SlideShare a Scribd company logo
1 of 9
Download to read offline
A Jump White Paper October 2011
Creating a Portfolio of Innovations © 2011 Jump Associates Steal This Deck Jump Associates has collaborated with some of the world’s most admired companies to tackle issues around growth and innovation. The ideas, models, and principles that we’ve created have proved themselves to be invaluable to our clients. Now, we’ve decided to share some of those ideas with a wider audience.   JumpIdeas is a white paper series designed for the innovation practitioner – the folks who actually make great things happen. We’ve created this deck to help you spark new ideas, share them with your team, and present them within your company. You should feel free to repurpose anything in this deck for your own benefit in accordance with the Creative Commons License below. Jump Associates LLC 101 South Ellsworth, Suite 600 San Mateo, CA  94401 650 373 7200 915 Broadway, 15 th  Floor New York, NY  10001 212 392 5000 jumpassociates.com [email_address] twitter:  @JumpAssociates © 2011 Jump Associates JumpIdeas by  Jump Associates  is licensed under a  Creative Commons Attribution-NoDerivs 3.0 Unported License . BY  ND
[object Object],[object Object],[object Object],[object Object],[object Object],Not all innovations are created equal. © 2011 Jump Associates cleaning agent ten percent stronger, or in pairing it with a new scent. Breakout  offerings are those that significantly up the level of play within an existing category. The sleek Motorola RAZR, with its boundary-pushing design, was a runaway success for Motorola. Seeing it, customers couldn’t help but want it – over time making it the best-selling line of clamshell phones ever. That said, it was still a clamshell phone, sold and used in much the same way as previous cell phones.  Disruptive  innovations are the sort of big ideas that many of us have in mind when we think about an innovation. They are called disruptive because they disrupt the current market behavior, rendering  existing solutions obsolete, transforming value propositions, and bringing previously marginal customers and companies into the center of  attention. Note that in a given category, disruptive innovations often come first, and are then followed by a series of sustaining innovations with sporadic breakout hits interspersed. Eventually, the market is disrupted once again, starting the cycle anew. Expect different market performance. Because disruptive innovations have the potential to yield the greatest benefit to a company, firms often make the mistake of thinking that disruptive products should lead to immediate market success.  Even worse, some firms unwittingly begin to classify their products purely on the basis of their immediate market forecast, calling likely big hits “disruptive.”  In fact, the opposite is true. Because disruptive offerings differ significantly from the status quo, they often test poorly and require time to gain market acceptance.  Indeed, one should actually be suspicious of so-called disruptive innovations that show immediate widespread success.  “ Firms often make the mistake  of thinking that disruptive products should lead to immediate market success.”
© 2011 Jump Associates The typical profile of revenue performance is: Sustaining : Immediately moderate, then tapering off. Breakout : Rapidly strong, then quickly dropping to a lower level. Disruptive : Longer gestation period leading to exponential growth. Managing different forms of innovation. Too often, work on a disruptive innovation gets bogged down within a system that is optimized for the creation of sustaining offerings. The success of the project comes to depend less on the quality of the innovation and more on the quality of the deals the team can cut. Such projects demonstrate the importance of establishing different metrics and procedures in advance, so teams know the goalposts they’re aiming for and  can tailor their approach accordingly.  For disruptive endeavors, success typically requires different development processes, different approval and funding mechanisms, and different performance expectations. Portfolio implications. By tailoring their product development processes to different types of innovations, a organization has the opportunity to generate immediate new product revenues while still nurturing future opportunities. To support that goal, companies should classify each of its new product concepts within the framework of sustaining, breakout, or disruptive. This allows a company to manage risk and reward at a portfolio level and maintain a healthy balance of all three, so that they are  Categorizing innovations using this framework is an effective way to help ensure that target outcomes are in line with early expectations, and that any organization seeking to innovate has an effective system for doing so. Sustaining Maxwell House Dark Nature Valley Trail Mix Crest Gel Sony Liv Angled brooms Longboard skateboards Disruptive Starbucks PowerBar Crest Toothpaste Napster Vacuum cleaner Segway transports meeting the needs of today and tomorrow. In other cases, companies are able to focus their innovation efforts by clearly stating that they are prioritizing development of breakout products, and consciously minimizing exploration of disruptive opportunities.  Ensure your portfolio matches desired goals. Breakout GF Intl. Coffees Cliff Luna Bar Colgate Total iPod Swiffer Razor scooter
© 2011 Jump Associates Different innovations yield different results. Revenue Performance  Moderate initial success, but return tends to taper off as newness fades.  Revenue Performance  Initial spike in revenue, but returns decrease as competitors enter market. Revenue Performance  May take a while to succeed, and only with early adopters until value realized.  Sustaining Breakout Disruptive $ t t $ t $ Development Minimal research required, but some feature redesign may be required.  Development Market and trend research needed and unique design can spur trial. Development Requires proprietary insight into target market and significant design resources. Marketing Typically an extension of current advertising.  Marketing  Typically aimed at spurring trial, and visual media is more effective.  Marketing  Demonstrations and other non-traditional formats needed to spur trial. Roll-Out Similar revenue curve to existing products makes business model extension straightforward.  Roll-Out Fast peak and decay requires careful market-watching to tune production accordingly.  Roll-Out Slower ramp-up requires a phased roll-out from niche channels to mass channels.
Consumer Behavior Requires no change in behavior.  Consumer Behavior Any change in behavior is minor and typically maps to an existing one. Consumer Behavior Can require a significant change in thinking and behavior.  Consumer Need People are aware of their need.  Consumer Need People may not articulate their need but will often agree when it’s pointed out. Consumer Need People may not understand the need and not even accept it when pointed out.  Understandability People typically require only a brief description to understand it. Understandability People may require a picture or model to understand. Understandability People may need a real, simulated experience to understand it. How do you know which one is which? © 2011 Jump Associates Sustaining Breakout Disruptive People knew they wanted new flavors No change in behavior needed to run the Sony Liv People quickly got the idea of a darker roast If explained, a bar for women was understood Once people saw it, they got it International Coffees elevated the experience It was a new class of food, requiring new behaviors Significant change in how music is obtained, shared No one thought they would pay so much for coffee
Try this on your current innovation portfolio. 1 List Your Portfolio Write the name of 10 representative products and services currently in  your portfolio. ,[object Object],[object Object],[object Object],[object Object],Score Each Offering For each offering, circle the appropriate letter, using the questions below as a guide:  ,[object Object],[object Object],[object Object],[object Object],Totals Product/Service Name Sustaining 1 2 © 2011 Jump Associates 3 Capture Your Totals Add up the number of circles you have in each column and go to the next page to find out what this means. Breakout Disruptive ,[object Object],[object Object],[object Object],[object Object],2 3 4 5 6 7 8 9 10 S B D S B D S B D S B D S B D S B D S B D S B D S B D S B D
How did you do? © 2011 Jump Associates How Your Portfolio Skews Sustaining Focused on the short-term. Breakout  On the breakout treadmill. Disruptive Big bets on the future. The column that ended up with the highest number on the previous page indicates which way your innovation portfolio is skewing. Based on this there are certain things you should consider: Sustaining Portfolio Pros:  Reliable revenue for the short term. Cons:  Ripe for disruption. Actions:  Look at your metrics – you might be killing big ideas without knowing it. Consider  investing resources to explore larger innovations.  Breakout Portfolio Pros:  Highly visible wins, when successful. Cons:  Popularity can fade quickly, requiring repeated breakouts to stay ahead. Actions:  Don’t confuse breakout innovation for disruptive innovation. If you’re going to play the  breakout game, be prepared to invest in developing them repeatedly. Otherwise, work  to diversify your portfolio. Disruptive Portfolio Pros:  Ability to shape the market and call the shots with the potential for a long-term,  sustainable advantage. Done right, it’ll be a new growth driver for years. Cons:  Possibility of cannibalizing your existing offerings’ market share. Can be hard to  predict the full potential, and some efforts will fail. Actions:  Look for opportunities to test big innovations with smaller, sustaining and breakout  offerings earlier on.
[object Object],[object Object],© 2011 Jump Associates LLC 101 South Ellsworth, Suite 600 San Mateo, CA  94401 650 373 7200 915 Broadway, 15 th  Floor New York, NY  10010 212 392 5000 jumpassociates.com [email_address] twitter:  @JumpAssociates

More Related Content

What's hot

Full Program & Tools to Accelerate an Internal Innovation Project - by Board ...
Full Program & Tools to Accelerate an Internal Innovation Project - by Board ...Full Program & Tools to Accelerate an Internal Innovation Project - by Board ...
Full Program & Tools to Accelerate an Internal Innovation Project - by Board ...Board of Innovation
 
Eric Meyer - Replacing the Innovation Funnel
Eric Meyer - Replacing the Innovation FunnelEric Meyer - Replacing the Innovation Funnel
Eric Meyer - Replacing the Innovation FunnelCincinnati Innovation
 
Lean Product Management: The Art of Known Unknowns
Lean Product Management: The Art of Known UnknownsLean Product Management: The Art of Known Unknowns
Lean Product Management: The Art of Known UnknownsNatalie Hollier
 
Intro to Product Management - Launch48 Pre-Accelerator Week
Intro to Product Management - Launch48 Pre-Accelerator WeekIntro to Product Management - Launch48 Pre-Accelerator Week
Intro to Product Management - Launch48 Pre-Accelerator WeekJanna Bastow
 
I q amplifier innovation slide share
I q   amplifier innovation slide shareI q   amplifier innovation slide share
I q amplifier innovation slide shareKudzu Tech
 
Design thinking & lean startup
Design thinking & lean startupDesign thinking & lean startup
Design thinking & lean startupRemko Vermeulen
 
Strategyn_Outcome_Driven_Innovation
Strategyn_Outcome_Driven_InnovationStrategyn_Outcome_Driven_Innovation
Strategyn_Outcome_Driven_InnovationKimon Paxinos
 
The Lean Startup - Basics
The Lean Startup - BasicsThe Lean Startup - Basics
The Lean Startup - BasicsNETNODE AG
 
New Technology Lecture L09 The Innovator's Dilemma
New Technology Lecture L09 The Innovator's DilemmaNew Technology Lecture L09 The Innovator's Dilemma
New Technology Lecture L09 The Innovator's DilemmaÓlafur Andri Ragnarsson
 
Clorox Open Innovation
Clorox Open InnovationClorox Open Innovation
Clorox Open InnovationMatthew_Dudas
 
Building Great Innovation Challenges - 1st Edition v3
Building Great Innovation Challenges - 1st Edition v3Building Great Innovation Challenges - 1st Edition v3
Building Great Innovation Challenges - 1st Edition v3GreenData.IO
 
The LEAN BUSINESS MODEL GAMEBOARD: A Fun Way to Holistically Learn, Master, a...
The LEAN BUSINESS MODEL GAMEBOARD: A Fun Way to Holistically Learn, Master, a...The LEAN BUSINESS MODEL GAMEBOARD: A Fun Way to Holistically Learn, Master, a...
The LEAN BUSINESS MODEL GAMEBOARD: A Fun Way to Holistically Learn, Master, a...Rod King, Ph.D.
 
The Lean Startup - Startup Analytics
The Lean Startup - Startup AnalyticsThe Lean Startup - Startup Analytics
The Lean Startup - Startup AnalyticsDr. Judith Grummer
 
Infograph be tech accelerators
Infograph be tech acceleratorsInfograph be tech accelerators
Infograph be tech acceleratorsOmar Mohout
 
Scalable Startup Entrepreneurship
Scalable Startup EntrepreneurshipScalable Startup Entrepreneurship
Scalable Startup EntrepreneurshipTushar Khodankar
 

What's hot (20)

Full Program & Tools to Accelerate an Internal Innovation Project - by Board ...
Full Program & Tools to Accelerate an Internal Innovation Project - by Board ...Full Program & Tools to Accelerate an Internal Innovation Project - by Board ...
Full Program & Tools to Accelerate an Internal Innovation Project - by Board ...
 
Eric Meyer - Replacing the Innovation Funnel
Eric Meyer - Replacing the Innovation FunnelEric Meyer - Replacing the Innovation Funnel
Eric Meyer - Replacing the Innovation Funnel
 
L09 The Innovator's Dilemma
L09 The Innovator's DilemmaL09 The Innovator's Dilemma
L09 The Innovator's Dilemma
 
Start up lifecycle
Start up lifecycle Start up lifecycle
Start up lifecycle
 
Lean Product Management: The Art of Known Unknowns
Lean Product Management: The Art of Known UnknownsLean Product Management: The Art of Known Unknowns
Lean Product Management: The Art of Known Unknowns
 
Genesis Startup Master Class
Genesis Startup Master ClassGenesis Startup Master Class
Genesis Startup Master Class
 
Intro to Product Management - Launch48 Pre-Accelerator Week
Intro to Product Management - Launch48 Pre-Accelerator WeekIntro to Product Management - Launch48 Pre-Accelerator Week
Intro to Product Management - Launch48 Pre-Accelerator Week
 
I q amplifier innovation slide share
I q   amplifier innovation slide shareI q   amplifier innovation slide share
I q amplifier innovation slide share
 
Design thinking & lean startup
Design thinking & lean startupDesign thinking & lean startup
Design thinking & lean startup
 
Strategyn_Outcome_Driven_Innovation
Strategyn_Outcome_Driven_InnovationStrategyn_Outcome_Driven_Innovation
Strategyn_Outcome_Driven_Innovation
 
The Lean Startup - Basics
The Lean Startup - BasicsThe Lean Startup - Basics
The Lean Startup - Basics
 
User driven development
User driven developmentUser driven development
User driven development
 
New Technology Lecture L09 The Innovator's Dilemma
New Technology Lecture L09 The Innovator's DilemmaNew Technology Lecture L09 The Innovator's Dilemma
New Technology Lecture L09 The Innovator's Dilemma
 
The Startup Lifecycle (Presented by CEI and friends)
The Startup Lifecycle (Presented by CEI and friends)The Startup Lifecycle (Presented by CEI and friends)
The Startup Lifecycle (Presented by CEI and friends)
 
Clorox Open Innovation
Clorox Open InnovationClorox Open Innovation
Clorox Open Innovation
 
Building Great Innovation Challenges - 1st Edition v3
Building Great Innovation Challenges - 1st Edition v3Building Great Innovation Challenges - 1st Edition v3
Building Great Innovation Challenges - 1st Edition v3
 
The LEAN BUSINESS MODEL GAMEBOARD: A Fun Way to Holistically Learn, Master, a...
The LEAN BUSINESS MODEL GAMEBOARD: A Fun Way to Holistically Learn, Master, a...The LEAN BUSINESS MODEL GAMEBOARD: A Fun Way to Holistically Learn, Master, a...
The LEAN BUSINESS MODEL GAMEBOARD: A Fun Way to Holistically Learn, Master, a...
 
The Lean Startup - Startup Analytics
The Lean Startup - Startup AnalyticsThe Lean Startup - Startup Analytics
The Lean Startup - Startup Analytics
 
Infograph be tech accelerators
Infograph be tech acceleratorsInfograph be tech accelerators
Infograph be tech accelerators
 
Scalable Startup Entrepreneurship
Scalable Startup EntrepreneurshipScalable Startup Entrepreneurship
Scalable Startup Entrepreneurship
 

Viewers also liked

Red Giant Syndrome - How to turn around a tech juggernaut on the verge of imp...
Red Giant Syndrome - How to turn around a tech juggernaut on the verge of imp...Red Giant Syndrome - How to turn around a tech juggernaut on the verge of imp...
Red Giant Syndrome - How to turn around a tech juggernaut on the verge of imp...Jump Associates
 
Creating Growth From Retail's New Crossroads
Creating Growth From Retail's New CrossroadsCreating Growth From Retail's New Crossroads
Creating Growth From Retail's New CrossroadsFahrenheit 212
 
3 keynote dtaiwan20100907_ntu_3_bruce_empathy_c
3 keynote dtaiwan20100907_ntu_3_bruce_empathy_c3 keynote dtaiwan20100907_ntu_3_bruce_empathy_c
3 keynote dtaiwan20100907_ntu_3_bruce_empathy_cPraludium Liu
 
Fahrenheit 212: Big Entrepreneurship
Fahrenheit 212: Big EntrepreneurshipFahrenheit 212: Big Entrepreneurship
Fahrenheit 212: Big EntrepreneurshipFahrenheit 212
 
Intrapreneurship: How GoDaddy & Adobe Nurture Their Employees' Innovation
Intrapreneurship: How GoDaddy & Adobe Nurture Their Employees' InnovationIntrapreneurship: How GoDaddy & Adobe Nurture Their Employees' Innovation
Intrapreneurship: How GoDaddy & Adobe Nurture Their Employees' InnovationCenter For Entrepreneurial Innovation
 
The Chief Innovation Officer, Redefined
The Chief Innovation Officer, RedefinedThe Chief Innovation Officer, Redefined
The Chief Innovation Officer, RedefinedFahrenheit 212
 
Pitch Deck - ein kurzer Leitfaden von und für Seedmatch
Pitch Deck - ein kurzer Leitfaden von und für SeedmatchPitch Deck - ein kurzer Leitfaden von und für Seedmatch
Pitch Deck - ein kurzer Leitfaden von und für SeedmatchSeedmatch
 
Brand Communications
Brand CommunicationsBrand Communications
Brand CommunicationsSj -
 
Doinvest pitchdeck
Doinvest pitchdeckDoinvest pitchdeck
Doinvest pitchdeckdoInvest
 
Belief in a Just World: Consumer Intentions and Behaviors Toward Ethical Prod...
Belief in a Just World: Consumer Intentions and Behaviors Toward Ethical Prod...Belief in a Just World: Consumer Intentions and Behaviors Toward Ethical Prod...
Belief in a Just World: Consumer Intentions and Behaviors Toward Ethical Prod...Filip Sokołowski
 
The slide deck we used to raise half a million dollars
The slide deck we used to raise half a million dollarsThe slide deck we used to raise half a million dollars
The slide deck we used to raise half a million dollarsBuffer
 
SEOmoz Pitch Deck July 2011
SEOmoz Pitch Deck July 2011SEOmoz Pitch Deck July 2011
SEOmoz Pitch Deck July 2011Rand Fishkin
 

Viewers also liked (19)

Red Giant Syndrome - How to turn around a tech juggernaut on the verge of imp...
Red Giant Syndrome - How to turn around a tech juggernaut on the verge of imp...Red Giant Syndrome - How to turn around a tech juggernaut on the verge of imp...
Red Giant Syndrome - How to turn around a tech juggernaut on the verge of imp...
 
Taxonomy 101
Taxonomy 101Taxonomy 101
Taxonomy 101
 
Creating Growth From Retail's New Crossroads
Creating Growth From Retail's New CrossroadsCreating Growth From Retail's New Crossroads
Creating Growth From Retail's New Crossroads
 
3 keynote dtaiwan20100907_ntu_3_bruce_empathy_c
3 keynote dtaiwan20100907_ntu_3_bruce_empathy_c3 keynote dtaiwan20100907_ntu_3_bruce_empathy_c
3 keynote dtaiwan20100907_ntu_3_bruce_empathy_c
 
The Rising Billion
The Rising BillionThe Rising Billion
The Rising Billion
 
The Paradox of Scale
The Paradox of ScaleThe Paradox of Scale
The Paradox of Scale
 
Incubating Innovation
Incubating InnovationIncubating Innovation
Incubating Innovation
 
Fahrenheit 212: Big Entrepreneurship
Fahrenheit 212: Big EntrepreneurshipFahrenheit 212: Big Entrepreneurship
Fahrenheit 212: Big Entrepreneurship
 
Natural Selection
Natural SelectionNatural Selection
Natural Selection
 
Intrapreneurship: How GoDaddy & Adobe Nurture Their Employees' Innovation
Intrapreneurship: How GoDaddy & Adobe Nurture Their Employees' InnovationIntrapreneurship: How GoDaddy & Adobe Nurture Their Employees' Innovation
Intrapreneurship: How GoDaddy & Adobe Nurture Their Employees' Innovation
 
The Chief Innovation Officer, Redefined
The Chief Innovation Officer, RedefinedThe Chief Innovation Officer, Redefined
The Chief Innovation Officer, Redefined
 
Pitch Deck - ein kurzer Leitfaden von und für Seedmatch
Pitch Deck - ein kurzer Leitfaden von und für SeedmatchPitch Deck - ein kurzer Leitfaden von und für Seedmatch
Pitch Deck - ein kurzer Leitfaden von und für Seedmatch
 
Brand Communications
Brand CommunicationsBrand Communications
Brand Communications
 
Doinvest pitchdeck
Doinvest pitchdeckDoinvest pitchdeck
Doinvest pitchdeck
 
Belief in a Just World: Consumer Intentions and Behaviors Toward Ethical Prod...
Belief in a Just World: Consumer Intentions and Behaviors Toward Ethical Prod...Belief in a Just World: Consumer Intentions and Behaviors Toward Ethical Prod...
Belief in a Just World: Consumer Intentions and Behaviors Toward Ethical Prod...
 
Campus TV - PitchDeck
Campus TV - PitchDeckCampus TV - PitchDeck
Campus TV - PitchDeck
 
Build a Better Entrepreneur Pitch Deck
Build a Better Entrepreneur Pitch DeckBuild a Better Entrepreneur Pitch Deck
Build a Better Entrepreneur Pitch Deck
 
The slide deck we used to raise half a million dollars
The slide deck we used to raise half a million dollarsThe slide deck we used to raise half a million dollars
The slide deck we used to raise half a million dollars
 
SEOmoz Pitch Deck July 2011
SEOmoz Pitch Deck July 2011SEOmoz Pitch Deck July 2011
SEOmoz Pitch Deck July 2011
 

Similar to JumpIdeas Creating a Portfolio of Innovations

SHQ - Disruption is Your Opportunity
SHQ - Disruption is Your OpportunitySHQ - Disruption is Your Opportunity
SHQ - Disruption is Your OpportunityKristi Castano
 
Bundledarrows180 bit.ly/stanfordstartupscamp307
Bundledarrows180 bit.ly/stanfordstartupscamp307Bundledarrows180 bit.ly/stanfordstartupscamp307
Bundledarrows180 bit.ly/stanfordstartupscamp307shadowboxingtv
 
write a one page comment based in each answer below.1- Corporate e.docx
write a one page comment based in each answer below.1- Corporate e.docxwrite a one page comment based in each answer below.1- Corporate e.docx
write a one page comment based in each answer below.1- Corporate e.docxMelvinaLeepercy
 
PRODUCT-INNOVATION
PRODUCT-INNOVATIONPRODUCT-INNOVATION
PRODUCT-INNOVATIONRAPertez
 
Seven Ways Traditional Companies Can Succeed with Disruptive Innovation
Seven Ways Traditional Companies Can Succeed with Disruptive InnovationSeven Ways Traditional Companies Can Succeed with Disruptive Innovation
Seven Ways Traditional Companies Can Succeed with Disruptive InnovationCognizant
 
Bundledarrows200 http://bit.ly/skynetstanfordapi
Bundledarrows200  http://bit.ly/skynetstanfordapiBundledarrows200  http://bit.ly/skynetstanfordapi
Bundledarrows200 http://bit.ly/skynetstanfordapishadowboxingtv
 
Ne laissez pas mourir vos prometteuses innovations de rupture !
Ne laissez pas mourir vos prometteuses innovations de rupture !Ne laissez pas mourir vos prometteuses innovations de rupture !
Ne laissez pas mourir vos prometteuses innovations de rupture !Ipsos France
 
Presentation 3 of 4
Presentation 3 of 4 Presentation 3 of 4
Presentation 3 of 4 Brian Hawkins
 
Building an agile business
Building an agile businessBuilding an agile business
Building an agile businessBarry Thomas
 
Introducing new market offering
Introducing new market offeringIntroducing new market offering
Introducing new market offeringMahfuzur Rahman
 
VicHealth Physical Activity Innovation Challenge Concept Development Workshop...
VicHealth Physical Activity Innovation Challenge Concept Development Workshop...VicHealth Physical Activity Innovation Challenge Concept Development Workshop...
VicHealth Physical Activity Innovation Challenge Concept Development Workshop...Doing Something Good
 
How to build a valuable business with innovation
How to build a valuable business with innovationHow to build a valuable business with innovation
How to build a valuable business with innovationBradley Pallister
 
Vivaldi UK Capabilities | Retail
Vivaldi UK Capabilities | RetailVivaldi UK Capabilities | Retail
Vivaldi UK Capabilities | RetailRichard Rolka
 
TrainingIndustryInnovationArticle-Mandel-Summer2015
TrainingIndustryInnovationArticle-Mandel-Summer2015TrainingIndustryInnovationArticle-Mandel-Summer2015
TrainingIndustryInnovationArticle-Mandel-Summer2015Beth Boone
 
6 Mistakes Organizations Make When Trying to Implement Transformation
6 Mistakes Organizations Make When Trying to Implement Transformation 6 Mistakes Organizations Make When Trying to Implement Transformation
6 Mistakes Organizations Make When Trying to Implement Transformation Keren Levy
 
Leading The Revolution - Gary Hamel
Leading The Revolution - Gary HamelLeading The Revolution - Gary Hamel
Leading The Revolution - Gary HamelYaw Chooi Fun
 
information need for paperWhy Is This ImportantProduc.docx
information need for paperWhy Is This ImportantProduc.docxinformation need for paperWhy Is This ImportantProduc.docx
information need for paperWhy Is This ImportantProduc.docxlanagore871
 
The S Curve of Business: The Key Levers to Sustaining Momentum for Your Brand
The S Curve of Business: The Key Levers to Sustaining Momentum for Your BrandThe S Curve of Business: The Key Levers to Sustaining Momentum for Your Brand
The S Curve of Business: The Key Levers to Sustaining Momentum for Your BrandRocketSource
 

Similar to JumpIdeas Creating a Portfolio of Innovations (20)

SHQ - Disruption is Your Opportunity
SHQ - Disruption is Your OpportunitySHQ - Disruption is Your Opportunity
SHQ - Disruption is Your Opportunity
 
Bundledarrows180 bit.ly/stanfordstartupscamp307
Bundledarrows180 bit.ly/stanfordstartupscamp307Bundledarrows180 bit.ly/stanfordstartupscamp307
Bundledarrows180 bit.ly/stanfordstartupscamp307
 
write a one page comment based in each answer below.1- Corporate e.docx
write a one page comment based in each answer below.1- Corporate e.docxwrite a one page comment based in each answer below.1- Corporate e.docx
write a one page comment based in each answer below.1- Corporate e.docx
 
PRODUCT-INNOVATION
PRODUCT-INNOVATIONPRODUCT-INNOVATION
PRODUCT-INNOVATION
 
Seven Ways Traditional Companies Can Succeed with Disruptive Innovation
Seven Ways Traditional Companies Can Succeed with Disruptive InnovationSeven Ways Traditional Companies Can Succeed with Disruptive Innovation
Seven Ways Traditional Companies Can Succeed with Disruptive Innovation
 
Bundledarrows200 http://bit.ly/skynetstanfordapi
Bundledarrows200  http://bit.ly/skynetstanfordapiBundledarrows200  http://bit.ly/skynetstanfordapi
Bundledarrows200 http://bit.ly/skynetstanfordapi
 
Ne laissez pas mourir vos prometteuses innovations de rupture !
Ne laissez pas mourir vos prometteuses innovations de rupture !Ne laissez pas mourir vos prometteuses innovations de rupture !
Ne laissez pas mourir vos prometteuses innovations de rupture !
 
Presentation 3 of 4
Presentation 3 of 4 Presentation 3 of 4
Presentation 3 of 4
 
Building an agile business
Building an agile businessBuilding an agile business
Building an agile business
 
Introducing new market offering
Introducing new market offeringIntroducing new market offering
Introducing new market offering
 
Breakthrough Innovation
Breakthrough InnovationBreakthrough Innovation
Breakthrough Innovation
 
VicHealth Physical Activity Innovation Challenge Concept Development Workshop...
VicHealth Physical Activity Innovation Challenge Concept Development Workshop...VicHealth Physical Activity Innovation Challenge Concept Development Workshop...
VicHealth Physical Activity Innovation Challenge Concept Development Workshop...
 
How to build a valuable business with innovation
How to build a valuable business with innovationHow to build a valuable business with innovation
How to build a valuable business with innovation
 
Genesis
GenesisGenesis
Genesis
 
Vivaldi UK Capabilities | Retail
Vivaldi UK Capabilities | RetailVivaldi UK Capabilities | Retail
Vivaldi UK Capabilities | Retail
 
TrainingIndustryInnovationArticle-Mandel-Summer2015
TrainingIndustryInnovationArticle-Mandel-Summer2015TrainingIndustryInnovationArticle-Mandel-Summer2015
TrainingIndustryInnovationArticle-Mandel-Summer2015
 
6 Mistakes Organizations Make When Trying to Implement Transformation
6 Mistakes Organizations Make When Trying to Implement Transformation 6 Mistakes Organizations Make When Trying to Implement Transformation
6 Mistakes Organizations Make When Trying to Implement Transformation
 
Leading The Revolution - Gary Hamel
Leading The Revolution - Gary HamelLeading The Revolution - Gary Hamel
Leading The Revolution - Gary Hamel
 
information need for paperWhy Is This ImportantProduc.docx
information need for paperWhy Is This ImportantProduc.docxinformation need for paperWhy Is This ImportantProduc.docx
information need for paperWhy Is This ImportantProduc.docx
 
The S Curve of Business: The Key Levers to Sustaining Momentum for Your Brand
The S Curve of Business: The Key Levers to Sustaining Momentum for Your BrandThe S Curve of Business: The Key Levers to Sustaining Momentum for Your Brand
The S Curve of Business: The Key Levers to Sustaining Momentum for Your Brand
 

Recently uploaded

Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
Company Profile and SWOT Analysis Product List.pdf
Company Profile and SWOT Analysis Product List.pdfCompany Profile and SWOT Analysis Product List.pdf
Company Profile and SWOT Analysis Product List.pdfRobertPhillips265023
 
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessQ2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessAPCO
 
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...AustraliaChapterIIBA
 
Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarNathanielSchmuck
 
MC Heights construction company in Jhang
MC Heights construction company in JhangMC Heights construction company in Jhang
MC Heights construction company in Jhangmcgroupjeya
 
Al Taj Al Malaki Company Profile -------
Al Taj Al Malaki Company Profile -------Al Taj Al Malaki Company Profile -------
Al Taj Al Malaki Company Profile -------ThanzirNazer
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsWristbands Ireland
 
Human Resource Management Chapter 9: Performance Management and Appraisal
Human Resource Management Chapter 9: Performance Management and AppraisalHuman Resource Management Chapter 9: Performance Management and Appraisal
Human Resource Management Chapter 9: Performance Management and Appraisalgomezdominic3
 
Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Winbusinessin
 
מיסוי רילוקיישן לפורטוגל- היבטי מיסוי ישראלי ופורטוגלי
מיסוי רילוקיישן לפורטוגל- היבטי מיסוי ישראלי ופורטוגלימיסוי רילוקיישן לפורטוגל- היבטי מיסוי ישראלי ופורטוגלי
מיסוי רילוקיישן לפורטוגל- היבטי מיסוי ישראלי ופורטוגליBen Shushan & Co. C.P.A (Isr.)
 
7movierulz.uk
7movierulz.uk7movierulz.uk
7movierulz.ukaroemirsr
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHelene Heckrotte
 
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access
 
Transform Your Kitchen Essential Tips for Renovations in Launceston
Transform Your Kitchen Essential Tips for Renovations in LauncestonTransform Your Kitchen Essential Tips for Renovations in Launceston
Transform Your Kitchen Essential Tips for Renovations in Launcestondjhbuildersau
 
NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023Steve Rader
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBBPMedia1
 

Recently uploaded (20)

Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
Company Profile and SWOT Analysis Product List.pdf
Company Profile and SWOT Analysis Product List.pdfCompany Profile and SWOT Analysis Product List.pdf
Company Profile and SWOT Analysis Product List.pdf
 
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessQ2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
 
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
 
Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry Webinar
 
MC Heights construction company in Jhang
MC Heights construction company in JhangMC Heights construction company in Jhang
MC Heights construction company in Jhang
 
Al Taj Al Malaki Company Profile -------
Al Taj Al Malaki Company Profile -------Al Taj Al Malaki Company Profile -------
Al Taj Al Malaki Company Profile -------
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and Festivals
 
Human Resource Management Chapter 9: Performance Management and Appraisal
Human Resource Management Chapter 9: Performance Management and AppraisalHuman Resource Management Chapter 9: Performance Management and Appraisal
Human Resource Management Chapter 9: Performance Management and Appraisal
 
Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024
 
AL Satwa Dubai Call Girls +971552825767 Call Girls In AL Karama
AL Satwa Dubai Call Girls +971552825767  Call Girls In AL KaramaAL Satwa Dubai Call Girls +971552825767  Call Girls In AL Karama
AL Satwa Dubai Call Girls +971552825767 Call Girls In AL Karama
 
מיסוי רילוקיישן לפורטוגל- היבטי מיסוי ישראלי ופורטוגלי
מיסוי רילוקיישן לפורטוגל- היבטי מיסוי ישראלי ופורטוגלימיסוי רילוקיישן לפורטוגל- היבטי מיסוי ישראלי ופורטוגלי
מיסוי רילוקיישן לפורטוגל- היבטי מיסוי ישראלי ופורטוגלי
 
7movierulz.uk
7movierulz.uk7movierulz.uk
7movierulz.uk
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
 
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
 
Investment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV IndustriesInvestment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV Industries
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024
 
Transform Your Kitchen Essential Tips for Renovations in Launceston
Transform Your Kitchen Essential Tips for Renovations in LauncestonTransform Your Kitchen Essential Tips for Renovations in Launceston
Transform Your Kitchen Essential Tips for Renovations in Launceston
 
NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
 

JumpIdeas Creating a Portfolio of Innovations

  • 1. A Jump White Paper October 2011
  • 2. Creating a Portfolio of Innovations © 2011 Jump Associates Steal This Deck Jump Associates has collaborated with some of the world’s most admired companies to tackle issues around growth and innovation. The ideas, models, and principles that we’ve created have proved themselves to be invaluable to our clients. Now, we’ve decided to share some of those ideas with a wider audience.   JumpIdeas is a white paper series designed for the innovation practitioner – the folks who actually make great things happen. We’ve created this deck to help you spark new ideas, share them with your team, and present them within your company. You should feel free to repurpose anything in this deck for your own benefit in accordance with the Creative Commons License below. Jump Associates LLC 101 South Ellsworth, Suite 600 San Mateo, CA 94401 650 373 7200 915 Broadway, 15 th Floor New York, NY 10001 212 392 5000 jumpassociates.com [email_address] twitter: @JumpAssociates © 2011 Jump Associates JumpIdeas by Jump Associates is licensed under a Creative Commons Attribution-NoDerivs 3.0 Unported License . BY ND
  • 3.
  • 4. © 2011 Jump Associates The typical profile of revenue performance is: Sustaining : Immediately moderate, then tapering off. Breakout : Rapidly strong, then quickly dropping to a lower level. Disruptive : Longer gestation period leading to exponential growth. Managing different forms of innovation. Too often, work on a disruptive innovation gets bogged down within a system that is optimized for the creation of sustaining offerings. The success of the project comes to depend less on the quality of the innovation and more on the quality of the deals the team can cut. Such projects demonstrate the importance of establishing different metrics and procedures in advance, so teams know the goalposts they’re aiming for and can tailor their approach accordingly. For disruptive endeavors, success typically requires different development processes, different approval and funding mechanisms, and different performance expectations. Portfolio implications. By tailoring their product development processes to different types of innovations, a organization has the opportunity to generate immediate new product revenues while still nurturing future opportunities. To support that goal, companies should classify each of its new product concepts within the framework of sustaining, breakout, or disruptive. This allows a company to manage risk and reward at a portfolio level and maintain a healthy balance of all three, so that they are Categorizing innovations using this framework is an effective way to help ensure that target outcomes are in line with early expectations, and that any organization seeking to innovate has an effective system for doing so. Sustaining Maxwell House Dark Nature Valley Trail Mix Crest Gel Sony Liv Angled brooms Longboard skateboards Disruptive Starbucks PowerBar Crest Toothpaste Napster Vacuum cleaner Segway transports meeting the needs of today and tomorrow. In other cases, companies are able to focus their innovation efforts by clearly stating that they are prioritizing development of breakout products, and consciously minimizing exploration of disruptive opportunities. Ensure your portfolio matches desired goals. Breakout GF Intl. Coffees Cliff Luna Bar Colgate Total iPod Swiffer Razor scooter
  • 5. © 2011 Jump Associates Different innovations yield different results. Revenue Performance Moderate initial success, but return tends to taper off as newness fades. Revenue Performance Initial spike in revenue, but returns decrease as competitors enter market. Revenue Performance May take a while to succeed, and only with early adopters until value realized. Sustaining Breakout Disruptive $ t t $ t $ Development Minimal research required, but some feature redesign may be required. Development Market and trend research needed and unique design can spur trial. Development Requires proprietary insight into target market and significant design resources. Marketing Typically an extension of current advertising. Marketing Typically aimed at spurring trial, and visual media is more effective. Marketing Demonstrations and other non-traditional formats needed to spur trial. Roll-Out Similar revenue curve to existing products makes business model extension straightforward. Roll-Out Fast peak and decay requires careful market-watching to tune production accordingly. Roll-Out Slower ramp-up requires a phased roll-out from niche channels to mass channels.
  • 6. Consumer Behavior Requires no change in behavior. Consumer Behavior Any change in behavior is minor and typically maps to an existing one. Consumer Behavior Can require a significant change in thinking and behavior. Consumer Need People are aware of their need. Consumer Need People may not articulate their need but will often agree when it’s pointed out. Consumer Need People may not understand the need and not even accept it when pointed out. Understandability People typically require only a brief description to understand it. Understandability People may require a picture or model to understand. Understandability People may need a real, simulated experience to understand it. How do you know which one is which? © 2011 Jump Associates Sustaining Breakout Disruptive People knew they wanted new flavors No change in behavior needed to run the Sony Liv People quickly got the idea of a darker roast If explained, a bar for women was understood Once people saw it, they got it International Coffees elevated the experience It was a new class of food, requiring new behaviors Significant change in how music is obtained, shared No one thought they would pay so much for coffee
  • 7.
  • 8. How did you do? © 2011 Jump Associates How Your Portfolio Skews Sustaining Focused on the short-term. Breakout On the breakout treadmill. Disruptive Big bets on the future. The column that ended up with the highest number on the previous page indicates which way your innovation portfolio is skewing. Based on this there are certain things you should consider: Sustaining Portfolio Pros: Reliable revenue for the short term. Cons: Ripe for disruption. Actions: Look at your metrics – you might be killing big ideas without knowing it. Consider investing resources to explore larger innovations. Breakout Portfolio Pros: Highly visible wins, when successful. Cons: Popularity can fade quickly, requiring repeated breakouts to stay ahead. Actions: Don’t confuse breakout innovation for disruptive innovation. If you’re going to play the breakout game, be prepared to invest in developing them repeatedly. Otherwise, work to diversify your portfolio. Disruptive Portfolio Pros: Ability to shape the market and call the shots with the potential for a long-term, sustainable advantage. Done right, it’ll be a new growth driver for years. Cons: Possibility of cannibalizing your existing offerings’ market share. Can be hard to predict the full potential, and some efforts will fail. Actions: Look for opportunities to test big innovations with smaller, sustaining and breakout offerings earlier on.
  • 9.