Margaret HeartyIntro / Why are we here? Director, InterTradeIreland Peter Craven“Delivering Value from Innovation” CDE Global Matrix“Achieving Ambitious Business Growth” Innovation Team MatrixChallenge Programme Overview Innovation TeamProgramme Application / Networking
“a strategy of innovation” Patsy Carney | EirGen Pharma
“a mindset for innovation” David Barrett | cute-e Ireland, U.K. & Singapore
“vennetics: case study” John Hamill | Vennetics Ltd.
“delivering value from innovation” Peter Craven | CDE Global
“achieving ambitious business growth” Graeme Crombie & Jamie McCallum | Matrix Innovation Team
Average % Profit Margin vs Core Business Strategy16151413121110 9 8 7 Low Cost Quick Delivery Voice of Customer High Quality Innovation Georgia Institute of Technology n=738
A4: Create regardless of market demand.“If I had askedmy customerswhat theywanted, they’dhave said fasterhorses.” Henry Ford
A4: Create regardless of market demand.“If you’re not Monopolyunique you’dbetter becheap.” Doug Hall Commodity
Be honest about your growth aspirations……£/€ Past Future (now) 5 Years Time
Be honest about your growth aspirations……£/€ Want to get to here? Normal Incremental Growth Continues. Sales stay the same. Past Future (now) 5 Years Time
Be honest about your growth aspirations……£/€ Want to get to here? Same Old Stuff Normal Incremental Growth Continues. Sales stay the same. Past Future (now) 5 Years Time
Be honest about your growth aspirations……£/€ Want to get to here? New and Different Normal Incremental Growth Continues. Sales stay the same. Past Future (now) 5 Years Time
A4: Create regardless of market demand.“Insanity: Doing the samething over and over againand expecting differentresults.” Albert Einstein
EXISTING NEW PRODUCTS PRODUCTSMARKETSEXISTING market product penetration developmentMARKETS NEW market unrelated development diversification
Problem………So if innovation is the key to achievingthe growth that companies desire. Andit’s at the top of the agenda of yourgovernments and support agencies….Why don’t more companies adopt aninnovation strategy????
based solely on research into…• The factors which make products/services succeed or fail.• The factors that make business development teams effective.
by reverse engineering….• Over 4,000 real products and services.• Over 6,000 business development teams.
• Small Scottish Manufacturing Company.• Produce electronic sensors and switches.• Customers are predominantly automotive.• Sell to: JCB | Volvo | Leyland DAF | Daimler.• Innovation has seen their t/o rise from £2.5M to a projected £8M in 2011/12.• Janice Marriot is the Sales & Marketing Director……
Usual Company Systems ApproachConsumer / Concept R&D and Sales Market Development Product/Supply Forecasting Research Development Evaluation Rework - Redo - Restart Rework - Redo - Restart
Usual Company Systems Approach• Typical marketplace success of 5-15%.• Designed to deal with cost & risk.• Reduces risk by holding ideas back from the market.• Ignores the biggest risk of missing the opportunity.
The Simultaneous Engineering Approach Product Development Rapid Cycles of Test & Learn Business Marketing Model Development Development
The Simultaneous Engineering Approach • Typical marketplace success of over 45%. • Products accelerate to market in a fraction of the time. • Utilises “Fail Fast. Fail Cheap.” methodology to kill off costly losers ASAP.
the three stages of the system… Evaluate LaunchCreate Ideas Ideas Ideas A system for A system for picking A system for getting creating as many ideas with the highest ideas to market withideas as possible. probability of success. the minimum of time, money and risk.
Pipeline Management of Innovation High Probability Correct Ideas (£/€) Understanding of Value Medium Probability Ideas (£/€) = Max Chance of Hitting Growth Low Probability Ideas (£/€) Targets From Innovation
A max of 30 Selected Companies will get:2 Full Day Workshops Covering: • Business Strategy & Planning • Innovation System Training Plus An innovation culture assessment on your wholecompany benchmarking you against world class in a number of key innovation areas.
A final 10 Selected Companies will get:In-company intensive mentoring to output:• 30 - 70 new ideas generated.• At least one real new product/service being commercialised.• Start implementation of the system to create ideas, pick high probability winners and rapidly commercialise them with the minimum of time, money & risk.
You must be committed to:• Availability / attendance of workshops on: 11th & 18th of October 12th & 19th of October• Commitment of your team with management support to 6 days over a period of 6 months.• Completion of a business plan for application to the final stage.
Application Time / Networking Slides available from Thursday at:www.intertradeireland.com/challenge/