innovation toolbox
TRANSCRIPT
Innovation Toolbox for Startups and Enterprise
Idea Generation
Pavan [email protected]
www.pavansoni.com
About Pavan Soni• Research Fellow at IIM Bangalore (Corporate Strategy & Policy)
• Former Innovation Evangelist at Wipro (6 years)
• Bachelor of Engineering- MBM Engineering College Jodhpur (Gold Medal) and
MBA- NITIE Mumbai
• Conducted Innovation Talks & Workshops for – Café Coffee Day, Capgemini,
Cyro-Save, Dell, Ericsson, Fiserv, FSS Services, Future Group,
GlaxoSmithKline, Hexaware, Infosys, Mahindra, Marico, Rane Motors,
Tanishq, Tata Steel, Thermax, Titan, TotalGaz, Wipro and World Trade Centre
amongst others
• Recipient of ‘On-the-Job Achiever Award’- Lakshya- CII Mumbai in 2007 for the
work on Innovation
• Recipient of Innovation Excellence Award at 5th Indira Innovation Summit in
2012
• Pioneered the concept of WiCamp and Let Sparks Fly in India
• Associated with Karnataka Knowledge Commission, Bangalore Chamber of
Industry and Commerce and CII
• National Mathematics & Physics Olympiad Scholar
• Mentor- JGI iDEA (International Entrepreneurship Program)
• Guest lectured at over 25 MBA and Engineering institutes across India
• Speaker at TEDx BITSGoa ,SIBMPune and HewlettPackardBangalore
• 21 Articles and Paper Published in National & International Journals
• Contributed book chapters in three published books on innovation
• Popular blog- www.pavansoni.com (8,000 page-views per month)
A scholar for life. Not many things interest me, but if any, it doesn’t interest many. Call it contemporary science, advanced management concepts, societal economics or simply innovation, all this interests me a ton! You need to be sharp, fearless, believer and creative to be a part of my family
READING | WRITING | TEACHING
www.pavansoni.com
www.theinflectionpoint.info
www.ManagementIQ.net
Landscape Formation
Solution Vegetation
Best Case Solution
1
2
3
Diverge ConvergeIntent:
Apply the Science of Creativity for
Problem Solving & Opportunity
Creation.
Deferring the
judgment!!
The Systematic Creativity Process
3 Pavan Soni, Innovation Evangelist.
Landscape formation
1. Business Model Canvas
2. Strategy Canvas
3. Mind Mapping + Problem Exploration
4. Five Force + VRIO Analysis
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Business Model Canvas
Key Partners Key Activities Value
Proposition
Customer
Relation
Customer
Segments
Key
Resources
Channels
Cost Structure Revenue Streams
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Source: Business Model
Generation Pavan Soni, Innovation Evangelist.
Strategy Canvas
6
0
1
2
3
4
5Price
ServiceAssurance
Reputation
AccessibilityReliability
Range ofofferings
Experience
Focal Company MNCs Domestic Companies Finge Players
Source: Blue Ocean Strategy
Pavan Soni, Innovation Evangelist.
Five Force + VRIO Analysis
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Five Force Model (Porter, 1980) VRIO Framework (Barney, 1991)
Pavan Soni, Innovation Evangelist.
Source: Porter & Barney
Solution Vegetation techniques
1. Buyer Utility Map
2. Three-tiers of Non-Customers
3. Value Innovation
4. Epicenters of Business Model Innovations
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Three-Tiers of Non-Customers
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Soon to Be
(those who will jump the
fence soonest your
performance dips or prices
rise)
Refusing
(they are not willing to
work with you or don’t
consider you worth)
Unexplored
(those whom you haven’t
explored adequately or
you don’t deem worth)
Who are they?
Why are they disloyal?
How to retain them?
Who are they?
Why are they uninterested
in doing business?
How to entice them?
Who are they?
Why didn’t you look at
them?
How to get them in?
Source: Blue Ocean Strategy
Pavan Soni, Innovation Evangelist.
Buyer Utility Map
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Purchase Deliver Use Supplement Maintain Dispose
Buyer life cycleProductivity
Convenience
Simplicity
Risk reduction
Fun & image
Environmental
friendliness
Cu
sto
me
r B
en
efits
6 x 6 = 36 ways of
opportunity creation
Source: Blue Ocean Strategy
Pavan Soni, Innovation Evangelist.
Value Innovation
Pavan Soni, Innovation Evangelist.12
Value
Cost
Price
Profit Proposition
Value Proposition
Create
Raise
Eliminate
Reduce
Source: Blue Ocean Strategy
Epicenters of Business Model Innovation
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Resource- driven Offer- driven
Customer- driven Finance- driven
Example: Amazon Web
Services
Example: Cemex (Mexican
cement company)
Example: 23andMe
(personalized DNA testing)
Example: Xerox 914 (lease at $95 per
month, 2000 free copies, 5 cents per
copy
Pavan Soni, Innovation Evangelist.
Source: Business Model
Generation
Best case solution techniques
1. Weighted scoring method
2. Sure-winner framework
3. Net Present Value
4. Cash-curve assessment
5. Non-dollar returns evaluation
6. Zero to One protocol
7. SUCCESS principle of idea narration
8. Case presentation template
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Weighted Scoring Method
Intent:
Short listing ideas based on their rating against multiple parameters
Bring group consensus around proposed ideas
IDEAS PARAMETER #
1
PARAMETER
#2
PARAMETER
#3
SCORE
Typical parameters*:
• Desirability
• Feasibility
• Viability
Steps involved:
• Identification of parameters
• Assigning weight
• Rating on a 6 point scale
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Source: Stanford Design School
A Sure-Winner framework
Intent:
Evaluating potential of an idea based upon Purchase Motivators &
Purchase Barriers
LowerPrices
GreaterBenefits
Easy to Use
Easy to Buy
Idea 1 Idea2 High purchase motivators:
• Less expensive than existing products
(Lower Price)
• Provide better features than existing
products (Greater Benefits)
Eliminating purchase barriers:
• Must not have any switching or adoption
cost (Easy to Use)
• Must be readily available (Easy to Buy)
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Source: Source: Can you Spot the Sure Winner?, Eric Mankin
Net Present Value (NPV) assessment
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Time of the cash flow
Discount rate
Net cash flow (+ive for inflow; -ive for outflow)
Positive: Go
Negative: No Go
Zero: Indifference
Limitations for innovation projects:
Difficult to estimate ‘rate’ and future cash flows due to uncertainty
Doesn’t take into account Type-2 errors (missed innovations)
Can compare only similar projects, that too at the same time
Offers only go/ no go decision, and not gain/ loss situation
Pavan Soni, Innovation Evangelist.
Non- Dollar returns evaluation
Each concept is identified on the basis of impact it creates on each of the
four dimensions.
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Source: Boston Consulting Group
Zero to One Protocol
Pavan Soni, Innovation Evangelist.20
Engineering question: Can you create breakthrough technology instead of incremental improvements? (at least 10 times better!)
Timing question: Is now the right time to start your particular business?
Monopoly question: Are you starting with a big share of a small market? (customers don't care about technology as much as about solving a problem)
People question: Do you have the right team? Distribution question: Do you have a way to not just
create but deliver your product? Durability question: Will your market position be
defensible 10 and 20 years into the future? Secret question: Have you identified a unique opportunity
that other don't see?Source: Peter Thiel
SUCCESs Principle
Intent:
Emphatic way of conveying your ideas
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Source: Made to Stick
Idea Presentation Template
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Value Proposition
For what a customer should be willing to pay you?
Customer segment
Who (Business /
Consumer)
Where
Demographic/
psychographic
Preferences
Gain/ pain points
Product/ service
Stand-alone
Bundles
Delivery mechanisms
Partnerships
Revenue logic
Revenue model
Pricing model
New revenue stream /
addition to existing
ones
Anticipated cost/ time to
implement
New resources/
competencies required
Implementation issues
Organizational/
technological/ market/
institutional
Implementation solutions
Strategies and
structures
Partnerships
Interventions
Pavan Soni, Innovation Evangelist.
For further reading on Innovation
Innovation section on BusinessWeek (www.businessweek.com/innovation)
HBR Blogs (http://blogs.hbr.org)
Knowledge@Wharton (http://knowledge.wharton.upenn.edu)
MIT Open Courseware (http://ocw.mit.edu)
Real Innovations (www.realinnovation.com)
Innovation Tools (www.innovationtools.com)
Mind Tools (www.mindtools.com)
TED (www.ted.com)
Alltop (http://innovation.alltop.com)
Creativity for Life (www.creativityforlife.com)
1000Ventures (www.1000ventures.com)
Technology Review (www.technologyreview.com)
Pavan Soni’s blog (www.pavansoni.com)
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Books on Innovation and Creativity
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Where Good Ideas Come From: The Natural History of Innovation (Steven Johnson, 2010)
The Medici Effect: What Elephants and Epidemics Can Teach Us About Innovation (Frans Johansson, 2006)
Zero to One: Notes on Start Ups, or How to Build the Future (Peter Thiel, 2014)
The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail (Clayton M. Christensen, 1997)
Ten Rules for Strategic Innovators: From Idea to Execution (Vijay Govindarajan, 2005)
Relentless Innovation: What Works, What Doesn't--And What That Means For Your Business (Gerard J. Tellis, 2013)
Thinkertoys: A Handbook of Creative-Thinking Techniques (Michael Michalko, 2006)
Lateral thinking: Creativity step by step (Edward De Bono, 1970)
Brain Rules: 12 Principles for Surviving and Thriving at Work, Home, and School ( John Medina, 2014)
Blue Ocean Strategy: How To Create Uncontested Market Space And Make The Competition Irrelevant (W. Chan Kim and Renée Mauborgne, 2004)
The Innovators: How a Group of Hackers, Geniuses, and Geeks Created the Digital Revolution (Walter Isaacson, 2014)
Pavan Soni, Innovation Evangelist.