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Innovation and Idea Generation Innovation and Creativity

Innovation

bringing ideas to lifeCre

ativity

coming up w

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Innovation = creative idea + implementation

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Innovation

‘……..is the process of harnessing creative activity to create

new value in new ways through new products, new services,

and new businesses. This value creation activity…also applies

to business strategy and processes.’

– Arthur D Little (Technology and Management Consultancy)

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The Innovation Process

Generate Ideas

Assess &

Validate

Prototype Test Trial &Compare

Roll Out

time, cost, people, skills, structure

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Drivers of Innovation

Competition•Direct•Indirect•New entrants

Regulatory, legal and patents•Litigation•Policies•Regulatory requirements

Technology advances•New techniques•Smaller, faster, cheaper, remote•Data processing capacity

People and society•Quality of life•Lifestyle drugs•Expectations•Social structures

Disruptive events•Climate Change•SARS•Bioterrorism•BSE

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Incremental and Disruptive Innovation

Incremental (or sustaining) innovation focuses on improving existing methods and techniques

– Extend application areas

– Improve efficacy, reduce side effects

– Reduce human error

– Redesign or refine for comfort, ease of use (eg. devices or surgical tools)

Disruptive (or radical) innovation results in new drugs, devices. Or techniques that redefine gold standards

– Introduce a new technology, eg. medical imaging, internet, wireless

– Sudden changes in available resources (time, space, money, raw materials)

– Redefinition of existing protocols or policy

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Innovation Equals Benefits

Reduce effort

Convenience

Environmental benefit

Simplify task

Reduce uncertainty

Enjoyment

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www.microwaveservice.co.uk

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Why Do Companies Innovate?

time

sales

Product 1

Product 2

Product 3

Image source: Cambridge Consultants Ltd

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Elements of Innovation in Organisations

Employees-knowledge-resource

Customers-needs

-opinions

Leadership-vision-culture

Technology-opportunities

-driver of change

Innovation

End-users-needs

-opinions

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Sources of Innovation

Universities and research institutions

– Novel concepts and techniques

– Access technology at very early stage

– Limited investment and risk

Biotechnology companies

– Development stage products

– Boost product pipeline

– Reduce risk of access to emerging technologies

Collaboration and joint ventures

– Partner on projects with defined objectives

– Bring additional skills from across disciplines

– Share risk and reward

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Why is Innovation Difficult?

The way we think, act and behave is influenced by:– Years of academic study and training– Daily habits, routines and patterns– Protocols, methods and approaches to problems– The people and environment around us

But...

Problems can not be solved by thinking within the framework in which they were created –

Albert Einstein (Physicist)

New ideas come from differences. They come

from having different perspectives and

juxtaposing different theories –

Nicholas Negroponte (Chairman of MIT Media

Laboratory)

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Thinking Outside the Box

Force connections with random object- Break obvious connections

- Opens new perspectives

Re-express- words, pictures, acting- describe to non-expert

Relate to other areas- generic words and phrases- transfer concepts

Challenge rules and assumptions- consider ‘impossible’ ideas- turn the problem on its head

wheel round metal move transport exercise

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How Many Ideas do I Need?

‘… start with around 3,000 bright ideas to end up with four plausible development programmes...the minimum needed to get just one winner’ - (Leaps of Faith, The Economist 18 Feb 1999)

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What Needs to be Considered?

For a technology idea to be successful you need:• An application• Target customer• Route to market

Internal factors

External factors

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Start with the Technology

How much development work is required?

Weeks, months, years, decades!

What technical skills and expertise are required?

Who needs to be involved to bring this to fruition

Are there any ethical, regulatory or legal hurdles?

Stem cells, GM foods, IVF treatment...

Do competitive barriers to entry exist?

Competing organisations, other technologies, intellectual property

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What is the Context?

What are the objectives of your organisation?

Research, grow, expand customer base...

What are your personal objectives?

Make money, get promoted, build a team...

Who are the stakeholders?

Your boss, employees, colleagues, funders, customers

Is the environment right?

Consumer opinion, economic climate, political policy

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What About the Market?

What is your market?

Is there unmet demand or trying to create demand

Is there a need?

Do existing products already address the market

Who are the customers?

Where, who, how many, will they pay, how much

What is the competitive landscape?

Direct, indirect, fragmented, concentrated, monopoly, threats

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Now Apply Assessment Criteria

Select 4 criteria you would use to assess your ideas, start with ‘quick wins’ and ‘investigate’ boxes

For each criteria mark out of 5 how well an idea meets the criteria

Assess as many ideas as possible

Are you able to eliminate ideas easily?

Is there a clear winner?

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Validate Using Assessment Criteria

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Due Diligence

• The process of investigation, performed by investors or their representatives, into the details of a company and its activities, such as an examination of operations and management and the verification of market size and other material facts

• If you don’t validate your idea someone else will

• Good validation of ideas requires objectivity

• Investors don’t get it right all of the time

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Innovation Takes Persistence and Patience!

Ecstasy

Despair

En

thu

siasmUps & Downs

Source: The Economist, 18 Feb 1999

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Further ReadingArticles

– The Theory Behind HBDI; www.herrmann.com.au– Open Your Company to New Ideas; M.Skapinker; Financial Times; 16 Jan

2001– Creativity: Gale Encyclopaedia of Psychology– ‘The Innovation Premium: Capturing the value of creativity’; R.S. Jonash

and T. Sommerlatte; Prism Q3 1999

Books– Crash Course in Creativity, B. Clegg and P.Birch– Leading the Revolution, G. Hamel– Innovator’s Dilemma, C.M. Christensen– Nevens et al (1999) Commercialising Technology: what the best

companies do in Harvard Business Review on Entrepreneurship, (Harvard Business School Press)

Web Links– www.livinginnovation.org– www.innovation.gov.uk– www.creativethinking.net

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"The real magic of discovery lies not in seeking new landscapes, but in

having new eyes"

- Marcel Proust