creativity + innovation 1.10
TRANSCRIPT
Creativity + Innovation 1.10Kevin Popović, B.A., M.S.
© Kevin Popović, SDSU Creativity + Innovation
CourseKey
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Please check-in.
Session 1.10
• Welcome• Roll, Admin• Discuss Reading• Game• Discuss Reading
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• Game• Discuss Reading• Game• Review Projects• Assignment
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Spring BreakA Game of Collaboration
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“The Innovation Value Chain”Harvard Business Review
The Innovation Value Chain
Three groups of interest:• Idea Generation (50%)• Idea Conversion 30%)• Idea Diffusion (20%)
• 15:00 to discuss, 3:00 to present• Prep for Q&A (Quiz Score)
© Kevin Popović, SDSU Creativity + Innovation
The Innovation Value Chain
• All companies face obstacles• Everyone knows best practices• Why aren’t all companies better at
innovation?• Intuit (lots of ideas, none to market)• Procter & Gamble (develop internally)
© Kevin Popović, SDSU Creativity + Innovation
The Innovation Value Chain
• Presents innovation as a sequential 3-phase process
• Different companies face different innovation challenges
• If you can identify the value chain you can identify the weakest link
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The Innovation Value Chain
• Idea Generation• Idea Development • Diffusion of Developed Concepts
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The Innovation Value Chain
• Internal Sourcing• Cross-Unit Sourcing• External Sourcing• Selection• Development• Sharing the Idea
© Kevin Popović, SDSU Creativity + Innovation
© Kevin Popović, SDSU Creativity + Innovation
The Innovation Value Chain
© Kevin Popović, SDSU Creativity + Innovation
The Innovation Value Chain
• A company’s capacity to innovate is only as good as the weakest link in its innovation value chain.
• The idea poor company• The conversion poor company• The diffusion poor company
© Kevin Popović, SDSU Creativity + Innovation
The Innovation Value Chain
Three groups of interest:• The Idea Poor Company (33%)• The Conversion Poor Company (33%)• The Diffusion Poor Company (33%)
• 5:00 to discuss, 1:00 to present• Prep for Q&A (Quiz Score)
© Kevin Popović, SDSU Creativity + Innovation
The Innovation Value Chain
• Viewing innovation as an end-to-end process rather than focusing on a part allows you to spot the weakness and strongest links.
• Discourages managers from reflexively importing innovation practices that address part of the chain but not necessarily the ones the companies needs help with.
© Kevin Popović, SDSU Creativity + Innovation
The Innovation Value Chain
• Centers attention on the weakest link, prompts to be more selective on what will work to address the problem area
• Helps managers realize a perceived innovation strength may be a weakness.
• People often gravitate towards the easiest area, leaving hardest for last or hoping it goes away.
© Kevin Popović, SDSU Creativity + Innovation
© Kevin Popović, SDSU Creativity + Innovation
The Innovation Value Chain
The innovation value chain provides a framework for managers to sort out which approaches make the most sense for their companies.
Allows you to spot the strongest and the weakest link.
© Kevin Popović, SDSU Creativity + Innovation
© Kevin Popović, SDSU Creativity + Innovation
Quiz: “The Innovation Value Chain”Harvard Business Review
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“Connect and Develop”Harvard Business Review
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Connect and Develop
• Most companies are still clinging to the innovation model – their innovation must principally reside in their own four walls.
• What’s the challenge with this model?• What did they discover about P&G’s innovation landscape?• Open Innovation leverages one another’s (even
competitors) innovations assets: products, intellectual property, people.
• How did this impact P&G?
© Kevin Popović, SDSU Creativity + Innovation
Connect and Develop
• How could Open Innovation impact your group projects?
• “Not Invented Here”• “Proudly Found Elsewhere”• Innovation Department now 7,500 P&G
employees + 1.5 non-employees.• Connect and Develop Innovation Model
© Kevin Popović, SDSU Creativity + Innovation
Connect and Develop
• Connect and Develop Innovation Model• Understanding consumers needs, we could
identify promising ideas and apply our own R&D, manufacturing, marketing, purchasing.
• Better, faster, cheaper.• What were the results?• CEO #1 Concern: Sustained and steady top-line
growth.
© Kevin Popović, SDSU Creativity + Innovation
© Kevin Popović, SDSU Creativity + Innovation
“Chance favors the prepared mind.”The Osaka Connection
Connect and Develop
• Discover 2001: Japan-based tech entrepreneur with P&G discovers product in Osaka grocery store. Evaluates performance and finds it fits home care product and market criteria.
• Evaluate 2002: Tech entrepreneur sends samples to R&D for performance evaluation, posts product description and and evaluation for market potential to internal network.
• Launch 2003: Basotect is packaged as-is as Mr. Clean Magic Eraser.
© Kevin Popović, SDSU Creativity + Innovation
© Kevin Popović, SDSU Creativity + Innovation
© Kevin Popović, SDSU Creativity + Innovation
© Kevin Popović, SDSU Creativity + Innovation
© Kevin Popović, SDSU Creativity + Innovation
Quiz: “Corporate New Venturesat Proctor & Gamble”
Harvard Business Review
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“Corporate New Venturesat Proctor & Gamble”
Harvard Business Review
Assignment
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• Read “Corporate New Ventures at Proctor & Gamble”
• Available in the reader
• Prepare for Quiz
Individual Project + Memo
• Apply what you have learned (50%)• Develop a creative product or service• Be novel, useful, have market potential
• Write 1-page memo mapping ideas to what you have learned in class that will insure effectiveness of your idea• Select a creativity exercise or technique, apply to your idea,
document.• 3:00 presentation of concept, explain thinking, sell your idea
(50%).
© Kevin Popović, SDSU Creativity + Innovation
Design Thinking Group Project
• Groups of 3• Apply a design thinking approach to develop a new
product or service• 5:00 minute creative presentation• Include project overview (memo)• Grades = group presentation (50%, memo (30%),
individual evaluation (20%)• Survivor rules apply
© Kevin Popović, SDSU Creativity + Innovation