Innovation by 10Re:Publica 2010

2

The origins of frog

3

(map of Silicon Valley)

© 2007 frog design. Confidential & Proprietary. 5

We are a global innovation firm.

We help the world’s leading companies create and bring to market meaningful products, services,

and experiences. Our cross-disciplinary process reveals valuable consumer and market insights

and delivers lasting, humanizing solutions across multiple technologies, platforms, and media.

- 40 years’ experience in developing breakthrough products and services

- More than 3,000 products and services for more than 300 of the Fortune 500 companies

- Won more than 100 industry awards (CES Innovation, IDEA, and others)

- Our software is in more than 500,000,000 devices

- Our clients (in 2009) were:

7 of the top 10 mobile operators and 9 of the top 10 OEMs; 50 of

Millward Brown World’s Top 100 Brands; 24 of BusinessWeek’s Top 50 Innovative Companies;

16 of Fast Company’s Top 50 Innovative Companies

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Innovation, really?

Innovation back then….

Innovation today

Innovation back then….

Innovation today

© 2007 frog design. Confidential & Proprietary. 11 1

Innovation back then….

Innovation today

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Innovation back then….

© 2009 frog design. confidential & proprietary. March 2009 42

THE BIG SPACE / JC PENNEY RFID-based digital retail concept

Innovation today

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Innovation back then….

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Innovation today

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Innovation back then….

Innovation today

Is he an innovator?

Or he?

Or he?

Or they?

Or he?

2

Innovation…why?

Margin Erosion “We operate in a mature industry with a mature product portfolio and our

margins are beginning to disappear.”

Internal Churn “Our new ideas are stuck in the mud of internal planning and review

cycles.”

Competition “New competitors are moving into our space and we need to do

something to defend our market position.”

Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,

etc.) but we don’t know where and how to start.”

Mining IP “We have so much IP but we cannot convert it into products that resonate

with consumers.”

Time-to-Market “Our linear product development process doesn’t allow for nimbleness and

trial and error.”

Customer Insight “Our product ideas are driven by science and engineering but fail to

recognize latent or unarticulated customer needs.”

Sustainability “We got lucky once or twice. How do we repeat our market success year

after year?”

INNOVATION TRIGGERS

Margin Erosion “We operate in a mature industry with a mature product portfolio and our

margins are beginning to disappear.”

INNOVATION TRIGGERS

Margin Erosion “We operate in a mature industry with a mature product portfolio and our

margins are beginning to disappear.”

Margin Erosion “We operate in a mature industry with a mature product portfolio and our

margins are beginning to disappear.”Internal Churn “Our new ideas are stuck in the mud of internal planning and review

cycles.”

INNOVATION TRIGGERS

Margin Erosion “We operate in a mature industry with a mature product portfolio and our

margins are beginning to disappear.”

Internal Churn “Our new ideas are stuck in the mud of internal planning and review

cycles.”

Margin Erosion “We operate in a mature industry with a mature product portfolio and our

margins are beginning to disappear.”Internal Churn “Our new ideas are stuck in the mud of internal planning and review

cycles.”

Competition “New competitors are moving into our space and we need to do

something to defend our market position.”

Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,

etc.) but we don’t know where and how to start.”

INNOVATION TRIGGERS

Margin Erosion “We operate in a mature industry with a mature product portfolio and our

margins are beginning to disappear.”

Internal Churn “Our new ideas are stuck in the mud of internal planning and review

cycles.”

Competition “New competitors are moving into our space and we need to do

something to defend our market position.”

Margin Erosion “We operate in a mature industry with a mature product portfolio and our

margins are beginning to disappear.”Internal Churn “Our new ideas are stuck in the mud of internal planning and review

cycles.”

Competition “New competitors are moving into our space and we need to do

something to defend our market position.”

Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,

etc.) but we don’t know where and how to start.”

INNOVATION TRIGGERS

Margin Erosion “We operate in a mature industry with a mature product portfolio and our

margins are beginning to disappear.”

Internal Churn “Our new ideas are stuck in the mud of internal planning and review

cycles.”

Competition “New competitors are moving into our space and we need to do

something to defend our market position.”

Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,

etc.) but we don’t know where and how to start.”

Margin Erosion “We operate in a mature industry with a mature product portfolio and our

margins are beginning to disappear.”Internal Churn “Our new ideas are stuck in the mud of internal planning and review

cycles.”

Competition “New competitors are moving into our space and we need to do

something to defend our market position.”

Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,

etc.) but we don’t know where and how to start.”

Mining IP “We have so much IP but we cannot convert it into products that resonate

with consumers.”

INNOVATION TRIGGERS

Margin Erosion “We operate in a mature industry with a mature product portfolio and our

margins are beginning to disappear.”

Internal Churn “Our new ideas are stuck in the mud of internal planning and review

cycles.”

Competition “New competitors are moving into our space and we need to do

something to defend our market position.”

Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,

etc.) but we don’t know where and how to start.”

Mining IP “We have so much IP but we cannot convert it into products that resonate

with consumers.”

Margin Erosion “We operate in a mature industry with a mature product portfolio and our

margins are beginning to disappear.”Internal Churn “Our new ideas are stuck in the mud of internal planning and review

cycles.”

Competition “New competitors are moving into our space and we need to do

something to defend our market position.”

Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,

etc.) but we don’t know where and how to start.”

Mining IP “We have so much IP but we cannot convert it into products that resonate

with consumers.”

Time-to-Market “Our linear product development process doesn’t allow for nimbleness and

trial and error.”

INNOVATION TRIGGERS

Margin Erosion “We operate in a mature industry with a mature product portfolio and our

margins are beginning to disappear.”

Internal Churn “Our new ideas are stuck in the mud of internal planning and review

cycles.”

Competition “New competitors are moving into our space and we need to do

something to defend our market position.”

Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,

etc.) but we don’t know where and how to start.”

Mining IP “We have so much IP but we cannot convert it into products that resonate

with consumers.”

Time-to-Market “Our linear product development process doesn’t allow for nimbleness and

trial and error.”

Margin Erosion “We operate in a mature industry with a mature product portfolio and our

margins are beginning to disappear.”Internal Churn “Our new ideas are stuck in the mud of internal planning and review

cycles.”

Competition “New competitors are moving into our space and we need to do

something to defend our market position.”

Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,

etc.) but we don’t know where and how to start.”

Mining IP “We have so much IP but we cannot convert it into products that resonate

with consumers.”

Time-to-Market “Our linear product development process doesn’t allow for nimbleness and

trial and error.”

Customer Insight “Our product ideas are driven by science and engineering but fail to

recognize latent or unarticulated customer needs.”

INNOVATION TRIGGERS

Margin Erosion “We operate in a mature industry with a mature product portfolio and our

margins are beginning to disappear.”

Internal Churn “Our new ideas are stuck in the mud of internal planning and review

cycles.”

Competition “New competitors are moving into our space and we need to do

something to defend our market position.”

Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,

etc.) but we don’t know where and how to start.”

Mining IP “We have so much IP but we cannot convert it into products that resonate

with consumers.”

Time-to-Market “Our linear product development process doesn’t allow for nimbleness and

trial and error.”

Customer Insight “Our product ideas are driven by science and engineering but fail to

recognize latent or unarticulated customer needs.”

Margin Erosion “We operate in a mature industry with a mature product portfolio and our

margins are beginning to disappear.”Internal Churn “Our new ideas are stuck in the mud of internal planning and review

cycles.”

Competition “New competitors are moving into our space and we need to do

something to defend our market position.”

Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,

etc.) but we don’t know where and how to start.”

Mining IP “We have so much IP but we cannot convert it into products that resonate

with consumers.”

Time-to-Market “Our linear product development process doesn’t allow for nimbleness and

trial and error.”

Customer Insight “Our product ideas are driven by science and engineering but fail to

recognize latent or unarticulated customer needs.”

Sustainability “We got lucky once or twice. How do we repeat our market success year

after year?”

INNOVATION TRIGGERS

Margin Erosion “We operate in a mature industry with a mature product portfolio and our

margins are beginning to disappear.”

Internal Churn “Our new ideas are stuck in the mud of internal planning and review

cycles.”

Competition “New competitors are moving into our space and we need to do

something to defend our market position.”

Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,

etc.) but we don’t know where and how to start.”

Mining IP “We have so much IP but we cannot convert it into products that resonate

with consumers.”

Time-to-Market “Our linear product development process doesn’t allow for nimbleness and

trial and error.”

Customer Insight “Our product ideas are driven by science and engineering but fail to

recognize latent or unarticulated customer needs.”

Sustainability “We got lucky once or twice. How do we repeat our market success year

after year?”

Short -Term AdvantageSustain product life with incremental

enhancements and consumer benefits.

Since product categories exist, sustaining

products are easily accepted by the market.

On the other hand profitability can diminish

quickly due to ease of imitation .

These products are low risk bets with a high

probability of short term returns.

Near-Term AdvantageCreate new products within an existing

product category that leverage high value

benefits for consumers.

The greater benefits of the product and the

fact that it is within a know category drives

rapid short-term growth.

These product are higher risks bets with

higher yet diminishing returns.

Long-Term AdvantageInnovate new to the world products that

lead the creation of new markets or

industries. Market acceptance may be

slower to gain as multiple industry

standards compete for dominance.

These products are a long term investment

with high potential returns over the long

term. Other benefits include market

dominance & strong competitive position.

years

$

0 1 2 3

years

$

years

$

4 5

Industry Level InnovationCompetitive Advantage : 5-7 years

Category Level InnovationsCompetitive Advantage: 3-5 years

Product Level InnovationCompetitive Advantage: 1-3 years

^

Sustaining (Evolve) Breakout (Expand) Disruptive (Envision)

Go/No-Go(Director Level)

Go/No-Go(VP/SVP Level)

Go/No-Go(CEO/Board Level)

6 7 0 1 2 3 4 5 6 7^ ^0 1 2 3 4 5 6 7

INNOVATION CATEGORIES

http://13c4.wordpress.com/2007/02/24/50-reasons-not-to-change/

Credit:

http://13c4.wordpress.com/2007/02/

24/50-reasons-not-to-change/

Innovation means creating change

instead of just reacting to it.

“If you don’t get better, you get worse.”My dad

Most products look alike

Good enough Excellent

Innovation means doing

what no one has done before.

Innovation means doing

what no one has done before.

what no one else would dare doing.

Intuitive bets

“It’s such a fine line between stupid and clever.”David St. Hubbins, lead singer of Spinal Tap

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Design (Thinking)?

Innovation means behavioral change.

CUSTOMER JOURNEY

Design:

Humanizes technology

Creates simple solutions to complex problems

Changes the meaning of things

Design (Thinking)?

Manager vs. Designer

Strives to keep bad things

from happening

Strives to make good

things happen.

We don't teach executives to think like

designers. We help them bring innovative

products and services to market.

Doing

Thinking

“The head and hand divided” (R. Sennett)

has risks…

“A map is not the territory.”Alfred Korzybski, 1931

Technology

People

Processes

Politics

Money

Actual

materials

Material =

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Do you fail?

"Ever tried. Ever failed. No matter.

Try again. Fail again. Fail better.“Samuel Beckett

| Project Masiluleke

5

Do you have an

innovation process?

“We don’t have an innovation process.

We hire good people.”Steve Jobs

“Design is too important to

be left to designers.”Raymond Loewy

Cross-over thinking (and doing)

Artists

Architects

Industrial Designer

Software Developer

Digital Media DesignerBusiness Analyst

Strategist

Anthropologist

Ethnographer

Writer

Mechanical Engineer

Role Matrix

ITERATIVE

SYNERGISTIC

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What about the customer?

…but it is not dead…

Nothing has changed

…but it is not dead…

Everything has changed!

“In the old days, brands

wanted everybody to pay

attention to them.

Now brands need to pay

attention to everybody else.”Umair Haque

All products and services will be SOCIAL

Social publishing

Social impact

Social content

Social networks

Where?

What?

How?

Social gamingWhat for?

Social search

Social shopping

Social currency

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“Open it up and it will design itself.”Norman Lewis

DATA is the bank…

MEANING is the currency…

“Create more value than you capture.”Tim O’Reilly

Social

InnovationValue

Meaning

DRAMATIC

Making sense

Cohesion

Convergence

Morale

Consistency

Imagination

Entertainment

Cultural relevance

Characters

Suspense

Comedy

Tragedy

Identification

SOCIAL

Connecting

Community

Belonging

Identity

Like-minded

Affinity

New people

Status

Compassion

Fun

Love

Friendship

Hobbies

Fans

CONVERSATIONAL

Listening

Empathy

Adaptive

Changing messages

Two-way

Let go of control

Open

Respect

Flow

Topical

Point-of-view

SMALL

Micro

Customizable

Relevant

Actionable

Eye-to-eye

Direct

Instant

Accessible

Sharable

Atomized

PROVOCATIVE

Making you think

Disruption

Divergence

Deconstruction

Surprise

Shock

Unexpected

Unlikely

Challenging

status quo

Unique

Attention-grabbing

Different

In your face

RESPONSIBLE

Doing good

Political

Socially responsible

Eco-friendly

Ethical

Human rights

Values

Family

Nation

Common Good

Earth

Chief Meaning Officer

checklist

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Convergence?

CONSUMER

EXPERIENCE

Media

Entertainment

Telco

Retail

eCommerceWellness

Auto

Banking

Energy

BRAND

EXPERIENCE

Mobile

Personal

Instant/

Real-time

AugmentedLocation-

based

Gaming

Social

BRAND

EXPERIENCE

Mobile

Personal

Instant/

Real-time

AugmentedLocation-

based

Gaming

Social

DESIGN

TECHNOLOGY

BUSINESS

DESIGN

TECHNOLOGY

BUSINESS

CONSUMER

EXPERIENCE

Media

Entertainment

Telco

Retail

eCommerceWellness

Auto

Banking

Energy

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Does it need to be simple?

Yes(it’s that simple)

Complex ecosystems

Feature creep

“Perfection is achieved, not when there is

nothing more to add, but when there is nothing

left to take away.” Antoine de Saint-Exupery

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The product is the story.

The story is the product.

“Because the purpose of business is to

create a customer, the business enterprise

has two—and only two—basic functions:

marketing and innovation.”Peter Drucker

Disrupt schemata

Blend two concepts

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You.

“Never doubt that a small group of thoughtful,

committed people can change the world.

In fact, it is the only thing that ever has.” Margaret Mead