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Innovation 3 Presentation 12 10 10

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Presentation given at the Innovation Cubed Conference 12/8-10/11 in Orlando, FL

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Innovation 3 Presentation 12 10 10

  1. 1. Quality Ingredients Corporation an employee owned company Changing Your Business Model to Mine Value from Technologies Outside Your Core Competencies Confidential www.QIC.us Kurt C Schneider Vice President – Product and Process Innovation Center Friday, December 9, 2010
  2. 2. Confidential www.QIC.us … .Make Money Doing Stuff You Don’t Do Today
  3. 3. What Will We Accomplish? <ul><li>Identify Challenges in Changing a Business Model </li></ul><ul><li>Readiness to Look Beyond the Core </li></ul><ul><li>Pinpoint Opportunities to Incorporate Innovation </li></ul>Confidential www.QIC.us
  4. 4. What This is Not <ul><li>It is NOT an Open Innovation Platform/Program </li></ul><ul><li>It is NOT a supplier engagement program </li></ul><ul><li>It is NOT a website designed to solicit ideas or solutions to internal challenges </li></ul>Confidential www.QIC.us
  5. 5. What This IS <ul><li>It IS a method to determine where value lies outside your core competencies </li></ul><ul><li>It IS a program to utilize internal resources to locate external value </li></ul><ul><li>It IS a system designed to force an organization to look outside it’s comfort zone </li></ul>Confidential www.QIC.us
  6. 6. Open Innovation <ul><li>“… a paradigm that assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as the firms look to advance their technology…(it) combines internal and external ideas into architectures and systems whose requirements are defined by a business model .” </li></ul><ul><ul><ul><ul><li>Dr. Henry Chesbrough – Open Innovation: The New Imperative for Creating and Profiting from Technology </li></ul></ul></ul></ul>Confidential www.QIC.us
  7. 7. <ul><li>Culture </li></ul><ul><li>Corporation </li></ul><ul><li>Amoeba Model </li></ul>Confidential www.QIC.us Using External Ideas to Change Your Business Model ?
  8. 8. <ul><li>Culture – The Open Innovation Pyramid </li></ul>Confidential www.QIC.us Identify Challenges in Changing a Business Model 5. Immersion Innovation 4. External Innovation 3. Internal Innovation 2. Cross-functional Creativity 1. Silos of Creativity
  9. 9. <ul><li>Product </li></ul><ul><ul><li>1- Manufacture </li></ul></ul><ul><ul><li>2 -Broker/Distributor </li></ul></ul><ul><li>Service </li></ul><ul><ul><li>3 -Sole Provider </li></ul></ul><ul><ul><li>4 -Third Party Contracted </li></ul></ul>Confidential www.QIC.us Readiness to Look Beyond the Core A business model describes the rational of how an organization creates, delivers, and captures value - economic, social, or other forms of value. <ul><li>The Business Model </li></ul>Product Service Buy Make 1 4 3 2
  10. 10. Confidential www.QIC.us Readiness to Look Beyond the Core The Amoeba Business Model <ul><li>X possible combinations </li></ul><ul><ul><li>Small companies reside in one box </li></ul></ul><ul><ul><li>Larger companies reside in many boxes </li></ul></ul><ul><li>Easier for smaller companies to make the leap to a new business model </li></ul>Product Service Buy Make 1 4 3 2
  11. 11. <ul><li>Composition </li></ul><ul><ul><li>Customer Component </li></ul></ul><ul><ul><ul><li>Sales, Marketing , Market Research </li></ul></ul></ul><ul><ul><li>Technical Component </li></ul></ul><ul><ul><ul><li>R&D , Engineering, Project Management </li></ul></ul></ul><ul><ul><li>Internal Component </li></ul></ul><ul><ul><ul><li>Operations , Finance, Purchasing </li></ul></ul></ul>Confidential www.QIC.us Readiness to Look Beyond the Core The Innovation Team Concept “ Company Within a Company” Product Service Buy Make 1 4 3 2
  12. 12. Opportunities for Innovation Confidential www.QIC.us <ul><li>Task </li></ul><ul><ul><li>Prodicize a Service </li></ul></ul><ul><ul><li>Servicize a Product </li></ul></ul>
  13. 13. Opportunities for Innovation Confidential www.QIC.us <ul><li>Identify Challenges in Changing a Business Model </li></ul><ul><li>– Open Innovation </li></ul><ul><li>Readiness to Look Beyond the Core </li></ul><ul><li>– Company within a Company </li></ul><ul><li>- The Amoeba Business Model </li></ul><ul><li>Pinpoint Opportunities to Incorporate Innovation </li></ul><ul><li>– Prodicize a Service or Servicize a Product </li></ul>
  14. 14. Quality Ingredients Corporation an employee owned company Changing Your Business Model to Mine Value from Technologies Outside Your Core Competencies Confidential www.QIC.us Kurt C Schneider Vice President – Product and Process Innovation Center Thank You

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