1/. The Myths of Innovation
2/. People and Teams for Innovation Success
3/. Customer Focused Innovation
4/. Speed: New thoughts on an old idea
5/. Co-Creation to build more value
6/. Eco-system development
7/. Selecting Ideas / Theories to tie things together
2. Bryan Cassady Guest Professor, Bryan@fast-bridge.com
Class Update 5
Creating an innovation team @biognosys 15
Insight/ Customer Driven Innovation 60
Break 15
Let’s re-invent google 65
Companies open for an audit 10
Checklist based on today’s class 5
Next week's assignment 5
180
9. Bryan Cassady Guest Professor, Bryan@fast-bridge.com
Example
“The consumer isn’t a moron. She is your wife.”
David Ogilvy
“We don’t sell cosmetics, we sell hope”
Revlon
20. Bryan Cassady Guest Professor, Bryan@fast-bridge.com
Is there agreement among managers
in your company as to …
YES NO
What innovation is?
What a customer need is?
21. Bryan Cassady Guest Professor, Bryan@fast-bridge.com
The drill is a
solution
The hole is
the need
24. Bryan Cassady Guest Professor, Bryan@fast-bridge.com
Dynamics of the Ideas-First Approach
● Successful innovation is a numbers game
… the more ideas, the better
● The goal is to fail fast – quickly evaluate
ideas to see which are best
● Evaluations are conducted without
knowing all the customers needs
● This approach is guesswork – it leads to
failure 70-90 percent of the time
It’s inherently flawed for 3 reasons:
1. You never know ALL the customer needs
2. Brainstorming more ideas without knowing
the customer’s unmet needs won’t
increase the probability for success
3. The evaluation and filtering approach is
flawed
Brainstorm
Evaluate and
Filter
Select a Concept
25. Bryan Cassady Guest Professor, Bryan@fast-bridge.com
Failing Faster Doesn’t Work
“Nothing is less productive
than to make more efficient
that which should not be done
in the first place.”
Peter Drucker
70% - 90% Failure Rates
Brainstorm
Evaluate and
Filter
Select a Concept
26. Bryan Cassady Guest Professor, Bryan@fast-bridge.com
The Process Must Be Executed Needs-First
1. First, companies must
uncover ALL the
customers’ needs
2. Next, they must
determine which are
unmet
3. Only then are they
prepared to devise
product & service
concepts that address
the unmet needs
30. Bryan Cassady Guest Professor, Bryan@fast-bridge.com
Job of Storing and
Retrieving Recorded
Music
Satisfaction
Vinyl CD MP3
Increase the number of
songs that are available
4 5 8
Minimize the amount of
distortion that is heard
5 8 9
Minimize the amount of
damage during normal
use
3 6 9
Minimize the amount of
storage space that is
needed
4 6 9
Increase the degree to
which the music sounds
live
5 7 6
Cumulative
Satisfaction
42% 64% 82%
31. Bryan Cassady Guest Professor, Bryan@fast-bridge.com
I will see it when I believe it
vs.
I will believe it when I see it
Too much research is the first type
4
32. Bryan Cassady Guest Professor, Bryan@fast-bridge.com
Hot summers
Warm winters
Evidence of
global warming
Cold summers
Cold winters
Evidence of
global warming
34. Bryan Cassady Guest Professor, Bryan@fast-bridge.com
We often do research to check our
brilliant ideas
SUGGING (Selling under the guise
of market research)
Issues
Objective criteria in place before
the research starts
Is 35% planned purchase good or bad
Clearly define your biases before
you start
Focus on insight (vs. confirmation)
Do regular reality checks
Solutions
37. Bryan Cassady Guest Professor, Bryan@fast-bridge.com
How important is it that you are able to….?
Not Important
At All
Somewhat
Important
Important
Very
Important
Extremely
Important
Increase the percent of plants that emerge at the
same time
1 2 3 4 5
Minimize the time it takes the plant to absorb
nutrients once they are planted
1 2 3 4 5
How satisfied are you with your ability to….?
Not Satisfied
At All
Somewhat
Satisfied
Satisfied
Very
Satisfied
Extremely
Satisfied
Increase the percent of plants that emerge at the
same time
1 2 3 4 5
Minimize the time it takes the plant to absorb
nutrients once they are planted
1 2 3 4 5
38. Bryan Cassady Guest Professor, Bryan@fast-bridge.com
Opportunity = Importance + max (Importance – Satisfaction, 0)
OUTCOME IMP SAT OPP
Minimize the time it takes to
for the plant to come out of
the ground
9.0 3.0 15.0
Increase the percent of plants
that emerge at the same time
8.5 3.5 13.5
Increase the percent of
needed nutrients that are
absorbed by the plant
8.0 5.0 11.0
Minimize the time it takes the
corn to turn green, e.g.,
produce chlorophyll
7.5 6.5 8.5
39. Bryan Cassady Guest Professor, Bryan@fast-bridge.com
Satisfaction
Importance
Opp >15
Extreme
Opportunity
Opp >10
Solid Opportunity
Opp >12
High Opportunity
Under-ServedAppropriately Served
Limited
Opportunity
1
2
3
4
5
6
7
8
9
10
1 2 3 4 5 6 7 8 9 10
Table
Stakes
Sustaining or
Breakthrough
Innovation
Over-Served
Opportunity = Importance + max (Importance – Satisfaction, 0)
Ripe for
Disruption
Potential for
Disruption
40. Bryan Cassady Guest Professor, Bryan@fast-bridge.com
Satisfaction
Importance
Opp >15
Extreme
Opportunity
Opp >10
Solid Opportunity
Opp >12
High Opportunity
Over-Served
Under-ServedAppropriately Served
Limited
Opportunity
1
2
3
4
5
6
7
8
9
Opportunity = Importance + max (Importance – Satisfaction, 0)
10
1 2 3 4 5 6 7 8 9 10
Table
Stakes
Ripe for
Disruption
Potential for
Disruption Disruption,
Cost
Reduction
41. Bryan Cassady Guest Professor, Bryan@fast-bridge.com
There goes the risk…
Develop a
solution
Find a need Find a market
Ideas
First
Success
Rate*
5-10%
Find a need
Develop a
solution
Find a market
Needs
First
70 %
* According to Strategyn research on outcome driven innovation…