turning crowd innovation into real products and revenue
Post on 17-Oct-2014
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When any organization ramps up a new or refined business approach, it must align with their goals as a company and provide benefits that outweigh any associated costs. And, due to their typical ambiguity, corporate innovation programs often present many challenges that can be difficult to face without expert guidance. In this presentation, Mindjet’s John Welder discusses how you can support your crowd innovation management programs through design thinking, agile methodologies, and lean start-up processes, in order to accelerate real business outcomes and revenue.TRANSCRIPT
May 28th, 2014
Turning Crowd Innovation Into Real Products and Revenue
AgendaWhat will we discuss today
• Introductions
• Crowd Ideation
• Idea Categorization with examples
• Innovation Execution Methods with examples
• Maturing Innovation Capabilities
Meet the Speaker
John Welder, Director of Strategy and Innovation
John Welder is a Director of Innovation Strategy with Mindjet, with over 20 years of experience working in the high tech sector of Silicon Valley.
Prior to joining Mindjet, John was the Director of Innovation at Ericsson where he founded the global innovation program responsible for internally sourcing, funding, and launching several major innovations. John also received 2 Pioneer awards for products delivered at Cisco.
John has a degree in Computer Engineering and a Masters in Business Administration from San Jose State University and is also an experienced mentor in Design Thinking and Lean Startup innovation
Crowd Innovation
You have engaged your employees to submit and
share ideas…
And your employees and experts have collaborated to
refine them…
And you have selected a few that are strategically aligned
and high potential…
Now what? How do you develop these ideas?
Categorize the IdeaUse an Ansoff Marix modified for Innovation Strategy
Ansoff Matrix modified for Innovation Strategy
• Core: You have all the business capabilities (R&D, Sales, Support, Distribution, etc etc) necessary to successful move the idea into market
• Adjacent: The idea requires a small set of your business capabilities to change
• Transformational: The idea requires a significant set of your business capabilities to change
Core Innovation Example Field Kiosk at DPR Construction
DPR Construction used the SpigitEngage platform to collect ideas on process improvements and cost efficiencies for the field.
• One employee submitted the idea of a field kiosk, bringing blueprint technology out to the field for viewing
• Superintendents and foremen now have 14% of the work week saved, or 7.5 hours a week from a 55 hour work week, from having to walk back and forth between jobsite and the trailer to view drawings.
14%
Adjacent Innovation ExampleFidelity Investments
The philanthropic arm of Fidelity realized it had the financial knowledge, innovation, and passion, but not the channel to reach young people.
• Recently ran a public challenge, “How might Fidelity improve financial literacy among teens in need?”
• 73 proposals, including winner Utah State University Extension 4-H
• Fidelity volunteers now training volunteer teens for a unique peer-to-peer financial education pilot program
Source: http://www.fidelity.com/inside-fidelity/community/grant
Transformational ExampleApple iPhone™ and App Store
Apple iPhone and App Store completely disrupts the whole cell phone eco-system and value chain.
• Value moves from the network carriers (e.g. AT&T) to Applications and App Store
• New standard for simple and easy to use
• Disrupts all other cell phone manufactures and the cellular service market
• Apple created all new R&D, Support, Sales, Distribution Channels, and other business capabilities
• Huge risk and huge reward
I categorized my idea – how do I implement it?Different Innovation Methodologies
Lean, 6-Sigma Corporate VC and M&A Lean Start-Up
Incubation &Eco-System Partnerships
Agile Design Thinking
Lean, 6-SigmaDefining the methodology
Lean and 6-Sigma are innovation models used in manufacturing and development environments. 6-Sigma means successfully improving a process so that it only has 3.4 ‘defects’ per million opportunities.
• This method focuses on statically measuring processes for quality and or efficiency, identifying areas of waste and inefficiency, and then improving these
• Lean, 6-Sigma, and similar quality & productivity methods (TQM, TPM) are great models for internal innovation. They are effective at:
– Internal Process Improvement– Improve Quality– Reduce Costs– Increase Efficiency
Lean, 6-Sigma
Lean, 6-SigmaExample use case
GE is well known for deploying Lean and 6-Sigma methods within the organization for great success.
• The GE Fanuc Automotive manufacturing plant creates high-tech automation products such as industrial lasers and programmable logic units.
• There were 130 active Six Sigma teams worked together on identifying ways to translate customer feedback into higher quality products while reducing costs
Source: LePree, J. (2000, January). Six sigma shines at ge fanuc. Industrial Maintenance & Plant Operation, 20-22.
“GE was a three sigma company and the cost of failure was estimated at 15% of sales. But achieving Six Sigma represents a $4 billion cost-reduction opportunity…” said Sheila O’Donnel-Good, Fanuc’s Six Sigma business leader (LePree, 2000)
AgileDefining the methodology
Agile is an innovation methodology most used in R&D for product & feature development, especially software development.
• The Agile method uses cross functional teams in an iterative model that is focused on delivering against user stories while also designed to reduce wasteful actions. Agile is a great model for delivering new or improved solutions rapidly to identified customers
• Agile is effective at:– Simplifying the development process– Rapid Learning– Internal collaboration– Customer Feedback loops
Agile
AgileExample use case
Spotify is in a highly competitive market with Amazon, Apple, Google and others.
• They needed to be very rapid with software delivery to be competitive
• Spotify engineering is broken into small cross functional “Squads”
• Each Squad is responsible for their own part of the product and can release their software every 3 weeks
Source http://labs.openviewpartners.com/agile-done-right-agile-gone-wrong/
Design ThinkingDefining the methodology
Design Thinking is an innovation methodology which focuses
on understanding and empathizing with a problem area so
that new and improved solutions can be found.
• The Design Thinking model is broken into 3 steps:
1. Inspiration: Look at the problem from new angles
2. Ideation: Generate fresh ideas rapidly
3. Implementation: Rapid Prototyping
• It’s a great model for delivering new or improved solutions
when the customer or user needs/requirements are not
clear. Design Thinking is effective when:– Customer needs or requirements are not clear– New, creative, and/or different solutions are desirable– You are looking for human centeredness
Design Thinking
Design ThinkingExample use case
IDEO, a company that uses Design Thinking to help other companies innovate completed an laser hair removal innovation project for Tria Beauty. They followed the 3 step model:
• Inspiration: IDEO interviewed and observed customers in their homes to understand needs and product requirements around ease of use and safety
• Ideation: The team brain stormed potential solutions around venting, thermal regulation, and manufacturability
• Implementation: Team rapidly prototyped multiple versions of the interface for customer and manufacturing feedback.
Source: http://www.ideo.com/work/lasering-away-unwanted-hair/
Lean Start-Up
Lean Start-UpDefining the methodology
Lean Start-Up is an innovation methodology which focuses on low cost, fast iterations with customers to rapidly discover an effective solution or new product with minimal investment.
• This method uses Minimal Viable Products (MVP) to Build Measure Learn with customers. Pivots are used if the base assumptions in a business plan prove incorrect
• It’s a great model for delivering new or improved products or services quickly especially when the market requirements are unclear. Lean Start-Up is effective when:– Testing and verifying New Products or Services – Rapid iterations and customer feedback– Minimizing investment costs– Pivoting to a successful solution
Lean Start-UpExample use case
A good example of leveraging the lean start-up method was done in the 2012 Barak Obama Campaign.
• Kyle Rush and the online donation team leveraged Build Measure Learn with 500 A/B tests of specific campaign web site pages over 20 months
• With the directly testing, they yielded a donation conversion increase of 49% and increase to sign-up conversions by 161%
Sources: http://www.bethkanter.org/lean-impact-nov4/
http://www.clickz.com/clickz/news/2040788/obamas-2012-web-campaign-aims-energize-retarget
Incubation & Eco-System PartnershipsDefining the methodology
Incubation & Eco-System Partnerships is an innovation methodology which focuses on developing new products or services in an environment separated from your main organization to allow freedom to experiment in different ways.
• Partnerships allow eco system partners to co-develop without constraints as well.
• It’s a great model for delivering new or improved products/services which are different enough from the core products or services that developing in-house would be very slow and tedious. Incubation is effective when:– Internal ways of working discourage change– Partnerships enable exploring new opportunities,
especially eco-system solutions
Incubation &Eco-System Partnerships
Incubation & Eco-System PartnershipsExample use case
The AT&T Foundry™ innovation centers are fast-paced and collaborative environments.
• AT&T and technology providers like Ericsson or Cisco team-up to deliver the latest applications and services into the hands of customers very quickly
• An example of one project that the AT&T Foundry™ incubated is a product architecture which allows you to use your cell phone as a wireless hotel key
Source: http://www.att.com/gen/press-room?pid=2949
Corporate VC and M&ADefining the methodology
Corporate VC and M&A is an innovation methodology
which focuses on using venture capital techniques to
invest, without using a third party investment firm, in an
external start-up that it does not own.
• It’s a great model for exploring new markets and
opportunities which are divergent from the current
capabilities of your organization and for identifying new
technologies. This method is effective when:– The ecosystem is rapidly changing (Tornado
Markets) and your organization wants to use venture as a method learn how the market is changing
– Your organization has a strategy around seeding innovation opportunities with the potential to harvest them as they mature
Corporate VC and M&A
Corporate VC and M&AExample use case
Cisco regularly uses Corporate VC and Mergers and Acquisitions as part of their innovation strategy.
• For example Cisco Investments invested into Insieme Networks in 2010 because it perceived a significant market change in Software Defined Networking. It staffed this start-up with 3 of it’s best engineering leaders to help enable the start-up
• Insieme developed the SDN product line and then Cisco used it’s M&A capabilities to spin-in Insieme in 2013
• It is believed that Insieme was able to develop this market changing product much more quickly then if it was developed in- house
Sources: http://newsroom.cisco.com/release/1412019
http://www.networkworld.com/news/2013/110613-insieme-faq-275585.html
Innovation Methods and CapabilitiesDifferent Methods for Different Innovations
Innovation Methods:• Here are the methods
mapped together on the strategy matrix
• Note that these methods do not have to be exclusive, they can be combined and used together in your methodology
Innovation Methods and CapabilitiesDifferent Methods for Different Innovations
Innovation Methods:• Here are the methods
mapped together on the strategy matrix
• Note that these methods do not have to be exclusive, they can be combined and used together in your methodology
Innovation Methods and CapabilitiesDifferent Methods for Different Innovations
Innovation Methods:• Here are the methods
mapped together on the strategy matrix
• Note that these methods do not have to be exclusive, they can be combined and used together in your methodology
Innovation Methods and CapabilitiesDifferent Methods for Different Innovations
Innovation Methods:• Here are the methods
mapped together on the strategy matrix
• Note that these methods do not have to be exclusive, they can be combined and used together in your methodology
Innovation Methods and CapabilitiesDifferent Methods for Different Innovations
Innovation Methods:• Here are the methods
mapped together on the strategy matrix
• Note that these methods do not have to be exclusive, they can be combined and used together in your methodology
Innovation Methods and CapabilitiesDifferent Methods for Different Innovations
Innovation Methods:• Here are the methods
mapped together on the strategy matrix
• Note that these methods do not have to be exclusive, they can be combined and used together in your methodology
Innovation Capability MaturityHow do I grow my capability to deliver innovations?
Core Transformational
• Start at the core, build the capability to cultivate ideas from your employees around process & product innovations
• Achieve rapid internal success and ROI
• Leverage success to build methods which allow you to take on more risky ideas. Rapidly build adjacent products and services
• Create a special expert team and leverage job rotation teach the organization the necessary skills
• Goal is to mature organization over 3-5 years
How can Mindjet help?
• The SpigitEngage Platforrm
• Experienced Team of
Innovation Experts
• The Mindjet Maturity
Assessment Service
Q & A