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The Innovation Bootcamp University of California Irvine Presentation by Sanjay Dalal on Jan 12, 2009


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Sanjay Dalal presented the Innovation Bootcamp at University of California, Irvine, Paul Merage School of Business on January 12, 2009. This was the accelerated version of the Innovation Bootcamp. Check out: for the Rigorous and Intermediate Innovation Bootcamps to jumpstart innovations and build an innovation factory.

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The Innovation Bootcamp University of California Irvine Presentation by Sanjay Dalal on Jan 12, 2009

  1. 1. The Innovation Bootcamp WELCOME!! THE INNOVATION BOOTCAMP January - 2009 Brought to you by: Creativity And Innovation Driving Business
  2. 2. The Innovation Bootcamp What do you See?
  3. 3. The Innovation Bootcamp What do you See? Obvious: Zero, Circle, Dot Less Obvious: Wheel, Plate, Dish Even Less Obvious: New Moon, Solar Eclipse, Mole, Seed Hidden: Top of a Nail, Sphere, Cylinder Answer: Top of a Head
  4. 4. The Innovation Bootcamp What do you See? INNOVATIONMAIN COM
  5. 5. The Innovation Bootcamp What do you See?
  6. 6. The Innovation Bootcamp What do you See?
  7. 7. The Innovation Bootcamp
  8. 8. The Innovation Bootcamp Today’s Agenda • About me • Wisdom from Innovators • The Innovation Index • Business Innovation Success • Apple Case Study • Web 2.0 • SCAMPER • Key Takeaways
  9. 9. The Innovation Bootcamp Sanjay Dalal Chief Innovator
  10. 10. The Innovation Bootcamp Sanjay Dalal • Innovator, Entrepreneur and Investor • Author of Faculty eBook on Innovation in Business • Founder of the Innovation Index • President & Managing Director, Innovation Index Group • Fifteen years leadership experience at High Tech companies • Joint U.S. Patent, First Position Putnam Math Competition • B.S.E.E., UT, Austin; Management Certification Cornell University • Member, Dean’s Leadership Circle, UC Irvine Business School • Basketball Coach, Art Master, Student Site Council • Active Rotarian and philanthropist
  11. 11. The Innovation Bootcamp Creativity And Innovation Driving Business INNOVATION SERVICES, STRATEGY & CONSULTING • No-nonsense insights, strategy and solutions with proven processes that drive Creativity and Innovation at your business, create real market growth and success for your products and services, and achieve market leadership
  12. 12. The Innovation Bootcamp $$ SUCCESS New People Business Processes Culture Innovations Partners Networks Ideas Creativity
  13. 13. The Innovation Bootcamp Who is an Innovator? • A business • A person – employee or partner? • Do businesses create innovators? • Do innovators create businesses? • Is there a difference: Innovator vs. Entrepreneur?
  14. 14. The Innovation Bootcamp Wisdom from Innovators • quot;Failure is our most important product.quot; R W Johnson, Jr., Former CEO, Johnson & Johnson Never Lost Money
  15. 15. The Innovation Bootcamp Wisdom from Innovators • quot;Our company has, indeed, stumbled onto some of its new products. But never forget that you can only stumble if you're moving.quot; Richard P. Carlton, Former CEO, 3M Corporation • Considered as perhaps most innovative company of last century – Scotch, Post-it
  16. 16. The Innovation Bootcamp Leadership and Innovation • Sam Walton, founder of Wal-Mart: “I have always been driven to buck the system, to innovate, to take things beyond where they've been.”
  17. 17. The Innovation Bootcamp Thomas Alva Edison – An Innovator unlike any other • quot;Genius is one per cent inspiration and ninety-nine per cent perspiration. Accordingly, a 'genius' is often merely a talented person who has done all of his or her homework.” • The three things that are most essential to achievement are common sense, hard work and stick-to-it-iv-ness...
  18. 18. The Innovation Bootcamp Leonardo Da Vinci – An age-old Innovator • “There are three classes of people: Those who see. Those who see when they are shown. Those who do not see.” •Innovators foresee – Art, Science & Experience
  19. 19. The Innovation Bootcamp Steve Jobs – Today’s Innovator • “Innovation distinguishes between a leader and a follower.” • “Innovation has nothing to do with how many R&D dollars you have…It’s about the people you have, how you’re led and how much you get it.”
  20. 20. The Innovation Bootcamp Steve Jobs – Today’s Innovator • Leadership – Leader & Follower • People – Culture – Co-creators • Processes – How you’re led • Comprehension – How much you get it Get it, Got it, Good!
  21. 21. The Innovation Bootcamp Six Ways to Find Innovation #1 Stand in different places Chuck Palus and David Horth
  22. 22. The Innovation Bootcamp Six Ways to Find Innovation #2 Use the lenses of other domains Chuck Palus and David Horth
  23. 23. The Innovation Bootcamp Six Ways to Find Innovation #3 Ask powerful questions Chuck Palus and David Horth
  24. 24. The Innovation Bootcamp Six Ways to Find Innovation #4 Foster new knowledge Chuck Palus and David Horth
  25. 25. The Innovation Bootcamp Six Ways to Find Innovation #5 Create a visual verbal journal Chuck Palus and David Horth
  26. 26. The Innovation Bootcamp Six Ways to Find Innovation #6 Change the pace of attention Chuck Palus and David Horth
  27. 27. The Innovation Bootcamp Three Takeaways • Innovators see beyond the ordinary, and yet have real common sense • Innovations necessitate lots of failed experiments & hard work to uncover the latent customer need • Innovations require processes to think creatively, ideate and experiment
  28. 28. The Innovation Bootcamp The Innovation Index • Founded in December 2006 • Weighted Index of the Top Innovative Companies • The Innovation Index is a performance index of the Top 20 Innovators in North America • Correlates stock, business and innovation performance
  29. 29. The Innovation Bootcamp Top 20 Innovators - 2008 3M Company Google Hewlett-Packard America Movil Intel Apple IBM AT&T Merck Best Buy McDonald's Cisco Systems Microsoft Costco NIKE eBay Research In Motion General Electric Proctor & Gamble
  30. 30. The Innovation Bootcamp Top Global Innovators • Business Models – Netflix News Corp Reliance HP eBay Vodafone Apple Dell Web 2.0 • Products – Apple Sony Nintendo Microsoft Nokia TATA RIM Honda 3M GM Audi Boeing Intel Samsung Daimler Cisco Siemens Verizon • Customer Experience – Google BMW Disney Virgin McDonald’s Southwest Air Amazon Nike Costco Singapore Air Facebook AT&T Target Starbucks • Processes – Toyota GE HP P&G IBM Wal-mart Exxon Mobil BP Source: BusinessWeek Excludes Financials
  31. 31. The Innovation Bootcamp The Innovation Index
  32. 32. The Innovation Bootcamp The Innovation Index • Innovation Index Performance (2006-07) • Average of 67 innovations per Innovator • 805 new and enhanced products • 411 strategic collaborations & partnerships • 95 new acquisitions • Combined market cap grew by 11% to $2.23 trillion from $2.01 trillion in 2006, an average increase of $11 billion per Innovator
  33. 33. Top 20 Innovators - 2008
  34. 34. The Innovation Bootcamp Top-Down Bottom-Up Innovations Innovations Management / Customers and Source of ideas Partners Your Organization users Internal resources, Deep Drivers Innate product, understanding of need positioning customer needs Structured and Spontaneous and Interaction Open managed non-linear Go to the customer Invite customer to Strategy Co-creation participate Linear and strictly Emergent and Processes Ordered defined serendipitous Chaos Communities, Methods Market research, crowdsourcing, surveys, focus Web 2.0 peer-production, groups social media Source:
  35. 35. The Innovation Bootcamp Three Takeaways • Top Innovators grow their business even in tough economic times • Top Innovators innovate through new products, collaborations, partnerships, and acquisitions • Top Innovators increasingly learn and leverage Bottom-Up approach for new innovations
  36. 36. The Innovation Bootcamp Innovation Success • Question: • How do you measure Innovation Success? • What is the benchmark?
  37. 37. The Innovation Bootcamp Business Innovation Success • An Innovation that produces at least 5% of company's total revenue (up to equal margins) within three years after commercial launch, and grows to at least 15% of company's total revenue (with equal or better margins) within eight years of commercial launch is 100% successful.
  38. 38. The Innovation Bootcamp At least $500 million annual revenue or Company A 5 years in business Innovation ABC Launch Time Within 3 years from Launch Innovation Revenue At least 5% of company annual revenue Innovation Margins Close to equal margins FIRST MILESTONE Innovation ABC 50% Successful REACHED CONTINUE / EXPAND Innovation ABC Funding Time Within 8 years from Launch At least 15% of company annual Innovation Revenue revenue Innovation Margins Equal or better margins SECOND MILESTONE Innovation ABC 100% Successful REACHED FUND NEW INITIATIVES
  39. 39. The Innovation Bootcamp Successful Innovation Apple iPod
  40. 40. The Innovation Bootcamp Successful Innovation Apple iPhone
  41. 41. The Innovation Bootcamp Three Takeaways • Create metrics to benchmark business innovation • Measure the success of your new innovations (don’t be mislead by PR) • Create institutional memories to repeat success and avoid same mistakes
  42. 42. The Innovation Bootcamp
  43. 43. Apple • Apple Computer, Inc. • or • Apple, Inc. • Question: • What is Apple?
  44. 44. The Innovation Bootcamp Apple today • “We’re armed with the strongest product line in our history, the most talented employees and the best customers in our industry. And $25 billion of cash safely in the bank with zero debt,” Steve Jobs, CEO of Apple
  45. 45. The Innovation Bootcamp Apple iPhone Launched June 2007 Over 5 million sold in 1 year Over 10 million sold in 2008 At $499 an iPhone  $2.5 Billion to $5 Billion in annual Business. #3 Cellphone maker Liftoff: 0 to $2.5 Billion+ in <1 year
  46. 46. The Innovation Bootcamp How did Apple do it? • Increase revenue more than 400% in 8 years and some… • Increase net profit more than 650% in 8 years and still growing… • Increase market cap more than ten times to over $85 billion in 8 years and counting…
  47. 47. The Innovation Bootcamp Innovation in Products • Redefined Macintosh line of desktops and laptops beginning with iMac in 1998 and iBook in 1999 • iTunes store and iPod player in 2001. • Innovative Macintosh desktops and laptops with new line of MacBook, Mac Pro and Mac Mini in 2006 • Smartphone revolution with iPhone in 2007 and iPhone 3G in 2008 • Software innovation with OS X – Leopard, Safari, the new App Store for iPhone / iPod touch apps
  48. 48. The Innovation Bootcamp Innovation in Business Model • Apple created industry first business model on iTunes store by offering music downloads to consumers for only 99 cents a song • Apple created strategic partnerships with major music labels to get royalty per sale • Apple expanded these partnerships to movie studios and TV networks to offer movie rentals, new movies and TV shows
  49. 49. The Innovation Bootcamp Innovation in Business Model • Apple created an exclusive relationship with AT&T in U.S. for the iPhone launch – a first! • Apple obtained subscription payment from AT&T from the monthly data plans – a first! • Apple significantly expanded iPhone 3G distribution by establishing carrier relationships in over 70 countries – still exclusive with AT&T
  50. 50. The Innovation Bootcamp Innovation in Customer Experience • Apple introduced Apple Retail Stores in 2001 • Over 200 stores worldwide including 8 countries outside the U.S. • Theme: “Come to shop. Return to learn” • All things Apple. Great experience. • Apple sells Apple products and accessories through Apple Online Store • iTunes store: Music, Movies, TV, Apps
  51. 51. The Innovation Bootcamp Innovation in Customer Experience • Apple Retail Stores • Highest sales per square foot • Innovative storefront design • Open, customer-friendly atmosphere with highly knowledgeable sales reps • Great customer experience • Apple Online Store • iTunes store - #1 Music Store + Movies, TV, Apps
  52. 52. The Innovation Bootcamp iPod Opportunity iTunes App Store potentially redefines iPod touch into a hand-held gaming console and can significantly expand Apple’s footprint into the gaming market! Games are way cheap! (source: Forbes)
  53. 53. • Advanced chemistry, intelligent monitoring of the system and battery, and Adaptive Charging technology to create a revolutionary new notebook battery that delivers up to eight hours of wireless productivity on a single charge and up to 1,000 recharges without adding thickness, weight or cost to the MacBook Pro’s incredible design.* The longer battery lifespan equals fewer depleted batteries and less waste, which is better for the environment.
  54. 54. The Innovation Bootcamp How Apple Innovates? • Establish Apple as the best COOL brand • Marketing, Website, Retail stores, Products – Everything!! • Envision & Create the best COOL products • iPod, iPhone, MacBook, Air, Pro, Retail Stores..Next generation • Deliver best-of-breed, highest quality products & service • Precision, Performance, Design, Technology, Experience • Capture emerging consumer landscapes & trends • Media & Entertainment confluence, Entertainment + Hand-held gaming consoles, Business & Leisure, Green, Software apps • Grow the ecosystem of partners
  55. 55. The Innovation Bootcamp Apple – Top Innovator • Innovation and Leadership • Innovation in Products • Innovation in Business Model • Innovation in Customer Experience • Innovation in People and Processes
  56. 56. The Innovation Bootcamp Web 2.0 • Question: • What is Web 2.0?
  57. 57. The Innovation Bootcamp Business Model Innovation • New Web 2.0 framework, and the new Web 2.0 Business Models
  58. 58. The Innovation Bootcamp 2.0 1.0 Web 2.0 • Strategic Shift – One way Interaction between people and computers (websites), to Multi-way Interactions between people and people, and people and machines where people become co-creators. • People and networks share and co-create all types of content, and provide context to business processes. Biggest successes: Myspace, Youtube, Facebook, Blogger, Wikipedia
  59. 59. The Innovation Bootcamp
  60. 60. The Innovation Bootcamp
  61. 61. The Innovation Bootcamp Web 2.0 business models ■ Create a large/focused niche user community (many) ■ Sell API access (Google) ■ Sell services to a large group of SMEs (, Citrix, NetSuite, Sugar CRM) ■ Sell data to partners (Facebook? :)) ■ Get a revenue share from transactions (eBay) ■ Sell advertisements (MySpace, Google, Yahoo) ■ Sell value-added platform (Amazon Web Services) ■ Freemium - Sell premium memberships (Livejournal) ■ Sell your company (Youtube) Source:
  62. 62. The Innovation Bootcamp Types of Business Models • • Brokerage Affiliate • • Advertising Community • • Infomediary Subscription • • Merchant Utility • Manufacturer (Direct) Source: Michael Rappa
  63. 63. The Innovation Bootcamp Three Takeaways • Web 2.0 is for real (just like eBusiness) • Business must redefine itself to embrace Web 2.0 for new innovations • Processes to “open up” & “extend out” to partners and build the network – co-creation, participation, openness, standards, decentralization, users
  64. 64. The Innovation Bootcamp SCAMPER Generation of ideas to change something. Use powerful action verbs. Source: eCornell
  65. 65. The Innovation Bootcamp SCAMPER examples • Business Process Outsourcing – Substitute • Apple iPhone, Smartphones – Combine • Digg, RSS feeds, News subscriptions – Adapt • MP3 Technology and MP3 Players – Minimize • Online Super Stores – Magnify • Grocery Store Check Out Receipt – Put to other uses • Standard versions of Software and Trials – Eliminate • Department Stores – Rearrange
  66. 66. The Innovation Bootcamp SCAMPER Problem • iTunes Store: New business model of 69 cents, 99 cents, $1.29 for songs • What could have Apple done differently? • Substitute, Combine, Adapt, Minimize, Magnify, Put to other Uses, Eliminate, Reverse, Rearrange
  67. 67. The Innovation Bootcamp Key Takeaways • Successful Innovations accelerate & grow business, and provide sustainable competitive advantage • I can be an Innovator – Learn, Learn, Learn • Questions, Institutional memory, Mistakes, Common sense, Hard work, Six ways, Bottom-Up, Creativity Tools, Successes – Never give up! • Build an Innovation Factory e.g. Apple • Products, Design, Experience, People, Culture, Processes, Partners, Networks, Web 2.0
  68. 68. The Innovation Bootcamp Questions? • Creativity begins with asking questions… • Innovation happens when you find answers… • No questions, no answer • More questions, better answer • “The important thing is never to stop questioning.” - Albert Einstein
  69. 69. The Innovation Bootcamp Contact Us Main: 1-877-904-6660 Fax: 1-949-861-9320 Creativity And Innovation Driving Business