Driving Innovation: Strategies for Success
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Innovation
What is Innovation?
Something original that breaks into a new market or society.
- Improving efficiency, effectiveness, and advantage
- Making an impact in the market
Why Innovate?
- Due to mass production in countries like China, companies are shifting their vision. To compete, they need to innovate their products.
- Environmental friendliness
Today's Musts
- Collaboration: Working with others
- Diversity
- Agile Thinking
- Creativity
- Technology
- Sustainability
- Customer-centricity
- Risk-taking
Innovation Manager Tools
- Communication
- Team Building
- Task Management: Teams, Skype
- File Management: Rules for uploading files
- Conception: Taking everyone into account
Innovation Tools
- Job to Be Done: Innovating according to the client's needs
- Expectations: Creating expectations about a product
- Ideal Final Result: Working with the goal in mind
- Brainwriting: 6-3-5. Write down ideas 3 times and rotate 6/5
- Scamper
- Random Stimulus: "What do you see here?" Bruno likes this a lot.
- Six Thinking Hats: Empathize with the hat you wear
Innovation Process
Steps
- Ask "Does it already exist?"
- If it doesn't exist, why not? Is there a true need for it? Does it solve a problem? To what would the innovation be compared?
- What is the perceived market? What is its profile? How large is it? Do potential customers readily understand what the innovation is or does?
Focus groups, online surveys, and personal interviews (tools to understand the steps)
Action
- Idea Generation
- Evaluation of an Idea: Transparency is key
- Concept Proof: Define KPIs; what are the positives and negatives?
- Pilot/Prototype: Testing
- Rollout/Series 0: Roll it out to the company
- Benefit Realization
Open vs. Closed Innovation
Open | Closed | |
---|---|---|
Source of Ideas | External sources (customers, suppliers, partners, and competitors) | Only internal sources |
Collaboration | Collaboration with external parties | Internal resources and expertise |
Intellectual Property | Sharing intellectual property | Protecting intellectual property |
Speed of Innovation | Faster | Slower |
Cost | Expensive | Cheaper |
Red & Blue Ocean
Red Ocean
- Compete in the existing market
- Beat the competition
- Exploit the existing demand
- Make the value-cost compromise
- Align the system with a strategy choice of differentiation or low cost
Blue Ocean
- Create uncontested market space
- Make the competition irrelevant
- Create and capture new demand
- Break the value-cost compromise
- Align the active pursuit of differentiation and low cost
Barriers to Innovation
- Fear of Failure
- Lack of Leadership
- Short-Term Thinking
- Lack of Resources/Capacity
- Lack of Collaboration
- No Time
- Lack of Focus
- Lots of Ideas, No Delivery to Market
- No Clear Process
- Lack of Urgency
Types of Innovation
- Incremental: "Upgrades" (e.g., Nike Air Max)
- Sustaining: Offers added value (e.g., iPhone)
- Disruptive: Technology or new business model (e.g., Zara's new model)
- Radical: Creates new markets (e.g., SpaceX, the cloud)