innovation theories & models | 2016
TRANSCRIPT
THEORETICAL MODELSGTP INNOVATION WORKSHOP
DISRUPTIVE INNOVATION
START BY UNDERSTANDING THE REAL NEEDS OF THE CONSUMER AND THE JOB THEY ARE TRYING TO ACCOMPLISH
Clayton Christensen
SUSTAINING INNOVATIONDISRUPTIVE INNOVATION
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Performance that consumer utilise or absorb
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Sustaining Innovations
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Disruptive Innovations
WHEN COMPETITOR SUBSTITUTES ARE GOOD ENOUGH, YOUR BEST MAY NOT BE THE BEST
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NEW MARKETSSOMETIMES THE OPPORTUNITY IS IN
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SUSTAINING AND DISRUPTIVE INNOVATION
KEY LESSONS
▸ It is not how the consumer perceives an offering but the job that it fulfils.
▸ Sustaining and disruptive innovation improves on and replaces much of marketing and brand theory around positioning and competitor differentiation.
▸ Simplicity over complexity: When competitor substitutes are good enough, your best may not be the best.
BLUE OCEANS
STRATEGY CANVASFOUR ACTIONS FRAMEWORK
STRATEGY CANVAS
▸ The strategy canvas is a diagnostic and action tool for building a blue oceans strategy.
▸ It effectively captures the state of play in the market being analysed and allows the strategist to understand where the competition is focusing their efforts and what the key areas of competition are.
YELLOW TAILTAKING ON THE US WINE INDUSTRY
PRICE TERMINOLOGY MARKETING AGEING VINEYARD COMPLEXITY RANGE
Premium Budget
TO FUNDAMENTALLY SHIFT THE STRATEGY CANVAS OF AN INDUSTRY YOU MUST BEGIN BY REORIENTING YOUR STRATEGIC FOCUS FROM COMPETITORS TO ALTERNATIVES AND FROM CUSTOMERS TO NON CUSTOMERS
Kim & Mauborgne
BLUE OCEANS
THE FOUR ACTION FRAMEWORK QUESTIONS
▸ Which of the factors that an industry takes for granted should be eliminated?
▸ Which of the factors should be reduced well below the industry’s standards?
▸ Which factors should be raised well above the industry’s standard?
▸ Which factors should be created that the industry has never offered?
ELIMINATE‣ Enological terminology
‣ Ageing qualities
‣ Above-the-line marketing
REDUCE‣ Wine complexity
‣ Wine range
‣ Vineyard prestige
RAISE‣ Price versus budget wine
‣ Retail store involvement
CREATE‣ Easy drinking
‣ Ease of selection
‣ Fun and adventure
PRICE MARKETING VINEYARD RANGE SELECTION
Premium Budget Yellow Tail
INDUSTRIESSOUTHWEST AIRLINES LOOKED ACROSS
BLUE OCEANS STRATEGY
KEY LESSONS
▸ Understanding the consumers’ needs is key to innovation.
▸ Challenge existing business models: just because they represent the historic norm doesn’t mean that they are right.
▸ Focus is more important than ticking all the boxes.
▸ Look across industries and look across time to understand how industries can and will evolve.
DESIGN THINKING
NO, IT ISN’T
DESIGN THINKING IS A HUMAN-CENTERED APPROACH TO INNOVATION THAT DRAWS FROM THE DESIGNER'S TOOLKIT TO INTEGRATE THE NEEDS OF PEOPLE, THE POSSIBILITIES OF TECHNOLOGY, AND THE REQUIREMENTS FOR BUSINESS SUCCESS
Tim Brown, IDEO
Participatory Design 1960User testing / efficiency / end
-user development / Scandinavian approach
User-Centered Design 1980sUser experience / needs /
user at center of developement
Human-Centered Design
1990s
Evolution of user-centered design / collaborative / multidisciplinary / social
systems / empathy
DESIGN IS NOT SO MUCH AS A PHYSICAL PROCESS BUT A WAY OF WORKING
Nobel Economics Prize Laureate Herbet Simon
WE LIVE IN THE AGE OF VUCA
BY LEVERAGING THE BEST QUALITIES OF BOTH BUSINESS AND DESIGN THINKING (ONE) ESTABLISHES A MORE SENSITIVE, POWERFUL AND POTENT ANALYTICAL TOOL SET THAT ESCALATES THINKING TO A NEW LEVEL
Harvard .
DEFINE | HISTORY | IMPORTANCE
(but how does it work?)
COMPLEXITY / MYSTERIES / WICKED PROBLEMS
HEURISTICS ALGORITHMS
understand observe define ideate prototype test
discovery interpretation ideation experimentation evolution
uncertainty / patterns / insights concepts / prototypes clarity / focus design
what is what if what wows what works
insight
foresight
sense making
opportunity mapping
applied innovation
strategic innovation
VISUALIZATION, CO-CREATION & OVERLAPPING
IMPORTANT THROUGHOUT THE JOURNEY
NOT SET IN CONCRETE
HUMAN-CENTRIC
THE OLD WAY IS THAT YOU COME UP WITH A PRODUCT IDEA AND THEN TRY SELL IT TO CUSTOMERS. IN THE DESIGN THINKING WAY, THE IDEA IS TO IDENTIFY USERS’ NEEDS AS A STARTING POINT.
New York Times reporting on IBM’ s design thinking efforts
WEAK SIGNALS
SENSE MAKING
OPPORTUNITY MAPPING
IDEATION
PROTOTYPING
BUSINESS MODELING
BUT AN ONGOING JOURNEYINNOVATION IS NOT A MOMENT IN TIME
LOOP BACKSA JOURNEY THAT MUST INCLUDE
ALLOWS US TO MAKE CHANGES
DESIGN THINKING
KEY LESSONS
▸ Design thinking is a human-centric approach to innovation.
▸ It represents a structured, but not rigid, movement from complexity to simplicity.
▸ Innovation is an ongoing process that must include loop backs into the mysteries.
OPEN INNOVATION
ORGANISATIONSIT CHALLENGES THE FORTRESS VIEW OF
CONCEPTUALLY, IT IS A MORE DISTRIBUTED, MORE PARTICIPATORY, MORE DECENTRALIZED APPROACH TO INNOVATION… USEFUL KNOWLEDGE TODAY IS WIDELY DISTRIBUTED… NO COMPANY CAN EFFECTIVELY INNOVATE ON ITS OWN.
Henry Chesbrough
the knowledge economy played a major role in enabling open innovation
Ideas & technology
IP in-licensing
IP out-licensing
Spin-off offerings
Open innovation is the glue that connects corporate giants with entrepreneurial ventures
REGIONAL INNOVATIONESSENTIAL FOR
OPEN INNOVATION
KEY LESSONS
▸ Challenges the fortress mentality of organisations against the world.
▸ Is happening, even if corporate leadership does not want it to happen.
▸ Accelerates and expands innovation, especially in innovation ecosystems
