introduction to the innovation process

Empowering your business by making life with technology easier

Innova'on Day 1 – 14th October 2015 The impact of innova'on on Network ROI


We’ll cover the following:

•  What is innova'on? •  What does innova'on look like? •  More examples of innova'on •  The defini'on of innova'on •  What is innova'on •  Innova'on in ac'on •  Prepare for failure •  What does failure look like? •  Why do ideas fail? •  The innova'on process •  Innova'on in context •  Innova'on phases – diagram •  Phase 1 – Search •  Phase 2 – Select

•  Phase 3 – Implement •  Phase 4 – Capture •  Context: People and organisa'on •  Context: Innova'on Strategy •  Innova'on: Response or Strategy •  Strategic Approach •  Innova'on takes many forms •  Degrees of Innova'on •  Successful Innova've Organisa'ons •  Disrup've Innova'on •  Disrup've Businesses •  Innova'on at Network ROI •  Innova'on at Network ROI •  Ac'on Points


What is innova'on?

•  Write down how you would describe “innova5on”

•  What is the most “innova5ve” product or service you use / have encountered as a consumer? (not just your phone!)

•  Tell the person you are siBng beside what you have suggested and why

•  Who makes the product / provides the service?

•  What do you know about the organisa5on? •  Why did you buy it?


What does innova'on look like?

1908 – Model T Ford

2015 – Tesla Model S

1950 Hoover upright

2015 – Dyson DC28c

1985 – Sony Walkman

2001 – Apple IPod


More examples of innova'on

1950 -‐ WD-‐40

2015 -‐ XCP

1950 – Paper directories

2015 -‐ Google 2015 -‐ Amazon

18th Century – Bookstores


The defini'on of innova'on

•  “Innova5on is a process of turning opportunity into new ideas and puBng these into widely used prac5ce.”

(Tidd and Bessant, 2009)

•  “Companies achieve compe55ve advantage through acts of innova5on. They approach innova5on in its broadest sense, including both new technologies & new ways of doing things”

(Michael Porter 2006)

•  “Innova5on is the specific tool of entrepreneurs, the means by which they exploit change as an opportunity for a different business or service. It is capable of being presented as a discipline, capable of being learned, capable of being prac5ced”

(Peter Drucker, 2005)


What is innova'on?

•  Innova5on is not just one event -‐ it is a complex process

•  It’s not just about the end products/services

•  Occurs at all levels of organisa5ons, and in a variety of contexts e.g. private / public / third sectors – did any of your examples cover different sectors?


Innova'on in ac'on!


Prepare for failure!

•  85% of new ideas never reach a market

•  60% of R&D projects are market failures

•  40% of consumer products & services fail

•  20% of business products & services fail


What does failure look like!

New Coke Laser Disc

Sinclair C5

SpagheT Mask

Google Glass


Why do ideas fail?

•  Split into 2 groups •  Take 10 minutes to talk about failures

•  Come up with some reasons why ideas fail

•  Share your answers


The innova'on process

Companies aiming to increase innova5on levels need to improve the management of the four key innova5on phases:

1.  Searching for and genera5ng new ideas 2.  Selec5ng & priori5sing new ideas to develop 3.  Implemen5ng the ideas

4.  Capturing the benefits


Innova'on in context

•  Aside from the 4 phases, we can see that the context – looking at people and organisa5on and “Innova5on Strategy” also impact on the success of innova5on in organisa5ons.


Innova'on phases -‐ Diagram

Phase 1 Search

Phase 2 Select

Phase 3 Implement

Phase 4 Capture

People & OrganisaSon


Phase 1 – Search

•  Sources -‐ Knowledge push -‐ Need pull

•  Team -‐ Idea genera5on -‐ Brainstorming

•  Individual -‐ Personal crea5vity


Phase 2 -‐ Select

•  Feasibility •  Benefits •  An5cipa5on of resources required •  Assessing and spreading the innova5on risk •  Recognising uncertainty


Phase 3 -‐ Implement

•  Development of new product/service process •  Commercialisa5on

-‐ Adding value


Phase 4 -‐Capture

•  Protec5ng intellectual property – patents; design rights

•  Measuring innova5on success –  E.g. number of new ideas; failure rate


Context: People & Organisa'on

•  Buy-‐in from colleagues and management •  Is the company culture innova5on-‐ready?

•  Are there resources available •  CORE score – more about this later


Context: Innova'on Strategy

We must consider the following: •  Overall strategic approach within the organisa5on to innova5on

•  Types of innova5on – services, products etc. •  Building external/internal coali5ons to support innova5on


Innova'on: Response or strategy?

“…chance favours only the prepared mind” L. Pasteur, 1854

“…the more I prac5ce, the luckier I get…”

Gary Player (Golfer)


Strategic Approach

•  Innova5on must be a key aspect of any organisa5on’s strategy to be effec5ve

•  Innova5on must be defined AND measureable

•  “Our mission is to empower every person and every organisa5on on the planet to achieve more”

Satya Nadella, CEO, Microsom


Innova'on takes many forms

Many types of innova5on are recognised: •  Product innova5on – the development of new or improved

products •  Service innova5on e.g. telephone financial services, Direct Line

Insurance •  Process innova5on – the development of a new manufacturing

or payment process •  Organisa5onal innova5on – developing a new structure/overall

approach •  Commercial/marke5ng innova5on – new financing

arrangement, new sales approach


Degrees of innova'on

Six categories, each a bit less different •  New to the world (only 10% of products) •  New product/service lines •  Addi5ons to exis5ng product/service lines •  Improvements and revisions of exis5ng product/service lines •  Reposi5oning •  Cost reduc5ons

•  At Sony 80% of NPD is undertaken to modify/improve the

company’s exis5ng products


Successful Innova've Organisa'ons

Have an External focus for their Strategy

•  Customer focus, not customer driven •  Sensi5ve to and ac5vely scan for external opportuni5es •  Use formal tools e.g. forecas5ng •  Design and par5cipate in diverse networks

•  How to assess these for your chosen organisa5on? What informa5on would you need? How would you get it?


Disrup've innova'on

•  New breed of innova5ve business model •  Sharing economy / peer to peer •  Many app-‐based ‘start-‐ups’

•  Challenge tradi5onal and established models •  Call themselves “start-‐ups” •  “Up-‐starts” may be more appropriate


Disrup've businesses


Innova'on at Network ROI

•  What does the future hold for Network ROI? •  What tech will be available? •  What will service look like?

•  What will we be doing? •  What will our compe55on be doing?


Innova'on at Network ROI

Things to consider: !  Does the innova5on make our customers’ lives easier?

!  Does the innova5on make our lives easier?

!  Does the innova5on exceed our reliability standards? !  Does the innova5on exceed our security standards? ! Will the innova5on make us more profitable? !  Does the innova5on improve our market posi5on?

!  Does the innova5on fit with our brand values?


Ac'on points

Thinking about innova5on, ask yourself:

•  How can we embrace innova5on to improve working lives at

Network ROI?

•  What opportuni5es currently exist for Network ROI? •  How can we use innova5on to improve our clients’ lives?

•  Are there small innova5ons we can implement quickly?