Post on 23-Jan-2015
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Innovation as a
numbers game
Because the purpose of business is to create a customer, the business enterprise has two--and only two--basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs.
Peter Drucker
In business and economics, innovation is the catalyst to growth.- Wikipedia
Innovation Is Important for Sustained Growth
BusinessOptimization
Growth
Time
ConceptCreation
ConceptDevelopment
MarketDevelopment
Re-Invent & Explore
Harvest & Exploit
Ideas Innovation
Innovation is the process of translating an idea or invention into a good or service that creates value or for which customers will pay.
Businessdictionary.com
Ideas are the
heart of innovation
Without ideas innovation, and eventually business,
dies
Problem:
Many companies don’t produce enough good ideas
Solution:The way to get
good ideas is to get lots of ideas,
and throw the bad ones away.
Linus Pauling
Good Ideas:
Confront the Brutal Facts:
Create a culture wherein the truth can be heard
Instead of forcing employees to speak anonymously, why not encourage them to speak openly?
Marty Neumeier
Our best ideas come from clerks
and stockboys. - Sam Walton, Founder of Walmart
4 Parts Of Innovation
Choose a method to source ideas
Part 1
Two methods for idea generation
1. External Sources: Quirky’s Idea Generation Methodology
1 Create a community with an obstacle for entry ie. Entry fee or form
2 Any member (aka inventor) can submit ideas for public review3 All other members can vote on ideas and offer suggestions to
improve the original idea4 Most popular ideas move to design phase5 Both the inventor and the organization submit design prototypes6 Most popular design wins based on community voting7 More voting for taglines, positioning, branding8 Reward all who contributed to the winning idea9 Set up countdown clock for product launch10 Make product
2. Internal Sources:
Diarize Internal Innovation Time
Allocate a portion of your employee’s time to dabbling, experimenting, creating and developing ideas for the organization. Here are some examples.
• Google - 20% time• 3M – 15% time• Apple – Blue Sky Project• LinkedIn - InCubator• Gore-Tex – Dabble Time• Atlassian – Ship It Day• Facebook – Hackathon• Lockheed Martin – Skunkworks• Mattel – Platapus project
Do you know of any other ways to source ideas?
Please add comments below
Q. How do you edit for good ideas?
Part 2
Two Methods for Evaluating and Editing Ideas
Method 1:Good/Different Matrix
Good and Not Different
(me too project)
Good and Different(money maker)
Not Good and Not Different
(avoid all together)
Not Good and Different
(unlikely to succeed)
Method 2:Product/Market Matrix
Old productAnd new market
(adapt - evolutionary)
New product and new market
(create - revolutionary)
Old Product and Old market
(manage - incremental)
New product and Old market
(extend - evolutionary)
Can you suggest other ways to edit ideas?
Please add comments below
Good ideas are different. Naturally, they have a quality of uncertainty about them which can make them scary. These are the ideas to pay attention to.
Q. How do you minimize risk with good but scary new ideas?
Part 3
Stage tests.
Stage-Gate Innovation
Seed Money
Develop concept
How many projects are in your idea
pipeline?How many active
internal contributors do you have?
Small Bet
Develop strategy
Do the projects align with your brand?
How long is the time to market?
Can you hear the appetite in the marketplace?
Medium Bet
Prototype & test idea Ask your target
market
Large Bet
Launch best projects to
marketThe market dictates
your success
= an idea
Q. How do you create sustainable innovation?
Part 4
Be like Starbucks and count your ideas.
What gets measured gets done.
Peter Drucker
How else could you measure innovation?
Marc BinkleyBrand Consultant & Marketing Analyst
@marcbinkley or on LinkedIn