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Unfuzzying the fuzzy front end of innova2on
and jump starts innova/on in your organiza/on with FORTH.
I am Sara
Passion for crea/vity, innova/on and people,… Running, sports and travelling
www.redzezel.com
Red Zezel
sara-‐pieters
Innova/on is essen/al but difficult Do you see anything
coming yet?
the difficult start
Innova/on is essen/al but difficult
But at the fuzzy front end a lot goes wrong…
We are coming up with the
same ideas over and over
All our ideas are really vague
Top management rejects all our
ideas Crea>vity killers
We s>ck to the usual
conven>ons of our markets
There is hardly any internal
support for new ideas
So we brainstormed, now what……?
The brainstorming session is
dominated by extroverts and the highest bosses
We don’t know what we want regarding innova>on
FORTH is effec/ve by connec/ng three essen/al elements
Connec>ng the board, management and employees
Connec>ng customers to the innova>on process
Connec>ng business reality with outside the box crea>vity
In this way we create a new business case…
… via lots of fun and inspira>on!
Hard and soH characteris/cs of the journey
In five steps from business to crea/vity and back
Start: Concrete innova>on assignment
Output: three to four mini new business cases
Focus: customer centred
Process: in five structured steps from business to crea>vity and back
Team: internal team with core team members and extended team members
Time effort: 1 ½ days per week for a core tam member
Time needed: 14 weeks form the kick-‐off
FORTH
Depar/ng
I think we have
We’ve got everything?
In step 1 Full Steam Ahead the innova/on assignment is dra>ed and you will kick-‐off
Ac/vi/es
• Choose internal sponsor, project leader and facilitator • DraQ an innova>on assignment and planning • Choose and invite team members
Deliverables
• A SMART concrete innova>on assignment • a commiTed internal sponsor • a mo>vated idea>on team • 6-‐8 innova>on opportuni>es to discover
Workshops
• Innova>on focus workshop • FORTH Kick-‐off
Innova/on focus
EVOLUTIONS Within our present market(s) Focus on innova>ve concepts for: • The same target groups (buyers, users) • The same regions and/or countries • The same sales and/or distribu>on channels • The same business model
REVOLUTIONS Beyond our present market(s) Focus on innova>ve concepts for: • New target groups (buyers, users) • New regions and/or countries • New sales and/or distribu>on channels • New business model
Innova/on focus
Revolu/onary ‘boVom’ innova/ons with a new
business model IKEA house: BoKlok, a complete house for 150.000€ that you don’t have to build yourself
Innova/on focus
Revolu/onary ‘boVom’ innova/ons with a new
business model Toothbrush subscrip>on
Innova/on focus
Evolu/onary ‘top’ innova/ons in the same market
Hansaplast Liquid Protect
Innova/on focus
Evolu/onary ‘top’ innova/ons in the same
market Becel pro-‐ac>v
Innova/on focus
Evolu/onary ‘top’ innova/ons in the same
market Philips Wake-‐up Light
Innova/on focus
Revolu/onary new market innova/ons aimed at non-‐
users Wii Fit: Health game for Nintendo for a completely new adult target group
Clear evalua/on criteria
Turnover How much (extra) turnover will the new product concept generate within x years?
Strategic fit To what extent will the new product concept fit in the strategy of the organisa>on?
Feasibility To what extent will the new product concept be feasible (using the exis>ng in-‐house produc>on facili>es)?
Posi/oning To what extent will the new product concept fit in the chosen brand or corporate posi>oning?
Appealing and different
How appealing and different will the new product concept be in the eyes of the target group?
Profit margin What should be the profit margin on the new product concept?
Why?
What’s the reason to innovate?
Who? Is the target group?
Where?
Which con>nents, countries or regions? Which distribu>on channels?
What kind of innova/ons are we looking for?
Products? Services? Business models? Solu>ons? New to the world? New to the market? New to
the company?
When?
Intended year of introduc>on?
to Which criteria do the concepts have to comply to?
Turnover? Margin? Feasibility? Fit with the strategy or brand? Cannibalisa>on? Investment
budget?
• Why? • Who? • Where? • What? • When? • Which?
New innova2ve bicycle safety seats Bobike is market leader in the Netherlands in bicycle safety seats for children. And has the ambi/on to grow in Western Europe. Germany is an important market with growth opportuni/es. The FORTH assignment is: "We want to ideate a new dis/nc/ve Bobike bicycle seat for European consumers and bicycle retailers to realise our expansion objec/ves. This new bicycle safety seat should have a good scoring (number 1.2 or 3) in the very important German S/>ung Warentest 2011”.
The right idea/on team
Their responsibility and their support
Allow par>cipants to join the team because the innova>on assignment is immediately related to their responsibility or because they take care of support within the organisa>on.
Their fresh outlook
• crea>ve marke>ng people; • scien>sts in a par>cular field; • students in a par>cular field; • managers from other companies; • ar>sts.
Their exper/se
Allow par>cipants to join the team because their knowledge and exper>se are essen>al to the successful comple>on of the innova>on assignment.
The right idea/on team
8 Core team members
• Marketeers • Innova>on specialists • Account managers • Market researchers
• R&D specialists • Produc>on specialists • IT specialists
2 Outsiders
• External marketeers • Visualisers & designers • Scien>sts • Students • Ar>sts
4 Extended team • Members of the board • Directors • Experts
Diving into the market
Hello
In step 2 Observe and Learn the team explores innova/on opportuni/es and discovers customer fric/ons
Ac/vi/es
• Explore innova>on opportuni>es • Explore trends & technologies • Mee>ng customers • Discovering customer fric>ons
Deliverables
• Most promising innova>on opportuni>es • Most relevant customer fric>ons
Workshops
• Focus groups with customers • Observe & Learn workshops
Inspira/on compass
Customer fric>ons
Innova>on opportuni>es
Technology
Trends
Discovering customer fric/ons
How do you discover customer insights? By: 1. Observing…. 2. Listening…. 3. Understanding…. 4. Interpre>ng…. The target group (on loca>on and within the relevant context)
Name Give the insights an appealing name
Target group Describe the target group as lively as possible
Insight Situa>on An easy to recognise situa>on
Needs and wants
A relevant need, urge or desire
Fric>on A fric>on, experienced by the customer which, that is a concrete obstacle for fulfilling his or her need and wants
Discovering customer fric/ons
Name Permission horror Target group People who have plans to build
or renovate Insight Situa>on I have been living in the same
house for 15 years. The children are growing up and the house is becoming fuller. In the morning we have to squeeze into the bathroom.
Needs and wants
I am considering some renova>ons but I was told that I need permission from the local council
Fric>on I have heard so many contradictory stories from friends and neighbours regarding the local council and the building inspec>on and now I am not sure how best to apply for the permission.
Name I haven’t learned this
Target group Big dairy farmers
Insight Situa>on I have a large dairy farm with 150 cows and am not a family run farm anymore
Needs and wants
I need good staff who will work hard and are really commiTed.
Fric>on But I am myself not very good with people which leads to a lot of tension and stress for everyone involved.
At the new product brainstorm
Any more ideas?
In step 3 Raise Ideas the innova/on team creates 12 concept statements
Ac/vi/es
• Choose brainstorm venue • DraQ braistorm programme • Invite outsiders • Facilitate a 2-‐day Brainstorm • Improve concrete concepts descrip>ons
Deliverables
• 400 – 600 ideas and 12 concept descrip>ons ready for customer feedback
Workshops
• 2-‐day brainstorm • Concept development workshop
The new product brainstorm
1. Introduc>on 9. Wrapping up
2. Inspira>on from observe &
learn
3. Genera>ng ideas (+500)
4. Grouping and choosing idea direc>ons (20-‐30)
Diverge
5. Producing idea mind maps
(12)
6. Producing innova>ve
concepts (12)
7. Presen>ng innova>ve concepts
8. Judging innova>ve concepts
Converge
Customer research
What do you think of this
idea?
Well
In step 4 Test Ideas the most aVrac/ve concepts are iden/fied
Ac/vi/es
• Set up customer research • Visit customer research • Improve concepts based on feedback • Choose the best concepts
Deliverables
• 3-‐5 well tested concept descrip>ons to be worked out as mini new business cases
Workshops
• Improvement workshop
Qualita/ve concept research
The concept survey aims to check that the developed new product concepts are appealing to the target group. Are you on the right track?
1. The qualita/ve character
• Clarity • Relevancy • ATrac>veness • Dis>nc>veness • Does it fit the brand?
• Trustworthiness
4. You want to get an insight in
• Small-‐scale and indica>ve
• Use prototypes, objects, drawings
• With people in their own environment
2. Method and requirements
• What do you think of it?
• For what purpose, when and in what situa>ons would you use it?
• What are the good/poor features?
• Would you buy it?
• Why? …
3. WHY Ques/ons
Improving product concepts
Returning
Here we are again!
In step 5 Home Coming 3-‐4 mini new business cases are dra>ed and presented
Ac/vi/es
• DraQ mini new business cases • Present mini new business cases • Transfer concepts to development teams • Evaluate the FORTH process
Deliverables
• 3-‐5 aTrac>ve mini new business cases ready for further development
Workshops
• 4 mini new business case workshops • Presenta>on
Mini new business cases Product-‐ or service concept
• This is how the idea was born • Customer insight • Product concept
• This is what makes the product appealing!
• This makes the product concept unique
Strategic • How it fits in the business strategy, in the division strategy, in
our target group strategy, in the product porrolio. • These are the risks if we decide not to develop.
Financial • This will be our return • This is what it will cost us
Feasibility
• We are able to develop it. • We are able to produce it. • We have to invest in it. • We have the know-‐how.
• These are the possible obstacles
• This is the development process
Marke/ng Target group. Specific marke>ng mix.
This is the adver>sing slogan This is the ideal >me to launch it.
Sanoma Media is a media giant in the Netherlands
1. The largest media company with magazines, custom media, events, websites, mobile sites and apps.
2. As of July 29, 2011 Sanoma acquired SBS TV in the Netherlands.
3. Extensive porrolio with over a 100 different brands.
4. Sanoma Media Netherlands is a part of the Sanoma Group, an European mediagroup opera>ng in several media sectors in twenty countries.
Sanoma experiments to strech magazine brands to non media concepts
FORTH Innova2on assignment: The new concepts………..
• Must fit and strengthen the brand values of Libelle en Margriet;
• May not be (a site, magazine, event, special, book, et cetera);
• Must be under the direc>on of Sanoma media;
• Will probably will have to implemented with business partners;
• Will realize substan>al turnover and profits.
> Target ( in year 3): € 25 million turnover and € 5 million net margin.
Phase I: Full steam ahead
Sanoma started a FORTH project Mega Brand Extensions
Phase I: Full steam ahead
The ‘Observe & Learn’ phase opened our eyes
Main customer fric/ons iden/fied in 4 focus groups 1. Taking care of your young children 2. Taking Care of your parents 3. My rela>on in ‘an empty nest’ 4. Problems with my own health 5. How do I get back to work again 6. How can I keep developing myself
7 innova/on opportuni/es were inves/gated by the core team members 1. Telecom 2. Living 3. Food 4. Healthcare 5. Energy 6. Work 7. Finance
Phase II: Observe & Learn
The brainstorm in ‘Raise Ideas’ generated 12 concepts
12 new concepts were developed, among which: 1. An internet portal for temporary work; 2. Margriet health centres; 3. Facilita>ng volunteer jobs; 4. Educa>ng women re-‐entering the labour process; 5. A joint buying service; 6. Green energy; Phase III: Raise ideas
One of the concepts: Libelle Academy
Phase III: Raise ideas
‘Tes>ng Ideas’ really had added value
9 new concepts were tested twice in four focus groups: • 9 concepts were tested with rather poor results: the magazine readers had to get used to the idea that the Margriet and Libelle did something else than making magazines! • 6 concepts were improved in an improvement workshop and tested again. • 3 concepts were received very posi>vely. Phase IV: Test ideas
Three Mini New Business Cases were presented and two concepts were introduced
Three mini new business cases were presented to the complete board: • The board of Sanoma Media choose two mini new
business to be worked out as ‘real’ Business Case; • The two business cases were approved by the board
later on in the process. • Both concepts were introduced by Sanoma on the
Dutch market: Libelle Academy: November 17th 2010; Work4Woman: April 5th 2011; Phase V: Homecoming
• Fric/on: I stopped developing myself, taking care of all the others;
• Concept: real easy to follow and inspiring workshops, courses and e-‐learning;
• Reinforcing the main subjects of the Libelle magazine: – Living, – Psychology, – Travel & culture, – Computer & online, – Organizing my self, – Fashion & Beauty.
• Partnerships with Open Universi>es with 10 loca>ons in The Netherlands
• Special Libelle Academy workshop space
• 4 courses, 10 workshops en 3 e-‐learning modules
• Fric/on: I would like to get a job again. But where do I start? Am I s>ll capable? What do I do with the kids?
• Concept: An agency specializing in aTrac>ve jobs that can be combined with caring for the family. And that helps solve prac>cal problems such as childcare.
• Partnership with Tempo Team, a regular temp agency and subsidiary of Randstad.
• Work4Women has opened begin 2011 with offices in Amsterdam, Den Haag, Eindhoven, Groningen, RoTerdam en Zwolle.
• Special Work4Woman ‘shop in the shop’ with employees who match with the target group
• Partnerships with large childcare organisa>ons in Every part of the Netherlands
Every phase concrete deliverables A smart innova>on
assigment 6 -‐ 10 innova>on opportuni>es
5 -‐ 10 customer fric>ons
Best innova>on opportuni>es
400 -‐ 600 ideas 12 concept descrip>ons
12 tested concept descrip>ons
Best 3 -‐ 4 chosen
3 – 4 mini new business cases
Discover customer insights yourselves
The innova>on assignment gives you focus
Concepts are approved by your customers
Return with mini new business cases
Team approach creates internal support
Five advantages
sara pieters -‐ [email protected] -‐www.redzezel.com