The document outlines a training simulation aimed at improving the profitability and growth of Buzz Electronics through innovative product offerings and customer engagement strategies. It highlights the importance of understanding customer benefits, leveraging diversity in ideas, and utilizing an open innovation model to enhance growth potential. Key concepts discussed include dramatic differences in product offerings, effective marketing communication, and the necessity of establishing a 'real reason to believe' in advertising claims to ensure customer trust.

2. Today’s Purpose
• More PROFITABLE
products or services
(new or improved)
Property of
Teach a
Reliable System • More PROFITABLE
customers & markets
for Accelerating
Profitable Growth

3. Today’s Training Simulation
is about...
Property of

4. Property of
History
1. Founded in 1989
2. By George P. Burdell after he was laid off
3. Created Red Devil Security System in his Garage

5. THE RED DEVIL
Security System
Property of Unique Features
• Cross Zone
• Flash Memory
• AES
• Sleek Control Panel

6. THE RED DEVIL
Security System
Primary market is the 6,000,000 Small Businesses
Misc. Small
Businesses
Property of Jewelry
Stores
Consumers

7. THE RED DEVIL
Security System
Sales Trend
US Competition Cloned Us
China Competition
Property of
Introduced
Won Bid
Lean
for Tiffanys Made Us Price
Competitive

8. Owner and Founder
George P. Burdell
Property of to celebrate the
Has gone to Hawaii
Lean Turnaround.
He’s not had a holiday since 1989.

9. THE RED DEVIL
Security System
Sales Trend
Property of
Today

10. Property of
The team has analysed what’s
happened ... and sent a report
to George...

11. We Need Ideas For
Property of
PROFITABLE GROWTH
5 Minutes
to work with your team

12. …let’s see how George
Propertyideas...
likes our of

13. New products/services drive growth….
Growth Rate (%) vs No. New/Improved Products/Services in 3 year period
Property of

14. New customers drive growth….
Average GROWTH RATE
Property of
Number of NEW CUSTOMERS over the past 3 years

15. What Makes This Program UNIQUE...
Property of

16. Innovation Success Factors
Discovered by
REVERSE ENGINEERING
what separates winners from losers
Property of
4,000+ ideas were studied
Over 2,000 Academic Journal Articles Reviewed

17. Process Success Factors
Discovered by
Quality Control Charting of
6,000+ of
Property
Innovation Teams

18. Its NOT about
Balance Sheets,
Accounting
or Cost Control
Property of

19. Today is about changing your
Property of
THINKING SYSTEM
for Accelerating Innovation

20. “94% of failures are
due to the SYSTEM
Property of
6% are due to the
worker”

21. The FACTORY offers
3% of the Opportunity for
Company Improvement.
Property of

22. Property innovation matter?
….why does of

23. “If you’re not Monopoly
unique you’d
Property of
better be
cheap.”
Doug Hall
Commodity

24. Quick Test for Meaningful Uniqueness
Are your profit margins...
10% 20% 50%
Property of industry?
higher than your
If not, then you are
NOT meaningfully unique

25. Why the Focus on
PROFITABLE GROWTH?
Only 1 in 7
small businesses
Property of
close leaving debt
Over 80% Close Because
“It’s not worth the effort”

26. today……..
Property of

27. Property of

28. Profit 101
Property of simulation
= learning

29. Challenge Programme
Property of to your business
applies the system

30. Responsible for £1.5Bn in new
Property of
products & services globally.

31. effectiveness endorsed by…
Property of

32. 6 Key Learning Concepts
1. Dramatic Difference
2. Overt Benefit Difference
3. Real Reason to Believe Difference
Property ofStimulus
4. Explore
5. Leverage Diversity
6. Drive Out Fear
Agenda --- Basic then ADVANCED

33. Your Simulation Workbook
Put your name on it!
Everyone has a different COLOR
on the front of their workbook
Property of
Notes from the presentation
are placed throughout the book

34. Process Starts with An Assessment
Readiness to Create and Execute Profitable Growth
Property of

35. Why Are We Here?
Why do we at Buzz Electronics
need to change our system for
Property of
accelerating profitable growth?
10 Minutes
to work individually
& with your team
Handout + Pages 4 & 5

36. Report Out!
thunderous applause
Property of
guaranteed

37. 6 Key Learning Concepts
1. Dramatic Difference
2. Overt Benefit Difference
3. Real Reason to Believe Difference
Property ofStimulus
4. Explore
5. Leverage Diversity
6. Drive Out Fear
Agenda --- Basic then ADVANCED

38. Dramatic Difference
You TRIPLE your odds of success when
you offer a DRAMATIC DIFFERENCE in
Overt Benefit & Real Reason to Believe
Property of
Dramatic Difference Probability of Success
Low Dramatic Difference 14%
Medium Dramatic Difference 40%
High Dramatic Difference 53%

39. Average % Profit Margin vs Core Business Strategy
16
15
14
13
12
Property of
11
10
9
8
7
Low Cost Quick Delivery Voice of Customer High Quality Innovation
Georgia Institute of Technology
n=738

40. 370%
Greater chance
of profitable
Property of
success for ideas
that are
Extremely/Very
Unique

41. RADICAL Innovation
versus Incremental Innovation
Company
Valuation
Property of 7X
Marketing
Effectiveness 9X

42. Companies That It’s NOT the
Patent Grow Certificate
5X Faster
Property of
It’s the
MINDSET!

43. THE FIRST!
THE ONLY!
Property of
New Customers love
NEWS & hope

44. 6 Key Learning Concepts
1. Dramatic Difference
2. Overt Benefit Difference
3. Real Reason to Believe Difference
Property ofStimulus
4. Explore
5. Leverage Diversity
6. Drive Out Fear
Agenda --- Basic then ADVANCED

45. Overt Benefit Difference
You TRIPLE the effectiveness of
your marketing efforts by OVERTLY
communicating your customer benefit
Property of
Low Overt Benefit
Probability of Success
13%
Medium Overt Benefit 26%
High Overt Benefit 38%

46. Features are not Benefits
Features are the
- Facts
Property of
- Figures
- Technology
- and Details
That make up your offering

47. Benefits are…
WHY should I care?
I = the customer
Property of will make you
“Our product
Smarter...
Faster...
Healthier...”

48. Property of
feature benefit
stabilisation reduces
control rollover risk

49. Property of
feature benefit
quality long-lasting &
wax blends glossy shine

50. Property of
feature benefit
On-Line You Save More
Banking with auto budget

51. Property of
feature benefit
Contains Fast Teething
Benzocaine 7.5% Pain Relief

52. WHY should I care?
WHY should I care?
WHY should I care?
Property of
WHY should I care?
WHY should I care?

53. Features to Benefits
Turn 3 Unique Features
of the Red Devil
into OVERT Benefits
Property of
Work individually then
work with your team
15 mins
Pages 6-7

54. Benefits are Relative
to a
Property of
Specific Customer

55. Target
Audience =
Property of
Those who
compete Cookshack Cookers
In BBQ Send You to The
Competitions Winners Circle 1,000+ Wins

56. NEW Target Audience
Those who don’t compete
WARNING
This Electric Cooker is
Property of ILLEGAL in Competitions
It gives the user an
UNFAIR ADVANTAGE
as the even heating
makes it too easy to
Make Perfect BBQ Every Time

57. 6 Key Learning Concepts
1. Dramatic Difference
2. Overt Benefit Difference
3. Real Reason to Believe Difference
Property ofStimulus
4. Explore
5. Leverage Diversity
6. Drive Out Fear
Agenda --- Basic then ADVANCED

58. Overt Benefit Real Reason to
Difference Believe Difference
Property of
gets customers closes the sale
excited

59. If you’re promising a
BENEFIT DIFFERENCE
Then…
Property Be Doing
You MUST of
SOMETHING DIFFERENTLY
(i.e. have a “Reason to Believe” Difference)

60. Real Reason to Believe Difference
You DOUBLE your odds of Success when you
Communicate a REAL REASON TO BELIEVE
That your OVERT BENEFIT will be delivered.
Property of
Real Reason To Believe Probability of Success
Low Real Reason to Believe 18%
Medium Real Reason to Believe 29%
High Real Reason to Believe 42%

61. if every company did what
Property of
they promised…..

62. Property of no need for…..
there would be

63. “Real
Property of to
Reason
Believe.”

64. 93% of consumers do not have
confidence in the advertising
messages of major corporations.
Property of
-Yankelovich

65. 64% of consumers do not believe
that the news media get their
facts straight.
-Gallup
Property of

66. Your Overt Benefit Should…
Property of
DEMAND
Real Reason to Believe

67. It’s Simple
BE REAL
Property of
Tell the TRUTH &
do what you promise.

68. The Truth
Property of
Added 5 Words ...
“baked in not
painted on”

69. Property of
$20M
Growth

70. Five Strategies for adding
Real Reason to Believe
Probability of Success
Holding all else constant
Property of
• 1. Tell the Truth
2. Testimonial
3. Pedigree (Methods, Materials)
42%
41%
41%
4. Data or Demonstration 45%
5. Guarantee (That’s “risky”) 60%
“risky” to you, not to the client

71. the TRUTH
Property of

72. expert TESTIMONIAL
The Service: Laser Vision Correction
Property of
The Benefit: Near Perfect Vision
The Real Reason to Believe:
Testimonials from DOCTORS who have
used this DOCTOR for Eye Surgery

73. PEDIGREE
“Arguably the Best Whisky in
the World.”
Dave Broom
Whisky Magazine
“The Greatest All Rounder in the
Property of
World of Malt Whisky.”
Michael Jackson
Whisky Expert
“The world’s greatest distilled spirit
at the present time. Buy what ever
you can find.”
Paul Pacult
Spirit Journal Retaste 12.07
Overt Communication of
Pedigree Grew Sales 30%+

74. DEMONSTRATION
Property of

75. Property of

76. 6 Key Learning Concepts
1. Dramatic Difference
2. Overt Benefit Difference
3. Real Reason to Believe Difference
Property ofStimulus
4. Explore
5. Leverage Diversity
6. Drive Out Fear
Agenda --- Basic then ADVANCED

77. Explore Stimulus
• Uniqueness Mining
• Customer Mining
• Technology Mining
Property of
Stimulus Available
Low Stimulus
# of practical ideas invented
22
Medium Stimulus 38
High Stimulus 47

78. Stimulus 1 + 1 = 3
+ =
Property of
+ =

79. Traditional Model
draining
Individual Brainstorming
Before After
Property of
Suck Method
Uses Your Brain Like A
LIBRARY

80. COMPUTER
Property of
Stimuli sets off a CHAIN Reaction!!!

81. Where To Go On Holiday?
Property of

82. Where To Go On Holiday?
Property of

83. Real Wisdom is about looking innocently….
“We find ourselves looking at the same
old data, but we now see it in a
Property of
dramatically different way. We
experience another valid - and
sometimes more significant way of
understanding what is.”
Copthorne Macdonald

84. Like when you FIRST started your
company or started your job…
Property of

85. 6 Key Learning Concepts
1. Dramatic Difference
2. Overt Benefit Difference
3. Real Reason to Believe Difference
Property ofStimulus
4. Explore
5. Leverage Diversity
6. Drive Out Fear
Agenda --- Basic then ADVANCED

86. Leverage Diversity
Diversity multiplies the impact of stimulus.
Property of
Diversity of Thinking
Low Diversity
# of practical ideas invented
19
Medium Diversity 30
High Diversity 46

87. Clones Create Clones
What is a rose? “Beauty”
Property of “Beauty”
“Beauty”

88. Diversity Multiplies
Stimuli
“Beauty”
What is a rose?
Property of “Vitamin C Tea”
“Rose Water”
“Tango”

89. Leveraging
Diversity
Property of
is not for
WIMPS!

90. STIMULUS MINING
• Customers
• Technologies
•
Property of
•
Suppliers
Distributors
• Sales People
• Customer Service Complaints

91. DIVERSITY
Finance R&D
Operations
Property of Marketing
Sales Purchasing
breaks down internal silos

92. STIMULUS MINING
Uniqueness Mining
Property of
Customer Mining
employees inputs
Pages 8 & 9

93. For Example…
Uniqueness Mining
Property ofhave tonnes
Our sensors
of extra memory
Idea...

94. Use the memory to add a
computer game to the system
Property of
Security System PLUS
Mission Impossible Game

95. Buzz Ideas
PAIR UP TO
INVENT IDEAS
for new
Property of
PRODUCTS / SERVICES
for BUZZ Electronics
ON Pages 10 & 11
using stimulus
from pages 8 & 9 15mins

96. is not
Property of
a strategy
for success

97. Property of
What is it?

98. is not
Property of
a strategy
for success

99. CHALLENGE
The more Dramatically Different
Property The Greater The
of
CONFUSION

100. Confusion Clarity
Barrier compositions and articles Cancer-Safe Fast Food Tub
produced with the compositions
A stable, aqueous barrier coating
composition includes: (a) prolamine;
(b) cold water insoluble polymer; (c)
The first biodegradable fast food
water; (d) water-soluble co-solvent; sandwich container that provides
Property of
and (e) stabiliser. The composition,
when applied to a substrate,
produces an article having a high
grease protection without the
chemicals that have been found to
cause cancer.
surface energy and resistance to oil
and grease penetration. A method of
producing the article involves
applying the composition to a
substrate...

101. Hot Water Tap
Confusion
The finest quality tap available. Clarity
Made from heavy cast brass
patterns, copper tubing with Our Industrial Water Taps...
stainless steel and aluminium
Property of
accessories, these faucets are
1. Provide 2 times greater flow
19 vs. 6 gallons per minute at 25 psi
designed, built and tested to last
for the life of your plumbing
2. Installs in half the time
system. Use a standard 1 3/8ths drill bit
vs. Chiseling a 3 inch hole
They’re the BEST Available!

102. Half the Time
Double the
Property of Flow

103. Research finds
that you should….
Write So That A
12 Year Old Can
Property of
Painlessly Understand
Your Idea

104. CLARITY is especially necessary with
TECHNICAL Offerings
Property of
Geek to Geek to
Marketing
& Accounting

105. One or Two Benefits = 44% Success
Three or More Benefits = 37% Success
Property of
Conclusion:
Do One Thing Great!

106. FOCUS - improves CLARITY
Property of 24 flavors of jam.
Free tasting
of

107. FOCUS - improves CLARITY
Property of
Free tasting of 6 flavors of jam.

108. FOCUS - improves CLARITY
6 flavors
Property of
24 flavors
2 % Bought
12 % Bought

109. Golden Rule of Clarity
Let a customer say NO…
because what you offer doesn’t apply to them.
Propertylet a customer say
But NEVER of
NO because they don’t
understand what you’re offering.

110. Our Focus:
New products / services
Property of
for Buzz Electronics

111. you have 15 minutes…..
Property of

112. Buzz Ideas
Team adds CLARITY
Property of
Write idea on GREEN Card
Use pages 12-13 as guidance

113. Vote at Table
Use ALL of your coins
Where should
Property of we Invest
George’s Money?
Your Opinion On The Ability Of This Idea to
Accelerate Profitable Growth

114. You can vote Or You can
ALL on ONE SPLIT your Vote
Property of

115. NOT A COMPETITION
We are in this together
Property of

116. Report Out!
thunderous applause
guaranteed
Property of

117. Lunch Break
Property of

118. Why do we hope a miracle will occur?
Property of

119. The Innovation Systems Way to Leverage Group Diversity
1. INDIVIDUALS 2. CREATE with Partner
Explore STIMULUS Leverage DIVERSITY
Property of
10 Minutes
20 Minutes
3. LISTEN & LEARN from Team
Drive Out FEAR
20 Minutes

120. Advanced
Property of
Topics

121. Advanced
Property of
STIMULUS

122. Innovation Cost
G
INCREASIN
Pace of Innovation
ACCELERATING
Property of
Resources
CONSTRAINED
Customers
more DEMANDING

123. Best Place To Look for Stimulus
Competitive
/ Customer
Property of
Scouting
Technology 5X
Scouting More Effective
Journal of Product Innovation Management 2005;22:258

124. STIMULUS MINING
Open Innovation
Property of

125. OPEN INNOVATION
is the Future
Old World New World
Property of
All Smart People
work for us and we
Connecting Outside means
85% Increase in R&D
do it all ourself productivity
Not invented here Reapply with Pride
We don’t partner with Our biggest competitor is
competitors our biggest customer

126. OPEN INNOVATION
it’s about buying
it’s about selling
it’s about whole ideas
Property of
it’s about parts of ideas
it’s about trademarks
it’s about patents
it’s about business models

127. OPEN INNOVATION
Property of

128. Companies are Desperate
Innovation Success is Poor
Only 4.5% of projects
meet ROI Goals
Success
Property of
Failure
Boston Consulting
Group 32% Odds versus 4.5% odds

129. OPEN INNOVATION
is the Future
% of P&G
Property of
ideas from
outside the
company

130. The PROBLEM
Inventors Companies
speak speak
Property of
Technology Products
& Patents & Profits

131. “94% of failures
are due to the
Property of
SYSTEM
6% are due to the
worker”

132. the three stages of the system…
Evaluate Launch
Create Ideas
Ideas Ideas
Property of
A system for A system for picking A system for getting
creating as many ideas with the highest ideas to market with
ideas as possible. probability of success. the minimum of time,
money and risk.

133. Some examples of Open Innovation Marketplace s
Where Innovation Buyers, Sellers, Investors & Distributors
Speak the Same Language
e.g. http://www.innovationsupplychain.com/
Property of
Seller BENEFIT
60 Second
Business Credibility
Buyer BENEFIT
Smarter, Faster, Cheaper
Innovation Development
Inventor’s ideas are taken more Companies can painlessly access a
seriously by companies because each virtual Innovation Department that is as
idea comes with an independent much as 3X times more successful, 85%
research report and sales forecast that more efficient and requires 50% less
can be understood in 60 seconds. capital investment.

134. USA Innovation Connections powered by the
1,600 Member NIST/MEP NETWORK
America’s #1 Growth Team
Property of

135. Examples of NIST/MEP Open Innovation Connections
MEP
Network
Property ofMEP Made Connection &
Helped with Licensing of
Tactile Sound System’s
INVENTION
MEP Found
Potential Licensee
In just 30 days
MEP Found 2
R&D Partners
• Montana
• Massachusetts

136. Two Way Publishing
Innovation Innovation
OFFERINGS REQUESTS
Property of Requests to
Purchase/License
Innovations
Requests to purchase
or provide R&D or
Manufacturing help...
Requests
Requests to
Invest in
Distribute
Innovations
Innovations
such as...

137. Examples of Technology Scouting Tools
Direct Connect with
Marketplace Listings
Free Searches & Alerts
Property of
Connect to Inventor with
RELATED Experience
Free Connections
Post “Request for Innovation”
Free Publishing of Requests

138. Who’s at the Other Side?
QuickT ime™ and a
TIFF (LZ decompressor
W)
are needed to see this picture.
Property of

139. Remember...
DIVERSITY
Finance R&D
Operations
Property of Marketing
Sales Purchasing
breaks down internal silos

140. Open Innovation
Finance R&D
Operations
Property of Marketing
Sales Purchasing
breaks down company walls

141. STIMULUS MINING
Open Innovation Mining
from the
Innovation
Marketplaces
Property of on
Pages
14 & 15

142. Open Innovation
Stimulus
Propertymotion detector
Intelligent of
that knows the difference
between humans & animals
Idea...

143. The Terminator
The system
Property of
also
exterminates
rodents!

144. WIPE YOUR
MIND CLEAN
Property of
Create a FRESH Idea
Create a NEW Idea

145. Buzz Ideas
PAIR UP to INVENT IDEAS
for new PRODUCTS/ SERVICES
for BUZZ ELECTRONICS
Property of Pages 16 & 17
ON
using Open Innovation
stimulus from pages 14 & 15
15 mins

146. ADVANCED
Overt Benefit
Property of
Topics

147. Customer Pull
is about offering…
Property of SPECIFIC
CLEAR &
Overt Benefit Advantages

148. Generic
Property of
Claim

149. It’s just as GENERIC as
“what makes us great is...”
Property of

150. Specific & Numeric Benefit Advantages
Overt Benefit Advantages . . .
Clear Benefits . . .
Property of
Features . . .
Confusion . . . Where are you?

151. A NUMBER
Increases odds
Property of
of success by
52%

152. SPECIFIC & NUMERIC
Examples
Property of

153. Be Specific!
Property of
SERVICE
“100% Delivery in 24 Hours we keep
inventory so you don’t have to”

154. Be Specific!
QUALITY
“Our SIMMS fishing
Property of wader zippers WORK -
they’re the same quality
as Air Force exposure
suits.”

155. Be Specific!
PEOPLE
“Our service
Property of people
get it right the first
time - each has at
least 10 years of
experience”

156. Under extreme heat
our Air Blasters
Property of produce up to 50%
more force than
competition.

157. “But my customers are only
interested in low price!”
Property of

158. Low Price is Specific & Numeric
Property of
The only way to beat it is to
OFFER MORE VALUE

159. Are You Catching a Theme?
“If you’re not meaningfully
Property ofbetter be
unique you’d
cheap.”

160. Buzz Ideas
Team adds NUMBERS
Property of
Write idea on GREEN Card
Use pages 18-19 as guidance

161. Vote at Table
Use ALL of your coins
Where should
Property of we Invest
George’s Money?
To Accelerate Profitable Growth

162. Report Out!
thunderous applause
guaranteed
Property of

163. The Truth is...
DRAMATICALLY DIFFERENT IDEAS
PropertyOperational
Cause of
CHAOS
CHAOS

164. SOLUTION = Fix the SYSTEM
“94% of failures
are due to the SYSTEM
Property ofto the
6% are due
worker”

165. System Based on the
Masters of Innovation….
Property of Start Up
Companies

166. Start Ups Are…
The Real EXPERTS of Innovation Commercialisation
Property of
% of Innovations
Still in Business after 3 years

167. Since WWII more than two
thirds of all RADICAL
INNOVATIONS that have
lead to dramatic and
sizable transformations in
Property of
the economy have been
adopted, improved and
developed by SMALL
COMPANIES.
Federal Reserve Bank
of Kansas City

168. Small Companies SHIP
Who Ships Who Ships
University Inventions Independent’s Inventions
Property of
Large Co.
1.7% Odds
Large
Company
Small Company Small Company
& Start Ups & Start Ups
Sources: AUTM FY 2005 U.S. Licensing Survey
Academy of Management Journal 2005, Vol 48, No 5, p 814 - 829
The Economic Journal, 113 (January 2003) pages 226-239

169. TEACH & COACH
Property of Your Team
How to Start Up
Like a Start Up

170. How to START UP like a START UP
Property of
Personal Passion
1 Person OWNS Project

171. The Simultaneous Engineering Approach
1. Plan
Product
4. Act 2. Do
Development
3. Study
Property of
Fail Fast - Fail Cheap
Rapid Cycles
of Test &
Learn
Business
Marketing
Model
Development
Development

172. How to START UP like a START UP
Open Innovation
Property of
“Borrow don’t build or buy”
Manufacturing – Distribution Investment - Ideas

173. The SCOUT
(project General Manager)
Is the HUB of the WHEEL
R&D / Engineering
Property of
Finance SCOUT
Market Research
Sales / Marketing
Manufacturing / Operations

174. The RELAY RACE Approach
Doesn’t Work
Property of

175. The Simultaneous Engineering Approach
Product
Development
Property of Rapid Cycles
of Test &
Learn
Business
Marketing
Model
Development
Development

176. Innovation is about “Whack-a-Mole”
Product /
Service
Reality
Property of Rapid Cycles
of Test &
Learn
Customer Profit
Promise Formula

177. The Deming Cycle
Scientific Method
1. Plan
Property of
4. Act 2. Do
3. Study “Fail Fast Fail Cheap
Get Smart”

178. Old World
“Proper & Mature”
Business Innovation
Fail Fast - Fail Cheap
System
Get Smart
Expensive & Slow
1. Plan 1. Plan
Property of
4. Act 2. Do 4. Act 2. Do
1. Plan 3. Study 3. Study
2. Study 2. Study
2. Study 2. Study
2. Study 2. Study 1. Plan
1. Plan
2. Study 2. Study
4. Act 2. Do
2. Study 4. Act 2. Do
2. Study
2. Study 3. Study
3. Study
2. Study

179. Old World
Leadership Decides Where To Drill for Oil
Property of
Get Bigger
DRILL BIT

180. New World
If hit HARD ROCK - Try somewhere else
Property of

181. Old World New World
“You don’t have “Yes, but we
Persistence have profits.
Property of
&
Dedication”

182. Fail Fast
Fail Cheap
& Get Smart
Property of
test with
vending
machines

183. Fail Fast
Fail Cheap
& Get Smart
Property of
test at
trade shows

184. Validation…
Probability of Sustained
Marketplace Success
60% PP / 40% N&D Still in Distribution after 3 Years
Correlation = .82
Correlation = .70
Property of
7X Smarter than Humans
I.R.I. Scanner Data
Correlation with REAL World Results
(Raw results - not adjusted for marketing support)
% Wrong
70 % 10 %
Wrong % Trial r = .42 99% confidence
Wrong Purchase Frequency r = .44 99% confidence
% Repeat r = .38 99% confidence
Humans $/1000 Customers r = .37 99% confidence

185. Initial Small Business - Validations
Innovation Sales Forecasts
Actual In System
Industry % Diff.
market Forecast
Industrial Equipment Innovation for
$1,700,000 $1,800,000 +6%
Pharmaceutical Industry
Property of
Commercial Plumbing Innovation
Home Construction Service Innovation
$150,000
$175,000
$140,000
$160,000
-7%
-9%
Bio-Science Material Innovation $150,000 $150,000 0%
Sporting Equipment Innovation $240,000 $250,000 +4%

186. Property of

187. Approach
Focus on Biggest Threats or “Unknowns” First
Property of KILLER
Death Threat
Small Small Small
Problem Problem Problem

188. P&G Does the Same
Focus First On Project
Death Threats
“Teams like to address easy issues first. At P&G we
Property of
have flipped the sequence. Teams must identify so-
called “killer issues” - problems that must be solved
for the innovation to succeed.”
A.G. Lafley
Retired CEO

189. Focus on Biggest Threats First
Turn KILLER Threats
Into Manageable Threats
1. Plan
What Death
Threat?
Property of
KILLER
4. Act
Apply
Revise
Stop
3. Study
2. Do
Learn
What learned?
Death Threat
Manageable
Threat

190. Fail Fast Fail Cheap
Development System
Dissolve Risks with Small Steps
Focus Small Steps Leadership
Kaizen 1. Plan
“Solve Big
Problems with 4. Act 2. Do
Small Steps of
3. Study
Property of
Disciplined Focus on
Continuous
Learning”
“Fail Fast
Fail Cheap”
the... Dig for Make it
• Death Threats
Truth Real
• Leadership Structure
• Killer Issues
Do the
Numbers
Ask for
Advice
• Simultaneous Engineering
• Meeting Rhythm
• Big Rocks

191. Property of

192. Property of

193. Property of

194. Situation: Bill a home brewer thinks he's invented
a beer that prevents hangovers. He uses a secret
collection of herbs to make it work.
Death Threats: Bill meets with an investor
Property of
who is interested in the idea. However, the
investor has identified two Death Threats that
he's asked Bill to address before he invests.
1. Is it legal to sell it?
2. Does it really work?

195. 1. Is it legal to 2. Does it really
Death Threat
sell? work?
Ask for Advice Ask the herb
Innovation Supply Chain
Customer Feedback company to
- Problem
- Idea / Product investigate
Do the Numbers
•Estimate Sales
•Estimate Cost
Property of
•Reduce Uncertainty
Dig for Truths
•Data & Research Dig
• Technology & Patent Dig
• Inventor & Expert Dig
Make it Real Test it with 10 people
•Feel the PAIN (Problem)
•Fast “Works Like” Prototype who typically get
•Fast “Looks Like” Prototype hangovers

196. We’re not trying for a TOTAL Solution
Just trying to remove it from DEATH THREAT LIST
Property of
Give attention to the plate that is about to fall
just enough to keep it spinning.

197. Let’s use…
The Top Idea
Property of 4. Act
1. Plan
2. Do
3. Study
Death Threats Fail Fast - Fail Cheap
Get Smart Options...

198. Which Idea
received the most money?
Property of
Remember... everybody wins when
these ideas result in profitable growth!

199. Buzz Plan
THINK
Fail Fast
Fail Cheap
Property of Smart
Get
Methods
15 Minutes
to work as a team Page 21

200. Report Out!
thunderous applause
guaranteed
Property of

201. Some Ideas Get Accelerated NOW
But no ideas are
THROWN
Property of
AWAY

202. Pipeline Management of Innovation
High Probability Correct
Ideas (£/€) Understanding of
Value
Property of =
Medium Probability
Ideas (£/€)
Max Chance of
Hitting Growth
Low Probability
Ideas (£/€) Targets From
Innovation

203. A Simple Pipeline Management System…
Conservative Most Likely Aggressive Development Proprietary
IDEA Forecast Forecast Forecast Status Status Trailblazer
ACTIVE
Project #1 £0 £0 £0 1 to 5 1 to 5 name
Property of
Project #2 £0 £0 £0 1 to 5 1 to 5 name
Later
Project #3 £0 £0 £0 1 to 5 1 to 5 name
Project #4 £0 £0 £0 1 to 5 1 to 5 name
TOTAL £0 £0 £0 average average

204. Good
News
Property of
Profitable Growth
is Not Random

205. Leading Profitable Growth
1. Dramatic Difference
2. Overt Benefit Difference
3. Real Reason to Believe Difference
Property of
4. Explore Stimulus
5. Leverage Diversity
6. Drive Out Fear

206. Challenge Programme
Property the Learning
Applies of
In-Company