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Meet Bob.
Bob is sad.
Bob is #galau.
Don;t be fooled
by my MIB look.
  I am a CEO,
   mind you.
Bob’s company,
   AutoMotor,
  enjoys sales.
    Stale sales.
Bob decided,
AutoMotor needs
to increase sales.
      He needs to
        innovate.
...but

HOW?
A good
        friend
    sent Bob a
package which
    contains...
A Book and
   A Magazine.
How Do They Help?
This shows
  This tells
                Bob how
 Bob about
               innovation
innovation.
                 works.
Bob believes...
• innovation applies to
  products, business
  process and business
  model; and
• there is no such
  thing as generic
  innovation process.
Bob wants
    innovation
   that reflects
Strategy Maps




He learns...
AutoMotor’s                                                    Long Term
                                                              Shareholder

Strategy Maps                                                    Value




                   Manage total life-
Financial                                                                         Revenue from                Gross Margins
                   cycleProduction
Perspective                                                                       New Products                New Products
                        Costs



Customer             High Performance                                                                     Extend into new
Perspective                                                    First to Market
                         Products                                                                             markets



                Identify Opportunities      Manage the portfolio               Design and Develop                Launch

               • Anticipate customer      • Choose and manage ix of      Manage products through       Ramp-up time
                 needs                      projects                     development stage             Production cosr, quality,
Internal
               • Discover new             • Extend products ro new       Reduce development cycle      time
Perspective
                 opportunities              applications                 time                          Acchieve initial sales goal
                                          • Collaborate                  Reduce development sycle
                                                                         time



                     Human Capital                       Information Capital                        Organizational Capital
Learning and
Growth                                                                                                      A Culture of
                      Multidisciplinary                   Technology to Explore,
Perspective                                                                                                Creativity and
                           Skills                     Integrate, and Speed to Market
                                                                                                            Innovation
Case Studies
• Innovation
• Drivers
• Impacts
Case Studies
                                              Long-Term
                                           Shareholder Value




Financial      Manage Total
                                                               Revenue From        Gross Margins:
Perspective      Life-Cycle
                                                               New Products        New Products
              Production Costs


Customer       High Performance                                                   Extend New
Perspective                                  First to Market
                   Products                                                         Markets




Internal
Perspective




Learning                                   Information Capital:                  Organization
and Growth      Human Capital:
                                         Technology to Explore,               Caoital: A culture of
Perspective     Multidisciplinary
                                         Integrate and Speed to                 creativity and
                     Skills
                                                 Market                           innovation
Jamsostek
• E-Services
  (registration,
  payment, claim)
• Government (BPJS)
• Penetrate new
  market
KFC & Hoka2 Bento
• Oner order number,
  marketing
  programs, CD
  selling
• Customer demand,
  more emotional
  customers, local
  pride
• No 1 Top of Mind:
  fastfood
Amaris
• Low budget,
  efficient, no-fuss
  hotel
• Customer demand
• Higher growth
  (outlets and
  occupancy)
JNE
• Pesona and Pelikan
  (many-to-many
  business process)
• Opportunity
• Fleet numbers
  growth (potentially
  400%, 2012)
Jawa Pos
• Non-stop daily
  newspaper, young
  broadsheet, all
  color-pages
• Company vision;
  opportunity
• Strong positioning
D’Cost
• IT-influenced
  operations (self,
  online, budget
  order, etc)
• Company vision
  (efficiency)
• Strong positioning
Cabe Payung
• Refilled chili paste,
  non-destructible
  packaging
• Survival
• Lower selling cost
  (production,
  transportation,
  storage), leaner
  supply chain
WHAT: Objects to Innovations?
      Products (goods and services).
      Exp: Pesona by JNE

      Business process.
      Exp: multi-skilled employees by
      Amaris

      Business model.
      Exp: music CD sales by KFC
WHAT: INNOVATION OUTPUTS
     Customer acquisition and growth.
     Exp: BPJS by Jamsostek

     Margin enhancement.
     Exp: Music CD sale by KFC

     Customer loyalty.
     Exp: Budget order by D’Cost.

     Others?
WHAT: Type of Innovation
      Basic research and advanced
      development
      Exp: non-destructible packaging
      by Cabe Payung
WHAT: Type of Innovation
      Breakthrough development
      Exp: iPad
WHAT: Type of Innovation
      Platform development
      Exp: Prius to Prius Hybrid to
      Prius Electric
WHAT: Type of Innovation
      Derivative development
      Exp: Mini Cooper to Mini Family
WHAT: Type of Innovation
      Alliance
      Exp: A380 by Airbus and Rolls
      Royce
WHY: Innovating?
WHY:
   Innovating?

• Survival?
  Exp: non-destructible packaging by Cabe Payung

• Diversification?
  Exp: Pesona by JNE

• Business expansion?
  Exp: BPJS by Jamsostek

• Others?
WHO: Is Involved in Innovation?
All employees!
Exp: Jawa Pos




                       Me too?
How Bob Can Use AutoMotor’s
    Capital to Innovate?
HOW: Innovation Process

• Funnel model
  Exp: Rating menu by D’Cost

• Stage-gate model
  Exp: Think tank team by JNE

• Waterfall model
  Exp: ?

• Milestone model
  Exp: ?
HOW: Innovation Process
                                Funnel Model
Customer
Needs
                Concept
                                 Product     Prototype       Production   Release
                Generation
                                 design      Testing
                & selection
Technological
possibilities


                               Stage Gate Model
                   Penilaian               Pengem
       ide           awal
                                 Konsep                  Pengujian    Launch
                                           bangan
HOW: Innovation Process
Identify opportunities:
 • Anticipate customer needs
 • Discover new opportunities
 Exp: Pesona by JNE
HOW: Innovation Process
Manage R&D portfolio
• Choose and manage mix of projects
• Extend products to new applications
• Collaborate
Exp: Featured newspaper pages by Jawa Pos
HOW: Innovation Process
Design & develop new products and services
• Manage products through development stages
    (Concept dev, product planning, detailed product & process engineering)
•   Reduce development cycle time (on time, total time)
•   Reduce development costs
    (Budget vs actual spending at each level)
Exp: the opening of 3 hotels in 1 month by Amaris
HOW: Innovation Process
Bring to market
• Ramp-up time
• Achieve initial sales goals (effective marketing, distribution, sales)
Exp: various promotion program by D’Cost
HOW: To Measure Innovation
         Success?


                Any experience?
HOW: To Keep Organisation
          Innovative?
Needs to:
• have dedicated team to follow up ideas,
• support to resources ,
• perfect timing (link to company calendar), and
• clear reward mechanism.
(Tanadi Santoso)
HOW: To Keep Organisation
          Innovative?
Needs teams and employees with:
• Adokrasi – teamwork spirit
• Ambidekster – loves structure and chaos
(Avanti Fontana)
HOW: To Keep Organisation
          Innovative?
Needs leadership that encourages, appreciates
and demonstrates creative thinking
(Yoris Sebastian)
What’s
the idea,
    Bob?
Endro Catur Nugroho
Marlisa Kurniaty
Marvin Mahadharma
Mudzamil M Fickry Suadu

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Strategy Maps: Innovation Process - A Book by Robert S Kaplan & David P Norton

  • 2. Bob is sad. Bob is #galau.
  • 3. Don;t be fooled by my MIB look. I am a CEO, mind you.
  • 4. Bob’s company, AutoMotor, enjoys sales. Stale sales.
  • 5. Bob decided, AutoMotor needs to increase sales. He needs to innovate.
  • 7. A good friend sent Bob a package which contains...
  • 8.
  • 9. A Book and A Magazine. How Do They Help?
  • 10. This shows This tells Bob how Bob about innovation innovation. works.
  • 11. Bob believes... • innovation applies to products, business process and business model; and • there is no such thing as generic innovation process.
  • 12. Bob wants innovation that reflects Strategy Maps He learns...
  • 13. AutoMotor’s Long Term Shareholder Strategy Maps Value Manage total life- Financial Revenue from Gross Margins cycleProduction Perspective New Products New Products Costs Customer High Performance Extend into new Perspective First to Market Products markets Identify Opportunities Manage the portfolio Design and Develop Launch • Anticipate customer • Choose and manage ix of Manage products through Ramp-up time needs projects development stage Production cosr, quality, Internal • Discover new • Extend products ro new Reduce development cycle time Perspective opportunities applications time Acchieve initial sales goal • Collaborate Reduce development sycle time Human Capital Information Capital Organizational Capital Learning and Growth A Culture of Multidisciplinary Technology to Explore, Perspective Creativity and Skills Integrate, and Speed to Market Innovation
  • 14. Case Studies • Innovation • Drivers • Impacts
  • 15. Case Studies Long-Term Shareholder Value Financial Manage Total Revenue From Gross Margins: Perspective Life-Cycle New Products New Products Production Costs Customer High Performance Extend New Perspective First to Market Products Markets Internal Perspective Learning Information Capital: Organization and Growth Human Capital: Technology to Explore, Caoital: A culture of Perspective Multidisciplinary Integrate and Speed to creativity and Skills Market innovation
  • 16. Jamsostek • E-Services (registration, payment, claim) • Government (BPJS) • Penetrate new market
  • 17. KFC & Hoka2 Bento • Oner order number, marketing programs, CD selling • Customer demand, more emotional customers, local pride • No 1 Top of Mind: fastfood
  • 18. Amaris • Low budget, efficient, no-fuss hotel • Customer demand • Higher growth (outlets and occupancy)
  • 19. JNE • Pesona and Pelikan (many-to-many business process) • Opportunity • Fleet numbers growth (potentially 400%, 2012)
  • 20. Jawa Pos • Non-stop daily newspaper, young broadsheet, all color-pages • Company vision; opportunity • Strong positioning
  • 21. D’Cost • IT-influenced operations (self, online, budget order, etc) • Company vision (efficiency) • Strong positioning
  • 22. Cabe Payung • Refilled chili paste, non-destructible packaging • Survival • Lower selling cost (production, transportation, storage), leaner supply chain
  • 23. WHAT: Objects to Innovations? Products (goods and services). Exp: Pesona by JNE Business process. Exp: multi-skilled employees by Amaris Business model. Exp: music CD sales by KFC
  • 24. WHAT: INNOVATION OUTPUTS Customer acquisition and growth. Exp: BPJS by Jamsostek Margin enhancement. Exp: Music CD sale by KFC Customer loyalty. Exp: Budget order by D’Cost. Others?
  • 25. WHAT: Type of Innovation Basic research and advanced development Exp: non-destructible packaging by Cabe Payung
  • 26. WHAT: Type of Innovation Breakthrough development Exp: iPad
  • 27. WHAT: Type of Innovation Platform development Exp: Prius to Prius Hybrid to Prius Electric
  • 28. WHAT: Type of Innovation Derivative development Exp: Mini Cooper to Mini Family
  • 29. WHAT: Type of Innovation Alliance Exp: A380 by Airbus and Rolls Royce
  • 31. WHY: Innovating? • Survival? Exp: non-destructible packaging by Cabe Payung • Diversification? Exp: Pesona by JNE • Business expansion? Exp: BPJS by Jamsostek • Others?
  • 32. WHO: Is Involved in Innovation? All employees! Exp: Jawa Pos Me too?
  • 33. How Bob Can Use AutoMotor’s Capital to Innovate?
  • 34. HOW: Innovation Process • Funnel model Exp: Rating menu by D’Cost • Stage-gate model Exp: Think tank team by JNE • Waterfall model Exp: ? • Milestone model Exp: ?
  • 35. HOW: Innovation Process Funnel Model Customer Needs Concept Product Prototype Production Release Generation design Testing & selection Technological possibilities Stage Gate Model Penilaian Pengem ide awal Konsep Pengujian Launch bangan
  • 36. HOW: Innovation Process Identify opportunities: • Anticipate customer needs • Discover new opportunities Exp: Pesona by JNE
  • 37. HOW: Innovation Process Manage R&D portfolio • Choose and manage mix of projects • Extend products to new applications • Collaborate Exp: Featured newspaper pages by Jawa Pos
  • 38. HOW: Innovation Process Design & develop new products and services • Manage products through development stages (Concept dev, product planning, detailed product & process engineering) • Reduce development cycle time (on time, total time) • Reduce development costs (Budget vs actual spending at each level) Exp: the opening of 3 hotels in 1 month by Amaris
  • 39. HOW: Innovation Process Bring to market • Ramp-up time • Achieve initial sales goals (effective marketing, distribution, sales) Exp: various promotion program by D’Cost
  • 40. HOW: To Measure Innovation Success? Any experience?
  • 41. HOW: To Keep Organisation Innovative? Needs to: • have dedicated team to follow up ideas, • support to resources , • perfect timing (link to company calendar), and • clear reward mechanism. (Tanadi Santoso)
  • 42. HOW: To Keep Organisation Innovative? Needs teams and employees with: • Adokrasi – teamwork spirit • Ambidekster – loves structure and chaos (Avanti Fontana)
  • 43. HOW: To Keep Organisation Innovative? Needs leadership that encourages, appreciates and demonstrates creative thinking (Yoris Sebastian)
  • 45. Endro Catur Nugroho Marlisa Kurniaty Marvin Mahadharma Mudzamil M Fickry Suadu