A short and concise overview of some common myth about innovation (just five of Dave's favorite myths...there are more). While there is no 'one way' to embed an innovation process into a business, Dave presents a simple framework that any small business can use to start. The key to innovation finding ways to solve customer problems - either ones the customer understands or the ones they don't even know they have. www.dirksonstrategy.com email: dirksonstrategy@gmail.com YouTube: www.youtube.com/dirksstrategy

1. INNOVATION
FOR
SMALL
BUSINESS:
MYTHS
&
LEGENDS
FRAMEWORK
FOR
ACTION
David E. Dirks

3. THE
MANY
FACES
OF
INNOVATION
Product Innovation
Operational Innovation
Service Innovation
Application Innovation
Disruptive Innovation
Acquisition Innovation
Line-Extension Innovation
Enhancement Innovation

4. SO
WHAT
IS
INNOVATION?
Dirks Definition:
Creating products, services and
processes, both internally and
externally, that solve current problems
or fulfill unmet or hidden market needs.

5. Problem:
More than one billion people – one sixth of the world’s population
- are without access to safe water supply. At any given moment,
about half of the world's poor are suffering from waterborne
diseases, of which over 6,000 – mainly children – die each day by
consuming unsafe drinking water.

6. Innovation:

7. COMMON
MYTHS:
MY
FAVORITE
FIVE
Myth: Innovation is only for big companies with big R&D budgets.
Fact: Although they garner a lot of media attention, the Fortune
500 doesn’t own innovation. The trend today is for larger
companies to spur innovation by buy or invest in smaller
businesses or creating their own internal ‘enterprise zones’.
Smaller companies form the foundation for general innovation.
Ex. Apple iPhone Siri
Ex. Of the 1,279 U.S. firms granted 15 or more U.S. patents each
between 2005 and 2009, 42 percent (up from 33 percent, 41 percent
and 40 percent, respectively, in the 2003, 2005 and 2008 studies)
are small firms

8. COMMON
MYTHS:
MY
FAVORITE
FIVE
Myth: Innovation requires lot’s of money.
Fact: Innovation isn’t free but it doesn’t always have to translate
into direct dollars. Although a certain amount of investment is
possible when prototyping products or services, innovation at the
small business level is based on an investment of TIME, SPACE
and PROCESS.
Ex. More R & D Spending Sometimes Means Less
Microsoft $12b
Sony $8b
Apple $4

9. COMMON
MYTHS:
MY
FAVORITE
FIVE
Myth: Customers are a critical source of innovation ideas.
Fact: They are but not in the sense we commonly think.
Identifying problems are customers have and developing the
innovations to solve them are the key.
Ex. Apple iPod – Who told Apple it needed an iPod device? Or that
they needed an iPad? Their customers didn’t.
The most powerful innovations create markets.

10. COMMON
MYTHS:
MY
FAVORITE
FIVE
Myth: Innovation isn’t by epiphany.
Fact: The Hollywood version of innovation: the ‘great idea’ just
hits us out of the blue.
Innovation is about the ability to connect the dots accumulated
from thought, research, questioning, and a multitude of sources.

11. COMMON
MYTHS:
MY
FAVORITE
FIVE
Myth: Innovation is random.
Fact: Innovation doesn’t just happen. It’s hard, challenging,
exhausting and full of failure.
Ex. James Dyson failed 5,127 times before developing his first,
consumer-ready ‘cyclone technology’ based vacuum cleaner –but
there was nothing ‘random’ about his continuous focus on getting
the technology right.
“It wasn’t the final prototype that made the struggle worth it. The
process bore the fruit. I just kept at it.” James Dyson

12. WHAT
IS
THE
FRAMEWORK
FOR
SMALL
BUSINESS
INNOVATION?
There is no magic formula or method.
There is a framework for innovation you can work with:
• Focus on solving customer problems.
• Think in terms of product, service, or process
innovation.
• Establish an R&D budget.
• Create time and space in your workweek for
innovation & discipline yourself to invest the time week
after week.

13. WHAT
IS
THE
FRAMEWORK
FOR
SMALL
BUSINESS
INNOVATION?
• Initially spend more time researching, thinking, and
collecting data, information, ideas, thoughts without
evaluation.
• Keep a database/repository for all the research & data
you collect. Keep it organized so you can find it.
• Look outside your area of expertise for insights.
• Involve others and share your thoughts and findings
to gain further insights.

14. WHAT
IS
THE
FRAMEWORK
FOR
SMALL
BUSINESS
INNOVATION?
• Give your ideas a place to grow.
• Prototype, prototype, prototype. Test. Test. Test.
• Failure is a sign of progress.
• Never stop. Starting working on the next customer
problem to solve.