ITI Challenge Briefing 2012
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Transcript of ITI Challenge Briefing 2012
![Page 1: ITI Challenge Briefing 2012](https://reader034.fdocuments.net/reader034/viewer/2022042607/55a412d41a28abc41a8b4644/html5/thumbnails/1.jpg)
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Intro / Why are we here?
Challenge: The ExperienceBreda Moore
TE Labs
Achieving Ambitious Business GrowthMatrix
Innovation Team
Challenge: Programme Overview
Programme Application / Networking
Matrix
Innovation Team
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Why are we here?Aidan Gough |
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“achieving ambitious
business growth”
Graeme Crombie & Jamie McCallum | Matrix Innovation Team
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What strategic approaches
are most successful?
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Define successful?
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What strategic approaches
are most successful?
Turnover Growth Profitability
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Turnover Growth
Q: What grows the top line most significantly?
A1: Increasing loyalty from existing customers.
A2: Getting new customers.
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A2: Getting new customers.A
vera
ge G
RO
WT
H R
AT
E
Number of NEW CUSTOMERS over the past 3 years
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“number of customers was
found to be 2.8 times more
important than amount
bought per customer.”
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Your existing customers can only….
EAT | DRINK | SPEND
so much!
Share of
stomach.
Share of
throat.
Share of
pocket.
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You need more……
Stomachs. Throats. Pockets.
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Turnover Growth
Growth Rate (%) vs No. New/Improved Products/Services in 3 year period
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Profitability
Q: What’s the highest margin strategy?
A3: Low cost.
A2: Quick turnaround.
A5: Listen / Create around customer demand.
A1: High quality.
A4: Create regardless of market demand.
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A4: Create regardless of market demand.
“If I had asked
my customers
what they
wanted, they’d
have said faster
horses.”
Henry Ford
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A4: Create new regardless of market demand.
“If you’re not
unique you’d
better be
cheap.”Doug Hall
Monopoly
Commodity
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7
8
9
10
11
12
13
14
15
16
Low Cost Quick Delivery Voice of Customer High Quality Innovation
Average % Profit Margin vs Core Business Strategy
Georgia Tech
n=738
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Be honest about your growth aspirations……
Time
£ / €
(now) 5 Years
Want to get to here?
Normal Incremental
Growth Continues.
Sales stay the same.
Past Future
New and Different
Same Old Stuff
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A4: Create new regardless of market demand.
“Insanity: Doing the same
thing over and over again
and expecting different
results.”
Albert Einstein
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NE
W
MA
RK
ET
S
EX
IST
ING
MA
RK
ET
S
EXISTING
PRODUCTS
NEW
PRODUCTS
market
development
market
penetration
unrelated
diversification
product
development
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Problem………
So if innovation is the key to achieving
the growth that companies desire. And
it’s at the top of the agenda of your
governments and support agencies….
what’s holding us back????
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TIME | MONEY | RISK
INNOVATION =
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Pu
rchase Inte
nt:
Me
an
ing
fuln
ess
New & Different: Uniqueness
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TIME | MONEY | RISK
= FEAR
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FEAR =
NO CULTURE OF INNOVATION
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Human error is high.
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Humans <10%
success at picking
winning ideas.
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Even fruit
machines
pay out 32%
of the time!
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ANSWER
A Reliable & Repeatable Strategy
of Innovation Needs a System.
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GOOD NEWS!Through the
InterTradeIreland Challenge Programme
you will learn a highly effective system.
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Responsible for £1.5Bn in new
products & services globally.
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effectiveness endorsed by…
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based solely on research into…
• The factors which make products/services
succeed or fail.
• The factors that make business
development teams effective.
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by reverse engineering….
• Over 4,000 real products and services.
• Over 6,000 business development teams.
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but don’t take our word for it….
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[VIDEO MASH-UP]
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Consumer /
Market
Research
Concept
Development
R&D and
Product/Supply
Development
Sales
Forecasting
Evaluation
Rework - Redo - Restart
Rework - Redo - Restart
Usual Company Systems Approach
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• Typical marketplace success of 5-15%.
• Designed to deal with cost & risk.
• Reduces risk by holding ideas back from the
market.
• Ignores the biggest risk of missing the
opportunity.
Usual Company Systems Approach
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Product
Development
Business
Model
Development
Marketing
Development
The Simultaneous Engineering Approach
Rapid Cycles
of Test &
Learn
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• Typical marketplace success of over 45%.
• Products accelerate to market in a fraction of
the time.
• Utilises “Fail Fast. Fail Cheap.” methodology
to kill costly losers dead ASAP.
The Simultaneous Engineering Approach
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What is Fail Fast Fail Cheap?
Death Threat!= major unknown
1. With no time and no budget what can we
do to validate our concerns?
2. Result = Yes | No | Yes – with changes
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Launch
Ideas
Evaluate
IdeasCreate Ideas
the three challenge areas…
A system for
creating as many
ideas as possible.
A system for picking
ideas with the highest
probability of success.
A system for getting
ideas to market with
the minimum of time,
money and risk.
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the five stages of the I.E. system…
sales
services
CREATE
TOOLS
•CREATE New
•Capture Existing
•Customer
•Problem
•Promise
•Proof
•Difference
•Concept
•Maths Model
(£ + Costs)
•Threats(unknowns)
•LPD
•Stagegate
•Design 6 σ
•FFFC
1/3 (30 – 90 Days)
£ 5%
2/3
£ 95%
£•Faster (6x)
•Less Risk(30-80%)
Define Discover Develop DeliverIdeas
COMMUNICATE TOOLS
COMMERCIALISE TOOLS
Fail F
ast F
ail C
heap
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High Probability Ideas (£/€)
Medium Probability Ideas (£/€)
Low Probability Ideas (£/€)
Pipeline Management of Innovation
=
More Accurate
Understanding of
Value
Max Chance of
Hitting Growth
Targets From
Innovation
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• Number of potential customers.
• Strength of concept persuasion.
• Your own marketing capability/budget.
• First purchase revenue.
• Repeat Purchase Revenue.
• Frequency of first & repeat purchase.
• Life span of customer.
**Your confidence in all of the above.**
Some Key Metrics to Measure Concept Value
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• Strategic fit.
• Internal Passion for the Idea
Also consider...
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• New Products, Services, Customers & Markets that you are not delivering today
are the fastest way to achieve significant business growth.
• Meaningfully Dramatically Different products and services are the route to high
profit margins.
• Consistently faster, less risky growth from innovation requires an objective and
reproducible system – human gut feel has a poor record of success.
• Utilise real world test-and-learn to reduce levels of unknown and therefore risk.
Kill poor ideas quickly. Accelerate and evolve winners.
• Focus on the biggest issues first.
• Have a diverse innovation team.
• Leverage passion for ideas.
Some Key Learning Points
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The Business Life Cycle
CONFRONT REALITY
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• Tonnes of ideas that float around forever and nothing ever
happens.
• Commercialisation is painfully slow and takes up huge amount
of time by very expensive people.
• Sector demands innovation, but we are bad at ideas.
• Ideas are always iterative, “me-too”, we follow the market and
react to customer demand.
• We “used to be innovative”, now we’re fast approaching
commodity and are being squeezed on price.
Do you recognise...?
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“challenge: the experience”Dermot Dinan | DCM Compliance
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“challenge: the experience”Carson Mulholland | Fast Engineering Ltd.
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“challenge: the experience”Breda Moore | TE Laboratories Ltd.
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“challenge: the experience”Joseph Owens | Clada
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Challenge Programme
Overview
Graeme Crombie & Jamie McCallum | Matrix Innovation Team
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What you get…….
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2 Full Day Workshops Covering:
• Business Strategy & Planning
• Innovation System TrainingPlus
An innovation culture assessment gauging
your readiness to innovate.
A max of 30 Selected Companies will get:
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In-company intensive mentoring to output:• 30 - 70 new ideas generated.
• At least one real new product/service/business
improvement idea being commercialised.
• Started the implementation of your own innovation
system to create ideas, pick high probability
winners and rapidly commercialise them on an
ongoing basis into the future.
• The documents and processes required.
A final 12 Selected Companies will get:
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What’s expected of you…..
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• Senior management availability / attendance of workshops
on:
• Commitment of your team with senior management support
to 6 days “contact” time over a period of 6 months. Plus
action delivery between 7-day cycles.
• Completion of a business growth plan for application to the
final stage.
You must be committed to:
Dublin Belfast
6th & 14th of November 7th & 15th of November
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Application Process:
Written Part Online Part
Application Form Innovation Audit Company Culture
Responsibility: Senior Manager Senior Manager All Staff
Deadline: TODAY12:00 Noon
18th Oct
12:00 Noon
18th Oct
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Application Time / Networking
Slides available from Thursday at:
www.intertradeireland.com/challenge/
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