Beyond the buzzword, innovation should flow around value: creating it, capturing as much as possible to make money and building an organization optimized to deliver it efficiently to the market. Once you deal with it, how can you be sure about the results of your innovation efforts? In these few slides, I share some tips and thoughts about managing innovation from my last week staying at MIT Sloan.

2. Everyone talks about innovation, but
what is innovation
really about?

3. VALUE
Think about

4. CREATION
CAPTURE
DELIVERY
VALUE

5. CREATION
CAPTURE
DELIVERY
VALUE
WHAT?
WHY?
HOW?

6. CREATION
CAPTURE
DELIVERY
VALUE
WHAT?
WHY?
HOW?
PRODUCT
MARKET
ORGANIZATION

7. CREATION
CAPTURE
DELIVERY
VALUE
WHAT?
WHY?
HOW?
PRODUCT
MARKET
ORGANIZATION
POSITIONING
COMPETITIVE
ADVANTAGE
EFFICIENCY

8. CREATION
CAPTURE
DELIVERY
VALUE
RESEARCH &
DEVELOPMENT
PRODUCT
INNOVATION
PRODUCT
DELIVERY

9. FOSTER’S TECHNOLOGY S-CURVE
Foster (1986) introduces
S-curve thinking applied
to innovation
Some theory now, as explained in two books:
1 2
Christensen (1997) introduces the
disruptive innovation stepping
down on a lower new S-curve

10. FOSTER’S TECHNOLOGY S-CURVE
Technical
Efficiency
R&D Effort
Physical Limits

11. FOSTER’S TECHNOLOGY S-CURVE
Technical
Efficiency
R&D Effort
Physical Limits
Ferment
Variation
Take-off
Diversity
Maturity
Cost reduction

12. FOSTER’S TECHNOLOGY S-CURVE
Technical
Efficiency
R&D Effort
Physical Limits
Ferment
Variation
Take-off
Diversity
Maturity
Cost reduction
Discontinuity
Breakthrough

13. Discontinuity
Breakthrough
FOSTER’S TECHNOLOGY S-CURVE
Technical
Efficiency
R&D Effort
Physical Limits
Ferment
Variation
Take-off
Diversity
Maturity
Cost reduction
RESEARCH &
DEVELOPMENT
PRODUCT
INNOVATION
PRODUCT
DELIVERY
DISRUPTION

14. VALUE CREATION
COST
VALUE
(Perceived) Benefit to Customer or “willingness to pay”
Resources to produce the product

15. VALUE CAPTURE
COST
VALUE
PRICE
CAPTURED
VALUE
Ultimately payed by consumers

16. VALUE CAPTURE
COST
VALUE
PRICE
CAPTURED
VALUE
Appropiability
(IPRs / Secrecy)
Complementary assets
(MKT, Processes,
Manufacturing,
Distribution, Business
Models, Customer
Experience, etc.)
Ultimately payed by consumers

17. VALUE DELIVERY
COST
VALUE
PRICE
DECREASE
COST
= EFFICIENCY

18. PORTFOLIO MANAGEMENT

19. PORTFOLIO MANAGEMENT
KEY CHALLENGE:
DETERMINE RESOURCE
ALLOCATION ACROSS PROJECT
TYPES

20. HOW EFFECTIVE INNOVATION IS?
* Source: 2016 MIT Survey on Digital Innovation (N=201)
** Source: Innovator’s DNA
Two measures:
YIELD RATE* 45%
INNOVATION PREMIUM**

21. INNOVATION PREMIUM

22. HOW ARE WE DOING?

23. THANKS!@jota_ele_ene