8 Antidotes to Innovation Failure

Antidote to Innovation Failure

Brandfest Sue Mulhall Senior Consultant

21st May 2015

1@ Kitchen8 Confidential

5@ Kitchen 8 Confidential

What is true innovation vs. simply ‘new’?

nothing new

under

the sun5@ Kitchen8 Confidential


CREATIVITY IS THE POWER TO CONNECT THE SEEMINGLY UNCONNECTED —William Plomer

True Innovation

CxQ - Connectional Intelligence – connection of disparate parts or ideas into a coherent whole

. Serving an unmet need

. Product, service or reframing a category or behaviour

. Not need to be first, but does need to be disruptive

80% innovation failure is the norm

Credit: Flickr; Sicko Atze van Dijk 7@ Kitchen8 Confidential


We need to reverse engineer our thinking and processes

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“The competitors have just launched a new fragrance variant, freshmint. Let’s quickly respond with mintfresh.”

A vicious cycle of parity and price.

Dominant: Reacting to a problem

. Identifying a unique opportunity, anticipating market and consumer trends.

. Grow and lead the market through creating new demand.

Antidote: Proactively pursuing an opportunity

Antidote 1

@ Kitchen8 Confidential

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Antidote 1: Proactively pursing an opportunity


Credit: www.lego.com Credit: V/Line Credit: Quicksilver

TRAIN TRAVEL SURFING TOYS

http://www.lego.com

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“The new product upgrade failed consumer testing. What have we got that we can launch quickly?”

Starting from what is available/feasible.

Dominant: Inside–Out innovation

. Starting from what is truly needed or desired.

. Also looking to the outside new behaviours, trends, other categories for inspiration.

Antidote: Outside–In innovation


Antidote 2

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Antidote 2: Outside–In innovation


Credit: AP Photo/Christian LouboutinCredit: Quick Pod Credit: Chotukool

COSMETICS WHITE GOODS PHOTOGRAPHY

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“80% of consumers said they would prefer to buy based on price and would not trade up for a personalised service or feature…”

People are notoriously bad at predicting whether they would actually want, like or use something they have never experienced.

Dominant: Fact vs. implicit insight driven


. “Ideas speak to the inaudible whispers of the soul.”

. An idea is an abstraction.

Antidote: Acknowledge 95% of decision making is implicit*

* Source: Harvard Business School Press, Gerald Zaltman “How customers think”.

Antidote 3

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Antidote 3: Acknowledge 95% of decision making is implicit*


Credit: BNZ Credit: FriskiesCredit: Migraine Tracking App

* Source: Harvard StartFragment Business School Press, Gerald Zaltman “How customers think”.

HEALTH CARE PET FOOD FINANCE

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“Let’s buy some new research. Let’s redevelop this product that did not work from scratch”.

Familiarity makes us all blind. Resources of various kind become invisible.

Dominant: Missing the Elephant in the room


Antidote 4

. Innovation can be at your fingertips.

. Partner up to connect the dots.

Antidote: Repurpose and reinvent overlooked resources

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Antidote 4: Repurpose and reinvent overlooked resources


Credit: AAMII Credit: Toyota Credit: DeBeers

AUTOMOTIVE DIAMONDS INSURANCE

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“It passed the test, we can launch. It failed the test, what now?”

One size fits all.

Can lead to ‘false negative’.

Dominant: Off the shelf, passed or failed testing


Antidote 5

Antidote: Bespoke testing and learning. Use of fresh methodologies with

the idea in mind. . Learn quickly, efficiently and in

real time and identify how to pivot, if need be.

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Antidote 5: Bespoke testing and learning


Credit: Pinterest Credit: SONY Credit: Pebble

TELEVISIONS SMART WATCHES SOCIAL PLATFORM

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“What is this project about? It’s the first time I hear about this. Too much money, operationally this is going to be a challenge, leave it.”

Non-collaborative and with limited buy-in of internal and external stakeholders, consumers included.

Dominant: In-silos innovation


Antidote 6

Antidote: Upfront co-creation and ownership . Rally stakeholders upfront

around common goals.

. To increase relevance of ‘brand for me’, invite consumers, shoppers and influencers to participate.

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Antidote 6: Upfront co-creation and ownership


Credit: Unilever Credit:Absolut Vodka Credit: Xiaomi

ALCOHOL MOBILE HAIR CARE

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“We need some news to share with consumers and customers for next year. What can we change or add to the product?”

‘Real’ NPD generally only takes place every 5 years.

Dominant: NPD is the answer


Antidote 7

Antidote: Commercial Innovation, not just NPD. Change how you talk about your

product, rather than change your product.

. Opportunity to be local in the increasingly globalised world.

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Antidote 7: Commercial Innovation, not just NPD


Credit: MC Donald’s Credit: Charmin Credit: Speaking Exchange

TOILET PAPER EDUCATION FAST FOOD

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“And when did you say this will be ready for launch? Can’t we launch any sooner? Yes, Q1 2018”

By the time ready, the market has moved on.

Or worse, a false positive on the premise of what you are perfecting.

Dominant: Perfect and Launch


Antidote 8

Antidote: Launch and Perfect

. Make sure you are building the right ‘it’ before you build it right.

. Get a POV, create commercial innovations to start owning the territory before NPD is ready.

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Antidote 8: Launch and Perfect


Credit: Apple, Ipod Credit: Coca Cola Company Credit: Eric Ries

BEVERAGES TECHNOLOGY CONSUMER ELECTRONICS


Antidote 8 summary

1.Proactively pursue opportunities

2.Outside In innovation

3.Acknowledge 95% of decision making is implicit

4.Repurpose and reinvent

5.Bespoke testing and learning

6.Upfront co-creation and ownership

7.Commercial Innovation as well as NPD

8.Launch and Perfect

About Kitchen8



Welcome to Kitchen8

We are an energetic global brand innovation company.

We accelerate growth for our clients by reinventing their brands, products, categories and business models in ways that people love and share.


A few things about us

4 years old, doubling in size every year.

Best of East and West, with companies in London and Singapore and Kitchen8 representation in 5 continents.

Worked in 40+ countries across continents.

Experience in virtually all categories.

Client list includes Bata, P&G, Electrolux, Nestle, SCA, Pfizer, Bioderma, Baccarat and Danone.

All growth has come through clients’ referrals.


Global brand architecture for hygiene brand.

Brand repositioning for international luxury tour operator.

Body care product innovation in Malaysia and Singapore. Pro-bono work for Singapore-based charities.

Recent projects

Launch of a new premium bottled water for global roll-out. Brand repositioning for global domestic appliance brand in Asia. Category innovation for food dip brand in the UK. Global business model optimisation for international skincare brand.


Purpose

8 out of 10 brand launches fail. We find it unacceptable and want to reverse those odds.

From failure to prosperity.

The number 8 is a mark of prosperity in our native Asia and symbolizes the growth we want to create for our clients.


Belief

We believe brand failure happens for a number of reasons:

is created from the inside-out, rather than from the outside in

fails to recognise the implicit nature of human needs & wants

overlooks assets familiarity has made become invisible

is non-collaborative, nor co-creative

focuses on expensive NPD.

In our kitchen, we don’t.


In the kitchen

Stomachs are fed, senses are delighted, emotions surface. Relationships are nourished. People come closer, listen more, make food together, share conversations and plates.

In the kitchen truths are told. Inspiration is found. Creativity and energy flow. Bettering and experimentation are natural.

In the kitchen, proven and new ingredients are mixed, ideas flourish and new recipes are born. Risks are taken, mistakes are learnt from. Freshness and goodness make the difference and what’s in the pantry is used first: good kitchens waste neither time nor resources.

The kitchen and what it stands for inspires our culture. It’s our how.


Method

Freshness We decode implicit, untapped consumer needs & desires

Inclusion End-to-end co-creation with clients, consumers and whoever plays a role in delivering brands to their audiences

Thriftiness Unlocking and repurposing of overlooked assets

Speed Creation of lean brands and product that are faster to the market that it’s waiting for them.

Sustainable Growth Growth made quicker, greater for longer.


Tools

The kitchen is the place where creativity is always followed by action. At Kitchen8 we have developed a special mix to turn our fresh thinking into innovation that unlocks and accelerates growth. We can also help with trends and consumer understanding, workshop moderation, brand and communications strategy or portfolio and architecture work. Yet, we particularly like to create opportunities by sharing our fresh method and tools.


WEST

London

[email protected] +44 (0)7425 735371 [email protected] www.kitchen-8.com

EAST

Singapore

[email protected] +65 9117 4031 [email protected] www.kitchen-8.com

http://www.kitchen-8.com

8 Antidotes to Innovation Failure

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