Innovation Model Facets All materials © NetCentrics 2008 unless otherwise noted.
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Transcript of Innovation Model Facets All materials © NetCentrics 2008 unless otherwise noted.
Welcome
• Our goal for the next hour is to examine the concept of an innovation model and the characteristics or “facets” that should be carefully considered
• We’ll also consider how these decisions influence and map to your innovation process
Goals for today
• Define an innovation model• Identify the innovation “facets” and their
importance• Establish a starting point for the innovation
model for each of the facets
Key Points
• Innovation operates best within a framework or context – what we call an innovation model
• This model is composed of a number of facets which influence how innovation works within your business
• Defining the innovation model and facets will improve your success rate and your ability to communicate your scope and goals
Models
Models create a visible representation of what we want to define.A stated innovation model provides scope and focus for the team.
Business Model
• You may be familiar with the concept of a business model– For example, a firm can sell to consumers or sell to
other businesses or other kinds of customers– These decisions influence how the business
operates, who its customers are, the kinds of products or services it offers, its price points and many other factors
Educational Model
• Most universities follow a traditional education model– Introductory courses to establish breadth of
learning– Advanced courses in specific areas to establish
depth of knowledge in specific subjects– A many to one relationship between student and
professor
Innovation Model
• Similarly, innovation exists within a context or model, shaped by a number of characteristics or “facets”
• Making decisions about these facets is important, as these facets dictate the kinds of ideas you’ll generate, who will participate and how they’ll be evaluated
• Clarity around the model helps improve innovation effectiveness
Visible innovation models
• We can examine some innovation models that are working in firms today:– Proctor & Gamble– Apple– Google– Gore
• All of these firms are successful innovators yet use different models in their innovation work
Apple
• Apple seeks to innovate around customer experience
• They are rarely “first” to market, in fact often late to a technology market but attract customers through vastly improved customer experience
• Apple’s innovation model is driven from the top down, in very small teams, with an expectation of disrupting a specific market
Apple Examples• MacIntosh
– Late to the PC market– Niche software and
market size– Yet easy to use and learn– Developed by a very small
team within Apple– Tried to disrupt the
microcomputer market, based on customer experience
• iPhone– Late to the cellular market– Compelling user
experience– Developed by a very small
team within Apple– Disrupted the market for
handhelds, commanded a premium over other handhelds
• Seeks to innovate around the management of online information
• Ideas bubble up from the average employee with little centralized direction
• Ideas quickly beta tested by a large audience and moved into commercial development or quickly killed
• Just as open to acquisition as they are to internal development
Apple and Google
• Examples of two clearly innovative companies with very different innovation models
• Let’s examine some of the key facets that they share in the innovation model
Innovation model
• We’ve found that defining an innovation model for your team provides clarity about:– The ideas that are generated– How the ideas are evaluated– Who should participate
• Let’s examine a number of the model “facets”
Innovation FacetsOpen/Closed
Participative/Skunkworks
Decentralized/Centralized
Suggestive/Directed
Incremental/Disruptive
Individual/Team
Wisdom of crowds/Experts
Product/Service/Process/Business Model
Decentralized / Centralized
Will the work be decentralized or centralized?
Decentralized/Centralized
Incremental / Disruptive
What kinds of ideas are we willing to ask for and receive?
Incremental/Disruptive
Tec
hnol
ogy New
Near to Existing
New
Business Model
Near to Existing
Incremental Breakthrough
BreakthroughGame
Changer
Incremental - Disruptive
Product / Service / Business Model
• Products – physical products or a “packaged” service
• Services – how we deliver our products or capabilities
• Processes• Business models
Product/Service/Process/Business Model
Doblin’s Innovation TypesType Definition Example
Business Model How you make money Dell
Networks and alliances How you work with other companies
Sara Lee outsources manufacturing
Enabling Processes How you support the company’s core processes
Starbucks
Core Processes How you create and add value to your offerings
Wal-Mart
Product Performance How you design your offerings
VW Beetle
Product System How you link your products to create a system
Microsoft Office
From: Doblin Grouphttp://www.doblin.com/IdeasIndexFlashFS.htm
Doblin Types (cont)Type Definition Example
Service How you provide value to customers beyond product
Singapore Airlines
Channel How you get your offerings to market
Martha Stewart
Brand How you communicate your offerings
Absolut
Customer Experience How your customers feel about the company
Harley Davidson
Right Answer / Wrong Answer
• Note that there aren’t necessarily “right” or “wrong” choices for these models
• Rather there are implications to making the choices– What you encourage– What you ignore– Where you place your focus– How you choose to evaluate
Initial DeploymentOpen/Closed
Participative/Skunkworks
Decentralized/Centralized
Your initial deployment may look like the selections above – a closedmodel that is partially participative and centralized seeking primarilyincremental ideas that will be evaluated by experts
Incremental/Disruptive
Suggestive/Directed
Individual/Team
Wisdom of crowds/Experts
MaturityOpen/Closed
Participative/Skunkworks
Decentralized/Centralized
Over time your innovation model could morph to represent these choices,which reflect more open and participative innovation that seeks moredisruptive ideas and uses a broader evaluation panel.
Incremental/Disruptive
Suggestive/Directed
Individual/Team
Wisdom of crowds/Experts
Why is this important
• Making these decisions explicitly early in your innovation effort help people understand the scope of your efforts and where to spend their time
• It provides clear markers for areas of interest where innovation is concerned and how the innovation model can be deployed
• A clearly defined model aids communication to those who wish to participate
What can you do?
• Think carefully about your innovation goals, strategy and expectations
• Develop an innovation model that recognizes existing strengths and challenges in your business
• Recognize that the model is adaptable as your team gains innovation experience
• Define your model and communicate the facets to everyone
Key Takeaways
• Defining the innovation facets establishes a clear scope and “operating model” for the project or team
• These facets are flexible and may change from project to project, or as the team gains experience
• Failure to establish these facets or poor choices will frustrate the innovation process