   Let’s move on – the fun is just beginning.   This is easy if you just follow the logic.
Value Innovation Organizations
Value Innovation OrganizationsValue Innovators deliver exceptional valueto the most important customer in the valuechain…....
Where does Value Innovation Fit? Ideation Stage:       The front end of innovation       Front end of the Stage-Gate proce...
Where does Value Innovation Fit? Commercialization Process (either an external or internal MIC):       Primary communicati...
Where does Value Innovation Fit?Day to Day Operations     Primary tool is Contextual Interviewing with those        who ar...
Value Innovation Organizations Gary Hamel’s Thesis1, 2: Companies fall into one of three categories:         Rule Maker [...
Value Innovation Organizations         Rule Maker, Rule Taker, Rule Breaker         examples     Industry              Rul...
Value Innovation Organizations  Reinvent Your Company - Hamel’s Ten Rules for  bubbling up Billion Dollar Ideas   Set Unre...
Value Innovation OrganizationsGary Hamel’s Rule Breakers and selected RuleMakers are generally Value Innovators        Ru...
Innovaro’s “Innovation Leaders”Considers 8 criteria to determine the Innovation Leaders:   Organizational culture and     ...
Innovaro’s “Innovation Leaders”        Sector               Innovation Leader     One to Watch 1       One to Watch 2     ...
Innovaro’s “Innovation Leaders”2005 Leaders Stock Performance            On average the groups stocks increased           ...
The Global Innovation 1000 – Booz and Co.© Value Innovations, Inc., 2004-2012. All rights reserved.
The Global Innovation 1000 – Booz and Co.1000 Companies – 3 ClassificationsNeed Seeker                   Company focuses o...
The Global Innovation 1000 – Booz and Co.© Value Innovations, Inc., 2004-2012. All rights reserved.
The Global Innovation 1000 – Top 20 R&D SpendersBooz Allen Hamilton, Strategy+Buainess. Global Innovation 1000, Winter, 20...
The Global Innovation 1000 – Booz and Co.Booz Allen Hamilton, Strategy+Buainess. Global Innovation 1000, Winter, 2011© Val...
The Global Innovation 1000 – Booz and Co.Booz Allen Hamilton, Strategy+Buainess. Global Innovation 1000, Winter, 2011© Val...
Innovation Killers Innovation Failure comes from companies that confuse    R&D and Technology with Innovation    Design ...
Value Innovation Organizations Key Questions for You and Your Company What is Your Company today? Rule Maker?             ...
Value Innovation Organizations  Value Innovators (Need Seekers) deliver  exceptional value to the most important  customer...
27 Value Innovation Organizations           Amazon        (US)      Enterprise Car            RE/MAX                      ...
Tesla Motors                                            The Tesla Roadster                                             Bu...
The Tesla Model S  1st 5 production cars off line, June 22, 2012  NUMMI Plant, Fremont, CA  5.5MM sq ft  Purchased for...
NoKero                                                             4 LEDs powered by a                                    ...
Ecologic Brands© Value Innovations, Inc., 2004-2012. All rights reserved.
Godrej Chotukool                                                                      Battery operated                    ...
ET3© Value Innovations, Inc., 2004-2012. All rights reserved.
ET3 Evacuated Tube Transport Technologies        "Space Travel on Earth”        Silent, low cost, safe, faster than jets...
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Value Innovation Tab 2

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Value Innovation Tab 2

  1. 1.  Let’s move on – the fun is just beginning. This is easy if you just follow the logic.
  2. 2. Value Innovation Organizations
  3. 3. Value Innovation OrganizationsValue Innovators deliver exceptional valueto the most important customer in the valuechain….all the time, every time. This: Fuels Sustainable, Profitable Growth Increases company value Creates Jobs© Value Innovations, Inc., 2004-2012. All rights reserved.
  4. 4. Where does Value Innovation Fit? Ideation Stage: The front end of innovation Front end of the Stage-Gate process Assures you are going to deliver exceptional value to the most important customer in the Value Chain (marketing homework IS done upfront)© Value Innovations, Inc., 2004-2012. All rights reserved.
  5. 5. Where does Value Innovation Fit? Commercialization Process (either an external or internal MIC): Primary communication tools Modified as you move through the Stage-Gate process Key part of the portfolio management review process Assures you are going to deliver exceptional value to the most important customer in the Value Chain regardless whether the MIC is internal or external© Value Innovations, Inc., 2004-2012. All rights reserved.
  6. 6. Where does Value Innovation Fit?Day to Day Operations Primary tool is Contextual Interviewing with those who are closest to the action Still go through 3 interviews Can be completed in a few weeksChanges focus from cost reduction to value created Focus on Cost Focus on Value Total cost ($)/Employee Gross Margin/Employee EPS in current quarter Average EPS over 5y© Value Innovations, Inc., 2004-2012. All rights reserved.
  7. 7. Value Innovation Organizations Gary Hamel’s Thesis1, 2: Companies fall into one of three categories:  Rule Maker [#1 in the market; Sets the rules for all other companies]  Rule Taker [Plays by the rules set by the Rule Maker]  Rule Breaker [Defines new rules] 1. Gary Hamel, “Strategy as Revolution”, Harvard Business Review, July-August, 1996, 69-82 2. Gary Hamel, “Leading the Revolution – How to Thrive in Turbulent Times by Making Innovation a Way of Life”, Plume, 2000© Value Innovations, Inc., 2004-2012. All rights reserved.
  8. 8. Value Innovation Organizations Rule Maker, Rule Taker, Rule Breaker examples Industry Rule Maker Rule Taker Rule Breaker Procter ColgateConsumer And Palmolive,Packaged Goods Gamble UnileverConsumer Sony, Chinese SamsungElectronics Matsushita Company? BritishUK Airline British Midland Virgin Group AirwaysIndian Airlines Jet Airways Indian Airlines Kingfisher Hoover,Vacuum Cleaner Dyson Ltd Dyson Ltd Electrolux© Value Innovations, Inc., 2004-2012. All rights reserved.
  9. 9. Value Innovation Organizations Reinvent Your Company - Hamel’s Ten Rules for bubbling up Billion Dollar Ideas Set Unreasonable Offer and Open Market for Expectations Capital Stretch Your Business Open up the Market for Definition Talent Create a Cause, not a Lower the Risks of Business Experimentation Listen to New Voices Make Like a cell – Divide and Divide Design an Open Market for Pay Your Innovators Well – Ideas Really Well Gary Hamel, “Reinvent Your Company, 10 Rules for making billion- dollar business ideas bubble up from below”, Fortune, June 12, 2000, pp 98-118© Value Innovations, Inc., 2004-2012. All rights reserved.
  10. 10. Value Innovation OrganizationsGary Hamel’s Rule Breakers and selected RuleMakers are generally Value Innovators  Rule Makers  Procter and Gamble, Samsung  Rule Breakers  RE/MAX, Southwest, Virgin GroupYou can use Hamel’s classification to help identifyValue Innovation Companies© Value Innovations, Inc., 2004-2012. All rights reserved.
  11. 11. Innovaro’s “Innovation Leaders”Considers 8 criteria to determine the Innovation Leaders: Organizational culture and Average margin per product, supporting structure service or customer Strategic focus on innovation Investment in innovation and its role in driving corporate related activities (e.g., R&D growth and marketing) Number of Major new product Brand value and human capital launches and relative success growth ratios Growth in revenues, profits Peer review from within sector and market cap “Innovation Leaders”, Innovaro, London: Published bi- annually for last 10 years. Tim Jones, was the Principal© Value Innovations, Inc., 2004-2012. All rights reserved.
  12. 12. Innovaro’s “Innovation Leaders” Sector Innovation Leader One to Watch 1 One to Watch 2 Aerospace Honeywell Rolls Royce EADS Airlines Virgin Atlantic Singapore Airlines British Airways Automotive Toyota Renault Honda Banking RBS Bank of America HSBC Chemicals DSM BASF Rohm and Haas Consumer Electronics Samsung LG Apple Freight UPS FedEx TPG Energy bp ExxonMobil Total Fashion Retail H&M PPR George Food and Beverage PepsiCo Danone Cadbury Schweppes Food Retail Tesco Carrerfour Ahold Household Products Reckitt Benckiser P&G Kimberley Clark IT Hardware Logitech Acer 3Com IT Software Microsoft Google Adobe Media Time Warner Pixar BBC Worldwide Medical Medtronic Smith and Nephew Boston Scientific Office Equipment Canon Fuji Xerox Konica Minolta Pharmaceuticals Novo Nordisk Genzyme Eli Lilly Sports and Leisure Adidas Nike Speedo Telecommunications Nokia ?? BT Juniper© Value Innovations, Inc., 2004-2012. All rights reserved.
  13. 13. Innovaro’s “Innovation Leaders”2005 Leaders Stock Performance On average the groups stocks increased 48.6% in two years Company Stock Price Inc (%) 2005-2006 Apple 163 Google 139 Rolls Royce 89 Toyota 64 Canon 61 Tim Jones, Innovation Update, February, 2007© Value Innovations, Inc., 2004-2012. All rights reserved.
  14. 14. The Global Innovation 1000 – Booz and Co.© Value Innovations, Inc., 2004-2012. All rights reserved.
  15. 15. The Global Innovation 1000 – Booz and Co.1000 Companies – 3 ClassificationsNeed Seeker Company focuses on identifying unmet, unarticulated needsMarket Reader Focuses on the market. Looks for trends (price, growth), competitors’ moves, buys Frost and Sullivan reportsTechnology Follows direction suggested by theirDriver technological capabilities, leverage their R&D investment to drive breakthroughs and improvements© Value Innovations, Inc., 2004-2012. All rights reserved.
  16. 16. The Global Innovation 1000 – Booz and Co.© Value Innovations, Inc., 2004-2012. All rights reserved.
  17. 17. The Global Innovation 1000 – Top 20 R&D SpendersBooz Allen Hamilton, Strategy+Buainess. Global Innovation 1000, Winter, 2011© Value Innovations, Inc., 2004-2012. All rights reserved.
  18. 18. The Global Innovation 1000 – Booz and Co.Booz Allen Hamilton, Strategy+Buainess. Global Innovation 1000, Winter, 2011© Value Innovations, Inc., 2004-2012. All rights reserved.
  19. 19. The Global Innovation 1000 – Booz and Co.Booz Allen Hamilton, Strategy+Buainess. Global Innovation 1000, Winter, 2011© Value Innovations, Inc., 2004-2012. All rights reserved.
  20. 20. Innovation Killers Innovation Failure comes from companies that confuse  R&D and Technology with Innovation  Design with Design Strategy  Consumer Marketing with Consumer Understanding  “Out-of-the-box” Thinking with InnovationBusiness Week; April 1, 2005; A Creative Corporation Toolbox© Value Innovations, Inc., 2004-2012. All rights reserved.
  21. 21. Value Innovation Organizations Key Questions for You and Your Company What is Your Company today? Rule Maker? Need Seeker? Rule Taker? Market Reader? Rule Breaker? Technology Driver? What do You want to be tomorrow? What do Value Innovation Organizations do?© Value Innovations, Inc., 2004-2012. All rights reserved.
  22. 22. Value Innovation Organizations Value Innovators (Need Seekers) deliver exceptional value to the most important customer in the value chain….all the time, every time. This: Fuels Sustainable, Profitable Growth Increases company value Creates Jobs© Value Innovations, Inc., 2004-2012. All rights reserved.
  23. 23. 27 Value Innovation Organizations Amazon (US) Enterprise Car RE/MAX Rental (US) International (US) Apple(US) FedEx (US) Reliance (India) Carbon Motors FoldedPak (US) RyanAir (UK) (US) CNN (US) Google (US) Samsung (Korea) Cirque de Soleil Nissan (Japan) Southwest (US) (Canada) DSM (Holland) NetJets (US) Tesla (US) Dyson Ltd (UK) Nokero (US) UPS (US) EasyJet (UK) Pixar (US) Virgin Group (UK) eBay (US) P&G (US) Whirlpool (US)© Value Innovations, Inc., 2004-2012. All rights reserved.
  24. 24. Tesla Motors The Tesla Roadster  Build the brand  Show electric vehicles are exciting  Production stopped Dec. 31, 2011  2,100 produced (in 30 countries)© Value Innovations, Inc., 2004-2012. All rights reserved.
  25. 25. The Tesla Model S  1st 5 production cars off line, June 22, 2012  NUMMI Plant, Fremont, CA  5.5MM sq ft  Purchased for $42MM (<5% of book value) Purchase Price Range Price ($K) 160 miles 49,995 320 miles 69,995 Forecast Production Year Units 2012 6,000 2013 20,000 Tesla S© Value Innovations, Inc., 2004-2012. All rights reserved.
  26. 26. NoKero 4 LEDs powered by a photovoltaic: Replaces candles and kerosene lampshttp://www.nokero.com/videos.php?id=3© Value Innovations, Inc., 2004-2012. All rights reserved.
  27. 27. Ecologic Brands© Value Innovations, Inc., 2004-2012. All rights reserved.
  28. 28. Godrej Chotukool Battery operated refridgerated case Chotukool Portable Refrigerator Draft 1 Low Value to Consumer High Purchase Price 1 2,320 INR/unit Utility/Usefulness 2 Meets requirements - Yes/No Operating Cost 3 INR/week Reliability 4 Downtime - min/week Payment Terms 5 Customer survey (1 to 10 scale) Portability 6 Customer survey (1 to 10 scale) Availability 7 Yes/No Quality 8 Customer Perception (1 to 10 scale) Design 9 Customer survey (1 to 10 scale) 1.0 3.0 5.0 7.0 9.0 Competition Chotukool© Value Innovations, Inc., 2004-2012. All rights reserved.
  29. 29. ET3© Value Innovations, Inc., 2004-2012. All rights reserved.
  30. 30. ET3 Evacuated Tube Transport Technologies  "Space Travel on Earth”  Silent, low cost, safe, faster than jets  Electric.© Value Innovations, Inc., 2004-2012. All rights reserved.

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