Innovation By 10

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Ten observations, provocations, and questions on design and innovation - presentation by Tim Leberecht, frog design, at Re:Publica, Berlin, April 15, 2010

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Innovation By 10

  1. Innovation by 10 Re:Publica 2010
  2. The origins of frog 2
  3. 3
  4. (map of Silicon Valley)
  5. We are a global innovation firm. We help the world’s leading companies create and bring to market meaningful products, services, and experiences. Our cross-disciplinary process reveals valuable consumer and market insights and delivers lasting, humanizing solutions across multiple technologies, platforms, and media. - 40 years’ experience in developing breakthrough products and services - More than 3,000 products and services for more than 300 of the Fortune 500 companies - Won more than 100 industry awards (CES Innovation, IDEA, and others) - Our software is in more than 500,000,000 devices - Our clients (in 2009) were: 7 of the top 10 mobile operators and 9 of the top 10 OEMs; 50 of Millward Brown World’s Top 100 Brands; 24 of BusinessWeek’s Top 50 Innovative Companies; 16 of Fast Company’s Top 50 Innovative Companies © 2007 frog design. Confidential & Proprietary. 5
  6. 1 Innovation, really?
  7. Innovation back then….
  8. Innovation today
  9. Innovation back then….
  10. Innovation today
  11. nnovation back then…. © 2007 frog design. Confidential & Proprietary. 11 1
  12. Innovation today
  13. Innovation back then…. 14
  14. THE BIG SPACE / JC PENNEY RFID-based digital retail concept Innovation today © 2009 frog design. confidential & proprietary. March 2009 42
  15. Innovation back then…. 16
  16. Innovation today 17
  17. Innovation back then…. 18
  18. Innovation today
  19. Is he an innovator?
  20. Or he?
  21. Or he?
  22. Or they?
  23. Or he?
  24. 2 Innovation…why?
  25. INNOVATION TRIGGERS Margin Erosion “We operate in a mature industry with a mature product portfolio and our margins are beginning to disappear.” Internal Churn “Our new ideas are stuck in the mud of internal planning and review cycles.” Competition “New competitors are moving into our space and we need to do something to defend our market position.” Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies, etc.) but we don’t know where and how to start.” Mining IP “We have so much IP but we cannot convert it into products that resonate with consumers.” Time-to-Market “Our linear product development process doesn’t allow for nimbleness and trial and error.” Customer Insight “Our product ideas are driven by science and engineering but fail to recognize latent or unarticulated customer needs.” Sustainability “We got lucky once or twice. How do we repeat our market success year after year?”
  26. INNOVATION TRIGGERS Margin Erosion “We operate in a mature industry with a mature product portfolio and our margins are beginning to disappear.” Margin Erosion “We operate in a mature industry with a mature product portfolio and our margins are beginning to disappear.”
  27. INNOVATION TRIGGERS Margin Erosion “We operate in a mature industry with a mature product portfolio and our margins are beginning to disappear.” Margin Erosion “We operate in a mature industry with a mature product portfolio and our margins are beginning to disappear.” Internal Churn Internal Churn “Our new ideas are stuck in the mud of internal planning and review “Our new ideas are stuck in the mud of internal planning and review cycles.” cycles.”
  28. INNOVATION TRIGGERS Margin Erosion “We operate in a mature industry with a mature product portfolio and our margins are beginning to disappear.” Margin Erosion “We operate in a mature industry with a mature product portfolio and our margins are beginning to disappear.” Internal Churn Internal Churn “Our new ideas are stuck in the mud of internal planning and review “Our new ideas are stuck in the mud of internal planning and review cycles.” cycles.” Competition “New competitors are moving into our space and we need to do Competition “New competitors are moving into our space and we need to do something to defend our market position.” something to defend our market position.” Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies, etc.) but we don’t know where and how to start.”
  29. INNOVATION TRIGGERS Margin Erosion “We operate in a mature industry with a mature product portfolio and our margins are beginning to disappear.” Margin Erosion “We operate in a mature industry with a mature product portfolio and our margins are beginning to disappear.” Internal Churn Internal Churn “Our new ideas are stuck in the mud of internal planning and review “Our new ideas are stuck in the mud of internal planning and review cycles.” cycles.” Competition “New competitors are moving into our space and we need to do Competition “New competitors are moving into our space and we need to do something to defend our market position.” something to defend our market position.” Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies, etc.) but we don’t know where and how to start.” Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies, etc.) but we don’t know where and how to start.”
  30. INNOVATION TRIGGERS Margin Erosion “We operate in a mature industry with a mature product portfolio and our margins are beginning to disappear.” Margin Erosion “We operate in a mature industry with a mature product portfolio and our margins are beginning to disappear.” Internal Churn Internal Churn “Our new ideas are stuck in the mud of internal planning and review “Our new ideas are stuck in the mud of internal planning and review cycles.” cycles.” Competition “New competitors are moving into our space and we need to do Competition “New competitors are moving into our space and we need to do something to defend our market position.” something to defend our market position.” Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies, etc.) but we don’t know where and how to start.” Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies, etc.) but we don’t know where and how to start.” Mining IP “We have so much IP but we cannot convert it into products that resonate Mining IP “We have so much IP but we cannot convert it into products that resonate with consumers.” with consumers.”
  31. INNOVATION TRIGGERS Margin Erosion “We operate in a mature industry with a mature product portfolio and our margins are beginning to disappear.” Margin Erosion “We operate in a mature industry with a mature product portfolio and our margins are beginning to disappear.” Internal Churn Internal Churn “Our new ideas are stuck in the mud of internal planning and review “Our new ideas are stuck in the mud of internal planning and review cycles.” cycles.” Competition “New competitors are moving into our space and we need to do Competition “New competitors are moving into our space and we need to do something to defend our market position.” something to defend our market position.” Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies, etc.) but we don’t know where and how to start.” Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies, etc.) but we don’t know where and how to start.” Mining IP “We have so much IP but we cannot convert it into products that resonate Mining IP “We have so much IP but we cannot convert it into products that resonate with consumers.” with consumers.” Time-to-Market “Our linear product development process doesn’t allow for nimbleness and Time-to-Market “Our linear product development process doesn’t allow for nimbleness and trial and error.” trial and error.”
  32. INNOVATION TRIGGERS Margin Erosion “We operate in a mature industry with a mature product portfolio and our margins are beginning to disappear.” Margin Erosion “We operate in a mature industry with a mature product portfolio and our margins are beginning to disappear.” Internal Churn Internal Churn “Our new ideas are stuck in the mud of internal planning and review “Our new ideas are stuck in the mud of internal planning and review cycles.” cycles.” Competition “New competitors are moving into our space and we need to do Competition “New competitors are moving into our space and we need to do something to defend our market position.” something to defend our market position.” Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies, etc.) but we don’t know where and how to start.” Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies, etc.) but we don’t know where and how to start.” Mining IP “We have so much IP but we cannot convert it into products that resonate Mining IP “We have so much IP but we cannot convert it into products that resonate with consumers.” with consumers.” Time-to-Market “Our linear product development process doesn’t allow for nimbleness and Time-to-Market “Our linear product development process doesn’t allow for nimbleness and trial and error.” trial and error.” Customer Insight “Our product ideas are driven by science and engineering but fail to Customer Insight recognize latent or unarticulated customer and engineering but fail to “Our product ideas are driven by science needs.” recognize latent or unarticulated customer needs.”
  33. INNOVATION TRIGGERS Margin Erosion “We operate in a mature industry with a mature product portfolio and our margins are beginning to disappear.” Margin Erosion “We operate in a mature industry with a mature product portfolio and our margins are beginning to disappear.” Internal Churn Internal Churn “Our new ideas are stuck in the mud of internal planning and review “Our new ideas are stuck in the mud of internal planning and review cycles.” cycles.” Competition “New competitors are moving into our space and we need to do Competition “New competitors are moving into our space and we need to do something to defend our market position.” something to defend our market position.” Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies, etc.) but we don’t know where and how to start.” Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies, etc.) but we don’t know where and how to start.” Mining IP “We have so much IP but we cannot convert it into products that resonate Mining IP “We have so much IP but we cannot convert it into products that resonate with consumers.” with consumers.” Time-to-Market “Our linear product development process doesn’t allow for nimbleness and Time-to-Market “Our linear product development process doesn’t allow for nimbleness and trial and error.” trial and error.” Customer Insight “Our product ideas are driven by science and engineering but fail to Customer Insight recognize latent or unarticulated customer and engineering but fail to “Our product ideas are driven by science needs.” recognize latent or unarticulated customer needs.” Sustainability “We got lucky once or twice. How do we repeat our market success year Sustainability “We got lucky once or twice. How do we repeat our market success year after year?” after year?”
  34. INNOVATION CATEGORIES Sustaining (Evolve) Breakout (Expand) Disruptive (Envision) $ $ $ 0 1 ^ 2 3 4 5 6 7 0 1 2 3 ^ 4 5 6 7 0 1 2 3 4 5 ^ 6 7 Go/No-Go Go/No-Go Go/No-Go (Director Level) years (VP/SVP Level) years (CEO/Board Level) years Short -Term Advantage Near-Term Advantage Long-Term Advantage Sustain product life with incremental Create new products within an existing Innovate new to the world products that enhancements and consumer benefits. product category that leverage high value lead the creation of new markets or Since product categories exist, sustaining benefits for consumers. industries. Market acceptance may be products are easily accepted by the market. The greater benefits of the product and the slower to gain as multiple industry On the other hand profitability can diminish fact that it is within a know category drives standards compete for dominance. quickly due to ease of imitation . rapid short-term growth. These products are a long term investment These products are low risk bets with a high These product are higher risks bets with with high potential returns over the long probability of short term returns. higher yet diminishing returns. term. Other benefits include market dominance & strong competitive position. Product Level Innovation Category Level Innovations Industry Level Innovation Competitive Advantage: 1-3 years Competitive Advantage: 3-5 years Competitive Advantage : 5-7 years
  35. http://13c4.wordpress.com/2007/02/24/50-reasons-not-to-change/ Credit: http://13c4.wordpress.com/2007/02/ 24/50-reasons-not-to-change/
  36. Innovation means creating change instead of just reacting to it.
  37. “If you don’t get better, you get worse.” My dad
  38. Most products look alike
  39. Good enough Excellent
  40. Innovation means doing what no one has done before.
  41. Innovation means doing what no one has done before. what no one else would dare doing.
  42. Intuitive bets
  43. “It’s such a fine line between stupid and clever.” David St. Hubbins, lead singer of Spinal Tap
  44. 3 Design (Thinking)?
  45. Innovation means behavioral change.
  46. CUSTOMER JOURNEY
  47. Design: Humanizes technology Creates simple solutions to complex problems Changes the meaning of things
  48. Design (Thinking)?
  49. Strives to keep bad things Strives to make good from happening things happen. Manager vs. Designer
  50. We don't teach executives to think like designers. We help them bring innovative products and services to market.
  51. Doing Thinking
  52. “The head and hand divided” (R. Sennett) has risks…
  53. “A map is not the territory.” Alfred Korzybski, 1931
  54. Technology People Material = Processes Politics Money Actual materials
  55. 4 Do you fail?
  56. "Ever tried. Ever failed. No matter. Try again. Fail again. Fail better.“ Samuel Beckett
  57. | Project Masiluleke
  58. 5 Do you have an innovation process?
  59. “We don’t have an innovation process. We hire good people.” Steve Jobs
  60. “Design is too important to be left to designers.” Raymond Loewy
  61. Business Analyst Digital Media Designer Strategist Anthropologist Artists Mechanical Engineer Software Developer Architects Ethnographer Industrial Designer Writer Cross-over thinking (and doing)
  62. Role Matrix
  63. ITERATIVE
  64. SYNERGISTIC
  65. 6 What about the customer?
  66. …but it is not dead… Nothing has changed
  67. …but it is not dead… Everything has changed!
  68. “In the old days, brands wanted everybody to pay attention to them. Now brands need to pay attention to everybody else.” Umair Haque
  69. All products and services will be SOCIAL Where? Social networks What? Social content How? Social publishing Social search Social gaming Social shopping What for? Social impact Social currency
  70. “Open it up and it will design itself.” Norman Lewis 76
  71. DATA is the bank…
  72. MEANING is the currency…
  73. “Create more value than you capture.” Tim O’Reilly
  74. Social Meaning Value Innovation
  75. Chief Meaning Officer checklist SMALL DRAMATIC SOCIAL CONVERSATIONAL PROVOCATIVE RESPONSIBLE Micro Making sense Connecting Listening Making you think Doing good Customizable Cohesion Community Empathy Disruption Political Relevant Convergence Belonging Adaptive Divergence Socially responsible Actionable Morale Identity Changing messages Deconstruction Eco-friendly Eye-to-eye Consistency Like-minded Two-way Surprise Ethical Direct Imagination Affinity Let go of control Shock Human rights Instant Entertainment New people Open Unexpected Values Accessible Cultural relevance Status Respect Unlikely Family Sharable Characters Compassion Flow Challenging Nation Atomized Suspense Fun Topical status quo Common Good Comedy Love Point-of-view Unique Earth Tragedy Friendship Attention-grabbing Identification Hobbies Different Fans In your face
  76. 7 Convergence?
  77. Media Energy Entertainment Banking Telco CONSUMER EXPERIENCE Auto Retail Wellness eCommerce
  78. Mobile Social Personal BRAND EXPERIENCE Instant/ Gaming Real-time Location- Augmented based
  79. BUSINESS TECHNOLOGY Mobile Social Personal BRAND EXPERIENCE Instant/ Gaming Real-time Location- Augmented based DESIGN
  80. BUSINESS TECHNOLOGY Media Energy Entertainment Banking Telco CONSUMER EXPERIENCE Auto Retail Wellness eCommerce DESIGN
  81. 8 Does it need to be simple?
  82. Yes (it’s that simple)
  83. Complex ecosystems
  84. Feature creep
  85. “Perfection is achieved, not when there is nothing more to add, but when there is nothing left to take away.” Antoine de Saint-Exupery
  86. 9 The product is the story. The story is the product.
  87. “Because the purpose of business is to create a customer, the business enterprise has two—and only two—basic functions: marketing and innovation.” Peter Drucker
  88. Disrupt schemata
  89. Blend two concepts
  90. 10 You.
  91. “Never doubt that a small group of thoughtful, committed people can change the world. In fact, it is the only thing that ever has.” Margaret Mead
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