Processes and Tools For Innovation Jeffrey Phillips VP Marketing OVO

Agenda Review the current state of innovation Examine innovation types Review methodologies, processes and software that support or enable innovation Discuss priorities when starting an innovation initiative

Review the current state of innovation

Examine innovation types

Review methodologies, processes and software that support or enable innovation

Discuss priorities when starting an innovation initiative

Innovation Today In a recent BCG survey of CEOs: over 70% named innovation as a top priority Most identified innovation as the best chance for organic growth Yet less than 30% felt their firm had the right processes and tools in place for successful innovation

In a recent BCG survey of CEOs:

over 70% named innovation as a top priority

Most identified innovation as the best chance for organic growth

Yet less than 30% felt their firm had the right processes and tools in place for successful innovation

Innovation “Types”

“ Types” of Innovation From: Doblin Group http://www.doblin.com/IdeasIndexFlashFS.htm Type Definition Example Business Model How you make money Dell Networks and alliances How you work with other companies Sara Lee outsources manufacturing Enabling Processes How you support the company’s core processes Starbucks Core Processes How you create and add value to your offerings Wal-Mart Product Performance How you design your offerings VW Beetle Product System How you link your products to create a system Microsoft Office

More “Types” Type Definition Example Service How you provide value to customers beyond product Singapore Airlines Channel How you get your offerings to market Martha Stewart Brand How you communicate your offerings Absolut Customer Experience How your customers feel about the company Harley Davidson

Technology New Near to Existing New Business Model Near to Existing Incremental Breakthrough Breakthrough Game Changer Types of Innovation

Open vs Closed Innovation Encouraging customers, partners and vendors to submit ideas P&G’s stated goal: 50% of its new products based on ideas from partners and customers Open Innovation by Henry Chesbrough

Encouraging customers, partners and vendors to submit ideas

P&G’s stated goal: 50% of its new products based on ideas from partners and customers

Innovation Life Cycle

Innovation Lifecycle “ Life cycle” – From American Heritage dictionary The course of developmental changes through which an organism passes from its inception to its mature state Innovation lifecycle – from idea to new product or service Look at three lifecycle concepts Idea to Cash from BCG Customer Driven Innovation Concept to Cash from OVO

“ Life cycle” – From American Heritage dictionary The course of developmental changes through which an organism passes from its inception to its mature state

Innovation lifecycle – from idea to new product or service

Look at three lifecycle concepts

Idea to Cash from BCG

Customer Driven Innovation

Concept to Cash from OVO

Innovation to Cash Boston Consulting Group introduced the “Innovation to Cash” lifecycle From: Making Innovation Pay from Boston Consulting Group

Boston Consulting Group introduced the “Innovation to Cash” lifecycle

“ Customer Driven” Innovation Research the strategy canvas for your industry; Determine what each segment values and what their unmet needs are; Compare the strategy canvasses to the needs of each segment; Find the gaps; Determine how you can effectively, competently and profitably fill them; and Experiment, test and then roll out the qualifying innovation opportunities. Suggested by Dave Pollard – blogs.salon.com

Research the strategy canvas for your industry;

Determine what each segment values and what their unmet needs are;

Compare the strategy canvasses to the needs of each segment;

Find the gaps;

Determine how you can effectively, competently and profitably fill them; and

Experiment, test and then roll out the qualifying innovation opportunities.

Strategy Map Strategy Map based on work from Blue Ocean Strategy

Strategy Map These factors are “overmet” These factors are “undermet” or not met.

Concept to Cash Developed by OVO to define the Innovation Lifecycle: Generate ideas Capture ideas Evaluate ideas Develop as new products Launch into the market Capture metrics/statistics Feedback

Developed by OVO to define the Innovation Lifecycle:

Generate ideas

Capture ideas

Evaluate ideas

Develop as new products

Launch into the market

Capture metrics/statistics

Feedback

Methodologies

Defined Methodologies Methodology A body of practices, procedures, and rules used by those who work in a discipline Most innovation methodologies are the outgrowth of new product development concepts Little work has been done for service innovation – see Peer Insight for the best work in service innovation

Methodology A body of practices, procedures, and rules used by those who work in a discipline

Most innovation methodologies are the outgrowth of new product development concepts

Little work has been done for service innovation – see Peer Insight for the best work in service innovation

Innovation methodologies PACE – an early product development methodology Stage-Gate ® – a published process/methodology that provides more rigor and discipline to product innovation

PACE – an early product development methodology

Stage-Gate ® – a published process/methodology that provides more rigor and discipline to product innovation

Stage-Gate methodology From: www.stage-gate.com

Software

Evolution over time The initial database for ideas was a suggestion box Over time ideas have been captured in Excel, Access, and other desktop and enterprise applications

The initial database for ideas was a suggestion box

Over time ideas have been captured in Excel, Access, and other desktop and enterprise applications

Challenge Too many idea databases across the organization No visibility into innovation Little chance for collaboration internally or externally Point tools don’t support an innovation process

Too many idea databases across the organization

No visibility into innovation

Little chance for collaboration internally or externally

Point tools don’t support an innovation process

Innovation Lifecycle Generate Capture Evaluate Develop Launch Generating Ideas Capturing Ideas Idea Evaluation Framework Product Launch New Product Development What actions take place across the innovation process, and what data is necessary to capture at each stage of the process?

Lifecycle with data needs Generate Capture Evaluate Develop Launch Brainstorm Tools Mind Maps Suggestion Box Idea Database Idea Evaluation Framework Rapid Prototyping IP Protection Product Launch New Product Development Trend Scanning IP Search Rewards / Incentives Measurements / Metrics Bugs Me List Voting / Polls / Survey Retention / Archiving Roadmapping

Software to support phases Ideation/Brainstorming Brainstorming software helps distributed teams generate and rank ideas Products MindMaps (personal brainstorming) OVO Spark Generating

Ideation/Brainstorming

Brainstorming software helps distributed teams generate and rank ideas

Products

MindMaps (personal brainstorming)

OVO Spark

Software to support phases Idea Capture/Management Software which registers ideas and provides collaborative tools to manage and evaluate ideas Products Bright Ideas (hosted only) Imaginatik Sopheon OVO Incubator (hosted or licensed) Capture/Evaluate

Idea Capture/Management

Software which registers ideas and provides collaborative tools to manage and evaluate ideas

Products

Bright Ideas (hosted only)

Imaginatik

Sopheon

OVO Incubator (hosted or licensed)

Software to support phases Product Lifecycle Management (PLM) Software to manage the design, development and iterations of a product Products Dassault PTC Agile UGS New Product Development

Product Lifecycle Management (PLM)

Software to manage the design, development and iterations of a product

Products

Dassault

PTC

Agile

UGS

Software to support phases Roadmapping Software to define the “roadmap” or next versions of a product portfolio over time Products Alignent Launch/Management

Roadmapping

Software to define the “roadmap” or next versions of a product portfolio over time

Products

Alignent

Lifecycle with data needs Generate Capture Evaluate Develop Launch Brainstorm Tools Mind Maps Suggestion Box Idea Database Idea Evaluation Framework Rapid Prototyping IP Protection Product Launch New Product Development Trend Scanning IP Search Rewards / Incentives Measurements / Metrics Bugs Me List Voting / Polls / Survey Retention / Archiving Roadmapping

Setting your Priorities Define the “kinds” of innovation your team wants Establish “who” will be involved Define your innovation methodology or process Document your process and data requirements Evaluate software

Define the “kinds” of innovation your team wants

Establish “who” will be involved

Define your innovation methodology or process

Document your process and data requirements

Evaluate software

Recap From a process and tools standpoint, innovation is a new field and the requirements are still being defined There are some standard methodologies, processes and tools, and more every day As with any other important business process, define the processes, methodologies and tools necessary for success for your initiative

From a process and tools standpoint, innovation is a new field and the requirements are still being defined

There are some standard methodologies, processes and tools, and more every day

As with any other important business process, define the processes, methodologies and tools necessary for success for your initiative

Q&A and Contact Contact us for further discussions or if your team needs help evaluating processes or tools for innovation www.ovoinnovation.com 919-848-8675 [email_address]

Contact us for further discussions or if your team needs help evaluating processes or tools for innovation

www.ovoinnovation.com

919-848-8675

[email_address]