Innovation Steve Jackson London 15 May 2009

Background “ I’ll be happy to give you innovative thinking. What are the guidelines?”

Where have we got to? May 2008 The ideas factory – i.e. ideas to meet the strategic growth plan November 2008 Building on core competencies (Sony) Getting better & getting different (Xerox) “ If it isn’t broken we will look harder and fix it anyway” (SJ) Embrace Change (SJ) An urgency for the future / Manage the future / Creating Strategic Intent (SJ) Background

May 2008

The ideas factory – i.e. ideas to meet the strategic growth plan

November 2008

Building on core competencies (Sony)

Getting better & getting different (Xerox)

“ If it isn’t broken we will look harder and fix it anyway” (SJ)

Embrace Change (SJ)

An urgency for the future / Manage the future / Creating Strategic Intent (SJ)

What is today all about? Background

The Big Idea Organisations must become more innovative as markets become more dynamic and competitive What is Innovation

Organisations must become more innovative as markets become more dynamic and competitive

3 Seeds of Innovation Creative Thinking Strategic Thinking (Urgency for the future) Transformational Thinking (Embrace Change) What is Innovation

Creative Thinking

Strategic Thinking (Urgency for the future)

Transformational Thinking (Embrace Change)

Creative Thinking Believe in Creativity Everyone is creative Accept failures along the way Be curious Acknowledge that there are different ways of doing things What is Innovation

Believe in Creativity

Everyone is creative

Accept failures along the way

Be curious

Acknowledge that there are different ways of doing things

Strategic Thinking Target the most profitable customers Offer something new & better Set innovation priorities Leverage our network Profit from branding What is Innovation

Target the most profitable customers

Offer something new & better

Set innovation priorities

Leverage our network

Profit from branding

Transformational Thinking Seek greater awareness Self Organisation Team Create Passion Individual Team Physical environment Take Action Develop roadmaps Gain commitment Passion, Patience and perseverance What is Innovation

Seek greater awareness

Self

Organisation

Team

Create Passion

Individual

Team

Physical environment

Take Action

Develop roadmaps

Gain commitment

Passion, Patience and perseverance

Quote “ Innovation is the profitable implementation of ideas” ." Broken Bulbs 2005 What is Innovation

“ Innovation is

the profitable implementation of ideas” ."

Broken Bulbs 2005

More quotes "The essential part of creativity is not being afraid to fail." — Edwin H. Land The way to get good ideas is to get lots of ideas and throw the bad ones away."— Linus Pauling What is Innovation

"The essential part of creativity is not being afraid to fail." — Edwin H. Land

The way to get good ideas is to get lots of ideas and throw the bad ones away."— Linus Pauling

Even More Quotes " Creativity is thinking up new things. Innovation is doing new things." Theodore Levitt "Innovation is the process of turning ideas into manufacturable and marketable form." Watts Humprey The only way to predict the future is to create it Peter F. Drucker What is Innovation

" Creativity is thinking up new things. Innovation is doing new things."

Theodore Levitt

"Innovation is the process of turning ideas into manufacturable and marketable form."

Watts Humprey

The only way to predict the future is to create it

Peter F. Drucker

What do WE want to achieve Increase Value (Customers are prepared to pay more for it) And/or Reduce cost (do work more efficiently) What does it all mean for CBAS

Increase Value

(Customers are prepared to pay more for it)

And/or

Reduce cost

(do work more efficiently)

Why innovate? Innovation is important Because Old strategies and techniques get replicated And Margins get squeezed “ When the rate of change outside the business is greater than the rate of change inside the business, disaster is imminent” What does it all mean for CBAS

Innovation is important

Because

Old strategies and techniques

get replicated

And

Margins get squeezed

3 Types of Innovation Product / Service Process Business Model / Strategy These are just labels for where innovation can occur How do we Innovate

Product / Service

Process

Business Model / Strategy

These are just labels for where innovation can occur

3 Levels of Innovation Incremental (workface) Semi-Radical (business unit) Radical (entire business model) How do we Innovate

Incremental (workface)

Semi-Radical (business unit)

Radical (entire business model)

Where does innovation occur? Simply put Innovation can occur Anywhere By Anybody At Any level How do we Innovate

Simply put

Innovation can occur

Anywhere

By

Anybody

At

Any level

Difficulties & Downsides “ He who innovates will have for his enemies all those who are well off under the existing order of things, and only lukewarm supporters in those who might be better off under the new” Macchiavelli There is a natural resistance to change; fight it! (SJ) How do we Innovate

“ He who innovates will have for his enemies all those who are well off under the existing order of things, and only lukewarm supporters in those who might be better off under the new”

Macchiavelli

There is a natural resistance to change; fight it! (SJ)

Tips & Tricks Innovation needs an integrated approach Look more closely than expected Ask many questions Think laterally Get involved in things you shouldn’t!!!!!!! e.g. Brunel, CTRL, Do more than you are supposed to Have fun doing it How do we Innovate

Innovation needs an integrated approach

Look more closely than expected

Ask many questions

Think laterally

Get involved in things you shouldn’t!!!!!!!

e.g. Brunel, CTRL,

Do more than you are supposed to

Have fun doing it

More tips and tricks Innovation needs People to cooperate Not I’m in charge, this is what we’ll do How do we Innovate

Innovation needs

People to cooperate

Not

I’m in charge, this is what we’ll do

Ideas to get us going Gym toiletries (incremental) – improving the way things are done Hotel Coat Hangers (semi-radical) – changing the way part of services sold McDonalds – see next slide CD Sales (radical) – changing entire business model (see example below) Examples

Gym toiletries (incremental) – improving the way things are done

Hotel Coat Hangers (semi-radical) – changing the way part of services sold

McDonalds – see next slide

CD Sales (radical) – changing entire business model (see example below)

McDonalds’ Innovation Examples Acquisition of local niche player New Cookers for French Fries Green Milk Shakes on St Pats Day Incremental Opening for Breakfast Hamburger University Value Meals Semi-radical (Substantial) Global Expansion Regulation of Quality for Franchisee Big Mac Radical (Breakthrough) Strategy Process Product Innovation

Changing the business model Example This is Geoff Examples

Geoff Sells these Examples

In one of these Examples

Geoff drives one of these Examples

But now, everyone is doing this Examples

So, there is no need for these Examples

So, sales are down Examples

Geoff blames and Examples

So, he hires Levi, Leipheimer & Armstrong Who, at great expense, successfully prosecute … Examples

… Amanda Examples

In the meantime … are giving away their records .. online Examples

As the rate of increases so the increases Examples

Examples

Geoff now drives one of these …. Examples

That is Business Model Innovation Examples

Summary Innovate or die Think! Creative – Strategic – Transformational Profitable implementation of ideas Increase value / reduce cost Types Service – Process - Strategy Levels Incremental – Semi radical – radical Cooperate / Integrate Summary

Innovate or die

Think!

Creative – Strategic – Transformational

Profitable implementation of ideas

Increase value / reduce cost

Types

Service – Process - Strategy

Levels

Incremental – Semi radical – radical

Cooperate / Integrate

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