Introducing

Business Creativity and Innovation

presented by

EXCALIBUR(UK)LTD

Presentation Content

1. What is creativity and innovation ?

2. Need for innovation

3. Barriers to innovation

4. Innovation systems

5. Scimitar and Shield

Definition

INNOVATION=

NEWBUSINESS

CREATION

Why Companies Should Innovate

Rationalisation vs. Innovation

What Is Innovation?A Complex and difficult Management Process

PROBLEMS

Needs ResearchMeans Development

Idea GenerationConcept Development

Concept EvaluationProject Development

Customer Trials

Launch

Commercial Development

Product Development

VIABLE NEW BUSINESS

10 Steps toInnovation

Barriers to Innovation

Whatever can go wrong

Will go wrong

1. Sourcing Ideas for Innovation

Some organisations find it difficultTo generate relevant new ideas

And . . . You have to play the numbers game

2. The Processing of Ideas

CONCEPT

DEVELOPMENT

AND LAUNCH . .

3. Financing New Business Venturing

Developing

Budgeting

And

Control

4. Timing Development and Launch

Don’t give me that!What I need is growth . . .NOWSALES

Controlling DevelopmentAnd Launch Timing

5. Marketing ProblemsDoes it satisfy the Need?

• Does it go significantlyBeyond conventionalPerformance?Will our clients use it?

Misunderstanding the Market

6. People Problems

GETTING THE PSYCHOLOGY RIGHT

The Abominable No Man

Ten good reasons why not

Destruction of ideas

Fear of change

Why Bother?Shed a little light on the need to change and innovate

• No organisation can stand still in a competitive environment

Basic Systems for Improving Innovation

Just as there are proven systems forincreasing cost efficiency in existing business

There are proven systems for increasingcost efficiency in Innovation

Tasters for Scimitar Systems

1. SCIMITAR Business Modelling- Idea Generation Model

2. Creative Visualisation- Creative Psychology

3. SCIMITAR Appraisal Systems- Three Stage Assessment

First Management System

ThreeThree DimensionalDimensionalIntegrative

BusinessBusiness ModellingModelling

SCIMITAR Modelling

Three Dimensional Integrative ModellingMARKETS SERVED

RESOURCESUSED

PROCESSESAPPLIED

MR P

ALL EXISTING BUSINESSIS MODELLED AS FILLED CUBES

M

P R

Example of SCIMITAR Model – Café 3D

FRYGRILL

ROAST

BAKE

PROCESSES

POTATOESFISHMEATPOULTRY

RESOURCES

BUSINESS LUNCHES

SCHOOLKIDS

EVENING DINERS

SPECIAL PARTIES

MARKETS

SEARCH FOR UNUSUALAVAILABLECOMBINATIONS

Example of SCIMITAR Model – Café 3D

FRYGRILL

ROAST

BAKE

PROCESSES

POTATOESFISHMEATPOULTRY

RESOURCES

SCHOOLKIDS

BUSINESS LUNCHES

EVENING DINERS

SPECIAL PARTIES

MARKETS

SEARCH FOR UNUSUALAVAILABLECOMBINATIONS

Three Dimensional Integrative Modelling

M

P RA

BC

D

Theoretical vs. Practical

•Larger

•Derivative Axes

•Practical Axes

• A void within the Company Model represents availableunexploited options• Not all voids are meaningful - search each• The company has access to all items on all 3 axes within its model

Company Opportunities – Integrative Growth Points

ATTRIBUTES?

?

APPLICATIONS

A

BC

D

APPROACHES

FINISHED FILES

ARE THE RESULT OF

YEARS OF SCIENTIFIC

STUDY COMBINED WITH THE

EXPERIENCE OF YEARS

FINISHED FILES

ARE THE RESULT OF

YEARS OF SCIENTIFIC

STUDY COMBINED WITH THE

EXPERIENCE OF YEARS

Creative SearchingLOGIC ALONE CANNOTSOLVE ALL BUSINESSPROBLEMS . . .

Nor can logic alone find allA company’s OPPORTUNITIES

The need for a Creative Approach

Mind Sets

PROBLEM

Habitual Thinking

Pre-conceived ideas lead toForegone conclusions

The Spark ofInsight

Company Mind Sets can prevent Creativity

Mental Process

Left Brain

LOGIC

Right Brain

CREATIVITY

Important !!!During Model Search

SUSPEND

JUDGEMENT

Do not challenge other team members’ ideas. . . Only add to them so as to make improvements

Separate Idea Generation from Idea Assessment

Selection ProceduresHow to locateWinnable Nuggets . .

12 Nuggets in a Mountain of stones

PANNING FOR GOLD

Scimitar Assessment Stages

1. QUALITATIVENew

RelevantActionable

2. RISK ANALYSISProcurement Risk

Marketing Risk

3. V.A.S.T.Venture Appraisal & Selection Technique

Selection of a Balanced Portfolio

Concept Quantification- V.A.S.T.1. How much will the concept cost?

What capital cost is involved?What development cost is involved?

What additional revenue cost is involved?

2. How much will the concept yield?How big is the market?

What % will be captured?What margin will be achieved?

3. What is the Yield to Cost Ratio?What return on capital will be achieved?

What will the payback period be?

Venture Appraisal & Selection Technique

V.A.S.T. GraphYIELD

COSTAcceptance Level =

Pay

Back

LOW RISKVENTURES

GROWTHPOINTS

MAJORVENTURES

Final Selection – Balanced Portfolio of 12

Venture Justification ReportVENTURE1. The Opportunity2. The Product3. Resources Used4. The Process Applied5. The Market Served6. The Likely Sales7. Project Costing8. Profit Potential9. The Unknowns10. Development Needed – to answer the unknowns11. Conclusions12. Recommendations

Final Short List Presentation

Business Modeling

Furniture manufacture:Materials of construction

Function or what it used for

Where it is used

Ronseal Testimonial

Smaller Companies

Additionally many hundreds of smaller companies have attended this programme.

People Can Be Divided Into 3 Groups:

Those who MAKE things happen

Those who WATCH things happen

Those who ask ‘WHAT HAPPENED’

WHICH ONE ARE YOU?