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AVALON CONSULTING
 New Delhi Mumbai Chennai




Presentation: September 2008



                                             CONFIDENTIAL

                               2007 © Avalon Consulting. All Rights Reserved
Avalon has teamed up with Inovo to bring in Innovation to the Indian
businesses                                                             AVALON CONSULTING




                   Inovo Technologies




   Innovation consulting firm in Ann Arbor,
    Michigan founded in 2001
   Creators of the Innovation course at the
    Ross School of Business at University of
    Michigan
   Philosophy focusing on needs and
    evidence of motivation to buy



13/09/08 – Js/pr                                                                      2
Innovation is an essential ingredient for success
                                                                                 AVALON CONSULTING




                                                              Customer Needs and desires are
                                                               opportunities for value creation.
      Solutions                            Needs & Desires     These are dynamic – change with
                                                               time and across geographies
                          Uniqueness
                                                              Great solutions that address these
                                                               needs and desires might not
                                                               remain great tomorrow e.g. Horse
                           Relevance                           Cart – Car ; Walkman – IPod
                                                              For sustained value creation, there
                                                               is a need to continuously offer
                                                               Unique, Relevant, and Ubiquitous
                            Ubiquity
                                                               solutions – This calls for
                                                               INNOVATION
                                                              Innovative companies are
                        Innovations
                                                               rewarded more than others –
                                                               Apple, Google, Suzlon, etc.




                                                                                                   3
Historically over 90% of new products and services fail*                                                                                                 AVALON CONSULTING
Innovation’s Success Rate



                                                                                                                             How do you tell a good idea from a
                                                                                                                              bad one when all you have is the
                                                                                                                    20%       idea itself?
                                                                                                                             How do you find new ideas with big
                                                                                                                              upside, especially if they’ve never

                                                                                                    7.5%                      been done before?
                                                                                      >4%                                    How will a new idea do in the
                                                  3% >3% 4%
     >1% >2% >2% 2%                                                                                                           market? Who will want it? Why?
                                                                                                                              What will the return be?
                                                                      Computer

                                                                                 Computer

                                                                                            Pharmaceutic
               Groceries




                                   Airlines




                                                          Financial




                                                                                                           Investments
                                              Telephony
        Toys




                           Music




                                                                      Hardware
                                                          Services




                                                                                 Software
                                                                                                                             What decision process do you use
                                               Mobile




                                                                                                                              since you can’t measure what hasn’t


                                                                                                                VC
                                                                                                als

                                                                                                                              been done before?



      * Source – Doblin group



                                                                                                                                                                        4
The Front End Determines Success
                                                                                                                AVALON CONSULTING




                     Discovery                           Development                        Commercialization
                                                         Design compelling                 Connect with customers.
                     Understand
                                                           new offerings                     Create market pull
                   demand creation
                                                                                                   Blockbuster



                                     ‘batting average’
                                       Increase the




                                                                             ‘home runs’
                                                                              Get more
                                                                                                             So-So


                                                                                                            Failure

                   What you do
                                                                                              Determines
                      here                                                                   success here




13/09/08 – Js/pr                                                                                                               5
Our Innovation offering is a proven Front-End Process that helps discover
new opportunities, create new solutions and model market acceptance
                                                                                                                                     AVALON CONSULTING


                                                    ADOPTS- Our Innovation Offering
                                                                                                       reveals the
                                                                                                       fundamental types of
                                                                                                       customers and their
                                                                                                       motivations




                                                                                                            New Business Offerings
                    Business Strategy




                                        Strategic                                               Business
                                        Domains                                                Hypothesis




                                                                                                      develops specific
                 identifies the                                                 creates new
                                                    uncovers numerous                                portfolios of offering
                 platforms and                                                 concepts and
                                                        untapped                                         options and
              strategic areas for                                               models their
                                                       opportunities                                   implementation
                  new growth                                                      adoption
                                                                                                         alternatives

13/09/08 – Js/pr                                                                                                                                    6
It delivers solutions that are rooted in customer motivations
                                                                                                            AVALON CONSULTING




  Opportunities
                  Specific unmet needs and desires that are
                   potential sources of new value                                         Personas

  Customer insight
                                                                                      Capture the Mind of
                  The different types of customers and what makes                    the Customer™
                   them tick                                                 New                              Existing
                                                                                          Software
                                                                           Solution                          Reference
                                                                                       Persona Model
  A portfolio of new options                                               Concepts                         Alternatives
                  Specific offerings that satisfy true customer wants                Predict Adoption &
                                                                                      Demand Creation

  Dynamics of adoption
                  Insight into why customers will (or will not) adopt a                   Perception
                   solution
                                                                                  $        Dynamics

  Business potential
                  Comparison with alternatives, place in the                                Time
                   ecosystem, revenue possibilities

13/09/08 – Js/pr                                                                                                           7
The ADOPTS™ Tool
                                                                               AVALON CONSULTING




     Results
                  High-potential, business-aligned solution candidates

                  Insight into Revenue potential and relative adoption time
                   compared to existing benchmarks




     Answer the questions…
                  What products will be attractive & to whom?
                  Which features are worth developing?
                  What trade-offs should be made?
                  Who will buy? Who won’t? Why?




13/09/08 – Js/pr                                                                              8
Distinguishing Features
                                                                                                    AVALON CONSULTING




        How different?
                      Based on a well established theory
                       – A proven methodology for searching ‘impossibly’ large spaces

                      Taps hidden knowledge
                       – Wisdom-of-crowds employed at many levels
                       – Decisions informed by more than ‘a few people in a room’
                       – Rigorous, structured debate shapes the opportunity (why good?, why bad?)

                      Once primed, process output is significant and continuous




13/09/08 – Js/pr                                                                                                   9
Agenda
                      AVALON CONSULTING




         Case Study




                                    10
The ADOPTS process has give our client, a fortune 50 company, a continuous
pipeline of new opportunity ideas, leading to three opportunity assessments
                                                                            AVALON CONSULTING




                                       One week          One month
                       On-going        Shallow Dives     Deep Dives




                                                                         3 Market Opportunity
   Domain




                                                                         Assessments
                      Hypothesis        Statement          Profile
                      Cycle = 200       Cycle=50           Cycle=8




                      Opportunity       Opportunity      Opportunity
 Sub-Domains          Hypotheses        Statements       Profiles
                       (1 hr/OH)         (8hrs/OS)       (40 hrs/OP)




                                                                                                11
For the three opportunities distilled for detailed assessment, the suitable
solutions are being tested using customer personas - an adoption curve is
being developed, the best solution will be identified for development                AVALON CONSULTING


                                                                     Opportunity Assessment Stage




                                       Personas


                                Capture the Mind of the
                                Customer™

                   New            Software Persona            Existing
                 Solution              Model                 Reference
                 Concepts                                   Alternatives
                                Predict Adoption & Demand
                                         Creation



                                         Perception
                                         Dynamics
                            $


                                         Time
                                                                                                    12
Typical timelines
                                                                                                                AVALON CONSULTING




              M1            M2            M3             M4             M5           M6


                        Domain Exploration and Discovery Activity                                  6 Month Exploration -
                                                                                                 200 Opportunity Hypotheses
                                                                                                  50 Opportunity Statements
                                                                                                     8 Opportunity Profiles
                   Opportunity Hypotheses: 12-18 a week                                                 3 Assessments
                                                                               Yield: 20 – 25%
                         Opportunity Statements: 2-3 a week
     Yield: 15 – 20%
                                         Opportunity Profiles: 2 a month




                                                                                                                      Development
                       Yield: 50%
                                                   Assessment: 2-3 months




                                                                                                                        Options
                                                           Assessment: 2-3 months                        Yield: 67%

                                                                    Assessment: 2-3 months




13/09/08 – Js/pr                                                                                                                    13
Contact Information
                                                                AVALON CONSULTING
Company Profile
                                                              mumbai
                                Raj Nair or Jaldeep Sodhi or Ryan Lowe
                                      Casa Avalon, 61 Dr. S.S.Rao Road
                                          Parel, Mumbai 400 012 - India
                                                Phone : 91-22- 66191100
                                                  Fax : 91-22- 66191122
                                  E-mail : mumbai@consultavalon.com
                                     Website : www.consultavalon.com


                                                               chennai
                                                          C. Premchand
                      No. 10, Spur Tank Road, Chetpet, Chennai 600 031
                                                 Phone 91-44- 43455 345
                                                  Fax : 91-44- 43455 345
                                   E-mail : chennai@consultavalon.com



                                                            new delhi
                                                              Sridhar V.
                                                   E-141, Okhla Phase 3
                                                      New Delhi 110 020
                                                Phone : 91-11-40516600
                                                   Fax : 91-11-40516650
                                     E-mail : delhi@consultavalon.com



                                                                              14

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Avalon Consulting Innovation Credentials

  • 1. AVALON CONSULTING New Delhi Mumbai Chennai Presentation: September 2008 CONFIDENTIAL 2007 © Avalon Consulting. All Rights Reserved
  • 2. Avalon has teamed up with Inovo to bring in Innovation to the Indian businesses AVALON CONSULTING Inovo Technologies  Innovation consulting firm in Ann Arbor, Michigan founded in 2001  Creators of the Innovation course at the Ross School of Business at University of Michigan  Philosophy focusing on needs and evidence of motivation to buy 13/09/08 – Js/pr 2
  • 3. Innovation is an essential ingredient for success AVALON CONSULTING  Customer Needs and desires are opportunities for value creation. Solutions Needs & Desires These are dynamic – change with time and across geographies Uniqueness  Great solutions that address these needs and desires might not remain great tomorrow e.g. Horse Relevance Cart – Car ; Walkman – IPod  For sustained value creation, there is a need to continuously offer Unique, Relevant, and Ubiquitous Ubiquity solutions – This calls for INNOVATION  Innovative companies are Innovations rewarded more than others – Apple, Google, Suzlon, etc. 3
  • 4. Historically over 90% of new products and services fail* AVALON CONSULTING Innovation’s Success Rate  How do you tell a good idea from a bad one when all you have is the 20% idea itself?  How do you find new ideas with big upside, especially if they’ve never 7.5% been done before? >4%  How will a new idea do in the 3% >3% 4% >1% >2% >2% 2% market? Who will want it? Why? What will the return be? Computer Computer Pharmaceutic Groceries Airlines Financial Investments Telephony Toys Music Hardware Services Software  What decision process do you use Mobile since you can’t measure what hasn’t VC als been done before? * Source – Doblin group 4
  • 5. The Front End Determines Success AVALON CONSULTING Discovery Development Commercialization Design compelling Connect with customers. Understand new offerings Create market pull demand creation Blockbuster ‘batting average’ Increase the ‘home runs’ Get more So-So Failure What you do Determines here success here 13/09/08 – Js/pr 5
  • 6. Our Innovation offering is a proven Front-End Process that helps discover new opportunities, create new solutions and model market acceptance AVALON CONSULTING ADOPTS- Our Innovation Offering reveals the fundamental types of customers and their motivations New Business Offerings Business Strategy Strategic Business Domains Hypothesis develops specific identifies the creates new uncovers numerous portfolios of offering platforms and concepts and untapped options and strategic areas for models their opportunities implementation new growth adoption alternatives 13/09/08 – Js/pr 6
  • 7. It delivers solutions that are rooted in customer motivations AVALON CONSULTING Opportunities  Specific unmet needs and desires that are potential sources of new value Personas Customer insight Capture the Mind of  The different types of customers and what makes the Customer™ them tick New Existing Software Solution Reference Persona Model A portfolio of new options Concepts Alternatives  Specific offerings that satisfy true customer wants Predict Adoption & Demand Creation Dynamics of adoption  Insight into why customers will (or will not) adopt a Perception solution $ Dynamics Business potential  Comparison with alternatives, place in the Time ecosystem, revenue possibilities 13/09/08 – Js/pr 7
  • 8. The ADOPTS™ Tool AVALON CONSULTING Results  High-potential, business-aligned solution candidates  Insight into Revenue potential and relative adoption time compared to existing benchmarks Answer the questions…  What products will be attractive & to whom?  Which features are worth developing?  What trade-offs should be made?  Who will buy? Who won’t? Why? 13/09/08 – Js/pr 8
  • 9. Distinguishing Features AVALON CONSULTING How different?  Based on a well established theory – A proven methodology for searching ‘impossibly’ large spaces  Taps hidden knowledge – Wisdom-of-crowds employed at many levels – Decisions informed by more than ‘a few people in a room’ – Rigorous, structured debate shapes the opportunity (why good?, why bad?)  Once primed, process output is significant and continuous 13/09/08 – Js/pr 9
  • 10. Agenda AVALON CONSULTING Case Study 10
  • 11. The ADOPTS process has give our client, a fortune 50 company, a continuous pipeline of new opportunity ideas, leading to three opportunity assessments AVALON CONSULTING One week One month On-going Shallow Dives Deep Dives 3 Market Opportunity Domain Assessments Hypothesis Statement Profile Cycle = 200 Cycle=50 Cycle=8 Opportunity Opportunity Opportunity Sub-Domains Hypotheses Statements Profiles (1 hr/OH) (8hrs/OS) (40 hrs/OP) 11
  • 12. For the three opportunities distilled for detailed assessment, the suitable solutions are being tested using customer personas - an adoption curve is being developed, the best solution will be identified for development AVALON CONSULTING Opportunity Assessment Stage Personas Capture the Mind of the Customer™ New Software Persona Existing Solution Model Reference Concepts Alternatives Predict Adoption & Demand Creation Perception Dynamics $ Time 12
  • 13. Typical timelines AVALON CONSULTING M1 M2 M3 M4 M5 M6 Domain Exploration and Discovery Activity 6 Month Exploration - 200 Opportunity Hypotheses 50 Opportunity Statements 8 Opportunity Profiles Opportunity Hypotheses: 12-18 a week 3 Assessments Yield: 20 – 25% Opportunity Statements: 2-3 a week Yield: 15 – 20% Opportunity Profiles: 2 a month Development Yield: 50% Assessment: 2-3 months Options Assessment: 2-3 months Yield: 67% Assessment: 2-3 months 13/09/08 – Js/pr 13
  • 14. Contact Information AVALON CONSULTING Company Profile mumbai Raj Nair or Jaldeep Sodhi or Ryan Lowe Casa Avalon, 61 Dr. S.S.Rao Road Parel, Mumbai 400 012 - India Phone : 91-22- 66191100 Fax : 91-22- 66191122 E-mail : mumbai@consultavalon.com Website : www.consultavalon.com chennai C. Premchand No. 10, Spur Tank Road, Chetpet, Chennai 600 031 Phone 91-44- 43455 345 Fax : 91-44- 43455 345 E-mail : chennai@consultavalon.com new delhi Sridhar V. E-141, Okhla Phase 3 New Delhi 110 020 Phone : 91-11-40516600 Fax : 91-11-40516650 E-mail : delhi@consultavalon.com 14