The document discusses innovation and provides advice on how to encourage innovation. It defines innovation as something different that has impact. Innovation comes in many forms from products to processes. The document urges both strengthening existing businesses and creating new businesses. It provides tips on how to spot innovation opportunities by finding unmet customer needs. Developing the right skills and removing organizational roadblocks can help unleash innovation potential. Experiments should test assumptions to guide learning and adjustment. Leading innovation requires behaviors like role modeling and evangelizing its importance. Training to become a better innovator involves questioning, experimenting, observing, and networking.

1. The Black Box, Cracked
Scott D. Anthony
22 May 2010 | NUS
© Copyright 2010 Innosight LLC

2. Common questions
• What does innovation really mean?
• Why does innovation matter?
• How do I spot innovation opportunities?
• How do I come up with a winning idea?
• How do I know if my idea is good?
• How do I take my idea forward?
• How do I encourage innovation in my organization?
• How do I lead innovation?
• How can I train to be a better innovator?
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3. But before that – a tale of two innovators
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4. What does innovation really mean?
Leonardo da Vinci Thomas A. Edison
Something different – that has impact!
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5. Innovation comes in many flavors
Strategic intent
Commercial Extension Transformational Disruptive
Type of innovation
Product Revenue Model Sales Model Process
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6. Why does innovation matter?
7%
6%
5%
The Great Disruption
4%
3% Era of Optimization
2%
1%
0%
1932 1937 1942 1947 1952 1957 1962 1967 1972 1977 1982 1987 1992 1997 2002 2007
“It is not the strongest of the species that survives, nor the most
intelligent, but rather the one most adaptable to change.”
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7. Today's challenge
Established Business New Business
Strengthening and
Creating the new
extending the core
AND not OR!
“The test of a first rate intelligence is the ability to hold two opposed ideas
in the mind at the same time and still retain the ability to function.”
F. Scott Fitzgerald
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8. It’s tougher than it looks
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9. Rising to the challenge
Yes, you are not Steve Jobs.
But by …
• Following the right approach
• Developing your own skills
• And removing critical
organizational roadblocks
You can unleash your own
and your organization’s
innovation potential
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10. How do I spot opportunities for innovation?
Refrigerators Households
250 250
117
110
100
27
USA China India
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11. Find the job not done well
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12. How do I come up with a winning idea?
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13. How do I know if my idea is good?
My gut check list
• Is there an important
problem that customers
can‟t address because
existing solutions are
expensive or inconvenient?
• Is there a disruptive way to
solve the problem in an
intuitive, convenient,
affordable way?
• Is there a plausible
hypothesis about an
economically attractive,
scalable business model?
• Does the team have the
“right stuff” to manage the
“For every one of our failures,
iterative process of
we had spreadsheets that
emergent learning?
looked awesome”
• Can early profitability be a
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choice? 12

14. How do I bring my idea forward?
Agree on what success
looks like
Determine “deal killing”
and “path dependent”
assumptions
Execute “high ROI”
experiments
Adjust based on the
learning
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15. How do I encourage innovation in my organization?
Bessemer Venture Partners is perhaps
the nation's oldest venture capital firm,
carrying on an unbroken practice of
venture capital investing that stretches
back to 1911.
This long and storied history has
afforded our firm an unparalleled number
of opportunities to completely screw up.
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16. How can I lead innovation?
“If you count on innovation for Example senior leader behaviors
the lion share of your growth,
you can‟t delegate the chief
• Spend time on innovation
innovation officer job.” • Attend external research activities.
• Actively participate in team
brainstorming sessions
• Role model new behaviors
• Seek external experiences
• Interact with key teams on a frequent
basis
• Evangelize the importance of
innovation
• Break processes when required
• Intertwine innovation with corporate
strategy & goal setting
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17. How can I train to become a better innovator?
Question Experiment
Observe Network
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18. A critical reminder
Genius
is…
1%
inspiration
and…
99%
perspiration!
Thomas Edison
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19. Parting thoughts
1. The „choice‟ between innovation and survival is a false one
2. The first step in creation can be destruction
3. The conference room walls block more than the sun
4. The question of “Is this a good idea?” is easy to answer
5. The worst assumption you can make is that you are right
6. Spreadsheets report assumptions, not answers
7. Scarcity is the entrepreneur‟s advantage
8. 100% of 5 trumps 5% of 1,000
9. Where you spend your time is a reflection of your priorities.
10. Devil‟s advocates are abundant; problem solvers are scarce
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20. For more information
santhony@innosight.com
+65 9640 4545
http://www.innosightventures.com
http://discussionleader.hbsp.com/anthony
http://www.SilverLiningPlaybook.com
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