...Framework for Strategic Innovation A Framework for Strategic Innovation Blending strategy and creative exploration to discover future business opportunities ______________________________ by Derrick Palmer & Soren Kaplan Managing Principals, InnovationPoint LLC © InnovationPoint LLC www.innovation-point.com Page 1 A Framework for Strategic Innovation Authors Soren Kaplan is the author of Leapfrogging and a Managing Principal at InnovationPoint, where he works with organizations including Visa, Colgate-Palmolive, Medtronic, Disney, Philips, PepsiCo, and numerous other global firms. Soren previously led the internal strategy and innovation group at Hewlett-Packard (HP) during the roaring 1990’s in Silicon Valley and was a co-founder of iCohere, one of the first web collaboration platforms for online learning and communities of practice. He is an Adjunct Professor within the Imagineering Academy at NHTV Breda University of Applied Sciences in The Netherlands. He holds Master’s and Ph.D. degrees in Organizational Psychology and resides in the San Francisco Bay Area with his wife, two daughters, and hypo-allergenic cat. Learn more about his book Leapfrogging by visiting www.leapfrogging.com. Derrick Palmer consults on strategic innovation with global, Fortune 1000 and medium-sized businesses. His areas of focus include corporate strategy, consumer-inspired new product innovation, designing best-in-class innovation processes, and strategic...
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...it seems natural to ask: What are the next steps? Do we need to do more? Three initiatives launched around the Paris meeting are an important start. Bill Gates announced the formation of the Breakthrough Energy Coalition, composed of philanthropists who will invest in public-private partnerships to invent and scale technologies. More than 20 countries led by the U.S. unveiled "Mission Innovation" and pledged to seek to double their government research-and-development budgets over the next five years to accelerate clean-energy innovation. Ten of the world’s largest oil and gas companies launched the "Oil and Gas Climate Initiative" to organize meaningful action through the sharing of best-practice information and other industry collaboration as well as to make investments in R&D and startups. These statements indicate that both the public and private sectors recognize that we live in a carbon-constrained world and that there will be a charge on carbon emissions, imposed through regulations or market prices or a combination of both. Thus, there is an imperative for industry to explore the commercialization of new innovative low-carbon technologies. Given the scale of the energy and climate challenges, the three initiatives are necessary but not sufficient. Why? Successful innovation must address technologies from creation to deployment. Take, for example, advances in battery technology. A battery that costs less than $100 per kilowatt-hour with a lifetime of more than 1...
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...customer shrink to the benefit of both parties. Also, manufacturers will continue to capitalize on breakthroughs in data collection technologies in order to fulfill the demands of their data hungry customers. With these new analytical tools, we will continue to see more and more innovative solutions to problems that were previously unknown or undefinable. Another opportunity for the industry to grow is by the acceptance that our bodies, our actions, our sports, and our lives are not perfectly symmetrical. Increasingly, companies are braving the extra effort and manufacturing challenges to make their products asymmetrical to more accurately fit the real world needs of the user. I suppose the first ever example would have occurred a few thousand years ago when cobblers began making left and right-footed shoes. It was not until just a few years ago that the same concept was successfully applied to socks! Nike Elite socks exploded on the scene with great success despite a high price point. This is one example of many across the world of sports and fitness. While Nike was fortunate to grab this low hanging fruit, it is safe to say that future innovations will require a more technical approach. In closing, if a company wants to thrive in this competitive industry in the next five years, I believe they must follow three main tenants. First, the company must capitalize on breakthroughs in analytical technology. Secondly, the company must admit the world is not symmetrical and then...
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...Introduction to Innovation Management Prof. Paul Collins UWB Learning Objectives • Understand the Language of Innovation • Distinguish between innovation as artifact and process • Be able to explain the three innovation imperatives • Be versed in how innovation affects firm growth and performance • Articulate why managing innovation matters Prof. Collins UWB 2 I. The Competitive Challenge Techno-economic Revolution •We are in the middle of an estimated 50 year technoeconomic revolution that creates new growth opportunities and disrupts the basis of competition in many established industries (Hiemtra,2000) •Global markets mean increased competitiveness in terms of cost, quality, and innovation •Affects consumer demand by providing more options that offer multiple performance advantages simultaneously. Prof. Collins UWB UWB 3 Moore’s Law – Powering the Techno-economic Revolution •According to Moore’s Law, the number of transistors on a chip roughly doubles every two years (at less cost per unit of performance). •As transistor counts climb so does the ability to increase device complexity and integrate many capabilities onto a chip. • How does this affect your industry? Company? Prof. Collins UWB 4 Evidence (Forbes Study) Drivers of Value Creation Drivers of Value Creation What Forbes' Research Established (rank order) 1. INNOVATION 2. ABILITY TO ATTRACT TALENTED EMPLOYEES 3. ALLIANCES What Forbes' Readers Said (rank...
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...substitute of it. Creative destruction is a common economic phenomenon happening in the business cycle and to some extend, it is a process of wealth accumulation under capitalism. (Karl, 1848&1857&1863) In the long run, it would result into a high rise of service and products quality, a progress in the humanity society. However, if focusing on the individual unit, creative destruction is a challenge. Those who do not play well, like because of lacking skills or technology, will be eliminated out of the game. In the following sections, this paper is going to illustrate the importance of innovation strategy in this game from the enterprise perspective, how could innovation strategy fit the strategic planning well, and how big data could work for the strategic planning process. 1 Innovation Strategy As defined, innovation strategy is a plan conducted by the organization to encourage advancement in technology or service. (Businessdictionary.com) Innovative technology is the soul of the business, which differentiates the firm from the others and brings profits to stakeholders. However, innovation does not equal product development. Product...
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...Nathan J. Kerr Heider College of Business- Creighton University ITM 738 Back Bay Battery Simulation: 1. Briefly describe a challenge you faced in each scenario. The challenge I felt the most was forecasting of sales numbers. Although I should have realized early on, price reductions actually influenced the model. When dealing with disruption, you just do not have the forecasting models that can predict proper price points. 2. Identify at least two strategies that you used in addressing the challenge described above. Identify one strategy that worked and one strategy that did not work. To finally get a handle on profits/ losses/ etc., I initially raised the price of the ultra-capacitor to minimize the losses and to set a price-point different from the default set by the model in 2012. This allowed me to devote a minimum of 3 million per year in process improvements for price reductions of $0.50 per year. The remaining funds went to energy density research until the breakthrough. I then shifted money to self-discharge for ultra-capacitors as that was the second desire from customers. No money went to NiMH until self-discharge for ultra-capacitors had breakthrough and then I shifted money to process improvements for NiMH so as to keep prices low and milk the rest of that market. 3. Based on what you experienced in this simulation as well as what we have covered in class, identify at least one specific piece of advice would you give to an innovative...
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...ll companies, from major multinationals to start-ups, face a common challenge: how to grow their businesses so they can boost earnings and enhance the value of their shares. Far too often, however, firms find it difficult to sustain growth because they become risk averse and, as a result, opt for incremental product and service improvements instead of major initiatives, according to a study by a Wharton marketing professor. George S. Day, who also serves as co-director of Wharton’s Mack Center for Technological Innovation, says companies can avoid lackluster growth by better understanding the risks inherent in different levels of innovation and achieving a balance between — using two terms he has coined — BIG I innovation and small i innovation. In his study, Day discusses how executives can properly assess risks and then seek creative ways to reduce risk exposure. Day, a consultant to many Fortune 500 companies, says his research is the outgrowth of years of thinking about the problems that companies face in trying to set and achieve growth targets. Growth — particularly “organic” growth that comes from improving a company’s performance from within rather than relying on acquisitions — is so important that it is at the top of the agendas of some 80% of U.S. chief executive officers, according to Day. “These executives know that the expectation of superior organic growth is the most important driver of enterprise value in capital markets,” Day writes in the paper, titled...
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...leading detergent brand TOP launched a breakthrough cleaning technology detergent range, to effectively remove mite dust from laundry. The product was developed with the consumer insight of the growing number of Malaysians experiencing respiratory system-related allergies that are linked to mite dust. The TOP Anti-Mite Dust formulation has been introduced across the entire detergent range from TOP. The range was launched at the Innovation for Better Living Hygienic Cleaning Awareness Road Show that was held at One Utama Shopping Mall in the last week of April. The event focused on health and hygiene related issues vis-à-vis laundry challenges. The audiences gathered were given useful tips on how to tackle malodour, mite dust and allergies, bacteria, common stains, and the use of suitable detergents for various washing methods to achieve the best cleaning results. TOP’s advanced cleaning technologies such as anti-malodour and anti-mite dust are a result of Lion Corporation Japan’s strong R&D ability. To elaborate, the unique Anti-Mite Dust cleaning technology is proven to remove 99.9% of allergic mite-dust for hygienically clean laundry. Other key product attributes of TOP detergent include anti-bacteria, colour protection, brightening whiteness, and fast action on tough stain for better cleaning results. According to Southern Lion Sdn Bhd Marketing Director, Mr William Khoo, TOP aims to fulfill its brand promise of Innovation for Better Living by addressing and providing...
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...Contents Indian Insurance sector poised for its next stage of growth The puzzle of untapped potential Redefining Customer Value Proposition Improving Operational Performance Key challenges in leveraging Innovation Improving the Innovation Quotient Conclusion Contacts 1 Indian Insurance sector poised for its next stage of growth The insurance sector in India has grown at a fast rate post-liberalization in 1999. In the last decade, total premium grew at a CAGR of 25% and reached a total of $67 billion in 2010. Indian Life insurance industry (which contributes 88% of total Life and General insurance premium in India) has emerged as the 9th largest life insurance market in the world. Yet, Insurance penetration (measured as ratio of premium underwritten to GDP) was only at 5.2 % in 2010 – significantly lower than Asian peers like South Korea, Taiwan, Japan and Hong Kong which boast an insurance density greater than 10%. 1 With low insurance penetration levels, growth potential remains promising. More importantly, the pace and nature of growth will likely see a change where new behaviours and dynamics of demand and supply will apply. On the demand side, growth is being fuelled by the growing population base, rising purchasing power, increased insurance awareness, increased domestic savings and rising financial literacy. The suppliers are correspondingly playing a market making role as competition heightens and differentiation become necessary for profitable growth. In the new...
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...For the exclusive use of Q. WEI2015. 9-699-012 REV: JULY 23, 2002 STEFAN THOMKE Innovation at 3M Corporation (A) On the evening of October 23, 1997, Rita Shor, senior product specialist at 3M, looked across the conference room at her team from the Medical-Surgical Markets Division. She wondered when to draw to close the intense ongoing debate on the nature of the team’s recommendations to the Health Care Unit’s senior management. A hand-picked group of talented individuals, the team had embarked on a new method for understanding customer needs called “Lead User Research.” But this initiative to introduce leading-edge market research methods into 3M’s legendary innovation process had now grown into a revolutionary series of recommendations that threatened to rip apart the division. While senior management wanted the “Lead User” team to execute a manageable project involving surgical draping material to protect surgery patients from infections, the team now wanted to rewrite the entire business unit’s strategy statement to also include more pro-active products or services that would permit the upstream containment of infectious agents such as germs. This went against the incrementalist approach that for so long had pervaded 3M. After all, as Mary Sonnack, division scientist and an internal 3M consultant on the new Lead User methodology, noted “3M gets so much revenue from incremental products . . . like a blue Post-it note instead of just a yellow one.” ...
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...we make decisions about where to put our time and money, when and how much we should spend or save. In the context of innovation, economics informs the type and number of innovations attempted in a given period - how bold, how aggressively pursued, and how funded. This book describes an approach to innovation decision making that can break enormously wasteful historical trade-offs in resources. The goal of this book is to enable the practical application of that approach - pretotyping - within mature companies looking to improve the effectiveness of their front-end innovation processes. My colleague and friend Alberto Savoia is the originator of the term pretotype and much of the theoretical foundation for pretotyping. For an entertaining and rapidly-digestible primer on the method, I commend his excellent book Pretotype It1. I owe Alberto - and his many collaborators at Google, where pretotyping abounds - a profound debt, and I heartily acknowledge his prior art. This book is based upon the Pretotyping@Work workshop materials I developed with Alberto that makes pretotyping a teachable, repeatable method. As the book is intended to be readable by those new to pretotyping, there will be some duplication for the initiated, for which I compensate with new tools and perspectives. For invaluable feedback, reinforcement, and tempering challenge I must also thank both my wife Petra and Alberto for patiently reviewing manuscript drafts. Thanks finally to...
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...Accelerated Innovation: The New Challenge From China Magazine: Summer 2014Research Feature April 23, 2014 Reading Time: 23 min Peter J. Williamson and Eden Yin Rather than focusing on technological breakthroughs, Chinese companies are finding new ways to innovate that reduce lead times and speed up problem solving. Companies elsewhere should take notice. Chinese companies are reengineering new product development in ways that reduce lead times. Chinese companies are opening up a new front in global competition. It centers on what we call accelerated innovation — that is, reengineering research and development and innovation processes to make new product development dramatically faster and less costly. The new emphasis is unlikely to generate stunning technological breakthroughs, but it allows Chinese competitors to reduce the time it takes to bring innovative products and services to mainstream markets. It also represents a different way of deploying Chinese cost and volume advantages in global competition. Silicon Valley and other technology hotbeds may be able to match the speed of Chinese innovation in particular sectors such as electronics and Internet-based services. However, what’s distinctive about the strongest Chinese competitors is their capability to combine accelerated innovation with rapid scale-up to high volume at low cost, and to apply these techniques across a wide variety of traditional industries. We saw accelerated innovation being deployed...
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...According to the Grand Canyon University College of Business their mission statement is, “To challenge and inspire students to be servant leaders with the business skills and values necessary to drive organizational success and positively impact society” (“About”, n.d., para 6). To be successful in any personal venture one must be committed to their cause and posses certain qualities that help support their end goal. Entering into the GCU College of Business it is important to understand the three pillars that embody a graduate business student. The three pillars include servant leadership, entrepreneurial spirit, and innovation. Servant Leadership describes a leadership style that focuses on serving the needs of the team, client or community rather than the needs of the leader. “Characteristics of servant leaders include but are not limited to listening, empathy, awareness, persuasion, foresight, stewardship, and commitment to the growth of people” (Campbell & Rudisill, p. 27). As a registered nurse and nursing supervisor it is imperative I support my patients and peers through a servant leadership style. Today's healthcare system has become very complex; and in turn can be intimidating for patients and overwhelming to healthcare workers. In my professional practice I try lead by example and promote health and wellness through my commitment to caring for others. Servant leadership, like nursing is dedicated to promoting the growth and success of those around you. Everyday is...
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...Innovation at 3M Corporation INNOVATION AND KNOWLEDGE ECONOMY - GROUP C 1 Contents 1 1 2 3 4 Background Source of Innovation Innovative Culture Lead User Research 5 Impact of Lead User Method 6 2 Click to add title in here Companies in Indonesia Background of “ Lead User Innovation” “ Traditional strategic planning does not leave enough room for innovation “ understand leading _edge customer needs to change the basis of Competition working closely with customer & understanding market need LEAD USER INNOVATION Definition of lead users Lead users refers to users who are ahead of the majority of the market on a major market trend, and who also have a high incentive to innovate. Producers seeking user innovations to manufacture try to source innovations from lead users - because these will be most profitable to manufacture 3 Milestone of 3M in Innovation 1902 The Minnesota Mining and Manufacturing Company (3M) founded The company has a long and famous history of innovation. They are known for such products as the Post-it which revolutionized the way individuals communicate, masking tape, and waterproof sandpaper. 1961 Medical Products Division, the first 3M division dedicated solely to health care, founded. The Health Care Unit was an important component of 3M’s business model, contributing a large percentage to the company’s revenue streams The unit had failed to introduce a successful product in almost a decade 3M is third in...
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...Gartner Business Process Management Summit 2013 13 – 14 March | London, UK | gartner.com/eu/bpm Aspire, Challenge, Transform: Driving Breakthrough Business Performance TriP rePorT The annual Gartner Business Process Management Summit was held on 13 – 14 March 2013, at the Park Plaza Westminster Bridge. This report summarizes and provides highlights from the event. SAve The DATe The Gartner Business Process Management Summit 2014 will take place on 19 – 20 March in London, UK. We hope to see you again! overview This year’s event was focusing on helping delegates break free from small scale, iterative BPM projects to deliver truly game-changing business transformation. In the opening presentation of the summit, Summit Chair John Dixon invited you to aspire to greater things, to challenge the status quo in your organizations and to transform your organizations using BPM. We carried this theme into our keynotes and track presentations, and we hope it has helped to spark some new ideas that will make a difference to you and your organization. TABle of ConTenTS Park Plaza Westminster Bridge, London, UK Tina Nunno speaking at the Gartner Business Process Management Summit 2013 2 3 5 Key Take-Aways Keynote Sessions Top of Mind Concerns — What Attendees Asked About Top 10 Most-Attended Sessions Attendee Snapshot Top 10 best-rated sessions Sponsors Post Event Resources 5 5 6 7 8 © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a...
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