The document discusses the Institute of Design's systematic approach to innovation planning, which includes diagnosing situations, declaring strategic intent, setting conditions to foster initiatives, and using a multi-step process of discovery, invention, and launch. Key aspects of the process include analyzing issues, developing hypotheses, conducting research, creating scenarios and briefs, developing innovations and breakthroughs, and creating roadmaps to guide implementation over time. The overall approach aims to manage innovation in a rigorous yet flexible manner.

1. Innovation Planning
The Institute of Design process

2. Innovation is typically characterized as a flash
of creative insight—typically by some solitary
genius—that is followed by the intense efforts of
a dedicated engineering and marketing team to
overcome all obstacles en route to great success.

3. The reality is far less dramatic, of course, and
far more likely to lead to failure than success.

4. The typical innovation project is managed
by a team uncertain of what it is trying to do,
using a process that is murky at best, and
getting challenged relentlessly by others not
on the team about head count, budget, timing
and expected probability of success.

5. The Institute of Design uses a systematic,
analytic approach to design, problem solving
and innovation.
The ID curriculum was developed in large part
by The Doblin Group, IDEO, Motorola and
Steelcase. The strongest influence on ID’s
approach to design and innovation has come
from The Doblin Group.

6. Innovation Planning | Innovation Discipline Model
The discipline of innovation can be represented by the
following model:
foster initiatives
diagnose situation
author
declare intent initiative discover invent launch extend
set conditions

7. Innovation Planning | Innovation Discipline Model
The key features of the innovation model are given below:
Diagnostics
The field of innovation diagnostics is used to evaluate innovation effectiveness. The metrics used to
diagnose innovation effectiveness cuts across four levels: industry innovation patterns, enterprise
assessment, network assessment, and performance assessment.
Intent
A critical place for senior leadership to get involved is ensuring that innovation has a clear strategic goal.
See “Strategic Intent” by Gary Hamel and C.K. Prahalad, Harvard Business Review, May-June 1989.
Conditions
Another critical place for senior leadership to get involved is ensuring that innovation has the appropriate
metrics and rewards.
Foster initiatives
These are accomplish by the methods and tools presented in the sections that follow.

8. discover invent launch
Issue Hypothesis Roadmap
Analysis Synthesis
Immersions
Briefs
Innovations

9. discover

10. Discover | Overview
The concept discovery phase progresses from
the issue facing the enterprise to the tools that
support analysis of the issue.
Secondary
research
Company
analysis
ISSUE
Competitive
intelligence
Market
analysis
Others
Trend
research
ANALYTICAL
FRAMEWORKS

11. Discover | Issue
The issue is an important topic or problem directed to the
innovation team as a result of the situation diagnosis, the
strategic intent and the conditions of the enterprise.

12. Discover | Secondary Research: Industry Convergence
This is an example of a framework that illustrates the set
of macro trends of the networked economy.
ENTERTAINMENT
TELECOMMUNICATIONS
COMPUTING

13. Discover | Company Analysis: McKinsey’s 7S’s
This framework is used to figure out what made
the organization successful in the past and to
determine what needs to be tweaked to shape
the success going forward.
Structure
Strategy Systems
Subordinate
Goals
Skills Style
Staff

14. Discover | Competitive Intelligence: Three Generic Strategies
“How many ways are their to run a railroad?”
Michael Porter offers the shortest and most
elegant answer to this question ever.
STRATEGIC ADVANTAGE
Uniqueness Perceived
by Customer Low Cost Position
Industrywide DIFFERENTIATION OVERALL COST
LEADERSHIP
Particular
Segment Only FOCUS

15. Discover | Market Analysis: Porter’s Five Forces
Basic to strategy, this model is useful for
helping to describe base dynamic patterns that
affect industries and thus shape the actions of
individual firms.
POTENTIAL
ENTRANTS
Threat of new
entrants
Bargaining power Bargaining
of suppliers power of buyers
INDUSTRY
SUPPLIERS COMPETITORS BUYERS
Rivalry among
existing firms
Threat of substitute
products or services
SUBSTITUTES

16. Discover | Trend Analysis: Product Planning Maps
Is it growing, shrinking or flat?

17. Discover | Other Analytical Frameworks: Position Map
While hot twenty-five years ago, this tool can
still be a useful device for quick efforts to clarify
differences between alternatives

18. Discover | Other Analytic Frameworks: Value Web
When a customer has many alternative pathways to
meet needs, this tool allows the planner to determine
where value is added and how to strategically act within.
TARGET
RETAIL
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SUPPLIES,
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PRODUCTS,
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SUPPLIERS TARGET CUSTOMERS
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VACATION
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INVESTMENTS
PARTNERSHIPS

19. invent

20. Invent | Overview of Innovation Process
The innovation planning phase progresses from hypothesis
to synthesis...
Analysis &
Transform
?
Ethnography
Observational
Research
HYPOTHESIS Scenario
Planning
Experience
modeling
Others
SYNTHETIC
FRAMEWORKS

21. Invent | Overview of Innovation Process
The innovation planning phase progresses from hypothesis
to synthesis, to innovations and breakthroughs.
Analysis &
Transform
Ethnography Briefs
Observational
Research
Scenario
Planning Innovations &
Breakthroughs
Experience
Modeling
Others
Immersions

22. Invent | Hypothesis: Innovation Planning Hierarchy
The hypothesis must have clearly defined boundaries.
The planning hierarchy illustrates possible levels that
can shape innovation initiatives.
Where does the innovation apply?
Arena Research: Some of the most valuable parts of modern life are changing fast enough that even
the terminology is not yet stable. Arena research scans the field and defines the broad outlines of an
emergent field.
Who’s innovating?
Multi-enterprise: Many innovation opportunities transcend many firms and yet can be managed
for integrated effect. These can be actively or passively coordinated. Conventions and technology
‘architectures’ are often key at this level. Examples: PC, ATM, MP3
Single-enterprise: Most innovations tend to occur at this level or below. Examples: Quicken, Microsoft,
Amazon, Calloway.

23. Invent | Hypothesis: Innovation Planning Hierarchy
The hypothesis must have clearly defined boundaries.
The planning hierarchy illustrates possible levels that
can shape innovation initiatives.
Who’s the innovation for?
User, user group, market: Innovations usually target populations, situations, or modes of use. Mostly
these methods come from marketers, brand or category managers, but there are more and more
methods that are truly based around end user understanding. The Institute of Design uses several
methods such as user observation, user experience, usage situations and modes, extreme users, and
life cycle states.
What are you innovating?
Product or service: A single product line can be critical to the perception and value of a whole
company or brand. Products are considered the lowest level of innovation that is useful on a standalone
basis. Examples: Sony Playstation, Nike AirJordens, Microsoft Windows
Component or subsystem: Sometimes you are innovating an ingredient or portion of a product or
service. The test is that this would not be useful on a stand along basis. Examples: Intel Pentium, Velcro.
Base technology: Usually the province of engineers, this can be a process or a proprietary capability
that is developed and then applied or adapted. Examples: carbon fiber composites, RFID.

24. Invent | General Synthesis: Balanced Breakthroughs
One of the simplest and most insightful depictions of
where breakthroughs come from is given by the 3 forces
framework. The power comes form its ability to conceive
innovations that cut across each of the separate areas and
to pull them together.
CAPABILITIES
what’s possible?
What’s Next ?
INDUSTRIES
ACTIVITIES what’s viable?
what’s desirable?

25. Invent | Analysis & Transform: Insight Matrix
This tool manages ‘elements’— goals, items, issues,
etc. and helps discern relationships among these.

26. Invent | Analysis & Transform: Insight Matrix
This is a fast and rigorous planning technique
that can help yield insights from complexity in a
matter of hours.

27. Invent | Observational Research: AEIOU
This theoretical framework asserts that a reasonable
understanding of users can be sorted into five aspects.
Methods used to gather data are often ethnographic.
A E I OU
Activities Environments Interactions Objects Users

28. Invent | Ethnography: Social Science Research
Social science research tends to yield innovations that are
truly ‘grounded’ in what users want, need and will embrace. It
is almost inconceivable that great innovation planning can be
done without using one or multiple forms of user research.
Human Factors
The study of how individuals and groups specifically interface with artifacts. Four kinds: physical,
cognitive, social, and cultural. Selection of which ones to use depends on the project.
Ethnography
Studies the origins and characteristics of racial and cultural groups. Video ethnography and photo
ethnography is of particular use in innovation planning for observing, analyzing, documenting and
explaining insights from user research.
Sociology
The study of organizations, institutions, and structures of human society. Sociologists are used whenever
you want to unpack the relationships between multiple users and artifacts, environments and each other.
Anthropology
Studies the origin and the physical, social and cultural development and behavior of individuals. Use
anthropologists when you want to figure out how artifacts or environments are used by and affect users.

29. Invent | Ethnography: User Camera Study
Camera studies can be used to gain insights into users.

30. Invent | Precursors: SWIPES
Every now and then you sense that lots of stuff is going on
that might add up to a new trend. Of course it is generally the
case that the trend is diffused, coming in many ways, from
lots of places, all at once in ways that make it hard to put your
fingers on the pulse of what really matters.
SWIPES
Statistics Written
& broadcast
Intense Pitches
focus & promotions
Exits
& entrants
Superhits

31. Invent | Precursors: SWIPES
SWIPES help systematically profile diffuse trends. With a name
derived from an acronym but also capturing some of its frenzied
pace, SWIPES is a way to leverage smart secondary research in:
Statistics
The full panoply of available surveys, demographic studies of sociological trends and government or
industry-stated sources.
Written and broadcast materials
Focuses on articles found using keyword searches of mass media materials and the Reader’s Guide to
Periodical Literature.
Intense focus
Looks at a small number of print or broadcast items chosen for strategic relevance, then examined
intensively over a period of perhaps a year to determine patterns and trends of topical coverage.
Examples of such focus include magazine covers, specific columns or features.

32. Invent | Precursors: SWIPES
SWIPES help systematically profile diffuse trends. With a name
derived from an acronym but also capturing some of its frenzied
pace, SWIPES is a way to leverage smart secondary research in:
Pitches and promotions
Examines company material announcing or advertising products or services. This gives insight into what
companies are promoting and the methods for getting public attention. Includes print advertising, press
releases, catalogs and other promotional literature.
Exits and entrants
Looks at what things were new and what things were old. This includes varied items like new products,
fads, services found in “new product” listings, patent registrations, product category growth rates.
Superhits
Examines pop culture successes, especially those things that people suddenly bought a lot of, voting
with their pocketbooks. Seeks to quantify popular through items and services that made a popular
impact. Also leans on things like best seller lists, top-selling toys, movie blockbusters, political voting
landslides, etc.

33. Invent | Scenario Planning: Ranking Trends
Scenario planning is a strategic planning method that is use to
predict trends. It uses trend analysis and a ranking system to
produce scenarios.

34. Invent | Scenario Planning: Classification
Scenarios are developed for each quadrant of an opportunity map.

35. Invent | Scenario Planning: Description & Illustration
Scenarios are further described and illustrated to predict
direction of trends.

36. Invent | Briefs: Taxonomy of Briefs
The Innovation Brief makes observations, suggests specific
strategies and often provides illustrative concepts useful to
pursue. They are necessary because the issues addressed by
innovators has grown very complex:
Arena briefs
These documents describe whole emerging areas of opportunity, usually cutting across companies,
industries or technology. An Arena brief is useful to help identify an industry that may emerge from nothing.
Activity briefs
These documents focus on human beings as individuals or in groups to discern what they do, what they
value, what they use and how they go about various tasks or actions. An Activity brief makes heavy use of
precursors, sketches, and models and is useful to do before Strategy or Product/service briefs.
Strategy briefs
There documents focus on industries and the relationships between multiple players, in order to find
specific concepts that are vital to some specific enterprise. A strategy brief is usually driving towards a
crisp description of a suggested company strategy, one that is heavy on primary innovation.
Product/service briefs
These documents try to conceive and detail some specific system of products and/or services that can
be valuable to an enterprise and compelling for users.

37. Invent | Immersion
Deep mental involvement on the part of the key members of
the innovation team is a necessary ingredient for innovations
and breakthroughs.

38. Invent | Innovations & Breakthroughs: 10 Types
The Doblin Group has produced a taxonomy of ten types
of innovation. This framework can be used to diagnose a
company or create something new.
1. Business model 5. Product performance
how the enterprise makes money basic features, performance and functionality
2. Networking 6. Product system
enterprise’s structure/ extended system that surrounds an offering
value chain
7. Service
how you service your customers
Finance Process. Offering Delivery
Business Networking Enabling Core Product Product Service Channel Brand Customer
model process process performance system experience
8. Channel
how you connect your offerings
3. Enabling process to your customers
assembled capabilities
9. Brand
how you express your offering’s
4. Core process benefit to customers
proprietary processes that add value
10. Customer experience
how you create an overall
experience for customers

39. Invent | Innovations & Breakthroughs: Capabilities
Regular and reliable innovations require capabilities. Leading
innovators have their own special culture and processes. This
generalized capability model comes from Doblin research.

40. launch

41. Launch| Overview
Innovations and breakthroughs proceed to a roadmap
and then to implementation in various forms.
Brand
Strategies
Pilots
alliance
Organizational
Development
key innovations
Change
Management
2006 2008 2010
Architectures
DEVELOPMENTAL ROADMAP & Alliances

42. Launch | Developmental Roadmap: Planning Roadmap
The planning roadmap was developed by Doblin as a
way to plan and depict the evolution of new industries.
Slices over time Relative sizes
At any given time you can Branch heights should
view a vertical slice and indicate the relative size
characterize the kinds of (revenue, market size,
businesses it is involved in. ROI) between various
business pursuits.
New product genres
Innovation When effectively
Often accompanied executed breakthroughs
by a critical mass of spur new genres that can
technology, skills or be extended over time.
innovation to break into
new business area.
Stages
Flexible in nature,
Development initiatives
stages help the
Having enough time company understand
to develop and refine its initial challenge and
concepts is critical to how they build towards
effective breakthroughs some future state.
Stage 1 Stage 2 Stage 3

43. Innovation Planning | Summary
We examined the Innovation Discipline Model in a linear
fashion, focusing on the discovery and invention portion.
foster initiatives
diagnose situation
author
declare intent initiative discover invent launch extend
set conditions

44. In conclusion, I have demonstrated the basic
structure and key features of the discipline of
innovation planning, as taught at the Institute
of Design.

45. By using this model I believe that it will be
possible to get innovation to occur more
reliably and in huge multiplies over norms.

46. Thank You

47. Bibliography
The sources used in the presentation were taken exclusively
from handouts and presentation that were given in classes at the
Institute of Design. Special credit is given to the following sources:
Larry Keeley, CEO, The Doblin Group & Adjunct Professor, Institute of Design
Several portions of this presentation relied on the “Framework Pack” that Larry Keeley handed out to all
students in Design Planning, Fall 2005.
Vijay Kumar, Associate Professor, Institute of Design
Many of the methods and tools in this presentation were taught to me by Vijay in Strategic Design
Planning, Design Analysis and Design Synthesis. In particular, Vijay developed the Insight Matrix and an
adaptation of Scenario Planning.
Others
Frameworks: Michael Porter, McKinsey & Company, The Doblin Group, Institute of Design, Tomoko
Ichikawa and Morris & Miller