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Enhance Your Strategic Innovation Efforts

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Enhance Your Strategic Innovation Efforts

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Outline of a process from ideation and strategy, through planning (technical, commercial, financial, operational) to execution based on asking questions and seeking the answers.

Outline of a process from ideation and strategy, through planning (technical, commercial, financial, operational) to execution based on asking questions and seeking the answers.

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Enhance Your Strategic Innovation Efforts

  1. 1. www.Hexagon-INNovating.com © Duncan.Jones 2013, All rights reserved ENHANCING YOUR Strategic Innovation EFFORTS 1
  2. 2. www.Hexagon-INNovating.com © Duncan.Jones 2013, All rights reserved STRATEGIC INNOVATION “...creation of growth strategies, new product categories, services or business models that change the market and generate significant new value for consumers, customers and the organisation.” Saswati www.innovationandimprovement.com and Palmer and Kaplan www.innovation-point.com. 2
  3. 3. www.Hexagon-INNovating.com © Duncan.Jones 2013, All rights reserved3 Council of Canadian Academies, 2013. Innovation Impacts: Measurement and Assessment www.scienceadvice.ca “Innovation is the sine qua non of economic and social progress. It is the predominant source of new or improved products, processes, and methods of marketing and organization that drive the competitiveness of our business sector; generate the income that sustains our standard of living; alter the way we interact with each other and the natural world; and solve (and sometimes create) the technical and social problems we face.”
  4. 4. www.Hexagon-INNovating.com © Duncan.Jones 2013, All rights reserved4 APPLICATIONS Start-ups and Early-stage Companies Established Firms with a New Idea Due Diligence for Potential Investors Internal Projects Seeking the Go Ahead Companies considering partnering or merging Firms Exploring New Markets
  5. 5. www.Hexagon-INNovating.com © Duncan.Jones 2013, All rights reserved5 THe METHODOLOGY IS BASED ON PLANNING LEADING TO ACTION “Written goals provide clarity. By documenting your dreams, you must think about the process of achieving them.” Gary Ryan Blair
  6. 6. www.Hexagon-INNovating.com © Duncan.Jones 2013, All rights reserved6 ADVANTAGES Increases the Probability of Success Prepare for Contingencies and Minimize Surprises Accelerates the Implementation Identify Additional Opportunities and Improvements “Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.” Sun Tzu, The Art of War
  7. 7. www.Hexagon-INNovating.com © Duncan.Jones 2013, All rights reserved Strategic Execution(al) Operational Financial Commercial Technical 7 6 CONSIDERATIONS
  8. 8. Technical www.Hexagon-INNovating.com © Duncan.Jones 2013, All rights reserved8 INTERRELATionS Financial Strategic Commercial Operational Execution(al)
  9. 9. www.Hexagon-INNovating.com © Duncan.Jones 2013, All rights reserved9 ITERATIONS Operational Financial Commercial Technical (PLANNING) EXECUTION (TactIcs) StrategY
  10. 10. Effectiveness Efficiency 80% 20% 80% 20% 25,000 m 4,700 m 12,000 m Strategy Planning Tactics/ Execution www.Hexagon-INNovating.com © Duncan.Jones 2013, All rights reserved10 FOCI
  11. 11. www.Hexagon-INNovating.com © Duncan.Jones 2013, All rights reserved11 THe Process INVOLVES THE IDENTIFICATION AND RESOLUTION OF PROBORTUNITIES (Problems AND TheIR ASSOCIATED OPPORTUNITIES) AmONG THESE 6 CONSIDERATIONS. http://www.encyclo.co.uk/define/Probortunity
  12. 12. www.Hexagon-INNovating.com © Duncan.Jones 2013, All rights reserved12 ASKING QUESTIONS AND SEEKING THE ANSWERS IS KEY: WHEN? WHERE? WHAT? WHY? HOW? WHo?
  13. 13. www.Hexagon-INNovating.com © Duncan.Jones 2013, All rights reserved13 Create Value STRATEGIC Capture Value What is the creative idea? Is this a potentially disruptive innovation? What is the customer/ industry pain? What is the job-to-be-done (outcome-driven innovation)? What is the underlying magic of the opportunity? What is the value proposition? What is the risk/ return profile? What are the industry drivers? What is the business/ revenue model? What are the barriers to entry? What is the sustainable competitive advantage? What experiments can be undertaken to confirm assumptions?
  14. 14. www.Hexagon-INNovating.com © Duncan.JONES 2013, All rights reserved14 (PLANNING) Probability of Success TECHNICAL Intellectual Property Competitive Environment                COMMERCIAL Market Potential Financial Requirements & Returns FINANCIAL Operating Plans Founders/ Management                    OPERATIONAL Product Pipeline
  15. 15. www.Hexagon-INNovating.com © Duncan.Jones 2013, All rights reserved15 Probability of Success TECHNICAL Intellectual Property What research and development is required? What proof(s) of concept have been/ need to be achieved? What level of risk remains in the development effort? What regulatory hurdles exist? What is the time to market? Is the offering user-friendly? What is the degree of manufacturability? Is the innovation easily scaleable? Are there critical components/ suppliers? Is there valuable know-how or trade secrets? Is there formal Intellectual Property (patents, trademarks)? Is there Freedom to Operate?
  16. 16. www.Hexagon-INNovating.com © Duncan.Jones 2013, All rights reserved16 Competitive Environment                COMMERCIAL Market Potential Who are the current/ potential direct competitors? Who are possible lateral competitors? What are the business models of the competition? What are the possible competitive responses? What are the socioeconomic trends that may impact sales? What is the addressable/ existing/ forecast market size? What is the pricing strategy? What degree of market penetration is forecast? Who are potential sales and marketing partners? What are the distribution channels? What is the marketing plan (branding, advertising)? What are the service requirements?
  17. 17. www.Hexagon-INNovating.com © Duncan.Jones 2013, All rights reserved17 Financial Requirements & Returns FINANCIAL Operating Plans What are the immediate capital requirements? What activities can/ should be outsourced? Is the customer also the buyer/ payer? What are the forecast revenues, costs, profits and cash flows? What are the raw material,WIP and finished inventory costs? What are the financing requirements including contingencies? What aspects of the financial model are most sensitive? What is the expected return on investment (ROI)? What is the exit strategy (IPO, trade sale)? What is on the critical or near critical path? What are the major logistical challenges? What are the key performance indicators?
  18. 18. www.Hexagon-INNovating.com © Duncan.Jones 2013, All rights reserved18 Founders/ Management                    OPERATIONAL Product Pipeline How invested are the founders in the opportunity’s success? Who are the key team members? What additional skills and experience are needed? How are key personnel attracted, compensated and retained? Is there a strong, engaged Board of Directors? What additional advisors, experts and mentors are involved? How are timely, efficient and effective communications fostered? Who are key technical and operational partners? What is the estimated useful life of the offering? What are the plans for developing and launching improvements? What complementary products/ services should be offered? What other products/ services are in the pipeline?
  19. 19. www.Hexagon-INNovating.com © Duncan.Jones 2013, All rights reserved19 Productivity EXECUTION Progress (TACTICS) What are the (3) current foci/ top priorities/ next steps? How could progress be accelerated? How is the value proposition being tested? What strength or opportunity should be pursued? What weakness or threat needs to be addressed? How are authority and responsibility delegated? Who are the initial target customers and opinion leaders? How are the customers being reached (advertising, direct, trials)? How can the sales cycle be shortened? How is repeat and referral business encouraged? What investments are being made now for the future? How are new probortunities incorporated into the strategy?
  20. 20. www.Hexagon-INNovating.com © Duncan.Jones 2013, All rights reserved20
  21. 21. www.Hexagon-INNovating.com © Duncan.Jones 2013, All rights reserved DuncanJones@ HEXAGON-INNOVATING.COM 21 Technology Science Idea Product/ Service Concept Research & Development Academia VALUE CREATION Commercialization Business Implementation Marketed Product/ Service Sales & Marketing INDUSTRY VALUE CAPTURE

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