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Disruptive, Open, and Lean:A Primer on Innovation Buzzwords

2016 SPE ConferenceHouston, TX

Teresa Jurgens-Kowal, PhD, MBA, PE, PMP©, NPDP

23 Feb 2016

www.globalnpsolutions.com 223 Feb 2016


Everyday Language

We use (and abuse) business terms“Innovative” hair salonABC Company is a “disruptor”“Crowdsourcing” the ideaRun a “lean” development program

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Theory and Practice

Disruptive Innovation

Open Innovation

Lean Innovation

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Disruptive Innovation

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“To cause disorder or turmoil in”“To break apart”

“Something new or different introduced”

* dictionary.com definitions of disrupt, innovation

Causing a market to change radically by introducinga new product, service, or program


The Theory

Sustaining Innovation Incumbents serve

existing business Add features for

existing customers Business processes

support existing biz

Disruptive Innovation New entrant offers

convenience or affordability

New market disruptor

Low-end disruptor

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A Transportation Example

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Photography Example

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Applying Disruptive Innovation

Probe non-users for needsCompetitive analysis

Patent mappingIdentify new technologiesWatch “non-related” markets

Form autonomous R&D division

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Challenges in Disruptive Innovation

Easiest to identify with hindsightMarket disruption can take a long timeOkay to work on sustaining

innovations

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Is Open Innovation New to You?

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Open Innovation

Uses external sources as well as internal sources to deliver new products, services to the market

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Traditional vs. Open Innovation

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The smart people in our field work for us Not all of the smart people work for us, so we must find and tap into the knowledge and expertise of bright individuals outside our company

To profit from R&D, we must discover, develop and ship it ourselves

External R&D can create significant value; internal R&D is needed to claim some portion of that value

If we discover it ourselves, we will get it to market first

We don’t have to originate the research in order to profit from it

If we are the first to commercialize an innovation we will win

Building a better business model is better than getting to market first

If we create the most and best ideas in the industry, we will win

If we make the best use of internal and external ideas, we will win

We should control our intellectual property (IP) so that our competitors don’t profit from our ideas

We should profit from others’ use of our IP, and we should buy others’ IP whenever it advances our own business model


How to Use Open Innovation

Co-CreationOn-Line Communities

Lead User CouncilUniversities (e.g. 3D printing)Tournament Crowdsourcing

Goldcorp $575k $3B (7 years)

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Challenges with Open Innovation

ConfidentialityIntellectual Property

Need focusWhat is the question?How can customers help?

Don’t underestimate data analysis

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Lean Innovation

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The “LEAN” Movement

Eliminate wasteMaximize value-added activities

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L E A NR


Traditional “Waterfall” Process

Stage-GateWork done in stagesDecisions made at gatesProgressive elaboration of tasksOptimize investment

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Lean Learning Cycle:Fail Fast, Fail Often

Define

Measure

AnalyzeImprove

Control

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Customer Needs

Ethnographic Research

Rapid Experimentation

Fast Failure

Validate Concept


Disruptive, Open, and Lean

Focus on the customer

Understand market needs

Experiment and iterate

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INNOVATION BUZZWORDSFor more information…

Feel free to contact me www.globalnpsolutions.com www.Simple-PDH.com [email protected] Twitter: @globalnpd 281-280-8717

23 Feb 2016

http://www.globalnpsolutions.com/

http://www.simple-pdh.com/

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