the discipline of effective innovation...leaders manage innovation as a portfolio of ambitions…...
TRANSCRIPT
D E L O I TTE C ONSU LT I NG L L P
THE DISCIPLINEOF EFFECTIVE INNOVATIONDutch Oil & GasConferenceJune 27, 2016
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MANAGE INNOVATIONAS A PORTFOLIO
GO BEYONDPRODUCTINNOVATION
TREAT INNOVATIONAS A DISCIPLINE
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MANAGE INNOVATIONAS A PORTFOLIO
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Leaders manage innovation as a portfolio of ambitions…THEDISCIPL INEOF EFFECTIVE INNOVATION
Createnewmarketsandaudiences
Enternewmarketsandaudiences
Servedmarketsandaudiences
Leveragebestpractices
Extensions,enhancements,improvements
Newbusinessesandstructures
WHERE TOPLAY
HOW TO WIN
TransformationalInnovation
AdjacentInnovation
CoreInnovation
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…and resource their efforts accordinglyTHEDISCIPL INEOF EFFECTIVE INNOVATION
10%
20%
70%
Where toexpectreturns
Createnewmarketsandaudiences
Enternewmarketsandaudiences
Servedmarketsandaudiences
Leveragebestpractices
Extensions,enhancements,improvements
Newbusinesses
andstructures
Createnewmarketsandaudiences
Enternewmarketsandaudiences
Servedmarketsandaudiences
10%
Where toinvest
Leveragebestpractices
Extensions,enhancements,improvements
Newbusinesses
andstructures
70%
20%
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GO BEYONDPRODUCTINNOVATION
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NetworkConnectionswithotherstocreatevalue
ProcessSignatureorsuperiormethodsfordoingyourwork
ProfitModelThewayinwhichyoumakemoney
StructureAlignmentofyourtalentandassets
ProductSystemComplementaryproductsandservices
ProductPerformanceDistinguishingfeaturesandfunctionality
ChannelHowyourofferingsaredeliveredtocustomersandusers
CustomerEngagementDistinctiveinteractionsyoufoster
ServiceSupportandenhancementsthatsurroundyourofferings
BrandRepresentationofyourofferingsandbusiness
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NEXBTL, Neste makes its market around the globe THEDISCIPL INEOF EFFECTIVE INNOVATION
4TYPES:
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6TYPES:
Golden State Foods delivers it your way, right away
THEDISCIPL INEOF EFFECTIVE INNOVATION
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6TYPES:
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The top innovators outperform the S&PTHEDISCIPL INEOF EFFECTIVE INNOVATION
All“topinnovators”138companies
S&P500
5-YearIndexedStockPriceReturnsoftheTopInnovatorsvs.S&P500
StockPrice
(ind
exedto100
)
2007 2008 2009 2010 2011
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Integrate multiple Types to drive superior economic returnsTHEDISCIPL INEOF EFFECTIVE INNOVATION
S&P500
5-YearIndexedStockPriceReturnsoftheTopInnovatorsvs.S&P500
StockPrice
(ind
exedto100
)
2007 2008 2009 2010 2011
3–4TypesofInnovation59companies
5+TypesofInnovation45companies
1–2TypesofInnovation34companies
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TREAT INNOVATIONAS A DISCIPLINE
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Different models of an innovation competenceTHEDISCIPL INEOF EFFECTIVE INNOVATION
CEMEXHighperformersaregiventhechancetobein-trepreneurs
MAYOCLINICA5-stageprocesstobuildbolderideas
GEUses“metricswithteeth”toalignincentives
UNILEVERSettingupTheFoundrytoaccelerateOpenInnovation
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Executives and Boards can and should accelerate the company’s journey into innovation
THEDISCIPL INEOF EFFECTIVE INNOVATION
Understandwhereinnovationeffortsaretoday
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Alignportfoliochoiceswithambition2
Becomeastrategicpartnertootherfunctions6
Createasmartmetricsystemandvaluationmethodologythatreflectstheambition
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Aimforfewer,bolderinitiatives4
Ensuretheportfolioisproperlyresourced
3
17
YouTube collects48 hours
of content per minute…
REINVENTING DISCOVERY
• 7 million followers• 500 million views• ~$40k/mo. in
YouTube income
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REINVEINTINGMARKETING
Walmart collects2.5petabytesofdataoncustomersperhour…
Onepetabyte=20mfilingcabinetsworthoftext!
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Goldcorp?
$6BN
110 TARGETS
80% YIELD
REI NV ENTI NG B OU NDARI ES
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2004400M
20148,000M
20301,000,000M
1%OF THE WAY INTO THE INFORMATION AGE