Innovation Experience 2007.10.23 PPT.ppt

The GRCC
Innovation Experience
Bill Guest
Managing Director, Metrics Reporting, Inc.,
Grand Rapids – Kalamazoo – Holland – Grand Haven
bill.guest@metricsreporting.com, 616.430.0828 cell
Revision: 2007.10.23
Copyright © 2004-2007 by Bill Guest

For the past 25 years,
we have optimized our
organizations for
efficiency and quality.
Over the next quarter
century, we must
optimize our society for
innovation.
National Innovation Initiative Report
by the Council on Competitiveness
(www.compete.org)

Introduction – Bill Guest
• Engineer, 12 years with GM and Delco Electronics
• General Manager, engineering and design shop
• VP Sales, electronics company
• VP and General Manager, Leica ATS in Switzerland
• General Manager, Bergstrom Off-Highway Group
• Consulting, Dressta Construction Equipment
• Teaching Operations Management, Shanghai, China
• Exec. VP and CEO, Miquest Electronics (acquisitions in GR)
• Principal, Performance Measurement & Improvement Consulting
• Managing Director, Metrics Reporting, Inc.

Introductions - Participants
• Name
• Organization / Department
• Role
• What is the most important item to “take away” today?

Review of our Experience Objectives
Learn about and put into practice:
• Gather ideas for innovation opportunities via
structured methods.
• Score ideas to provide a leading indication of
their usefulness and probability for success.
• Shape and communicate ideas with tools such
as the opportunity brief, “Eliminate-Reduce-
Raise-Create” grid, and value curve.

Part One Agenda
Session 1: Introduction to Innovation – Definitions
Workshop: What definitions apply best to us?
Session 2: Introduction to the Innovation Stage-Gate Process & Tools
Workshop: Divide into small teams (3 each) to prepare for Workshops
Session 3: Strategic Direction – Strategic Planning and Blue Ocean Strategy
Workshop: Review and clarify strategic direction for Herman Miller & the
Certified Dealer Network
Break: 15 minutes
Session 4: Search for Opportunities – Seven Sources for Innovation Opportunities
Workshop: Populate the innovation matrix with ideas

Part Two Agenda
Session 5: Scoring Ideas – Solid (Principles for Innovation)
Workshop: Determine the PI Score of your top ideas
Session 6: Scoring Ideas – Bold (Value Innovation Logic)
Workshop: Determine the VIL Score of your top ideas
Session 7: Scoring Ideas – Aligned (with organizational priorities)
Workshop: Determine the Alignment Score of your top ideas
Session 8: Scoring Ideas – Valuable (Return on Investment)
Workshop: Determine the Value Score of your top ideas
Session 9: Opportunity Scoring Lab Time
Workshop: Review all scores and prioritize your top ideas
Break: 15 minutes
Session 10: Shape Ideas
Presentation: Innovation Idea Summary and Value Curve
Workshop: Make a team presentation for one of your top ideas using
the Innovation Idea Summary and Value Curve as guidelines

Session 1
Innovation Definitions
“What does innovation mean to us?”

Innovation Is:
Merriam-Webster defines innovation as: 1) the introduction of
something new, and 2) a new idea, method, or device.
Adoption

Innovation Is:
Part of World Class Performance. – Innovation is a critical
component of being a world class manufacturer. Operational
excellence is not enough to survive long term in today’s markets.
Operational excellence and innovation go hand in hand – it is
a “both/and” not “either/or” choice.
From: An Innovation Framework, a position paper of the Right Place Manufacturers’ Council, John Cleveland.

Innovation Is:
Not Just Products and Technology. – Innovation needs to be
understood in a broad context – it is about innovation in all
aspects of the business, including processes, services,
methods, management practices, strategy and business design,
not just products and technology.

Innovation Is:
A Continuum – The “innovation continuum” runs from
incremental process improvements to radically new business
designs. Each company needs to make choices about how much
resources it will focus on which part of the continuum.

Innovation Is:
Strategy Maps by Kaplan and Norton identify four core
innovation processes: 1) opportunity identification, 2) research
and development portfolio management, 3) new product design
and development, and 4) launch.

Innovation Is:
Innovation is the process whereby ideas for new (or improved)
products, processes, or services are developed and
commercialized in the marketplace. The process of innovation
affects the whole business – not just specific products, services,
or technologies.
(Industry Canada)

Innovation Is:
Innovation – A new idea, method, or device. The act of creating
a new product or process. The act includes invention as well as
the work required to bring a new idea or concept into final form.
(PDMA Handbook of New Product Development)

Innovation Is:
Innovation is the specific tool of entrepreneurs, the means by
which they exploit change as an opportunity for a different
business or a different service. It is capable of being presented
as a discipline, capable of being learned, capable of being
practiced.
(Peter Drucker, Innovation and Entrepreneurship)

Innovation Is:
Your approach to innovation needs to be driven by your “theory of
the business.” You need a clear theory about where the best
opportunities are for innovation in your markets (product; process;
business design). Based on your theory about your business, you
need to create clear screens and criteria for your innovation
efforts (communicable visions and action plans).

Innovation Is:
Good Strategic Planning Accelerates Innovation. – A robust and
disciplined strategic planning process creates the context for
your innovation strategy. It describes the “strategic territory”
that your company occupies now, and intends to occupy in the
future.

Innovation Is:
A BusinessWeek definition:
Innovation is the ability to create and capture economic value
from invention.
From: BusinessWeek, August 2005

Innovation Is:
Another BusinessWeek definition:
Today innovation is about much more than new products. It is
about reinventing business processes and building entirely new
markets that meet untapped customer needs. Most important, as
the Internet and globalization widen the pool of new ideas, it’s
about selecting and executing the right ideas and bringing
them to market in record time.
In the 1990s, innovation was about technology and control of
quality and cost. Today, it's about taking corporate organizations
built for efficiency and rewiring them for creativity and growth.
“There are a lot of different things that fall under the rubric of
innovation.” says Vijay Govindarajan. “Innovation does not have
to have anything to do with technology.” From: BusinessWeek, April 2006

Innovation Is:
The Economist:
OECD: Innovation is new products, business processes and
organic changes that create wealth or social welfare.
Goldman Sachs: innovation is fresh thinking that creates value.
From: Economist: Special Report on Innovation, October 2007

Innovation Is:
Innovation as Language Action definition:
We found that the key is to understand innovation as adoption of
new practice. How do we know for sure when an innovation
has happened? It is simple: we observe that a group or
community has adopted a new practice. The word practice is
very important. Innovators induce changes of habit by offering and
supporting new tools or processes perceived as high value by
adopters. Many people suffer great expense and frustration
because they think clever ideas are innovations.
From: Innovation as Language Action by Peter Denning and Robert Dunham, ACM May 2006

Innovation Is:
CQIN Innovation Curriculum Project definition:
Innovation is the introduction and adoption of something new
that creates value. This can be a process, a product, or a
service.
From: The WIRED CQIN Innovation Curriculum Working Definition, March 2007

Innovation Is:
Innovation is the introduction of
something new that creates value.
Value is indicated by adoption.

The Innovation “Funnel”
1. Opportunity
Identification
2. Opportunity
Selection
3. Development
& Testing
4. Production
& Launch
5. Managing the R&D Portfolio
The five different innovation processes relate to different stages of the “innovation funnel” – the
progression from a broad set of innovation ideas to actual implementation and commercialization.
This example Innovation Funnel compliments of WIRED

Workshop #1: Warm-up Exercise
Form Teams and Select Definitions
1. Form cross-functional teams with three
people on each team.
2. Select elements from the definitions that
apply best to us. Then, make a definition with
those elements.
3. Teams report out.

Session 2
The Innovation Process
“The Innovation Stage-Gate & Tools”

Characteristics of a Business Process:
Business processes can be clearly defined, documented,
taught, and improved based on “lessons learned.”
• A business process defines “how we do it around here.”
• A business process is useful for training employees
• Performance of the business process can be measured
• When things go wrong, the “lessons learned” as a result of
failure analysis can be used to improve the process
This is how organizational knowledge is accumulated and refined

Stages: Gates:
1. Strategic Direction Direction Clear
2. Idea Generation Ideas Scored
3. Concept Definition Concept Approved
4. Funding Case Funding Approved
5. Pilot and Test Launch Approved
6. Launch Final Evaluation
Stage 1
Gate
1
Stage 2
Gate
2
Stage 3
Gate
3
Stage 4
Gate
4
Stage 5
Gate
5
Stage 6
Gate
6
Strategic
Direction
HOW GATES WORK:
YES, gate criteria are
met, move to next step.
NO, criteria are not met,
idea is parked.
Innovation Stage-Gate Process

Innovation Stage-Gate Process
Stage: Gate: Gate Requirements:
1 Strategic Direction Direction Clear
The organization's strategic direction has been clearly communicated
to the innovation teams. (balanced scorecards, strategy maps, focus,
divergence, and compelling tagline)
2 Idea Generation Ideas Scored
A systematic search for innovation opportunities that drives the
organization toward the achievement of the strategic direction is
complete. Ideas are scored and prioritized based upon the
organization's defined scoring methodology.
3 Concept Definition Concept Approved
An Idea Summary (Concept Definition) sheet including a clear
description of the idea is presented to the innovation team.
4 Funding Case Funding Approved
The Innovation Project Business Plan including a clear
description of the idea, focus, divergence, compelling tagline, cost,
timing, description of benefits, and description of alignment to
objectives is presented to the funding team. Top ideas are approved
within budget constraints.
5 Pilot and Test Launch Approved
This step is completed by the project team with concurrence of the
management sponsor, project manager, and technical advisor as
members of the decision team.
6 Launch Final Evaluation
Six months to one year after the innovation has been launched, the
project team completes a post-launch review to compare actual
results to planned outcomes. This review is presented to the
innovation funding team.
(See handout)

Strategic Direction
Innovation
Tools
Score
Strategic
Direction
Summary
Seven
Sources
Learning
Principles
Implement
Search Bold
-
VIL
Score
Alignment
Score
Innovation
Idea
Summary
Project
Business
Plan
Final
Evaluation
Guidelines
Project
Launch
Plan
Ten
Strategic
Questions
Value
Curve
Six
Paths
Forward
Solid
-
PI
Score
Strategy
Idea Generation
Launch
Pilot and Test
Funding Case
Concept Definition
GRCC Innovation Tools
Box indicates tools covered in this seminar.

Innovation Project Business Plan (Funding Case)
1. Project Name:
2. Project Team Members: (Ideally an executive, a project manager, and a content expert):
3. Link to Strategy: How does this project link to strategic objectives?
4. Statement of Project Objective:
5. Expected Outcomes: (Specify outcomes in precise, measurable terms, with timeframes):
6. Project Timeline (Specify project milestones, including start and end dates):
7. Costs and Resources (Attach a comprehensive project budget):
Submitted by: ______________________________ Date: __________________________
Innovation Idea Summary (Concept Definition)
The innovation team will need the following information (verbally or in writing) to accurately score an idea.
1. Innovation Idea: Describe your idea and how it affects the intended customer/user.
2. Strategic Objective: Which Strategic Objective does your idea support?
3. Customer/User: Describe who will use the innovation.
4. Need: Describe the need this innovation satisfies.
5. Benefits: Describe the advantages this innovation provides customers/users.
6. Costs and Resources: Estimate costs and resources.
7. Project Team: Who would be good candidates to be on the project team?
 Executive Sponsor:
 Project Manger:
 Content Expert:
(See handouts)

Workshop #2:
The Innovation Process
1. Discuss the innovation process
within your team.
2. Determine if your organization
has a process in place that
incorporates these elements.
3. Report out.

Session 3
Strategic Direction
Strategic Planning and Blue Ocean Strategy

Strategic Planning
and Innovation
Strategic Planning clarifies the starting
point and the desired future state.
Innovation helps find effective paths to
get there.
Current
State
Innovation
Future
State
Execution

The Ten Strategic Questions:
1. Mission. What business are we in?
2. Vision. Where do we want to be in 5-10 years?
3. Values. What principles do we want to guide our behavior?
4. Customers. Which customers do we want to serve? Which ones will
drive value growth? How are their priorities changing?
5. Product and Service Scope. What products or services do we want to
offer? What core competencies do we need?
6. Differentiation. What is our basis for market differentiation? Who are
our key competitors? Are we really different?
7. Profits. What is our profit model? What areas of our business are our
customers willing to let us make money?
8. Processes. What are our core processes? What needs transforming?
9. Scoreboards. What indicators will we use to measure success?
10. Goals, Objectives and Action Plans. How will we incrementally move
towards our vision?
From: An Overview of Strategic Planning by IRN, Inc. (John Cleveland)
Tool #1

Results of Formula 1’s Strategy
Cost per room 100,000 FF  270,000 FF
Cost of staff 20-23% of sales vs. 23-25%
Profit Margins > 2x industry average
Occupancy rates > 3x industry average
From customers’ perspective:
Hygiene > average 2* hotel
Bed quality > average 2* hotel
Silence > average 2* hotel
Price 100 FF  200 FF of industry
From Formula 1’s perspective:

Focus, Divergence, and
Compelling Tagline

Focus: Great strategy has a clear focus
that emphasizes only a few factors
Divergence: The value curve stands apart
significantly different than competitors
Compelling Tagline: A good tagline
delivers a clear message and is truthful
Focus, Divergence, and
Compelling Tagline

Strategy Canvas
Four Actions Framework
ERRC Grid

GRCC “As Is”
GRCC Innovation Workspace
IW “To Be”

Focus: Dynamic teams using innovation
processes that produce rapid results for our
customers.
Divergence: Quickly meeting the changing
needs of the innovation economy rather than
focusing on tradition.
Compelling Tagline: Pragmatic action
oriented innovation process specialists.
GRCC Innovation Workspace:
Focus, Divergence, and Compelling Tagline

Strategic Direction
Innovation
Tools
Score
Strategic
Direction
Summary
Seven
Sources
Learning
Principles
Implement
Search Bold
-
VIL
Score
Alignment
Score
Innovation
Idea
Summary
Project
Business
Plan
Final
Evaluation
Guidelines
Project
Launch
Plan
Ten
Strategic
Questions
Value
Curve
Six
Paths
Forward
Solid
-
PI
Score
Strategy
Idea Generation
Launch
Pilot and Test
Funding Case
Concept Definition
Innovation Tools
Tool #4
Strategic Direction
Summary

Please
refer to
your
Strategic
Direction
Summary
Tool #4

Workshop #3:
Review Strategic Direction
1. Review the strategic direction summary.
2. Select a favorite theme or two from the
strategic direction for your focus for today.
3. Teams report out.

Session 4
Search for Opportunities – Part One
Drucker’s “Seven Sources for Innovation Opportunities”

Seven Sources of Innovation Opportunities
1. The unexpected – unexpected success, failure or outside event
2. The incongruity – between reality as is, should be, or “ought to be”
3. Innovation based on process need
4. Changes in industry structure or market structure no one predicted
5. Demographics (population changes)
6. Changes in perception, mood, and meaning
7. New knowledge, both scientific and nonscientific
* Footnote: Innovation and Entrepreneurship by Peter Drucker, 1985.

Workshop #4:
Idea Generation
Add to your list of ideas based
on Drucker’s “Seven Sources
for Innovation Opportunities.”
Target: 100 Ideas per hour
NOTE: See next seven slides
for definitions.

Seven Sources for Innovation Opportunities
1. The unexpected – unexpected success, failure or outside
event:
Example: Macy’s “We don’t know how to stop the growth of
appliance sales” so that fashion is 70% of sales. Bloomingdale’s
exploited the opportunity and propelled itself from a weak fourth
position to second in the New York market.
To exploit the opportunity for innovation offered by unexpected
success requires analysis. Unexpected success is a symptom,
but, a symptom of what?
The unexpected failure demands that you go out, look around,
and listen. Failure should always be considered a symptom of an
innovation opportunity, and taken seriously as such.

2. The incongruity – between reality as is, should be, or “ought
to be:”
An incongruity between the economic realities of an industry
Example: An industry is growing but not profitable (steel)
An incongruity between the reality of an industry and the
assumptions about it
Example: Containers rather than faster ships
An incongruity between the efforts of an industry and the values
and expectations of its customers
Example: Investors want peace of mind, not to get rich
An incongruity within the rhythm or the logic of a process
Example: The compound for the eye surgeons

3. Innovation based on process need:
“Necessity is the mother of invention.” Process need starts out
with the job to be done. It is task focused. It perfects a process
that already exists. Everybody in the organization always knows
that the need exists. Yet usually no one does anything about it.
However, when the innovation appears, it is immediately accepted
as “obvious” and soon becomes the “standard.”
Example: Innovation Management

4. Changes in industry structure or market structure no one
predicted:
Industry and market structures sometimes last for many, many
years and seem completely stable. Indeed, industry and market
structures appear so solid that the people in an industry are likely
to consider them foreordained, part of the order of nature, and
certain to endure forever. Actually, market and industry structures
are quite brittle. One small scratch and they disintegrate, often
fast.
Example: Automobiles were a luxury product for the rich. The
market began to change. Henry Ford exploited the change with
mass production.

5. Demographics (population changes):
Of all external changes, demographics – defined as changes in
population, its size, age structure, composition, employment,
educational status, and income – are the clearest. They are
unambiguous. They are the most predictable consequences.
Analysis of demographic changes begins with the population
figures. But absolute population is the least significant. Age
distribution is far more important, for instance.

6. Changes in perception, mood, and meaning:
Examples of changes in perception:
All factual evidence shows that the last twenty years have been
years of unprecedented advance and improvement in the health
of Americans. And yet the nation is gripped by collective
hypochondria.
Traditionally, the way people feed themselves was very largely a
matter of income group and class. Ordinary people “ate” and the
rich “dined.” One trend is toward “feeding,” getting food down,
convenience foods.
When a change in perception takes place, the facts do not
change. Their meaning does. The meaning changes from “The
glass is half full” to “The glass is half empty.”

7. New knowledge, both scientific and nonscientific:
Knowledge-based innovation is the “super-star” of
entrepreneurship. It gets the publicity. It gets the money.
Knowledge-based innovation differs from all other innovations in
its basic characteristics: time span, casualty rate, predictability,
and in the challenges it poses to the entrepreneur. And like most
super-stars, knowledge-based innovation is temperamental,
capricious, and hard to manage.
The lead time for knowledge to become applicable technology
and begin to be accepted on the market is between twenty-five
and thirty-five years.

Preview of
Next Steps
(See handout)

1 1
1 2
1 3
1 4
1 5
1 6
1 7
1 8
1 9
1 10
2 1
2 2
2 3
2 4
2 5
Alignment
Score
10 -
Value
Score
10 -
Totals
Question
Number
Top Ideas
Innovation Workshop Scoring Worksheet
PI
Score
(Solid)
VIL
Score
(Bold)
Possible
Points
(See handout)
Workshop #4:
Idea Generation
Review to your list of ideas
Write five clear idea
statements on the scoring
sheet.

Pause For Feedback
• What is too simple?
• What is too complex?
• Is the pace too fast or too slow?

Part Two
The Innovation Experience
Bill Guest
Managing Director, Metrics Reporting, Inc.,
Grand Rapids – Kalamazoo – Holland – Grand Haven
bill.guest@metricsreporting.com, 616.430.0828 cell

Review of Seminar Objectives
Learn about and put into practice:
• Gather ideas for innovation opportunities via
structured methods.
• Score ideas to provide a leading indication of
their usefulness and probability for success.
• Shape and communicate ideas with tools such
as the opportunity brief, “Eliminate-Reduce-
Raise-Create” grid, and value curve.

Sessions 5, 6, 7, & 8
Scoring Ideas in Four Dimensions:
• Solid
• Bold
• Aligned
• Valuable

Session 5
Scoring Ideas for Innovation – Solid
“Principles for Innovation”
PI Score

Principles of Innovation
The Do’s:
1. Analysis – Purposeful, systematic innovation begins with the
analysis of the opportunities (from the seven sources of opportunities).
2. Concept Investigation – Go out to look and listen. Work out
analytically what the innovation has to be to satisfy an opportunity.
Then talk to customers and users to understand expectations, values,
and needs.
3. Focus – Keep it simple. “This is obvious. Why didn’t I think of it?”
Focus the innovation on a specific need that it satisfies.
4. Start small – Effective innovations start small. Do one specific thing.
5. Leadership – Successful innovation aims at leadership.
Footnote: Innovation and Entrepreneurship by Drucker pages 134 to 139.

The Don’ts:
1. Don’t try to be too clever. Be acceptable to ordinary human beings.
2. Don’t try to do too many things at once.
3. Don’t innovate for the future. Do something for the present.

The Conditions for Innovation:
1. Innovation is work. Work within your field of expertise.
2. To succeed, innovators must build on their strengths.
3. Innovation is an effect in economy and society. The change needs to
be acceptable to the target customers.

Scoring Ideas: Principles of Innovation (PI Score)
Score each statement: 0 = Not True, 1= True
1. We know from our observations and analysis what the innovation
has to be to satisfy an opportunity. We’ve talked to customers
and users to understand expectations, values, and needs. 0 1
2. The innovation is simple. It is focused on a specific
need that it satisfies “This is obvious. Why didn’t I
think of it?” applies here. 0 1
3. This innovation starts small. 0 1
4. This innovation does one specific thing. It doesn’t try to
do too many things at once. 0 1
5. This innovation aims at leadership; being the best at something. 0 1
6. This innovation is not overly clever.
Prospective customers will understand it. 0 1
7. This innovation is something for the present. 0 1
8. This innovation is within our organization’s field of expertise. 0 1
9. This innovation builds on our organization’s strengths. 0 1
10. This innovation is acceptable to the target customers. 0 1
Total PI (Principles of Innovation) Score: _________

Workshop #5:
Score Your Ideas
Score your ideas based on the
“Principles for Innovation.”
1 1
1 2
1 3
1 4
1 5
1 6
1 7
1 8
1 9
1 10
2 1
2 2
2 3
2 4
2 5
Alignment
Score
10 -
Value
Score
10 -
Totals
Question
Number
Top Ideas
PI
Score
(Solid)
VIL
Score
(Bold)
Possible
Points
(See handout)

Session 6
Scoring Ideas for Innovation – Bold
“Value Innovation Logic”
VIL Score

Scoring Ideas: Value Innovation Logic
(VIL Score)
Score each category: 0 = Not True, 1= Partially True, 2 = Very True
1. Industry Assumptions
This innovation shapes the industry’s conditions.
2. Strategic Focus
This innovation is a quantum leap in value to dominate the market.
Competition is not the benchmark.
3. Customers
This innovation targets the mass of buyers and willingly lets some existing
customers go. It focuses on the key commonalities in what customers value.
4. Assets and Capabilities
This innovation is not constrained by what the company already has. It considers:
What would we do if we were starting anew?
5. Product and Service Offerings
This innovation thinks in terms of the total solution customers seek, even if that
takes the company beyond its industry’s traditional offerings.
Total VIL (Value Innovation Logic) Score:
0 1 2
0 1 2
0 1 2
0 1 2
0 1 2
Footnote: Value Innovation: The Strategic Logic of High Growth by Kim and Mauborgne,
Harvard Business Review, Jan-Feb 1997, page 106.

Workshop #6:
Score Your Ideas
Score your ideas based on the
“Value Innovation Logic.”
1 1
1 2
1 3
1 4
1 5
1 6
1 7
1 8
1 9
1 10
2 1
2 2
2 3
2 4
2 5
Alignment
Score
10 -
Value
Score
10 -
Totals
Question
Number
Top Ideas
PI
Score
(Solid)
VIL
Score
(Bold)
Possible
Points

Session 7
Scoring Ideas for Innovation – Aligned
“Organizational Strategic Priorities”
Alignment Score

Scoring Ideas: Alignment to Organizational Priorities
Total Alignment Score: _________ (Maximum score is 10 points)
Alignment Scale (for one or more items):
10 Alignment is very strong
8 Alignment is strong
6 Alignment is moderate
4 Alignment is weak
2 Alignment is very weak
0 No alignment
Note: Alignment means that it is clear that the successful implementation of the
idea/opportunity will help the organization achieve it’s strategic priorities.
Alignment to the organizations strategic objectives: _______ Points

Workshop #7:
Score Your Ideas
Score your ideas based on
alignment to your
organization’s strategic
priorities.
1 1
1 2
1 3
1 4
1 5
1 6
1 7
1 8
1 9
1 10
2 1
2 2
2 3
2 4
2 5
Alignment
Score
10 -
Value
Score
10 -
Totals
Question
Number
Top Ideas
PI
Score
(Solid)
VIL
Score
(Bold)
Possible
Points

Session 8
Scoring Ideas for Innovation – Valuable
“Return on Investment”
Valuable Score

Very
Low
Low
Moderate
High
Very
High
Very Low 5 6 7 8 9
Low 4 5 6 7 8
Moderate 3 4 5 6 7
High 2 3 4 5 6
Very High 1 2 3 4 5
Impact (Return)
Cost
(Investment)
Value
(ROI)
Scoring Ideas: Return on Investment Estimate
Total Value Score: _________ (Maximum score is 10 points)
10 Value is very high
8 Value is high
6 Value is moderate
4 Value is low
2 Value is very low
0 No value

1 1
1 2
1 3
1 4
1 5
1 6
1 7
1 8
1 9
1 10
2 1
2 2
2 3
2 4
2 5
Alignment
Score
10 -
Value
Score
10 -
Totals
Question
Number
Top Ideas
PI
Score
(Solid)
VIL
Score
(Bold)
Possible
Points
Workshop #8:
Score Your Ideas
Score your ideas based
on value (ROI) to the
organization.

Session 9
Prioritize and Select Ideas for Innovation
Lab Time (15 minutes)

Workshop #9:
Select Your Idea
Add up the total scores for
your top ideas.
Then, prioritize your ideas to
pick the top idea based on the
scores and the collective
intuition of your team.
How did the scoring system
help your team?
1 1
1 2
1 3
1 4
1 5
1 6
1 7
1 8
1 9
1 10
2 1
2 2
2 3
2 4
2 5
Alignment
Score
10 -
Value
Score
10 -
Totals
Question
Number
Top Ideas
PI
Score
(Solid)
VIL
Score
(Bold)
Possible
Points

Session 10
Shape Ideas
Introduction to the Value Curve, ERRC Grid,
Opportunity Brief, Project Plan,
and Innovation Champions

The Value Curve
Footnote: Value Innovation, by
Kim and Mauborgne, HBR.

The Four VIL Questions (Value Innovation Logic)
The key to discovering a new value curve lies in asking four basic
questions:
1. Which of the factors that our industry takes for granted should be
eliminated?
2. Which factors should be reduced well below the industry standard?
3. Which factors should be raised well above the industry standard?
4. Which factors should be created that the industry never offered?
Footnote: Value Innovation, by Kim and Mauborgne, HBR.
The Value Curve

Shape Your Idea
(See handout)

For Top Ideas: Recognize the Champions
The success of innovations is to a great extent dependent upon the activities
and the abilities of individuals who enthusiastically support the new product or
process. These individuals are your entrepreneurs.
List the individuals that have emerged in the following three roles:
1. The power promoter role: (Management Sponsor)
Management of conflicts resulting from incompatible demands for resources
and from incompatible power positions
Cognitive Activities: Goal formation, problem definition, confirming strategic fit
2. The process promoter role: (Project Manager)
Management of conflicts between different departments with different objectives
and persons with antagonistic motives
Cognitive Activities: Project and interface management, networking, providing
information about human and financial services
3. The technology promoter role: (Technical Expert)
Management of conflicts due to contradictory perceptions and information
Cognitive Activities: Search for new information, assessment of existing
solutions, generation of new alternatives
Based on: Promoters and Champions in Innovations: by Jurgen Hauschildt, The International Handbook on Innovation, 2003
The “troika” of power, process, and technology promoter.

Rev: 2006.02.21
1. Eliminate:
2. Reduce:
3. Raise:
4. Create:
3. Draw the Strategy Canvas: 1 on left, 4 on right
Factors of Competition / Value Factors:
Blue Ocean Strategy
1. List 8 to 12 important Factors of Competition
2. Enter top 2 or 3 in each ERRC Grid Quadrant
Exercise:
1. List Factors of Competition
2. Top 1 or 2 in ERRC Grid Quadrants
3. Write on Worksheet: E left, C right
4. Draw “As Is”
5. Draw “To Be” Graph
(See handout)

8
7
6
5
4
3
2
1
0
Medium
Low
Very Low
Project Name:
High
Very High
10
9
Value
Factors
Exercise:
1. List Factors of Competition
2. Top 1 or 2 in ERRC Grid Quadrants
3. Write on Worksheet: E left, C right
4. Draw “As Is”
5. Draw “To Be” Graph
(See handout)

Workshop #10:
Shape and Present
Your Top Idea
For your top idea:
1. Write an Innovation Idea Summary for your best idea.
2. Make an ERRC Grid and a value curve to shape the idea and
to help your team communicate the relative value of the idea.
3. Determine the three champions who could lead the project.
4. Prepare your presentation using flip chart sheets.

Innovation Experience 2007.10.23 PPT.ppt

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