Phil McKinney - On Killer Innovation

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Slides used during a dinner speach for the 'Innovation Tour'.

Visit www.killerinnovations.com for more information on innovation and creativity.

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Phil McKinney - On Killer Innovation

  1. 1. Philip McKinney podcast@killerinnovations. com
  2. 2. The content, information and opinions shared in this presentation are mine and mine along and do not necessarily reflect those of my past, current or future employers. The content is my personal content and is licensed under Creative Commons — Non-Commercial/ Attribution. Philip McKinney podcast@ki| |erinnovations. com ll l| '.»1.fl. ’llll r. ,Fln‘i- 'l~
  3. 3. I What’s wrong with current approach’s? Innovations are either incremental or totally unrealistic Rarely any real follow-up No confidence that there aren't better ideas to be had Lack of executive/ organizational support
  4. 4. Killer Innovation approach Focus The Innovation Search Depth is better than breadth for idea quality Ask the right set of questions Structured questions that drive discovery/ insight Prioritize The Ideas Will this idea change the customer expectation? Will this idea change the competitive landscape? Will this idea change the economics of the industry? Quick Execution Quick idea validation via “fast” prototype (days versus weeks/ months)
  5. 5. Areas of innovation focus New or Moving into existing , _ new customers p" competitive arenas p Innovation in products or services Expansion into new geographies Innovation in Value d9llV9"Y . Improvement system in industry structure
  6. 6. Better Questions= Ki| |er Ideas New or Existing Customers ' What emotional, psychological, or status benefit do (could) people derive from using the product? ' How can you create a social or group experience with the product? Industry Structure ’ What are some of the basic assumptions under which the industry operates? ’ What external jolts have the potential to significantly impact the operational rules of the industry? Product & Services Innovation ' Who uses the product because of some benefit we did not foresee? ’ What regularly used makeshifts can we capture in a product design? H '. -i. » r. ,fIi"- I.
  7. 7. I How to Generate Killer Ideas Purpose - the yield of high quality ideas is significantly higher with a clear business purpose and a supportive business sponsor. Timeliness - the difference between a great idea and a so-so idea is market/ technology timing. Diversity - the pool of contributors needs to be broad, broader than you intuitively think. Perspective Chan e - the very best ideas come through individuals ooking att ings in a different way. Collaborative Development - environment, where people can comment and build on ideas thereby significantly increasing the overall yield of high Impact ideas.
  8. 8. Execution = Stage Gate Management Mllootonoo Ylmollno «W» w. '1 . . mm. ‘ urn vi. .v. —« r. m.». ..i vnvn H: -lr-V-n l»‘I1.V': » r1.«pi. —., : -., -. L101)" u. no: u. -u. .. run» 5.“. w Van’ . .. r-. _.. ... .. an A _. .. -. r.. ..a teen; 71-. .. -n. un- v. ... . "The Bat” use some from of a Mllcstonolshgo Gate prococs to Introduce new products and services r. ... w-. . . .. r4. * . ., .,. .., , r~-or . c as. . -4. nu. uvfiv «. u~ - p. 4;. . . . . ».: o- a -. :. Mun u r~~. u.~- nu. .. m. .p. ~.. . u. .u- mm. mu. . --alrvra -~ P~—h< n. .. -. .n ~44 --. ‘fit -. n». i Vfljl a». .. nun u. o.i-up . nu. .. s—--1 a. n.o. n.. u.. new-o. n.. uu~ c-mun. -n -1.. Soume: Techtrend Group mm -. M w iv i. .~ . ;. :-mini. ‘iv, Fm‘
  9. 9. Let’s Warm Up
  10. 10. What do you see?
  11. 11. What is half of thirteen?
  12. 12. Killer Innovation Workshop
  13. 13. Areas of innovation focus New or existing °"5t°m°"3 Moving into new competitive Innovation in products or services Expansion into new geographies Innovation in value d9"V°Tlf 5Y5t°m Improvement in industry structure W . .C r_m"nit-rri3l| i‘l«liril‘vi_il P. " l‘-y Phil 'i. ilr-K "ri-Ty T3
  14. 14. WOW! ! This is so COOL! ! Experience Economy
  15. 15. The Experience Model 600 Experience M e‘° 0° Services . ‘O Goods ‘ 49° N o . . °<<‘° Commodities G
  16. 16. What do people not like about the process of purchasing my product?
  17. 17. What service levels could I offer if I controlled the entire experience chain?
  18. 18. I'm not going to pay for that! Value Based Pricing
  19. 19. I Value By The Pound Intel Processor Hermes Scarf “Shrek”lDVD Mercedes-Benz Hot Rolled Steel $42,893.00 $1,964.29 $874.75 $18.98 $0.19
  20. 20. What would it take to make my product at half the cost?
  21. 21. Could I offer my product at 5 times the cost if it had greater feature/ function?
  22. 22. We are just like them — just better! Bes tPractices ¢ Bes tstrategy
  23. 23. “Me To” Companies Late 1970's Late 1990’s Bottled water brands 16 50 Milk types 4 19 Magazine titles 339 790 Radio stations 7,038 12,458 New book titles 40,530 77,446 Replication of market concepts lead to a lack of differentiation and confused customers. The result is an industry where commodity strategies (eg. win market share with lower prices) take over.
  24. 24. Brand Extension Late 1970's Late 1990’s McDonalds items 13 43 Levi's jean styles 41 70 Frito-Lay chip varieties 10 78 Pop-Tarts 3 29 KFC menu items 7 14 Brand extension is not to be confused with true innovation. In many cases, customers only care about the one or two items within a brand they purchase. Brand extension normally doesn't increase the size of the market, but instead simply provides choices to existing customers.
  25. 25. Types of Differentiation - Owning an Attribute - Preference - Must be unique - Getting the herd to follow - Look at opposite attributes (e. g. small against a larger competitor) - Production - Ingredients - Owning a Category (Leadership) - Products/ system innovations - Sales leadership - Technology leadership - Be the Latest - Performance leadership - New - Make yourself obsolete - Heritage - A substitute for leadership - Hotness - Search the history - Sales - Industry ratings - Market Specialty - Industry Ratings - NOT all things to all people - Must stay specialized I. I I. ’ li, Ill"' i.
  26. 26. Who uses my product because of some benefit I did not foresee?
  27. 27. How can I capitalize on pop culture in my product offering?
  28. 28. So . . . How many ideas did you come up with?
  29. 29. Contact: Podcast: www. kil| erinnovations. com Blog: www. ghi| mckinney. com Email: Qodcast@kiI| erinnovations. com ‘ ‘; _.7‘. '-. V'i’: i'2», I’, -ri. i'ii. m l”r: 'i. i~~v: '~-. 7 Hr: >7.tr"r-r-rri. iIi‘I«rrir-iii -1" try Pl-il ‘wlr mi "rII“. '

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