Business Leadership, User Engagement and a Culture that believes Risk & Failure point in the same direction as Success are all crucial for Innovation to flourish in any Business or Personal venture. Learn about the barriers, the case, the stories and the next steps to move your business, partners, suppliers, etc. to a Culture of Challenged Open Driven Innovation.
2. Technology is being used to disrupt and reinvent
entire Markets, Products and Services in ways never
thought of years prior.
• Social-ability of Technology (ie; Tribes)
• Access-ability of Technology (ie; Mobile)
• Use-ability of Technology (ie; Persona)
• Extend-ability of Technology (ie; Cloud)
• Connect-ability of Technology (ie; Internet of Things)
10. Collaboration & Innovation 11
Satya Nadella
CEO Microsoft
Source: DigitalTrends
“Our industry does
not respect tradition
…
it only respects
innovation.”
15. Innovation Myths
• It’s A Management Thing
• It Requires A Special Degree (ie; MBA)
• It’s Someone Else’s Job Role & Responsibility
• It Takes Too Much Time
• It Consumes Too Much $$$
16
28. Why Innovate
Source: HBR.org (Sept 2014)
Competitive Forces
U.S. Patent
Applications
(over last 50 yrs.)
Global Startups
(over last 50 yrs.)
Global Economic
Competition
Increased
From
100k to 600k
Per
Year
Increased
From
10M to 100M
Per
Year
Alibaba (China)
vs.
Amazon (U.S)
Success: Ability to manage uncertainties in new ways
30
33. Michelin PAX Tire System
The Next Brilliant Idea
• Early 1990’s
• Run-Flat Tire
• Invented TPMS
• 125 Miles @ 55 MPH
• Researchers, Designers, Engineers
Partners, Competitors, Dealers
Benefits
• Safety
• Affordable
• Efficient & Convenient 37
34. Michelin PAX Tire System
Blind Spots
• Service Stations
• Customer Experiences
Source: TheWideLens
Great
Ideas
Great
Execution
Great
Distribution
Network
Service Stations
Special Equipment
Customers
$$$ Replacement Tires
Discontinued Tires In 2008
38
37. Using Big Data To Engage Customers
Moving Beyond Movie Rentals
41
38. Keep Moving … Keep Swimming
Innovation Is Ongoing
“My dear, here we must run as fast as we can just to stay in one place.
And if you wish to go anywhere, you must run twice as fast as that.”
Lewis Carroll, Alice in Wonderland
42
42. “Find Your Blind Spots”
Perceptions
• Bugs in lights are not
recommended
Implications
• May imply to clients that
other areas of the operations
are messy as well
46
Culture of Innovation
57. More Power Than a 50 Watt Bulb“Change One Life … Then The World”
Alfredo Moser's invention is lighting up the world. In 2002, the Brazilian
mechanic found a way to light his house during the day without electricity
Source: BBC
63
Build A Better Light Bulb Challenge
58. Voice Of The Customer (VOC)
64
In 1994, the director of Corporate New
Ventures at Procter & Gamble asked the right
question …
“There has got to be a better way to clean a
floor. Current mops are the cleaning
equivalent of the horse drawn carriage –
where’s the car?”
59. 65
A team of ethnographic researchers set out to watch how
people cleaned their kitchen floors, and they discovered …
• Most people swept their floors before they mopped
• People assemble a system of largely unbranded products to
get the job done
• Mops worked mostly by the adhesion of dirt to the mop and
people seemed to spend almost as much time rinsing their mop
as they did cleaning the floor
• People wore old clothes when they were cleaning because it
was a dirty job
Voice Of The Customer (VOC)
60. Source: Webrtcworld
66
They reviewed the videos back at the office and
arrived at their epiphany moment …
• Half of the steps related to cleaning the floor
• Half of the steps related to cleaning the mop
Voice Of The Customer (VOC)
62. 68
Infrastructure Innovation
Infrastructure leaders believe that constant innovation represents their only chance of
meeting user expectations and business demands within budgetary constraints.
• Deploy a consistent technology platform, rather than stitching together a jumble of
legacy systems
• Cloud Computing – private, public, virtual, platform services
• Data Access & Analytics – low cost storage, platform services for crunching massive
structured and unstructured data
• Unified Communications – voice, video, email, chat
• Mobility – provide ease of use for BYOD (phone, tablets, laptops, etc.)
65. Problem: Declining Customer Satisfaction
Symptoms: Delays in Prescription Fulfillment Process
Key Common Questions Not Answered Up Front
- Have You Changed Jobs
Root Cause: The Insurance Check was happening after the
customers left the pharmacy
Impact: 4,000 CVS Pharmacies in U.S.
Process Innovation
76. Resources
85
• The Wide Lens: Book
• Innovators DNA: Book & Web Site
• Innovators Dilemma: Book & Web Site
• Innovators Method: Book & Web Site
• Innovators Solution: Book & Web Site
• Innovators Prescription: Book & Web Site
• A Liter of Light
• Grace Choi – 3D Printed Makeup
• Effectuation
• The Future of Innovation
• Pera Training Case Studies
• McKinsey Insights & Publications
• Innovation-Framework
• People & Innovation
• CVS Innovation
• Crowdsourcing Open Innovation
Kerry Dirks
Twitter …… @kerdirks
LinkedIn …. kerdirks
Blog ……….. kerdirks.wordpress.com
Email ……… kerdirks@yahoo.com
Thank You
Notes de l'éditeur
Thanks for attending the conference today.
Sponsors
Speakers
And thanks for attending this session …
Some of us hear the terms collaboration and innovation and immediately think of technology.
We need some type of technology get from where we are to innovation
Many times, technology is the last thing you need NOT the first
Some of us hear the terms collaboration and innovation and immediately think of a framework.
We need to get organized
We need structure
If you get nothing else out of this presentation, know this …
COLLABORATION & INNOVATION is a very PERSONAL topic
* egos, personalities, emotions, baggage from past experiences …
Focus: Personal & Business
I think we can all agree; today’s business environment is challenging.
This is one of the most popular images that depicts not only our personal connections; but also those of our businesses.
The rotary or push button phone has been replaced
Email has been supplanted with FB, LinkedIn, Twitter, etc.
IM and Texting is common place
The water cooler has been supplanted by Video Conferencing (Skype, Lync, FaceTime)
Document Sharing now takes place via the Cloud (OneDrive, Google Drive, Apple Drive)
How we manage our personal lives and the tools we use for our businesses are blending together.
We use our phone for personal and business
We use our laptops for personal and business
We use our cloud storage for personal and business
The way we work and play is changing; this change means that our businesses also need to change.
Our expectations are changing
Our tools are changing
Our experiences are changing
There’s two sides to every coin; you either WAIT for things to happen and pass you buy or you engage and MAKE things happen!
Technology can be used to open new doors to opportunities
Does your business need the ability to
integrate with our technologies
access key information via mobile devices
personalize experiences, content, etc for each employee or client
extend your business on a seasonal or demand basis
connect with your clients, partners, customers, etc.
The challenge then is to
build your apps to work on mobile devices to reach the broader audiences
move your key customer facing services to the cloud to connect across geographic boundaries
install those sensors in your stores, appliances, vehicles, etc so you can track and then notify key players in the supply chain as events occur
On a local and global scale, the consensus is that Innovation is a focus of both CEO’s and CIO’s.
90% of top executive in 2013 – top strategic priority
72% of CEOs in 2010 – 1 of the top 3 strategic priorities
It’s a priority.
So, why aren’t more businesses considered innovative ?
Innovation is a focus of both CEO’s and CIO’s.
It’s a priority.
SHOW OF HANDS
- HOW MANY OF YOU CONSIDER YOUR BUSINESS AS BEING INNOVATIVE ?
So, the burning question after reviewing this slide … what makes up the other 34% ?
And, why aren’t more businesses considered innovative ?
IF YOU HAVE A BEATING HEART AND HAVE A VESTED INTEREST IN THE SUCCESS OF YOUR BUSINESS,
YOU NEED TO BE ENGAGED IN THE INNOVATION PROCESS AT THAT BUSINESS
There are many barriers or struggles within businesses that prevent them from truly becoming an organization of innovation.
2012 Survey
With your attendance today, you are sending a message to all of us
That you are part of the solution NOT the problem
That you think in terms of ½ FULL NOT ½ empty
Change … “the one certainty in this life”
The industry is ruthless
We continue to define and refine the “normal”
In other words, standing still is not an option
History
In my 30 years in IT, I have witnessed this time and time again.
Traditional systems, processes, technologies, devices, etc. become outdated and replaced with new, better, faster and cheaper options.
The main difference between then and now is that the speed of change is accelerating.
If your business is to be competitive in the world economy, it must exude a culture of “OPEN INNOVATION”
For the bulk of this presentation, we will examine the …
The Basics of Innovation
…
Tony Robbins, is well known in the business world for his motivational series on the 7 Forces of Business Mastery.
I like his definition of innovation; it actually sums up the challenge of innovation very well.
Let’s unpack it
new and better, similar to New and Improved, is subjective
meet may mean to EXCEED depending on your market segment, target audience, or the gap from here to “1st place”
you need to know your client or clients
At it’s core, innovation is problem solving
We have seen this cycle many times.
Identify the Problem
Do the analysis
Develop
Implement
Evaluate
And continue the cycle
Have you ever solved a problem? Then you are an innovator.
So, Innovation involves Problem Solving AND so much more
Misconceptions …
We could also expand on this list by taking any of those 16 Barriers to Innovation a few slides back and refute each of them
Innovation is at the center of 3 other great facets
Invention
Creating some new or different
Entrepreneurship
Passion with a purpose
Collaboration
Influencing and being Influenced
The larger the intersection, the larger the potential impact of innovation
More people creating new or different ideas
More people passionate about their purpose
More people influencing and being influenced
But don’t hear me wrong … more of everything here does not guarantee success.
Who knew they needed an iPhone 10 years ago
Who knew you needed those pair of shoes or the shirt on your back 5 years ago
Who knew I was going to switch from an iPhone to Samsung
Who knew that I had too many remotes for my TV and needed an app for my phone to control my TV & DVR
Who knew …
Innovation requires Collaboration from a variety of sources
Management
Provides the oversight, funding and the vision
Employees
Those that know the topic (whatever it is) best, can provide the best insight
Partners
Those businesses that share the same need for improvement that you do
Experts
Those that provide another perspective outside the normal flow of your business
Innovation is about working better together … AND so much more.
I have a few questions for you to think about
How does your business communicate it’s mission & vision
Thru Words, Actions or Both
Do you understand WHY your business is a business
What problems is your business trying to solve
Is this common knowledge at your business
Does the culture of your business support innovation
Is failure OK at your business OR is failure encouraged and expected
Do you celebrate innovation OR How do you celebrate innovation
Does your business allow, encourage or expect you to attend webinars, conferences and user groups
Does management see these opportunities as an Expense or something that can provide Value
Innovation is about effectively communicating your mission & vision … AND so much more.
So, your CEO & CIO came to you and said we need to innovate.
I need you to build a better light bulb.
With the information, I just provided to you … write down your ideas on how you would build a better bulb.
I have found that the best presentations are those with active participants
So …
Your challenge during the rest of this hour is … to build a better light bulb
Write down your ideas on how you would build a better light bulb
We will come back to this challenge throughout the presentation
Innovation is about relevancy
a camera zoom lens that really is a coffee cup
this describes something about the person
this would also spur conversations with others with similar interests
a product or service sells because the client/customer identifies with it’s (views, beliefs, interests, etc.)
Innovation is messy
you have to be willing to struggle with failure, ideas, our perceptions and ideals and so much more from our history
along with the confusion, there is often a variety of pains; don‘t lose heart, embrace the pain and learn to redirect the energy to produce results
Innovation is customer focused
identify your target audience persona
what are their demographics, etc
Innovation is being creative
this is the toughest area of the innovation process
this is one of the most misunderstood areas of the process
Innovation is being a rebel
rebel does not mean destructive
rather, rebel means that we have to cross over the line of comfort to the wild side
The truth about Disruptive Innovation is that it may cannibalize existing products or services.
EXAMPLE…
Kodak invented the digital camera. It didn’t commercialize this invention because it wanted to protect its film business. The Company had what I call the “FDH” syndrome. It was Fat, Dumb, and Happy with its success in film. It looked backward instead of forward. As Bill Gates is fond of saying, “Success is a lousy teacher. It seduces smart people into thinking they can't lose.” To be innovative, you cannot be afraid to obsolete your own products. If you are, others will obsolete them for you. That is what happened to Kodak and many others.
Grace, a Harvard student, has a mission to disrupt the cosmetic industry.
To provide the ability for every girl and women to select any color and easily print that makeup on an affordable printer.
Incremental is about improving a product, service or process in increments based on long hanging fruit or ROI.
ie; Product Adoption Life Cycle
providing the features and functionality over a series of phases
moving clients/customers from awareness, understanding, usage, value and finally to evangelist
The iPhone and vehicle models are great examples
There are 2 certainties in business …
Change is difficult
Not changing is fatal
‘Business as usual is no longer usual’
It’s like a business being trapped between a rock and a hard place.
NOT a good picture of a business though may be all too familiar
For too many businesses, this picture is all too familiar.
Business as usual should not be the norm.
Business Symptoms of “Business as Usual”
Employees who are simply putting in their time for a pay check
9-5 and then home
Disengaged Employees
Waiting for the next great idea to run over your business should not be acceptable.
Rather, I would argue that this is a BETTER picture of the future of business.
Understanding where you have been
Understanding where you area
And, keeping your senses open and aware will keep your Business as Unusual
BUT THE CULTURE NEEDS TO BE RECEPTIVE TO THIS
- WHO IS WILLING TO STICK OUT THEIR NECK AND RISK IT
5 A’s
- Alert
- Aware
- Anticipating
- Aggressive
- Agile
We need to innovate because …
… our competition keeps evolving and changing
Clients/Customers have new demands of products, services, experiences, etc.
The world is changing
The scope of your competition is changing
Summary: New technologies and competitors are hitting the market place faster than ever.
Your success requires an understanding of how much uncertainty you face and the ability to manage those uncertainties in new ways.
We need to innovate because …
… technology keeps improving and changing
We need to innovate because …
… how we connect is changing
We need to innovate because …
… how we share information and form relationships is changing
In the early 1990’s, Michelin was ready to make it’s mark in the tire industry
it had collaborated with experts to verify it’s product quality
it had built relationships with other key stakeholders in the industry
it would provide customers with more safety on the road
Great
Idea
Execution
Distribution
No So Great
Service
Value (as perceived by Service Stations and Customers)
What’s interesting to note about this tale of two businesses is …
- That in 2000, Reed Hastings, the founder of a fledgling company called Netflix, flew to Dallas to propose a partnership to Blockbuster CEO John Antioco and his team. The idea was that Netflix would run Blockbuster’s brand online and Antioco’s firm would promote Netflix in its stores. Hastings got laughed out of the room.
We all know what happened next. Blockbuster went bankrupt in 2010 and Netflix is now a $28 billion dollar company, about ten times what Blockbuster was worth.
- A 2nd point here is that Oil and Water do not mix; the innovative energy that created BlockBuster is diametrically opposed to that of Netflix … and I am sure ego is mixed in there somewhere.
Netflix is moving beyond movie rentals to movie originals like the likes of
House of Cards
Orange is the new Black
NETFLIX signed a 4 year agreement with Adam Sandler to produce 4 movies.
NETFLIX mined it’s customers movie usage and found an interesting statistic
- Adam Sandler movies are watched over and over again
Will it be a success ? … time will tell.
One thing we know for sure …
Innovation is here to stay
The Business as Usual rules of the game have changed
The new economy is all about relationships ...
When you look at your business
Who are the producers
Who are the consumers
Who is influencing
Who is being influenced
Who are your peers
Who are the experts
A blind spot is anything we don’t see that may be life threatening to your business.
Common Blind Spots
We are working on a project but we just can’t see the options
We fail to consider or see the obvious
We miss a key requirement, financial fact or audience factors
We need more leadership or technical training
We need to understand a process better as it’s just a black hole right now
There are numerous examples …
What blind spots does your business have ?
PERCEPTION really IS everything …
At first glance, how are you presenting your business or yourself to your clients
Story
I was at a popular coffee shop recently, ordered my drink and sat down to listen to music, etc.
I looked up and saw bugs in the light fixture
Lessons Learned
customer service and experience does not stop at the order counter
if the light fixtures aren’t clean, what else isn’t clean ??
PERCEPTION really IS everything …
And the same holds true for software …
Technology
Implications
Those
who are passionate like you
who are from other areas of the business
who are from other countries, geographies, etc.
who have varying opinions, interests, backgrounds, etc.
who are NOT like you
those familiar with the topic from the inside as well as those from the outside
(other teams, groups, consultants, etc.)
Surround yourself with good people
Never accept NO from someone who can never say YES
The lesson learned …
In addition, 25% of innovation requires assistance from outside your business.
Why?
You need someone …
to question the conventional bureaucracy, policies and procedures
to have a fresh perspective, fresh ideas, fresh skills to the table
Sometimes you have to make a leap … you have to go for it.
No matter how much collaboration is involved … you may be the one to step out and take the plunge.
There’s a cost to staying … Just like there may be a cost of leaping
But, there’s also a benefit to staying … Just like there may be a benefit of leaping
Are we jumping just to get the next new shiny object in our hands (ie; iPhone 6 Plus to the 3rd Power ! )
Innovation is about doing things differently … AND so much more.
You may be losing focus IF
- There’s too much stuff on your plate
Your attention is elsewhere
Wrong priorities
Focus is having the confidence and insight to know
when to say Yes; and,
when to say NO
DON’T focus on $$$
DON’T focus on the competition
FOCUS on what MATTERS and what is NEXT
The best way to experience the pain, the beauty, the opportunity and the challenges is to STEP INTO SOMEONE ELSE’S SHOES
USAA EXAMPLE
Heard a recent story about the insurance company USAA whose clients are mainly military personnel.
On a regular basis, all the employees take part in military type drills
Lunch or MREs
60 lb back packs
Day 0 basic training drills
Read letters from families to understand their struggles, their needs
How could you immerse yourself better into your client's world ?
We are not ready to innovate, until we are ready to be free.
- free to express our interests, our passions, our dreams.
Our biggest challenge with innovation is the fight we have with ourselves.
We struggle with failure.
We struggle with performance.
We are not ready to innovate, until we are ready to be vulnerable with others.
When we share our creative ideas with others, we then provide them license to share their ideas.
Be truthful about where you are right now.
S.W.O.T
Your business is not an island.
It may be a zoo as this image shows; BUT, it is NOT an island.
As Innovation is at the core of Problem Solving, it is crucial to understanding the ROOT or ROOTS of the problem.
Get to the truth before moving on.
Get agreement from others on the truth before moving on.
Boundaries are crucial for projects and their crucial for innovation.
Let’s look at the many areas that resemble the boundaries for your Innovation process.
Boundaries are crucial for projects and their crucial for innovation.
Let’s look at the many areas that resemble the boundaries for your Innovation process.
Each Failure means you are one (1) step closer to Success
EXAMPLE…
Innovative companies recognize that failure is an important step in the process of success. They understand that with each failure, the company moves one step closer to success. In this way, failure is given a positive value. For example, if a successful product brings in $1 billion in sales, and it takes 9 failures to achieve each success, each step in the process (including the 9 failures) can be viewed as bringing the company $100 million in additional business – a positive way to look at failure.
Each Failure means you are one (1) step closer to Success
EXAMPLE…
Innovative companies recognize that failure is an important step in the process of success. They understand that with each failure, the company moves one step closer to success. In this way, failure is given a positive value. For example, if a successful product brings in $1 billion in sales, and it takes 9 failures to achieve each success, each step in the process (including the 9 failures) can be viewed as bringing the company $100 million in additional business – a positive way to look at failure.
Each Failure means you are one (1) step closer to Success
EXAMPLE…
Innovative companies recognize that failure is an important step in the process of success. They understand that with each failure, the company moves one step closer to success. In this way, failure is given a positive value. For example, if a successful product brings in $1 billion in sales, and it takes 9 failures to achieve each success, each step in the process (including the 9 failures) can be viewed as bringing the company $100 million in additional business – a positive way to look at failure.
Alfredo, a Brazilian mechanic, needed a way to light up his house with a more consistent source … the sun.
Though a series of experiments, he was able to identify that light refracting through a clear bottle of water would produce the equivalent of a 40-60 watt bulb.
Innovation can be
Simple
Sustainable
Cheap
Impactful
Fun
The original idea was very personal.
Now, with the help of the internet; people from all over the world know about this invention and it’s changing their lives and the lives of those in their community.
P & G uses a process similar to the prior screenshot.
They also understand the importance of bringing in experts who specialize in Innovation.
Their big idea/question was … “There has got to be a better way to clean a floor”
It all began with ONE question !
P & G and their expert researchers interviewed 16 home owners to understand how they clean their floors
they documented everything
they videotaped everything
And they discovered … (see bullets)
And they learned two things … (see bullets)
The result … was the Swiffer !
Leverage Surprises
Microwave oven
Potato chips
Staples
WD-40
Post-It Notes
Viagra
Means [Start Small & Scale]
Who I am
Who I know
What I know
Tools available
People
$$$
Technology
Goals [Black & White]
What can I do
Big ideas
Big pains
Big interests
Vision, Purpose, Passion
Interactions [Engage Others]
Partners
Clients
Vendors
Suppliers
Team/Dept/Group
Commitments [Funding]
$$$
People
Time
Resources
Means [Start Small & Scale]
Who I am
Who I know
What I know
Tools available
People
$$$
Technology
Goals [Black & White]
What can I do
Big ideas
Big pains
Big interests
Vision, Purpose, Passion
Interactions [Engage Others]
Partners
Clients
Vendors
Suppliers
Team/Dept/Group
Commitments [Funding]
$$$
People
Time
Resources
If you search Bing or Google related to Innovation Management, you will find many screenshots resembling something like this process.
You start with a
Market Need
Identify a Topic
Generate Ideas
…
P&G
“There has got to be a better way to clean a floor.”
Tesla
“There has got to be a better way to build a car.”
CVS
“There has got to be a better way to process prescriptions.”
FarmLogs
“There has got to be a better way to manage a farm.”
Alfredo Moser
“There has got to be a better way to build a light bulb.”