7 myths of business innovation
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The document discusses myths and solutions around business innovation. Some key myths addressed include that innovation just happens naturally, effective processes are not important, and experts are needed to drive innovation. The document argues instead that innovation must be intentionally made to happen, ineffective processes can hinder it, and diverse thinkers outside the norm are valuable. It provides solutions like rewarding failures, focusing on customer needs, opening dialogue, and ensuring the right portfolio of projects by deciding what not to pursue.
7 myths of business innovation
- 1. 7 myths of business Innovation And solutions for the future…
- 2. What is innovation? • Innovation is the process and outcome of creating something new, which is also of value. • Innovation involves the whole process from opportunity identification, ideation or invention to development, prototyping, production marketing and sales, while entrepreneurship only needs to involve commercialization (Schumpeter).
- 3. “A focus on cost-cutting and efficiency has helped many organizations weather the downturn, but this approach will ultimately render them obsolete. Only the constant pursuit of innovation can ensure long-term success.” —Daniel Muzyka, Dean, Sauder School of Business, Univ of British Columbia (FT/09.17.04)
- 4. The innovation process in 5 Steps (how to create the perfect woman..) 1.The objective 2.Quantity 3.Feedback 4.Integration 5.Deciding
- 5. The Hard Facts • 99% companies value innovation, 5% are innovative • The perception gap: 29% of companies think they had a major innovation in the last 6 months. 5% of consumer agree • The hard road from ideas to impact 85% of valuable ideas do not reach their full implementation
- 6. Innovation is not always an accident rapidly changing and increasingly uncertain In a world, it would be foolish to rely on innovation by accidental good fortune or occasional inspiration
- 7. The Innovation paradigm • It is about what we do behind closed doors • Innovation just happens • We need to reward innovation • It is about effective processes • We need experts • We need our brightest and best on the case.. • It is all about selecting the best ideas and doing more
- 8. These are comfortable, logical business ideas and what we have been taught…. But, they are not the whole story
- 9. It is about what we do behind closed doors It is about opening doors and listening
- 10. Conversations are the key driver of growth But we are afraid to manage or join them.
- 11. Articulat ed Needs Consume Unknown Unmet r needs Needs Insight Un- articulate d needs
- 12. Innovation just happens Innovation is something you make happen
- 14. Innovation is about • Being committed to better satisfying unmet/ unarticulated needs • Working to build insights • Staying focused on consumer (customer) value • Making it a habit
- 15. We need to reward innovation More importantly you need to reward good failures
- 16. The big innovation Paradox :Whoever Makes the Most Mistakes Wins Richard Farson & Ralph Keyes
- 17. “Beware of the tyranny of making Small Changes to Small Things. Rather, make Big Changes to Big Things.” —Roger Enrico, former Chairman, PepsiCo
- 18. “Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec
- 19. It is about effective processes Often it is about ineffective processes
- 20. “Ninety percent of what we call ‘management’ consists of making it difficult for people to get things done.” – Peter Drucker
- 21. 10 reasons why your best ideas come in the shower 1. You’re usually alone, with time to reflect. 2. Interruptions are rare. 3. Showering is a metaphor for “getting rid of the dirt” — the stuff that covers up what’s beneath. 4. Showering is a ritual. Lots of creative people like to have little rituals to get their head in the right place. 5. There’s not a lot of judgment or analysis going on in a shower. 6. Showering wakes up you. It makes you more alert. 7. Showering is a relaxing experience. With nothing to stress about, your mind is free to roam new territories. 8. It’s hard to check your iPhone or Blackberry in a shower. 9. There is no deliverable expected of you. 10.Not a lot of thinking is required to make it happen, which frees your mind to think about other things.
- 22. We need to have experts You need to find idea catalysts
- 23. Catalysts are the key to chemical reactions, the same is true in business
- 24. An opportunity: BMW sells their designers by the day Why: to build creativity… “Design is treated like a religion at BMW.” —Fortune
- 25. We need our brightest and best on the case.. Actually what you need is people that think different
- 26. Two Groups • Group 1: Best 20 agents • Group 2: Random 20 agents Have each group work collectively – When one agent gets stuck at a point, another agent tries to find a further improvement. Group stops when no one can find a better solution.
- 27. The IQ View 139 138 137 121 84 111 135 132 135 75 135 31 Alpha Group Diverse Group
- 28. The Toolbox View ABC ABD ACD AHK FD AEG BCD ADE BCD EZ BCD IL Alpha Group Diverse Group
- 29. “Bringing new members into the organization, even if they’re less experienced and less capable, actually makes the group smarter simply because what little the new members do know is not redundant with what everyone else knows.”
- 30. It is all about selecting the best ideas and doing more What you decide not to do is just as important
- 31. “Fail . Forward. Fast.” High Tech CEO, Pennsylvania
- 32. “Fail . Fail again. Fail better.” —Samuel Beckett
- 33. “With so many things to do and so many great ideas… what we decide not to do is infinitely more important than what we decide to do” – Steve Jobs
- 34. From myths to solutions… 7 ways to get started
- 35. Strategy Learning Insight Systems Go to Decision Market support Idea Idea Evaluation Catalyst Idea Building
- 36. It is about opening doors and listening
- 37. Consumer Shops Your Company Our involvement Training Set-up Support
- 38. It is about dialogue and hard listening… You can't just ask customers what they want and then try to give that to them. By the time you get it built, they'll want something new It is often about “golden questions” and “golden answers”
- 39. Innovation is something you make happen
- 40. systematic “Execution is a process of rigorously discussing how's and what's, tenaciously following through, and ensuring accountability.” —Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done
- 42. 7 Learning Build 5 Quality Identify 6 Winners Losers Idea 4 New Ideas In Market Funnel Innovation 3 Objectives Customer Speed 2 Insight 1 Business Objectives
- 43. Tools along the way Innovation Objectives Innovation Priorities
- 44. More importantly you need to reward good failures
- 45. How we could help… • Internal communication “How many bad ideas have you had this week ?“ • A system to publish and reward “good” bad ideas… (this can be fun..)
- 46. Often it is about ineffective processes
- 47. We could help… • Time in the field to visit customer and clients • Skunk work projects • Make people feel comfortable “wasting some time” • Ongoing surveys
- 48. You need to find idea catalysts
- 49. Idea catalysts • Shop people • The Dove brand manager or agency • Internal people (Crowdsourcing) • Other companies with similar issues (Fashion companies, make-up…etc) • And if you dare, exotic dancers
- 50. Thinking inside the box An example… What do … Roller blades, Ben and Jerry’s Ice Cream, Gourmet Jelly Beans, Space tourism have in common “Something children loved, and turned it into a more expensive form for adults…” “Ask the right questions, and the ideas will start to flow” Mihaly Csikszentmihalyi
- 51. Actually what you need is people that think different
- 52. Helping people think different • An understanding of the value of diversity (Training) • Different types of teams • Different rules for innovation teams
- 53. What you decide not to do is just as important
- 54. Research markets • 10 new product ideas ▫ Classic monadic concept with careful sampling vs. ▫ Predictive Market with a convenience sample of 500 people. • The crowd were asked ▫ to imagine they owned shares in all 10 ideas and decide which one they would immediately sell their shares in (and why) and ▫ which one they would double their shares in and why. • The results aggregated to mimic a top 2 box purchase intentions result
- 55. Conclusions Cheap crowds ≈ Expensive research Greater discrimination between ideas
- 56. Make innovation Think Different Central Magic Good ideas in Bad ideas out
- 57. What is the real danger ? Flavor of the month… • We will need resources • But no announcement of a big new innovation program/focus • Building enthusiasm for innovation from the bottom up
- 58. 58 Test Layout 3/30/2012