Tips and Tools to be effective

Foster Innovation

Anita Rao

June 2013

Y?

Never innovate to compete, innovate to change the rules of the

game. -David O. Adeife

Agenda

Drivers of innovation

Guiding Principles

Customer jobs and KMOT (key moments of truth)

Innovation Value Chain

Reverse innovation

Tool – Mind Mapping

Getting innovation right

Drivers of innovation

• Integration of technologies for new capabilities

• Complementary technology partnerships

• Invention

• New business models

• Competitive shift

• New customer jobs

Synthesis of

Technologies

Creation of New

Technologies

Business Dynamics

Change

Customer jobs analysis applies to each kind above

Source C.K.Prahalad & R.A. Mashelkar

Customer Jobs…a thoughtful approach During this step Customers.. Companies can innovate

by…

Define Determine goals & plans Simplify planning

Locate Gather info needed to

execute job

Make is easier and ensure it

is available when needed

Prepare Set up environment Make set up easier, create

guides

Confirm Verify ready to perform job Give customer info to

confirm readiness

Execute Carry out job Prevent problems or delays

Monitor Asses if execution is

successful

Link monitoring with

improved execution

Modify Make alterations to improve

execution

Reduce the need to make

alterations

Conclude Finish and prepare to repeat

or next step

Design to simplify the

process of conclusion

Source Lance Bettencourt & Anthony Ulwick

Customer Jobs – contd.

KMOT

Improve

execution of a

specific KMOT

Increase

automation

Eliminate

need for an

input/output

Address an

over looked

step

Re-sequence

steps in a

process

Opportunities

to

look for

Source Lance Bettencourt & Anthony Ulwick

Value Chain

Diffusion Conversion Idea Generation

In

House

Within

A Unit

Cross

Pollina

tion

Collab

oratio

n

across

units

Externa

l

Collab

oratio

n with

parties

outsid

e

# of

high

quality

ideas

# of

high

quality

ideas

# of

high

quality

ideas

Selection

Screening &

initial

funding

Developmen

t

Movement

from idea to

first result

% of all ideas

generated that

end up being

selected

% of funded

ideas that lead

to revenues,

efficiency

Spread

% of penetration in customer

groups, # of months to full

diffusion

Source Morten Hansen & Julian Birkinshaw

Reverse Innovation – shift the center of

gravity for global companies

T The innovation

must

achieve a significant

price reduction

The innovation must result in a product or service of

world-class quality

The innovation must

be scalable: It must be

able to be produced,

marketed, and used in many locales

and circumstances.

The innovation must be

matured and transferred

Globally.

Reverse Innovation

Build new offerings

from

the ground up

Personalize

objectives, targets,

metrics for local

markets

Build success, learn,

transfer to mature

markets

Shift

power

to location of

growth

Source Jeffrey Immelt, Vijay Govindarajan, Chris Trimble

Tool – Mind Mapping

Promotes creative problem solving

Visualize data

See inter-relationships among data elements

Come up with new innovative solutions

Note: Some mind mapping software include

Xmind

Freemind

Mindjet

Mind Mapping – contd.

Set the stage • Explain what, why, how • Set ground rules

Create a first pass map

• Start with a word or phrase that frames the problem • Team then write related topics, concerns, causes, solutions, systems • Place on the map and connect with each other

Step Back • Synthesize the data; look for new insights, clusters of topics, label, draw

new lines to show inter-relationships • Place potential actions in a parking lot for later

Redraw the map • Draw a new picture of the concern, illustrate the relationships • Better sources of action should emerge

Plan Action • Look at the map and ask – “what actions should be taken? On what

elements, clusters, relationships?” • Clarify and document the action plan

Source Murray Hiebert & Bruce Klatt

Getting innovation right

Develop a deep commitment to serving the under served

Articulate and embrace a clear vision

Set ambitious goals, foster entrepreneurship

Accept constraints, creatively operate within them

Focus on people not just shareholder value

Stay hungry, stay foolish -Whole Earth Catalog, via Steve Jobs

Thank You

Twitter @anitaprao;

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