Lean Business DesignCreating value in highly uncertain markets
through continuous innovation
Jeff Anderson @thomasjeffrey
#leananalytics
#leanstartup#Kanban
#agile #bmgen
#leanuxleanchangemethod.com
- 2 -
Engineer Product
Build a Change Backlog
Pilot (maybe)
Build a Change Backlog
Launch 1st
Shipment
a solution is
built that
addresses
something that
is not a real
problem to the
organization
Realize your
business solution
according to
spec, and fulfill
requirements
stated in the
plan
A large amount
of effort is spent
building the
“perfect” solution
without
understanding
which features
contribute to
business success
Bugs in the process
are ironed out,
organizational
change is managed,
and the solution is
given a shakedown
to ensure high-
quality
organizational
infrastructure has
now been built
around a solution
that may never
materialize
anticipated ROI
Release the solution
The company is at
risk of material loss,
as it tries to
optimize outcomes
and activities
around a solution
that has is flawed on
multiple dimensions
A solution without a problem, a stakeholder, or impact
Design an action
plan based on
gut, or maybe
research
Plan contains a
wealth of
unverified
assumptions
about your
customer,
product, and
supporting
market
a valid problem
is addressed, but
with a solution
that will not
deliver
anticipated ROI
The solution
does not address
the problem for
a large the next
set of
stakeholders to
provide
anticipated ROI
Define Business Plan
The traditional approach to making business decisions does not adequately address
the challenges of today’s market, technology, and business uncertainty
In today’s constantly changing environment, successfully following a plan guarantees a failed
business outcome
- 3 -
Lean Business Design provides a structured method for organizations to
successfully make & execute decisions in a highly uncertain business environment
through rapid, continuous learning
Idea
“I think our willingness to drastically
cut prices in order to reduce churn is
hurting our profitability…”
“we can significantly reduce churn and maintain
profitability if we provide better post
installation support…”
Generate fresh thinking through
cocreative, brainstorming
techniques
ExplorePerform enough research to back
up your assumptions with
measurable hypotheses
Experiment
“
Validate different solution options by
testing them on a small, but relevant
user base
“Let’s confirm that our new Proactive
High-Value Customer Support Squad
can improve profitability by rolling it
out to all of our users”
Roll out the solution to the entire user
base and continue to measure for
effectiveness
Scale
“let’s try out different ways to offer better post
installation support service to valued customers and
validate the impact on churn…”
Lean Validation Cycle
• Use change as a competitive
advantage
• Provide market-leading offerings
• Accelerate your ability to convert
assumptions into fact
• Building out the ideas that are
revenue-generating faster
• Abandoning ideas that won’t gain
market traction earlier
- 4 -
• Run surveys and Analyze
current key metrics to
understand where critical
challenges exist
• Run dedicated, collaborative
brainstorming sessions to
generate innovative solutions
• Investigate and interview your
customers to understand
essential areas of pain
Generate fresh ideas to
tackle critical business
challenges
Idea Explore Experiment Scale
Combine left and right brain
thinking to identify the Levers
that will have the most impact
on your market
Perform enough
research to back up
your assumptions with
measurable hypotheses
Validate different
solution options by
testing them on a small,
but relevant user base
Roll out the solution to
the entire user base and
continue to measure for
effectiveness• Formulate potential solution
hypotheses including
customer interviews,
customer discussions, & quick
and dirty usability testing
• Refine hypotheses through
through Analytics, focus
groups, & surveys
• Define the key measure to
tell you if the business is
improving, and a “line in the
sand” that describes business
success
Create your hypotheses using
qualitative means and
formalize them using
quantitative ones
• Validate solution hypotheses
through solution interviews,
prototypes, and incomplete
and/or manual
implementations
• Validate alternate solutions by
testing them against a
separate user base, measuring
customer impact
• Analyze all results for evidence
of being able to move your
organization towards its “line
in the sand”
Iterate your way to the right
solution, first by testing
customer through discussion
and then by testing through
behavior
• verify that your hypotheses
still hold weight once rolled
out to all users
• Continue to optimize the
solution using an experimental
approach, incrementally
moving your organization to
its “line in the sand”
• Start looking at other key
challenges within the
organization, repeating the
learning cycle
Validate your solution of
scale, refining as necessary
Business owners accelerate validation of unproven assumptions behind a
hypothetical solution through experimentation and evaluation
- 5 -
Generate
fresh ideas to
tackle critical
business
challenges
Explore
Scale
Perform
enough
research to
back up your
assumptions
with
measurable
hypothesesValidate different
solution options
by testing them
on a small, but
relevant user
base
Roll out the
solution to the
entire user
base and
continue to
measure for
effectiveness
• Competitor, guerrilla, and
anonymous user testing
• Surveys
• Customer lifecycle,
segmentation, and market
analytics
• Ethnographic research
• Business model generation
/ canvas
• Design Thinking
• Existing KPI Reporting and
analytics
• Landing page to nonexistent
features
• Pre-ordering nonexistent
products
• Clickable prototypes
• Manual solution
• Manual Backend
• Complete MVP
• A/B testing
• Customer lifecycle,
segmentation, and market
analytics
• Cohort analytics
• Surveys
Idea
Experiment
Lean Startup provides a variety of ideation, research and experimentation techniques to
define and validate the assumptions behind your solution
Problem exploration:
Validate that you have a
problem worth solving
through problem
exploration interviews
The Mafia offer:
Validate your solution by
making an offer so
compelling that it is an
offer “you can’t refuse”
The smoke test:
Validate your solution has
the right messaging to
attract a sizable market by
tracking clicks on a
“dummy” landing pageThe Wizard of Oz:
Validate your solution
with an automated client
interface that “front”, a
solution “operated by
monkeys”
Concierge MVP:
Validate you have the
right solution through a
hands-on, manual
implementation
A/B testing:
Evaluate solution options
by releasing them to a
subset of your users and
validating the impact on
customer related metrics
Preorder nonexistent
product:
Receive purchases for a
product that doesn’t yet
exist
Different types of research/experiments are used to discover and validate
business assumptions depending on where you are in the business development
lifecycle
Other methods of research and validation include:
• Ethnographic research & contextual inquiry
• Competitor usability tests
• Anonymous user testing
• Guerrilla prototype testing
• Surveys
• Feature stubs
• Cohort, funnel, and segmentation analytics
Generate Idea Explore Idea
QualitativelyExplore Idea
Quantitatively
Design
Experiment
Partial
Rollout
Validate
QualitativelyFull Rollout
Verify
Quantitatively
Get close to
affected
stakeholders
through
structured
interviews and
brainstorming
sessions
Refine your
idea into a
number of
candidate
hypotheses
with ballpark
metrics of
success
Multiple
iterations of a
solution may
be required
Deliver a
partial rollout
of the
solution to
validate the
impact
Solution does
not address
stakeholder
needs
Do we need to
revisit our
understanding
of the idea?
Validate
assumptions
against a
small, but
relevant
stakeholder
base
Determine
whether things
look right from
a qualitative
perspective
Once the
solution passes
qualitative
validation, we
then roll it out
to all
stakeholders
and start
gathering
quantitative
metrics
Measure your
hypothesis
against the
complete
stakeholder base
The 2 phase
validation allows
us to achieve
balance between
speed & learning
Make and implement business decisions using an experiment driven process
informed by stakeholder collaboration and comprehensive analytics
AbandonSolution does
not have a large
enough
business impact
Abandon
Problem is not
a significant
impact to the
business
Abandon
Solution does
not adequately
address a large
enough
problem
Abandon
Generate
fresh thinking
through
cocreative,
brainstorming
techniques
Explore Experiment Scale
Review
existing
reports,
analytics,
surveys,
stakeholder
feedback,
and other
sources of
insight
Build your
Minimum
Viable
Solution, the
smallest
solution that
you feel will
move the “line
in the sand”
Refine
hypotheses
through
Analytics, focus
groups, &
surveys
Define the key
metric of
success to
measure impact
of your idea & a
“line in the
sand” that
describes
business
success
Coordinate
work across HR,
Finance,
Operations and
technology to
prepare for the
experiment
Update your
data assets to
support the
analytics
required to
effectively
measure impact
Use analytics
capability to
continually
measure impact
over time
Use analytics
capability to
measure
impact at small
scale
Idea
- 8 -
A Lean Innovation Colony acts as an organizational construct that can allow the
enterprise to capitalize on truly disruptive innovation enabled through Lean
Business Design
Lean Innovation Colonies
should be:
• Distinct but connected
• Focused on learning
• Accelerates value creation
• Ecosystem of innovation
Invests in early stage
Startups based on the
investment hypothesis
Aquires later stage
Startups based on the
investment hypothesis
Incubate early stage
Startups based on the
investment hypothesis
The Innovation Colony manages
innovation from a distance, a
combination accelerator, angel
investor, and venture capitalist
The Enterprise
capitalizes innovation
colonies, based on a
common investment
hypothesis, one loosely
based on how the
original business
provides valuein
Appendix A – Lean Business Design Methods
Business Model Generation
Customer Development
Imagine innovative new business models and supporting products and services using
highly visual, collaborative techniques to encourage coordination and iteration.
Accelerate your ability to evaluate and prioritize different solutions against each other,
across the enterprise.
Brand -new products and services require that customers are developed and new
markets are created. Validate that you have a problem worth solving and a solution
worth buying through interactive and iterative customer interviewing techniques that
support a scientific approach to product development.
Lean Business Design ports the following methods and techniques to the
enterprise with the purpose of fostering innovation at scale
Accelerate your ability to understand whether you can create a viable business model
based on one or more products and services. Realize business value through
experimentation and validation.
Lean Analytics For StartupsMeasure innovation using an empirical
data driven approach. Provide real-time
insight into the progress of various
innovation initiatives through the use of
customer lifecycle metrics, innovation
accounting, and tracking of short-term and
strategic business outcome related metrics.
Lean UX For StartupsEnhance user experience and user centric design
by testing the impact of improved user experience
on key business outcomes that are measurable.
Combine open-ended, qualitative user research
techniques with more quantitative customer
analytics to deliver the customer experience that
has the highest long-term impact on business
outcomes
Lean Startup Method
Agile Development
Support highly volatile markets by building technical assets
that are "change tolerant". Leverage evolutionary design
and development techniques that enable high feedback
through superior quality. Allow teams to support the
"fearless change" mindset.
Kanban
Managing knowledge work through visual, adaptive
processes. Enable Lean thinking in the sphere of innovation
allowing knowledge workers to focus on the highest value
first, continuously improve, and remove bottlenecks that
interfere with value creation.
Lean Value Delivery leverages the following methods and techniques to enable
enterprises to innovate at scale
Appendix A1 – Lean Business Desing Stack
We have helped our clients manage uncertainty with the “Lean Business Design
Stack”
#leanvalue
The stack provides a mechanism to:
• Document your plan
• identify the riskiest parts of your plan
• track experiments to validate assumptions
Use the Stack by following these four iterative steps
1. Co-Create Your Plan with multiple
stakeholders
2. Identify the Riskiest Parts of Your
Plan
3. Validate Business Assumptions Through
Product Experiments
4. Track Progress through Business
Oriented Metrics of Success
Customer
ProblemsKey metrics
of successProductKey
ActivitiesKey Partners
Cost / Effort Revenue Stream
Channels
Who are our Key Partners?
Who are our key suppliers?
What Key Activities does our
Product Require (e.g. to Build, to
Support, etc.)
What competitive alternatives
exists in the marketplace?
What are the key metrics that will
tell us how our product is doing?
What are our key customer
problems?
What channels will be leveraged to
have our Product reach our
Customer Segments?
What are the most important costs drivers inherent in our Product?
What Key Resources and
Technology Capabilities does our
Product leverage?
What is our Unique Value
Proposition to our Customer
Segments?
What are the major
features of our solution?
Which customer segments
are being targeted?
What are the most important costs drivers inherent in our Product?
What will be the impact on people and other resources?
How long do we think it will take (back of a napkin)?
Which Key Activities do Partners
perform?
Which Key Resources are we
acquiring from our Partners? Key
Resources
Start with the product canvas, a collaborative, lightweight way to document and
continually update assumptions behind your business model
The top riskiest business assumptions are extracted from the canvas, so that they
can be validated through experimentation1. Outline objectives
that realize your
business model...
… Using a 2-3 month
look ahead view
2. Extract riskiest
assumptions to
build a…
5. Draw a line in the sand and
determine value for your success
metric4. Align MVP to 1 metric
that matters
Decompose your6.
f
o
r
success criteria
into a customer
lifecycle funnel
7. Validate MVP assumptions through
introduction of feature experiments
8. Update the business model based on
the outcome of experiments
… Minimum Viable
Product
3. Map / Align MVP with your
business objectives
to understand
customer impact
LearnBuild
Measure
Feature
Experiment
The experimental design factory is used to
track the progress of each MVP as they
are used to validate the product canvas
1. a candidate plan is developed based
on validating the riskiest portions of
2. specific planning objectives are
refined by extracting the top 3
riskiest canvas elements (hypotheses)
into an MVP
3. research and other forms of
“experiments” are used to create, and
then validate measurable success
criteria for the MVP
4. as experiments are introduced to the
market, they are evaluated against
these success criteria
5. learnings are captured, and used to
update the business model and
determine new experiments to run, or
a new MVP to validate
Appendix A2 – Lean Startup Method
- 19 -
The Lean Startup Method enables business innovation through a rigorous learning
cycle where business models are designed and validated through short
feedback loopsSuccessfully creates value in highly uncertain circumstances by first validating your problem, then
your customer, and finally your market
Problem exploration:
Validate that you have a
problem worth solving
through problem
exploration interviews
The Mafia offer:
Validate your solution by
making an offer so
compelling that it is an
offer “you can’t refuse”
The smoke test:
Validate your solution has
the right messaging to
attract a sizable market by
tracking clicks on a
“dummy” landing pageThe Wizard of Oz:
Validate your solution
with an automated client
interface that “front”, a
solution “operated by
monkeys”
Concierge MVP:
Validate you have the
right solution through a
hands-on, manual
implementation
A/B testing:
Evaluate solution options
by releasing them to a
subset of your users and
validating the impact on
customer related metrics
Preorder nonexistent
product:
Receive purchases for a
product that doesn’t yet
exist
Different types of research/experiments are used to discover and validate
business assumptions depending on where you are in the product development
lifecycle
Other methods of research and validation include:
• Ethnographic research & contextual inquiry
• Competitor usability tests
• Anonymous user testing
• Guerrilla prototype testing
• Surveys
• Feature stubs
• Cohort, funnel, and segmentation analytics
Validate
Customer
Problem
Validate
Problem
Solution Fit
Gain Market Empathy whom Tune Engines of Growth
Build
StickinessEnable
Virility
Optimize
Revenue
Model /
Price Engine
Scale the
Business
The Lean Startup Lifecycle
Ethnographic
Research &
Contextual
Inquiry
Problem
Exploration
Find a real, poorly
meant need for a
reachable market
Competitor
Usability
Tests
The Mafia
Offer
Surveys
The
SmokeT
est
Concierge
MVPThe Wizard of
Oz
A/B
Testing Surveys
Accelerate learning using the Lean Startup lifecycle; Validate the problem first, then
the solution, and finally the market
Preorder
Nonexistent
Product
Figure out how solve the
problem in a way that
people will accept
Build the right
features &
functionality that keep
users around
Features fuel both
organic and
artificial growth of
users
Build a sustainable,
sustainable business
with the right margins
in a healthy ecosystem
Achieve a
successful exit
on the right
terms
Do you have a problem
worth solving?
Do I have a solution
people will pay for?Is my market wealthy enough to support the business of healthy margins??
Anonymous
User Testing
Guerrilla
Prototype
Testing
Customer
Acquisition
Funnel Analytics
Feature
Stubs
Segmentation
Analysis
Cohort
Analytics
Backlog Customer
Problem Fit
Problem
Solution Fit
CodePartial
Rollout
Validate
QualitativelyFull Rollout
Verify
Quantitatively
Determine
macro
metric that
quantifies
business
success
Select highest
priority
feature
Drive mockups
to validate the
improvement
opportunity
Setup
customer
interviews
to
understand
the
underlying
problem
Determine if
the
opportunity
should be
built
Once the
problem is
understood,
identify
whether the
solution is
feasible
Multiple
iterations of a
demo may be
required
Develop code
based on user
driven
feedback
during the
mockup and
demo phases
Use agile
technical
practices like
continuous
integration
and test
driven
development
Deliver a
partial rollout
of the
feature(s) to
validate the
opportunity
Customers
are not
getting
value from
the solution
Do we need to
revisit our
understanding
of the
problem?
Validate
assumptions
against a
small, but
relevant
customer
base,
determine
whether
things look
right from a
qualitative
perspective
Once the
feature
passes
qualitative
validation,
we then roll
it out to
everyone
and start
gathering
quantitative
metricsas
Measure your
hypothesis
against the
complete
customer base
The 2 phase
validation
allows us to
achieve balance
between speed
& learning
Lean Startups often use a Feature Kanban to validate a new increment of business
value with customers to ensure that it represents a viable, revenue generating
opportunity
AbandonMarket
demand for
this feature is
too small to be
profitable
Abandon
Customers
don’t care
about the
problem
Abandon
Solution
does not fit
the problem
Abandon
Appendix A3 – Kanban
Kanban is about introducing a set of small J-Curve effects to a less
disruptive path to agility
Kanban allows the organization self discover their own agile solution, at
a pace that the organization can tolerate
We don’t recommend a wholesale change
to the project delivery approach – start by
implementing the principles on top of
existing foundation
Foster an environment where new ideas
for improvement are rewarded and
recognized
Continue to evolve as new ideas and
enhancements are introduced to the
process
Actively seek feedback and inputs from all
key stakeholders
Continuous Improvement Culture
Make a promise and keep it
Deliver when we say we will
When there are surprises we will
make sure we don't make the
same mistake twice
Our performance will improve
over time
Visualize Work
Limit Work in Progress
Measure and Manage Flow
Make Process Policies Explicit
Enable Continuous
Improvement
Kanban is a method built on “lean thinking” to help IT organizations
improve incrementally and deliver on their promises to the business
Kanban core properties
The Kanban Promise
Input Queue
(8)
Test
(3)
Analysis
(3)
UAT
(2)
IP Done IP Done IP Done IP Done
Development
(3)
Making invisible work visible enables collaboration and coordination across the entire team
One the simplest ways to introduce agile thinking is to visualize your
existing process “as is”
Individual units of business value are represented as tickets, colored to
symbolize risk and other metadata
Columns represent individual states in the process, swim lanes
represent different teams & types of work
Visible work promotes better team conversations, improves
collaboration between specialists, and makes it obvious where
bottlenecks, defects, and other impediments are occurring
we help our clients use Kanban to improve productivity across a
diverse range of fields
…from software project
delivery work
…to maintenance, support
and operational activities
…to a number of other software and non-software
related fields
Input Queue
Test
Done
Development QualityRequirements
& Analysis
Rows represent the
capability of the system
for processing different
types of work
Columns represent
the phases that
work goes through
for processing
Install/Patch Configure Data Load Verify Deploy
Different processes
are represented by
separate swim lanes
New Build
Maintenance
and LOS
Small work
28
A Kanban board enables organizations to model their process
workflow, limit work in-progress and visualize work items
Input Queue
Test
Done
Development QualityRequirements
& Analysis
IP Done IP Done IP Done IP Done
New Build
Maintenance
and LOS
Small work
Install/Patch Configure Data Load Verify Deploy
In-Progress and
Done sub-columns
add another layer
of visibility on the
board
IP Done IP Done IP Done IP Done
29
A Kanban board enables organizations to model their process
workflow, limit work in-progress and visualize work items
New Build
Maintenance
and LOS
Small Work
Input Queue
Test
Done
Development QualityRequirements
& Analysis
IP Done IP Done IP Done IP Done(8)
(3) (4) (3) (2)
(12)
(5)
(6)
Install/Patch Configure Data Load Verify Deploy
IP Done IP Done IP Done IP Done
WIP limits are used to
limit the work in
progress for a particular
phase
WIP limits are also used on swimlanes
to limit the work in progress for a
particular work type
4
5(2) (1) (3) (3)
30
A Kanban board enables organizations to model their process
workflow, limit work in-progress and visualize work items
Input Queue
Test
Done
Development QualityRequirements
& Analysis
IP Done IP Done IP Done IP Done(8)
(3) (4) (3) (2)
Define ticket types and their
colours to visualize work tickets
and obstructions
New Build
Maintenance
and LOS
Small Work
Install/Patch Configure Data Load Verify Deploy
IP Done IP Done IP Done IP Done
(12)
(5)
(6)
(2) (1) (3) (3)
31
A Kanban board enables organizations to model their process
workflow, limit work in-progress and visualize work items
Work Ticket
B Blocker
D Defect
Input Queue
Test
Done
Development QualityRequirements
& Analysis
IP Done IP Done IP Done IP Done(8)
(3) (4) (3) (2)
Work Ticket
B Blocker
D Defect
New Build
Maintenance
and LOS
Small Work
Install/Patch Configure Data Load Verify Deploy
IP Done IP Done IP Done IP Done
(12)
(5)
(6)
(2) (1) (3) (3)
32
A Kanban board enables organizations to model their process
workflow, limit work in-progress and visualize work items
Populate the board
with current work in
the system
Input Queue
Test
Done
Development QualityRequirements
& Analysis
IP Done IP Done IP Done IP Done(8)
(3) (4) (3) (2)
- Developers must
put current work
on-hold if a high
severity defect is
found in test.
- Service Now
tickets must be
reviewed every
week
- Person making
the change cannot
be the testerBoard Policies
New Build
Maintenance
and LOS
Small Work
Install/Patch Configure Data Load Verify Deploy
IP Done IP Done IP Done IP Done
(12)
(5)
(6)
(2) (1) (3) (3)
33
Explicit policies help in resolving issues and obstructions
Policies are set in place
to govern the behaviour
of the process
- Developers must
put current work
on-hold if a high
severity defect is
found in test.
- Service Now
tickets must be
reviewed every
week.
- Person making
the change cannot
be the tester
New Build
Maintenance
and LOS
Small Work
Install/Patch Configure Data Load Verify Deploy
IP Done IP Done IP Done IP Done
(12)
(5)
(6)
(2) (1) (3) (3)
Input Queue
Test
Done
Development QualityRequirements
& Analysis
IP Done IP Done IP Done IP Done(8)
(3) (4) (3) (2)
B
D
Work is blocked Bottleneck Team is idleWork is blockedWork is blocked
Board Policies
B
34
Explicit policies help in resolving issues and obstructions
Appendix A3 – Agile Methods
We have significant experience helping organizations of all shapes and
sizes adopt a pragmatic combination of lean - agile methodsHere is what Lean Agile Delivery could look like in your
organization…
• Epics
• Personas
• Releases
• Iterations
Project
Initiation
Product backlog
grooming
Idea Canvas Story mapping Playing poker
• User stories
• Acceptance criteria
Sprint
planning
• Sprint
• backlog
(next iteration) • Designed and built user
stories
• Unit test cases/test suites
• Integration, UAT
• Automated builds
2-4 weeks
24 hours
Sprint
review &
retrospective• Iteration
ready for
production
Agile modeling practices
Self organizing, cross functional
team
Pair programmin
g
Agile team practices
Agile technical practices
Continuous Deployment
• email reports
• deploy EAR
• deploy PEGARules DB
• package EAR
• run test suites
• migrate/create
ruleset(s)
• check-in rule
Test Driven
Development
Lean visual management
A continuous delivery model that continuously improves over time
A useful, maintainable test suite
comes from micro, unit tests
that catch 90% of your defects
through validating atomic
components isolated through
proxies & stubs
Reduce integration churn by taking
advantage of robust unit test coverage
to write code against the trunk,
minimize branching and merging
Don’t let software tools get in the way of the “forming, storming” stage, early
on favor low fidelity, informal techniques like whiteboards, index cards &
stickies to support a collaborative, cocreative mindset
Maximize the team
concept to truly
accelerate delivery,
and increase
consistency
through pair
development
Start small, manage work visually while
introducing small improvements based on
productivity measures
Appendix A4 – Innovation Thinking
Following a
Plan
Leads
to Success
100% successful plan = = 0%
innovation
• Innovation is a process of learning
• Learning is optimal at 50% failure
• Accelerate innovation through a series of short,
safe-to-fail experiments
• Always be ready to pursue OR pivot
Successful innovation in the enterprise requires counterintuitive thinking
Myth ConsiderationsReality
Innovation
comes from the
top
Innovation requires ideas that
flow bottom up through the
organization
• Innovation requires wisdom of the crowds
• Constraints and objectives can be top-down, (the
why), but value realization happens bottom-up
(the what & how)
Innovation
can be
managed as
a separate
capability
Innovation has to be
ingrained in the culture and
methods of the entire
organization
• Managed innovation doesn’t work (Europe
versus Silicon Valley)
• Set up incentives that encourage and reward
innovative thinking
• Define constraints (innovation rules) to funnel
innovation towards objectives
Innovation Is
Just about
Ideas
Innovation is about ideas,
execution, and above all
management
• Focus 90% effort on validation and market
realization
• Get out of the building and engage potential
customers
• Measure using “innovation accounting”
Disruptive Incremental
Market
Opportunity
New Product / ServiceNew Market
Branding
Re-segment to Market Niche
Market Optimization / Scale
New Channels
Service Bundling
Customer ExperienceNew Revenue / Profit Model
New Financial / Cost Model
Value Creation / Paradigm Shift
(E.g. Agile) Platform Replacement
Continuous Process Improvement
Innovation means different things to different people – Methods vary depending on
desired objectives