InterTrade Ireland Challenge Programme Workshop 1


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Slides for workshop 1 of the InterTrade Ireland Challenge Programme. Workshop was in Dublin and Belfast on the 11th and 12th of October 2011 respectively.

It covered basic idea generation techniques, understanding what

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InterTrade Ireland Challenge Programme Workshop 1

  1. 1. Today’s Purpose • More PROFITABLE products or services (new or improved)Property ofTeach aReliable System • More PROFITABLE customers & marketsfor AcceleratingProfitable Growth
  2. 2. Today’s Training Simulation is about...Property of
  3. 3. Property of History 1. Founded in 1989 2. By George P. Burdell after he was laid off 3. Created Red Devil Security System in his Garage
  4. 4. THE RED DEVIL Security SystemProperty of Unique Features • Cross Zone • Flash Memory • AES • Sleek Control Panel
  5. 5. THE RED DEVIL Security System Primary market is the 6,000,000 Small Businesses Misc. Small BusinessesProperty of Jewelry Stores Consumers
  6. 6. THE RED DEVIL Security System Sales Trend US Competition Cloned Us China CompetitionProperty of Introduced Won Bid Lean for Tiffanys Made Us Price Competitive
  7. 7. Owner and Founder George P. BurdellProperty of to celebrate the Has gone to Hawaii Lean Turnaround. He’s not had a holiday since 1989.
  8. 8. THE RED DEVIL Security System Sales TrendProperty of Today
  9. 9. Property of The team has analysed what’s happened ... and sent a report to George...
  10. 10. We Need Ideas ForProperty of PROFITABLE GROWTH 5 Minutes to work with your team
  11. 11. …let’s see how GeorgePropertyideas... likes our of
  12. 12. New products/services drive growth…. Growth Rate (%) vs No. New/Improved Products/Services in 3 year periodProperty of
  13. 13. New customers drive growth….Average GROWTH RATEProperty of Number of NEW CUSTOMERS over the past 3 years
  14. 14. What Makes This Program UNIQUE...Property of
  15. 15. Innovation Success FactorsDiscovered byREVERSE ENGINEERINGwhat separates winners from losersProperty of 4,000+ ideas were studied Over 2,000 Academic Journal Articles Reviewed
  16. 16. Process Success FactorsDiscovered byQuality Control Charting of 6,000+ ofProperty Innovation Teams
  17. 17. Its NOT about Balance Sheets, Accounting or Cost ControlProperty of
  18. 18. Today is about changing yourProperty ofTHINKING SYSTEMfor Accelerating Innovation
  19. 19. “94% of failures aredue to the SYSTEMProperty of6% are due to theworker”
  20. 20. The FACTORY offers 3% of the Opportunity for Company Improvement.Property of
  21. 21. Property innovation matter?….why does of
  22. 22. “If you’re not Monopoly unique you’dProperty of better be cheap.” Doug Hall Commodity
  23. 23. Quick Test for Meaningful Uniqueness Are your profit margins... 10% 20% 50%Property of industry? higher than your If not, then you are NOT meaningfully unique
  24. 24. Why the Focus on PROFITABLE GROWTH? Only 1 in 7 small businessesProperty of close leaving debt Over 80% Close Because “It’s not worth the effort”
  25. 25. today……..Property of
  26. 26. Property of
  27. 27. Profit 101Property of simulation = learning
  28. 28. Challenge ProgrammeProperty of to your businessapplies the system
  29. 29. Responsible for £1.5Bn in newProperty of products & services globally.
  30. 30. effectiveness endorsed by…Property of
  31. 31. 6 Key Learning Concepts 1. Dramatic Difference 2. Overt Benefit Difference 3. Real Reason to Believe DifferenceProperty ofStimulus 4. Explore 5. Leverage Diversity 6. Drive Out Fear Agenda --- Basic then ADVANCED
  32. 32. Your Simulation Workbook Put your name on it! Everyone has a different COLOR on the front of their workbookProperty of Notes from the presentation are placed throughout the book
  33. 33. Process Starts with An Assessment Readiness to Create and Execute Profitable GrowthProperty of
  34. 34. Why Are We Here? Why do we at Buzz Electronics need to change our system forProperty of accelerating profitable growth? 10 Minutes to work individually & with your team Handout + Pages 4 & 5
  35. 35. Report Out! thunderous applauseProperty of guaranteed
  36. 36. 6 Key Learning Concepts 1. Dramatic Difference 2. Overt Benefit Difference 3. Real Reason to Believe DifferenceProperty ofStimulus 4. Explore 5. Leverage Diversity 6. Drive Out Fear Agenda --- Basic then ADVANCED
  37. 37. Dramatic Difference You TRIPLE your odds of success when you offer a DRAMATIC DIFFERENCE in Overt Benefit & Real Reason to BelieveProperty of Dramatic Difference Probability of Success Low Dramatic Difference 14% Medium Dramatic Difference 40% High Dramatic Difference 53%
  38. 38. Average % Profit Margin vs Core Business Strategy1615141312 Property of1110 9 8 7 Low Cost Quick Delivery Voice of Customer High Quality Innovation Georgia Institute of Technology n=738
  39. 39. 370% Greater chance of profitableProperty of success for ideas that are Extremely/Very Unique
  40. 40. RADICAL Innovation versus Incremental Innovation Company ValuationProperty of 7X Marketing Effectiveness 9X
  41. 41. Companies That It’s NOT thePatent Grow Certificate5X FasterProperty of It’s the MINDSET!
  42. 42. THE FIRST! THE ONLY!Property of New Customers love NEWS & hope
  43. 43. 6 Key Learning Concepts 1. Dramatic Difference 2. Overt Benefit Difference 3. Real Reason to Believe DifferenceProperty ofStimulus 4. Explore 5. Leverage Diversity 6. Drive Out Fear Agenda --- Basic then ADVANCED
  44. 44. Overt Benefit Difference You TRIPLE the effectiveness of your marketing efforts by OVERTLY communicating your customer benefitProperty of Low Overt Benefit Probability of Success 13% Medium Overt Benefit 26% High Overt Benefit 38%
  45. 45. Features are not Benefits Features are the - FactsProperty of - Figures - Technology - and Details That make up your offering
  46. 46. Benefits are… WHY should I care? I = the customerProperty of will make you “Our product Smarter... Faster... Healthier...”
  47. 47. Property offeature benefit stabilisation reduces control rollover risk
  48. 48. Property offeature benefitquality long-lasting &wax blends glossy shine
  49. 49. Property offeature benefitOn-Line You Save MoreBanking with auto budget
  50. 50. Property offeature benefitContains Fast TeethingBenzocaine 7.5% Pain Relief
  51. 51. WHY should I care? WHY should I care? WHY should I care?Property of WHY should I care? WHY should I care?
  52. 52. Features to Benefits Turn 3 Unique Features of the Red Devil into OVERT BenefitsProperty of Work individually then work with your team 15 mins Pages 6-7
  53. 53. Benefits are Relative to aProperty of Specific Customer
  54. 54. TargetAudience =Property ofThose whocompete Cookshack CookersIn BBQ Send You to TheCompetitions Winners Circle 1,000+ Wins
  55. 55. NEW Target Audience Those who don’t compete WARNING This Electric Cooker isProperty of ILLEGAL in Competitions It gives the user an UNFAIR ADVANTAGE as the even heating makes it too easy to Make Perfect BBQ Every Time
  56. 56. 6 Key Learning Concepts 1. Dramatic Difference 2. Overt Benefit Difference 3. Real Reason to Believe DifferenceProperty ofStimulus 4. Explore 5. Leverage Diversity 6. Drive Out Fear Agenda --- Basic then ADVANCED
  57. 57. Overt Benefit Real Reason to Difference Believe DifferenceProperty of gets customers closes the sale excited
  58. 58. If you’re promising a BENEFIT DIFFERENCEThen…Property Be DoingYou MUST ofSOMETHING DIFFERENTLY (i.e. have a “Reason to Believe” Difference)
  59. 59. Real Reason to Believe Difference You DOUBLE your odds of Success when you Communicate a REAL REASON TO BELIEVE That your OVERT BENEFIT will be delivered.Property of Real Reason To Believe Probability of Success Low Real Reason to Believe 18% Medium Real Reason to Believe 29% High Real Reason to Believe 42%
  60. 60. if every company did whatProperty of they promised…..
  61. 61. Property of no need for….. there would be
  62. 62. “RealProperty of to Reason Believe.”
  63. 63. 93% of consumers do not have confidence in the advertisingmessages of major corporations.Property of -Yankelovich
  64. 64. 64% of consumers do not believethat the news media get their facts straight. -GallupProperty of
  65. 65. Your Overt Benefit Should…Property of DEMAND Real Reason to Believe
  66. 66. It’s Simple BE REALProperty of Tell the TRUTH & do what you promise.
  67. 67. The TruthProperty of Added 5 Words ... “baked in not painted on”
  68. 68. Property of $20M Growth
  69. 69. Five Strategies for adding Real Reason to Believe Probability of Success Holding all else constantProperty of• 1. Tell the Truth 2. Testimonial 3. Pedigree (Methods, Materials) 42% 41% 41% 4. Data or Demonstration 45% 5. Guarantee (That’s “risky”) 60% “risky” to you, not to the client
  70. 70. the TRUTHProperty of
  71. 71. expert TESTIMONIAL The Service: Laser Vision CorrectionProperty of The Benefit: Near Perfect Vision The Real Reason to Believe:Testimonials from DOCTORS who have used this DOCTOR for Eye Surgery
  72. 72. PEDIGREE “Arguably the Best Whisky in the World.” Dave Broom Whisky Magazine “The Greatest All Rounder in theProperty of World of Malt Whisky.” Michael Jackson Whisky Expert “The world’s greatest distilled spirit at the present time. Buy what ever you can find.” Paul Pacult Spirit Journal Retaste 12.07 Overt Communication of Pedigree Grew Sales 30%+
  73. 73. DEMONSTRATIONProperty of
  74. 74. Property of
  75. 75. 6 Key Learning Concepts 1. Dramatic Difference 2. Overt Benefit Difference 3. Real Reason to Believe DifferenceProperty ofStimulus 4. Explore 5. Leverage Diversity 6. Drive Out Fear Agenda --- Basic then ADVANCED
  76. 76. Explore Stimulus • Uniqueness Mining • Customer Mining • Technology MiningProperty of Stimulus Available Low Stimulus # of practical ideas invented 22 Medium Stimulus 38 High Stimulus 47
  77. 77. Stimulus 1 + 1 = 3 + =Property of + =
  78. 78. Traditional Model draining Individual Brainstorming Before AfterProperty of Suck Method Uses Your Brain Like A LIBRARY
  79. 79. COMPUTERProperty of Stimuli sets off a CHAIN Reaction!!!
  80. 80. Where To Go On Holiday?Property of
  81. 81. Where To Go On Holiday?Property of
  82. 82. Real Wisdom is about looking innocently….“We find ourselves looking at the sameold data, but we now see it in aProperty ofdramatically different way. Weexperience another valid - andsometimes more significant way ofunderstanding what is.” Copthorne Macdonald
  83. 83. Like when you FIRST started yourcompany or started your job…Property of
  84. 84. 6 Key Learning Concepts 1. Dramatic Difference 2. Overt Benefit Difference 3. Real Reason to Believe DifferenceProperty ofStimulus 4. Explore 5. Leverage Diversity 6. Drive Out Fear Agenda --- Basic then ADVANCED
  85. 85. Leverage DiversityDiversity multiplies the impact of stimulus.Property of Diversity of Thinking Low Diversity # of practical ideas invented 19 Medium Diversity 30 High Diversity 46
  86. 86. Clones Create Clones What is a rose? “Beauty”Property of “Beauty” “Beauty”
  87. 87. Diversity Multiplies Stimuli “Beauty” What is a rose?Property of “Vitamin C Tea” “Rose Water” “Tango”
  88. 88. Leveraging DiversityProperty of is not for WIMPS!
  89. 89. STIMULUS MINING • Customers • Technologies •Property of • Suppliers Distributors • Sales People • Customer Service Complaints
  90. 90. DIVERSITY Finance R&D OperationsProperty of Marketing Sales Purchasing breaks down internal silos
  91. 91. STIMULUS MINING Uniqueness MiningProperty of Customer Mining employees inputs Pages 8 & 9
  92. 92. For Example… Uniqueness MiningProperty ofhave tonnes Our sensors of extra memory Idea...
  93. 93. Use the memory to add a computer game to the systemProperty of Security System PLUS Mission Impossible Game
  94. 94. Buzz Ideas PAIR UP TO INVENT IDEAS for newProperty of PRODUCTS / SERVICES for BUZZ Electronics ON Pages 10 & 11 using stimulus from pages 8 & 9 15mins
  95. 95. is notProperty of a strategy for success
  96. 96. Property of What is it?
  97. 97. is notProperty ofa strategyfor success
  98. 98. CHALLENGE The more Dramatically DifferentProperty The Greater The of CONFUSION
  99. 99. Confusion ClarityBarrier compositions and articles Cancer-Safe Fast Food Tubproduced with the compositionsA stable, aqueous barrier coatingcomposition includes: (a) prolamine;(b) cold water insoluble polymer; (c) The first biodegradable fast foodwater; (d) water-soluble co-solvent; sandwich container that providesProperty ofand (e) stabiliser. The composition,when applied to a substrate,produces an article having a high grease protection without the chemicals that have been found to cause cancer.surface energy and resistance to oiland grease penetration. A method ofproducing the article involvesapplying the composition to asubstrate...
  100. 100. Hot Water TapConfusionThe finest quality tap available. ClarityMade from heavy cast brasspatterns, copper tubing with Our Industrial Water Taps...stainless steel and aluminiumProperty ofaccessories, these faucets are 1. Provide 2 times greater flow 19 vs. 6 gallons per minute at 25 psidesigned, built and tested to lastfor the life of your plumbing 2. Installs in half the timesystem. Use a standard 1 3/8ths drill bit vs. Chiseling a 3 inch holeThey’re the BEST Available!
  101. 101. Half the Time Double theProperty of Flow
  102. 102. Research findsthat you should….Write So That A12 Year Old CanProperty ofPainlessly UnderstandYour Idea
  103. 103. CLARITY is especially necessary with TECHNICAL OfferingsProperty of Geek to Geek to Marketing & Accounting
  104. 104. One or Two Benefits = 44% Success Three or More Benefits = 37% SuccessProperty of Conclusion: Do One Thing Great!
  105. 105. FOCUS - improves CLARITYProperty of 24 flavors of jam. Free tasting of
  106. 106. FOCUS - improves CLARITYProperty of Free tasting of 6 flavors of jam.
  107. 107. FOCUS - improves CLARITY 6 flavorsProperty of 24 flavors 2 % Bought 12 % Bought
  108. 108. Golden Rule of Clarity Let a customer say NO… because what you offer doesn’t apply to them.Propertylet a customer say But NEVER of NO because they don’t understand what you’re offering.
  109. 109. Our Focus: New products / servicesProperty of for Buzz Electronics
  110. 110. you have 15 minutes…..Property of
  111. 111. Buzz Ideas Team adds CLARITYProperty of Write idea on GREEN Card Use pages 12-13 as guidance
  112. 112. Vote at TableUse ALL of your coins Where shouldProperty of we Invest George’s Money? Your Opinion On The Ability Of This Idea to Accelerate Profitable Growth
  113. 113. You can vote Or You can ALL on ONE SPLIT your VoteProperty of
  114. 114. NOT A COMPETITION We are in this togetherProperty of
  115. 115. Report Out! thunderous applause guaranteedProperty of
  116. 116. Lunch BreakProperty of
  117. 117. Why do we hope a miracle will occur?Property of
  118. 118. The Innovation Systems Way to Leverage Group Diversity 1. INDIVIDUALS 2. CREATE with Partner Explore STIMULUS Leverage DIVERSITYProperty of 10 Minutes 20 Minutes 3. LISTEN & LEARN from Team Drive Out FEAR 20 Minutes
  119. 119. AdvancedProperty of Topics
  120. 120. AdvancedProperty of STIMULUS
  121. 121. Innovation Cost G INCREASIN Pace of Innovation ACCELERATINGProperty of Resources CONSTRAINED Customers more DEMANDING
  122. 122. Best Place To Look for Stimulus Competitive / CustomerProperty of Scouting Technology 5X Scouting More Effective Journal of Product Innovation Management 2005;22:258
  123. 123. STIMULUS MINING Open InnovationProperty of
  124. 124. OPEN INNOVATION is the Future Old World New WorldProperty of All Smart People work for us and we Connecting Outside means 85% Increase in R&D do it all ourself productivity Not invented here Reapply with Pride We don’t partner with Our biggest competitor is competitors our biggest customer
  125. 125. OPEN INNOVATION it’s about buying it’s about selling it’s about whole ideasProperty of it’s about parts of ideas it’s about trademarks it’s about patents it’s about business models
  126. 126. OPEN INNOVATIONProperty of
  127. 127. Companies are Desperate Innovation Success is Poor Only 4.5% of projects meet ROI Goals SuccessProperty of Failure Boston Consulting Group 32% Odds versus 4.5% odds
  128. 128. OPEN INNOVATION is the Future % of P&GProperty of ideas from outside the company
  129. 129. The PROBLEM Inventors Companies speak speakProperty of Technology Products & Patents & Profits
  130. 130. “94% of failures are due to theProperty of SYSTEM 6% are due to the worker”
  131. 131. the three stages of the system… Evaluate Launch Create Ideas Ideas IdeasProperty of A system for A system for picking A system for getting creating as many ideas with the highest ideas to market with ideas as possible. probability of success. the minimum of time, money and risk.
  132. 132. Some examples of Open Innovation Marketplace s Where Innovation Buyers, Sellers, Investors & Distributors Speak the Same Language e.g. of Seller BENEFIT 60 Second Business Credibility Buyer BENEFIT Smarter, Faster, Cheaper Innovation Development Inventor’s ideas are taken more Companies can painlessly access a seriously by companies because each virtual Innovation Department that is as idea comes with an independent much as 3X times more successful, 85% research report and sales forecast that more efficient and requires 50% less can be understood in 60 seconds. capital investment.
  133. 133. USA Innovation Connections powered by the 1,600 Member NIST/MEP NETWORK America’s #1 Growth TeamProperty of
  134. 134. Examples of NIST/MEP Open Innovation Connections MEP NetworkProperty ofMEP Made Connection & Helped with Licensing of Tactile Sound System’s INVENTION MEP Found Potential Licensee In just 30 days MEP Found 2 R&D Partners • Montana • Massachusetts
  135. 135. Two Way Publishing Innovation Innovation OFFERINGS REQUESTSProperty of Requests to Purchase/License Innovations Requests to purchase or provide R&D or Manufacturing help... Requests Requests to Invest in Distribute Innovations Innovations such as...
  136. 136. Examples of Technology Scouting Tools Direct Connect with Marketplace Listings Free Searches & AlertsProperty of Connect to Inventor with RELATED Experience Free Connections Post “Request for Innovation” Free Publishing of Requests
  137. 137. Who’s at the Other Side? QuickT ime™ and a TIFF (LZ decompressor W) are needed to see this picture.Property of
  138. 138. Remember... DIVERSITY Finance R&D OperationsProperty of Marketing Sales Purchasing breaks down internal silos
  139. 139. Open Innovation Finance R&D OperationsProperty of Marketing Sales Purchasing breaks down company walls
  140. 140. STIMULUS MINING Open Innovation Mining from the Innovation MarketplacesProperty of on Pages 14 & 15
  141. 141. Open Innovation StimulusPropertymotion detector Intelligent of that knows the difference between humans & animals Idea...
  142. 142. The Terminator The systemProperty of also exterminates rodents!
  143. 143. WIPE YOURMIND CLEANProperty ofCreate a FRESH IdeaCreate a NEW Idea
  144. 144. Buzz Ideas PAIR UP to INVENT IDEAS for new PRODUCTS/ SERVICES for BUZZ ELECTRONICSProperty of Pages 16 & 17 ON using Open Innovation stimulus from pages 14 & 15 15 mins
  145. 145. ADVANCED Overt BenefitProperty of Topics
  146. 146. Customer Pull is about offering…Property of SPECIFIC CLEAR & Overt Benefit Advantages
  147. 147. GenericProperty of Claim
  148. 148. It’s just as GENERIC as “what makes us great is...”Property of
  149. 149. Specific & Numeric Benefit Advantages Overt Benefit Advantages . . . Clear Benefits . . .Property of Features . . . Confusion . . . Where are you?
  150. 150. A NUMBERIncreases oddsProperty of of success by 52%
  151. 151. SPECIFIC & NUMERIC ExamplesProperty of
  152. 152. Be Specific!Property ofSERVICE“100% Delivery in 24 Hours we keepinventory so you don’t have to”
  153. 153. Be Specific! QUALITY “Our SIMMS fishingProperty of wader zippers WORK - they’re the same quality as Air Force exposure suits.”
  154. 154. Be Specific! PEOPLE “Our serviceProperty of people get it right the first time - each has at least 10 years of experience”
  155. 155. Under extreme heat our Air BlastersProperty of produce up to 50% more force than competition.
  156. 156. “But my customers are only interested in low price!”Property of
  157. 157. Low Price is Specific & NumericProperty ofThe only way to beat it is to OFFER MORE VALUE
  158. 158. Are You Catching a Theme? “If you’re not meaningfullyProperty ofbetter be unique you’d cheap.”
  159. 159. Buzz Ideas Team adds NUMBERSProperty of Write idea on GREEN Card Use pages 18-19 as guidance
  160. 160. Vote at Table Use ALL of your coins Where shouldProperty of we Invest George’s Money? To Accelerate Profitable Growth
  161. 161. Report Out! thunderous applause guaranteedProperty of
  162. 162. The Truth is... DRAMATICALLY DIFFERENT IDEASPropertyOperational Cause of CHAOS CHAOS
  163. 163. SOLUTION = Fix the SYSTEM “94% of failures are due to the SYSTEMProperty ofto the 6% are due worker”
  164. 164. System Based on the Masters of Innovation….Property of Start Up Companies
  165. 165. Start Ups Are…The Real EXPERTS of Innovation CommercialisationProperty of% of InnovationsStill in Business after 3 years
  166. 166. Since WWII more than two thirds of all RADICAL INNOVATIONS that have lead to dramatic and sizable transformations inProperty of the economy have been adopted, improved and developed by SMALL COMPANIES. Federal Reserve Bank of Kansas City
  167. 167. Small Companies SHIPWho Ships Who ShipsUniversity Inventions Independent’s InventionsProperty of Large Co. 1.7% Odds Large Company Small Company Small Company & Start Ups & Start Ups Sources: AUTM FY 2005 U.S. Licensing Survey Academy of Management Journal 2005, Vol 48, No 5, p 814 - 829 The Economic Journal, 113 (January 2003) pages 226-239
  168. 168. TEACH & COACHProperty of Your Team How to Start Up Like a Start Up
  169. 169. How to START UP like a START UPProperty of Personal Passion 1 Person OWNS Project
  170. 170. The Simultaneous Engineering Approach 1. Plan Product 4. Act 2. Do Development 3. StudyProperty of Fail Fast - Fail Cheap Rapid Cycles of Test & Learn Business Marketing Model Development Development
  171. 171. How to START UP like a START UP Open InnovationProperty of “Borrow don’t build or buy” Manufacturing – Distribution Investment - Ideas
  172. 172. The SCOUT (project General Manager) Is the HUB of the WHEEL R&D / EngineeringProperty of Finance SCOUT Market Research Sales / Marketing Manufacturing / Operations
  173. 173. The RELAY RACE ApproachDoesn’t WorkProperty of
  174. 174. The Simultaneous Engineering Approach Product DevelopmentProperty of Rapid Cycles of Test & Learn Business Marketing Model Development Development
  175. 175. Innovation is about “Whack-a-Mole” Product / Service RealityProperty of Rapid Cycles of Test & Learn Customer Profit Promise Formula
  176. 176. The Deming Cycle Scientific Method 1. PlanProperty of 4. Act 2. Do 3. Study “Fail Fast Fail Cheap Get Smart”
  177. 177. Old World “Proper & Mature” Business Innovation Fail Fast - Fail Cheap System Get Smart Expensive & Slow 1. Plan 1. PlanProperty of 4. Act 2. Do 4. Act 2. Do 1. Plan 3. Study 3. Study 2. Study 2. Study 2. Study 2. Study 2. Study 2. Study 1. Plan 1. Plan 2. Study 2. Study 4. Act 2. Do 2. Study 4. Act 2. Do 2. Study 2. Study 3. Study 3. Study 2. Study
  178. 178. Old World Leadership Decides Where To Drill for OilProperty of Get Bigger DRILL BIT
  179. 179. New World If hit HARD ROCK - Try somewhere elseProperty of
  180. 180. Old World New World “You don’t have “Yes, but we Persistence have profits.Property of & Dedication”
  181. 181. Fail FastFail Cheap& Get SmartProperty of test with vending machines
  182. 182. Fail FastFail Cheap& Get SmartProperty of test at trade shows
  183. 183. Validation… Probability of Sustained Marketplace Success 60% PP / 40% N&D Still in Distribution after 3 Years Correlation = .82 Correlation = .70Property of 7X Smarter than Humans I.R.I. Scanner Data Correlation with REAL World Results (Raw results - not adjusted for marketing support) % Wrong 70 % 10 % Wrong % Trial r = .42 99% confidence Wrong Purchase Frequency r = .44 99% confidence % Repeat r = .38 99% confidence Humans $/1000 Customers r = .37 99% confidence
  184. 184. Initial Small Business - ValidationsInnovation Sales Forecasts Actual In System Industry % Diff. market Forecast Industrial Equipment Innovation for $1,700,000 $1,800,000 +6% Pharmaceutical IndustryProperty of Commercial Plumbing Innovation Home Construction Service Innovation $150,000 $175,000 $140,000 $160,000 -7% -9% Bio-Science Material Innovation $150,000 $150,000 0% Sporting Equipment Innovation $240,000 $250,000 +4%
  185. 185. Property of
  186. 186. ApproachFocus on Biggest Threats or “Unknowns” FirstProperty of KILLER Death Threat Small Small Small Problem Problem Problem
  187. 187. P&G Does the Same Focus First On Project Death Threats “Teams like to address easy issues first. At P&G weProperty of have flipped the sequence. Teams must identify so- called “killer issues” - problems that must be solved for the innovation to succeed.” A.G. Lafley Retired CEO
  188. 188. Focus on Biggest Threats FirstTurn KILLER ThreatsInto Manageable Threats 1. Plan What Death Threat?Property of KILLER 4. Act Apply Revise Stop 3. Study 2. Do Learn What learned? Death Threat Manageable Threat
  189. 189. Fail Fast Fail CheapDevelopment SystemDissolve Risks with Small StepsFocus Small Steps Leadership Kaizen 1. Plan “Solve Big Problems with 4. Act 2. Do Small Steps of 3. StudyProperty ofDisciplined Focus on Continuous Learning” “Fail Fast Fail Cheap”the... Dig for Make it • Death Threats Truth Real • Leadership Structure • Killer Issues Do the Numbers Ask for Advice • Simultaneous Engineering • Meeting Rhythm • Big Rocks
  190. 190. Property of
  191. 191. Property of
  192. 192. Property of
  193. 193. Situation: Bill a home brewer thinks hes invented a beer that prevents hangovers. He uses a secret collection of herbs to make it work. Death Threats: Bill meets with an investorProperty of who is interested in the idea. However, the investor has identified two Death Threats that hes asked Bill to address before he invests. 1. Is it legal to sell it? 2. Does it really work?
  194. 194. 1. Is it legal to 2. Does it really Death Threat sell? work? Ask for Advice Ask the herb Innovation Supply Chain Customer Feedback company to - Problem - Idea / Product investigate Do the Numbers •Estimate Sales •Estimate CostProperty of •Reduce Uncertainty Dig for Truths •Data & Research Dig • Technology & Patent Dig • Inventor & Expert Dig Make it Real Test it with 10 people •Feel the PAIN (Problem) •Fast “Works Like” Prototype who typically get •Fast “Looks Like” Prototype hangovers
  195. 195. We’re not trying for a TOTAL Solution Just trying to remove it from DEATH THREAT LIST Property of Give attention to the plate that is about to fall just enough to keep it spinning.
  196. 196. Let’s use… The Top IdeaProperty of 4. Act 1. Plan 2. Do 3. Study Death Threats Fail Fast - Fail Cheap Get Smart Options...
  197. 197. Which Ideareceived the most money?Property ofRemember... everybody wins whenthese ideas result in profitable growth!
  198. 198. Buzz Plan THINK Fail Fast Fail CheapProperty of Smart Get Methods 15 Minutes to work as a team Page 21
  199. 199. Report Out! thunderous applause guaranteedProperty of
  200. 200. Some Ideas Get Accelerated NOWBut no ideas areTHROWNProperty ofAWAY
  201. 201. Pipeline Management of Innovation High Probability Correct Ideas (£/€) Understanding of ValueProperty of = Medium Probability Ideas (£/€) Max Chance of Hitting Growth Low Probability Ideas (£/€) Targets From Innovation
  202. 202. A Simple Pipeline Management System… Conservative Most Likely Aggressive Development Proprietary IDEA Forecast Forecast Forecast Status Status Trailblazer ACTIVE Project #1 £0 £0 £0 1 to 5 1 to 5 nameProperty of Project #2 £0 £0 £0 1 to 5 1 to 5 name Later Project #3 £0 £0 £0 1 to 5 1 to 5 name Project #4 £0 £0 £0 1 to 5 1 to 5 name TOTAL £0 £0 £0 average average
  203. 203. Good NewsProperty ofProfitable Growthis Not Random
  204. 204. Leading Profitable Growth 1. Dramatic Difference 2. Overt Benefit Difference 3. Real Reason to Believe DifferenceProperty of 4. Explore Stimulus 5. Leverage Diversity 6. Drive Out Fear
  205. 205. Challenge ProgrammeProperty the Learning Applies of In-Company