sri it ti l’i nternational’s five disciplines of...

SRI I t ti l’SRI International’s

Five Disciplines of Innovation

AlbertaInnovatesJune 15‐16 2011

© 2011 SRI International – Not to be copied or distributed without SRI’s written permission

June 15‐16, 2011Edmonton ‐ Calgary

Executive Summary

• Customer needs are the focal point of every activity in organizations (& Alliances) that:g ( )– Provide products & services

– Develop technology

C d t h– Conduct research

– Offer education & training

– Represent members

• Who are your customers?

• What are their needs?


SRI’s Definition of InnovationEnsure everyone is working in the same directionEnsure everyone is working in the same direction

I iInnovationThe creation and delivery of new customer value in theymarketplace with a sustainable value for the enterprise


The Goal is InnovationAll the other elements are inputsAll the other elements are inputs

InnovationThe creation and delivery of new customer value in themarketplace with a sustainable value for the enterprise

Inputs Output

Foresight • Legal • Clusters • Taxes • R&DCulture • Education Location • Business skillsTechnical Design • Manufacturing • ValueCreation Management • Organization • Creativity

Foresight • Legal • Clusters • Taxes • R&DCulture • Education Location • Business skillsTechnical Design • Manufacturing • ValueCreation Management • Organization • Creativity InnovationInnovationCreation Management Organization CreativityEntrepreneurship • Regulations • TeamworkGlobalization • Intellectual property

Creation Management Organization CreativityEntrepreneurship • Regulations • TeamworkGlobalization • Intellectual property


SRI International Overview

“SRI International is the “Soul of Silicon Valley”

Business


Business Week

SRI Is Devoted to InnovationSRI i ld l d i hi h l i iSRI is a world‐leader at creating new, high‐value innovations

• Founded by Stanford University in 1946 as the Stanford Research Institute• A nonprofit corporation• Independent in 1970• SRI Sarnoff was acquired in 1987

SRI headquarters, Menlo Park, California • 2,100+ staff members combined• Over half with advanced degrees• More than 20 locations worldwide

$• Consolidated revenues: ~$0.5 billion

SRI Sarnoff, Princeton, New Jersey


SRI Washington, D.C.SRI State College, Pennsylvania SRI Tokyo, JapanSRI Harrisonburg, Virginia SRI St. Petersburg, Florida

6

Our Focus AreasMultidisciplinary teams in all major technology areasMultidisciplinary teams in all major technology areas

Information Technology

Engineering Health, Education,

and Economic Policyand Systems

and Economic Policy

SRI’s Five Disciplines of Innovation™

Advanced Materials, Microsystems, and Nanotechnology

Biotechnology


Nanotechnology

A Few of SRI’s InnovationsHundreds of billions of dollars in economic value createdHundreds of billions of dollars in economic value created

First Arpanet logon.com .org .gov HDTV, color TV, … Computer mouse Address readingp Address reading

Electronic Banking Color film reproduction

Your Personal AssistantYour Personal Assistant

Cognitive Assistant that Learns and

Cognitive Assistant that Learns and

Electroactive Polymers


Low cost solar-grade siliconsilicon

“Siri is one of the top-10 new companies most likely to change the way we live and work.” MIT Technology Review 2009

“Siri is one of the top-10 new companies most likely to change the way we live and work.” MIT Technology Review 2009

Organizes Organizes

CALO: award-winning team

8

SRI Technology Spin‐off Ventures Growth opportunities that bring innovations to marketGrowth opportunities that bring innovations to market

Publicly Traded

Speech recognitionSurgical robotics

Information Technology

Speech recognitionfor customer service DNA testing services*

Customer service tools*Digital TV technologies*

Digital TV equipment* Wireless mesh networksElectronic and digital signature solutions

Flat-panel displays*

Panoramic image editing software*

LCD technology* Iris biometric identification*

Secure content distribution*

Materials Bio/Medical

Video enhancement systems

New paradigm for the consumer internet

Enterprise social media technology

Drug dispensing system* Drug discoveryDigital color printing applications*

Super-bright LED light engines*

Electroactive polymers Metal “print and plate”manufacturing process


Anti-counterfeiting systems

(formerly Rosedale Medical)Glucose monitoring system Disposable hearing aid*Optical network

components

*Acquired or merged

Next-generation fuel cells**

SRI Innovation Partnership ProgramsDeveloping and sharing innovation best practices with leading companiesDeveloping and sharing innovation best practices with leading companies, universities, and governments


“Build a better mousetrap, and the worldwill beat a path to your door.” Ralph Waldo Emerson

Mousetrap p y p

The U.S. Patent Office has issued almost 6,000 mousetrap patents, however…l t h h d lonly two have had real success


5 Disciplines of Innovation5 Disciplines of Innovation Overview of the process


SRI’s Five Disciplines of InnovationS f l i ti i kill d ti l k l dSuccessful innovation requires many skills and essential knowledge

X X X X

Innovation Champions

Value Creation

Innovation Teams

Organizational Alignment

Important Customer andMarket Needs

= Market Success

All the disciplines must be in place for systematic success


Your Innovation Score

50%Important Customer Needs

Your WorkSRI Enterprise Innovation Index

60%Innovation Champions60%Value Creation

p

60%Organizational Alignment70%Innovation Teams60%Innovation Champions

7.56%Total Innovative Capability60%Organizational Alignment


Exercise: Important Versus Interesting

• In SRI’s workshops with thousands of industryIn SRI s workshops with thousands of industry, government, and university participants, what % of them walked in with a clear definition of their

( )customer(s)’ important, unmet needs?


Exercise: Important Versus Interesting

• What % of them walked in with a clear definitionWhat % of them walked in with a clear definition of their customer(s)’ needs?

NOT MANY! Maybe 10‐20%


How Innovations DevelopNEVER a straight line pathNEVER a straight line path

Important problem

Customer value

Initial targetResult

Interesting problem

TimeStart


Discipline #2:Value CreationOverview of the heart of the 5DoI

“Every organization needs one core competence, innovation”


Peter Drucker

Shared Language and Concepts

Do your teams have:Do your teams have:• Shared language and innovation concepts to think and talk about value?

•Metrics for determining value?


What Is Value Creation and Why Is It Important?C i th t f thi d ftCompanies that focus on this succeed more often

• A toolbox of best practices • Focus on customer needs both internal and external• Focus on customer needs, both internal and external• Common language and set of tools for value creation• Processes to rapidly develop customer value

• Enterprises with these practices are few and impressive• Market leaders, e.g., Medtronics, IDEO, Baldor, P&G, . . • These practices are a major source of competitive advantageThese practices are a major source of competitive advantage

• Value creation is important to staff• Unique skills that make them more valuable in all business settings• Better able to partner with the best colleagues and organizations

• The concepts seem “simple” but that does not mean they are easy to do – they are not!


What Is Customer or Stakeholder Value?Most important definition in any businessMost important definition in any business

= BenefitsCustomer = CostsValue


Value PropositionsTh d t i t t d fi iti i t iThe second most important definition in any enterprise

NeedImportantCustomer

ApproachCustomer

Benefits

Cper cost

Competition and alternatives


Value Creation Forums or Watering Holes Critical for rapidly addressing all the business issuesCritical for rapidly addressing all the business issues

• Regular meetings: Every 2‐6 weeks to develop new customer value in a market segmentvalue in a market segment

• Purpose: To collect ideas, break down organizational barriers, learn, provide resources

• Culture: Open with a commitment to continuous improvement: Iterate, iterate, iterate …


SRI’s Process For Creating New VenturesA well understood series of steps and success criteriaA well understood series of steps and success criteria

New VentureNew Venture

nVention Value Creation Forum

• New company launch• A‐round funding• Ongoing R&D

Venture Concept Commercialization

Board• External VC review• Detailed innovation plan • Strategic partners

• Champion & Team• NABC Quantitative Value Proposition Technology Golden Nugget

• Value Creation Forums

• Market analysis‐ Space and opportunity‐ Business model and positioning‐ Investments needed

• Product concept

Strategic partners • Developing reference customers


• Funding to develop the concept

p• Initial innovation plan• Entrepreneur recruitment (EIR)• Seed funding

sri it ti l’i nternational’s five disciplines of...

Documents