INNOVATION
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The Five Disciplines For Creating What Customers Want Curtis R. Carlson William W. Wilmot
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Transcript of INNOVATION
The Five Disciplines For Creating What Customers Want
Curtis R. CarlsonWilliam W. Wilmot
The Five Disciplines for Creating What Customers Want
“ SRI is committed to the discovery and application of
science & technology for knowledge, commerce, prosperity and peace.”
EXPLORE – DISCOVER - CONNECT
The Five Disciplines for Creating What Customers Want
Personal Computing
Ultrasound Imaging
HDTV
Stakeholders
Minimally Invasive Surgery
SWOT Analysis
Education system for disabled children
911 call systems
The Five Disciplines for Creating What Customers Want
“ When ever something – anything – is to be produced, there must be rules, or a systemized method of producing it.
Whether or not the people who do the actual production fully understand those rules, that system has a deciding effect on product quality, cost, safety and all essential determinants of
success and failure.” – Toyota (employee handbook)
The Five Disciplines for Creating What Customers Want
“ Innovation is the process that turns an idea into value for the customer and results in
sustainable profits for the enterprise.”
Innovation may be incremental or transformational, but it would always provide
additional customer value.
The Five Disciplines for Creating What Customers Want
“ Business as usual won’t work.”
“Business as usual is a recipe for disaster.”
“ We are just two years away from failure.” – Bill Gates
The Five Disciplines for Creating What Customers Want
• Continuous Value Creation• Sustained innovation centered on customer value is the only approach that works• Who is your customer?• What is the customer value you provide?• How do you measure customer value?• What innovation best practices do you use?
The Five Disciplines for Creating What Customers Want
1. Important Needs2. Value Creation3. Innovation Champions4. Innovation Teams5. Organizational Alignment
The Five Disciplines for Creating What Customers Want
Success equals:
“ Important Needs x Value Creation x Innovation Champions x Innovation Teams
x Organizational Alignment”
The Five Disciplines for Creating What Customers Want
• The end customer is to take the center stage in our world.
• Innovate or Die – The Exponential Economy
“ The most powerful force in the universe is compound interest.” – Albert Einstein
The Five Disciplines for Creating What Customers Want
• “ The World is now flat in the sense that it has become an even playing field.” – Thomas Friedman
• Moore’s – Law
• Exponential Industries – Computers, Communications, Biotechnology, Consumer Products
The Five Disciplines for Creating What Customers Want
• The exponential economy is driven by the transition to a knowledge based economy.
• These convergences require a new wave of business models.
• Declining company lifetimes (increased competition)
• Declining product lifecycles
The Five Disciplines for Creating What Customers Want
“ It is not the strongest of species that survives not the most intelligent; it is the one most
adaptable to change.”
The only way to systematically create compelling customer value in the market
place is to simultaneously interact with the market place.
The Five Disciplines for Creating What Customers Want
DISCIPLINE 1
IMPORTANT NEEDS
The Five Disciplines for Creating What Customers Want
“ Work on what’s important, not just what’s interesting-there’s an infinite supply of
both”
-Frank Guarniei
The Five Disciplines for Creating What Customers Want
Selection of Important Projects:
1. Do you work on innovative activities that can make demonstrable difference to your customers-internal and external?
2. Is it aligned with your organizational goals?
3. Are you willing to commit to it?
The Five Disciplines for Creating What Customers Want
DISCIPLINE 2
VALUE CREATION
The Five Disciplines for Creating What Customers Want
“You don’t define value-Customer’s do!”
The Five Disciplines for Creating What Customers Want
It’s simple as NABC:
• Need
• Approach
• Benefits per cost
• Competition/Alternatives
The Five Disciplines for Creating What Customers Want
Example of NABC:
“June, I understand you’re hungry as I am [Need]. Let's go have some lunch at the company café [approach], instead of
McDonald’s [Competition] because, for the cost of McDonald's it has great food, its quiet and we can continue
our conversation [ benefits per costs]. “
The Five Disciplines for Creating What Customers Want
nAbc
NabC
- All about understanding the market ecosystem instead of approach only
The Five Disciplines for Creating What Customers Want
Example of NABC:
“June, I understand you’re hungry as I am [Need]. Let's go have some lunch at the company café [approach], instead of
McDonald’s [Competition] because, for the cost of McDonald's it has great food, its quiet and we can continue
our conversation [ benefits per costs]. “
The Five Disciplines for Creating What Customers Want
THE ELEVATOR PITCHAn elevator pitch is a pithy summary of your value proposition that can
be told in one or two minutes.
• Hook: to get their interest
• Core: you NABC value proposition
• Close: action to get to the next step
The Five Disciplines for Creating What Customers Want
DISCIPLINE 3
INNOVATION CHAMPIONS
The Five Disciplines for Creating What Customers Want
• Steps up and keeps the team on track
• Push the innovation forward
• Passionate, committed, focused, inspire and responsible
• At least have one partner to keep themselves on track
The Five Disciplines for Creating What Customers Want
DISCIPLINE 4
INNOVATION TEAMS
The Five Disciplines for Creating What Customers Want
“Never doubt that a small group of thoughtful, committed people can change the world: indeed it’s the only thing that ever has.”
– Margaret Mead
The Five Disciplines for Creating What Customers Want
The Five Disciplines for Creating What Customers Want
DISCIPLINE 5
ORGANIZATIONAL ALIGNMENT
The Five Disciplines for Creating What Customers Want
• Alignment is assuring that the enterprise is constructed to deliver the highest customer value
• Align teams for success
• Slowly disperse the idea to make customer value the central hub
The Five Disciplines for Creating What Customers Want
THANK YOU
