Strategic InnovationAssassinator of

Companies & Markets

Claus Aasholm

What is innovation?Innovation: ( noun ) a new idea, device, or method; the act or process of introducing new ideas, devices or methods. Source: Merriam Webster DictionaryThe word “innovation” itself descends from the Latin words in and novare, meaning ‘to make new.’

What is innovation?Innovation is a new idea, more effective device or process.Innovation can be viewed as the application of better solutions that meet new requirements, inarticulated needs, or existing market needs.This is accomplished through more effective products, processes, services, technologies, or ideas that are readily available to markets, governments and society. The term innovation can be defined as something original and more effective and, as a consequence, new, that "breaks into" the market or society.

Innovation =

Creativity + Delivery

In what department in your company does innovation take place?

Innovation Type

Operational (Process)

Tactical(Product)

Strategic(Business Models)

Focus Improving processes to optimise delivery of an existing product/service to a defined market

Improving a market position by introducing new products/services or business model

The disruption and destruction of existing markets to create fertile soil for new markets

Measurements

Throughput, defects, quality, waste, line downs, yields, ROI

Market share, Customer satisfaction, Customer delight, ROI

Share price, Funding, Capital, Alliances, bankruptcies, takeovers

Department

Finance, Quality, ManufacturingHR, Training

Marketing, SalesProduct Development, Technology development

?Aim Fulfill existing

customer need cheaper

Understand emerging needs of customers and fulfill

Create a need for users they did not even know they had

Boundary The company/group The Market(s)

?

What is strategic innovation

Strategic innovation disrupts and destroys

The Starfish Business Model

USERS

CUSTOMERS

SUPPLIERS

ADVERTISERS

OTHERSTARFISH

Impact: 10x every 5 years

Who are using strategic innovation If you don’t explore new business models – you will go extinct McKinsey & Co

The large players according MIT

Competition

Collaboration

Assassination

Creation

Cannibalization

The battle for world domination

Find one error in this picture

Death of the Funnel

Google owns search (Dying)Apple now support add blockersAmazon Prime ExplodingFacebook Search used by 1B every dayLinkedIn dominates B2BMove from desk to mobileMove from homepage to Apps

Nobody is going to find your products or homepage anymore.

Unicorns are predominantly

from Silicon ValleyUnicorns1B$ Cap147 total53 in US13 in EU505B$ Cap

More Starfish Models

Why is it important

No Industry is safe

The operating logic of most companies is to compete in a well defined market

Economics is the science of choice in scarcity

What is needed?Innovation is difficult for well-established companies. By and large, they are better executors than innovators, and most succeed less through game-changing creativity than by optimizing their existing businesses.

McKinsey

Strategic Innovation - disruptionDoes not accept market rulesTakes advantage of asymmetric faults in marketCollaborate rather than competeStarfish model: Connects rather than ownsGet users to generate valueCreates new marketsCreate new usersDifferentiate between customers and usersExperimental rather than professional

If you can be disrupted, you will be disrupted

unlessyou disrupt yourself

Can you cannibalize your own revenue stream?

The Hedgehog principleMost companies are build around doing one thing really well and effective

WE ARE A SUCCESSFUL

COMPANY

You will not change what you believe is perfect

Rethink your market• From loyalty to empowerment• From efficient to intelligent• From low cost to no cost• From ownership to access

Time for a reflectionHow could you disrupt your own market and company?

Innovate like Google

Google Innovation• Differentiate between customers and users• Forget ROI – focus on providing max value for user • 20% of time allocated to passion projects• Organisation level does not dictated pay• Minimum 7 direct employees• Focus on user, learn from user, learn about user• Have user generate data, knowledge & Insights• Experimentation over perfection

Organisations don’t innovate

Engaged employees innovate

Thank You