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Haas Innovation Challenges Presentation


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Presentation to an MBA class on innovation at UC Berkeley's Haas School of Business. Discusses some of the challenges with innovation facing many companies today, and methods and approaches for dealing with them, making innovation more consistently effective.

Published in: Business, Technology
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Haas Innovation Challenges Presentation

  1. Adam Richardson<br />Innovation X:<br />Twitter: @richardsona<br />Blog:<br />HAAS SCHOOL OF BUSINESS<br />March 3, 2010<br />
  2. We are a global innovation firm.460 people / 32 nationalities / 40 years of experience<br />We help the world’s leading companies create and bring to market meaningful products, services, and experiences that improve people’s lives.<br />Our multidisciplinary process reveals valuable consumer and market insights and delivers lasting, humanizing solutions across multiple technologies, platforms, and media.<br />2<br />Company overview<br />
  3. 5<br />In 1969 what we did was… <br />Sketching<br />Rendering<br />Modelmaking<br />Manufacturing Support<br />
  4. 6<br />Company overview<br />Today: A comprehensive range of innovation capabilities <br />
  5. 7<br />Company overview<br />Our process turns insights into solutions<br />
  6. Innovation Challenges<br />
  7. Where do innovative ideas come from?<br />
  8. From genius?<br />
  9. 11<br />From customers?<br />People don’t want a drill-bit.<br />They want a hole!<br />- Theodore Levitt<br />
  10. 12<br />From technology?<br />
  11. 13<br />For anyone bright, creative and ambitious enough to want to make a huge impact in their organization.<br />Dan Pink, author A Whole New Mind<br />A brilliant design and business book that gives tools for transforming innovation cultures.<br />Michael Schrage, MIT Sloan School of Business<br />Hits upon a global, macro trend that is impacting all corporations, large and small.<br />Michael Mendenhall, CMO, Hewlett-Packard<br /><br />
  12. 14<br />Common challenges<br />Commoditization: Market stagnation, hyper-competition, price pressure, few possibilities for differentiation<br />Dealing with Risk: Trapped in near-term sure-bet thinking, creating an innovation portfolio<br />Disconnected from Customers: Too removed from really understanding customers’ real motivations, behaviors and needs. Existing research not giving the necessary answers.<br />Emerging Markets: Big growth opportunities but hard to engage, need to adjust offerings to make them work, understand cultural and economic factors<br />
  13. 1. Commoditization<br />
  14. Intel Point-of-Sale<br />
  15. 18<br />Intel saw an opportunity to bring excitement to a dull segment that it had no previous experience in<br />
  16. 19<br />
  17. 2. Dealing With Risk<br />
  18. 21<br />If you’re not prepared to be wrong, you will never come up with anything new.- Sir Ken Robinson<br />
  19. Don’t worry about other people stealing your ideas.<br />If your ideas are any good, you’ll have to ram them down people’s throats.<br />Howard Aiken, IBM Engineer<br />22<br />
  20. “It’s such a fine line between stupid and clever.”- David St. Hubbins<br />23<br />
  21. 24<br />Our traditional research told us that there was a total available world market of about two million units for a $499 phone; we sold over two million units in the UK alone.<br />If you want to be a leading company, you have to create the products that create your destiny.<br />Geoffrey Frost, former CMO, Motorola<br />
  22. 25<br />Manage the Innovation Portfolio<br />“Lower Risk”<br />“Higher Risk”<br />Incremental<br />(1-2 years<br />advantage)<br />Radical<br />(5-10 years<br />advantage)<br />
  23. 26<br />Hewlett-Packard<br />
  24. 27<br />What is HP’s business?<br />1939<br />Oscilloscopes<br />1999<br />Laptops<br />Desktop PCs and workstations<br />Information appliances<br />Inkjet printers and AIO’s<br />Laser printers and MFPs<br />Copiers<br />Calculators<br />Digital cameras<br />PDAs<br />Enterprise servers<br />Enterprise storage<br />Enterprise software<br />Networking hubs<br />Thin clients<br />Lab and scientific equipment<br />2009<br />Laptops & tablet PCs<br />Desktop PCs and workstations<br />Inkjet printers and AIO’s<br />Laser printers and MFPs<br />Copiers<br />Calculators<br />PDAs<br />Scanners and faxes<br />Monitors<br />Home servers<br />Media centers<br />Gaming systems<br />Photo printer services<br />Enterprise servers<br />Enterprise storage<br />Enterprise IT services<br />Utility computing<br />Enterprise software<br />Networking<br />Videoconferencing<br />Logo & graphic design services<br />In-store photo printing<br />Commercial printers<br />Commercial presses<br />Online backup<br />Cloud services<br />
  25. 28<br />HP<br />
  26. 29<br />HP TV’s<br />
  27. 30<br />How do you become a $100M business in 3 years in a saturated market?<br />
  28. 3. Customer Insight<br />
  29. 32<br />Design research is not market research, but complements it<br />Market Research<br />Culls broad market trends<br />Scripted<br />Verbal<br />Weights the outliers<br />Yields “consumer data”<br />Design Research<br />Gathers specific anecdotes<br />Improvisational<br />Non-verbal & observational<br />Loves the outliers<br />Drives the user experience<br />
  30. Ethnographic Research<br />We used a diary study to engage consumers over an extended period to better understand how healthcare decisions fit into their lives. We followed the diary studies with contextual in home interviews.<br />Our two-fold approach combined diary studies, to give us a better understanding of decision making processes, and in-home interviews, to give us a better understanding of the social arrangements. By conducting the diary study first, we became very familiar with our subjects, both their decision-making processes and attitudes towards health, before we met them in person.<br />
  31. Health Care<br />Doctors no longer serve as a central guide or connection to the healthcare system. Consumers feel that they know more about their individual health situation than their doctor.<br />
  32. 4. Emerging Markets<br />
  33. Case Study: Project Masiluleke<br />
  34. HOW DOES IT WORK?<br />The service works by embedding health care messages along side ‘Call-Me-Backs’ a type of free messaging that is unique to Africa and used primarily by low income people in poor communities. Call-Me-Back messages are limited to a small number of characters, leaving room for additional information that we are using to promote awareness of support services. This messaging space can also contain direct links to toll free numbers and messaging services.<br />
  35. 4x<br />Number of calls into National AIDS Helpline<br />5,000<br />Calls per day<br />
  36. There is existing demand for self-testing solutions.<br />Self test kits are available at many pharmacies but cost $18.<br />Healthcare workers routinely steal them from their clinics.<br />None have been designed to appeal to South Africans specifically.<br />
  37. Test Kit Packaging:<br />Package components may be locally made and customized for the region.<br />Diagnostic materials are off-the-shelf, and proven effective. By leaving the pouches untouched, the test is deemed more trustworthy by the South African population as well as saving the expense of custom packaging.<br />All elements of the package serve two purposes. The skin of the package features inspirational content and the test instructions while the red end-caps hold the vial as the test is processing.<br />Communities may participate in assembling the kits, which builds local pride and a stong sense that they can help themselves.<br />
  38. Test Kit Instructions (Zulu):<br />
  39. 43<br />
  40. 44<br />Everybody wants to be be innovative<br />
  41. SIMPLE PROBLEMSProblem and solution are known<br />COMPLEX PROBLEMSProblem is known, solution is not<br />WICKED PROBLEMSNeither problem nor solution are known<br />
  42. The only way to understand the problem is by creating solutions<br />Stakeholders don’t agree on what the problem is or what solutions might be<br />There is no stopping rule (how you know when you’re done and successful<br />
  43. X-Problems<br />
  44. Innovation X Framework<br />
  45. Immersion<br />
  46. Multi-Vector Research<br />Customer Research<br />Competitive Research<br />Trends<br />Core Insights<br />Comparative Research<br />Company Legacy<br />Brand<br />Technology<br />Retail<br />52<br />
  47. Core Insights<br />53<br />Core Competencies<br />Provides customer benefits<br />Hidden know-how<br />Can be leveraged widely<br />Core Insights<br />Forward-looking understanding of customer needs<br />Hidden “know-why”<br />Logical but unexpected<br />
  48. 54<br />
  49. Razor Blade Arms Race<br />
  50. Convergence<br />
  51. 57<br />Zipcar Ecosystem<br />
  52. Divergence<br />
  53. 59<br />Rethinking your business domain<br />
  54. Adaption<br />
  55. 61<br />HP Touchsmart<br />
  56. 62<br />Innovation X:<br />Twitter: @richardsona<br />Blog:<br />