Predictive Innovation Method
How to improve ROI, increase profits,
and decrease risk.
by Mark Frazier
+ 1 312-239-8656
www.PredictiveInnovation.com

Why use Predictive Innovation?
Increase profits
Reduce risk
Neutralize competition
Start creating innovations BEFORE needed
Solve seemingly impossible problems
Accurately evaluate Return on Innovation

Ways to Use Predictive Innovation
Find Solutions
Create Business Strategies
Reveal Entire Patent Space

Ways to Use Predictive Innovation
Find Solutions
Process improvement
Engineering Problem
Conflict Resolution

Ways to Use Predictive Innovation
Create Business Strategies
Create higher value products & services
Improve business models
Neutralize competition
Reduce risk

Ways to Use Predictive Innovation
Reveal Entire Patent Space
Protect your intellectual property
Find ways around other's patents

What is Innovation?
Best definition of innovation is:
“Satisfy customers' unmet desires”

Satisfy customers' unmet desires
Do something new or better
Do something someone wants done
Make money doing it

7 Essential Steps to Innovation
Reveal Communicate
Make new
emerging value to
product
expectations customers
Convert Deliver
Generate
ideas into new
ideas
designs product
Get and use
feedback

Seven Qualities
Efficient
Low-Risk
Controllable
Repeatable
Competitive
Reliable
Just-in-time

Seven Qualities
Produce large number of high quality results with low effort and
Efficient
minimal cost
Low-risk High success with low loss. Ideally, all new products are
appreciated and purchased by customers
Controllable Where and when needed, new product ideas are produced on-
demand
Repeatable Any committed and smart team produces the desired results
without special talent or particular individual
Competitive Deliver new products that outperform all competition
Reliable Every time new products are needed ideas are created and
implemented
Just-In-Time Introduce products to market exactly when customers begin to
want it, no earlier & no later

Combine 7 Steps & 7 Qualities
Reveal emerging expectations Efficient
Generate ideas Low-Risk
Convert ideas into designs Controllable
X = Complete
Make product Repeatable Innovation
System
Communicate value Competitive
Deliver product Reliable
Get feedback & improve Just-in-time
+ Give all participants compelling reasons to use the system
+ Match the companies other processes and approaches

Innovation is...
“Satisfying customers' unmet desires”

How to satisfy a desire
Customers want to perform a task such as:
Listening to music
Cooking
Resolving a legal dispute
Falling in love

Desires relate to a task
Many different desires are related to a task
Performing the task satisfies the desires
Such as listening to music:
Eliminate boredom
Feel happy
Share an experience with a friend

Desires are subjective
Subjective desires are:
Difficult to express
???
Personal
Often change
Often impossible to measure
Difficult to satisfy

Covert Desires into Outcomes
Subjective desires can be translated into
objective outcomes.
Outcomes can be observed and measured
???
Y
Z
X

Tasks have fixed set of outcomes
Task requires complete set of outcomes
Outcomes never change for a task
Only criteria to meet an outcome can change
WHEN A and B and C THEN Task is Completed

Set of outcomes
Most tasks can be described with
approximately 7 high level outcomes
Split complex tasks into sub-tasks

Outcome elements
Outcomes consist of 7 element types
C
I T O
A E
R

15 Alternatives
For every element there are 15 types of
innovation alternatives
+ - = > <
1
m
∞

105 Alternatives per Outcome
Each outcome has over 105 ways to innovate.
There can be many innovations for each way
1 m ∞
+ - = > < + - = > < + - = > <
I
O
T
C
R
E

Complete Innovation Space
On average 735 general ways to innovate
for each task
Minimum of 105
Outcomes x Elements x Alternatives = Ways to Innovate
7 X 7 x 15 = 735

Additional Areas of Innovation
9 tasks related to each primary task
8 customer interactions
Those provide an additional 7,560 areas of
innovation within the same market

87% of Value Missed
Most industries only cover 13% of the
possible innovation space.
Most businesses are variations on the same
idea. This quickly causes price competition.
87% Free Space
“Blue Oceans”

Less than 1% of Innovation
Potential
Most products or services only address one
alternative for 2-3 elements of 1-2
outcomes.
Only 0.82% of the innovation potential.
Outcomes x Elements x Alternatives = Ways to Innovate
7 X 7 x 15 = 735 total way
2 X 3 x 1 = 6 covered
6 / 735 = 0.82%

Missed Value Increases Risk
0.82% of potential covered by most
innovations. Value is left on the table.
Less than 20% of options are ever explored.
Many higher value lower risk options missed
Large openings for disruptive innovation.
{
Risk of
Disruptive Total
Innovation
Covered
Explored

Value of Predictive Innovation
Accurate metric of value and risk for an
innovation investment.
Provides map to collect the highest value
as quickly as possible with the least risk.
Describes what to offer, how to develop it,
plus strategies for maximizing value.

Contact Us
Training
Consulting
www.PredictiveInnovation.com
+1 312-239-8956