Why Your Idea Is Worth Nothing

Why Your Idea Is Worth Nothing ... and how to create growth plans that work. Tony Ulwick September 2011 © Strategyn Consulting, LLC

Innovation Begins with an Idea

Brainstorming

There Are No Bad Ideas

Open Innovation

IBM Idea Jam: 46,000 Ideas

Ideas Drive Innovation

Audience Question 1:Do you agree or disagree that this thinking drives thetypes of innovation practices your company usestoday?AgreeDisagree

Endless Supply of Bad Ideas

It is exceptionally hard to have an ideathat will accelerate a company’s growth.

“PC jr is a ﬂop.” WSJ January 1984

Your Idea Is Worth Nothing

Your Idea Is Worth Nothing Market Needs Strategy

Isn’t in anattractive market

Doesn’t address the right needs

Isn’t strategically sound

Your Idea Is Worth Nothing

Growth Is Left to Chance Idea

Growth Is Left to Chance Idea Market

Growth Is Left to Chance Idea Market Needs

Growth Is Left to Chance Idea Market Needs Strategy

Eliminate the Chance Idea

Eliminate the ChanceMarket Idea

Eliminate the ChanceMarket Needs Idea

Eliminate the ChanceMarket Needs Strategy Idea

Creating Ideas for Growth

Creating Ideas for Growth Market Needs Strategy

What is an Attractive Market?

Financially Attractive

Market potential is pricetimes products times buyers.

Traditional Method Market potential is pricetimes products times buyers. Philip Kotler Kellogg, Marketing Management

The iPod Market

iPod Growth220%180%140%100%60%20%-20% 0% 06Q1 06Q3 07Q1 07Q3 08Q1 08Q3 09Q1 09Q3 10Q1 10Q3 11Q1 11Q3 Source: Apple Quarterly Reports

“The market reception for Zune is so disappointing that many retailers have even stopped selling it altogether.” Marketwatch July 29, 2009

Audience Question 2:What do you think the chances are that any given ideawill be in a market that is ﬁnancially attractive to thecompany?less than 5%6% - 10%11% - 25%26% - 50%Over 50%

Traditional Markets1948 1962 1984 2001

Products = past

Customers don’t wantiPods any more than theywant CDs or 8-track tapes.

Job:Listen to Music

Market Job Executor = +

Market potential is number of job executors timeswillingness to pay to get the job done better.

Get a Job Done Better1948 1962 1984 2001

Get a Job Done Better1948 1962 1984 2001 2005

80 million90,000 per day

What is a Customer Need?

What is a Customer Need? 95% Don’t have deﬁnition MIT Sloan Management Review May 2008

Voice of the Customer

Focus on the Job

50 - 150Customer Metrics

Quickly Predictably Successfully

Speed Stability Output

150 BC 1670 1940 1985 1999

0% Growth150 BC 1670 1940 1985 1999

Customers don’t want radios any more than they wantmegaphones or smoke signals.

Communicate in adangerous situation

Minimize the time it takes to conﬁrm receipt

Minimize the time it takes to conﬁrm receipt Direction Metric Object of Control

Minimize the time it takes to conﬁrm receipt of a communicationMinimize the likelihood that the communication is interruptedMinimize the likelihood of interference when communicatingIncrease the likelihood that the communication is discreetMinimize the likelihood that a message is misunderstoodMinimize the time it takes to establish a record of the communicationMinimize the likelihood that the communication is intercepted

Market Opportunities 10.0 7.5Satisfaction 5.0 2.5 0 0 2.5 5.0 7.5 10.0 Importance

IMP SAT OPP 7.3 3.2 11.4Minimize the time it takes to conﬁrm receipt

From 0% to 18% Growth “ODI was used to create two of our bestselling Bob Pennisi radios to date.”Advanced Technology Center Dr. Pennisi is currently a senior Strategyn professional

Audience Question 3:What do you think the chances are that any given ideawill better satisfy a signiﬁcant number of the right 50to 150 needs in a market?less than 5%6% - 10%11% - 25%26% - 50%Over 50%

Product Strategy

Low Cost BreakthroughDisruption or Radical ProductSustaining Improvement

20% 10%50% 20%

10% 50%30% 10%

Audience Question 4:What do you think the chances are that any given ideawill have correctly chosen the right product strategy?less than 5%6% - 10%11% - 25%26% - 50%Over 50%

The Market Decides, Not You Low Cost Breakthrough ProductSustaining Disruption or Radical Improvement

Opportunities Dictate Strategy 10.0 7.5 Satisfaction 5.0 2.5 0 0 2.5 5.0 7.5 10.0 Importance

10.0 7.5Satisfaction 5.0 2.5 0 0 2.5 5.0 7.5 10.0 Importance

Product Improvement 10.0 Existing Platform 7.5Satisfaction 5.0 2.5 0 0 2.5 5.0 7.5 10.0 Importance

Breakthrough - Radical 10.0 New Platform 7.5Satisfaction 5.0 2.5 0 0 2.5 5.0 7.5 10.0 Importance

Sustaining 10.0 Existing Platform 7.5Satisfaction 5.0 2.5 0 0 2.5 5.0 7.5 10.0 Importance

Low Cost Disruption 10.0 7.5Satisfaction 5.0 2.5 0 0 2.5 5.0 7.5 10.0 Importance

Low Cost Disruption 10.0 New Platform 7.5Satisfaction 5.0 2.5 0 0 2.5 5.0 7.5 10.0 Importance

+Inability of Current Platform to Address Needs Low Cost Breakthrough Disruption or Radical Product Sustaining Improvement - - + Dissatisfaction Getting the Job(s) Done

Eliminate the ChanceMarket Needs Strategy

Eliminate the ChanceMarket Needs Strategy Idea

Idea Types

Idea TypesPlatform Biz Model Features Go To Market

Sequence 1 2 3 4Platform Biz Model Features Go To Market

Criteria to Judge = Metrics Metrics, Cost, Risk

ExpertsDomain Technical

Triggers

Triggers 26 41 14Platform Biz Model Features

Idea GenerationType Experts Criteria Triggers Minimize the time it takes to conﬁrm receipt

Growth Is Left to Chance Idea Market Needs Strategy

Growth Is Left to Chance Idea Market Needs Strategy 25% x 5% x 25% = .003%

Predictable Growth$500M

Predictable Growth$500M 95%

Predictable Growth$500M 95% 95%

Predictable Growth$500M 95% 95% Idea

86% Success 5x Better Source: Strategyn Track Record Study. Sample size: 22 launches. 19 declared a successes by the companies based on revenue, customer satisfaction, or industry awards. Study available upon request.

Companies 43Products 49Pipeline 28Launched 21Success 18Rate 86% Source: Strategyn Track Record Study. Sample size: 21 launches. 18 declared a successes by the companies based on revenue, customer satisfaction, or industry awards. Study available upon request.

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Why Your Idea Is Worth Nothing

by Strategyn on Sep 28, 2011

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