The document discusses different types of innovation including disruptive innovation, open innovation, and lean innovation. Disruptive innovation introduces new products or services that eventually disrupt an existing market. Open innovation utilizes both internal and external sources to develop new products and services, while traditional innovation relies solely on internal resources. Lean innovation aims to eliminate waste through rapid experimentation and iteration to validate customer needs. The document provides examples and strategies for applying these different innovation approaches.

1. Disruptive, Open, and Lean:
A Primer on Innovation
Buzzwords
2016 SPE Conference
Houston, TX
Teresa Jurgens-Kowal, PhD, MBA, PE, PMP©, NPDP
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3. Everyday Language
We use (and abuse) business terms
“Innovative” hair salon
ABC Company is a “disruptor”
“Crowdsourcing” the idea
Run a “lean” development program
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4. Theory and Practice
Disruptive Innovation
Open Innovation
Lean Innovation
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5. Disruptive Innovation
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“To cause disorder or turmoil in”
“To break apart”
“Something new or
different introduced”
* dictionary.com definitions of disrupt, innovation
Causing a market to change radically by introducing
a new product, service, or program

6. The Theory
Sustaining
Innovation
 Incumbents serve
existing business
 Add features for
existing customers
 Business processes
support existing biz
Disruptive
Innovation
 New entrant offers
convenience or
affordability
 New market disruptor
 Low-end disruptor
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7. A Transportation Example
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8. Photography Example
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9. Applying Disruptive Innovation
Probe non-users for needs
Competitive analysis
Patent mapping
Identify new technologies
Watch “non-related” markets
Form autonomous R&D division
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10. Challenges in Disruptive Innovation
Easiest to identify with hindsight
Market disruption can take a long time
Okay to work on sustaining innovations
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11. Is Open Innovation New to You?
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12. Open Innovation
Uses external sources
as well as internal
sources to deliver
new products,
services to the market
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13. Traditional vs. Open Innovation
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The smart people in our field work for us Not all of the smart people work for us, so we
must find and tap into the knowledge and
expertise of bright individuals outside our
company
To profit from R&D, we must discover, develop and
ship it ourselves
External R&D can create significant value;
internal R&D is needed to claim some portion
of that value
If we discover it ourselves, we will get it to market
first
We don’t have to originate the research in
order to profit from it
If we are the first to commercialize an innovation
we will win
Building a better business model is better than
getting to market first
If we create the most and best ideas in the industry,
we will win
If we make the best use of internal and external
ideas, we will win
We should control our intellectual property (IP) so
that our competitors don’t profit from our ideas
We should profit from others’ use of our IP, and
we should buy others’ IP whenever it advances
our own business model

14. How to Use Open Innovation
Co-Creation
On-Line Communities
Lead User Council
Universities (e.g. 3D printing)
Tournament Crowdsourcing
Goldcorp $575k  $3B (7 years)
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15. Challenges with Open Innovation
Confidentiality
Intellectual Property
Need focus
What is the question?
How can customers help?
Don’t underestimate data analysis
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16. Lean Innovation
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17. The “LEAN” Movement
Eliminate waste
Maximize value-added activities
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L E A N

18. Traditional “Waterfall” Process
Stage-Gate
Work done in stages
Decisions made at gates
Progressive elaboration of tasks
Optimize investment
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19. Lean Learning Cycle:
Fail Fast, Fail Often
Define
Measure
AnalyzeImprove
Control
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Customer Needs
Ethnographic
Research
Rapid Experimentation
Fast Failure
Validate Concept

20. Disruptive, Open, and Lean
Focus on the
customer
Understand market
needs
Experiment and
iterate
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21. INNOVATION BUZZWORDS
For more information…
 Feel free to contact me
 www.globalnpsolutions.com
 www.Simple-PDH.com
 teresa@globalnpsolutions.com
 Twitter: @globalnpd
 281-280-8717
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