innovation practice engaging the organization in top-line revenue growth biomedical engineering and...
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INNOVATION PRACTICEENGAGING THE ORGANIZATION IN
TOP-LINE REVENUE GROWTH
BIOMEDICAL ENGINEERING AND ENTREPRENEURSHIP
SEPTEMBER 25, 2013
What we know...
CEOs have recognized an innovation imperativeIf you want to grow your business, you need to innovate
“The only future source of profit the only reason to invest in companies in the future is the ability to innovate and their ability to differentiate.”
- Jeffery Immelt, GE
Relying on sporadic idea generation,thinking employees will figure it out on their own, ormaking it the sole responsibility of a separate small team…
…isn’t the way to outperform your competition
Instead, you need to effectively infuse and harness an innovation - based competency throughout your enterprise
What we know...
What is your Innovation Effectiveness?
The return on innovation ROI2
varies among companies within their industries...
Example: Best performers in the
consumer healthcare industry
2Xindustry average
10Xworst performers
Source: Booz Allen Hamilton
A few ideas drive most of the new profits
A study of 108 new product launches by the authors of Blue Ocean Strategy revealed the positive revenue and profit impact that came from offerings that could be characterized as truly “innovative.”
Innovations that were not all that innovative
Innovations that created a new “market space”
The True Growth Driver
Expanding your innovation potential
Individuals Enterprise
...is central to bringing the innovation imperative to life in your organization
Value Creation: 1. Multi-dimensional Research2. Strategy Formulation3. Ideation & Design
Value Capture: 4. Portfolio development & management5. Intellectual Property6. Processes7. Financial Management
Value Delivery:8. Organizational Development9. Leadership & Culture10. Incentives & Expectations11. Collaboration & Outsourcing
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Holistic Innovation Covers 3 Areas
Key learning
What we’ve learned at Fisher about Value Creation recognizes what happens before and after generating an idea are also critical to success in innovation.
For that reason, our approach to Innovation Strategy Training begins before and extends beyond our best practices in Ideation Training, captured in a framework we call SPARK.
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S P A R K
SPARKBegin with choiceful strategies and a longer view and evaluate options against a bigger picture
STRATEGYBeginning with focus andaligning with corporate strategy
RAPID DEVELOPMENTConcepts, prototypes and revenue models
PROBLEMS &ANSWERSUncovering customer wants and needs and their solutions
KILLER IDEASKilling ideas to get tokiller ideas
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P A
R
K
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Start with strategy Instead of a ‘cold start’, teams ground their work in strategic relevance: determining areas of strategic importance or disruption to the future of the company, customer, or brand.
S
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Problems worth solving Client’s have business objectives; innovation begins with uncovering and identifying customers’ unmet needs, future dreams and problems within selected strategies. This results in problems worth solving and opportunities for incremental and radical innovation.
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Answers for the market Teams use brainstorming techniques as well as participatory design methods and tools to generate early ideas and initial concepts based on opportunities and problem statements.
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Rapid developmentChallenge ideators to develop ideas into concepts. Ideas that come out of brainstorming usually require further development to become concrete. Often everyone is excited about an idea but can’t define what “IT” might look like or how it might make money. Developing a minimally viable prototype makes ideas more tangible and begins to tackle the design and engineering aspects.
R
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K
Killing ideas to get to killer ideas Consider what criteria to use to evaluate the value of ideas to the company including financial and strategic elements. Build better ideas in an iterative process and consider a portfolio across 3 horizons of growth.
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Ethnography+Behavioral Psychology
= Empathology™
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Patients
Doctors, nurses
Doctors and patients
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UNCOVERING DISCONNECTSWith a connected POS
CUSTOMERS AS PARTNERS Codevelopment
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Disruptive innovation
SINGLES GAME CHANGERSLine extensions New ideas/marketsPredictable RiskObvious/ Stretch/easier to understand imaginationShort-term revenue Initially, lower profitLow differentiation Breakthrough
Do customers always want more?
Computer and iPad(sorry, Verizon ads)
Disruptive innovation
Disruptive innovation
Blockbuster. Bigness. Profitability. Category driver of breadth of titles. Best customers. Badwill.
Redbox, Netflix
Does more= features or value?
Two views of change
ResistorsChallengers
See RiskSee Potential
Ask Why?Ask Why not?
Already is Could be
Too small/nicheOpen space
Best customersNew customers
Maintain positionNew order
How can we see opportunity in change?
Trends are a way to look at what’s coming, and actively speculate on the opportunity that could be available.
We look at two types
TRENDS in an industryNear-term opportunities, 12-24 months
Illustrate with examples for contextGo deep: implications, opportunities
We look at two types
TRENDS that challenge an industryNo one has combined peanut butter
and chocolate yet
With an exercise called TRENDstorming
coffee
How could you sell coffee for $100/lb
in regular grocery stores?
Single households are more prevalent. Single parents, whether single from the start or from divorce, are managing work and parenting alone, or students move between two households in shared custody situations.
SOLO: LIVING ALONEtrend
1. TREND
trend
SOLO: LIVING ALONE: Single households are more prevalent
Keurig Once you buy the machine, you’re hooked into the k cups. At $1/serving, that’s about $87 a pound
coffee1 TRENDstorming
KEURIG
Fractional ownership or usage of services/things you don’t need all the time.
COLLECTIVE CONSUMPTION
trend
2. TREND
ZIPCAR
Seeking out and taking health action outside of traditional pharmaceutical solutions and Doctor advice.
DIY HEALTHtrend3 TREND
WEB MD
Thanks to the continued explosion of touchscreen smartphones, tablets, and the “cloud’, the screen culture will be not only more pervasive but more personal, more immersive and more interactive than ever.
SCREEN CULTUREtrend
4. TREND
PANDORA
The practice of obtaining needed services, ideas, or content by soliciting contributions from a large group of people, and especially from an online community, rather than from traditional employees or suppliers.
CROWDSOURCINGtrend
5. TREND
KICKSTARTER
Will coins and notes completely disappear in 2013. No. But a cashless feature is (finally) upon us, as major players such as MasterCard and Google work to build a whole new eco-system of payments, rewards and offers around new mobile technologies.
trend CASH-LESS
6. TREND
SQUARE
Consumers continue to hunt for deals and discounts, but they will do so with relish. Deals are now about more than just saving money; it’s about the thrill, the pursuit, the control, and the perceived smartness, and thus a source of status too.
trend
7. DEALER CHIC
TREND
GROUPON
Turning tasks over to computers and using systems, without assistance from a person, so that continuous attention is not required, or to improve performance of humans.
AUTO-PILOT &ROBOTICS
trend8 TREND
SELF-DRIVINGCARS
DA VINCI,BIONIC HANDS
the manipulation of matter on an atomic and molecular scale, often with a technological goal of fabricating macroscale products.
NANOTECHNOLOGYtrend9 TREND
“NANO-BEES”
the measurement of personal performance metrics, against goals or benchmarking, with the ability to share with others. Consumers take advantage of new technologies and apps to discreetly and continuously track, manage and be alerted to any changes in their personal health.
QUANTIFIABLE MEtrend10 TREND
NIKE FUELBAND
It’s never been easier for savvy consumers to
resell or trade in past purchases, and unlock the
value in their current possessions. Trading in is the
new buying.
RECOMMERCEtrend11 TREND
EBAY