7 Critical Factors For Achieving Growth Through Innovation Why are some organizations better than others meeting or exceeding their innovation goals? Executives, leaders and investors know that managing innovation is a messy process and often an organization’s survivability depends on its ability to innovate. Getting the right results consistently from innovation efforts is a daunting challenge for most organizations. Multiple studies have found somewhere between 65-90% of new products fail for a variety of reasons. These failures are avoidable when the people making critical decisions analyze why they fail and what to do to achieve success. Experts have found that companies that have the best track records for improving their performance through innovation do things differently. They achieve growth through innovation. You’ll learn * Why your organization needs an innovation strategy * How to manage innovation initiatives to get the right results * Essentials of an innovation process * Simple tools to manage your organization’s innovation efforts• * Tips to foster innovation within your organization This session helps you understand how to improve your organization’s performance through innovation in products, processes, and business models to achieve business growth. Connect with Hector and inquire how he can help you become a more successful innovation leader. Connect: linkd.in/hdelcastillo Follow: @hmdelcastillo Visit: www.hmdelcastillo.com

1. © 2016, H. Del Castillo. All Rights Reserved. www.hmdelcastillo.com
BoldPM Hector Del Castillo
Managing Director
BoldPM
ASQ Baltimore Dinner Meeting
Tuesday, Sep 13, 2016
© 2016, BoldPM, Creative Commons Attribution License, Approved for non-commercial use with
attribution. Commercial use is prohibited.
Critical Factors For Achieving
Growth Through Innovation7

2. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
Thanks everyone who attended this meeting. It was a
pleasure and honor to have the opportunity to lead this
discussion.
If you like this content, be sure to like it and share it with
others.
Interested in bringing this topic to your community?
Contact me and let me know how I can help you.

3. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
Special Thanks
Baltimore
Section

4. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
Use: #businessgrowth #innovation
Follow: @ASQBaltimore @BoldPMG
Tweet

5. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com

6. “Innovation distinguishes
between a leader and a
follower”
- Steve Jobs

7. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
What is the biggest barrier for innovation
within your company?
• Poor management
• Insufficient investment
• Lack of innovative people
• Inadequate planning
• Cannot afford the risk

8. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
What We Will Discuss
1. Why You Need an Innovation Strategy
2. The Path to Business Growth
3. Tips for Fostering Innovation
4. Key Takeaways
5. Q & A

9. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
WHY YOU NEED AN INNOVATION
STRATEGY

10. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
Benefits of Innovation
Increased
value for
customers
Improved
profitability for
your company

11. Value of Innovation
The “best” (top 25%) companies with an innovation
process compared to the “worse” (bottom 25%)
companies
Source: Edgett, 2011
Metric Best Worse
% revenue from new products 36.3 10
% of profits from new products 30.5 10
% of commercial successes 70 35
% of project on time 70 20
% of projects on budget 81 40
% meeting profit, sales, and market-share objectives 70 approx 30 approx

12. © 2016, H. Del Castillo. All Rights Reserved. www.hmdelcastillo.com
The importance of innovation
Innovation is a competitive necessity
67% of the most innovative companies agree
vs.
19% of the least innovative companies agree
Source: 2015 Global Innovation Survey: Innovation, Growth and Business Strategy, PWC

13. © 2016, H. Del Castillo. All Rights Reserved. www.hmdelcastillo.com
The rewards of innovation done right
The most innovative companies are growing at
a much faster rate over the next 5 years:
62.2%vs. 20.7%
Source: 2015 Global Innovation Survey: Innovation, Growth and Business Strategy, PWC

14. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
Types of Innovation
ProblemDefinition
WellDefined
Breakthrough
Innovation
Incremental
Innovation
NotWellDefined
Basic
Research
Disruptive
Innovation
Not Well Defined Well Defined
Domain Definition

15. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
Where can innovation happen?
•Technology •Methodologies
•Packaging •Operations
•Tools •Distribution
•Product Design •Business Models
•Production •Pricing
•Processes •Marketing

16. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
Successful innovators bring clarity
to a process often described as
fuzzy and vague.
Source: Booz & Co, 2011 Global Innovation 1000 Study Winter 2012.

17. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
Innovation Funnel
• Generate
• Explore
• Analyze
• Synthesize
• Test
• Plan
• Implement
Ideas
Outcomes
Source: © 1998-2013, AIPMM, All Rights Reserved.

18. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
Innovation Process

19. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
THE PATH TO BUSINESS GROWTH
THROUGH INNOVATION

20. The path to growth requires a strategy

21. 1. Implement an innovation process
Success
Seeking
Truth
Seeking
Source: © 1998-2016, AIPMM ProdBOK , All Rights Reserved.

22. Adopt a Playbook

23. Devise it for execution
pecificS
easurableM
ttainableA
elevantR
ime-BoundT
valuateE
eadjustR

24. The path to growth requires teamwork

25. 2. Build and nurture a great team

26. Build a talent portfolio

27. Cultivate the right culture

28. The path to growth requires astute
problem solving

29. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
3. Solve the right market problem

30. “We cannot solve our
problems with the same
thinking we used when we
created them.”
-Albert Einstein

33. 4. Test your business model
Source: Alexander Osterwalder & Yves Pigneur, “Business Model Generation” 2009.

35. Define your unique value proposition
Customers
Your BusinessCollaborators
Unique Value
Proposition
Source: Alexander Chernev, Strategic Marketing Management, 2012, 6th Edition

37. 5. Focus on customer management
Source: “Why The Lean Startup Changes Everything,” Steve Blank, HBR, May 2013

38. Understand buyer behavior
Minimum Viable Product?Target Customer
Core
Actual
Whole
Why buy?
What to buy?
What price?
How often?

39. Orchestrate value creation

41. Source: “Why The Lean Startup Changes Everything,” Steve Blank, HBR, May 2013

42. Adopt a learning process
Build
MeasureLearn
Source: Eric Ries, “The Lean Startup”

43. Fail fast, fail quickly, fail forward
Fail
Forward
State your
assumptions
Learn from
mistakes
Test your
assumptions
Pivot when
needed

44. The path to growth must be fact-based

45. 7. Benchmark your performance
Performance
Benchmarking
Best Practice
Benchmarking
Balanced
Benchmarking

46. Know your competitive landscape

47. Use metrics to persevere or pivot

48. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
TIPS FOR FOSTERING INNOVATION

49. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com

50. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com

51. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com

52. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com

53. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com

54. © 2016, H. Del Castillo. All Rights Reserved. www.hmdelcastillo.com
Pitfalls To Avoid
• Not clearly defining your innovation process
• Focusing on features instead of the whole product
• Burning out your product team seeking to achieve MVP too
quickly
• Failing to benchmark to identify relevant success metrics
• Skimping on product architecture
• Lack of rewards for everyone who helped your company
succeed

55. Key Takeaways
• Implement an innovation process1
• Build and nurture a great team2
• Solve the right market problem3
• Test your business model4
• Focus on customer management5
• Develop quickly and responsibly6
• Benchmark your performance7

56. For Further Reading
• “You Need An Innovation Strategy,” Harvard Business Review, June 2015
• “Reinventing Your Business Model,“ by Mark W. Johnson, et. al., Harvard
Business Review, Dec 2008
• “Why The Lean Startup Changes Everything,” by Steve Blank, Harvard
Business Review, May 2013
• “Why Great Products Fail,” Hector Del Castillo, Linkedln Pulse, March
2016
• “Why Great New Products Fail,” MITSloan Review, March 2016

57. Currently fundraising for the 2017 Project
Management Day of Service (PMDoS)
See the PM4C Table to make a
$17 Credit Card donation via the
PM4C DipJar
DONATE ONLINE !
https://web.charityengine.net/default.aspx?tsid=3920
ASQ Baltimore Section 502
Peer-to-Peer Fundraising Page
Coming soon!

58. Upcoming Courses
Course & Location Dates Time
Certified Product Manager® Prep Course
Launch Workplaces, Tysons, VA Dec 5-6, 2016 8:30 am – 5 pm
Certified Product Marketing Manager®
Prep Course
Launch Workplaces, Tysons, VA
Dec 7-8, 2016 8:30 am – 5 pm
Contact Cynthia Petti at cynthia@280group.com for more information.

59. Upcoming Courses
Please your questions and comments to Hector at hector@boldpm.com.
From Project Manager to Project Leader
Learn advanced technical skills plus soft skills, corporate culture and
attitude check as applied to leadership, increasing production,
recruitment and retention.
$50 discount
code for PMI =
PMIhmd8
Building Your Team Making Up Lost Production
Dealing With Conflict The Right Tools for the Job
Guarding Against Scope Creep Cost/Schedule Integration
Project Management Business Administration
Understanding the bigger picture adds value when you make project-
level decisions. Covers risk avoidance, the cost of money, project vs
company budgets and long-range corporate goals.
December
9
Pre-bid and Close Out Strategies Business Development
Strategic Planning Hidden Corporate Costs
Claims Mitigation Human Resource Issues
September
29
Gaithersburg, 09/29/16. 8 PDU (leadership)
http://bit.ly/pm2pl0916
Gaithersburg, 12/09/16. 8 PDU (strategy)
http://bit.ly/pmba1216

60. Hector Del Castillo, CPM, CPMM
Managing Director, BoldPM
hector@boldpm.com
linkd.in/hdelcastillo
@hmdelcastillo
For More …

61. Upcoming Webcasts
Webcasts that inspire executives, entrepreneurs and
leaders to grow their businesses.
9 Things Exceptional Project Leaders Do Differently
Thu, Sep 22nd, 2016, 1:00 - 2:00 p.m. EDT
Speaker: Hector Del Castillo, BoldPM
bit.ly/boldpmwebcasts