From Innovation To Profit


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As companies begin to look beyond the latest global economic crisis, many are refocusing on growth and innovation has once again become a priority.

What strategies are the most successful companies employing to tap into new opportunities and overcome business barriers? When and how does a leader’s input have the most impact? When should management give employees the freedom to experiment?

About The AIPMM
The Association of International Product Marketing and Management (AIPMM), founded in 1998, promotes worldwide excellence in product management education and provides training, education, certification and professional networking opportunities. With members in 65 countries, the AIPMM is the Worldwide Certifying Body of product team professionals and offers globalized trainings and credentials localized for specific markets designed to meet the challenges of a constantly changing business landscape. As the only professional organization that addresses the entire product lifecycle from inception to obsolescence in any industry, the AIPMM supports strategic partners with offerings in Europe, the Middle East, Australia, and SouthEast Asia, as well as North America.

AIPMM Membership benefits include the national Product Management Educational Conference, regional conferences, the Career Center, peer Forums, tools, templates, publications and eligibility to enroll in the Certification Programs. The Agile Certified Product Manager® (ACPM), Certified Product Manager® (CPM), Certified Product Marketing Manager® (CPMM), Certified Brand Manager® (CBM), and Certified Innovation Leader (CIL) programs allow individual members to demonstrate their level of expertise and provide corporate members an assurance that their product professionals are operating at peak performance.
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From Innovation To Profit

  1. 1. Innovation to Profit<br />Hector Del Castillo<br />AIPMM<br /><br /><br />
  2. 2. Sponsors<br />Thank You Sponsors !!!<br />
  3. 3. About Hector<br />Hector Del Castillo<br />Expertise:  10+ years in Product Management and Marketing<br />Passion: Transforming products and services to profit and <br /> giving career advice<br />Professional Background:  <br />Launched 25 high technology products and features resulting in over $20M in achieved global sales revenue. <br />Certified Product Manager (CPM), and Certified Product Marketing Manager (CPMM)<br />Current Employment:  <br />Director, Program Development at MEI Technologies, Inc.<br />Senior Product Marketing Manager and Trainer at AIPMM<br />Education:  <br />Master of Science in Electrical Engineering from the University of California at Santa Barbara and the University of Texas at El Paso<br />Bachelor of Science in Electrical Engineering from the University of Texas at El Paso<br /><br />3<br />
  4. 4. What We Will Discuss<br />What is innovation<br />Why your company needs innovation<br />How to transform innovation to profit<br />Tips to foster innovation<br />Ways to reduce risk<br />
  5. 5. Poll<br />What are the biggest barriers to fostering innovation within your company?<br />Poor management<br />Insufficient investment <br />Lack of innovative people<br />Inadequate planning<br />Cannot afford the risk<br />
  6. 6. Fortune’s Most Innovative Companies<br />Source: FORTUNE Magazine, 22 Mar 2010<br />
  7. 7. IBM 2010 Global CEO Study<br />Fostering innovation to manage increasing complexity is the most critical success factor for company executives<br />Most CEOs believe that the business environment is increasingly volatile, uncertain and complex. <br />Eight in ten CEOs expect their environment to grow significantly more complex.<br />Only 49 percent believe their companies are equipped to manage complexity effectively.<br />
  8. 8. McKinsey 2010 Global Survey<br />Innovation has once again become a priority for company executives.<br />84% - innovation is extremely or very important to their companies’ growth strategy. <br />50% - need a more robust pipeline of big ideas<br />Only 55% - innovate better than their peers<br />
  9. 9. What is Innovation?<br />“I’ll be happy to give you innovative thinking.<br />What are the guidelines?”<br />
  10. 10. Defining Innovation<br />All these experts say:<br /> Innovation is complex, involves risk, and its outputs are unpredictable.<br />Innovation is “the commercial or industrial application of something new—a new product, process or method of production; a new market or sources of supply; a new form of commercial business or financial organization.” Schumpeter, Theory of Economic Development <br />Innovation is the intersection of invention and insight, leading to the creation of social and economic value. Council on Competitiveness, Innovate America, National Innovation Initiative Report, 2004 <br />Innovation covers a wide range of activities to improve firm performance, including the implementation of a new or significantly improved product, service, distribution process, manufacturing process, marketing method or organizational method. European Commission, Innobarometer 2004 <br />Innovation—the blend of invention, insight and entrepreneurship that launches growth industries, generates new value and creates high value jobs. The Business Council of New York State, Inc., Ahead of the Curve, 2006 <br />The design, invention, development and/or implementation of new or altered products, services, processes, systems, organizational models for the purpose of creating new value for customers and financial returns for the firm. Committee, Department of Commerce, Federal Register Notice, Measuring Innovation in the 21st Century Economy Advisory, April 13, 2007 <br />An innovation is the implementation of a new or significantly improved product (good or service), or process, a new marketing method, or a new organizational method in business practices, workplace organization or external relations. Innovation activities are all scientific, technological, organizational, financial and commercial steps which actually, or are intended to, lead to the implementation of innovations. OECD, Oslo Manual, 3rd Edition, 2005 <br />Innovation success is the degree to which value is created for customers through enterprises that transform new knowledge and technologies into profitable products and services for national and global markets. A high rate of innovation in turn contributes to more market creation, economic growth, job creation, wealth and a higher standard of living. 21st CenturyWorking Group, National Innovation Initiative, 2004<br />Source: ‘Measuring Innovation and Intangibles: A Business Perspective’, Science and Technology Policy Institute of the Institute for Defense Analyses (IDA), 3 Dec 2008.<br />
  11. 11. Innovation is…<br />A change in the thought process for doing something, or the useful application of new inventions or discoveries.<br />An incremental emergent or radical and revolutionary changes in thinking, products, processes, or organizations. <br />Requires a formal process to capture ideas and find ways to implement them.<br />
  12. 12. Myth or Fact?<br />Innovation requires risk that most companies cannot afford.<br />Myth<br />
  13. 13. Harnessing Innovation<br />Ideas are not enough; you must find a way to integrate them into your company’s culture, strategy, processes, and portfolio… and make a profit!<br />13<br />
  14. 14. Product Management Life Cycle<br />Source: AIPMM, © 1998-2011, All Rights Reserved.<br />
  15. 15. Product Management Framework<br />
  16. 16. Innovation Funnel<br />7 Steps:<br />Gather<br />Conceive<br />Analyze<br />Build<br />Test<br />Adopt<br />Deliver<br />Ideas<br />Outcomes<br />
  17. 17. Integrating Innovation<br />
  18. 18. Marketing Mix Innovation<br />Product<br />Price<br />Promotion<br />Place [Distribution]<br />People<br />Process<br />Physical Proof<br />
  19. 19. Online DVD Rental Market<br />
  20. 20. Myth or Fact?<br />In this economy, companies need innovation to survive. <br />Fact<br />
  21. 21. Benefits of Innovation<br />Improved business efficiency through optimized practices<br />Shortened time-to-market through improved tools<br />Enhanced market penetration through adoption of disruptive technologies<br />Superior product delivery and pricing<br /> Increased product value for customers<br /> Improved profitability for your company<br />
  22. 22. Tips for Fostering Innovation<br />Adopt a formalized process to gather, capture and organize ideas.<br />Create alignment within your product team and company.<br />Communicate the importance of innovation.<br />Encourage innovation throughout the product life cycle.<br />Gather and capture ideas internally and externally.<br />Promote open communication and problem solving.<br />Empower leaders to be creative and propose solutions.<br />Create a relaxed, fun, and openenvironment.<br />Recruit and reward innovative people.<br />Benchmark your products and processes with your competitors.<br />
  23. 23. What is the most important task for a Product Manager?<br />Maximize revenue for products.<br />Lead product development activities.<br />Reduce development cost for products.<br />Maximize profit for products.<br />Serve as the product CEO.<br />
  24. 24. Conclusion<br />Innovation is essential for your company’s survival.<br />Innovation can result in incremental emergence or radical changes in business model, strategy, processes, technologies, tools, or products. <br />There are many options to foster innovation while reducing risk.<br />Innovation can significantly increase your company’s value and profitability by focusing on enhancing your products’ value.<br />
  25. 25. Join AIPMM!<br />Network with thought leaders.<br />Expand your knowledge and soft skills.<br />Learn best practices and methodologies.<br />Opportunities to lead activities.<br />Get certified; validate your expertise!<br />Execute your professional career plan.<br />
  26. 26. AIPMM Certifications<br />AIPMM offers 3 internationally recognized certifications for Product Managers, Product Marketing Managers and Brand Managers to validate your expertise:<br /><ul><li>Certified Product Manager (CPM)
  27. 27. Certified Product Manager (CPMM)
  28. 28. Agile Certified Product Manager (ACPM)</li></li></ul><li>Why Get Certified?<br />Internationally recognized across industries<br />Provides mark of distinction that sets you apart<br />Provides external validation of your expertise<br />Demonstrates commitment to your profession<br />Improves opportunity for career advancement<br />Connects you with experts and thought leaders<br />May persuade your company to provide or expand professional development opportunities<br />
  29. 29. Useful Links<br />Association of International Product Marketing & Management<br />Presentation Slides:<br />Website:<br />Articles:<br />Blogs:<br />Webinars:<br />Certification:<br />Product Management Framework Brochure:<br />
  30. 30. Innovation to Profit<br />Hector Del Castillo<br />AIPMM<br /><br /><br />