Frank Dethier

Frank Dethier

Session 1:

Why Innovate?

Business Model

Frank Dethier –

INTRO & EXPECTATIONS

Can you please each explain in 3 min

Who are you?

Which company are you working for and what’s your

role?

Which expectations do you have about this academy?

Which concrete outcomes do you want to have

applicable to you/your company?

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Frank Dethier –

MY EXPECTATIONS

What I would like to have

Lean forward attitude (discussions, challenges, …)

You create a draft framework for your company already

That I learn from you

What’s possible

Program is changed during the course based on your needs

…

What I would not like to have

Lean back (I do the talking, you only listen)

You follow this academy and go back to work as if nothing

happened should be more than purely inspiration

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Frank Dethier –

OVERVIEW

Innovation

Creativity?

Innovation?

Why Innovate?

Types & Levels of Innovation

Business Model

Business Model of your company using BMC

Inspiring Examples

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Frank Dethier –

CREATIVITY?

What’s creativity?

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Frank Dethier –

CREATIVITY?

Creativity is a phenomenon whereby something

new and in some way valuable is created (such as

an idea, a joke, a literary work, painting or

musical composition, a solution, an invention

etc).

Creativity can also be defined "as the process of

producing something that is both original and

worthwhile"

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Frank Dethier –

CREATIVITY?

Who’s Creative?

Who wishes to be more Creative?

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Frank Dethier –

CREATIVITY?

LIFE OF IDEA GENERATED IN YOUR BRAIN

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Preparation

Incubation

Inspiration

Verification

Knowledge

Experience

Frank Dethier –

CREATIVITY?

IMPROVE CREATIVITY?

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Marvin Reznikoff test of identical twins

80% IQ based on genetics

30% creativity based on genetics

By giving people the right environment, training and context, they can dramatically

improve their creativity over time, no matter what level they are at now

Frank Dethier –

CREATIVITY?

IMPROVE CREATIVITY?

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Marvin Reznikoff test of identical twins

80% IQ based on genetics

30% creativity based on genetics

By giving people the right environment, training and context, they can dramatically

improve their creativity over time, no matter what level they are at now

Frank Dethier –

CREATIVITY?

HOW TO IMPROVE CREATIVITY?

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When importance of giving correct answer

is emphasized

New ideas are typically rough which makes

them more susceptible to criticism

How will creativity drop?

Brain is ‘offline’ new connections are formed

in your brain that sometimes creates ‘eureka’

Brain is focused idea is refined

Frank Dethier –

CREATIVITY?

HOW TO IMPROVE CREATIVITY?

Put your brain offline: Take a walk, exercise,

daydream, shower, …

Give your brain new triggers: change physical

surroundings, change your routine

Create company culture of trust and failure is allowed

Do daily creativity training exercises

Gain knowledge and context in wide variety of fields

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Frank Dethier –

CREATIVITY?

HOW TO IMPROVE CREATIVITY?

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Frank Dethier –

INNOVATION?

How do you define Innovation?

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Frank Dethier –

INNOVATION?

Innovate = Create Value by using Creativity

Value: Ensure that concept provides

advantage for market, customers &

company

Create: What needs to happen to initiate the

work and to hold on

Creativity: find fresh ideas and combinations of

ideas

Innovation ≠ Creativity

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Frank Dethier –

INNOVATION?

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Janet Echelman – Taking Imagination Seriously

Frank Dethier –

WHY INNOVATE?

Why does your company need to Innovate?

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Frank Dethier –

WHY INNOVATE?

2014 Innovation Assessment by PWC, McKinsey

and BCG: “Innovation remains top 3 priority”

OECD: “Innovation will become an ever more

important driver of growth of many developed

Western economies”

Intuitively: World around us (customers,

markets, technologies, competition, …) is

continuously changing, so

either my company is making a change

or my company is changed (by world around us)19

Frank Dethier –

WHY INNOVATE?

True or False?

Increase your R&D budget and your company

becomes more innovative

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Frank Dethier –

WHY INNOVATE?

True or False?

Larger companies can innovate much better than

SMEs

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Frank Dethier –

WHY INNOVATE?

INNOVATION BARRIERS

Time pressure

Not enough budget

How can we innovate?

Mindset of our people

Too bureaucratic

No support from management

Cooperation between different people/functions

How to prove value of innovation?

Company culture

Fear for the unknown

No reward system

…

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Frank Dethier –

Why does your company need to Innovate?

Which are the biggest Innovation Barriers in

your company?

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Frank Dethier –

EXERCISE

Teams of 2 people

Fill in & Discuss within your team

Time foreseen: 15 min

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Frank Dethier –

OVERVIEW

Innovation

Creativity?

Innovation?

Why Innovate?

Types & Levels of Innovation

Business Model

Business Model of your company using BMC

Inspiring Examples

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Frank Dethier –

TYPES OF INNOVATION

Product Innovation

Business model Innovation

Service Innovation

Any company can realize different types of Innovation

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Process Innovation

Frank Dethier –

TYPES OF INNOVATION

Product Innovation

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Philips Ambisound: same sound experience as

5.1 sound system without clutter

Any company can realize different types of Innovation

Frank Dethier –

TYPES OF INNOVATION

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Service Innovation

Any company can realize different types of Innovation

Frank Dethier –

TYPES OF INNOVATION

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Process Innovation

Assembly time Ford chassis decreased

from 12.5h till 93 min in 1 year

Any company can realize different types of Innovation

Frank Dethier –

TYPES OF INNOVATION

Business model Innovation

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HighVolumesLow variable and

fixed costs

Any company can realize different types of Innovation

Frank Dethier –

INNOVATION LEVELS

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Frank Dethier –

Radical

Innovation

• Technology leap

• Transformation

pretty cool

Incremental

Innovation

• Existing technology

• Competition driven

Not surprisingly ‘new’

INNOVATION LEVELS

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Continuous

Improvement

• Focus on process

• Efficiency driven

Not really ‘new’

Frank Dethier –

INNOVATION LEVELS

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Continuous

Improvement

• Focus on process

• Efficiency driven

Not really ‘new’

Disruptive

Innovation

• Small get big

• Turbulence

Blue Ocean

Sustaining

Innovation

• Focus on market

• Value driven

Business as usual

Frank Dethier –

OVERVIEW

Innovation

Creativity?

Innovation?

Why Innovate?

Types & Levels of Innovation

Business Model

Business Model of your company using BMC

Inspiring Examples

34

Frank Dethier –

BUSINESS MODEL?

A business model describes the rationale of how

an organization creates, delivers, and captures

value, in economic, social, cultural or other

contexts.

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Frank Dethier –

BUSINESS MODEL CANVAS

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Key Partners Key Activities

Key Resources

Value Propositions Customer Relationships

Channels

Customer Segments

Revenue StreamsCost Structure

• Who are our key

Partners/suppliers?

• Which key activities

do partners perform?

• Which key resources

are we acquiring from

partners?

What key activities do

our

• Value proposition

• Distribution channels

• Customer relation-

ships

• Revenue streams

require?

• What value do we

deliver to customer?

• Which one of our

customer’s problems

are we helping to solve?

• What bundles of

products & services are

we offering to each

customer segment?

• Which customer

needs are we satisfying?

• What type of relation-

ship does each of our

customer segments

expect us to establish &

maintain with them?

• For whom are we

creating value?

• Who are our most

important customers?

• Through which

channels do our custo-

mer segments want to

be reached?

• Which ones work

best/are cost-efficient?

What key resources do

our

• Value proposition

• Distribution channels

• Customer relation-

ships

• Revenue streams

require?

• What are most important costs inherent in our business

model?

• Which key Resources/Activities are most expensive?

• For what value are our customers really willing to pay?

• How would they prefer to pay?

• How much does each revenue stream contribute to overall

revenue?

Frank Dethier –

BUSINESS MODEL

BOOK ALEXANDER OSTERWALDER

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Frank Dethier –

APPLE IPOD/ITUNES CANVAS

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Frank Dethier –

BUSINESS MODEL CANVAS

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Key Partners Key Activities

Key Resources

Value Propositions Customer Relationships

Channels

Customer Segments

Revenue StreamsCost Structure

Frank Dethier –

BUSINESS MODEL EXERCISE

Teams of 2 people

Fill in Canvas of your company, and especially

Value Proposition

Customer Segments

Activities

Discuss within your team

Time foreseen: 30 min

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Frank Dethier –

BUSINESS MODEL

INSPIRING EXAMPLES

No Frills Business Model

Essence: non-essential items of service are

discarded and savings are passed on to the

customer

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Frank Dethier –

BUSINESS MODEL

INSPIRING EXAMPLES

Pay-per-Use

Media companies increase revenues per customer

Web companies convince customer to try their service

and set-up long term relationship

Essence: lowers adoption barriers but big

transaction volumes needed

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Frank Dethier –

BUSINESS MODEL

INSPIRING EXAMPLES

Subscription

Essence

Customer pays subscription fee to get access to

product/service

Allows recurring revenues and build brand loyalty

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Healthy Office Snacks

Fruit4Thought

Frank Dethier –

BUSINESS MODEL

INSPIRING EXAMPLES

Freemium = Free + Premium

Limit Product/Service in free version

Feature limited

Capacity limited

Seat limited

Customer class limited

Effort limited

Support limited

Time limited

Bandwidth limited

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Frank Dethier –

BUSINESS MODEL

INSPIRING EXAMPLES

Razor & Blade

Essence: sell durables (lower margin) that will

work only in combination with complementary

consumables (higher margin)

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Frank Dethier –

MILESTONES IN HISTORY OF INNOVATION

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Every organization needs one core competence: innovation

Frank Dethier –

MILESTONES IN HISTORY OF INNOVATION

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James March's 1991

‘Exploration and Exploitation in Organizational Learning’

Frank Dethier –

MILESTONES IN HISTORY OF INNOVATION

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Clay Christensen – The Innovator’s Dilemma

Frank Dethier –

OVERVIEW

Innovation

Creativity?

Innovation?

Why Innovate?

Types & Levels of Innovation

Business Model

Business Model of your company using BMC

Inspiring Examples

49