Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Innovation ManagementIndustry Perspective<br />
Topics<br />What is innovation?<br />What are the boundaries, where does it start/stop<br />Where does innovation fit with...
What is innovation?<br />Primary sources<br />Internal – Marketing, Sales, R&D, Service Tech’s, Phone support, other<br />...
Boundary Conditions<br />Are there boundaries for innovation?<br />Consider these concepts – types of innovation<br />Semi...
Post Its Story<br />In 1968, Dr. Spencer Silver, a scientist at 3M in the United States, developed a &quot;low-tack&quot;,...
Basis for Innovation<br />Marketing?<br />Sales?<br />Engineering/R&D?<br />Operations?<br />Service?<br />
Where does innovation fit?<br />Everyone owns it<br />Sales for customer interaction and VOC<br />Marketing for core resea...
Principles of Innovation<br />Understand the customer and the market<br />Voice of the Customer, Hierarchy of Needs can he...
Levers of Performance<br />Increase Revenue<br />Decrease Cost<br />
What’s the portfolio about?<br />Portfolio Analysis - Investing in the right products at the right time to balance innovat...
Tunnel or Funnel<br />The tunnel effect is what happens when a company doesn’t have an effective stage gate process<br />E...
Innovation matters to CEO’s because of revenue and margin<br />
Premise of Product Lifecycle Management – up and to the right<br />Concept<br />Design &Develop<br />Prototype<br />& Pilo...
Stage Gate Reviews<br />What happens in stage gate reviews<br />What’s the intent<br />Who is involved <br />What decision...
Upcoming SlideShare
Loading in …5
×

Innovation Management

4,599 views

Published on

Fundamentals of Innovation, Quality Management

Published in: Business, Technology

Innovation Management

  1. 1. Innovation ManagementIndustry Perspective<br />
  2. 2. Topics<br />What is innovation?<br />What are the boundaries, where does it start/stop<br />Where does innovation fit within the overall business context<br />What links do you see to other classes and concepts<br />Is there a function for innovation or is it a process<br />As CEO how do you manage innovation<br />What are key metrics, how are trade-offs managed<br />
  3. 3. What is innovation?<br />Primary sources<br />Internal – Marketing, Sales, R&D, Service Tech’s, Phone support, other<br />External – Suppliers, customers, competitors, Universities – mad scientists<br />Is innovation a Product, Process, Service ????<br />Consider i-Pods – repackaged MP3 technology<br />Amazon ordering process – patented 1-click ordering process<br />CountryWide and WaMu – developed new services in sub-prime mortgage space<br />
  4. 4. Boundary Conditions<br />Are there boundaries for innovation?<br />Consider these concepts – types of innovation<br />Semiconductors – Break-through (science project)<br />Tremendous investment in core research – leading edge physics, chemistry, EE<br />i-Pod – Derivative (VOC, music industry market need – DRM)<br />Limited innovation, new ID yet repackaged known technology<br />Post-it Notes – Stumble upon (<br />were never a VOC topic – sometimes a product leads you to demand<br />
  5. 5. Post Its Story<br />In 1968, Dr. Spencer Silver, a scientist at 3M in the United States, developed a &quot;low-tack&quot;, reusable adhesive. For five years, Silver promoted his invention within 3M, both informally and through seminars, but without much success. In 1974, a colleague of his, Arthur Fry, who sang in a church choir, was frustrated that his bookmarks kept falling out of his hymnal. He had attended one of Silver&apos;s seminars, and, while listening to a sermon in church, he came up with the idea of using the adhesive to anchor his bookmarks.[1] He then developed the idea by taking advantage of 3M&apos;s officially sanctioned bootlegging policy. 3M launched the product in 1977 but it failed as consumers had not tried the product. A year later 3M issued free samples to residents of Boise, Idaho. 90% of people who tried them said that they would buy the product. By 1980 the product was sold nationwide in the US and a year later they were launched in Canada and Europe.[2] In 2003, the company came out with Post-it Super Sticky notes, with a stronger glue that adheres better to vertical and non-smooth surfaces.<br />
  6. 6. Basis for Innovation<br />Marketing?<br />Sales?<br />Engineering/R&D?<br />Operations?<br />Service?<br />
  7. 7. Where does innovation fit?<br />Everyone owns it<br />Sales for customer interaction and VOC<br />Marketing for core research and unserved needs<br />R&D for new ideas, solutions looking for an answer<br />Operations for supplier engagement and new ideas<br />Services for post-sales VOC and understanding use conditions<br />Because innovation has many potential sources and is diffused in the business it’s challenging<br />IdeaStorm from Dell – collaborate on innovation<br />
  8. 8. Principles of Innovation<br />Understand the customer and the market<br />Voice of the Customer, Hierarchy of Needs can help<br />Develop and maintain a portfolio of opportunities<br />Front-end opportunities require development<br />Back-end opportunities need to be euthanized<br />Angelow’s Law – Killing a product is twice as difficult as launching a new item<br />No one wants to lose revenue opportunity – there is always one deal on the horizon<br />Generally, no one knows true costs, and killing one product might increase costs of other products because of Overhead<br />Personal investment – it’s fun to create something new, no fun to bury a legacy of success – after all it’s someone’s baby<br />Discipline drives success<br />Discipline in project selection<br />Discipline in stage gate reviews<br />Discipline in project plan execution (Scope, Risk and People Management)<br />
  9. 9. Levers of Performance<br />Increase Revenue<br />Decrease Cost<br />
  10. 10. What’s the portfolio about?<br />Portfolio Analysis - Investing in the right products at the right time to balance innovative products with lower risk investments<br />Ideas & Money<br />Slide 10<br />
  11. 11. Tunnel or Funnel<br />The tunnel effect is what happens when a company doesn’t have an effective stage gate process<br />Everything is built – no killing of ideas<br />May invest resources in things that don’t matter to the market<br />Funnel uses gate reviews to evaluate progress<br />Not only progress on development of the idea<br />Progress of the market – validate the opportunity is still there<br />
  12. 12. Innovation matters to CEO’s because of revenue and margin<br />
  13. 13. Premise of Product Lifecycle Management – up and to the right<br />Concept<br />Design &Develop<br />Prototype<br />& Pilot<br />Launch<br />& Ramp<br />Service <br />& Support<br />Phase-out<br />& Disposal<br />Production<br />DRIVE MARGINS& REDUCE SUPPLY RISK<br />OPTIMIZE<br />INVESTMENT<br />DECISIONS<br />RAMP TO VOLUME& HIT TARGET COST<br />MITIGATE RISK<br />ASSOCIATED WITH<br />REGULATORY COMPLIANCE<br />REDUCE SERVICE & WARRANTY<br />COSTS<br />GET TO MARKET<br />FASTER<br />DEVELOP PRODUCTS<br />“RIGHT TO MARKET”<br />
  14. 14. Stage Gate Reviews<br />What happens in stage gate reviews<br />What’s the intent<br />Who is involved <br />What decisions are made<br />

×