creativity + innovation 1.10

Creativity + Innovation 1.10Kevin Popović, B.A., M.S.

© Kevin Popović, SDSU Creativity + Innovation

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Session 1.10

• Welcome• Roll, Admin• Discuss Reading• Game• Discuss Reading


• Game• Discuss Reading• Game• Review Projects• Assignment


Spring BreakA Game of Collaboration


“The Innovation Value Chain”Harvard Business Review

The Innovation Value Chain

Three groups of interest:• Idea Generation (50%)• Idea Conversion 30%)• Idea Diffusion (20%)

• 15:00 to discuss, 3:00 to present• Prep for Q&A (Quiz Score)



• All companies face obstacles• Everyone knows best practices• Why aren’t all companies better at

innovation?• Intuit (lots of ideas, none to market)• Procter & Gamble (develop internally)



• Presents innovation as a sequential 3-phase process

• Different companies face different innovation challenges

• If you can identify the value chain you can identify the weakest link



• Idea Generation• Idea Development • Diffusion of Developed Concepts



• Internal Sourcing• Cross-Unit Sourcing• External Sourcing• Selection• Development• Sharing the Idea



• A company’s capacity to innovate is only as good as the weakest link in its innovation value chain.

• The idea poor company• The conversion poor company• The diffusion poor company



Three groups of interest:• The Idea Poor Company (33%)• The Conversion Poor Company (33%)• The Diffusion Poor Company (33%)

• 5:00 to discuss, 1:00 to present• Prep for Q&A (Quiz Score)



• Viewing innovation as an end-to-end process rather than focusing on a part allows you to spot the weakness and strongest links.

• Discourages managers from reflexively importing innovation practices that address part of the chain but not necessarily the ones the companies needs help with.



• Centers attention on the weakest link, prompts to be more selective on what will work to address the problem area

• Helps managers realize a perceived innovation strength may be a weakness.

• People often gravitate towards the easiest area, leaving hardest for last or hoping it goes away.



The innovation value chain provides a framework for managers to sort out which approaches make the most sense for their companies.

Allows you to spot the strongest and the weakest link.



Quiz: “The Innovation Value Chain”Harvard Business Review


“Connect and Develop”Harvard Business Review

Connect and Develop

• Most companies are still clinging to the innovation model – their innovation must principally reside in their own four walls.

• What’s the challenge with this model?• What did they discover about P&G’s innovation landscape?• Open Innovation leverages one another’s (even

competitors) innovations assets: products, intellectual property, people.

• How did this impact P&G?


Connect and Develop

• How could Open Innovation impact your group projects?

• “Not Invented Here”• “Proudly Found Elsewhere”• Innovation Department now 7,500 P&G

employees + 1.5 non-employees.• Connect and Develop Innovation Model


Connect and Develop

• Connect and Develop Innovation Model• Understanding consumers needs, we could

identify promising ideas and apply our own R&D, manufacturing, marketing, purchasing.

• Better, faster, cheaper.• What were the results?• CEO #1 Concern: Sustained and steady top-line

growth.



“Chance favors the prepared mind.”The Osaka Connection

Connect and Develop

• Discover 2001: Japan-based tech entrepreneur with P&G discovers product in Osaka grocery store. Evaluates performance and finds it fits home care product and market criteria.

• Evaluate 2002: Tech entrepreneur sends samples to R&D for performance evaluation, posts product description and and evaluation for market potential to internal network.

• Launch 2003: Basotect is packaged as-is as Mr. Clean Magic Eraser.



Quiz: “Corporate New Venturesat Proctor & Gamble”

Harvard Business Review


“Corporate New Venturesat Proctor & Gamble”

Harvard Business Review

Assignment


• Read “Corporate New Ventures at Proctor & Gamble”

• Available in the reader

• Prepare for Quiz

Individual Project + Memo

• Apply what you have learned (50%)• Develop a creative product or service• Be novel, useful, have market potential

• Write 1-page memo mapping ideas to what you have learned in class that will insure effectiveness of your idea• Select a creativity exercise or technique, apply to your idea,

document.• 3:00 presentation of concept, explain thinking, sell your idea

(50%).


Design Thinking Group Project

• Groups of 3• Apply a design thinking approach to develop a new

product or service• 5:00 minute creative presentation• Include project overview (memo)• Grades = group presentation (50%, memo (30%),

individual evaluation (20%)• Survivor rules apply


creativity + innovation 1.10

Leadership & Management