The document discusses innovation at Premier Manufacturing Support Services. It defines innovation as implementing new ideas or improvements to products and services to create greater value for customers. The document outlines different types of innovation, including new technologies, business models, pricing strategies, and more. It also distinguishes between invention, which is developing a new concept, and innovation, which is finding new applications or combinations of existing resources. The document then discusses how innovation occurs globally and provides examples of innovative companies and countries. It emphasizes that innovation requires an ongoing process of learning and improvement.

1. INNOVATION EVERYWHERE Together We’re Brilliant Premier Mfg Support Services – Oct 07

2. WHO WE ARE Tom Morgan – General Manager/Innovation – Premier Manufacturing Support Services David Wallace – Innovation/Communications consultant – Gamechange LLC Program What Is Innovatio n ? Both companies and countries can be innovators Services – The new frontier of innovation Innovation and Premier Mfg. Support Services

3. INNOVATION WHAT IS INNOVATION? INNOVATION – Implementing an idea or improving upon products and services of today; and discovering new clients, delivering unique and benefits. To customers, this can mean a prouduct, services, process or a tool that makes their tasks easier, faster, more comfortable, less expensive, safer – above all, delivering greater value or improving their lives.

4. TYPES OF INNOVATION Inventing an interesting new “thing” isn’t necessarily “Innovation.” The light bulb was an invention, but the larger innovation was the system of wires, services, distribution, companies that sold light and electric power to consumers. New services, new business models or formats, technologies, pricing or business methods – or combinations – all represent opportunities for innovation. Other MP3 players came before the iPod – this one from 2001 cost USD$500, made by Sony, well-known for innovations in music players and electronics .

5. INVENTION vs. INNOVATION Don’t confuse them, they are NOT the same. INVENTION A new concept originating from study or experiment. INNOVATION Trrying to do something better than ever Frequently, is part of a program that is broader or more complete Find new applications or combinations of existing resources Above all, innovation is NOT invention. It’s a word from economics not technology . Peter Drucker

6. INVENTION vs. INNOVATION Although Thomas Edison receives the credit for inventing the lightbulb, in reality. . . The innovations include the sale of electricity, wiring, lights and appliances, repairs for devices and networks that continue today.

7. Invention Innovation Telephone The Network (Ma Bell) MP3 player iPod and iTunes (innovations can be the result of inventions) INVENTION or INNOVATION? Gas Stations Auto Club OnStar™ Autos WHAT NEXT? (innovations improve over time and can get more complex with additional services, features, clients or new technologies)

8. TYPES OF INNOVATIONS TYPE EXAMPLE Breakthrough VCR Apple II and IBM PC (products) Models Dell (sells directly without stores) Grupo Elektra (flexible financing) Technology impact Southwest Airlines (efficiency) Process Toyota (continuous improvement )

9. THE POWER OF DIFFERENT TYPES OF INNOVATION An idea implemented in isolation is less likely to support substantial value or promote a major change – for companies or customers. . . . But combining various ideas and types of innovation result in a more powerful combination, that can achieve more and be harder to duplicate – remember the iPod – and has greater value (and a higher price) for your company.

10. DEPENDS ON YOUR PERSPECTIVE Mount Everest in Nepal/Tibet is the highest with 9678 meters altitude. But Mauna Kea in Hawaii measures 10,314 meters – with only 4205m visible above sea level. It is taller but also known as a volcano or island. What is the tallest mountain on Earth?

11. GLOBAL INNOVATION Economist Intelligence Unit in 2007 identified the most innovative countries based on the number of patents filed per-capita. Top 10 Japan Germany Switzerland Denmark U.S. Taiwan Sweden Netherlands Finland Israel

12. GLOBAL INNOVATION Forrester Research 2007 – identified nations with the top-ranked innovation networks (government, educational, corporate and university participants) Countries with the highest ranked networks were: Finland Ireland Sweden Switzerland U.S.

13. GLOBAL INNOVATION Yet economic giants such as Russia, China, India, Brazil and Mexico NOT included among the top nations for innovation. WHY? The Economist survey predicts that Mexico increases its ranking six places in the next five years (2012) yet the top four ranked nations show no significant change. And the return-on-innovation in Mexico will be greater than in Japan, U.S. or other countries considered innovation leaders.

14. GLOBAL INNOVATION In 2003, the Mexican economy ranked 10 th -largest in the world. In 2004, it was the 11 th largest By 2005 it had declined to 12 th The future depends on the use of knowledge, networks, technology and science. Lowering prices is a strategy any person, company or country can employ – and is not a sustainable advantage. . source: CSIS

15. WHERE DOES INNOVATION LIVE? 2006 Business Week/Boston Consulting Group surveyed where research/devt spending goes

16. GLOBAL INNOVATION This list of companies described as most innovative shows that results often depend on location, as people recognize companies from their own region. Source: Business Week/ Boston Consulting

17. GLOBAL INNOVATION Some of the companies recognized as the Most Innovative Corporations in the World -- Business Week/Boston Consulting Group.

18. GLOBAL INNOVATION Companies recognized as The Most Innovative Corporations in the World -- Business Week/Boston Consulting Group. Recognized by Accenture as a 100-year-old company, and a commodity product. Adding new services, time-specific deliveries and other innovations changed everything. Today, Cemex is growing its business, selling more than cement. No company or country has a monopoly on innovation

19. SERVICES AND INNOVATIONS Now is the prime time for service innovation Since 1987, the majority of the U.S. economy has been in service delivrey not sale of products. In 2006, 85% of payrolls were service workers. By 2006, 84% of all companies in the U.S were service providers Tipping Point 1987 Source: Tim Ogilvie/Peer Insight 1980s 1990s 2000s US Economic Output

20. A HISTORY OF SERVICE INNOVATIONS The ‘Avon Lady’ was created in 1886 to sell cosmetics products door to door in the U.S. In 1950, Diner’s Club created the charge card – initially to meet the needs of traveling salesmen. After the ‘Tipping Point’ (1987) Dell, Capital One, Amazon, Bital, eBay and other companies changed the rules of various industries by use of technology or created entirely new categories by using service innovations.

21. SERVICES ARE PROFITABLE Hewlett-Packard reported that 20% of income in 2005 came from services – representing 46% of profits! NCR service income surpassed income from sale of products in 2004. Xerox said its service business is growing at 2X the rate of its sale of products. Source: Tim Ogilvie/Peer Insight And many auto makers earn more from the sale of services – repairs, financing, logistics and parts than from the sale of their products.

22. SERVICES ARE CREATIVE Instead of “things” companies offer solutions to the problems of their clients. In a study of work activities in 2005, consultants McKinsey & Co. found that 40% were “interactiions” – collaboration, design and development of solutions. Creativity is difficult to study and manage because it is different everywhere – and has no basic materials like oil or cement. Service providers need the power and knowledge to make decisions that assist their clients.

23. 21 st CENTURY SERVICES New clients, complex services / solutions and entirely new systems have developed from service innovation. MinuteClinic now offers limited medical services to people in stores of retailers Target and CVS. Bital opened its branches until 7pm to serve its clients with more convenient banking hours.

24. THE FUTURE OF SERVICE INNOVATION THE GOOD NEWS Every company can see the opportunities presented by services and deliver them worldwide. The ease of creating services, the return-on-investment, global presence and other benefits make it easier than ever to be a service company. THE BAD NEWS . . . All the competition and new features that can come from any industry or country. The rate of change will only get faster and require you to stay ahead!

25. Innovation is a process and we’re just starting our journey. . . . Like students of karate, there are various skills and levels, with increasing levels that indicate mastery and expertise. SERVICE INNOVATION AT PREMIER The best way to get a good idea – is to get lots of ideas. Linus Pauling

26. PREMIER’S INNOVATION JOURNEY Innovation requires change and adapting knowledge or skills while learning new abilities Belts Actions Level White Decide Yellow Define Orange Communicate Green Plan Purple Execute Blue Examine errors Red Learn Pardo Repeat processes Black Innovation culture

27. INNOVATION ISN’T EASY OR QUICK INNOVATION PROGRAMS OFTEN FAIL 80 to 95% of innovation activities commit errors or fail – Clayton Christensen, Innosight SUCCESS Only about 8 % of innovation projects exceed their goal for return on investment and about 12% exceed their R&D cost of capital – Peer Insight THEN WHY DO IT? There is a better way – find it. Thomas Edison

28. Experts say that innovation today – as a practice – is similar to the ‘Quality’ movement in the 1980s. Processes are moving from randomness toward repeatable, measured systems. It’s described as a long train with service innovation as the caboose. Very shortly, innovation will be a critical, standard business tool. THE RISKS OF NOT INNOVATING If you are not reinventing your company, I guarantee you are falling backwards. Fujio Cho, Toyota

29. Some rules for winning the game of innovation Ask questions. Look for ways to improve. Talk with other people. Make suggestions. Celebrate small wins. Be persistent. Have a positive attitude. Take small steps. Release control. Invest quality time, not just quantity. Don’t punish failure. Learn from every experience. THE ROUTE TO SUCCESS

30. EVERYONE MAKES A DIFFERENCE Anyone can be an innovator by Sharing experiences, knowledge and suggestions. Taking initiatives to pursue improvements. Looking for opportunities – some are simple but others have huge potential. Participating when your knowledge is requested or valued. Working together – ideas get stronger when they’re combined and good ideas are moved to action. Innovation is a voyage and you’re all invited along

31. Innovation means change but the choice is yours RESISTING CHANGE Same as it ever was Maintaining traditions Giving clients familiar results PURSUING CHANGE Uncertainty and flexibility Always asking “What’s next?” Unexpected but better A BALANCING ACT/ PLANNING THE FUTURE

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