Adoption curve players• Innovators open to new ideas and like to tinker• Early adopters are the trendsetters and opinion leaders• Early majority are above average but still followers• Late majority adopt after “it” has become the norm.• Laggards are the die-hards and only adopt when they are forced to. Terms originates from Everett M. Rogers Diffusion of Innovations
Majority of innovations not able to cross the Chasm
An Innovation can be a new• Product (can be goods or service)• Process (eg online banking)• Business Model: way a firm delivers value and secures profits• Technology (eg GPS)• Social• Market or – new way of organizing the business, business practices – new sources of supply or external relations.Reference: Schumpeter, The Oslo Manual
Type of Innovation Can vary in newness and impact • Incremental: Organic, the next logical step • Radical (or breakthrough): a quantum leap forward • Transformational ( or disruptive)Reference: http://www.innovation-management.org/types-of-innovation.html
Every act of creationis first of all an act of destruction. Pablo Picasso
We Know Innovation is ImportantInnovationdistinguishesbetween aleader and afollower.Steve Jobs
In the past most innovation was created internally• R&D Centers, Employees across divisions, locations, functions
But the rate of innovation isn’t enough• "When the rate of change outside an organization is greater than the change inside, the end is near” Jack Welch
Innovation needs diversity of thought Global U.S. onlyEconomist Intelligence Unit and Grant Thornton survey of Business Exec, June 2010"Innovation: The Key to Future Success?" Global results shown here.
This is where we have to look outside• Customers/Consumers• Partners/Suppliers• Universities & research institutes• Media, Analysts, Fortune-tellers• Anyone with a passion or vested interest• That’s OPEN INNOVATION
Open Innovation• Use both internal and external ideas, and innovation to grow and remain competitive in the market.Chesbrough, H., “Open Innovation”, HarvardBusiness School Publishing, Boston MA, 2003
Innovation relies on a good Ecosystem Ideas & Commerci- alization Basic Capital Research Laws/ Human Regulation Resources
And funnels & filters Idea Idea Idea Idea Idea Best Ideas
Ideas are a commodity, it’s the execution that counts Idea Generation Selection Execution Launch to Market
Ideas are a commodity, it’s the execution that countsIdea Generation Ideation: develop new ideas Selection Select the best ones through Crowdsourcing Execution Test it, Alpha sites, prototypesLaunch to Market Launch to Market
Creating incentives• To get people to participate in innovation, requires different incentives.1. Recognition: A mention in the newsletter, lunch with an executive, Leaderboard2. Competition: Leaderboard3. Economic incentives: A financial or other type of gift4. Altruistic reasons: if self motivated no need for rewards
Can apply Crowdsourcing and Gamification to address innovation Idea Generation Enterprise Collaboration Idea Markets Prediction Markets Jams Challenge Events
Parting thoughts on Innovation• Innovation is multi-faceted• There is no one way to do it• No simple formulas• Make it safe, make it transparent, make it fun, make it rewarding for people to participate.• Make it open, make it easy, get everyone internal and external involved.
Parting thoughts on Innovation• Get management on board, it needs sponsors, it needs a budget to implement the best ideas.• Recognize and reward not only winners but participation.• It takes time for people and culture to change. Expect resistance, but learn, adapt and be persistent.
Please share this with your friends Favorite it, Tweet it, Facebook it. LinkedIn itBuy the book “The Alchemy of Innovation” by Javed Mohammed on Amazon For more information and resources or if you would like me to consult or present please go to alchemyofinnovation.wordpress.com All images are from public domain and copyright of respective owners A K2 Vista Project firstname.lastname@example.org alchemyofinnovation.wordpress.com Copyright 2012