1.
INNOVATION MANAGEMENT
+ DESIGN PRACTICE
CHALLENGES
FOR SOCIAL ENTREPRENEURS
Originally presented to I2C Team, New York, 4 October 2010
Julian Keith Loren

2.
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES
INTRODUCTION
Social Entrepreneurs and Social Innovators
are dedicated to finding innovative solutions
to perplexing global problems
10/19/2010 Julian Keith Loren, Innovation Management Institute. 2

3.
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES
INTRODUCTION
Social Entrepreneurs and Social Innovators
are dedicated to finding innovative solutions
to perplexing global problems
ILLITERACY HUNGER
DISEASE
POLLUTION HOMELESSNESS
10/19/2010 Julian Keith Loren, Innovation Management Institute. 3

4.
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES
ISSUE
But Social Entrepreneurs and Social Innovators
often find that their education and experience
has not adequately prepared them for the
challenges that they face.
10/19/2010 Julian Keith Loren, Innovation Management Institute. 4

5.
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES
EXAMPLE
A Social Venture has a big goal …
… a business parter … … and a design partner
10/19/2010 Julian Keith Loren, Innovation Management Institute. 5

6.
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES
BUSINESS PARTNER
I have lots of
experience + an MBA
from a great school.
10/19/2010 Julian Keith Loren, Innovation Management Institute. 6

7.
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES
BUSINESS PARTNER
HAVE
I’m good at managing:
• Reasonably well-defined
• Relatively well-understood
• Incremental
improvements
to operations
10/19/2010 Julian Keith Loren, Innovation Management Institute. 7

8.
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES
BUSINESS PARTNER
HAVE NEED
I’m good at managing: But I’m trying to manage:
• Reasonably well-defined • The unpredictable
• Relatively well-understood • The “never been done
before”
• Incremental
improvements • Delivering disruptive
to operations innovation that has
huge positive impact
10/19/2010 Julian Keith Loren, Innovation Management Institute. 8

9.
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES
DESIGN PARTNER
I have the best design
education available +
a great portfolio.
10/19/2010 Julian Keith Loren, Innovation Management Institute. 9

10.
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES
DESIGN PARTNER
HAVE
I can radically reimagine
products + services when
all externalities exist.
10/19/2010 Julian Keith Loren, Innovation Management Institute. 10

11.
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES
DESIGN PARTNER
HAVE
I can radically reimagine
products + services when
all externalities exist.
DESIGN
DESIGN
COMFORT CHALLENGE
ZONE
All Externalities Exist
10/19/2010 Julian Keith Loren, Innovation Management Institute. 11

12.
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES
DESIGN PARTNER
HAVE NEED
I can radically reimagine But I’m trying to design:
products + services when
all externalities exist. • Wa-a-a-a-ay outside of the
DESIGN COMFORT ZONE
• Design entire systems or
DESIGN industry models
DESIGN
COMFORT CHALLENGE
ZONE • Design within constraints
All Externalities Exist that I’ve never imagined!
10/19/2010 Julian Keith Loren, Innovation Management Institute. 12

13.
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES
CHALLENGES
There is a relationship between …
Distance from the DESIGN COMFORT ZONE
DESIGN WAY
COMFORT OUTSIDE
ZONE THE ZONE
10/19/2010 Julian Keith Loren, Innovation Management Institute. 13

14.
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES
CHALLENGES
There is a relationship between
HUGE
“IDEA distance from the DESIGN COMFORT ZONE
MOLECULE”
and …
Number of
Required
Ideas
SINGLE
“IDEA
ATOM”
Distance from the Design Comfort Zone
DESIGN WAY
COMFORT OUTSIDE
ZONE THE ZONE
10/19/2010 Julian Keith Loren, Innovation Management Institute. 14

15.
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES
CHALLENGES
Typically,
HUGE
the FURTHER from the DESIGN COMFORT ZONE,
“IDEA
MOLECULE”
Number of
Required
Ideas
SINGLE
“IDEA
ATOM”
Distance from the Design Comfort Zone
DESIGN WAY
COMFORT OUTSIDE
ZONE THE ZONE
10/19/2010 Julian Keith Loren, Innovation Management Institute. 15

16.
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES
CHALLENGES
Typically,
HUGE
the FURTHER from the DESIGN COMFORT ZONE,
“IDEA
MOLECULE”
the LARGER the necessary team of mutually-reinforcing ideas
Number of
Required
Ideas
SINGLE
“IDEA
ATOM”
Distance from the Design Comfort Zone
DESIGN WAY
COMFORT OUTSIDE
ZONE THE ZONE
10/19/2010 Julian Keith Loren, Innovation Management Institute. 16

17.
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES
CHALLENGES
The vast majority of solutions lie within the region shown below
HUGE
“IDEA
MOLECULE”
Number of
Required
Ideas Most Solutions
SINGLE
“IDEA
ATOM”
Distance from the Design Comfort Zone
DESIGN WAY
COMFORT OUTSIDE
ZONE THE ZONE
10/19/2010 Julian Keith Loren, Innovation Management Institute. 17

18.
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES
CHALLENGES
HUGE
“IDEA Problems here can’t
MOLECULE”
be addressed by small
teams of ideas.
Number of
Required
Ideas
SINGLE
“IDEA
ATOM”
Distance from the Design Comfort Zone
DESIGN WAY
COMFORT OUTSIDE
ZONE THE ZONE
10/19/2010 Julian Keith Loren, Innovation Management Institute. 18

19.
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES
CHALLENGES
Social venture
EXAMPLES developing
innovative products
HUGE
Minimally- or services for rural
“IDEA Innovation
MOLECULE” disruptive sub-saharan Africa
supporting White
Award- new Space / Blue Ocean
winning business Strategy® goals
product model
design
Number of
Required
Ideas
Product or
service
requiring new
customer
SINGLE
“IDEA
behaviors
ATOM”
Incremental
Distance from the Design Comfort Zone
product or
service
DESIGN WAY
COMFORT innovation OUTSIDE
ZONE THE ZONE
10/19/2010 Julian Keith Loren, Innovation Management Institute. 19

20.
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES
CHALLENGES
HUGE
“IDEA
MOLECULE” Here you should
reserve judgment +
prototype quickly.
Number of
Required
Ideas
SINGLE
“IDEA
ATOM”
Distance from the Design Comfort Zone
DESIGN WAY
COMFORT OUTSIDE
ZONE THE ZONE
10/19/2010 Julian Keith Loren, Innovation Management Institute. 20

21.
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES
CHALLENGES
Here you should reserve no
judgment + pilot wisely +
HUGE
“IDEA prototype strategically.
MOLECULE” Here you should
reserve judgment +
prototype quickly.
Number of
Required
Ideas
SINGLE
“IDEA
ATOM”
Distance from the Design Comfort Zone
DESIGN WAY
COMFORT OUTSIDE
ZONE THE ZONE
10/19/2010 Julian Keith Loren, Innovation Management Institute. 21

22.
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES
CHALLENGES
HUGE
“IDEA
MOLECULE” How can we help
Social Entrepreneurs
who only know how
to innovate here …
Number of
Required
Ideas
SINGLE
“IDEA
ATOM”
Distance from the Design Comfort Zone
DESIGN WAY
COMFORT OUTSIDE
ZONE THE ZONE
10/19/2010 Julian Keith Loren, Innovation Management Institute. 22

23.
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES
CHALLENGES
HUGE
“IDEA
MOLECULE” How can we help … take on design
Social Entrepreneurs challenges out here?
who only know how
to innovate here …
Number of
Required
Ideas
SINGLE
“IDEA
ATOM”
Distance from the Design Comfort Zone
DESIGN WAY
COMFORT OUTSIDE
ZONE THE ZONE
10/19/2010 Julian Keith Loren, Innovation Management Institute. 23

24.
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES
PLEASE HELP!
We’re working to tailor Design Strategy + Innovation
HUGE
Management curriculum to the needs of Social Entrepreneurs.
“IDEA
MOLECULE”
Please see where we are and let us know your ideas at
http://bit.ly/SocEntCur
Number of
Required
Ideas
SINGLE
“IDEA
ATOM”
Distance from the Design Comfort Zone
DESIGN WAY
COMFORT OUTSIDE
ZONE THE ZONE
10/19/2010 Julian Keith Loren, Innovation Management Institute. 24