innovation 3 presentation 12 10 10
DESCRIPTION
Presentation given at the Innovation Cubed Conference 12/8-10/11 in Orlando, FLTRANSCRIPT
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Quality Ingredients CorporationQuality Ingredients Corporationan employee owned companyan employee owned company
Changing Your Business Model to Changing Your Business Model to Mine Value from Technologies Mine Value from Technologies
Outside Your Core CompetenciesOutside Your Core Competencies
www.QIC.us
Kurt C SchneiderKurt C SchneiderVice President – Product and Process Innovation CenterVice President – Product and Process Innovation Center
Friday, December 9, 2010Friday, December 9, 2010
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www.QIC.us
…….Make Money Doing Stuff You .Make Money Doing Stuff You Don’t Do TodayDon’t Do Today
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What Will We Accomplish?What Will We Accomplish?
Identify Challenges in Changing a Identify Challenges in Changing a Business ModelBusiness Model
Readiness to Look Beyond the CoreReadiness to Look Beyond the Core
Pinpoint Opportunities to Incorporate Pinpoint Opportunities to Incorporate InnovationInnovation
www.QIC.us
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What This is What This is NotNot
It is It is NOT NOT an Open Innovation an Open Innovation Platform/ProgramPlatform/Program
It is It is NOT NOT a supplier engagement a supplier engagement programprogram
It is It is NOT NOT a website designed to solicit a website designed to solicit ideas or solutions to internal ideas or solutions to internal challengeschallenges
www.QIC.us
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What This What This ISIS
It It ISIS a method to determine where a method to determine where value lies outside your core value lies outside your core competenciescompetencies
It It ISIS a program to utilize internal a program to utilize internal resources to locate external valueresources to locate external value
It It ISIS a system designed to force an a system designed to force an organization to look outside it’s organization to look outside it’s comfort zonecomfort zone
www.QIC.us
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Open InnovationOpen Innovation
“…“…a a paradigmparadigm that assumes that firms that assumes that firms can and should can and should use external ideasuse external ideas as as well as internal ideas, and internal and well as internal ideas, and internal and external paths to market, as the firms external paths to market, as the firms look to advance their technology…(it) look to advance their technology…(it) combines internal and external ideas combines internal and external ideas into architectures and systems whose into architectures and systems whose requirements are defined by a requirements are defined by a business modelbusiness model.”.”
Dr. Henry Chesbrough – Open Innovation: The New Imperative for Dr. Henry Chesbrough – Open Innovation: The New Imperative for Creating and Profiting from TechnologyCreating and Profiting from Technology
www.QIC.us
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CultureCulture
CorporationCorporation
Amoeba ModelAmoeba Model
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Using External Ideas to Using External Ideas to Change Your Business ModelChange Your Business Model
?
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Culture – The Open Innovation PyramidCulture – The Open Innovation Pyramid
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Identify Challenges in Changing a Business Model
5. Immersion Innovation 4. External Innovation
3. Internal Innovation
2. Cross-functional Creativity
1. Silos of Creativity
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ProductProduct 1- Manufacture1- Manufacture 2 -Broker/Distributor2 -Broker/Distributor
ServiceService 3 -Sole Provider3 -Sole Provider 4 -Third Party Contracted4 -Third Party Contracted
www.QIC.us
Readiness to Look Beyond the Core
A business model describes the rational of how an organization creates, delivers, and captures value - economic, social, or other forms of value.
Product Service
Buy
Make
1
4
3
2
The Business ModelThe Business Model
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www.QIC.us
Readiness to Look Beyond the Core
Product Service
Buy
Make
1
4
3
2
The Amoeba Business Model
X possible combinationsX possible combinations Small companies reside in one boxSmall companies reside in one box Larger companies reside in many Larger companies reside in many
boxesboxes
Easier for smaller Easier for smaller companies to make the companies to make the leap to a new business leap to a new business modelmodel
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CompositionComposition Customer ComponentCustomer Component
Sales, Sales, MarketingMarketing, Market Research, Market Research Technical ComponentTechnical Component
R&DR&D, Engineering, Project Management, Engineering, Project Management Internal ComponentInternal Component
OperationsOperations, Finance, Purchasing, Finance, Purchasing
www.QIC.us
Readiness to Look Beyond the Core
The Innovation Team Concept“Company Within a Company”
Product Service
Buy
Make
1
4
3
2
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Opportunities for InnovationOpportunities for Innovation
www.QIC.us
TaskProdicize a ServiceServicize a Product
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Opportunities for InnovationOpportunities for Innovation
www.QIC.us
Identify Challenges in Changing a Business Identify Challenges in Changing a Business Model Model – – Open InnovationOpen Innovation
Readiness to Look Beyond the Core Readiness to Look Beyond the Core – – Company within a CompanyCompany within a Company- The Amoeba Business Model- The Amoeba Business Model
Pinpoint Opportunities to Incorporate Pinpoint Opportunities to Incorporate Innovation Innovation – – Prodicize a Service or Servicize a ProductProdicize a Service or Servicize a Product
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Quality Ingredients CorporationQuality Ingredients Corporationan employee owned companyan employee owned company
Changing Your Business Model to Changing Your Business Model to Mine Value from Technologies Mine Value from Technologies
Outside Your Core CompetenciesOutside Your Core Competencies
www.QIC.us
Kurt C SchneiderKurt C SchneiderVice President – Product and Process Innovation CenterVice President – Product and Process Innovation Center
Thank YouThank You