Industrialization Of Innovation

Copyright © 2008 Inovo Technologies Inc.

INDUSTRIALIZATION OF INNOVATION

The ADOPTS process and innovation methods „Mind of the

Customer‟ and „Persona Modeling‟


The Need for Process To be successful innovation must be more than

just an individual endeavor

Innovation is a set of knowledge and skills that

can be learned and practiced

Ad-hoc

Gut-feel

Haphazard

Opportunistic

Serendipitous

Organized

Disciplined

Structured

Directed

Purposeful

The Technology of Innovation “Systematic innovation

therefore consists in the

purposeful and organized

search for changes and in the

systematic analysis of the

opportunities such changes

might offer for economic

or social innovation”Peter Drucker


CommercializationDevelopmentDiscovery

Design compelling

new offerings

Connect with customers.

Create market pullUnderstand

demand creation

So-So

Failure

The Front End Determines Success

Blockbuster

Inc

rea

se

th

e

„ba

ttin

g a

ve

rag

e‟

Determines success here

What you

do here

Ge

t m

ore

„ho

me

ru

ns

‟


Understand

the minds of

future

customers

Model to test

solutions

before

development

• Gain insight into motivation and behavior

• Capture insights using persona models

• Create compelling solution concepts

• Test using persona models

• Develop a portfolio of options

Start with

Opportunities

• Hold off on defining solutions

• Seek evidence of unmet needs & desires

dd/mm/yy – RG/vs

Key Principles


A Front-end Process

5

Strategic

Domains

Bu

sin

es

s S

tra

teg

y

Ne

w B

us

ine

ss

Offe

ring

s

Business

Hypothesis


ACTIVE DISCOVERY OF OPPORTUNITIES

Discovering unmet needs and desires

Strategic

Domains

Bu

sin

es

s S

tra

teg

y

Ne

w B

us

ine

ss

Offe

ring

s

Business

Hypothesis


An “American Idol” Model of Discovery

RegionalAuditions

Holly-wood

10,000

164 24 14 Televised Contests

Valuable

Asset

Rigorous, Iterative Discovery Process

Insight using “Wisdom of Crowds”

Critical Feedback Throughout the Process

2

Real Investment Begins Here

All are Welcome

14

3

5

6

http://en.wikipedia.org/wiki/Image:AmericanIdoltitlecard.jpg

Copyright © 2008 Inovo Technologies Inc. 8

Case – Opportunities in a new domain

StartingSub-Domains

New ExplorationDomain

Hypothesis

Cycle

Profile

Cycle

Statement

Cycle

192

Opportunity

Hypotheses

51

Opportunity

Statements

8

Opportunity

Profiles

4 on to PTS


Opportunity Hypothesis (OH)

What is

the need

or desire?

Who cares?

Why do they care?

How much

do they care?What are the

alternatives?


Case - Exploring Mobility

Community Drivers

Municipalities

Researchers

Solutions 10 application areas

> 20 end-use products

3 new business models


Iteration to focus and

shape opportunities

Wisdom of Crowds

decision support

Volume of opportunities discovered

based on evidence of need or desire

dd/mm/yy – RG/vs

Key Principles for Discovery


THE MIND OF THE CUSTOMER

Finding what customers really want.

Getting at the tacit, subconscious knowledge

Strategic

Domains

Bu

sin

es

s S

tra

teg

y

Ne

w B

us

ine

ss

Offe

ring

s

Business

Hypothesis


Target Level of Innovation

Incremental BreakthroughDistinctive

Focus Groups

Needs Gap Surveys

Habits & Practices SurveysRetail Exit

Interviews

Contextual Interviewing

Immersion Programs

Increasing need to

interpret the unmet

needs of customers

Decreasing ability of

customer to articulate

their unmet needs

Persona Modeling

Trends Analysis

Ethnography

Community Engagement

Voice of the

Customer

Mind of the

Customer

Technology Roadmapping

Getting Beyond “Voice of the Customer”

The Mind of the Customer™

De

pth

of M

otiva

tio

n In

sig

ht


Adoption Dynamics

Persona Model

Perception

AdoptionInfluence

Needs & DesiresWhat can a

company do

to affect

perceptions

and influence

acquisition

behavior?

How and why are perceptions

formed and changed?

How do

perceptions

affect

propensity

to purchase

at a specific

time and

place?


Case - How do Drivers Feel Safe? Technology

Drivers form perceptions of safety using much

more than a vehicle‟s safety features

The most important effects are those that are

directly experienced – 15 relevant effects

dimensions

Community

20 Internal, 40 external individuals

Focus on knowledge-experience diversity

Solutions

More than 25 specific safety influence

recommendations

10 existing vehicle features and

programs assessed for effectiveness

Assessment of competitive offerings


In-depth engagements to

uncover tacit knowledge

and experience

Robust and selected

knowledge community

Synthesis of knowledge using Persona Models

dd/mm/yy – RG/vs

Key Principles for Customer Insight


PREDICTIVE TESTING OF SOLUTIONS

Creating solutions using knowledge of the customer and predicting

their adoption dynamics

Strategic

Domains

Bu

sin

ess S

trate

gy

Ne

w B

us

ine

ss

Offe

ring

s

Business

Hypothesis


Insight into Demand Creation

New

Solution

Concepts

Existing

Reference

Alternatives

Personas

Adoption

Dynamics $

Time

Software

Persona Model

Capture the Mind

of the Customer™

Predict Adoption &

Demand Creation

Customer insight

A portfolio of

new options

Examples of

adoption

Business potential


Predictive Testing of Solutions

CommunityBuilding Engagement ModelingAuction

PersonasTypes of Adopters

IdeasSatisfying Needs

Community MembersSource of knowledge & experience

Modeled ConceptsAdoption Dynamics Solution

ConceptsTop Few

• 200+ Community members

• 100+ Engagements

• 30 distinct personas

• 4 Ideation sessions

• 350+ ideas created

• 24 concepts modeled

• 11 identified as best


Case - Operating Room Experience

$0

$500

$1,000

$1,500

$2,000

$2,500

SurgiStar UR Here ZipFix 2000

Iron Curtain

Duh! Pampered Patient

$000

Auctioned Value

Technology

Process technology – the surgical

procedure from admittance to recuperation

Service technology – the effects of the

actions of all the various participants,

nurses, doctors, administrators, equipment

Product technology – the effects of all the

various machines, devices, equipment etc.

Community

The entire surgical ecosystem from

the patient and the surgeon all the

way to the administrator and regulator

Solution

New patient experiences resulting

from a combination of new process,

service and product concepts


Anchoring with reference

solutions to get plausible

approximations

Solution concepts based

on customer insight

Predictive modeling of adoption

dd/mm/yy – RG/vs

Key Principles for Solutions


Questions?

22

Strategic

Domains

Bu

sin

es

s S

tra

teg

y

Ne

w B

us

ine

ss

Offe

ring

s

Business

Hypothesis


MAKING IT HAPPEN


Becoming an Innovative Enterprise

Process to

Manage

Innovation

Pro-Innovation

leadership


The Innovation Space

Scope of Change

Product and

Operational

Excellence

Product

Reinvention

Operational

Reinvention

New Business

Creation and

Transformation

TransformationalIncremental

Expansion

Operation

Be

st

Pra

cti

ce

sC

orp

ora

te F

oc

us

Gro

wth


Effect of an Innovation ProcessAssumptions Baseline Factor Accelerated

Rate of idea generation (# per month) 0.75 10% 0.825

% of ideas that make it to NPD 10% 10% 11.0%

% of NPD projects that make it through pipeline 90% 0% 90.0%

% of commercial products that

Fail to meet ROI goals 75% 10% 67.5%

Meet ROI Goals 15% 10% 21.5%

Greatly exceed ROI goals 10% 10% 11.0%

Time in NPD (months) 12 10% 10.8

Time to midpoint on adoption curve (months) 24 10% 21.6

Cost to develop ($M) 1 0% 1

ROI Goal - Revenue at adoption midpoint ($M) 5 10% 5.5

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

200.0

Y1 Y2 Y3 Y4 Y5

Total Revenue - With Process

Total Revenue - No Process


Are You Distinguishing between opportunities and

solutions?

Because understanding needs and desires informs how

to meet them.

Creating literally hundreds of new opportunity

ideas in 2-3 months?

Because volume counts. It lets you cover the domain to

find the best.

Using Personas to understand future customers?

Because understanding motivation reveals deeper

insights than behavior.


Are You Predicatively testing new concepts with your

future customers?

Because early insight into adoption leads to better

decision making.

Using the „wisdom of crowds‟ to help with decision

making?

Because having multiple perspectives improves the

quality of the decision.

Actively building a knowledge community to learn

about the future?

Because it‟s what‟s inside the minds of people that

counts the most.


The next steps

How are you, as an individual, going to

increase your innovation knowledge and

skills?

How are you, as a leader, going to create a

culture and a climate of innovation?

How are you, as an implementer, going to

take the next steps in improving your

organization‟s innovation results?

Be bold, Be specific, Be committed

Industrialization Of Innovation

Business

Transcript of Industrialization Of Innovation