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Innovate Your Way to Continued Success
Agenda• Why is Innovation Needed• What is Innovation &
Creativity• How to Foster Innovation• Examples Abound• Becoming Innovative
Agenda• Inside/Outside the Box• Quality Ideas• S.C.A.M.P.E.R• Questions?
“The success of corporate R&D is on every C-suite agenda. Yet wide disparities persist
in how well innovation investments actually pay off. As a consequence, R&D is
often seen as a black box, where large sums of money go in and innovative
products and services only sometimes come out.”
Global Innovation 1000
Why Innovation is Needed
INNOVATION, according to Marshall McLuhen
• Enhances Something: Think about how Google was a late entrant into search, but lapped the field with its simple approach.
• Eliminates Something: Think about how Charles Schwab eliminated the need for stock brokers, by connecting the back office of the trading house directly to the customer.
What is Innovation
• Returns Us to Our Past: The desire to have home cooked family meals has led to the proliferation of underground dining and slow food restaurants.
• Over Time Reverses into Its Opposite: Think about how e-mail was going to set us all free but instead enslaved us with its ubiquitous and overwhelming demands.
What is Innovation
Creativity means looking at the same information as everyone else,
and seeing something different.
What’s Creativity
Why Innovation is Critical to Your
Survival
• Challenges exist everywhere, from global competition, rapid rate of change in technology, changing demographics/ population characteristics, etc.
• PERVASIVENESS of software, mobile, connectivity.
• Drive for performance improvement.• D&B study revealed for each successful
new product introduced, you need 50-60 other ideas in your pipeline.
Why it’s Critical
• Rise of China as an innovation powerhouse.
• Too big to fail no longer valid protection.
• In 1958, the average life span of an S&P 500 company was 58 years. Today, it is less than 18 years.
Why it’s Critical
How to foster a culture of innovation
• Commitment from management‘s a MUST. Without it…don’t bother!
• Stop thinking, start doing.• Free your mind.• Visualization.• X.• X.
Fostering Innovation
• Have a MISSION that truly matters, inspires others by making emotional connections with them.
• You need to plan…and PLAN TO FAIL.• See innovation as an ongoing pursuit.• Get symbolic! Symbols represent the
underlying values of the organization, and they come in many forms: value statements, awards, success stories, posters in hallways, catch phrases, etc.
Fostering Innovation
• Colgate Palmolive Global R&D Group initiated a “recognition economy” by giving out symbolic wooden nickels to colleagues that made noteworthy contributions to their projects.
• Symbols also depicted as organizational stories and folklore that live on.
• Create an IDEAS program for your organization and include everyone.
• You MUST have passion!
Fostering Innovation
Examples Abound of Innovative
Organizations
• Google 8 pillars of innovation:– Embrace BLUE SKY thinking.– Employees dedicate 20% of their time to
innovation, by giving them INNOVATION TIME OFF. “Moonshots.”
• Adobe KICKBOX campaign: Gives its employees a box filled with creativity tools including $1000 credit card to spend on innovative pursuits.
• Amazon key principle: “Invent and simplify.”
Examples
Examples
• Brad Bird brought in by Steve Jobs, John Lassetter to ‘shake things up’. He delivered Incredibles & Ratatouille:– I said, “Give us the black sheep. I want artists who
are frustrated. I want the ones who have another way of doing things that nobody’s listening to. Give us all the guys who are probably headed out the door.” A lot of them were malcontents because they saw different ways of doing things, but there was little opportunity to try them, since the established way was working very, very well.
PIXAR
• Toyota’s Innovation Factory: – A million creative ideas EVERY year ( 2,500 new ideas
implemented per day.)– Pursuit of the “Elegant Solution” to May is about
“finding the aha solution to a problem with the greatest parsimony of effort and expense.” May argues at Toyota, you get elegance from creativity, simplicity, intelligence, subtlety, economy, and quality.
– To manage risk & uncertainty, you have to be an artist and scientist.
– Continually ask: “Is there a better way?”– The relentless pursuit of perfection.
TOYOTA
• Toyota Innovation Factory: – Remove innovation “temptation” blockers.– DON’T try to hit a home run.– Avoid “bells & whistles” customers don’t care about.– Avoid solving problems frivolously (Brainstorm trap.)
TOYOTA
• Tesla innovation based on “High End Disruptors”– Produce innovations that are leapfrog in nature, making
them difficult to imitate rapidly.– Outperform existing products on critical attributes when
launched.– Sell for a premium price rather than a discount.– Target incumbents’ most profitable customers, going
after the most discriminating and least price-sensitive buyers before spreading to the mainstream.
TESLA
• Tesla innovation based on “High End Disruptors”– If you compare a Tesla to a comparable combustion
engine vehicle/electric vehicle, you’d see Tesla’s architecture is completely different. Its systems and drive train are engineered from the ground up around the battery. In stark contrast, other automakers simply insert the battery as a module into a standard platform. Some of Tesla’s subsystems, like traction control, are based on completely different technologies than a standard car.
TESLA
• Intuit:–Gives out a Leadership award to its
executives that help to create start-ups inside the company.–Gives its best innovators three months
of “unstructured” time that they can use in one big chunk or spread out over six months for part-time exploration of new opportunities.
Examples
• Samsung Open Innovation Center:– Samsung Accelerator:
http://samsungaccelerator.com/ – Samsung Strategy & Innovation Center:
www.samsung.com/us/ssic
Examples
Become innovative in everything you do
• There are no silver bullets or magic lists. Only environments where innovation is MORE likely to occur.
• Always talk to and observe your customers, focusing on solving their problems:– Dan Buchner, P&G product development had his
team spend time in customer’s homes watching them. Led to the launch of the Swiffer product line.
• Record all of your ideas and thoughts about problems.
Becoming Innovative
• Don’t think REPRODUCTIVELY: Most people settle on the most promising approach based on our past experiences.– We tend to exclude other options as we work within a
clearly defined direction towards the solution. BREAK THIS PATTERN OF BEHAVIOR!
– Cultivate your creativity by implementing the following 2 approaches:• Constantly try to improve your idea, product, service: Early
ideas are usually not your best ideas, as they are only partially formed; and• Challenge your assumptions: To test an assumption, reverse it
and try to make the reverse work.
Becoming Innovative
“The test of an invention is the power of [the] inventor to push it through in the face
of staunch - not opposition, but indifference - in society.”
Edwin Land, Polaroid co-founder
• Sketch your ideas.• Use “lateral thinking skills” (Paul Sloane)
entails looking at things in an entirely NEW way.
• Employ “wrong thinking”:– Great inventors engage in divergent (“wrong”)
thinking, which allows them to explore a full realm of possibilities for a solution – no matter how silly or far-fetched.
– They’re not necessarily concerned with the most logical solution, and certainly not with one that draws on “conventional wisdom.”
Becoming Innovative
• Mix different ideas:– Look for weird combinations.– How can you mix your products & services
with unrelated offerings?• BBC celebrity stock exchange, Celebdaq. You can take a future
option on the media cov’g for a chosen celebrity and watch your option rise or fall in value.• Gutenberg printing press combined the flexibility of a coin
punch with the power of a wine press.• Combine 2 soft metals (iron, tin) creates strong alloy (bronze.)• Trevor Bayliss designed the windup clock radio.• Bicycle mechanics developed the airplane.• US Dept. Defense gave rise to the Internet
Becoming Innovative
“We’re taught to do things the right way. But if you want to discover something that other people haven’t, you need to do things the wrong
way… When I was doing my vacuum cleaner, I started out trying a conventionally shaped cyclone, the kind you see in textbooks. But we
couldn’t separate the carpet fluff and dog hairs and strands of cotton in those cyclones. It formed a ball inside the cleaner or shot out the exit
and got into the motor. I tried all sorts of shapes. Nothing worked. So then I thought I’d try the wrong shape, the opposite of conical. And it
worked.”
Sir James Dyson
“In-the-box” Versus “Outside-the-box”
• Thinking "inside the box" is analogous with the current, and often unnoticed, assumptions about a situation.
• Thinking “Outside the box” entails thinking differently, unconventionally, or from a new perspective.
• 9 Dot Puzzle.
“Inside” V.S. “Outside” the Box
Begin With QUALITY Ideas
• Wide-ranging ideas are often irrelevant to the task at hand and therefore less actionable. Wide ranging ideas generally only skim the surface of an issue and are actually quite shallow rather than truly innovative in nature.
• Foster an active mental process of cutting across existing thought patterns to create new thought combinations.
• Suspend judgement because we typically reject thought combinations that don’t fit our experiences, or seem unrealistic or impossible. Because the initial result of this new thought combination is often pretty absurd and certainly not relevant.
QUALITY Ideas
• This thought change “movement” (DeBono) isn’t easy. It requires deliberate set up and careful coaching. Requires direction, particularly the creation of a “box” in which to create.
• Need to have the direction related to the business objectives you face- organization and product category constraints, timing, marketing issues, profitability goals, sales channels - all form “the box.”
QUALITY Ideas
Einstein’s SCAMPER
• S – Substitute• C - Combine• A – Adapt• M – Magnify, minimize, modify• P – Put to other uses• E – Eliminate• R – Rearrange or reverse
SCAMPER
AskQuestions!
