Innovation Model Facets All materials © NetCentrics 2008 unless otherwise noted.

Innovation Model Facets

All materials © NetCentrics 2008 unless otherwise noted

Welcome

• Our goal for the next hour is to examine the concept of an innovation model and the characteristics or “facets” that should be carefully considered

• We’ll also consider how these decisions influence and map to your innovation process

What We Want to Accomplish

Goals for today

• Define an innovation model• Identify the innovation “facets” and their

importance• Establish a starting point for the innovation

model for each of the facets

Key Points

• Innovation operates best within a framework or context – what we call an innovation model

• This model is composed of a number of facets which influence how innovation works within your business

• Defining the innovation model and facets will improve your success rate and your ability to communicate your scope and goals

Models

Models create a visible representation of what we want to define.A stated innovation model provides scope and focus for the team.

Business Model

• You may be familiar with the concept of a business model– For example, a firm can sell to consumers or sell to

other businesses or other kinds of customers– These decisions influence how the business

operates, who its customers are, the kinds of products or services it offers, its price points and many other factors

Educational Model

• Most universities follow a traditional education model– Introductory courses to establish breadth of

learning– Advanced courses in specific areas to establish

depth of knowledge in specific subjects– A many to one relationship between student and

professor

Innovation Model

• Similarly, innovation exists within a context or model, shaped by a number of characteristics or “facets”

• Making decisions about these facets is important, as these facets dictate the kinds of ideas you’ll generate, who will participate and how they’ll be evaluated

• Clarity around the model helps improve innovation effectiveness

Visible innovation models

• We can examine some innovation models that are working in firms today:– Proctor & Gamble– Apple– Google– Gore

• All of these firms are successful innovators yet use different models in their innovation work

Apple

• Apple seeks to innovate around customer experience

• They are rarely “first” to market, in fact often late to a technology market but attract customers through vastly improved customer experience

• Apple’s innovation model is driven from the top down, in very small teams, with an expectation of disrupting a specific market

Apple Examples• MacIntosh

– Late to the PC market– Niche software and

market size– Yet easy to use and learn– Developed by a very small

team within Apple– Tried to disrupt the

microcomputer market, based on customer experience

• iPhone– Late to the cellular market– Compelling user

experience– Developed by a very small

team within Apple– Disrupted the market for

handhelds, commanded a premium over other handhelds

Google

• Seeks to innovate around the management of online information

• Ideas bubble up from the average employee with little centralized direction

• Ideas quickly beta tested by a large audience and moved into commercial development or quickly killed

• Just as open to acquisition as they are to internal development

Apple and Google

• Examples of two clearly innovative companies with very different innovation models

• Let’s examine some of the key facets that they share in the innovation model

Innovation model

• We’ve found that defining an innovation model for your team provides clarity about:– The ideas that are generated– How the ideas are evaluated– Who should participate

• Let’s examine a number of the model “facets”

Innovation FacetsOpen/Closed

Participative/Skunkworks

Decentralized/Centralized

Suggestive/Directed

Incremental/Disruptive

Individual/Team

Wisdom of crowds/Experts

Product/Service/Process/Business Model

Open/Closed

Will we invite students, alumni and partners to participate?

Open/Closed

Skunkworks / Participative

Who can participate in this innovation project?


Decentralized / Centralized

Will the work be decentralized or centralized?


Suggestive / Directed

How will we direct the origination of ideas?

Suggestive/Directed

Incremental / Disruptive

What kinds of ideas are we willing to ask for and receive?


Tec

hnol

ogy New

Near to Existing

New

Business Model

Near to Existing

Incremental Breakthrough

BreakthroughGame

Changer

Incremental - Disruptive

Individual / TeamWho should work on the ideas?

Individual/Team

Wisdom of Crowds / Experts

How should we evaluate the ideas?


Product / Service / Business Model

• Products – physical products or a “packaged” service

• Services – how we deliver our products or capabilities

• Processes• Business models

Product/Service/Process/Business Model

Doblin’s Innovation TypesType Definition Example

Business Model How you make money Dell

Networks and alliances How you work with other companies

Sara Lee outsources manufacturing

Enabling Processes How you support the company’s core processes

Starbucks

Core Processes How you create and add value to your offerings

Wal-Mart

Product Performance How you design your offerings

VW Beetle

Product System How you link your products to create a system

Microsoft Office

From: Doblin Grouphttp://www.doblin.com/IdeasIndexFlashFS.htm

Doblin Types (cont)Type Definition Example

Service How you provide value to customers beyond product

Singapore Airlines

Channel How you get your offerings to market

Martha Stewart

Brand How you communicate your offerings

Absolut

Customer Experience How your customers feel about the company

Harley Davidson

Right Answer / Wrong Answer

• Note that there aren’t necessarily “right” or “wrong” choices for these models

• Rather there are implications to making the choices– What you encourage– What you ignore– Where you place your focus– How you choose to evaluate

Initial DeploymentOpen/Closed



Your initial deployment may look like the selections above – a closedmodel that is partially participative and centralized seeking primarilyincremental ideas that will be evaluated by experts


Suggestive/Directed

Individual/Team


MaturityOpen/Closed



Over time your innovation model could morph to represent these choices,which reflect more open and participative innovation that seeks moredisruptive ideas and uses a broader evaluation panel.


Suggestive/Directed

Individual/Team


Why is this important

• Making these decisions explicitly early in your innovation effort help people understand the scope of your efforts and where to spend their time

• It provides clear markers for areas of interest where innovation is concerned and how the innovation model can be deployed

• A clearly defined model aids communication to those who wish to participate

What can you do?

• Think carefully about your innovation goals, strategy and expectations

• Develop an innovation model that recognizes existing strengths and challenges in your business

• Recognize that the model is adaptable as your team gains innovation experience

• Define your model and communicate the facets to everyone

Key Takeaways

• Defining the innovation facets establishes a clear scope and “operating model” for the project or team

• These facets are flexible and may change from project to project, or as the team gains experience

• Failure to establish these facets or poor choices will frustrate the innovation process

Questions

• Questions or more discussion?

Exercise

• Let’s define the innovation model facets for your innovation initiative

Innovation Model Facets All materials © NetCentrics 2008 unless otherwise noted.

Documents

innovation facets

stated innovation model

innovation work slide

innovation effectiveness

innovation process slide

business model

educational model

visible innovation models