No Differentiated Insight = No Orbit Shifting Innovation; FEI Amsterdam 2010; Erehwon Innovation Consulting; Ranjan Malik

Orbit-shifting
Innovation TM

Front End of Innovation, Amsterdam

Feb 9, 2010

Presented by Ranjan Malik
Director, Erehwon Innovation Consulting

This presentation is a walkthrough of Unilever’s journey from
Insight to Venture
The methodology used was the powerful Orbit-Shifting
Innovation process developed by Erehwon.

Based out of India, Switzerland and USA, Erehwon Innovation Consulting has
been in existence since 1992, working in the areas of Innovation and
Innovation Leadership.

Orbit-shifting innovation TM

Our offerings
Targeted Innovation Innovation Ecosystems Leadership for Innovation

We facilitate Breakthrough We enable organizations to We equip organizations with
Innovation Projects from first, uncover the forces that Mindsets, Practices and Tools
Aspiration to Realization.
Realization. enable and disable innovation to Lead Innovation and to
(Business Model Innovation, and then co-create an
co- Build Innovation Teams and
Product Innovation and organizational ecosystem to Organizations.
Copyright @ 2010 Erehwon Innovation Consulting Pvt Ltd. All rights reserved

Process Innovation) activate and accelerate
innovation. We partner the
organization's innovation
journey with a Build, Operate
and Transfer model.

23 February 2010 I Slide 4


Erehwon’s Engagement and Role

Coach and Trainer
Facilitator and Mission Focused on building
Innovation Consultant / Partner capability. The team will be
equipped with skills and tools
Specialist to be able to play their role
Facilitating the Mission tasks

Introduce new techniques. and supporting the various well at various stages of the
Enable the team with an entities involved – the innovation process. The team
insight and innovation innovation team, the will be able to drive not just
framework and strategy. stakeholders and the current initiative well but
collaborators. also have the capability to
lead and drive more such
initiatives internally.



QUANTUM IMPACT

Catch-up Jumps Strategic Leaps

REACTIVE PROACTIVE

Problem Solving Continuous Improvement

INCREMENTAL IMPACT



QUANTUM IMPACT

New Ecosystem or Business Model
New Offerings (Products/Services)
New Processes

REACTIVE PROACTIVE

Improved Offerings
New Tactics To Grow Existing Offerings
New Processes To Sustain Or Enhance
Performance

INCREMENTAL IMPACT


Basic Structure of an Ecosystem

• Purpose (Value Parameters/Units)
• Entities
• Engagement Formats
o Transaction Format
o Consumption Format ENTITY 1 ENTITY 2

REGULATOR



Mental Models and Orbit-shift Keystones

Mental Models are the In order to make
most fundamental, Orbit-shifting
mostly unarticulated Innovation happen by
perceptual constructs design, it is important
that govern the way that we identify the
we receive, process current mental
and act on the models and make
information we shifts at this
Challenging the mental receive. fundamental level.
models could lead to the

discovery of new high-
leverage opportunity
areas that need
innovation. Areas where a Mental Models are
small shift could cause a usually assumed as
disproportionate impact. ‘givens’ that are
These opportunity areas usually not challenged
are called Orbit-shift and become
Keystones. boundaries within
which we think.


The Orbit-shifting Innovation Methodology Orbit-shifting innovation TM

Step 6:
• Once the propositions evolve and achieve success in the prototypes, they are
Scale-up through scaled up.
fission

• The breakthrough propositions become breakthrough reality through
prototyping/versioning. Quick & Dirty, Cheap & Rich expriments
Step 5: • The propositions go through 3 stages of Versioning:
Maximizing Value Realization • 1. Best Conditions
• 2. Real Conditions
through • 3. Scale Conditions
Prototyping/Versioning
Step 4: • The 3 Gear methodology triggers the team to, by design shift not just Frames
of thinking but also Mental Models
Generating propositions • A Proposition Evolution Insight Expedition helps team to evolve the raw
around the Keystones propositions.

Step 3: • Using different lenses the team scans the MMM to identify the Orbit-shift

Identifying high leverage Keystones - the high-leverage opportunity areas where a breakthrough could
lead to a disproportionate impact. The unsolved challenges that if solved will
Orbit-shift Keystones help the team achieve the orbit-shift aspiration

• An Insight Expedition that taps not just the usual insight sources of the
Step 2: ecosytem but also unusual ones within and outside the ecosystem.
Ecosystem Insight Expedition • The team creates a Mental Model Map that visibalises the whole thought
leading to a Mental Model Map spectrum of the ecosystem. Frames - known+over-leveraged (red),
known+under-leveraged (amber), Unknown+Unleveraged (green)

Step 1:
• The team internalises the principles of Orbit Shifting innovation
Anchoring on to an Orbit-
• Articulates and commits to a ‘difficult but worth going after aspiration’
shifting aspiration


What differentiates ‘Orbit-shifting Innovation’ from Traditional
Innovation?
Breaking Through
Mental Models

Generating and
funnelling ideas
Traditional
Innovation Ideas Led

Orbit-shifting Mental Model Led
Innovation
Uncovering, shifting
mental models



Mindset Gravity

Organizational Gravity

Industry Gravity

Country Gravity

Cultural Gravity



Unique Orbit-Shift Keystones
1. Strategic
2. High Leverage
3. Critical
4. Unusual, Unique (a blindspot)
5. Active
6. Our long term ‘right to win’

A small shift (that we are best

placed to make) that can cause a
disproportionate impact.

? 23 February 2010 I Slide 17


Unique Orbit-Shift Examples
Keystones Security:
Current Mental Models - Asset is dumb;
Transaction format: ‘box’

Orbit-Shift Keystones: Asset protects itself
(distributed intelligence); Platform format not ‘box’

Care Giving:
Current Mental Model: More Care = Better

Caregiving (Care-Dependence loop); Patient is the
consumer of ‘value’ created by other entities of
the ecosystem - hospitals, payers, caregivers

Orbit-shift Keystones: Eliminate the need for
caregiving - Patient a generator of value
(independent patient), Upstream Care; Availability

? of appropriate care not Caregiver



Unique and Unconventional Insight Sources
Who else deals with the same challenge, belongs to a radically
different context and has excelled in it?

Security:
Doctor, School, Restaurant, Animal
Expert

Caregiving:
ATC, IT command centers



What differentiates ‘Orbit-shifting Innovation’ from Traditional Innovation?

Breaking Through Unusual Sources
Mental Models of Insight

Generating and • User/Usage research
funnelling ideas • Published Trends
• Ideation Workshops
Traditional Idea Lead Usual Sources
Innovation

Orbit-shifting Mental Model Unusual Sources
Innovation Lead
Uncovering Breakthrough Insighting Experiences:
breakthrough • Within the emerging ecosystem
mental models • At new intersections: Cross domain
and Cross Industry



Breaking Through Unusual Sources Tipping
Mental Models of Insight Stakeholders

• Talk to the mind
• Data /logic heavy
• Sell, create buy-in
Traditional Idea Lead Usual Sources Convincing
Innovation

Orbit-shifting Mental Model Unusual Sources Tipping
Innovation Lead
Excite the heart & tip the mind
Informal influencing - convert into
champions




Breaking Through Unusual Sources Tipping In-market
Mental Models of Insight Stakeholders Versioning

• Testing mindset: go/ no go
• One perfect test

Traditional Idea Lead Usual Sources Convincing Piloting
Innovation

Orbit-shifting Mental Model Unusual Sources Tipping Versioning
Innovation Lead
• Quick & Dirty, Cheap & Rich (Low
cost, low risk, hi-speed experiments)
• Entrepreneurial Mindset : how to
make it work?
• Multiple learning Iterations



Breaking Through Unusual Sources Tipping In-market Scaling as
Mental Models of Insight Stakeholders Versioning Fissioning

• Roll out a successful
formula
• Inform and implement
Traditional Idea Lead Usual Sources Convincing Piloting As Cascading
Innovation

Orbit-shifting Mental Model Unusual Sources Tipping Versioning As Fissioning
Innovation Lead
• Create lighthouses
• Build believers
• Multiply




Breaking Unusual
Tipping In-market Scaling as
Through Mental Sources of
Stakeholders Versioning Fissioning
Models Insight

Traditional Idea Lead Usual Sources Convincing Piloting As Cascading
Innovation

Orbit-shifting Mental Model Unusual Sources Tipping Versioning As Fissioning
Innovation Lead



What makes Erehwon a unique partner?
• Our intrinsic passion for Innovation. For us Innovation is not merely a Business, it is a cause. We
thrive in the unknown, we love to take on ‘create history challenges’.
• An unyielding loyalty to the purpose, once into a mission our loyalty is to the purpose and not
to the people. We will energise, excite, enroll and challenge the team, the gatekeepers and all
other stakeholders at all stages. Our belief is ‘There are no unsolvable challenges or problems,
only limited believers and problem solvers’.
• A cutting edge Innovation methodology – that is able to guide the Innovation journey from
aspiration to realization. What makes the methodology cutting edge is that it goes beyond

processes to also intervene at mindset level and it combines a unique innovation model with an
equally powerful leadership and teaming model.
• Our first hand insight and comfort in working across first and third world clients and markets –
both served & underserved. Further we have successfully applied innovation to breakthroughs
in products, business models, services and processes.
• Our Innovation network through which we can create new connections needed to shorten the
insight and learning curve.



What makes Erehwon a unique partner?
Erehwon’s uniqueness is its ability to go beyond the superficial to uncover and to intervene at the
mindset level. Specifically:
• Design to enable orbit-shifts at business, organization and leadership levels and to facilitate
organization transformation interventions.
• Enable organizations to build and institutionalize an innovative culture.
• Facilitate and coach leaders towards transforming their mindsets and practices to unleash new
energy and initiatives.

• Work with the strategy, business unit heads and functional heads to create breakthrough
strategies, products, services and processes by applying orbit-shifting innovation.
• Enable organizations to discover new business models to penetrate under-served markets.



Client quotes

• An ongoing breakthrough innovation project with the Unilever Global Laundry team, Unilever’s first disruptive innovation team,
aimed at creating breakthroughs in the laundry ecosystem.

“...I have found great value in working with Erehwon. They have truly brought new capabilities in our innovation process. Their
approach is not being the usual facilitator of a innovation process, rather a co-creator of innovation ideas that can break the
market dynamics...” Massimo Pozzetti, Global Disruptive Innovation Director – Laundry, Unilever U.K. Central Resources
Limited

We are Unilever's first disruptive innovation team. When we started out on our journey in april this year, we had a sizable task in
front of us. We knew that to produce truly game changing innovation, we had to dig deeper and produce disruptive insight instead
of incremental insight, and produce a way of working that created a platform for disruptive innovation, but didn't know what was

the best innovation and insighting process to use

We spoke to the best minds across the world on the subject. We were introduced to Erehwon as an outlier, which we decided to
include in the brief at the last minute. Our appreciation of the Erehwon insighting and innovation process began on first
impression and has since continued.

Today, only 6 months since our formation, thanks to our partnership with Erehwon we have created a new way of working and
insighting, one that has delivered outstanding innovation challenges, insights and indeed 3 disruptive ventures that our Global
Leadership Team has commissioned.

We are very impressed with the insights and innovation processes that Ranjan and the team have produced with us and would
thoroughly recommend them to any business looking to produce game changing innovation...”
Luke Raskino, Unilever Laundry Disruptive
Innovation


Client quotes

• Ongoing innovation projects with Savola Foods in the Middle East. One aimed at building a set of internal innovation champions and
the other, a ‘Breakthrough Insighting’ for new opportunities’ with their Egypt team.
“...I have engaged with Erehwon both personally and professionally on several projects for Savola Foods, and they have
managed to change the way we view the world both personally and professionally. The competitive edge of Erehwon over any other
consultancy we dealt with is that they engage with you and the organization as a solid part of the team with equal if not higher
stakes than you do as their customer. They work with huge passion and come with a wealth of diverse experiences collected
throughout the years across the world.” Mohamed Al Banhawi. Innovations Director, Savola Foods

• Implementation of a breakthrough sales model at Max New York Life Insurance, that resulted in the success rate of new agents being
the highest in the industry (3X industry average) that was instrumental in the organization achieving a 3x growth over the last 3
years (from USD 100 Million to USD 300 Million). It has been acknowledged as a new benchmark in New York Life International.

“...It gives you recipes for success. It gives you interesting insights into leaders risking all to pursue quantum goals. It leaves
people enthused…leaves them with a 'we can do it' feeling”.- Anuroop 'Tony' Singh, Ex CEO and MD, Max New York Life Insurance
Company

• With the Marketing and Development teams at Novartis, Basel, Erehwon facilitated a project aimed at cultivating an innovative
culture within Novartis Globally. This involved an intensive ‘Gravity Diagnostic’ to uncover the enabling and disabling mindsets,
leading to breakthrough dialogue with the leadership team to trigger a shift in mindsets, and finally towards institutionalization of
innovative practices.
“Erehwon has a great talent to show to you what you think Innovation is and what it could really be. One of Erehwon’s great
strengths is to see Innovation as a 'full package' i.e. to work out proposals which are truly out of the box and translate these into
concrete implementation with its methodology Erehwon can put a mirror in front of you so that you (painfully) see where you are in
comparison with where you could be in terms of business relevant innovations”. Robert Sieber, Novartis, Switzerland



Client quotes

• With the Karnataka Government, Azim Premji Foundation and the World Bank: a project to create a breakthrough strategy to
leapfrog the quality of primary education across all government schools in Karnataka. This project involved conducting a gravity
diagnostic to understand the gravity mindsets and co-creating a breakthrough strategy such that there was high degree of ownership
in all the multiple stakeholders. The final breakthrough strategy was publicly adopted by the Chief Minister and is currently being
implemented across the state.
“…The Erehwon transformational leadership program provided our Education Leadership Management team critical insights
to integrate into our interventions in the state of Karnataka… Above all, what is most significant is that Erehwon is truly an
organization with social commitment and wants to genuinely contribute to initiatives that have a potential to impact large scale
social issues…” Dileep Ranjekar, Chief Executive Officer, Azim Premji Foundation

• At Marico Industries, an India FMCG, that was confronted with a major challenge when an MNC decided to take on its leading brand.
The resulting strategy led to the Indian FMCG’s brand acquiring the highest market share in its history. It went on, a few years later,
to acquire the MNC brand. This led to a ten-fold jump in turnover over a period of 5 years.
“...Erehwon is a creative, evolving, strategic partner...has helped create a mindset for Innovation and brought in clarity on how
one can convert creative ideas to opportunities” Marico Industries



The content of the document is copyright. Apart from fair dealing for the purposes of private study,
research, criticism or review as permitted under the Copyright Act, no part may be reproduced,
copied, transmitted in any form or by any means (electronic, mechanical or graphic) without the prior
written permission of Erehwon Innovation Consulting Pvt Ltd. All requests and enquiries should be
directed to: info@erehwonconsulting.com

To know more about Erehwon
Visit: www.erehwonconsulting.com
Email: info@erehwonconsulting.com
ranjan@erehwonconsulting.com

No Differentiated Insight = No Orbit Shifting Innovation; FEI Amsterdam 2010; Erehwon Innovation Consulting; Ranjan Malik

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