business model alongside new competitors  Many companies are unsuccessful at simultaneously managing and integrating multiple business models • Typical Solution: Business Unit Separation  Often leads to failure  Key considerations need to be researched before innovating a competing business model
  36. 36. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Business Model Innovation • Assess “Market Attractiveness”  Examine the new market for:  Size, Growth  Demographics, … • Examine your own organization  Core Competencies:  Do your core competencies apply to the new market in a unique way?  Can your core competencies “disrupt a disrupter”?
  37. 37. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Business Model Innovation • (Re)Assess the Value Chain  Are the potential new customers representative of an entirely new market?  Are the potential new customers just a new segment of an existing business model?  … • Invention Machine Goldfire’s Tasks are Uniquely Suited  Research, Find and Disrupt New Markets • Obsolete Yourself, Everyday
  38. 38. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Business Model Innovation “If you make a widget that has become dominant in the marketplace, work on getting rid of it now. If you don't…you‟ll find yourself playing your competitor's game.”
  39. 39. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Where Next?
  40. 40. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Your Innovation Goal is K(now) Where • Knowledge is the first step  Staying informed is essential  Past, Present, and Future • Trends are critical insights  Know where changes are leading  Demographics, Landscapes, Supersystems, … • S-curves are more than wavy lines  Know where your products are along the ideality curve  Know what the next generation looks like…today  Goldfire facilitates effective research
  41. 41. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Your Innovation Goal is K(now) Where • Radical Innovation will become the norm  Flat or small growth won’t cut it  Obsolescence must be planned out, not in • K(now) constraints  Recognize, embrace, and innovate  Opposing traffic always drives in the passing lane • K(now) boundaries…and use them  Figure out the game changers, then track them  Were you disrupted today?  Use Goldfire to research expertise, and innovate new business models
  42. 42. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Where Are You?
  43. 43. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Where Do You Want To Be?
  44. 44. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA Jim Belfiore, Certified Innovation Master Sr. Director of Client Innovation and Practices Invention Machine Where to Innovate in This Economy
  45. 45. P OW E R TO I NNOV A TE | OCTOB E R 2 5 -2 7 2 0 1 0 | B OS TON, MA For Additional Information: • Visit us on the web at InventionMachine.com • See Goldfire in Action by Taking a Quick Tour • Request a Goldfire Demo • Connect with Us:
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