Innovation by 10 Re:Publica 2010
Innovation By 10
Aug 11, 2014
Ten observations, provocations, and questions on design and innovation - presentation by Tim Leberecht, frog design, at Re:Publica, Berlin, April 15, 2010
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Innovation by 10Re:Publica 2010
2
The origins of frog
3
(map of Silicon Valley)
© 2007 frog design. Confidential & Proprietary. 5
We are a global innovation firm.
We help the world’s leading companies create and bring to market meaningful products, services,
and experiences. Our cross-disciplinary process reveals valuable consumer and market insights
and delivers lasting, humanizing solutions across multiple technologies, platforms, and media.
- 40 years’ experience in developing breakthrough products and services
- More than 3,000 products and services for more than 300 of the Fortune 500 companies
- Won more than 100 industry awards (CES Innovation, IDEA, and others)
- Our software is in more than 500,000,000 devices
- Our clients (in 2009) were:
7 of the top 10 mobile operators and 9 of the top 10 OEMs; 50 of
Millward Brown World’s Top 100 Brands; 24 of BusinessWeek’s Top 50 Innovative Companies;
16 of Fast Company’s Top 50 Innovative Companies
1
Innovation, really?
Innovation back then….
Innovation today
Innovation back then….
Innovation today
© 2007 frog design. Confidential & Proprietary. 11 1
Innovation back then….
Innovation today
14
Innovation back then….
© 2009 frog design. confidential & proprietary. March 2009 42
THE BIG SPACE / JC PENNEY RFID-based digital retail concept
Innovation today
16
Innovation back then….
17
Innovation today
18
Innovation back then….
Innovation today
Is he an innovator?
Or he?
Or he?
Or they?
Or he?
2
Innovation…why?
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Internal Churn “Our new ideas are stuck in the mud of internal planning and review
cycles.”
Competition “New competitors are moving into our space and we need to do
something to defend our market position.”
Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,
etc.) but we don’t know where and how to start.”
Mining IP “We have so much IP but we cannot convert it into products that resonate
with consumers.”
Time-to-Market “Our linear product development process doesn’t allow for nimbleness and
trial and error.”
Customer Insight “Our product ideas are driven by science and engineering but fail to
recognize latent or unarticulated customer needs.”
Sustainability “We got lucky once or twice. How do we repeat our market success year
after year?”
INNOVATION TRIGGERS
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
INNOVATION TRIGGERS
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”Internal Churn “Our new ideas are stuck in the mud of internal planning and review
cycles.”
INNOVATION TRIGGERS
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Internal Churn “Our new ideas are stuck in the mud of internal planning and review
cycles.”
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”Internal Churn “Our new ideas are stuck in the mud of internal planning and review
cycles.”
Competition “New competitors are moving into our space and we need to do
something to defend our market position.”
Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,
etc.) but we don’t know where and how to start.”
INNOVATION TRIGGERS
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Internal Churn “Our new ideas are stuck in the mud of internal planning and review
cycles.”
Competition “New competitors are moving into our space and we need to do
something to defend our market position.”
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”Internal Churn “Our new ideas are stuck in the mud of internal planning and review
cycles.”
Competition “New competitors are moving into our space and we need to do
something to defend our market position.”
Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,
etc.) but we don’t know where and how to start.”
INNOVATION TRIGGERS
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Internal Churn “Our new ideas are stuck in the mud of internal planning and review
cycles.”
Competition “New competitors are moving into our space and we need to do
something to defend our market position.”
Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,
etc.) but we don’t know where and how to start.”
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”Internal Churn “Our new ideas are stuck in the mud of internal planning and review
cycles.”
Competition “New competitors are moving into our space and we need to do
something to defend our market position.”
Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,
etc.) but we don’t know where and how to start.”
Mining IP “We have so much IP but we cannot convert it into products that resonate
with consumers.”
INNOVATION TRIGGERS
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Internal Churn “Our new ideas are stuck in the mud of internal planning and review
cycles.”
Competition “New competitors are moving into our space and we need to do
something to defend our market position.”
Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,
etc.) but we don’t know where and how to start.”
Mining IP “We have so much IP but we cannot convert it into products that resonate
with consumers.”
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”Internal Churn “Our new ideas are stuck in the mud of internal planning and review
cycles.”
Competition “New competitors are moving into our space and we need to do
something to defend our market position.”
Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,
etc.) but we don’t know where and how to start.”
Mining IP “We have so much IP but we cannot convert it into products that resonate
with consumers.”
Time-to-Market “Our linear product development process doesn’t allow for nimbleness and
trial and error.”
INNOVATION TRIGGERS
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Internal Churn “Our new ideas are stuck in the mud of internal planning and review
cycles.”
Competition “New competitors are moving into our space and we need to do
something to defend our market position.”
Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,
etc.) but we don’t know where and how to start.”
Mining IP “We have so much IP but we cannot convert it into products that resonate
with consumers.”
Time-to-Market “Our linear product development process doesn’t allow for nimbleness and
trial and error.”
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”Internal Churn “Our new ideas are stuck in the mud of internal planning and review
cycles.”
Competition “New competitors are moving into our space and we need to do
something to defend our market position.”
Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,
etc.) but we don’t know where and how to start.”
Mining IP “We have so much IP but we cannot convert it into products that resonate
with consumers.”
Time-to-Market “Our linear product development process doesn’t allow for nimbleness and
trial and error.”
Customer Insight “Our product ideas are driven by science and engineering but fail to
recognize latent or unarticulated customer needs.”
INNOVATION TRIGGERS
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Internal Churn “Our new ideas are stuck in the mud of internal planning and review
cycles.”
Competition “New competitors are moving into our space and we need to do
something to defend our market position.”
Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,
etc.) but we don’t know where and how to start.”
Mining IP “We have so much IP but we cannot convert it into products that resonate
with consumers.”
Time-to-Market “Our linear product development process doesn’t allow for nimbleness and
trial and error.”
Customer Insight “Our product ideas are driven by science and engineering but fail to
recognize latent or unarticulated customer needs.”
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”Internal Churn “Our new ideas are stuck in the mud of internal planning and review
cycles.”
Competition “New competitors are moving into our space and we need to do
something to defend our market position.”
Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,
etc.) but we don’t know where and how to start.”
Mining IP “We have so much IP but we cannot convert it into products that resonate
with consumers.”
Time-to-Market “Our linear product development process doesn’t allow for nimbleness and
trial and error.”
Customer Insight “Our product ideas are driven by science and engineering but fail to
recognize latent or unarticulated customer needs.”
Sustainability “We got lucky once or twice. How do we repeat our market success year
after year?”
INNOVATION TRIGGERS
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Internal Churn “Our new ideas are stuck in the mud of internal planning and review
cycles.”
Competition “New competitors are moving into our space and we need to do
something to defend our market position.”
Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,
etc.) but we don’t know where and how to start.”
Mining IP “We have so much IP but we cannot convert it into products that resonate
with consumers.”
Time-to-Market “Our linear product development process doesn’t allow for nimbleness and
trial and error.”
Customer Insight “Our product ideas are driven by science and engineering but fail to
recognize latent or unarticulated customer needs.”
Sustainability “We got lucky once or twice. How do we repeat our market success year
after year?”
Short -Term AdvantageSustain product life with incremental
enhancements and consumer benefits.
Since product categories exist, sustaining
products are easily accepted by the market.
On the other hand profitability can diminish
quickly due to ease of imitation .
These products are low risk bets with a high
probability of short term returns.
Near-Term AdvantageCreate new products within an existing
product category that leverage high value
benefits for consumers.
The greater benefits of the product and the
fact that it is within a know category drives
rapid short-term growth.
These product are higher risks bets with
higher yet diminishing returns.
Long-Term AdvantageInnovate new to the world products that
lead the creation of new markets or
industries. Market acceptance may be
slower to gain as multiple industry
standards compete for dominance.
These products are a long term investment
with high potential returns over the long
term. Other benefits include market
dominance & strong competitive position.
years
$
0 1 2 3
years
$
years
$
4 5
Industry Level InnovationCompetitive Advantage : 5-7 years
Category Level InnovationsCompetitive Advantage: 3-5 years
Product Level InnovationCompetitive Advantage: 1-3 years
^
Sustaining (Evolve) Breakout (Expand) Disruptive (Envision)
Go/No-Go(Director Level)
Go/No-Go(VP/SVP Level)
Go/No-Go(CEO/Board Level)
6 7 0 1 2 3 4 5 6 7^ ^0 1 2 3 4 5 6 7
INNOVATION CATEGORIES
http://13c4.wordpress.com/2007/02/24/50-reasons-not-to-change/
Credit:
http://13c4.wordpress.com/2007/02/
24/50-reasons-not-to-change/
Innovation means creating change
instead of just reacting to it.
“If you don’t get better, you get worse.”My dad
Most products look alike
Good enough Excellent
Innovation means doing
what no one has done before.
Innovation means doing
what no one has done before.
what no one else would dare doing.
Intuitive bets
“It’s such a fine line between stupid and clever.”David St. Hubbins, lead singer of Spinal Tap
3
Design (Thinking)?
Innovation means behavioral change.
CUSTOMER JOURNEY
Design:
Humanizes technology
Creates simple solutions to complex problems
Changes the meaning of things
Design (Thinking)?
Manager vs. Designer
Strives to keep bad things
from happening
Strives to make good
things happen.
We don't teach executives to think like
designers. We help them bring innovative
products and services to market.
Doing
Thinking
“The head and hand divided” (R. Sennett)
has risks…
“A map is not the territory.”Alfred Korzybski, 1931
Technology
People
Processes
Politics
Money
Actual
materials
Material =
4
Do you fail?
"Ever tried. Ever failed. No matter.
Try again. Fail again. Fail better.“Samuel Beckett
| Project Masiluleke
5
Do you have an
innovation process?
“We don’t have an innovation process.
We hire good people.”Steve Jobs
“Design is too important to
be left to designers.”Raymond Loewy
Cross-over thinking (and doing)
Artists
Architects
Industrial Designer
Software Developer
Digital Media DesignerBusiness Analyst
Strategist
Anthropologist
Ethnographer
Writer
Mechanical Engineer
Role Matrix
ITERATIVE
SYNERGISTIC
6
What about the customer?
…but it is not dead…
Nothing has changed
…but it is not dead…
Everything has changed!
“In the old days, brands
wanted everybody to pay
attention to them.
Now brands need to pay
attention to everybody else.”Umair Haque
All products and services will be SOCIAL
Social publishing
Social impact
Social content
Social networks
Where?
What?
How?
Social gamingWhat for?
Social search
Social shopping
Social currency
76
“Open it up and it will design itself.”Norman Lewis
DATA is the bank…
MEANING is the currency…
“Create more value than you capture.”Tim O’Reilly
Social
InnovationValue
Meaning
DRAMATIC
Making sense
Cohesion
Convergence
Morale
Consistency
Imagination
Entertainment
Cultural relevance
Characters
Suspense
Comedy
Tragedy
Identification
SOCIAL
Connecting
Community
Belonging
Identity
Like-minded
Affinity
New people
Status
Compassion
Fun
Love
Friendship
Hobbies
Fans
CONVERSATIONAL
Listening
Empathy
Adaptive
Changing messages
Two-way
Let go of control
Open
Respect
Flow
Topical
Point-of-view
SMALL
Micro
Customizable
Relevant
Actionable
Eye-to-eye
Direct
Instant
Accessible
Sharable
Atomized
PROVOCATIVE
Making you think
Disruption
Divergence
Deconstruction
Surprise
Shock
Unexpected
Unlikely
Challenging
status quo
Unique
Attention-grabbing
Different
In your face
RESPONSIBLE
Doing good
Political
Socially responsible
Eco-friendly
Ethical
Human rights
Values
Family
Nation
Common Good
Earth
Chief Meaning Officer
checklist
7
Convergence?
CONSUMER
EXPERIENCE
Media
Entertainment
Telco
Retail
eCommerceWellness
Auto
Banking
Energy
BRAND
EXPERIENCE
Mobile
Personal
Instant/
Real-time
AugmentedLocation-
based
Gaming
Social
BRAND
EXPERIENCE
Mobile
Personal
Instant/
Real-time
AugmentedLocation-
based
Gaming
Social
DESIGN
TECHNOLOGY
BUSINESS
DESIGN
TECHNOLOGY
BUSINESS
CONSUMER
EXPERIENCE
Media
Entertainment
Telco
Retail
eCommerceWellness
Auto
Banking
Energy
8
Does it need to be simple?
Yes(it’s that simple)
Complex ecosystems
Feature creep
“Perfection is achieved, not when there is
nothing more to add, but when there is nothing
left to take away.” Antoine de Saint-Exupery
9
The product is the story.
The story is the product.
“Because the purpose of business is to
create a customer, the business enterprise
has two—and only two—basic functions:
marketing and innovation.”Peter Drucker
Disrupt schemata
Blend two concepts
10
You.
“Never doubt that a small group of thoughtful,
committed people can change the world.
In fact, it is the only thing that ever has.” Margaret Mead
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