Innovation’s Starting PointInnovation’s Starting Point

Idea Generation

Idea!Idea!

Ideas – Flash of inspiration OR Accidental OR conscious, purposeful search for opportunities to solve problems or please customers.

It takes three thousand of them to produce a single commercial success. So, companies must regularly generate many ideas.

Ideas – Flash of inspiration OR Accidental OR conscious, purposeful search for opportunities to solve problems or please customers.

It takes three thousand of them to produce a single commercial success. So, companies must regularly generate many ideas.

Six sources of Innovative IdeasSix sources of Innovative Ideas

New KnowledgeCustomers Lead usersEmpathetic design Invention factories and

skunkworksThe open market of idea

New KnowledgeCustomers Lead usersEmpathetic design Invention factories and

skunkworksThe open market of idea

New Knowledge New Knowledge

Ex- Computer > Powerful but lengthy time

delay b/w new knowledge gain and transformation into product.

> Rewards are enormous.

Ex- Computer > Powerful but lengthy time

delay b/w new knowledge gain and transformation into product.

> Rewards are enormous.

Customer IdeasCustomer Ideas

> Customers are an evergreen source of innovative ideas

> best source of information on the weaknesses of current products.

> best source for identifying unsolved problems.

Market research – Quizzing-> Outcomes-> Prioritize

> Customers are an evergreen source of innovative ideas

> best source of information on the weaknesses of current products.

> best source for identifying unsolved problems.

Market research – Quizzing-> Outcomes-> Prioritize

Customer Ideas(contd…)Customer Ideas(contd…)

New trend : Democratization of Innovation through

Direct Customer Participation. Ex: Starbucks – “My Starbucks Idea”

got more than sixteen thousand ideas from customers within the first few months of operation.

New trend : Democratization of Innovation through

Direct Customer Participation. Ex: Starbucks – “My Starbucks Idea”

got more than sixteen thousand ideas from customers within the first few months of operation.

Beware the tyranny of served markets

Beware the tyranny of served markets

Sticking too closely to current customers can stifle innovation and lock the company into technologies that have no future. This happens when:• customers fail to understand technical

possibilities,• and when they are afraid that real innovations will

render their current systems obsolete.

Sticking too closely to current customers can stifle innovation and lock the company into technologies that have no future. This happens when:• customers fail to understand technical

possibilities,• and when they are afraid that real innovations will

render their current systems obsolete.

Learning from lead usersLearning from lead users

A four stage process:Lay the foundation: Determine the trendsIdentify and learn from the lead usersDevelop breakthroughs

A four stage process:Lay the foundation: Determine the trendsIdentify and learn from the lead usersDevelop breakthroughs

Empathetic designEmpathetic design

A five step processObserveCapture dataReflection and analysisBrainstormDevelop solution prototypes

Examples: Honda- element SUVP&G

A five step processObserveCapture dataReflection and analysisBrainstormDevelop solution prototypes

Examples: Honda- element SUVP&G

Invention FactoriesInvention Factories

• Corporate level (long term benefits)

- Radical Innovations which various units can use

e.g . Bell Labs (Transistor, WLAN, Cell phone, UNIX)

- Huge investment in terms of time and money needed

• Business Unit Level ( short term benefits)

- Aimed at benefitting the business units directly

• Corporate level (long term benefits)

- Radical Innovations which various units can use

e.g . Bell Labs (Transistor, WLAN, Cell phone, UNIX)

- Huge investment in terms of time and money needed

• Business Unit Level ( short term benefits)

- Aimed at benefitting the business units directly

Invention Factories (contd..)

Invention Factories (contd..)

A non-formal approach - Idea Contests

- Temporary grouping of employees to crack a

problem ( Skunkworks)

e.g Lockheed Aircraft Corporation (US fighter jet XP-80 ) ,

JCI ( CorteX material for car interiors)

A non-formal approach - Idea Contests

- Temporary grouping of employees to crack a

problem ( Skunkworks)

e.g Lockheed Aircraft Corporation (US fighter jet XP-80 ) ,

JCI ( CorteX material for car interiors)

Master of the GameMaster of the Game

Thomas Edison established ‘The wizard’s Invention Factory’

Set up the first R & D centre in Menlo Park, NJ in 1876

Succeeded in producing 400 over patents

Inventions ( phonograph, tasimeter , electric bulb )

Thomas Edison established ‘The wizard’s Invention Factory’

Set up the first R & D centre in Menlo Park, NJ in 1876

Succeeded in producing 400 over patents

Inventions ( phonograph, tasimeter , electric bulb )

Where to look for Ideas ???

Where to look for Ideas ???

Intersection of new technology and customer needs (e.g GPS )

Either-or Proposition (Price or Quality)Demographic Change ( Aging

population)Market Change ( Charles Schwab’s

brokerage service) Increasing Prices ( eg. Oil )Environmental Concerns

Intersection of new technology and customer needs (e.g GPS )

Either-or Proposition (Price or Quality)Demographic Change ( Aging

population)Market Change ( Charles Schwab’s

brokerage service) Increasing Prices ( eg. Oil )Environmental Concerns

Idea Generation Techniques

Idea Generation Techniques

BrainstormingNGT (Nominal Group Technique)TRIZ (Theory of Inventive Problem

Solving)Catchball

BrainstormingNGT (Nominal Group Technique)TRIZ (Theory of Inventive Problem

Solving)Catchball

BrainstormingBrainstorming

Brainstorming is an effective way to generate lots of ideas on a specific issue and then determine which idea – or ideas – is the best solution.

Brainstorming is guided by 5 key principles - • Focus• Suspend judgment• Personal safety• Serial discussion• Build on ideas

Brainstorming is an effective way to generate lots of ideas on a specific issue and then determine which idea – or ideas – is the best solution.

Brainstorming is guided by 5 key principles - • Focus• Suspend judgment• Personal safety• Serial discussion• Build on ideas

Brainstorming contd….Brainstorming contd….

Brainstorming techniques falls into several broad categories –

• Visioning - This approach asks people to imagine, in detail, a long-term, ideal solution and the means of achieving it.

• Modifying - Modifying techniques, begin with the status quo—with current technology or conditions—and try to make adaptations.

• Experimenting - Experimenting helps people to systematically combine elements in various ways and then test the combinations.

Brainstorming techniques falls into several broad categories –

• Visioning - This approach asks people to imagine, in detail, a long-term, ideal solution and the means of achieving it.

• Modifying - Modifying techniques, begin with the status quo—with current technology or conditions—and try to make adaptations.

• Experimenting - Experimenting helps people to systematically combine elements in various ways and then test the combinations.

NGT (Nominal Group Technique)

NGT (Nominal Group Technique)

NGT has two benefits relative to brainstorming:

1. A few big talkers or politically powerful people are less likely to dominate the idea pool and the discussion.

2. NGT achieves participation from everyone, including those who might not offer ideas to a large group.

NGT has two benefits relative to brainstorming:

1. A few big talkers or politically powerful people are less likely to dominate the idea pool and the discussion.

2. NGT achieves participation from everyone, including those who might not offer ideas to a large group.

TRIZTRIZ

TRIZ stands for Theory of Inventive Problem

SolvingDeveloped in Russia by scientist

Genrich Altshuller and his colleagues This method systematically solves

problems and creates innovation by identifying and eliminating what Altshuller called technical contradictions

TRIZ stands for Theory of Inventive Problem

SolvingDeveloped in Russia by scientist

Genrich Altshuller and his colleagues This method systematically solves

problems and creates innovation by identifying and eliminating what Altshuller called technical contradictions

CatchballCatchball

•Japanese method•Catchball is a crossfunctional method for achieving 2 goals – idea enrichment /improvement and buy-in among participants

Open Market InnovationOpen Market Innovation

Not everything must be ‘invented here’. Innovative ideas can often be acquired or sold in the

market Employ strategic alliances 4 distinct advantages

Multiply the building blocks of innovationGood way to raise cash and keep talentWay to measure innovation’s real valueHelp companies clarify what they do best

Risks

Not everything must be ‘invented here’. Innovative ideas can often be acquired or sold in the

market Employ strategic alliances 4 distinct advantages

Multiply the building blocks of innovationGood way to raise cash and keep talentWay to measure innovation’s real valueHelp companies clarify what they do best

Risks

“Connect and develop” instead of “invest it ourselves” approach

Eg. P&G

Consider the following:First, identify consumer needsIdentify adjacenciesLeverage your networksDistribute and screen ideas

“Connect and develop” instead of “invest it ourselves” approach

Eg. P&G

Consider the following:First, identify consumer needsIdentify adjacenciesLeverage your networksDistribute and screen ideas

Open Market InnovationOpen Market Innovation

Oppotunties

idea

Idea

idea

idea

The Role of Mental PreparationThe Role of Mental Preparation

Unintentional generation of ideas “Chance favours the prepared mind” Preparation if the first step in the creative process that leads to

innovationSearch the literatureLook at every angleTake with people familiar with the problemPlay with the problemIgnore the accepted wisdom

Unintentional generation of ideas “Chance favours the prepared mind” Preparation if the first step in the creative process that leads to

innovationSearch the literatureLook at every angleTake with people familiar with the problemPlay with the problemIgnore the accepted wisdom

Thank YouThank You