Haas Innovation Challenges Presentation

Adam Richardson
Innovation X: http://www.innovationxbook.com
Twitter: @richardsona
Blog: http://www.frogdesign.com/amphibious
HAAS SCHOOL OF BUSINESS
March 3, 2010

We are a global innovation firm.460 people / 32 nationalities / 40 years of experience
We help the world’s leading companies create and bring to market meaningful products, services, and experiences that improve people’s lives.
Our multidisciplinary process reveals valuable consumer and market insights and delivers lasting, humanizing solutions across multiple technologies, platforms, and media.
2
Company overview

5
In 1969 what we did was…
Sketching
Rendering
Modelmaking
Manufacturing Support

6
Company overview
Today: A comprehensive range of innovation capabilities

7
Company overview
Our process turns insights into solutions

Innovation Challenges

Where do innovative ideas come from?

From genius?

11
From customers?
People don’t want a drill-bit.
They want a hole!
- Theodore Levitt

12
From technology?

13
For anyone bright, creative and ambitious enough to want to make a huge impact in their organization.
Dan Pink, author A Whole New Mind
A brilliant design and business book that gives tools for transforming innovation cultures.
Michael Schrage, MIT Sloan School of Business
Hits upon a global, macro trend that is impacting all corporations, large and small.
Michael Mendenhall, CMO, Hewlett-Packard
http://www.innovationxbook.com

14
Common challenges
Commoditization: Market stagnation, hyper-competition, price pressure, few possibilities for differentiation
Dealing with Risk: Trapped in near-term sure-bet thinking, creating an innovation portfolio
Disconnected from Customers: Too removed from really understanding customers’ real motivations, behaviors and needs. Existing research not giving the necessary answers.
Emerging Markets: Big growth opportunities but hard to engage, need to adjust offerings to make them work, understand cultural and economic factors

1. Commoditization

Intel Point-of-Sale

18
Intel saw an opportunity to bring excitement to a dull segment that it had no previous experience in

2. Dealing With Risk

21
If you’re not prepared to be wrong, you will never come up with anything new.- Sir Ken Robinson

Don’t worry about other people stealing your ideas.
If your ideas are any good, you’ll have to ram them down people’s throats.
Howard Aiken, IBM Engineer
22

“It’s such a fine line between stupid and clever.”- David St. Hubbins
23

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Our traditional research told us that there was a total available world market of about two million units for a $499 phone; we sold over two million units in the UK alone.
If you want to be a leading company, you have to create the products that create your destiny.
Geoffrey Frost, former CMO, Motorola

25
Manage the Innovation Portfolio
“Lower Risk”
“Higher Risk”
Incremental
(1-2 years
advantage)
Radical
(5-10 years
advantage)

26
Hewlett-Packard

27
What is HP’s business?
1939
Oscilloscopes
1999
Laptops
Desktop PCs and workstations
Information appliances
Inkjet printers and AIO’s
Laser printers and MFPs
Copiers
Calculators
Digital cameras
PDAs
Enterprise servers
Enterprise storage
Enterprise software
Networking hubs
Thin clients
Lab and scientific equipment
2009
Laptops & tablet PCs
Desktop PCs and workstations
Inkjet printers and AIO’s
Laser printers and MFPs
Copiers
Calculators
PDAs
Scanners and faxes
Monitors
Home servers
Media centers
Gaming systems
Photo printer services
Enterprise servers
Enterprise storage
Enterprise IT services
Utility computing
Enterprise software
Networking
Videoconferencing
Logo & graphic design services
In-store photo printing
Commercial printers
Commercial presses
Online backup
Cloud services

29
HP TV’s

30
How do you become a $100M business in 3 years in a saturated market?

3. Customer Insight

32
Design research is not market research, but complements it
Market Research
Culls broad market trends
Scripted
Verbal
Weights the outliers
Yields “consumer data”
Design Research
Gathers specific anecdotes
Improvisational
Non-verbal & observational
Loves the outliers
Drives the user experience

Ethnographic Research
We used a diary study to engage consumers over an extended period to better understand how healthcare decisions ﬁt into their lives. We followed the diary studies with contextual in home interviews.
Our two-fold approach combined diary studies, to give us a better understanding of decision making processes, and in-home interviews, to give us a better understanding of the social arrangements. By conducting the diary study first, we became very familiar with our subjects, both their decision-making processes and attitudes towards health, before we met them in person.

Health Care
Doctors no longer serve as a central guide or connection to the healthcare system. Consumers feel that they know more about their individual health situation than their doctor.

4. Emerging Markets

Case Study: Project Masiluleke

HOW DOES IT WORK?
The service works by embedding health care messages along side ‘Call-Me-Backs’ a type of free messaging that is unique to Africa and used primarily by low income people in poor communities. Call-Me-Back messages are limited to a small number of characters, leaving room for additional information that we are using to promote awareness of support services. This messaging space can also contain direct links to toll free numbers and messaging services.

4x
Number of calls into National AIDS Helpline
5,000
Calls per day

There is existing demand for self-testing solutions.
Self test kits are available at many pharmacies but cost $18.
Healthcare workers routinely steal them from their clinics.
None have been designed to appeal to South Africans specifically.

Test Kit Packaging:
Package components may be locally made and customized for the region.
Diagnostic materials are off-the-shelf, and proven effective. By leaving the pouches untouched, the test is deemed more trustworthy by the South African population as well as saving the expense of custom packaging.
All elements of the package serve two purposes. The skin of the package features inspirational content and the test instructions while the red end-caps hold the vial as the test is processing.
Communities may participate in assembling the kits, which builds local pride and a stong sense that they can help themselves.

Test Kit Instructions (Zulu):

44
Everybody wants to be be innovative

SIMPLE PROBLEMSProblem and solution are known
COMPLEX PROBLEMSProblem is known, solution is not
WICKED PROBLEMSNeither problem nor solution are known

The only way to understand the problem is by creating solutions
Stakeholders don’t agree on what the problem is or what solutions might be
There is no stopping rule (how you know when you’re done and successful

X-Problems

Innovation X Framework

Immersion

Multi-Vector Research
Customer Research
Competitive Research
Trends
Core Insights
Comparative Research
Company Legacy
Brand
Technology
Retail
52

Core Insights
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Core Competencies
Provides customer benefits
Hidden know-how
Can be leveraged widely
Core Insights
Forward-looking understanding of customer needs
Hidden “know-why”
Logical but unexpected

Razor Blade Arms Race

Convergence

57
Zipcar Ecosystem

Divergence

59
Rethinking your business domain

Adaption

61
HP Touchsmart

62
Innovation X: http://www.innovationxbook.com
Twitter: @richardsona
Blog: http://www.frogdesign.com/amphibious

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Haas Innovation Challenges Presentation

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