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KillerInnovationsIntroductiontoabetterwaytoinnovate,PhilipMcKinneypodcast,WhyInnovation?OtherApproachesABetterApproachBenefitsLessonsLearned,Agenda,InnovationAcceleration,Time,Impact,InnovationsarehavingalargerimpactThelifecycleofinnovationsisgettingshorter,TechnologyAdoptionisAccelerating,Phone,74years,Radio,38years,PC,16years,TV,13years,Internet,2years,Blogs,1year,Howlongdoesittaketogetto50millionusers?,TheInnovationReality,InnovationGapTheshortfallbetweenaorganizationsrapidlyrisingneedforideas/innovationsandtheirinadequatesupply,InnovationDelayThedelaybetweenthetimewhendecisionstoadoptstrategicinnovationsaremadeandtheireventualimpacttotheorganization.,InnovationImpact,Innovationhasincreasedinimportanceoverthelast10years,Innovationplaysanimportantroleinassessmentofcompanyvalue,Confidentinabilitytomanageandmeasureinnovationimpact,35%,73%,92%,Source:ArthurD.LittleResearch,0%,20%,40%,60%,80%,100%,ExecutiveViewofInnovation,87%rankinnovationasoneoftheirtop5prioritiesExecutivesboastthattheircompaniesexcelatinnovationExecutives,howevercouldntdifferentiatebetweenincrementalimprovementsandbreakthroughsVeryfewexecutivessaidtheirfirmshaveanykindofstructuredapproachtoinnovation,Source:DiamondClusterInternational,TechtrendGroup,TheChallengeofInnovation,MaintainefficiencywhilefosteringinnovationStressingbottom-lineresultswithoutrestrictinginnovationAdaptingtochangingmarketsandenvironmentswhilemaintainingstability,ValueFromInnovation,R&D,IncrementalInnovationstoexistingofferings,Creatingnewofferings/markets/industries,Source:HarvardBusinessReview,October2004,Whatswrongwiththecurrentapproachestofindideas?,Whatswrongwithcurrentbrainstormingapproaches?,InnovationsareeitherincrementalortotallyunrealisticRarelyanyrealfollow-upNoconfidencethattherearentbetterideastobehadLackofexecutive/organizationalsupport,IncrementalversusBreakthrough,IncrementalimprovementsReduceexpensesExtendbrand/productline,BreakthroughimprovementsFindnewmarketsCreatenewstrategicassetsLaunchnewbusinesses,EvolutionarychangetoolsBPR/TQM/SixSigmaFeatureenhancement,RevolutionarychangetoolsKillerInnovationLateralThinkingTRIZ/TIPS,KillerInnovations,Whatisakillerinnovation?,AKillerInnovationisdefinedassignificantandhighlyprofitabledeparturesfromcurrentofferingsorpracticesthatisdifficulttoimitate,ToolsThetoolstofind/create,rankandexecuteagainstkillerideasSkillsTrickstohelpchangeyourperspectiveandimproveyourabilitytoapplyempathicdesignthroughobservation,KillerInnovationApproach,KillerInnovationToolsUsingFIRE,FocusTheInnovationSearchFocustheproblemDepthisbetterthanbreadthforideaqualityIdeationStructuredquestionsthatdrivediscovery/insightRankTheIdeasWillthisideachangethecustomerexpectation?Willthisideachangethecompetitivelandscape?Willthisideachangetheeconomicsoftheindustry?ExecutionDefineclearmilestonesKillprojectsearly,QuestionbasedmethodologyBasedonSocraticmethodofaskingquestionstoeliminateideasthebestideasaretheonesleftstandingBuildaroundacoreof+70killerquestionsBasedon“reverse”innovationanalysisDesignedtounlockuniqueinsightsStructureisbasedona“gated”modelTestedHP,Agilent,CSCandmanystart-ups,HistoryoftheKIApproach,Tool:Focus,Focusthesearch,Movingintonewcompetitivearenas,Expansionintonewgeographies,Improvementinindustrystructure,Neworexistingcustomers,Innovationinproductsorservices,Innovationinvaluedeliverysystem,SearchAreasforInnovation,Sixdegreesoffreedom,Suchas,Creatinganewbusinessbysellingexistingproducts/servicestoexistingornew,unfamiliarcustomersegment,Creatinganewproductorservice,normallyinacocoonedmanner,Creatinganinnovationthatredesignsthebusinesssystemsufficientlytoalterthevalueproposition,Changingthevalueproposition,valuedeliverysystem,orcompetitiverelationshipsthatimprove/changetheindustrystructureorredefinetheindustry,Expandingintoanewgeographicareawithhighvalue-addedtransferfromexistinggeographyorwhentheactivityisnew,Developinganewbusinessinanindustrywithinwhichacompanyhasnotpreviouslycompetedorwhenthereisnooverlapincustomervalueproposition,New/Existingcustomers,Innovationinproductsorservices,Innovationinvaluedeliverysystem,Improvementinindustrystructure,Expansionintonewgeographies,Movingintonewcompetitivearenas,Source:TechtrendGroup,Focusonthecustomer,YUPPIES,YoungUrbanProfessionals,YUFFIES,YoungUrbanFailures,MOBY/DOBY,Mom/DadOlderBabyYounger,WOOFS,WellOffOlderFolks,SKIPPIES,SchoolKidswithIncome+PurchasingPower,“Sandwichers”,Adultscaughtbetweencaringfortheirchildrenandtheirolderparents,Whicharetherightsegments?,Tool:Ideation,Thetypicalbrainstormingsessionbeginswithasimplequestion.“Createsomenewproductideas”“Developsomedifferentiatorsforx”.yougetsimpleanswers.,TheCurrentMethod.,BetterQuestions=KillerIdeas,NeworExistingCustomersWhatemotional,psychological,orstatusbenefitdo(could)peoplederivefromusingtheproduct?Howcanyoucreateasocialorgroupexperiencewiththeproduct?IndustryStructureWhataresomeofthebasicassumptionsunderwhichtheindustryoperates?Whatexternaljoltshavethepotentialtosignificantlyimpacttheoperationalrulesoftheindustry?Product&ServicesInnovationWhousestheproductbecauseofsomebenefitwedidnotforesee?Whatregularlyusedmakeshiftscanwecaptureinaproductdesign?,ExploringBeyondtheObvious,SSubstitute?CCombine?AAdapt?MModifyMagnify?PPuttootheruses?EEliminateorminify?RReverseRearrange?,EverythingthatisnewisanadditionormodificationofsomethingthatalreadyexistsBasedontheanswerstothequestions,useSCAMPERtogenerateawidevarietyofideas,IdeaQuota,IdeaquotasforceyoutoactivelygenerateideasandalternativesThefirst1/3ofthequotawillbetheeasiestThesecond1/3willtypicallyextensionsfromfirst1/3Thefinal1/3willbethehardestyettypicallycontainthekernelofakillerinnovationAlwaysfillthequotaeveniftheideasseemfarfetchedoroutlandish.Thebestideascometothosethatworkatit.,CharacteristicsoftheBestKillerIdeas,Purpose-theyieldofhighqualityideasissignificantlyhigherwithaclearbusinesspurposeandasupportivebusinesssponsor.Timeliness-thedifferencebetweenagreatideaandaso-soideaismarket/technologytiming.Diversity-thepoolofcontributorsneedstobebroad,broaderthanyouintuitivelythink.PerspectiveChange-theverybestideascomethroughindividualslookingatthingsinadifferentway.CollaborativeDevelopment-environment,wherepeoplecancommentandbuildonideastherebysignificantlyincreasingtheoverallyieldofhighimpactideas.,SuspendDisbelief,LetsshelvethatforthetimebeingWhoisgoingtodoit?Ihavesomethingbetter.Wetriedthatbefore.Itwontfitouroperation.Itsagainstallourcombinedlogic.Notenoughreturnoninvestment.Itsgreat,but.,Someonemusthavealreadytriedit.Ithoughtofthatalongtimeago.Wecantaffordthat.Youllnevergetapproval.Youreonthewrongtrack.Dontrocktheboat.Themarketitnotreadyyet.Itsnotanewconcept.,Tool:RankTheIdeas,IdeaCriteria:KeyQuestions,MusthaveaYEStoatleastoneofthefollowing:Willthisideachangethecustomerexperience/expectation?Willthisideachangethecompetitivelandscape/position?Willthisideachangetheeconomicstructureoftheindustry?MusthaveaYEStothefollowing:Dowehaveacontributiontomakeinthisspace?Willthisideageneratesufficientmargintothebusiness?Foreachkeyquestion,giveascorefrom0to5.,IdeaCriteria:AbilityToExecute,Forthetop10ideasbasedontheKeyQuestions,scoreeachideafrom0to5forthefollowingquestions:Canwegetourgroups/teamsexcited?Willseniormanagementsupportit?Dowehavetheskill/expertisetopullthisoff?Canweaccessthecustomerspreferredchannel?Younowhavearankedlistofyourbestideas.,Tool:Execution,Execution=StageGateManagement,Source:TechtrendGroup,“TheBest”usesomefromofaMilestone/StageGateprocesstointroducenewproductsandservices,Skills:Observation,Whatdoyousee?,Whatdoyousee?,Minimumspacewhichcanrepresentthefullalphabet!Lookbeyondtheobvious.,EmpathicDesign(observationaldesign)In-housevisits/recordingIn-the-worldobservationsTrendSaf
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