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Frank Dethier
Frank Dethier –
HOW TO INNOVATE?
ONE HOLISTIC FRAMEWORK
Integrate Strategy, Process, Organization, People
& Culture in one holistic approach  this will
seriously improve your chances of success
2
Strategy
Process
Organization
Resources
Culture
Frank Dethier –
HOW TO INNOVATE?
INNOVATION STRATEGY?
3
Innova-
tion
Strategy
1. What’s your goal?
S
P
O
R
C
2. A) How much investment? From where?
B) When?
C) Who?
3. Define & select your opportunities
(strategic innovation area’s)
Frank Dethier –
INNOVATION STRATEGY
STRATEGIC INNOVATION AREA’S SELECTION
4
How Risky?
Risk MatrixPlot intuitively
How much value?
SWOT
How will we win?
Market size?
Growing?
How much profit?
RBV
5 competitive forces / R-W-W
S
P
O
R
C
Excel
sheet
Excel
sheet
Excel
sheet &
article
Article
Frank Dethier
Session 3: Innovation
Process
Frank Dethier –
HOW TO INNOVATE?
ONE HOLISTIC FRAMEWORK
6
Strategy
Process
Organization
Resources
Culture
S
P
O
R
C
Frank Dethier –
INNOVATION & DELIVERY PROCESS
7
S
P
O
R
C
Deliver new
Products/Services/
Processes that
provide extra
/new value
Frank Dethier –
DELIVERY PROCESSES
PRINCE2
8
S
P
O
R
C
Frank Dethier –
DELIVERY PROCESSES
STAGE-GATE
9
Direction Ideas
External
&
Internal
Propo-
sal
2 3 4 5 6
Feasi-
bility
Develop-
ment
Scale-
up
Launch
Projects
Strategic
objectives
1
Innovation
Process
Frank Dethier –
DELIVERY PROCESSES
10
Waterfall
Agile
Frank Dethier –
INNOVATION & DELIVERY PROCESS
11
S
P
O
R
C
• Explore new
• Markets
• Technologies
• Business models
• De-risk Delivery
Deliver new
Products/Services/
Processes that
provide extra
/new value
Frank Dethier –
INNOVATION & DELIVERY PROCESS
12
S
P
O
R
C
Learning Environment
Controlled Delivery
Environment
Frank Dethier –
INNOVATION PROCESS – WHY?
 Set-up process with established milestones
 As precondition for release of funds
 To avoid a premature scaling
 Do not copy blindly your very structured Delivery
Process (to bring products & services to market)
13
Enable
creativity
& learning
Managed &
well-known
S
P
O
R
C
Frank Dethier –
INNOVATION PROCESS?
WHICH ONE TO CHOOSE
 Industry standard ones like
 Lean Start-up (originally startups)
 Bell-Mason (startups – VCs)
 …
 Company specific ones as long as it answers
 What metrics determine whether to fund an
investment proposal?
 What is the decision-making mechanism?
 How is funding managed?
14
S
P
O
R
C
Frank Dethier –
New &
Existing
Markets
Trends
• Technology
• Need
• Business
• Legal
Innovation
challenges
Dev
Projects to obtain
understanding of
• Technology
• Customer Need
• Business
Internal &
External Ideas
INNOVATION PROCESS S
P
O
R
C
15
Strategy
Idea
selection
Frank Dethier –
New &
Existing
Markets
Trends
Innovation
challenges
Dev
Projects
Ideas
INNOVATION PROCESS S
P
O
R
C
16
Strategy
Idea
selection
Frank Dethier –
Innovation
challenges
Ideas
INNOVATION PROCESS S
P
O
R
C
17
Idea
selection
Frank Dethier –
Innovation
challenges
INNOVATION PROCESS
CHALLENGE
S
P
O
R
C
18
• Generate clear challenge
• E.g. ‘How can we …’, ‘What if …’
• For which market/customers?
• Define upfront ‘good’ decision criteria
• Ensure customer is integrated
• Example
• How can we improve our brand
image in Indian market?
• How can we get a 25-year old
woman in Mumbai to rave about us
to her friends?
Frank Dethier –
Ideas
INNOVATION PROCESS
IDEA GENERATION
S
P
O
R
C
19
• Create conditions that foster
Creativity, e.g.
• Environment
• People with different perspectives
• Ensure you involve everybody (also
more introvert)
• Assign a good moderator
• Define rules during idea generation
Frank Dethier –
Ideas
INNOVATION PROCESS
IDEA GENERATION
S
P
O
R
C
20
SCAMPER
Day in Life…
Brainstorm
From other
industries
6 thinking hats
Frank Dethier –
INNOVATION PROCESS
IDEA GENERATION
S
P
O
R
C
2121
Frank Dethier –
INNOVATION PROCESS
IDEA GENERATION
S
P
O
R
C
22
• Challenge your own company assumptions by placing yourself in shoes
of well-known companies
• How would Ryanair deal with our costs?
• How would Starbucks add experience?
• How would Amazon handle our customer service?
• Get inspiration from other industries
Frank Dethier –
INNOVATION PROCESS
IDEA GENERATION
S
P
O
R
C
23
Frank Dethier –
INNOVATION PROCESS
IDEA GENERATION
S
P
O
R
C
24
Idea killers
Frank Dethier –
Ideas
INNOVATION PROCESS
IDEA GENERATION
S
P
O
R
C
25
Solicited Idea Generations
• Organized brainstorms
• Idea campaigns
• …
Unsolicited Idea Generations
• Letterboxes
• Idea management SW
• …
Frank Dethier –
INNOVATION PROCESS
IDEA SELECTION
S
P
O
R
C
26
Idea
selection
• Take your time (2/3)
• Reflect from customer’s perspective
• Use your defined criteria (from your Innovation strategy as well)
• Choose carefully selection team (not only managers)
• Work eventually in steps, e.g. let teams of top 5 ideas
present their case in front of management
Frank Dethier –
New &
Existing
Markets
Trends
Innovation
challenges
Dev
Projects
Ideas
INNOVATION PROCESS S
P
O
R
C
27
Strategy
Idea
selection
Frank Dethier –
Dev
INNOVATION PROCESS
LEARNING PROJECTS
S
P
O
R
C
28
Sprint 1
• Starting condition
1. Big picture goal/vision
2. Learning you want to achieve in sprint 1
• Focused assignment
• Dedicated team
• Outcome
• Learning
• Any change in big picture?
• Any missing other key learnings?
• Recommendation to (not) continue
and why
Frank Dethier –
Dev
INNOVATION PROCESS
LEARNING PROJECTS
S
P
O
R
C
29
Sprint 2 and next sprints
• Starting condition
1. (Updated) Big picture goal/vision
2. Learning you want to achieve in sprint 2
• Focused assignment
• Dedicated team
• Outcome
• Learning
• Any change in big picture?
• Any missing other key learnings?
• Recommendation to (not) continue
and why
Frank Dethier –
Dev
INNOVATION PROCESS
LEARNING PROJECT PORTFOLIO
S
P
O
R
C
30
“Doing the right things” by
1. Selecting projects
2. Prioritizing projects
3. Manage and follow-up of project portfolio Dev
Dev
Dev
Frank Dethier –
Dev
INNOVATION PROCESS
LEARNING PROJECT PORTFOLIO
S
P
O
R
C
31
Overall budget and risk profile defined
by your Innovation Strategy
Include also Development/Marketing/Sales
budget afterwards
Dev
Dev
Dev
Frank Dethier –
Dev
INNOVATION PROCESS
LEARNING PROJECTS
S
P
O
R
C
32
Create asap a
business case that
will release funds for
‘normal’ development
Or ‘fail’ asap
Frank Dethier –
INNOVATION PROCESS
LEARNING PROJECTS  LEAN STARTUP
 The Lean Startup provides a scientific approach
to creating and managing startups and get a
desired product to customers’ hands faster based
on key principles
 Build-Measure-Learn
 Validated Learning
 Using well-defined process
 Less relevant if your new innovations fall within
current ‘scope’ of your business
33
S
P
O
R
C
Frank Dethier –
BUSINESS MODEL CANVAS
34
Key Partners Key Activities
Key Resources
Value Propositions Customer Relationships
Channels
Customer Segments
Revenue StreamsCost Structure
S
P
O
R
C
Frank Dethier –
INNOVATION PROCESS
LEAN STARTUP
35
Problem/
Solution Fit
Product (MVP)
/Market Fit
Scale
• Value Proposition
• Customer Segments
3 stages of a startup
Do I have a
problem worth
solving?
S
P
O
R
C
Have I built
something
people want?
How do I
accelerate
growth?
• Cost structure
• Revenue streams
• Key activities & resources
• Customer relationships
Frank Dethier –
INNOVATION PROCESS
LEAN STARTUP
36
S
P
O
R
C
Problem/Solution Product/Market Scale
Frank Dethier –
INNOVATION PROCESS
LEAN STARTUP
37
S
P
O
R
C
Frank Dethier –
New &
Existing
Markets
Trends
Innovation
challenges
Dev
Projects
Ideas
YOUR INNOVATION PROCESS S
P
O
R
C
38
Strategy
Idea
selection
Frank Dethier –
INNOVATION PROCESS EXERCISE
 Teams of 2 people
 Create Innovation Process v0.1 of your company
 Separate or integrated from Development process?
 What are your key elements?
 Discuss within your team
 Time foreseen: 30 min
39
S
P
O
R
C
Frank Dethier –
New &
Existing
Markets
Trends
YOUR INNOVATION PROCESS
TRENDS
S
P
O
R
C
40
Technology Trends
Consumer Trends
Legal Trends
Industry Trends
Frank Dethier –
New &
Existing
Markets
Trends
YOUR INNOVATION PROCESS
TRENDS
S
P
O
R
C
41
How does your company deal with those trends?
How do you create an opportunity of them?
How do you guard yourself against it?
Frank Dethier –
YOUR INNOVATION PROCESS
TECHNOLOGY TRENDS
S
P
O
R
C
42
How does your company deal with those trends?
How do you create an opportunity of them?
How do you guard yourself against it?
Frank Dethier –
YOUR INNOVATION PROCESS
CONSUMER TRENDS
S
P
O
R
C
43
How does your company deal with those trends?
How do you create an opportunity of them?
How do you guard yourself against it?
Changing the Self
Quantified Self
Frank Dethier –
YOUR INNOVATION PROCESS
INDUSTRY TRENDS
44
S
P
O
R
C
How does your company deal with those trends?
How do you create an opportunity of them?
How do you guard yourself against it?
Frank Dethier –
New &
Existing
Markets
Trends
Innovation
challenges
Dev
Projects
Ideas
YOUR INNOVATION PROCESS S
P
O
R
C
45
Strategy
Idea
selection
Frank Dethier –
YOUR INNOVATION PROCESS S
P
O
R
C
46
Strategy
Top-down focus to organizationOrganization gives input to
company strategy
Frank Dethier –
New &
Existing
Markets
Trends
Innovation
challenges
Dev
Projects
Ideas
YOUR INNOVATION PROCESS S
P
O
R
C
47
Strategy
Idea
selection

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Voka kempen innovatieacademie 2015 session 3

  • 2. Frank Dethier – HOW TO INNOVATE? ONE HOLISTIC FRAMEWORK Integrate Strategy, Process, Organization, People & Culture in one holistic approach  this will seriously improve your chances of success 2 Strategy Process Organization Resources Culture
  • 3. Frank Dethier – HOW TO INNOVATE? INNOVATION STRATEGY? 3 Innova- tion Strategy 1. What’s your goal? S P O R C 2. A) How much investment? From where? B) When? C) Who? 3. Define & select your opportunities (strategic innovation area’s)
  • 4. Frank Dethier – INNOVATION STRATEGY STRATEGIC INNOVATION AREA’S SELECTION 4 How Risky? Risk MatrixPlot intuitively How much value? SWOT How will we win? Market size? Growing? How much profit? RBV 5 competitive forces / R-W-W S P O R C Excel sheet Excel sheet Excel sheet & article Article
  • 5. Frank Dethier Session 3: Innovation Process
  • 6. Frank Dethier – HOW TO INNOVATE? ONE HOLISTIC FRAMEWORK 6 Strategy Process Organization Resources Culture S P O R C
  • 7. Frank Dethier – INNOVATION & DELIVERY PROCESS 7 S P O R C Deliver new Products/Services/ Processes that provide extra /new value
  • 8. Frank Dethier – DELIVERY PROCESSES PRINCE2 8 S P O R C
  • 9. Frank Dethier – DELIVERY PROCESSES STAGE-GATE 9 Direction Ideas External & Internal Propo- sal 2 3 4 5 6 Feasi- bility Develop- ment Scale- up Launch Projects Strategic objectives 1 Innovation Process
  • 10. Frank Dethier – DELIVERY PROCESSES 10 Waterfall Agile
  • 11. Frank Dethier – INNOVATION & DELIVERY PROCESS 11 S P O R C • Explore new • Markets • Technologies • Business models • De-risk Delivery Deliver new Products/Services/ Processes that provide extra /new value
  • 12. Frank Dethier – INNOVATION & DELIVERY PROCESS 12 S P O R C Learning Environment Controlled Delivery Environment
  • 13. Frank Dethier – INNOVATION PROCESS – WHY?  Set-up process with established milestones  As precondition for release of funds  To avoid a premature scaling  Do not copy blindly your very structured Delivery Process (to bring products & services to market) 13 Enable creativity & learning Managed & well-known S P O R C
  • 14. Frank Dethier – INNOVATION PROCESS? WHICH ONE TO CHOOSE  Industry standard ones like  Lean Start-up (originally startups)  Bell-Mason (startups – VCs)  …  Company specific ones as long as it answers  What metrics determine whether to fund an investment proposal?  What is the decision-making mechanism?  How is funding managed? 14 S P O R C
  • 15. Frank Dethier – New & Existing Markets Trends • Technology • Need • Business • Legal Innovation challenges Dev Projects to obtain understanding of • Technology • Customer Need • Business Internal & External Ideas INNOVATION PROCESS S P O R C 15 Strategy Idea selection
  • 16. Frank Dethier – New & Existing Markets Trends Innovation challenges Dev Projects Ideas INNOVATION PROCESS S P O R C 16 Strategy Idea selection
  • 17. Frank Dethier – Innovation challenges Ideas INNOVATION PROCESS S P O R C 17 Idea selection
  • 18. Frank Dethier – Innovation challenges INNOVATION PROCESS CHALLENGE S P O R C 18 • Generate clear challenge • E.g. ‘How can we …’, ‘What if …’ • For which market/customers? • Define upfront ‘good’ decision criteria • Ensure customer is integrated • Example • How can we improve our brand image in Indian market? • How can we get a 25-year old woman in Mumbai to rave about us to her friends?
  • 19. Frank Dethier – Ideas INNOVATION PROCESS IDEA GENERATION S P O R C 19 • Create conditions that foster Creativity, e.g. • Environment • People with different perspectives • Ensure you involve everybody (also more introvert) • Assign a good moderator • Define rules during idea generation
  • 20. Frank Dethier – Ideas INNOVATION PROCESS IDEA GENERATION S P O R C 20 SCAMPER Day in Life… Brainstorm From other industries 6 thinking hats
  • 21. Frank Dethier – INNOVATION PROCESS IDEA GENERATION S P O R C 2121
  • 22. Frank Dethier – INNOVATION PROCESS IDEA GENERATION S P O R C 22 • Challenge your own company assumptions by placing yourself in shoes of well-known companies • How would Ryanair deal with our costs? • How would Starbucks add experience? • How would Amazon handle our customer service? • Get inspiration from other industries
  • 23. Frank Dethier – INNOVATION PROCESS IDEA GENERATION S P O R C 23
  • 24. Frank Dethier – INNOVATION PROCESS IDEA GENERATION S P O R C 24 Idea killers
  • 25. Frank Dethier – Ideas INNOVATION PROCESS IDEA GENERATION S P O R C 25 Solicited Idea Generations • Organized brainstorms • Idea campaigns • … Unsolicited Idea Generations • Letterboxes • Idea management SW • …
  • 26. Frank Dethier – INNOVATION PROCESS IDEA SELECTION S P O R C 26 Idea selection • Take your time (2/3) • Reflect from customer’s perspective • Use your defined criteria (from your Innovation strategy as well) • Choose carefully selection team (not only managers) • Work eventually in steps, e.g. let teams of top 5 ideas present their case in front of management
  • 27. Frank Dethier – New & Existing Markets Trends Innovation challenges Dev Projects Ideas INNOVATION PROCESS S P O R C 27 Strategy Idea selection
  • 28. Frank Dethier – Dev INNOVATION PROCESS LEARNING PROJECTS S P O R C 28 Sprint 1 • Starting condition 1. Big picture goal/vision 2. Learning you want to achieve in sprint 1 • Focused assignment • Dedicated team • Outcome • Learning • Any change in big picture? • Any missing other key learnings? • Recommendation to (not) continue and why
  • 29. Frank Dethier – Dev INNOVATION PROCESS LEARNING PROJECTS S P O R C 29 Sprint 2 and next sprints • Starting condition 1. (Updated) Big picture goal/vision 2. Learning you want to achieve in sprint 2 • Focused assignment • Dedicated team • Outcome • Learning • Any change in big picture? • Any missing other key learnings? • Recommendation to (not) continue and why
  • 30. Frank Dethier – Dev INNOVATION PROCESS LEARNING PROJECT PORTFOLIO S P O R C 30 “Doing the right things” by 1. Selecting projects 2. Prioritizing projects 3. Manage and follow-up of project portfolio Dev Dev Dev
  • 31. Frank Dethier – Dev INNOVATION PROCESS LEARNING PROJECT PORTFOLIO S P O R C 31 Overall budget and risk profile defined by your Innovation Strategy Include also Development/Marketing/Sales budget afterwards Dev Dev Dev
  • 32. Frank Dethier – Dev INNOVATION PROCESS LEARNING PROJECTS S P O R C 32 Create asap a business case that will release funds for ‘normal’ development Or ‘fail’ asap
  • 33. Frank Dethier – INNOVATION PROCESS LEARNING PROJECTS  LEAN STARTUP  The Lean Startup provides a scientific approach to creating and managing startups and get a desired product to customers’ hands faster based on key principles  Build-Measure-Learn  Validated Learning  Using well-defined process  Less relevant if your new innovations fall within current ‘scope’ of your business 33 S P O R C
  • 34. Frank Dethier – BUSINESS MODEL CANVAS 34 Key Partners Key Activities Key Resources Value Propositions Customer Relationships Channels Customer Segments Revenue StreamsCost Structure S P O R C
  • 35. Frank Dethier – INNOVATION PROCESS LEAN STARTUP 35 Problem/ Solution Fit Product (MVP) /Market Fit Scale • Value Proposition • Customer Segments 3 stages of a startup Do I have a problem worth solving? S P O R C Have I built something people want? How do I accelerate growth? • Cost structure • Revenue streams • Key activities & resources • Customer relationships
  • 36. Frank Dethier – INNOVATION PROCESS LEAN STARTUP 36 S P O R C Problem/Solution Product/Market Scale
  • 37. Frank Dethier – INNOVATION PROCESS LEAN STARTUP 37 S P O R C
  • 38. Frank Dethier – New & Existing Markets Trends Innovation challenges Dev Projects Ideas YOUR INNOVATION PROCESS S P O R C 38 Strategy Idea selection
  • 39. Frank Dethier – INNOVATION PROCESS EXERCISE  Teams of 2 people  Create Innovation Process v0.1 of your company  Separate or integrated from Development process?  What are your key elements?  Discuss within your team  Time foreseen: 30 min 39 S P O R C
  • 40. Frank Dethier – New & Existing Markets Trends YOUR INNOVATION PROCESS TRENDS S P O R C 40 Technology Trends Consumer Trends Legal Trends Industry Trends
  • 41. Frank Dethier – New & Existing Markets Trends YOUR INNOVATION PROCESS TRENDS S P O R C 41 How does your company deal with those trends? How do you create an opportunity of them? How do you guard yourself against it?
  • 42. Frank Dethier – YOUR INNOVATION PROCESS TECHNOLOGY TRENDS S P O R C 42 How does your company deal with those trends? How do you create an opportunity of them? How do you guard yourself against it?
  • 43. Frank Dethier – YOUR INNOVATION PROCESS CONSUMER TRENDS S P O R C 43 How does your company deal with those trends? How do you create an opportunity of them? How do you guard yourself against it? Changing the Self Quantified Self
  • 44. Frank Dethier – YOUR INNOVATION PROCESS INDUSTRY TRENDS 44 S P O R C How does your company deal with those trends? How do you create an opportunity of them? How do you guard yourself against it?
  • 45. Frank Dethier – New & Existing Markets Trends Innovation challenges Dev Projects Ideas YOUR INNOVATION PROCESS S P O R C 45 Strategy Idea selection
  • 46. Frank Dethier – YOUR INNOVATION PROCESS S P O R C 46 Strategy Top-down focus to organizationOrganization gives input to company strategy
  • 47. Frank Dethier – New & Existing Markets Trends Innovation challenges Dev Projects Ideas YOUR INNOVATION PROCESS S P O R C 47 Strategy Idea selection