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Page 1: Presentation One
Page 2: Presentation One

Today’s Purpose

Teach a

Reliable System

for Accelerating

Profitable Growth

• More PROFITABLE

products or services

(new or improved)

• More PROFITABLE

customers & markets

MATRIX

Page 3: Presentation One

Today’s Training Simulation

is about...

MATRIX

Page 4: Presentation One

History

1. Founded in 1989

2. By George P. Burdell after he was laid off

3. Created Red Devil Security System in his Garage

MATRIX

Page 5: Presentation One

Unique Features

• Cross Zone

• Flash Memory

• AES

• Sleek Control Panel

THE RED DEVILSecurity System

MATRIX

Page 6: Presentation One

Primary market is the 6,000,000 Small Businesses

Jewelry

Stores

Consumers

Misc. Small

Businesses

THE RED DEVILSecurity System

MATRIX

Page 7: Presentation One

Sales Trend

LeanMade Us Price

Competitive

China Competition

Introduced

US Competition Cloned Us

Won Bid

for Tiffanys

THE RED DEVILSecurity System

MATRIX

Page 8: Presentation One

Owner and Founder

George P. Burdell

Has gone to Hawaii to celebrate the

Lean Turnaround.

He’s not had a holiday since 1989.

MATRIX

Page 9: Presentation One

Sales Trend

Today

THE RED DEVILSecurity System

MATRIX

Page 10: Presentation One

The team has analysed what’s

happened ... and sent a report

to George...

MATRIX

Page 11: Presentation One

We Need Ideas For

PROFITABLE GROWTH

5 Minutes

to work with your team

MATRIX

Page 12: Presentation One

…let’s see how George

likes our ideas...MATRIX

Page 13: Presentation One

Growth Rate (%) vs No. New/Improved Products/Services in 3 year period

New products/services drive growth….

MATRIX

Page 14: Presentation One

New customers drive growth….A

ve

rag

e G

RO

WT

H R

AT

E

Number of NEW CUSTOMERS over the past 3 years

MATRIX

Page 15: Presentation One

What Makes This Program UNIQUE...

MATRIX

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Innovation Success FactorsDiscovered by

REVERSE ENGINEERING

what separates winners from losers

4,000+ ideas were studied

Over 2,000 Academic Journal Articles Reviewed

MATRIX

Page 17: Presentation One

Process Success FactorsDiscovered by

Quality Control Charting of

6,000+

Innovation TeamsMATRIX

Page 18: Presentation One

Its NOT about

Balance Sheets,

Accounting

or Cost ControlMATRIX

Page 19: Presentation One

THINKING SYSTEMfor Accelerating Innovation

Today is about changing your

MATRIX

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“94% of failures are

due to the SYSTEM

6% are due to the

worker”

MATRIX

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The FACTORY offers

3% of the Opportunity for

Company Improvement.MATRIX

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….why does innovation matter?MATRIX

Page 23: Presentation One

“If you’re not

unique you’d

better be

cheap.”Doug Hall

Monopoly

Commodity

MATRIX

Page 24: Presentation One

Quick Test for Meaningful Uniqueness

Are your profit margins...

10% 20% 50%higher than your industry?

If not, then you are

NOT meaningfully unique

MATRIX

Page 25: Presentation One

Only 1 in 7

small businesses

close leaving debt

Why the Focus on

PROFITABLE GROWTH?

Over 80% Close Because

“It’s not worth the effort”

MATRIX

Page 26: Presentation One

today……..MATRIX

Page 27: Presentation One

MATRIX

Page 28: Presentation One

Profit 101

= learning simulationMATRIX

Page 29: Presentation One

Challenge Programmeapplies the system to your businessMATRIX

Page 30: Presentation One

Responsible for £1.5Bn in new

products & services globally.MATRIX

Page 31: Presentation One

effectiveness endorsed by…

MATRIX

Page 32: Presentation One

1. Dramatic Difference

2. Overt Benefit Difference

3. Real Reason to Believe Difference

4. Explore Stimulus

5. Leverage Diversity

6. Drive Out Fear

6 Key Learning Concepts

Agenda --- Basic then ADVANCED

MATRIX

Page 33: Presentation One

Your Simulation Workbook

Put your name on it!

Notes from the presentation

are placed throughout the book

Everyone has a different COLOUR

on the front of their workbook

MATRIX

Page 34: Presentation One

Why do we at Buzz Electronics

need to change our system for

accelerating profitable growth?

10 Minutes

to work individually

& with your team

Handout + Pages 4 & 5

Why Are We Here?

MATRIX

Page 35: Presentation One

Report Out!

thunderous applause

guaranteedMATRIX

Page 36: Presentation One

1. Dramatic Difference

2. Overt Benefit Difference

3. Real Reason to Believe Difference

4. Explore Stimulus

5. Leverage Diversity

6. Drive Out Fear

6 Key Learning Concepts

Agenda --- Basic then ADVANCED

MATRIX

Page 37: Presentation One

Dramatic Difference

You TRIPLE your odds of success when

you offer a DRAMATIC DIFFERENCE in

Overt Benefit & Real Reason to Believe

Dramatic Difference Probability of Success

Low Dramatic Difference

Medium Dramatic Difference

High Dramatic Difference

14%

40%

53%

MATRIX

Page 38: Presentation One

7

8

9

10

11

12

13

14

15

16

Low Cost Quick Delivery Voice of Customer High Quality Innovation

Average % Profit Margin vs Core Business Strategy

Georgia Institute of Technology

n=738

MATRIX

Page 39: Presentation One

370%Greater chance

of profitable

success for ideas

that are

Extremely/Very

Unique

MATRIX

Page 40: Presentation One

RADICAL Innovationversus Incremental Innovation

Company

Valuation

Marketing

Effectiveness

7X

9X

MATRIX

Page 41: Presentation One

Companies That

Patent Grow

5X Faster

It’s NOT the

Certificate

It’s the

MINDSET!

MATRIX

Page 42: Presentation One

New Customers love

NEWS & hope

THE FIRST!

THE ONLY!MATRIX

Page 43: Presentation One

1. Dramatic Difference

2. Overt Benefit Difference

3. Real Reason to Believe Difference

4. Explore Stimulus

5. Leverage Diversity

6. Drive Out Fear

6 Key Learning Concepts

Agenda --- Basic then ADVANCED

MATRIX

Page 44: Presentation One

You TRIPLE the effectiveness of

your marketing efforts by OVERTLY

communicating your customer benefit

Probability of Success

Low Overt Benefit

Medium Overt Benefit

High Overt Benefit

13%

26%

38%

Overt Benefit Difference

MATRIX

Page 45: Presentation One

Features are the

- Facts

- Figures

- Technology

- and Details

That make up your offering

Features are not Benefits

MATRIX

Page 46: Presentation One

“Our product will make you

Smarter...

Faster...

Healthier...”

Benefits are…

WHY should I care?I = the customer

MATRIX

Page 47: Presentation One

feature

stabilisation

control

benefitreduces

rollover risk

MATRIX

Page 48: Presentation One

featurequality

wax blends

benefitlong-lasting &

glossy shine

MATRIX

Page 49: Presentation One

feature

On-Line

Banking

benefit

You Save More

with auto budget

MATRIX

Page 50: Presentation One

feature benefit

Fast Teething

Pain Relief

Contains

Benzocaine 7.5%

MATRIX

Page 51: Presentation One

WHY should I care?

WHY should I care?

WHY should I care?

WHY should I care?

WHY should I care?

MATRIX

Page 52: Presentation One

Turn 3 Unique Features

of the Red Devil

into OVERT Benefits

Work individually then

work with your team

15 mins

Pages 6-7

Features to Benefits

MATRIX

Page 53: Presentation One

Benefits are Relative to a

Specific CustomerMATRIX

Page 54: Presentation One

Cookshack Cookers

Send You to The

Winners Circle1,000+ Wins

Target Audience =Those who competeIn BBQ Competitions

MATRIX

Page 55: Presentation One

NEW Target Audience

Those who don’t compete

WARNINGThis Electric Cooker is

ILLEGAL in Competitions

It gives the user an

UNFAIR ADVANTAGE

as the even heating

makes it too easy to

Make Perfect BBQ Every Time

MATRIX

Page 56: Presentation One

1. Dramatic Difference

2. Overt Benefit Difference

3. Real Reason to Believe Difference

4. Explore Stimulus

5. Leverage Diversity

6. Drive Out Fear

6 Key Learning Concepts

Agenda --- Basic then ADVANCED

MATRIX

Page 57: Presentation One

Overt Benefit

Difference

gets customers

excited

Real Reason to

Believe Difference

closes the sale

MATRIX

Page 58: Presentation One

If you’re promising a

BENEFIT DIFFERENCE

Then…

You MUST Be Doing

SOMETHING DIFFERENTLY(i.e. have a “Reason to Believe” Difference)

MATRIX

Page 59: Presentation One

Real Reason To Believe Probability of Success

Low Real Reason to Believe 18%

29%

42%

Medium Real Reason to Believe

High Real Reason to Believe

You DOUBLE your odds of Success when you

Communicate a REAL REASON TO BELIEVE

That your OVERT BENEFIT will be delivered.

Real Reason to Believe Difference

MATRIX

Page 60: Presentation One

if every company did what

they promised…..MATRIX

Page 61: Presentation One

there would be no need for…..MATRIX

Page 62: Presentation One

“Real

Reason to

Believe.”MATRIX

Page 63: Presentation One

93% of consumers do not have

confidence in the advertising

messages of major corporations.

-YankelovichMATRIX

Page 64: Presentation One

64% of consumers do not believe

that the news media get their

facts straight.

-GallupMATRIX

Page 65: Presentation One

Your Overt Benefit Should…

DEMANDReal Reason to Believe

MATRIX

Page 66: Presentation One

It’s Simple

BE REALTell the TRUTH &

do what you promise.

MATRIX

Page 67: Presentation One

Added 5 Words ...

“baked in not

painted on”

The Truth

MATRIX

Page 68: Presentation One

$20M

Growth

MATRIX

Page 69: Presentation One

• 1. Tell the Truth 42%

2. Testimonial 41%

3. Pedigree (Methods, Materials) 41%

4. Data or Demonstration 45%

5. Guarantee (That’s “risky”) 60%

“risky” to you, not to the client

Five Strategies for adding

Real Reason to Believe

Probability of SuccessHolding all else constant

MATRIX

Page 70: Presentation One

Kitchen LogicKitchen Logic

the TRUTH

MATRIX

Page 71: Presentation One

expert TESTIMONIAL

The Service: Laser Vision Correction

The Benefit: Near Perfect Vision

The Real Reason to Believe:

Testimonials from DOCTORS who have

used this DOCTOR for Eye Surgery

MATRIX

Page 72: Presentation One

PEDIGREE

“The world’s greatest distilled spirit

at the present time. Buy what ever

you can find.”Paul Pacult

Spirit Journal Retaste 12.07

“Arguably the Best Whisky in

the World.”Dave Broom

Whisky Magazine

“The Greatest All Rounder in the

World of Malt Whisky.”Michael Jackson

Whisky Expert

Overt Communication of

Pedigree Grew Sales 30%+

MATRIX

Page 73: Presentation One

DEMONSTRATION

MATRIX

Page 74: Presentation One

MATRIX

Page 75: Presentation One

1. Dramatic Difference

2. Overt Benefit Difference

3. Real Reason to Believe Difference

4. Explore Stimulus

5. Leverage Diversity

6. Drive Out Fear

6 Key Learning Concepts

Agenda --- Basic then ADVANCED

MATRIX

Page 76: Presentation One

Stimulus Available # of practical ideas invented

Low Stimulus

Medium Stimulus

High Stimulus

22

38

47

Explore Stimulus

• Uniqueness Mining• Customer Mining• Technology Mining

MATRIX

Page 77: Presentation One

Stimulus 1 + 1 = 3

+ =

+ =

MATRIX

Page 78: Presentation One

Traditional Model

Individual Brainstormingdraining

Before After

Suck Method Uses Your Brain Like A

LIBRARY

MATRIX

Page 79: Presentation One

COMPUTER

Stimuli sets off a CHAIN Reaction!!!

MATRIX

Page 80: Presentation One

Where To Go On Holiday?

MATRIX

Page 81: Presentation One

Where To Go On Holiday?

MATRIX

Page 82: Presentation One

Like when you FIRST started your

company or started your job…

MATRIX

Page 83: Presentation One

1. Dramatic Difference

2. Overt Benefit Difference

3. Real Reason to Believe Difference

4. Explore Stimulus

5. Leverage Diversity

6. Drive Out Fear

6 Key Learning Concepts

Agenda --- Basic then ADVANCED

MATRIX

Page 84: Presentation One

Diversity of Thinking # of practical ideas invented

Low Diversity

Medium Diversity

High Diversity

19

30

46

Leverage Diversity

Diversity multiplies the impact of stimulus.

MATRIX

Page 85: Presentation One

What is a rose? “Beauty”

“Beauty”

“Beauty”

Clones Create Clones

MATRIX

Page 86: Presentation One

What is a rose?“Beauty”

“Vitamin C Tea”

“Rose Water”

“Tango”

Diversity Multiplies

Stimuli

MATRIX

Page 87: Presentation One

Leveraging

Diversity

is not for

WIMPS!

MATRIX

Page 88: Presentation One

STIMULUS MINING

• Customers

• Technologies

• Suppliers

• Distributors

• Sales People

• Customer Service Complaints

MATRIX

Page 89: Presentation One

Finance

Marketing

R&D

PurchasingSales

Operations

DIVERSITY

breaks down internal silos

MATRIX

Page 90: Presentation One

STIMULUS MINING

employees inputs

Pages 8 & 9

Uniqueness Mining

Customer MiningMATRIX

Page 91: Presentation One

For Example…

Uniqueness MiningOur sensors have tonnes

of extra memory

Idea...

MATRIX

Page 92: Presentation One

Security System PLUSMission Impossible Game

Use the memory to add a

computer game to the system

MATRIX

Page 93: Presentation One

Buzz Ideas

PAIR UP TO

INVENT IDEAS

for new

PRODUCTS / SERVICES

for BUZZ Electronics

ON Pages 10 & 11

using stimulus

from pages 8 & 9 15mins

MATRIX

Page 94: Presentation One

is not

a strategy

for success

MATRIX

Page 95: Presentation One

What is it?MATRIX

Page 96: Presentation One

is not

a strategy

for success

MATRIX

Page 97: Presentation One

CHALLENGE

The more Dramatically Different

The Greater The

CONFUSIONMATRIX

Page 98: Presentation One

ConfusionBarrier compositions and articles

produced with the compositions

A stable, aqueous barrier coating

composition includes: (a) prolamine;

(b) cold water insoluble polymer; (c)

water; (d) water-soluble co-solvent;

and (e) stabiliser. The composition,

when applied to a substrate,

produces an article having a high

surface energy and resistance to oil

and grease penetration. A method of

producing the article involves

applying the composition to a

substrate...

ClarityCancer-Safe Fast Food Tub

The first biodegradable fast food

sandwich container that provides

grease protection without the

chemicals that have been found to

cause cancer. MATRIX

Page 99: Presentation One

ConfusionHot Water Tap

Clarity

Our Industrial Water Taps...

1. Provide 2 times greater flow

19 vs. 6 gallons per minute at 25 psi

2. Installs in half the time

Use a standard 1 3/8ths drill bit

vs. Chiseling a 3 inch hole

The finest quality tap available.

Made from heavy cast brass

patterns, copper tubing with

stainless steel and aluminium

accessories, these faucets are

designed, built and tested to last

for the life of your plumbing

system.

They’re the BEST Available!

MATRIX

Page 100: Presentation One

Half the TimeDouble the

FlowMATRIX

Page 101: Presentation One

Research finds

that you should….

Write So That A

12 Year Old Can

Painlessly Understand

Your Idea

MATRIX

Page 102: Presentation One

CLARITY is especially necessary with

TECHNICAL Offerings

Geek Geekto toMarketing

& Accounting

MATRIX

Page 103: Presentation One

One or Two Benefits = 44% Success

Conclusion:

Do One Thing Great!

Three or More Benefits = 37% Success

MATRIX

Page 104: Presentation One

Free tasting of 24 flavors of jam.

FOCUS - improves CLARITY

MATRIX

Page 105: Presentation One

Free tasting of 6 flavors of jam.

FOCUS - improves CLARITY

MATRIX

Page 106: Presentation One

6 flavors

12 % Bought24 flavors

2 % Bought

FOCUS - improves CLARITY

MATRIX

Page 107: Presentation One

Let a customer say NO…

because what you offer doesn’t apply to them.

But NEVER let a customer say

NO because they don’t

understand what you’re offering.

Golden Rule of Clarity

MATRIX

Page 108: Presentation One

Yellow Idea CardMATRIX

Page 109: Presentation One

Our Focus:

New products / services

for Buzz ElectronicsMATRIX

Page 110: Presentation One

you have 15 minutes…..MATRIX

Page 111: Presentation One

Buzz Ideas

Team adds CLARITY

Write idea on Yellow Card

Use pages 12-13 as guidance

MATRIX

Page 112: Presentation One

Why do we hope a miracle will occur?

MATRIX

Page 113: Presentation One

10 Minutes

1. INDIVIDUALS

Explore STIMULUS

20 Minutes

2. CREATE with Partner

Leverage DIVERSITY

20 Minutes

3. LISTEN & LEARN from Team

Drive Out FEAR

The Innovation Systems Way to Leverage Group Diversity

MATRIX

Page 114: Presentation One

Advanced

TopicsMATRIX

Page 115: Presentation One

Advanced

STIMULUSMATRIX

Page 116: Presentation One

Journal of Product Innovation Management 2005;22:258

Competitive

/ Customer

Scouting

Technology

Scouting

5X

More Effective

Best Place To Look for Stimulus

MATRIX

Page 117: Presentation One

Open Innovation

STIMULUS MINING

MATRIX

Page 118: Presentation One

OPEN INNOVATION

is the Future

New WorldOld World

All Smart People work for us and we

do it all ourself

Not invented here

We don’t partner with competitors

Connecting Outside means 85% Increase in R&D

productivity

Reapply with Pride

Our biggest competitor is our biggest customer

MATRIX

Page 119: Presentation One

OPEN INNOVATION

MATRIX

Page 120: Presentation One

Companies are DesperateInnovation Success is Poor

Only 4.5% of projects

meet ROI Goals

Boston Consulting

Group

Success

Failure

32% Odds versus 4.5% odds

MATRIX

Page 121: Presentation One

They’re Turning to

OPEN INNOVATIONTo Accelerate Success

MATRIX

Page 122: Presentation One

OPEN INNOVATION

is the Future

% of P&G

ideas from

outside the

company

MATRIX

Page 123: Presentation One

“94% of failures

are due to the

SYSTEM

6% are due to the

worker”

MATRIX

Page 124: Presentation One

Launch

Ideas

Evaluate

IdeasCreate Ideas

the three stages of the system…

A system for

creating as many

ideas as possible.

A system for picking

ideas with the highest

probability of success.

A system for getting

ideas to market with

the minimum of time,

money and risk.

MATRIX

Page 125: Presentation One

Seller BENEFIT60 Second

Business Credibility

Inventor’s ideas are taken more

seriously by companies because each

idea comes with an independent

research report and sales forecast that

can be understood in 60 seconds.

Buyer BENEFITSmarter, Faster, Cheaper

Innovation Development

Companies can painlessly access a

virtual Innovation Department that is as

much as 3X times more successful, 85%

more efficient and requires 50% less

capital investment.

Some examples of Open Innovation Marketplace s

Where Innovation Buyers, Sellers, Investors & Distributors

Speak the Same Language

e.g. http://www.innovationsupplychain.com/

MATRIX

Page 126: Presentation One

Finance

Marketing

R&D

PurchasingSales

Operations

DIVERSITY

breaks down internal silos

Remember...

MATRIX

Page 127: Presentation One

breaks down company walls

Finance

Marketing

R&D

PurchasingSales

Operations

Open Innovation

MATRIX

Page 128: Presentation One

STIMULUS MINING

Open Innovation Miningfrom the

Innovation

Marketplaces

on

Pages

14 & 15

MATRIX

Page 129: Presentation One

Open Innovation

Stimulus

Intelligent motion detectorthat knows the difference

between humans & animals

Idea...

MATRIX

Page 130: Presentation One

The Terminator

The system

also

exterminates

rodents!

MATRIX

Page 131: Presentation One

WIPE YOUR

MIND CLEAN

Create a FRESH Idea

Create a NEW Idea

MATRIX

Page 132: Presentation One

PAIR UP to INVENT IDEAS

for new PRODUCTS/ SERVICES

for BUZZ ELECTRONICS

ON Pages 16 & 17

using Open Innovation

stimulus from pages 14 & 15

15 mins

Buzz Ideas

MATRIX

Page 133: Presentation One

Lunch Break

MATRIX

Page 134: Presentation One

ADVANCED

Overt Benefit

TopicsMATRIX

Page 135: Presentation One

Customer Pull

is about offering…

CLEAR & SPECIFIC

Overt Benefit Advantages

MATRIX

Page 136: Presentation One

Generic

ClaimMATRIX

Page 137: Presentation One

It’s just as GENERIC as

“what makes us great is...”

MATRIX

Page 138: Presentation One

Features . . .

Clear Benefits . . .

Overt Benefit Advantages . . .

Specific & Numeric Benefit Advantages

Confusion . . . Where are you?

MATRIX

Page 139: Presentation One

A NUMBERIncreases odds

of success by

52%MATRIX

Page 140: Presentation One

SPECIFIC & NUMERIC

ExamplesMATRIX

Page 141: Presentation One

SERVICE

“100% Delivery in 24 Hours we keep

inventory so you don’t have to”

Be Specific!

MATRIX

Page 142: Presentation One

QUALITY

“Our SIMMS fishing

wader zippers WORK -

they’re the same quality

as Air Force exposure

suits.”

Be Specific!

MATRIX

Page 143: Presentation One

Be Specific!

PEOPLE

“Our service

people

get it right the first

time - each has at

least 10 years of

experience”

MATRIX

Page 144: Presentation One

Under extreme heat

our Air Blasters

produce up to 50%

more force than

competition.

MATRIX

Page 145: Presentation One

“But my customers are only

interested in low price!”

MATRIX

Page 146: Presentation One

Low Price is Specific & Numeric

The only way to beat it is to

OFFER MORE VALUE

MATRIX

Page 147: Presentation One

“If you’re not meaningfully

unique you’d better be

cheap.”

Are You Catching a Theme?

MATRIX

Page 148: Presentation One

Buzz Ideas

Team adds NUMBERS

Write idea on YELLOW Card

Use pages 18-19 as guidance

MATRIX

Page 149: Presentation One

Vote at TableUse ALL of your coins

To Accelerate Profitable Growth

Where should

we Invest

George’s Money?MATRIX

Page 150: Presentation One

Report Out!

thunderous applause

guaranteedMATRIX

Page 151: Presentation One

REVIEW:YOURCULTURE

Thoughts?

Ideas?

MATRIX

Page 152: Presentation One

THINK:YOURCOMPANY

Let’s use your homework.

Create a FRESH Idea

Create a NEW Idea

MATRIX

Page 153: Presentation One

The Truth is...

DRAMATICALLY DIFFERENT IDEAS

CHAOSCause Operational

CHAOSMATRIX

Page 154: Presentation One

“94% of failures

are due to the SYSTEM

6% are due to the

worker”

SOLUTION = Fix the SYSTEM

MATRIX

Page 155: Presentation One

System Based on the

Masters of Innovation….

Start Up

CompaniesMATRIX

Page 156: Presentation One

% of Innovations

Still in Business after 3 years

Start Ups Are…The Real EXPERTS of Innovation Commercialisation

MATRIX

Page 157: Presentation One

Product

Development

Business

Model

Development

Marketing

Development

The Simultaneous Engineering Approach

Rapid Cycles

of Test &

Learn

Fail Fast - Fail Cheap

1. Plan

2. Do

3. Study

4. Act

MATRIX

Page 158: Presentation One

How to START UP like a START UP

Open Innovation“Borrow don’t build or buy”

Manufacturing – Distribution Investment - Ideas

MATRIX

Page 159: Presentation One

R&D / Engineering

Finance

Manufacturing / Operations

SCOUT

The SCOUT(project General Manager)

Is the HUB of the WHEEL

Market Research

Sales / Marketing

MATRIX

Page 160: Presentation One

The RELAY RACE Approach

Doesn’t Work

MATRIX

Page 161: Presentation One

Product

Development

Business

Model

Development

Marketing

Development

The Simultaneous Engineering Approach

Rapid Cycles

of Test &

LearnMATRIX

Page 162: Presentation One

Innovation is about “Whack-a-Mole”

Product /

Service

Reality

Profit

Formula

Customer

Promise

Rapid Cycles

of Test &

LearnMATRIX

Page 163: Presentation One

The Deming CycleScientific Method

1. Plan

2. Do

3. Study

4. Act

“Fail Fast Fail Cheap

Get Smart”

MATRIX

Page 164: Presentation One

Expensive & Slow

“Proper & Mature”

Business Innovation

System

1. Plan2. Study

2. Study

2. Study

2. Study

2. Study

2. Study

2. Study

2. Study

2. Study

2. Study

2. Study

2. Study

Old World

Fail Fast - Fail Cheap

Get Smart

1. Plan

2. Do

3. Study

4. Act

1. Plan

2. Do

3. Study

4. Act

1. Plan

2. Do

3. Study

4. Act

1. Plan

2. Do

3. Study

4. Act

MATRIX

Page 165: Presentation One

Fail Fast

Fail Cheap

& Get Smart

test with

vending

machines

MATRIX

Page 166: Presentation One

Fail Fast

Fail Cheap

& Get Smart

test at

trade shows

MATRIX

Page 167: Presentation One

MATRIX

Page 168: Presentation One

KILLER

Death Threat

Small

Problem

Small

Problem

Small

Problem

Approach

Focus on Biggest Threats or “Unknowns” First

MATRIX

Page 169: Presentation One

P&G Does the Same

Focus First On Project

Death Threats“Teams like to address easy issues first. At P&G we

have flipped the sequence. Teams must identify so-

called “killer issues” - problems that must be solved

for the innovation to succeed.”

A.G. LafleyRetired CEO

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Manageable

Threat

KILLER

Death Threat

1. PlanWhat Death

Threat?

2. DoLearn

3. StudyWhat learned?

4. ActApply

Revise

Stop

Turn KILLER Threats

Into Manageable Threats

Focus on Biggest Threats First

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Situation: Bill a home brewer thinks he's invented a

beer that prevents hangovers. He uses a secret

collection of herbs to make it work.

Death Threats: Bill meets with an investor who

is interested in the idea. However, the

investor has identified two Death Threats that

he's asked Bill to address before he invests.

1. Is it legal to sell it?

2. Does it really work?

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Death Threat1. Is it legal to

sell?

2. Does it really

work?Ask for Advice

Innovation Supply Chain

Customer Feedback

- Problem

- Idea / Product

Do the Numbers

•Estimate Sales

•Estimate Cost

•Reduce Uncertainty

Dig for Truths

•Data & Research Dig

• Technology & Patent Dig

• Inventor & Expert Dig

Make it Real

•Feel the PAIN (Problem)•Fast “Works Like” Prototype

•Fast “Looks Like” Prototype

Test it with 10 people

who typically get

hangovers

Ask the herb

company to

investigate

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We’re not trying for a TOTAL Solution

Give attention to the plate that is about to fall just

enough to keep it spinning.

Just trying to remove it from DEATH THREAT LIST

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THINK

Fail Fast

Fail Cheap

Get Smart

Methods

15 Minutes

to work as a team Page 26

Buzz Plan

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Report Out!

thunderous applause

guaranteed

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But no ideas are

THROWN

AWAY

Some Ideas Get Accelerated NOW

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High Probability Ideas (£/€)

Medium Probability Ideas (£/€)

Low Probability Ideas (£/€)

Pipeline Management of Innovation

=

Correct

Understanding of

Value

Max Chance of

Hitting Growth

Targets From

Innovation

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A Simple Pipeline Management System…

IDEAConservative

Forecast

Most Likely

Forecast

Aggressive

Forecast

Development

Status

Proprietary

StatusTrailblazer

ACTIVE

Project #1 £0 £0 £0 1 to 5 1 to 5 name

Project #2 £0 £0 £0 1 to 5 1 to 5 name

Later

Project #3 £0 £0 £0 1 to 5 1 to 5 name

Project #4 £0 £0 £0 1 to 5 1 to 5 name

TOTAL £0 £0 £0 average average

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Profitable Growth

is Not Random

Good

NewsMATRIX

Page 183: Presentation One

1. Dramatic Difference

2. Overt Benefit Difference

3. Real Reason to Believe Difference

4. Explore Stimulus

5. Leverage Diversity

6. Drive Out Fear

Leading Profitable Growth

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Challenge Programme

Applies the Learning

In-CompanyMATRIX

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What information we can

provide

• Cross-border trade advice

Dealing with issues of taxation, regulations, etc (see Simple Guide to Cross Border Business)

• Sectoral reports

In-depth reports on sectoral dynamics and cooperative opportunities (eg: construction materials, agri-food, etc)

• Company leads/databases

Details of potential leads by sector, size and region

• Size of the all-island marketplace

Trade and business sentiment statistics to help companies take informed decisions (see http://www.intertradeireland.com/trade-statistics/ )

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Page 186: Presentation One

Business Information Centre and

Enterprise Europe Network

• Business Information Centre - specialised electronic databases for:

• Company information: Search by location, size, activity to find potential customers, competitors or new suppliers

• Market Information: Market size, forecasts, channels to market, key players, and more

• Enterprise Europe Network NI- one of over 500 contact points in Europe backed by the European Commission advising companies on EU legislation, programmes, opportunities, selling to the public sector

• To make an appointment: Tel: 028 9069 8135 E-mail: [email protected]

• See sector guides: http://www.investni.com/index/publications.htm?filter=S(Scroll to bottom)

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