© InnoPass

Breakthrough  innova/on  Crea/ng  organic  growth  

Mar/n  van  de  Ven  April  2012  

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The  real  difficulty  in  changing  any  enterprise    lies  not  in  developing  new  ideas,    but  in  escaping  from  the  old  ones.    

 John  Maynard  Keynes  

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Successful  breakthrough  innova/on  drives  growth,    

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Time

Turn

over

Time

Turn

over

PAS2000

PAS5000

TWINSCAN

TWINSCAN immersion

Extreme UV Cost price of 1 GB memory

Companies that are the most successful at achieving growth through innovation tend to devote their energies to a small number of breakthrough ideas[1]. Only about 80 of Fortune’s Global 500 turned in an annual average of at least 5% organic sales growth over 10 years. These organic growth champions (Apple, GE, BMW, Nestle, Samsung) delivered almost double the shareholder returns than the other Global 500 companies.

Mac

iPod

iPhone

iPad

TV?

ASML enabled miniaturization and cost price reduction of electronics with breakthrough innovations in IC production

Apple transformed the way we interact with computers, music, mobile devices and books

[1] “Focus intensely on a few great innovation ideas”, Georg von Krogh and Sebastian Raisch, Harvard Business Review, 2009

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…while  failure  causes  business  decline  or  bankruptcy.  

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Failure to create breakthrough innovations can seriously jeopardize a companies business[2]. An example is Philips Display Components that played a leading role in CRT technology and missed out on LCD screen technology. Another example is K-Mart that lost its business to Wall Mart that create breakthrough innovation in retail logistics.

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A premium market position backfires

Innovation management breaks down

A core business is abandoned prematurely

The company lacks a strong talent bench

A company ignores major shifts in customer preference upon competitive breakthrough innovation

A company focuses on incremental extensions with direct return on investment, not breakthrough innovations.

Believing its core markets are saturated a company does not explore breakthrough innovation options.

A firm has few executives and staff that possess breakthrough innovation execution capabilities.

[2] ‘When growth stalls, Matthew S. Olsen, Derek van Bever and Seth Verry, Harvard Business Review, 2008

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Building  breakthrough  businesses  is  a  challenge…  

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By nature breakthrough innovation requires a different approach than continuous innovation [3,4]. It should build on your core strengths, but forget about the conventions that made your core business successful. It should be able to borrow what adds competitive advantage and learn freely what else is required for a successful implementation.

[3] How the growth outliers do it, Rita Gunter McGrath, Harvard Business Review, 2010 [4] Bulding breakthrough businesses within established organizations, Vijay Govindarajan and Chris Trimble, Harvard Business Review, 2005

Forget… Borrow… Learn…

…some of what has made your core business successful.

…only those assets from the core business that provide a distinct competitive advantage.

…quickly to resolve your breakthrough innovation’s inevitable unknowns, to zero in on a winning business model..

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…that  InnoPass  helps  you  to  tackle….  

Mother  Business  

Research  

Opera-­‐3ons  Strategy  

Develop-­‐ment  

InnoPass developed an organic process, tools and skills required to identify and implement breakthrough innovation opportunities. Our philosophy is action-oriented. This involves experimentation to accelerate learning and delivers concrete tangible results in each step.

1. Ovulate

2. Fertilize

3. Fetal Growth

4. Childhood

5. Puberty

6. Adolescence

Innovation Strategy

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…and  integrate  in  your  organiza/on.  

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Innovation strategy is an ongoing topic on your management agenda. InnoPass focuses on establishing a healthy portfolio balance between business improvements, incremental innovation and breakthrough innovation. Next to that InnoPass supports the capability development for breakthrough innovation in your organization.

Mother  Business  

Research  

Opera-­‐3ons  Strategy  

Develop-­‐ment  

Innova3on  

Mother business with several strategic experiments addressing key opportunities and threats with breakthrough innovation

Threat

Opportunity

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Technology  Valoriza/on  

Case:  Arnitel  Eco  

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1.  Ovulate  

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Arnitel Eco is a bio-based material with a different set of properties than ‘normal’ Arnitel. DSM did not know where to market this technology and proposed to focus on its ecological advantages. InnoPass helped DSM to focus on a specific market (sports in this case) and explain the strengths of the material in a more compelling way for people defining new sports equipment.

Custom shaping Connections

Stretch & block

Flexible Protection

Color

Energy Return

Shock Absorption Durability

Weight Saving

Skin Feel

Traditional technical folder of DSM focusing on generic ecological benefits of the material

All Arnitel Eco sports shoe concept, showing the different material form factors and core strengths

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2.  Fer/lize  

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Given the large diversity of sports and sporting equipment, DSM needed broad expertise to evaluate the potential of Arnitel Eco in the sports market. InnoPass designed and executed a crowd co-creating challenge to tap into the wisdom of experts in the world. LinkedIn advertising was applied to attract a solvers target group to the challenge.

LinkedIn group with 170 specialists following the challenge, providing a reference group for DSM in sports

Large variety of high quality ideas provided by 40 experts around the world

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3.  Fetal  Growth  

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After the crowd co-creation challenge, 6 benefit platforms resulted for Arnitel Eco. Some of these benefits could be leveraged following the standard DSM innovation process offering improvements to their customers products. The potentially most valuable benefits platforms require additional effort giving the proposition and business case hands and feet. Key challenge is how to inspire a value chain to adopt a totally new concept for the consumer market.

DSM typically delivers plastic granulates to convertors. Next to the product, DSM offers application & process support.

Breakthrough innovation enabled by the new technology requires a careful choice of ecosystem and your own position in it. Note: The actual DSM proposition is confidential.

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 Mar/n  van  de  Ven  Senior  business  and  marke/ng  consultant            InnoPass  Dena  Innovest  BV  Molenveld  36  5611EX  Eindhoven  The  Netherlands  Mob:  +31  6  1093  6998    KvK  Eindhoven:  17249495  BTW  nummer:  8207.60.638B01  

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