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Inno Pass Breakthrough Innovation Ss
1.
Breakthrough innova/on
Crea/ng organic growth Mar/n van de Ven April 2012 © InnoPass 1
2.
The real difficulty
in changing any enterprise lies not in developing new ideas, but in escaping from the old ones. John Maynard Keynes © InnoPass 2
3.
Successful breakthrough innova/on
drives growth, Companies that are the most successful at achieving growth through innovation tend to devote their energies to a small number of breakthrough ideas[1]. Only about 80 of Fortune’s Global 500 turned in an annual average of at least 5% organic sales growth over 10 years. These organic growth champions (Apple, GE, BMW, Nestle, Samsung) delivered almost double the shareholder returns than the other Global 500 companies. Turnover Turnover Cost price of Extreme UV TV? 1 GB memory TWINSCAN immersion iPad TWINSCAN iPhone PAS5000 iPod PAS2000 Mac Time Time ASML enabled miniaturization and cost price reduction of Apple transformed the way we interact with computers, electronics with breakthrough innovations in IC production music, mobile devices and books [1] “Focus intensely on a few great innovation ideas”, Georg von Krogh and Sebastian Raisch, Harvard Business Review, 2009 © InnoPass 3
4.
…while failure causes
business decline or bankruptcy. Failure to create breakthrough innovations can seriously jeopardize a companies business[2]. An example is Philips Display Components that played a leading role in CRT technology and missed out on LCD screen technology. Another example is K-Mart that lost its business to Wall Mart that create breakthrough innovation in retail logistics. 1 A premium market position backfires 2 Innovation management breaks down A company ignores major shifts A company focuses on in customer preference upon incremental extensions with competitive breakthrough direct return on investment, not innovation breakthrough innovations. 3 A core business is abandoned prematurely 4 The company lacks a strong talent bench Believing its core markets are A firm has few executives saturated a company does not and staff that possess explore breakthrough breakthrough innovation innovation options. execution capabilities. [2] ‘When growth stalls, Matthew S. Olsen, Derek van Bever and Seth Verry, Harvard Business Review, 2008 © InnoPass 4
5.
Building breakthrough businesses
is a challenge… By nature breakthrough innovation requires a different approach than continuous innovation [3,4]. It should build on your core strengths, but forget about the conventions that made your core business successful. It should be able to borrow what adds competitive advantage and learn freely what else is required for a successful implementation. Forget… Borrow… Learn… …some of what has made …only those assets from the …quickly to resolve your your core business core business that provide a breakthrough innovation’s successful. distinct competitive inevitable unknowns, to zero in advantage. on a winning business model.. [3] How the growth outliers do it, Rita Gunter McGrath, Harvard Business Review, 2010 [4] Bulding breakthrough businesses within established organizations, Vijay Govindarajan and Chris Trimble, Harvard Business Review, 2005 © InnoPass 5
6.
…that InnoPass helps
you to tackle…. InnoPass developed an organic process, tools and skills required to identify and implement breakthrough innovation opportunities. Our philosophy is action-oriented. This involves experimentation to accelerate learning and delivers concrete tangible results in each step. 3. Fetal Growth 2. Fertilize 4. Childhood 1. Ovulate Develop-‐ ment Mother Opera-‐ 5. Puberty Strategy Business 3ons Innovation Strategy Research 6. Adolescence © InnoPass 6
7.
…and integrate in
your organiza/on. Innovation strategy is an ongoing topic on your management agenda. InnoPass focuses on establishing a healthy portfolio balance between business improvements, incremental innovation and breakthrough innovation. Next to that InnoPass supports the capability development for breakthrough innovation in your organization. Develop-‐ ment Mother Opera-‐ Strategy Business Threat 3ons Innova3on Research Opportunity Mother business with several strategic experiments addressing key opportunities and threats with breakthrough innovation © InnoPass 7
8.
Technology Valoriza/on
Case: Arnitel Eco © InnoPass 8
9.
1. Ovulate
Arnitel Eco is a bio-based material with a different set of properties than ‘normal’ Arnitel. DSM did not know where to market this technology and proposed to focus on its ecological advantages. InnoPass helped DSM to focus on a specific market (sports in this case) and explain the strengths of the material in a more compelling way for people defining new sports equipment. Custom shaping Connections Color Stretch Flexible & block Protection Skin Feel Weight Saving Shock Absorption Durability Energy Return Traditional technical folder of DSM focusing on All Arnitel Eco sports shoe concept, showing the generic ecological benefits of the material different material form factors and core strengths © InnoPass 9
10.
2. Fer/lize
Given the large diversity of sports and sporting equipment, DSM needed broad expertise to evaluate the potential of Arnitel Eco in the sports market. InnoPass designed and executed a crowd co-creating challenge to tap into the wisdom of experts in the world. LinkedIn advertising was applied to attract a solvers target group to the challenge. LinkedIn group with 170 specialists following the Large variety of high quality ideas provided by 40 experts challenge, providing a reference group for DSM in sports around the world © InnoPass 10
11.
3. Fetal Growth
After the crowd co-creation challenge, 6 benefit platforms resulted for Arnitel Eco. Some of these benefits could be leveraged following the standard DSM innovation process offering improvements to their customers products. The potentially most valuable benefits platforms require additional effort giving the proposition and business case hands and feet. Key challenge is how to inspire a value chain to adopt a totally new concept for the consumer market. DSM typically delivers plastic granulates to convertors. Breakthrough innovation enabled by the new technology Next to the product, DSM offers application & process requires a careful choice of ecosystem and your own support. position in it. Note: The actual DSM proposition is confidential. © InnoPass 11
12.
Mar/n van de Ven Senior business and marke/ng consultant InnoPass Dena Innovest BV Molenveld 36 5611EX Eindhoven The Netherlands Mob: +31 6 1093 6998 KvK Eindhoven: 17249495 BTW nummer: 8207.60.638B01 © InnoPass 12
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