INNOVATION FURNACE®

CLIENT OVERVIEW

December 2016

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Innovation Furnace® Objectives

Our purpose is to drive growth for our Clients through

team-enabled, product innovation in the digital domain.

A key part of this strategy is to capture breakthrough

thinking that fills an innovation pipeline with new digital

product concepts which can be launched in 3 - 18 months.

We call it the Innovation Furnace®

The digital concepts we develop through this process are

commercially compelling and achievable within existing

client capabilities, or readily achievable with new

capabilities. We pay strict attention to future financial

outlays and return on investment.

We measure our success by our ability to positively affect

our clients’ business outcomes, assisting them in being

disruptors and innovators in their own market sectors,

and providing them complete, captivating digital

solutions at most optimal cost.

Innovation Furnace® Highlights

PreHeat™ Phase

The Innovation Furnace® has a

PreHeat Phase prior to the onsite

Innovation Furnace® 2-Day Session.

The PreHeat Phase includes:

Formal 360-degree internal,

interview-based opportunity

analysis,

Assessment of key client

customer insights and

trends,

Current digital product

attribute survey and gap

analysis, and

Review of current and newly

acquired capabilities and

technologies.

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Innovation Furnace® 2-Day Session

The Innovation Furnace® 2-Day Session is led by the Ritech Furnace Master™ and includes a Triple Team

of Experts® comprised of Ritech experts, world-class project-specific experts (as required), and client

participants (usually up to 15, but can be more if required).

The 2-Day Session utilizes proven IdeaExercises™ & IdeaStimulation™ that demonstrably generate 12X

better quality ideas than traditional brainstorming. We do this by leveraging diversity, stimulus, reduced

fear and both right- and left-brain processes.

The idea creation and inventing activity primarily take place in small (6 - 7 person) Inventing Teams.

Each Inventing Team includes a Ritech Expert/Team Leader, an outside expert, and four or five client

Experts/Participants. Each Inventing Team is strategically focused on specific areas of interest, and

Ritech Experts/Team Leaders bring diverse senior-level innovation experience from real world business

situations.

The key deliverable of the Innovation Furnace® 2-Day Session is a portfolio of HotConcepts™ that are

comprehensive, unique and innovative. These HotConcepts target business areas identified in client

discussions held in the PreHeat Phase.

All HotConcepts are ready for immediate testing, development and launch. Each HotConcept is written

as a comprehensive product brief, and as a 50- and 100-word version for client customer research and

feedback (i.e. the elevator pitch).

All ideation and product ideas (including sketches & photos) created throughout the 2-days will be

documented for your future reference and further innovation work.

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The Innovation Furnace® support team includes design and production staff who can help bring all the

Inventing Teams’ HotConcepts to life.

Triple-Team of Experts

The Triple-Team of Experts® provides

diversity of experience, intellect and

creativity to power the Innovation

Furnace®. While much of the inventing

occurs elbow-to-elbow in the Inventing

Teams, idea generation is directed and

boosted through IdeaStimulation (15

minute presentations) and IdeaExercises,

plus periodic discussions that include the

whole group. It is a grueling two days.

Creativity in the Innovation Furnace® is a

combination of individual work and

teamwork. The core ‘operating unit’ is the small Inventing Team of expert participants guided by its

Team Leader to idea development excellence.

Typical Activity Schedule

While each Innovation Furnace® has its own customized timing and delivery requirements, the

following table is representative of the overall schedule of the pre- and post- Innovation Furnace®

activities and deliverables.

Week Key Activities & Deliverables

Weeks 1-3

The dates and location are finalized for 2-Day Innovation Furnace®.

Client provides best available internal data on strategy, customer

insights, market research, and relevant enterprise metrics.

Client provides data on past concept work (to avoid duplication).

In-depth multi-source analysis by Ritech including PreHeat™ interviews

with key stakeholders / experts. Interviews are either in person or via

web-conferencing, and seek to collect ideas and opinions that will be

captured for anonymous consolidation in the pre-read materials.

The participation list of the Triple-Team of Experts® is finalized with

client, Ritech Experts / Team Leaders and World Class Experts

identified.

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Weeks 4-5

Pre-read materials completed and Ritech experts briefed.

Client briefed on the Innovation Furnace® Plan including the 2-Day

Session Agenda, IdeaStimulation presentations, and IdeaExercise

playbook.

Week 6

The Ritech Furnace

Master leads the

2-Day Innovation

Furnace® staffed by

the Triple-Team of

Experts® to create

HotConcepts™.

The Furnace Master

uses a detailed Run

of Show that keeps

the sessions lively yet focused on tangible outcomes.

Case examples and impactful multi-media presentations are used for

IdeaStimulation.

All progress is captured for fast feedback.

Week 7

Ritech professionally writes up the HotConcepts.

Final post-session All-Idea documentation is completed.

Ritech completes a portfolio analysis and level of effort estimations of

HotConcepts including potential impact assessments against stated

enterprise goals as discovered in the PreHeat process.

Client approves the finished HotConcepts.

Optional testing of the HotConcepts using variety of techniques.

Week 8

Final presentation of project deliverables, the

finished HotConcepts, and Ritech portfolio analysis

recommendations.

Suggestions on how to effectively leverage

HotConcepts into a comprehensive digital growth

strategy.

Continued Ritech support to make your

HotConcepts actionable.

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Hot Concept Portfolio Analysis

There are many ways to group the HotConcepts using business or technology implementation

dimensions. Ritech typically takes the approach of grouping based on the primary “customer” focus,

either internal or external, as well as the extent each group of ideas will impact external stakeholders.

As an example, using this approach at one Innovation

Furnace®, we grouped ideas into four areas,

acknowledging that each are not mutually exclusive,

and we estimated implementation difficulty and

implementation cost as part of the portfolio analysis.

HotConcept™ Cate-

gory

Group

Assessment of

Potential

Estimated

Implementation

Difficulty

Estimated

Implementation

Cost

HotConcept 1 Highest Moderate High

HotConcept 2 Very High Moderate Moderate

HotConcept 3 Very High Low Low

HotConcept 4 Very High Moderate Low

HotConcept 5 High Low Low

HotConcept 6 High Low / Moderate High

HotConcept 7 High High Moderate

HotConcept 8 Medium Moderate Low / Moderate

HotConcept 9 Medium Moderate / High Moderate

HotConcept 10 Medium Low Low

HotConcept 11 Medium Low Low

HotConcept 12 Medium Moderate Low

HotConcept 13 Small Low Low

HotConcept 14 Small Low Low

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Pathway to Implementation with Ritech Solutions

Controlled Burn™

We have designed a hands-on development approach that allows further exploration and

implementation in a controlled manner when the “unknowns” are huge and you need to make steady,

consistent and measurable progress. For these situations, we recommend our incremental discovery and

fast feedback digital development approach, Controlled Burn™. Using the tools of Lean User Experience

(UX) Design and Lean Engineering, you get results early, for a modest cost, that you can test and further

evolve with your customers.

The key to Controlled Burn™ is the steady cadence of process-driven innovation that takes early learning

and pushes it back into the ideation process to make your product or service better, sooner, with less

cost.

Any amount of budget, time and goals can be fit into this approach. You will show demonstrable

progress while not wasting money and time on ideas that are less than perfect.

We do this through: 1) incremental discovery of requirements, 2) cost containment to a fixed weekly /

monthly budget while leveraging highly-skilled offshore resources, and 3) “bite-size” chunks where we

can make changes agilely, in real time, making every hour and dollar spent work hard for you. Our

clients can start small and move forward in incremental steps. Progress is steady, and each step is tested

and measured. Importantly, the entire initiative is controlled to remain within a pre-established budget.

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Ritech Experts & Session Coaches

Scott Relf

Creator of the Innovation Furnace® & Furnace Master™

Principal, Ritech Solutions

Senior leader roles in marketing and product development at E&J Gallo,

Kellogg’s, and Sprint PCS.

Accomplished entrepreneur. Founded tech company, Zavers, and sold it to

Google. Innovation consultant for 10-years.

John Yuzdepski

Principal, Ritech Solutions

Co-founder of a platform engineering company in the intelligence and

national security sector. Investor, board member and advisor to several web-

scale start-ups. Founded and sold two tech companies in 1990s.

Senior leader roles in technology and product development at public

companies including Symmetricom, Openwave, and Sprint PCS.

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Successful Past Innovation Furnace® Projects

Product Innovation to Accelerate Growth of Market Leader:

Developed a portfolio of near-term and long-term new capabilities to accelerate growth for a world

leading law firm licensing deceased celebrity publicity rights. (CMG Worldwide)

Product Innovation Across a Multi-Brand Portfolio:

Developed a portfolio of near-term and long-term new products to strengthen core brands, accelerate

growth brands, and exploit new market segments. (Bimbo Bakeries USA)

Invent the Next Generation of Products:

Developed a portfolio of new products to anticipate and exploit the evolution of a health-focused

consumer segment, and protect the leading brand’s market position. (Coca-Cola)

Breakthrough Product Line Improvement:

Developed a new product portfolio to create and leverage significant improvements in consumer ease-

of-use over 5-years for a $500M market-leading brand. (Nestlé Prepared Foods)

Fill Product Launch Pipeline:

Developed a portfolio of new products to fill the 3-year product pipeline for a major new brand launch

with a $300M growth objective. (Nestlé Prepared Foods)

New Global Product Strategy:

Developed a vision, strategy, and multi-segment new product portfolio to enter new demographic-

focused product segments and drive $1B growth initiative. (Kimberly-Clark)

Breakthrough Customer Service Improvement:

Developed a portfolio of new & improved services to significantly improve consumer experience across

retail, call-center, and online touch-points over 3-years for a market leading financial services company.

(TD Canada Trust)

Explore New Frontiers:

Developed a wide ranging portfolio of breakthrough new products that could pioneer growth into

adjacent market segments plus create whole new market segments… all driven by future-looking

consumer trends. (Clorox)