InnoFuture Presentation 2008

Design Thinking: A Better Path to Innovation

InnoFuture, Melbourne, Australia2008

nathan.com/thoughts/InnoFuture.pdf

Why innovate?

Why innovate?

Why innovate?Paths to Growth:• Increase operational efficiencies• Sell-off assets• Mergers and acquisitions• Initial Public Offerings•“Rebranding”• Innovation

Why innovate?Paths to Organic, Lasting Growth:• Increase operational efficiencies• Sell-off assets• Mergers and acquisitions• Initial Public Offerings•“Rebranding”• Innovation

What is innovation?

What is innovation?Forms of innovation:• Better offerings and experiences• Better processes• Better organizations

What is innovation?Forms of innovation:• Better offerings and experiences• Better processes• Better organizations

What is innovation?Forms of innovation:• Better offerings and experiences• Better processes• Better organizations• A better world

Why can’t most organizations innovated effectively?

What’s the right context for innovation?

What’s the right context for innovation?

Marketing = inhaleSales, PR, Advertising, etc. = exhale

What’s the right context for innovation?

Qualitative + Quantitative

What’s the right culture for innovation?

What’s the right culture for innovation?

Structured Innovators (18%):• Formal process• Led from the middle • Low collaboration• Analytic evaluations• Iterative• Risks minimized

Creative Innovators (26%):• “Big Ideas” inspire• Led from the top • Often haphazard process • Focus on creativity• Risk-taking is accepted

Dynamic Innovators (39%):• Strategy guides process • Led from top• Cross functional teams • Collaborative • Creative environment• Rational inspiration• Risk-taking is accepted

Ad Hoc Innovators (10%):• Accidental innovation• Innovation not valued• Creativity not valued• Haphazard process

Innovation Outsourcers (8%):• Relies on consultants• Acquires innovation• Focus on marketing/PRCheskin, 2005

Why aren’t organizations creative enough?

Why aren’t organizations courageous enough?

Why should innovation be sustainable?

Why should innovation be sustainable?

Why should innovation be meaningful?

Function (Performance):Does this do what I need?

Price (Value):Does this do what I need at a

price that’s worth it?

Emotions (Lifestyle):Does this make me

feel good?

Status/Identity (Values):Is this me?

Meaning (Reality):Does this fit into my reality?

AccomplishmentBeauty

CreationCommunity

DutyEnlightenment

Freedom

HarmonyJustice

OnenessRedemption

SecurityTruth

ValidationWonder

Core Meanings:

Meaning:

Experiences:

BreadthProductService

BrandName(s)

Channel/Environment (Space)

PromotionPrice

IntensityReflexHabitEngagement

DurationInitiation

ImmersionConclusion

ContinuationTriggersSenses:SightSoundSmellTasteTouchCognitive:ConceptsSymbols

InteractionPassiveActiveInteractive

SignificanceMeaningStatus/IdentityEmotion/LifestylePriceFunction

What’s the “right” processfor innovation?

What’s the “right” processfor innovation?

design-led innovation:user-centered research, prototyping,

critique, iteration, embracing constraints

What’s the “right” processfor innovation?

What’s the “right” processfor innovation?

What’s the “right” processfor innovation?

What’s the “right” processfor innovation?

Competitors’ Meaning Priorities

Corporate Meaning Priorities

Team Meaning Priorities

Customer Meaning Priorities

What’s meaningful innovation?

The Focus!