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INNOVATION MANAGEMENT
    + DESIGN PRACTICE

       CHALLENGES
FOR SOCIAL ENTREPRENEURS


 Originally presented to I2C Team, New York, 4 October 2010
                      Julian Keith Loren
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES



                         INTRODUCTION

              Social Entrepreneurs and Social Innovators
             are dedicated to finding innovative solutions
                     to perplexing global problems




10/19/2010           Julian Keith Loren, Innovation Management Institute.    2
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES



                          INTRODUCTION

              Social Entrepreneurs and Social Innovators
             are dedicated to finding innovative solutions
                     to perplexing global problems




             ILLITERACY                                      HUNGER

                                   DISEASE

             POLLUTION                                  HOMELESSNESS


10/19/2010           Julian Keith Loren, Innovation Management Institute.    3
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES



                                    ISSUE

             But Social Entrepreneurs and Social Innovators
             often find that their education and experience
               has not adequately prepared them for the
                        challenges that they face.




10/19/2010            Julian Keith Loren, Innovation Management Institute.    4
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES



                                       EXAMPLE


                            A Social Venture has a big goal …




             … a business parter …                          … and a design partner



10/19/2010                   Julian Keith Loren, Innovation Management Institute.    5
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES



                         BUSINESS PARTNER

  I have lots of
  experience + an MBA
  from a great school.




10/19/2010               Julian Keith Loren, Innovation Management Institute.    6
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES



                           BUSINESS PARTNER



 HAVE
  I’m good at managing:

  • Reasonably well-defined

  • Relatively well-understood

  • Incremental
   improvements
   to operations



10/19/2010                Julian Keith Loren, Innovation Management Institute.    7
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES



                           BUSINESS PARTNER



 HAVE                                                                                 NEED
  I’m good at managing:                                     But I’m trying to manage:

  • Reasonably well-defined                                 • The unpredictable

  • Relatively well-understood                              • The “never been done
                                                              before”
  • Incremental
   improvements                                             • Delivering disruptive
   to operations                                              innovation that has
                                                              huge positive impact


10/19/2010                Julian Keith Loren, Innovation Management Institute.               8
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES



                             DESIGN PARTNER

  I have the best design
  education available +
  a great portfolio.




10/19/2010                 Julian Keith Loren, Innovation Management Institute.    9
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES



                              DESIGN PARTNER



 HAVE
  I can radically reimagine
  products + services when
  all externalities exist.




10/19/2010                Julian Keith Loren, Innovation Management Institute.   10
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES



                                 DESIGN PARTNER



    HAVE
     I can radically reimagine
     products + services when
     all externalities exist.



  DESIGN
                            DESIGN
COMFORT                   CHALLENGE
   ZONE
All Externalities Exist




 10/19/2010                  Julian Keith Loren, Innovation Management Institute.   11
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES



                                 DESIGN PARTNER



    HAVE                                                                                   NEED
     I can radically reimagine                                 But I’m trying to design:
     products + services when
     all externalities exist.                                  • Wa-a-a-a-ay outside of the
                                                                 DESIGN COMFORT ZONE

                                                               • Design entire systems or
  DESIGN                                                         industry models
                            DESIGN
COMFORT                   CHALLENGE
   ZONE                                                        • Design within constraints
All Externalities Exist                                          that I’ve never imagined!


 10/19/2010                  Julian Keith Loren, Innovation Management Institute.             12
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES



                           CHALLENGES

                    There is a relationship between …




                Distance from the DESIGN COMFORT ZONE


       DESIGN                                                              WAY
     COMFORT                                                               OUTSIDE
        ZONE                                                               THE ZONE



10/19/2010          Julian Keith Loren, Innovation Management Institute.     13
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES



                                      CHALLENGES

                               There is a relationship between
    HUGE
    “IDEA               distance from the DESIGN COMFORT ZONE
MOLECULE”
                                                    and …


                   Number of
                   Required
                   Ideas


        SINGLE
         “IDEA
        ATOM”

                                 Distance from the Design Comfort Zone
          DESIGN                                                                      WAY
        COMFORT                                                                       OUTSIDE
           ZONE                                                                       THE ZONE



 10/19/2010                    Julian Keith Loren, Innovation Management Institute.     14
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES



                            CHALLENGES
                                    Typically,
    HUGE
                   the FURTHER from the DESIGN COMFORT ZONE,
    “IDEA
MOLECULE”




      Number of
       Required
          Ideas




        SINGLE
         “IDEA
        ATOM”

                       Distance from the Design Comfort Zone
          DESIGN                                                            WAY
        COMFORT                                                             OUTSIDE
           ZONE                                                             THE ZONE



 10/19/2010          Julian Keith Loren, Innovation Management Institute.     15
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES



                                  CHALLENGES
                                           Typically,
    HUGE
                         the FURTHER from the DESIGN COMFORT ZONE,
    “IDEA
MOLECULE”
                   the LARGER the necessary team of mutually-reinforcing ideas




      Number of
       Required
          Ideas




        SINGLE
         “IDEA
        ATOM”

                              Distance from the Design Comfort Zone
          DESIGN                                                                  WAY
        COMFORT                                                                   OUTSIDE
           ZONE                                                                   THE ZONE



 10/19/2010                Julian Keith Loren, Innovation Management Institute.     16
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES



                                    CHALLENGES
                   The vast majority of solutions lie within the region shown below
    HUGE
    “IDEA
MOLECULE”




      Number of
       Required
          Ideas                            Most Solutions



        SINGLE
         “IDEA
        ATOM”

                               Distance from the Design Comfort Zone
          DESIGN                                                                      WAY
        COMFORT                                                                       OUTSIDE
           ZONE                                                                       THE ZONE



 10/19/2010                  Julian Keith Loren, Innovation Management Institute.       17
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES



                          CHALLENGES

    HUGE
    “IDEA                                          Problems here can’t
MOLECULE”
                                                   be addressed by small
                                                   teams of ideas.

      Number of
       Required
          Ideas




        SINGLE
         “IDEA
        ATOM”

                     Distance from the Design Comfort Zone
          DESIGN                                                           WAY
        COMFORT                                                            OUTSIDE
           ZONE                                                            THE ZONE



 10/19/2010        Julian Keith Loren, Innovation Management Institute.      18
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES



                                      CHALLENGES
                                                                                Social venture
                                              EXAMPLES                            developing
                                                                             innovative products
    HUGE
                                 Minimally-                                  or services for rural
    “IDEA                                             Innovation
MOLECULE”                        disruptive                                   sub-saharan Africa
                                                   supporting White
                   Award-           new           Space / Blue Ocean
                   winning        business          Strategy® goals
                   product         model
                    design

      Number of
       Required
          Ideas

                                                               Product or
                                                                 service
                                                             requiring new
                                                               customer
        SINGLE
         “IDEA
                                                               behaviors
        ATOM”
                             Incremental
                                    Distance from the Design Comfort Zone
                              product or
                                service
          DESIGN                                                                                     WAY
        COMFORT               innovation                                                             OUTSIDE
           ZONE                                                                                      THE ZONE



 10/19/2010                    Julian Keith Loren, Innovation Management Institute.                    19
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES



                                      CHALLENGES

    HUGE
    “IDEA
MOLECULE”    Here you should
             reserve judgment +
             prototype quickly.

      Number of
       Required
          Ideas




        SINGLE
         “IDEA
        ATOM”

                                  Distance from the Design Comfort Zone
          DESIGN                                                                    WAY
        COMFORT                                                                     OUTSIDE
           ZONE                                                                     THE ZONE



 10/19/2010                  Julian Keith Loren, Innovation Management Institute.     20
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES



                                      CHALLENGES
                                    Here you should reserve no
                                    judgment + pilot wisely +
    HUGE
    “IDEA                           prototype strategically.
MOLECULE”    Here you should
             reserve judgment +
             prototype quickly.

      Number of
       Required
          Ideas




        SINGLE
         “IDEA
        ATOM”

                                  Distance from the Design Comfort Zone
          DESIGN                                                                    WAY
        COMFORT                                                                     OUTSIDE
           ZONE                                                                     THE ZONE



 10/19/2010                  Julian Keith Loren, Innovation Management Institute.     21
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES



                                     CHALLENGES

    HUGE
    “IDEA
MOLECULE”    How can we help
             Social Entrepreneurs
             who only know how
             to innovate here …
      Number of
       Required
          Ideas




        SINGLE
         “IDEA
        ATOM”

                                Distance from the Design Comfort Zone
          DESIGN                                                                     WAY
        COMFORT                                                                      OUTSIDE
           ZONE                                                                      THE ZONE



 10/19/2010                   Julian Keith Loren, Innovation Management Institute.     22
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES



                                     CHALLENGES

    HUGE
    “IDEA
MOLECULE”    How can we help           … take on design
             Social Entrepreneurs      challenges out here?
             who only know how
             to innovate here …
      Number of
       Required
          Ideas




        SINGLE
         “IDEA
        ATOM”

                                Distance from the Design Comfort Zone
          DESIGN                                                                     WAY
        COMFORT                                                                      OUTSIDE
           ZONE                                                                      THE ZONE



 10/19/2010                   Julian Keith Loren, Innovation Management Institute.     23
SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES



                                  PLEASE HELP!
                      We’re working to tailor Design Strategy + Innovation
    HUGE
                   Management curriculum to the needs of Social Entrepreneurs.
    “IDEA
MOLECULE”
                     Please see where we are and let us know your ideas at
                                    http://bit.ly/SocEntCur


      Number of
       Required
          Ideas




        SINGLE
         “IDEA
        ATOM”

                               Distance from the Design Comfort Zone
          DESIGN                                                                   WAY
        COMFORT                                                                    OUTSIDE
           ZONE                                                                    THE ZONE



 10/19/2010                 Julian Keith Loren, Innovation Management Institute.     24

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Design + Innovation Management Challenges for Social Entrepreneurs + Innovators

  • 1. INNOVATION MANAGEMENT + DESIGN PRACTICE CHALLENGES FOR SOCIAL ENTREPRENEURS Originally presented to I2C Team, New York, 4 October 2010 Julian Keith Loren
  • 2. SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES INTRODUCTION Social Entrepreneurs and Social Innovators are dedicated to finding innovative solutions to perplexing global problems 10/19/2010 Julian Keith Loren, Innovation Management Institute. 2
  • 3. SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES INTRODUCTION Social Entrepreneurs and Social Innovators are dedicated to finding innovative solutions to perplexing global problems ILLITERACY HUNGER DISEASE POLLUTION HOMELESSNESS 10/19/2010 Julian Keith Loren, Innovation Management Institute. 3
  • 4. SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES ISSUE But Social Entrepreneurs and Social Innovators often find that their education and experience has not adequately prepared them for the challenges that they face. 10/19/2010 Julian Keith Loren, Innovation Management Institute. 4
  • 5. SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES EXAMPLE A Social Venture has a big goal … … a business parter … … and a design partner 10/19/2010 Julian Keith Loren, Innovation Management Institute. 5
  • 6. SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES BUSINESS PARTNER I have lots of experience + an MBA from a great school. 10/19/2010 Julian Keith Loren, Innovation Management Institute. 6
  • 7. SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES BUSINESS PARTNER HAVE I’m good at managing: • Reasonably well-defined • Relatively well-understood • Incremental improvements to operations 10/19/2010 Julian Keith Loren, Innovation Management Institute. 7
  • 8. SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES BUSINESS PARTNER HAVE NEED I’m good at managing: But I’m trying to manage: • Reasonably well-defined • The unpredictable • Relatively well-understood • The “never been done before” • Incremental improvements • Delivering disruptive to operations innovation that has huge positive impact 10/19/2010 Julian Keith Loren, Innovation Management Institute. 8
  • 9. SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES DESIGN PARTNER I have the best design education available + a great portfolio. 10/19/2010 Julian Keith Loren, Innovation Management Institute. 9
  • 10. SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES DESIGN PARTNER HAVE I can radically reimagine products + services when all externalities exist. 10/19/2010 Julian Keith Loren, Innovation Management Institute. 10
  • 11. SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES DESIGN PARTNER HAVE I can radically reimagine products + services when all externalities exist. DESIGN DESIGN COMFORT CHALLENGE ZONE All Externalities Exist 10/19/2010 Julian Keith Loren, Innovation Management Institute. 11
  • 12. SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES DESIGN PARTNER HAVE NEED I can radically reimagine But I’m trying to design: products + services when all externalities exist. • Wa-a-a-a-ay outside of the DESIGN COMFORT ZONE • Design entire systems or DESIGN industry models DESIGN COMFORT CHALLENGE ZONE • Design within constraints All Externalities Exist that I’ve never imagined! 10/19/2010 Julian Keith Loren, Innovation Management Institute. 12
  • 13. SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES CHALLENGES There is a relationship between … Distance from the DESIGN COMFORT ZONE DESIGN WAY COMFORT OUTSIDE ZONE THE ZONE 10/19/2010 Julian Keith Loren, Innovation Management Institute. 13
  • 14. SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES CHALLENGES There is a relationship between HUGE “IDEA distance from the DESIGN COMFORT ZONE MOLECULE” and … Number of Required Ideas SINGLE “IDEA ATOM” Distance from the Design Comfort Zone DESIGN WAY COMFORT OUTSIDE ZONE THE ZONE 10/19/2010 Julian Keith Loren, Innovation Management Institute. 14
  • 15. SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES CHALLENGES Typically, HUGE the FURTHER from the DESIGN COMFORT ZONE, “IDEA MOLECULE” Number of Required Ideas SINGLE “IDEA ATOM” Distance from the Design Comfort Zone DESIGN WAY COMFORT OUTSIDE ZONE THE ZONE 10/19/2010 Julian Keith Loren, Innovation Management Institute. 15
  • 16. SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES CHALLENGES Typically, HUGE the FURTHER from the DESIGN COMFORT ZONE, “IDEA MOLECULE” the LARGER the necessary team of mutually-reinforcing ideas Number of Required Ideas SINGLE “IDEA ATOM” Distance from the Design Comfort Zone DESIGN WAY COMFORT OUTSIDE ZONE THE ZONE 10/19/2010 Julian Keith Loren, Innovation Management Institute. 16
  • 17. SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES CHALLENGES The vast majority of solutions lie within the region shown below HUGE “IDEA MOLECULE” Number of Required Ideas Most Solutions SINGLE “IDEA ATOM” Distance from the Design Comfort Zone DESIGN WAY COMFORT OUTSIDE ZONE THE ZONE 10/19/2010 Julian Keith Loren, Innovation Management Institute. 17
  • 18. SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES CHALLENGES HUGE “IDEA Problems here can’t MOLECULE” be addressed by small teams of ideas. Number of Required Ideas SINGLE “IDEA ATOM” Distance from the Design Comfort Zone DESIGN WAY COMFORT OUTSIDE ZONE THE ZONE 10/19/2010 Julian Keith Loren, Innovation Management Institute. 18
  • 19. SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES CHALLENGES Social venture EXAMPLES developing innovative products HUGE Minimally- or services for rural “IDEA Innovation MOLECULE” disruptive sub-saharan Africa supporting White Award- new Space / Blue Ocean winning business Strategy® goals product model design Number of Required Ideas Product or service requiring new customer SINGLE “IDEA behaviors ATOM” Incremental Distance from the Design Comfort Zone product or service DESIGN WAY COMFORT innovation OUTSIDE ZONE THE ZONE 10/19/2010 Julian Keith Loren, Innovation Management Institute. 19
  • 20. SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES CHALLENGES HUGE “IDEA MOLECULE” Here you should reserve judgment + prototype quickly. Number of Required Ideas SINGLE “IDEA ATOM” Distance from the Design Comfort Zone DESIGN WAY COMFORT OUTSIDE ZONE THE ZONE 10/19/2010 Julian Keith Loren, Innovation Management Institute. 20
  • 21. SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES CHALLENGES Here you should reserve no judgment + pilot wisely + HUGE “IDEA prototype strategically. MOLECULE” Here you should reserve judgment + prototype quickly. Number of Required Ideas SINGLE “IDEA ATOM” Distance from the Design Comfort Zone DESIGN WAY COMFORT OUTSIDE ZONE THE ZONE 10/19/2010 Julian Keith Loren, Innovation Management Institute. 21
  • 22. SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES CHALLENGES HUGE “IDEA MOLECULE” How can we help Social Entrepreneurs who only know how to innovate here … Number of Required Ideas SINGLE “IDEA ATOM” Distance from the Design Comfort Zone DESIGN WAY COMFORT OUTSIDE ZONE THE ZONE 10/19/2010 Julian Keith Loren, Innovation Management Institute. 22
  • 23. SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES CHALLENGES HUGE “IDEA MOLECULE” How can we help … take on design Social Entrepreneurs challenges out here? who only know how to innovate here … Number of Required Ideas SINGLE “IDEA ATOM” Distance from the Design Comfort Zone DESIGN WAY COMFORT OUTSIDE ZONE THE ZONE 10/19/2010 Julian Keith Loren, Innovation Management Institute. 23
  • 24. SOCIAL VENTURE - DESIGN + INNO MGMT CHALLENGES PLEASE HELP! We’re working to tailor Design Strategy + Innovation HUGE Management curriculum to the needs of Social Entrepreneurs. “IDEA MOLECULE” Please see where we are and let us know your ideas at http://bit.ly/SocEntCur Number of Required Ideas SINGLE “IDEA ATOM” Distance from the Design Comfort Zone DESIGN WAY COMFORT OUTSIDE ZONE THE ZONE 10/19/2010 Julian Keith Loren, Innovation Management Institute. 24