JPK

Gro

up

Product Intelligence & Experience SummitSeptember 20-21, 2017  •  Chicago, IL

Process, Growth & Innovation

September 20, 8:30 am

View presentation online at: https://jpkgroupsummits.com/attendee2/

Presenter: Dr. Craig Fleisher – Aurora WDC

Gain perspective on innovative intelligence & growth frameworks, new product development processes & discover how to best find success

Craig is focused on how to enhance and lead insight-related activities in business; developing the sensemaking/-giving culture, capabilities and processes that result in

superior analysis, actionable decisions and market/stakeholder success. For more than 25 years, his thought-leading expertise has been heavily cited in leading intl. media,

publications and shared globally with many associations, public bodies, think tanks, as well as top companies including, among others, 3M, Bell, BHP, CIBC, EDS, ESSO, GE,

GM, IBM, J&J, Labatt, Levi Strauss, Merck, P&G and TSX.

1

Mastering Intelligence-driven Innovation for New Products/Services DevelopmentPrepared especially for …

2017 Product Intelligence & User Experience Summit

Chicago, IL, Sept. 20, 2017

ESSENTIAL… COMMITTED… PERCEPTIVE…

Dr. Craig S. Fleisher

About Your Presenter

30 year background in Business, Competitive & Market (BC&M) Intelligence

Former SCIP President, BOD member, CI Foundation Chair, Jnl of CI & Management Editor,

Teaching exec/MBA courses at universities in AU, CA, CH, CN, EU, FI, FJ, JP, NZ, SL, UK, US, & ZA among others, etc.

Prior Biz school dean, University Research Chair, Professor of Management, MBA Director

Advise many top brands globally

3rd decade researching intelligence practices

Author of 14 books, scores of articles

Best known for my work on intelligence analysis

“One doesn’t get to the future first by letting

someone else blaze the trail.”

Competing for the Future Gary Hamel and

C.K. Prahalad

“Value innovation (i.e., simultaneously pursuing

differentiation for buyers + low cost for your business) is the cornerstone

of blue ocean strategy. We call it value innovation because instead of focusing on beating the competition, you focus on making the competition irrelevant by creating a leap in value

for buyers and your company, thereby opening up new and uncontested market space.”

Blue Ocean Strategy

by Kim & Mauborgne

“Innovation involves the deliberate application of information, imagination and initiative in deriving greater or new values from resources.”

BusinessDictionary.Com

The Genesis of My Research

Companies frequently fail at NPD/NSD. Failures often occur in the “fuzzy front end” (FEI).

Some FEI failures are due to failures to develop intelligence about customers, needs, functionality, markets, and technology ecosystems.

Though we have seen recent innovations in developing or employing FEI research methods, the range used is still too narrow, misses on capturing key insights.

Many intelligence-based methods can be applied to improve the probability of FFE & NP/SD success.

FEI

The activities that take place before a product

development process (PDP) has been established.

The “Fuzzy” Front End

Solutions

Ideas

Problems

R&DPrototyping/

Adjusting

Feasibility/

Pre-Marketing

The Business End

Plan

Build

Evaluate

The “Messy” Back EndThe Product Management End

SunsettingCustomer Support &

MaintenanceDelivery

Sales + Marketing

The Difficult Innovation Process inNew Product/Service Development (NP/SD)

The Innovation Funnel Meetsthe Intelligence Practitioner

1000s of Possible Business Ideas

100s of Ideas that Fit Your Capabilities

10s of Ideas that Fit Strategic Interests

Several Ideas that Users are Demanding

A Few Ideas that Users Will Pay For

A Couple Ideas that Will Scale

The 1 Idea that Became a Great Success

Ideation

Market & Tech Evaluations

Product Development

&

Trials

Whole PD

Scale Up

Commercialization

6

Intelligence-Driven Innovation

The intelligence activities that take place and support decisional progress at

every stage of the innovation process.

Opportunities

(Trends)

Crowdsource, Open Innovation, Patents,

Suggestion Systems, 3rd

Parties, etc

Desk research, Partners, Proprietary Networks,

RFPs, Suppliers, etc

Executive Champions, Skunkworks, Internal Bidding Models, etc

Customer experience, External Bidding Models, User Experience, Voice of

the Customer, etc.

Benchmarking, Biz Model Canvas,

Customers, Market Measures, etc.

Operations Specialists, Partners, Purchasing

agents, Suppliers, etc.

Business Unit Executives, NPSD

Champions, C-suite, etc.

Intelligence Propels the 10 Essentialsof Strategic Innovation

1. Innovation has to be integrated at the core of the strategy, as a pivotal, visible corporate value –continuously focused and managed.

2. Core competencies – explicity outline the linkages between your L/T strategic goals and R&D/innovation investments and technology plans/aims

3. It should move your organization from balancing or optimizing your business to creating new business and market spaces

4. You’ll need to develop cross-functional innovation and/or insight teams (with R&D’s participation, of course, but not only theirs)

5. Stimulate participative management, a high degree of delegation & responsibility, collaborative teamwork, and employee engagement (an innovative HRM style)

Intelligence Propels the 10 Essentialsof Strategic Innovation (cont.)

6. Continuous development of industry/market foresight– actively monitoring and exploring emerging trends, developing alternative futures and scenarios

7. It’s an inside-out, open process of interacting withcustomers, prospects, suppliers, partners, competitors, staff

8. Balance supply-pushed (new technologies) withdemand-led (based on CX/UX, market requirements) approaches – directly involve suppliers and customers

9. Design intelligent systems for ideas assesment and prioritization of detected/selected opportunities

10. Space – innovation teams need dedicated space (-s) to work and collaborate

“Successful innovators analyze the patterns of innovation in their industry. Then they make conscious, considered choices to innovate in different ways.”

Ten Types of Innovation

Larry Keeley

Intelligence Applies to All Types of Innovation

Category Type Key Intelligence Questions Examples

Marketing New marketing method involving significant changes in product design or packaging, placement, promotion or pricing

• What channels to use?• What features to include?• What forms should it take?• What price to set?

• Digital downloading• Dynamic pricing• New branding• Use of social media

Organizational Implementation of a new organizational method in the firm’s business practices, workplace organization or external relations

• Should we adopt new practices?• Can/should we re-structure?• Do it internally vs. outsource?• What’s the best business model?

• Alliances w/ universities• Best practices database• Drafting new policies• Organizing new self-regulatory

body

Product Introduction of a good or servicethat is new or significantly improved w/r/t its characteristics or intended uses

• How do you design the offering?• What should it include?• What functionality will it have?• Which customer segments will prefer it?

Should we target?

• 3D Printing• ABS Braking• Breathable Fabrics• GPS Nav Systems

Process A new, improved operational, production or delivery method

• How to make it sustainable? • How/where to cut out steps? • How to decease unit costs?• What can be automated?

• Asynchronous training• Bar Coding• CAD• GPS tracking

Spotting Disruptive Innovation

Sustaining InnovationsBetter Products Brought to Established Markets

Low-End DisruptionsTarget Overshot Customers with a Lower Cost Business Model

New-Market DisruptionCompetes Against Non-consumption

DifferencePerformanceMeasure

TimeNon-consumers or Non-consuming Contexts

Performance

“In what ways can intelligence methods and processes contribute to reducing the VUCA experienced by organizations during all

stages in the NP/SD process?”

Central Research Question

Classical Approachto NP/SD

Intelligence-driven Innovation (IdI) Approach

1. Analysts:

Their Educational

Backgrounds

- engineering

- marketing

- new product planning

- single disciplines/majors

- the traditional sciences

- communication

- cross-disciplinary/dual majors

- data sciences

- intelligence studies

- liberal arts

2. Analysts: Their Functional Backgrounds

- functional silos

- marketing

- product engineers

- single discipline data teams

- cross-disciplinary data teams (eg, M&A)

- crowd-sourced

- insight teams

- subject matter expert networks

3. Nature of Data Utilized

- existing products./services logs

- heavily quantitative

- legacy records

- off-line testing

- past customer behavior structured

- traditional/classic experiments

- creative design

- heavily qualitative

- mobile/recorded

- real-time experiments/field testing

- semi- and unstructured data

- socially generated

4. Degree of Change Achieved

- additive

- functional improvements

- one-offs

- refinements of existing products

- disruptions

- exponential

- field or market changers

- revolutionary

5. IT and Systems Support

- assigned per project

- closed/proprietary platforms

- data mining techniques

- enterprise data warehouses

- fixed cost investments

- collaborative

- customized insight portals

- fusion centers

- platforms

- variable/marginal cost investments

* (Fleisher & Blenkhorn, PDMA 2016 - Atlanta)

Intelligence-driven Innovation or IdI *

Classical Approach to NPD Intelligence-driven Innovation (IdI) Approach

6. Methods Used to

Collect Data

- automated mobile collection

- focus groups

- internal sales records

- purchase behavior data records

- sensors/smart devices

- targeted web-based techniques

- computer-assisted phone interviews

- ethnographic interviews/observation

- face-to-face interviews (developing areas.)

- focus groups

- social communication platforms

7. Nature of Analysis

Methods Used

- those taught in business and engineering

schools, e.g., SWOT,

voice of the customer (VOC), user experience

(UX), traditional statistical methods, data

mining, web analytics, etc.

- socialized, cross-functional, collaborative,

synchronous, and/or interactive methods; e.g.,

competitive simulations, customer journey mapping,

red/blue teaming, mind mapping

war-gaming, etc.

8. Nature of Planning - grand visions

- longer cycle

- set cycles

- strategic

- agile experimentation

- iterative cycles

- opportunistic

- shorter cycle

9. Organizational

Structure

- business unit-based

- NPD unit

- permanent

- silos

- agile/rotating

- cross-functional

- fluid structures

- insight teams

10. Timing Considerations & Project Time Frame

- deliberate

- must pass stage gates

- planned

- show results next quarter/year

- agile

- longer-term, 2 cycles or more in future

- opportunistic

- rapid production of preliminary results

Intelligence-driven Innovation or IdI *

* (Fleisher & Blenkhorn, PDMA 2016 - Atlanta)

Idea-driven InnovationIntelligence-based Analysis Methods

A Dozen Useful Intelligence-based Analysis Methods Underlying

1) Idea-driven FEI

1. Alternative Futures

2. Blue Sky Thinking

3. Brainstorming | Brainwriting

4. Convergent Thinking

5. Customer Journey Mapping (CJM Canvas)

6. Customer Experience (Cx) Maps

7. Divergent Thinking

8. Idea Management Systems

9. Mind Mapping

10. Red/Blue Teaming

11. Shadowing

12. Simulations/GamesSources: Fleisher & Blenkhorn, 2016, PDMA Atlanta; Fleisher, IJTIP, 2006; Fleisher & Ashton, CTI, 2009; Fleisher, CTI, 2009

A promising business idea must have the

following characteristics:

• Relevant (fulfill customers’ needs, or solve their problems)

• Innovative

• Clear Focused

• Unique

• Profitable (in the L/R)

Opportunity-driven InnovationIntelligence-based Analysis Methods

A Dozen-based Key Intelligence-based Analysis Methods Underlying

2) Opportunity-driven FEI

1. Blue Ocean Value Innovation Thinking

2. Design Thinking

3. Ethnography

4. Market Opportunity & Sizing

5. Product Life Cycle

6. Product Lines and Markets

7. Road Mapping

8. Scenario Thinking

9. S-curve mapping | Tech Life Cycle

10. Strategic Relationships (for M&A)

11. Technology Scouting

12. Trend Analyses

Sources: Fleisher & Blenkhorn, 2016, PDMA Atlanta; Fleisher, IJTIP, 2006; Fleisher & Ashton, CTI, 2009; Fleisher, CTI, 2009

A business opportunity is a demonstrated concept that generates on-going income. It has been researched, analyzed, refined and packaged into a ready-to-launch promising venture. It can be sold, unlike many ideas.

Preliminary Research Results (thru 08/17)

1. When companies apply IdI, they generate a higher volume of actionable insights.

2. The use of IdI increases the likelihood that ideas will receive higher levels of executive investment.

3. IdI results in a higher percentage of ideas that make it to subsequent parts of the innovation process.

4. IdI introduces new techniques in data collection and analysis which are not currently utilized in traditional NP/SD .

5. IdI is complementary to traditional NP/SD, not a substitute for it.

BEFORE

AFTER?

What’s Next?

Expand the number of companies who want to get ideas off of the lab bench and into the markets by adopting IdI.

Attempt to employ a wider and deeper range of IdIconcepts/analytics in the traditional NP/SD process.

Apply IdI across more industry/vertical contexts.

Educators/programs must ramp up with the new digitally-based social data inputs and techniques.

Traditional NPD analysts must morph to include the use of IdI analytics. Intelligence pros can involve them in their collaborative analysis processes.

Your Key Take-Aways

1. Most companies struggle with “weaponizing” their innovation capabilities, but there is a demonstrated way to do it.

2. The “fuzzy” front-end of innovation (FEI) can be made more transparent.

3. Innovating is easier – when your business applies intelligence capabilities to it.

4. Intelligence methods can help with producing more new ideas and/or better opportunities.

5. Intelligence pros, researchers and analysts should be regularly interacting with innovation personnel.

20

Contact DetailsPlease connect with me afterwards to discuss this further…

www.AuroraWDC.comA Trusted Partner Since 1995

References & Samples

Available Upon Request

Visit Aurora’s YouTube Channel:

http://www.youtube.com/playlist?list=PL453B5F10B7AAAB49

20

Dr. Craig S. FleisherChief Learning Officer

Craig.Fleisher@AuroraWDC.com

+1.608.630.5869

Twitter: @craigfleisher

Linkedin: https:///www.linkedin.com/in/drcraigsfleisher

Amazon: