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1、Killer InnovationsIntroduction to a better way to innovatePhilip McKinneypodcastkillerinnovationskillerinnovations Why Innovation?Other ApproachesA Better ApproachBenefits Lessons LearnedAgendaInnovation AccelerationTimeImpactInnovations are having a larger impactThe lifecycle of innovations is gett
2、ing shorterTechnology Adoption is AcceleratingPhone74 yearsRadio38 yearsPC16 yearsTV13 yearsInternet2 yearsBlogs1 yearHow long does it take to get to 50 million users?The Innovation RealityInnovation GapThe shortfall between a organizations rapidly rising need for ideas/innovations and their inadequ
3、ate supplyInnovation DelayThe delay between the time when decisions to adopt strategic innovations are made and their eventual impact to the organization.Innovation ImpactInnovation has increased in importance over the last 10 yearsInnovation plays an important role in assessment of company valueCon
4、fident in ability to manage and measure innovation impact35%73%92%Source: Arthur D. Little Research0%20%40%60%80%100%Executive View of Innovation87% rank innovation as one of their top 5 prioritiesExecutives boast that their companies excel at innovationExecutives, however couldnt differentiate betw
5、een incremental improvements and breakthroughsVery few executives said their firms have any kind of structured approach to innovationSource: DiamondCluster International, Techtrend Group.The Challenge of InnovationMaintain efficiency while fostering innovationStressing bottom-line results without re
6、stricting innovationAdapting to changing markets and environments while maintaining stability.Value From InnovationR&D86%14%Revenue62%38%Margin39%61%Incremental Innovations to existing offeringsCreating new offerings/markets/industriesSource: Harvard Business Review, October 2004.Whats wrong with th
7、e current approaches to find ideas?Whats wrong with current brainstorming approaches?Innovations are either incremental or totally unrealisticRarely any real follow-upNo confidence that there arent better ideas to be hadLack of executive/organizational supportIncremental versus BreakthroughIncrement
8、al improvementsReduce expensesExtend brand/product lineBreakthrough improvementsFind new marketsCreate new strategic assetsLaunch new businessesEvolutionary change toolsBPR/TQM/Six SigmaFeature enhancementRevolutionary change toolsKiller InnovationLateral ThinkingTRIZ/TIPS.Killer InnovationsWhat is
9、a killer innovation?A Killer Innovation is defined as significant and highly profitable departures from current offerings or practices that is difficult to imitateToolsThe tools to find/create, rank and execute against killer ideasSkillsTricks to help change your perspective and improve your ability
10、 to apply empathic design through observationKiller Innovation ApproachKiller Innovation ToolsUsing FIREFocus The Innovation SearchFocus the problemDepth is better than breadth for idea qualityIdeationStructured questions that drive discovery/insightRank The IdeasWill this idea change the customer e
11、xpectation?Will this idea change the competitive landscape?Will this idea change the economics of the industry?ExecutionDefine clear milestonesKill projects early Question based methodologyBased on Socratic method of asking questions to eliminate ideas the best ideas are the ones left standingBuild
12、around a core of +70 killer questionsBased on “reverse innovation analysisDesigned to unlock unique insightsStructure is based on a “gated modelTestedHP, Agilent, CSC and many start-upsHistory of the KI ApproachTool: FocusFocus the searchMoving into new competitive arenasExpansion into new geographi
13、esImprovement in industry structureNew or existing customersInnovation in products or servicesInnovation in value delivery system.Search Areas for InnovationSix degrees of freedomSuch as Creating a new business by selling existing products/services to existing or new, unfamiliar customer segmentCrea
14、ting a new product or service, normally in a cocooned mannerCreating an innovation that redesigns the business system sufficiently to alter the value propositionChanging the value proposition, value delivery system, or competitive relationships that improve/change the industry structure or redefine
15、the industryExpanding into a new geographic area with high value-added transfer from existing geography or when the activity is newDeveloping a new business in an industry within which a company has not previously competed or when there is no overlap in customer value propositionNew/Existing custome
16、rsInnovation in products or servicesInnovation in value delivery systemImprovement in industry structureExpansion into new geographiesMoving into new competitive arenasSource: Techtrend GroupFocus on the customerYUPPIESYoung Urban ProfessionalsYUFFIESYoung Urban FailuresMOBY/DOBYMom/Dad Older Baby Y
17、oungerWOOFSWell Off Older FolksSKIPPIESSchool Kids with Income + Purchasing Power“SandwichersAdults caught between caring for their children and their older parentsWhich are the right segments?Tool: IdeationThe typical brainstorming session begins with a simple question . “Create some new product id
18、eas“Develop some differentiators for x. you get simple answers.The Current Method .Better Questions = Killer IdeasNew or Existing CustomersWhat emotional, psychological, or status benefit do (could) people derive from using the product?How can you create a social or group experience with the product
19、?Industry StructureWhat are some of the basic assumptions under which the industry operates?What external jolts have the potential to significantly impact the operational rules of the industry?Product & Services InnovationWho uses the product because of some benefit we did not foresee?What regularly
20、 used makeshifts can we capture in a product design?Exploring Beyond the ObviousSSubstitute?CCombine?AAdapt?MModify Magnify?PPut to other uses?EEliminate or minify?RReverse Rearrange?Everything that is new is an addition or modification of something that already existsBased on the answers to the que
21、stions, use SCAMPER to generate a wide variety of ideasIdea QuotaIdea quotas force you to actively generate ideas and alternativesThe first 1/3 of the quota will be the easiestThe second 1/3 will typically extensions from first 1/3The final 1/3 will be the hardest yet typically contain the kernel of
22、 a killer innovationAlways fill the quota even if the ideas seem far fetched or outlandish.The best ideas come to those that work at it .Characteristics of the Best Killer IdeasPurpose - the yield of high quality ideas is significantly higher with a clear business purpose and a supportive business s
23、ponsor.Timeliness - the difference between a great idea and a so-so idea is market/technology timing. Diversity - the pool of contributors needs to be broad, broader than you intuitively think. Perspective Change - the very best ideas come through individuals looking at things in a different way.Col
24、laborative Development - environment, where people can comment and build on ideas thereby significantly increasing the overall yield of high impact ideas. .Suspend DisbeliefLets shelve that for the time beingWho is going to do it?I have something better.We tried that before.It wont fit our operation
25、.Its against all our combined logic.Not enough return on investment.Its great, but . . . . . .Someone must have already tried it.I thought of that a long time ago.We cant afford that.Youll never get approval.Youre on the wrong track.Dont rock the boat.The market it not ready yet.Its not a new concep
26、t.Tool: Rank The IdeasIdea Criteria: Key QuestionsMust have a YES to at least one of the following:Will this idea change the customer experience/expectation?Will this idea change the competitive landscape/position?Will this idea change the economic structure of the industry?Must have a YES to the fo
27、llowing:Do we have a contribution to make in this space?Will this idea generate sufficient margin to the business?For each key question, give a score from 0 to 5.Idea Criteria: Ability To ExecuteFor the top 10 ideas based on the Key Questions, score each idea from 0 to 5 for the following questions:
28、Can we get our groups/teams excited?Will senior management support it?Do we have the skill/expertise to pull this off?Can we access the customers preferred channel?You now have a ranked list of your best ideas. Tool: ExecutionExecution = Stage Gate ManagementSource: Techtrend Group“The Best use some from of a Milestone/Stage Gate process to introduce new products and servicesSkills: ObservationWhat do you see?What do you see?Minimum space which can represent the full alphabet!Look beyond the obvious .Empathic Design (observational design)In-house visits/recordingIn-the-world observa
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