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Why Your Idea Is Worth Nothing
     ... and how to create growth plans that work.




                        Tony Ulwick
                        September 2011
                   © Strategyn Consulting, LLC
Innovation Begins with an Idea
Brainstorming
There Are No Bad Ideas
Open Innovation
IBM Idea Jam:
 46,000 Ideas
Ideas Drive Innovation
Audience Question 1:

Do you agree or disagree that this thinking drives the
types of innovation practices your company uses
today?

Agree
Disagree
Endless Supply of Bad Ideas
It is exceptionally hard to have an idea
that will accelerate a company’s growth.
“PC jr is a flop.”


       WSJ
      January 1984
17%
< 2%
0%
Your Idea Is Worth Nothing
Your Idea Is Worth Nothing
   Market   Needs   Strategy
Isn’t in an
attractive market
Isn’t in an
attractive market
Doesn’t address the
   right needs
Doesn’t address the
   right needs
Isn’t strategically
       sound
Isn’t strategically
       sound
Your Idea Is Worth Nothing
Growth Is Left to Chance
 Idea
Growth Is Left to Chance
 Idea   Market
Growth Is Left to Chance
 Idea   Market   Needs
Growth Is Left to Chance
 Idea   Market   Needs   Strategy
Eliminate the Chance
                  Idea
Eliminate the Chance
Market              Idea
Eliminate the Chance
Market   Needs      Idea
Eliminate the Chance
Market   Needs   Strategy   Idea
Creating Ideas for Growth
Creating Ideas for Growth

   Market   Needs   Strategy
What is an Attractive Market?
Financially Attractive
Market potential is price
times products times buyers.
Traditional Method


  Market potential is price
times products times buyers.

                Philip Kotler
         Kellogg, Marketing Management
The iPod Market
iPod Growth
220%

180%

140%

100%

60%

20%

-20%
                                                                     0%
       06Q1 06Q3 07Q1 07Q3 08Q1 08Q3 09Q1 09Q3 10Q1 10Q3 11Q1 11Q3




                            Source: Apple Quarterly Reports
“The market reception for
 Zune is so disappointing
 that many retailers have
  even stopped selling it
       altogether.”


          Marketwatch
          July 29, 2009
Audience Question 2:

What do you think the chances are that any given idea
will be in a market that is financially attractive to the
company?

less than 5%
6% - 10%
11% - 25%
26% - 50%
Over 50%
Traditional Markets
1948    1962   1984   2001
Products = past
Customers don’t want
iPods any more than they
want CDs or 8-track tapes.
Job:
Listen to Music
Market
             Job       Executor


         =         +
Market potential is number
   of job executors times
willingness to pay to get the
       job done better.
Get a Job Done Better
1948      1962   1984   2001
Get a Job Done Better
1948      1962   1984   2001   2005
80 million
90,000 per day
Creating Ideas for Growth
Creating Ideas for Growth

   Market   Needs   Strategy
What is a Customer Need?
What is a Customer Need?


                95%
                Don’t have
                 definition

               MIT Sloan Management Review
                         May 2008
Voice of the
 Customer
Voice of the
 Customer
Focus on the Job
50 - 150
Customer Metrics
Quickly   Predictably   Successfully
Speed   Stability   Output
150 BC   1670   1940   1985   1999
0% Growth
150 BC   1670      1940     1985   1999
Customers don’t want radios
 any more than they want
megaphones or smoke signals.
Communicate in a
dangerous situation
Minimize the time it takes to confirm receipt
Minimize the time it takes to confirm receipt


 Direction   Metric            Object of Control
Minimize the time it takes to confirm receipt of a communication
Minimize the likelihood that the communication is interrupted
Minimize the likelihood of interference when communicating
Increase the likelihood that the communication is discreet
Minimize the likelihood that a message is misunderstood
Minimize the time it takes to establish a record of the communication
Minimize the likelihood that the communication is intercepted
Market Opportunities
               10.0




                7.5
Satisfaction




                5.0




                2.5




                 0
                      0   2.5       5.0      7.5   10.0

                                Importance
Market Opportunities
               10.0




                7.5
Satisfaction




                5.0




                2.5




                 0
                      0   2.5       5.0      7.5   10.0

                                Importance
IMP      SAT     OPP
           7.3      3.2     11.4



Minimize the time it takes to confirm receipt
From 0% to 18% Growth


                             “ODI was used to create
                             two of our bestselling
  Bob Pennisi
                             radios to date.”
Advanced Technology Center




                             Dr. Pennisi is currently a senior Strategyn professional
Audience Question 3:

What do you think the chances are that any given idea
will better satisfy a significant number of the right 50
to 150 needs in a market?

less than 5%
6% - 10%
11% - 25%
26% - 50%
Over 50%
Creating Ideas for Growth
Creating Ideas for Growth

   Market   Needs   Strategy
Product Strategy
Low Cost     Breakthrough
Disruption    or Radical




               Product
Sustaining
             Improvement
20%   10%




50%   20%
10%   50%




30%   10%
Audience Question 4:

What do you think the chances are that any given idea
will have correctly chosen the right product strategy?

less than 5%
6% - 10%
11% - 25%
26% - 50%
Over 50%
The Market Decides, Not You


             Low Cost     Breakthrough     Product
Sustaining
             Disruption    or Radical    Improvement
Opportunities Dictate Strategy

                   10.0




                    7.5
    Satisfaction




                    5.0




                    2.5




                     0
                          0   2.5       5.0      7.5   10.0

                                    Importance
Opportunities Dictate Strategy

                   10.0




                    7.5
    Satisfaction




                    5.0




                    2.5




                     0
                          0   2.5       5.0      7.5   10.0

                                    Importance
Opportunities Dictate Strategy

                10.0




                 7.5
 Satisfaction




                 5.0




                 2.5




                  0
                       0   2.5       5.0      7.5   10.0

                                 Importance
10.0




                7.5
Satisfaction




                5.0




                2.5




                 0
                      0   2.5       5.0      7.5   10.0

                                Importance
Product Improvement

               10.0                                          Existing
                                                             Platform
                7.5
Satisfaction




                5.0




                2.5




                 0
                      0      2.5       5.0      7.5   10.0

                                   Importance
Product Improvement

               10.0                                          Existing
                                                             Platform
                7.5
Satisfaction




                5.0




                2.5




                 0
                      0      2.5       5.0      7.5   10.0

                                   Importance
10.0




                7.5
Satisfaction




                5.0




                2.5




                 0
                      0   2.5       5.0      7.5   10.0

                                Importance
Breakthrough - Radical

               10.0                                         New
                                                          Platform
                7.5
Satisfaction




                5.0




                2.5




                 0
                      0   2.5       5.0      7.5   10.0

                                Importance
Breakthrough - Radical

               10.0                                         New
                                                          Platform
                7.5
Satisfaction




                5.0




                2.5




                 0
                      0   2.5       5.0      7.5   10.0

                                Importance
10.0




                7.5
Satisfaction




                5.0




                2.5




                 0
                      0   2.5       5.0      7.5   10.0

                                Importance
Sustaining

               10.0                                        Existing
                                                           Platform
                7.5
Satisfaction




                5.0




                2.5




                 0
                      0   2.5        5.0      7.5   10.0

                                 Importance
Sustaining

               10.0                                        Existing
                                                           Platform
                7.5
Satisfaction




                5.0




                2.5




                 0
                      0   2.5        5.0      7.5   10.0

                                 Importance
Low Cost Disruption

               10.0




                7.5
Satisfaction




                5.0




                2.5




                 0
                      0     2.5       5.0      7.5   10.0

                                  Importance
Low Cost Disruption

               10.0                                           New
                                                            Platform
                7.5
Satisfaction




                5.0




                2.5




                 0
                      0     2.5       5.0      7.5   10.0

                                  Importance
Low Cost Disruption

               10.0                                           New
                                                            Platform
                7.5
Satisfaction




                5.0




                2.5




                 0
                      0     2.5       5.0      7.5   10.0

                                  Importance
+

Inability of Current Platform to Address Needs
                                                         Low Cost             Breakthrough
                                                         Disruption            or Radical




                                                                                 Product
                                                         Sustaining
                                                                               Improvement

                                                 -
                                                     -                                              +
                                                          Dissatisfaction Getting the Job(s) Done
Eliminate the Chance
Market   Needs   Strategy
Eliminate the Chance
Market   Needs   Strategy   Idea
Idea Types
Idea Types




Platform   Biz Model   Features   Go To Market
Sequence




   1          2           3            4

Platform   Biz Model   Features   Go To Market
Criteria to Judge
     = Metrics

   Metrics, Cost, Risk
Experts
Domain    Technical
Triggers
Triggers
  26           41         14




Platform    Biz Model   Features
Idea Generation
Type   Experts   Criteria         Triggers

                  Minimize the
                  time it takes
                    to confirm
                      receipt
Growth Is Left to Chance
 Idea   Market   Needs   Strategy
Growth Is Left to Chance
 Idea   Market       Needs       Strategy




         25%     x    5%     x    25%       = .003%
Predictable Growth
$500M
Predictable Growth
$500M   95%
Predictable Growth
$500M   95%   95%
Predictable Growth
$500M   95%   95%   Idea
86% Success
  5x Better


 Source: Strategyn Track Record Study. Sample size: 22 launches. 19
 declared a successes by the companies based on revenue, customer
 satisfaction, or industry awards. Study available upon request.
Companies                                                     43
Products                                                      49
Pipeline                                                      28

Launched                                                      21
Success                                                       18
Rate                                                     86%


 Source: Strategyn Track Record Study. Sample size: 21 launches. 18
 declared a successes by the companies based on revenue, customer
 satisfaction, or industry awards. Study available upon request.
Contact Strategyn:
    T: (866) 729-8400
E: info@strategyn.com

   www.strategyn.com
Follow us on twitter: @strategyn

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