Augsburg University

Innovation

Agenda

• Innovation - New Product Process– Identifying Hyper trends– Voice of customer – generating ideas– Concepts– Feasibility– Development– Scale-up– Launch– Post-launch

• Leadership & creativity• Summary

Innovation

Definition of Innovation:

“To begin or introduce something new; be creative”

* American Heritage Dictionary

More than 55 years ago William McKnight, CEO of 3M wrote:

“Those men and women to whom we delegate authority and responsibility are going to want to do their

jobs in their own way. Mistakes will be made, but if a person is essentially right, the mistakes he or she makes are not as serious in the long run as the

mistakes management will make if it is dictatorial and undertakes to tell those under its authority exactly how

they must do their job. Management that is destructively critical when mistakes are made kill

initiative.”

“Listen to anyone with an original idea, no matter how absurd it may sound at first.

Encourage, don’t nitpick. Let people run with an idea. Hire good people and leave them

alone. If you put fences around people, you get sheep. Give people the room that they need.”

McKnight Continued……….

Change is difficult

“Just as Socrates felt that it was necessary to create a tension in the mind, so that individuals could rise from the bondage of myths and half-trusts…so must we…create the kind of tension in society that will help men rise from the dark depths of prejudice and racism.”

Martin Luther King Jr. “letter from the Birmingham jail”:

Creative Tension

• Innovation/creativity creates tension:– Individual– Team– Group & function

New Old

• The true process begins when you start getting some flack

Sony Executive VPDiscussing What is Wrong

with Sony

“We need more crazy people.”

InnovationWhy Products Fail…..

Why do most new products fail?– Leadership– Teams– Group think– Poor advertising/PR support– Value proposition– Focus– Team turnover– Poor product performance– Priorities change– Market dynamics– Competition

Criteriafor New Markets

• Entitlement of at least $100 million dollars• Market Size

– Significant enough to warrant investment• Competitive Advantage

– Differentiated Product– Based on a core competency– Patent Protection– Changes the basis of competition– Global Opportunity– Category Management

Sports and Leisure Ideation

Step 1

Identify and Define Hyper- Trends

Step 2

Identify Business Innovation Opportunities

Step 3

Rank Attractiveness of Opportunities (C&E)

Step 4

Select Portfolio of Candidates (SWOT) Jan 12

Step 5

Develop High Level View of Opportunities Feb 20

Step 6

Selection of Portfolio of Candidates by Op Comm

Wk of Feb 23

Step 7

More Detailed Analysis of Final Candidates (Mkt Attractiveness Sheets)

Step 8

Rank Attractiveness of Opportunties (C&E,RWW, SWOT)

Jan 19

Step 10

Selection of the Big Tunas (Med/Long Term)

Mar 26

April 6

Step 9

Recommendation for Opp Comm Selection and Resourcing

Step 11

Resource Teams- Phase 1

Process MapBusiness Innovation

Opportunities

Process Roadmap to Prioritize Opportunities

Concept Dev’tFeasibilityPost-Launch

Ideas Scale Up Launch

Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7

1 2 3 4 5 6

Newe Product Process System

Goal of Each Phase

Initial Business Plan &

Technical Solution

Stable Prod’n & Sales/Support

Systems

C0 Virtual Build

Complete

Identify Best

Market Opportuni

ty

Identify Superio

r Concept

s

Robust Product &

Valid Value

Proposition

Scaled Design/ Process

Market AssessmentInitial Segmentation and Market Assessment

BCC

ABC

AAB

BCC

ABC

AAB

Op

po

rtu

nit

ies

Competitive Position

-10

0

01

00

20

0

30

0

-100 0 100 200 300

Segment 1

Secondary Research

Purpose, Planning, and Customer Selection

A

B

C

D

EF

A

B

C

D

EF

Site Observation and Contextual Inquiry Survey DesignConducting Interviews

Translation and Processing into Customer Requirements KJ

KJ

Translation Worksheet NumberName

Any KJ Images:

Key Items: Customer Requirement(s)/Needs(s):

Customer Voice:

Customer Requirements Validation Survey

Defining Product and Service Requirements (QFD)

Concept Generation, Selection, and Testing (Pugh)Sum of “+”

Sum of “-”Sum of “s”

Criteria: 1 2 3 4D 5 6 7

ATUM

Sum of “+”

Sum of “-”Sum of “s”

Criteria: 1 2 3 4D 5 6 7

ATUM

Concept Engineering Roadmap

Customer Selection Matrix

Market Segmentation

Voice of Customer

Pugh Concept Matrix

House of Quality

Three Pillars of Innovation  

Organizational Capacity

Driving Innovation

TeamCapacity

IndividualCapacity

Innovation DefinedInnovation=Creativity x Risk Taking

ü   Creativity is the ability to develop new ideas 

ü   Risk Taking the ability to drive new ideas forward in the face of adversity

Innovation is the ACT of introducing something NEW

Creativity

Ris

k-T

akin

g

Innovation

Risk-Taking x Creativity = Innovation

Building Organizational Capacity

Innovation happens in companies and organizations that have the following…..so ask

yourself these questions:

Is there a structured innovation process designed to focus on increasing both the quantity and quality of creative ideas?

• Is there a Senior Executive charged with being a “Sponsor?”

• Are there opportunities for cross-business-unit or cross division synergy?

• Are there idea-generation opportunities provided away from daily work?

• Is attention given to anticipating future customer/citizen/client needs—unarticulated needs that they may not sense?

• Is there an understanding and a tolerance for risk?

• Is there a willingness to tolerate failure?

• Is there a culture of learning at all levels=to keep everyone at the “top of their game?”

 Source: Research Conducted By Susan Harper, Ph.D., Consultant with Synergy, Inc., Creatrix Consultant

Sel Becker, Ph.D. Professor Emeritus, University of Chicago Graduate School of Business

Building Team Capacity

AIM What’s your purpose—breakthrough ideas/product extensions?

ASSESS What’s the Creatrix Profile for this aim—this purpose?

ACTIVATE The Creativity and Risk-taking DRIVERS

APPLY Develop and implement new ideas

Creativity

Ris

k T

akin

g

Modifier

Practicalizer

Planner

Sustainer Dreamer

Challenger Innovator

Synthesizer

Creativity

Ris

k T

akin

g

Modifier

Practicalizer

Planner

Sustainer Dreamer

Challenger Innovator

SynthesizerSynthesizer

Select a team based on the AIM

The Creatrix Inventory©

Creativity

Ris

k T

akin

g

Modifier

Practicalizer

Planner

Sustainer Dreamer

Challenger Innovator Exposes

sacred cows, likes taking risks

May be perceived as critical

Backbone of the organization, gets things done.

May get stuck in a rut.

Sense break-throughs Won’t compromise

Fixated on ideas Single minded

Lot of ideas Unmined gold

Very creative Under-achieving

Constant Improvements

Incremental change Usually liked

May not fight hard for a solution

Action oriented Politicians

Compromiser May be Impatient

Synthesizer• Endless possibilities

• Creative• May avoid risk

• Just short of break-throughs

• Map makers• Good staff people

• Many alternatives

• Avoid risks• May not be action orientated

Building Team Capacity

Creativity Drivers

 

Ambiguity

Independent

Inner-Directed

Uniqueness

Risk-Taking Drivers 

Authentic

Resilient

Self-Accepting

 

 

 

Creativity & Risk-Taking Drivers

Activating Creatrix DriversAMBIGUITY

Work with the information you have—not asking for more details.

Ask, "how might this work?" rather than, "here are the problems.

"Have meetings without Agendas to get new ideas.

INDEPENDENT

Act without checking with others

Do what you want to do rather than what others always expect

Empower others

INNER-DIRECTED

Ask, "What’s my/your idea?

List five new ideas everyday for a week

Diagram as many different things that don’t initially seem to go together

Follow hunches

UNIQUENESS

Appreciate the value of everything different—ask people for their opinions who you normally would not

Find a special talent in everyone you work with, even those who you don't like

Hire people who are not like you

AUTHENTIC

Say it how you see it, and then live with others' reactions

Say, “I disagree.

Readily give feedbackState a controversial opinion

RESILIENT

Focus your energy on tenacity

Ask, "what would I do differently next time”—not focusing on what mistake/s you’ve made.

Study history - focus on obstacles that great leaders overcame

SELF-ACCEPTING

Acknowledge your mistakes quickly and move on

Look for the good things that happened in a bad situation—rather than beating yourself up

Review a list of all your talents when you think you could have done a better job

Say “I did” /we did rather than I/we should have!

Ten Challenges• “We don’t have time for this stuff!”• “We have no help!”• “This stuff isn’t relevant!”• “They’re not walking the talk!”• “This stuff is .”• “This stuff isn’t working!”• “We have the right way!”• “Who’s in charge of this stuff?”• “We keep reinventing the wheel!”• “Where are we going?”

Summary• Lessons learned:

– Marketing is not brain surgery– Innovation is not a linear path– Lessons will be repeated until they are learned– Definition of insanity……– Growth is mandatory - Eat or be eaten!– Growth is rarely without tension or pain– The art of the pre-sell– “If it was easy everyone would do it” – Art Fry– Bad bosses are a fact of life- choose to learn from them– You learn more from your failures than you do from your successes – failure is

inevitable– Color outside the lines– Short- term versus long-term– Follow your passion– Seek out differences of opinion– Opportunities rarely appear Monday morning @ 9:00am– Leadership versus management