Innovation X Book Launch Presentation

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Presentation that Adam Richardson, author of Innovation X, gave at the launch event for the book.

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  • Thanks: frog exec team - Doreen, Kate, Mark and Tim
    Thanks: Karen & JB team
    Thanks: Autodesk, Bill
  • Innovation has been a hot topic
    Everyone wants to be like Google or Apple and figure out how to replicate their success for their industry
    But lots of companies fail to see the results they expected.

    Started with the paradox, “If so many companies have been focusing on innovation, why are so few of them seeing success?

    Lots of books on innovation recently, can be too theoretical.
    Hands on tools and methods

    Business & Design: Not lobbying

    What next? Make it work.

    From the trenches perspective
    From this perspective I started seeing clients struggling with the same cluster of problems that kept coming up over and over again.
  • Innovation has been a hot topic
    Everyone wants to be like Google or Apple and figure out how to replicate their success for their industry
    But lots of companies fail to see the results they expected.

    Started with the paradox, “If so many companies have been focusing on innovation, why are so few of them seeing success?

    Lots of books on innovation recently, can be too theoretical.
    Hands on tools and methods

    Business & Design: Not lobbying

    What next? Make it work.

    From the trenches perspective
    From this perspective I started seeing clients struggling with the same cluster of problems that kept coming up over and over again.
  • Flight back from Europe working with mobile carrier, started thinking about challenges

    Mobile market

    None of these companies were competitors a few years ago
    Bark on a tree

    All trying to figure out the same issues:
    What do customers want?
    What’s the right combination of products, software and service that will appeal?
    Hyper competition and constant disruption from unexpected angles

    I realized these same problems
    - Figuring out customers
    - Figuring out ecosystems
    - Figuring out disruption
    were common across industries, and tended to occur together
  • Flight back from Europe working with mobile carrier, started thinking about challenges

    Mobile market

    None of these companies were competitors a few years ago
    Bark on a tree

    All trying to figure out the same issues:
    What do customers want?
    What’s the right combination of products, software and service that will appeal?
    Hyper competition and constant disruption from unexpected angles

    I realized these same problems
    - Figuring out customers
    - Figuring out ecosystems
    - Figuring out disruption
    were common across industries, and tended to occur together
  • But these are not restricted to mobile. I called this collection of challenges of X-problems

    X=Extreme risk and complexity
    X=Mystery
    X=Treasure
  • But these are not restricted to mobile. I called this collection of challenges of X-problems

    X=Extreme risk and complexity
    X=Mystery
    X=Treasure
  • Developed an integrated framework to diagnose X-problems and figure out how to solve them and thrive

    But not a simple ABC
  • First is Convergence
    frog 1990’s

    Confusion

    Apple, Amazon, Google + Zipcar

    Niche, hard to use, inconvenient service to easy, pleasant to use service for mainstream customers

    Ecosystem: cars, mobile, web, backend services and infrastructure
  • First is Convergence
    frog 1990’s

    Confusion

    Apple, Amazon, Google + Zipcar

    Niche, hard to use, inconvenient service to easy, pleasant to use service for mainstream customers

    Ecosystem: cars, mobile, web, backend services and infrastructure
  • Organizational toolbox - take a step back

    Zappos - shoe retailer
    Customer service, corporate culture

    ZapposInsights as a spinoff

    $40/month subscription. Tours of their offices. Seminars.

    Disrupted existing consulting services for small/med businesses who never would have been expecting to be competing against a shoe retailer

    This is a hallmark of living in an X-problem world - disruption from very unexpected angles.
  • Organizational toolbox - take a step back

    Zappos - shoe retailer
    Customer service, corporate culture

    ZapposInsights as a spinoff

    $40/month subscription. Tours of their offices. Seminars.

    Disrupted existing consulting services for small/med businesses who never would have been expecting to be competing against a shoe retailer

    This is a hallmark of living in an X-problem world - disruption from very unexpected angles.
  • Another hallmark of X-problems is that it is impossible to understand the problem all in one go - they emerge slowly over time.

    Solutions to understand problem

    Be agile, nimble, entrepreneurial
    Hard for large orgs

    HP Touchsmart - recognized people are using their computers in very different ways than they were even a few years ago.
    Touch technology

    First Gen Kitchen
    [CLICK]

    Second Gen Living room
    frog did UI for all generations
    By taking a patient incremental approach, HP was able to succeed
  • Another hallmark of X-problems is that it is impossible to understand the problem all in one go - they emerge slowly over time.

    Solutions to understand problem

    Be agile, nimble, entrepreneurial
    Hard for large orgs

    HP Touchsmart - recognized people are using their computers in very different ways than they were even a few years ago.
    Touch technology

    First Gen Kitchen
    [CLICK]

    Second Gen Living room
    frog did UI for all generations
    By taking a patient incremental approach, HP was able to succeed
  • Immersion is the process of soaking yourself in as many different areas of knowledge as possible to help you understand what the X-problem is, and how to solve it.

    Because X-problems are so complicated and multi-faceted and have no clear right or wrong answer, you need to extract insight any way you can, not just at the beginning of an innovation effort but also during so you can course correct with prototypes. Even after the product has launch, stay immersed so that you can learn for the next generation, as HP did with Touchsmart

    One of the key factors for immersion is customer research, and that brings us to the topic of our panel, “Pitfalls of customer-led innovation”
  • I’m a big believer in customer research

    Back when I was I was six I started designing cars. I was inspired when our next door neighbors bought a Renault 16 and there was something about this car that I really liked.

    A lot of young boys design cars, but the way I went about doing it was a bit different. Clipboard. So I’ve been doing customer research for over 30 years.
  • I’m a big believer in customer research

    Back when I was I was six I started designing cars. I was inspired when our next door neighbors bought a Renault 16 and there was something about this car that I really liked.

    A lot of young boys design cars, but the way I went about doing it was a bit different. Clipboard. So I’ve been doing customer research for over 30 years.
  • Being more customer led has been a mantra for many companies in the last decade. Customer focus, customer centricity, meeting customers where they are, walking in customers’ shoes, etc.

    But it’s not as simple as just asking customers what they want and expecting that to turn into breakthrough innovation. In fact this can lead you wildly astray.

    Before we get into our panel I wanted to talk about a few common pitfalls that I’ve seen.
  • Not arrogant
  • One company that’s been very innovative within its category is Clif Bar, the maker of snacks for athletes. Based in Berkeley.

    Gary Erickson founder - had an epiphany on a bike ride where he was fed up with energy snacks that tasted like astronaut food - started making energy snacks that tasted good.

    Interview: Listen to customers, do our own thing

    Had a failure with Atkins

    Made them refocus on their core values
  • Inferences around needs can partly be dealt with by not relying on customer input too heavily, or as your sole or main means of making decisions.

    But if all you do is talk with customers and don’t integrate research from other areas, you’re missing out on a lot of what you need to know to make solid decisions. And could be missing out on important insights.
  • Tendancy is to look too narowly within their own category at their immediate competitors, but this can mean you miss out on some important opportunities for innovation

    One example of taking a wide approach to research was a project our NY studio worked on for a company called IPC.
    They make “phone turrets”, very sophisticated phone systems for stock traders who have to handle hundreds of calls a day.
    We worked with IPC on their new generation product, with the goal of drastically improving the ease of use for stressed traders
  • IPC recognized that the new generation of traders had very different expectations about the quality of experience they should get from products, even ones they use in a very function-oriented environment like a trading floor

    Look over the fence of your category

    [CLICK]

    IPC willing to look outside and see what they could learn from unrelated categories

    “With the advent of cell phones, iPods and Xboxes, the new generation of traders has been weaned on consumer technology. This has had a profound influence on expectations of tools in the workplace.”
    - Lance Boxer, CEO, IPC

    Customer expectations are getting reset by things outside your industry. Are you paying enough attention?
  • IPC recognized that the new generation of traders had very different expectations about the quality of experience they should get from products, even ones they use in a very function-oriented environment like a trading floor

    Look over the fence of your category

    [CLICK]

    IPC willing to look outside and see what they could learn from unrelated categories

    “With the advent of cell phones, iPods and Xboxes, the new generation of traders has been weaned on consumer technology. This has had a profound influence on expectations of tools in the workplace.”
    - Lance Boxer, CEO, IPC

    Customer expectations are getting reset by things outside your industry. Are you paying enough attention?
  • The last pitfall I want to describe is when companies are not bold enough with how they act on their research.
  • Our traditional research told us that there would be a total available world market of about two million units for a $499 phone. We sold over two million units in the UK alone.
    Went on to sell 50M phones in 2 years

    Being a market leader can often mean “ignoring” your customer research
  • Our traditional research told us that there would be a total available world market of about two million units for a $499 phone. We sold over two million units in the UK alone.
    Went on to sell 50M phones in 2 years

    Being a market leader can often mean “ignoring” your customer research
  • Innovation X Book Launch Presentation

    1. Innovation X Book Launch Adam Richardson, Creative Director, frog design, inc. www.innovationxbook.com
    2. Innovation has been the hot topic in business for years, and everyone wants to have the same success as Apple and Google. The paradox: With so many companies focusing on innovation, why are so few seeing success?
    3. Innovation X provides a from-the- trenches perspective with hands-on tools and methods for making innovation work more effectively in your organization.
    4. In mobile today, everyone is trying to understand what customers want. Everyone is disrupting everyone else. Everyone is trying to make ecosystems of products, software and services.
    5. These same customer, disruption and ecosystem challenges are occurring for many industries today. Together, they combine to create...
    6. X-Problems
    7. The Innovation X Framework is an integrated set of methods to diagnose and deal with X-problems
    8. Convergence
    9. Zipcar turned car sharing from an inconvenient service that only appealed to environmentalists to one that is pleasant and has mass appeal. It did this by creating a converged ecosystem of products, software and services. Convergence
    10. Divergence
    11. Shoe retailer Zappos realized it could sell two of its assets - customer service and company culture - to small business owners. It created Zappos Insights to do just that. Divergence
    12. Adaption
    13. In creating its Touchsmart computers, HP had the patience to let the product evolve over several generations. The first version didn’t get the X- problem right. HP learned from it, and the second version did. Adaption
    14. X-problems need as much knowledge as possible to solve. Immerse yourself in the worlds of your customers, in technologies, trends and many other areas, and combine findings from them all. Immersion
    15. I’m a big believer in customer research. I’ve been doing it since I was age 6, when I was inspired by my neighbors’ Renault 16 to design my first car.
    16. But there are pitfalls to doing customer-led innovation
    17. Pitfall 1 Interpreting Too Literally
    18. Customers are not qualified to know what solutions are best -- that is the job of the organization. - Anthony Ulwick, What Customers Want
    19. Clif Bar, maker of energy snacks for athletes, is an example of a company that listens closely to customers, but re-interprets what they say and innovates on their behalf.
    20. Pitfall 2 Looking Too Narrowly
    21. It is vital to peek over the fence of your category to understand how customer expectations are getting reset and what lessons can be learned. Even stock traders want to work differently...
    22. frog client IPC makes high-end phone systems for traders to handle hundreds of calls a day.
    23. IPC recognized that today’s traders grew up with cellphones, iPods and Xboxes. This led to a radical rethinking of the phone experience.
    24. Pitfall 3 Acting Too Timidly
    25. 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
    26. Most people in Motorola believed (based on conventional research) that the Razr would be nothing more than a low-volume money-losing product. It went on to become one of the biggest selling phones of all time.
    27. If you want to be a leading company, you have to create the products that create your destiny. Geoffrey Frost, former CMO, Motorola
    28. Thanks. www.innovationxbook.com Twitter: @richardsona

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