Incremental vs Radical PRODUCT RADICALLY DISRUPTIVE SUSTAINING Sales

Incremental vs. Radical PRODUCT RADICALLY DISRUPTIVE SUSTAINING Sales arguments are A significant improvement on a fundamentally changed through product in an old market with new innovations roadmapping, & R & D The Innovation Matrix simplifies and structures innovation management and strategy; It urges organizations of any size – RADICALLY whether a start-up, a corporate, an institute, or social DISRUPTIVE SUSTAINING establishment, professionals or novices. Many incremental improvements Constant & steady process that eventually lead to a market happens in every business which disruption is continuous process. MARKET Disruptive vs. Sustaining

New markets Innovation Ambition Matrix TRANSFORMATIONAL Developing breakthroughs or inventions for market yet to exist. WHERE TO PLAY ADJACENT 10% Allocation of resource 70% Return on investment Expanding from existing business into “new to company” business CORE 20% Allocation of resource 20% Return on investment Optimizing existing products that Existing markets are for existing customers 70% Allocation of resource 10% Return on investment Use existing product and assets HOW TO WIN Develop new products & assets

House of Innovation STRATEGY 01 Innovation strategy • Vision & strategic focus on innovation • And implementation of strategy ORGANIZATION & CULTURE 02 Organization & culture • Roles & responsibilities for innovation • Interface & culture for open innovation INNOVATION PROCESS LIFECYCLE MANAGEMENT 03 Idea Management Innovation development Continuous improvement Innovation life cycle process • Idea management • Product process development • Launch & continuous development 04 ENABLING FACTORS Enabling factors • Project management • human resource & incentives • IT and knowledge management INNOVATION RESULTS 05 Innovation results • Growth in revenue and profit • Number of employees

Market Entry Times Later Follower REVENUE Early Follower Pioneer: First to market DEVELOPMENT GROWTH MATURITY DECREASE

Three Horizons Model Sales company’s existing business model and Unknown core capabilities in the short-term. Horizon 1 Ideas provide continuous innovation to a HORIZON 3 Ideas extend a company’s existing business model and core capabilities to HORIZON 2 new customers, markets, or targets. Horizon 2 Partially Known business to take advantage of or respond Time Existing business model: New opportunities via New/disruptive process innovation business model EXECUTE/SEARCH to disruptive opportunities? Horizon 2 Is the creation of new capabilities and new HORIZON 1

FUGLE Innovation Process Model Collect information Determine feasibility Develop Generate GATE ideas GATE Concept Develop Test Innovation GATE prospect portfolio GATE deploy Exploit GATE Optimize GATE bugle business model prototype Capture ideas BUGL E EL FUNN Idea Generation Concept Refine Identifying opportunities & creating a prospects portfolio Deployment Develop Refine Commercialize by developing, deploying & exploiting Exploitation

Innovation Metrics 38% 33% 15% 25% 55% US China REVENUE MARKET RETURN ON GROWTH SHARE INVESTMENT 37% 60% 20% Global

Risk-Attractiveness of Innovation VERY SMALL Technology Maturity Quality Management Complexity Market Uncertainties Competition Internal Expertise Know-How Risk Investment Resource Availability SMALL MEDIUM LARGE VERY LARGE

Concept Screening CONCEPT A CONCEPT B CONCEPT C CONCEPT D Strategic alignment 5 2 5 4 product/service will be compared. Market size 3 1 3 3 STEP TWO Market growth forecast 4 3 3 1 Wow factor/ concept value 2 4 2 3 Technical feasibility 3 2 1 4 Manufacturing feasibility 1 5 5 1 Delivery feasibility 2 1 1 1 Competitive advantage 1 2 2 2 Column Total 21 20 22 19 STEP ONE Create the criteria against which the potential ideas for a new Identify alternative concepts or existing products on the market for the new idea to be compared. STEP THREE Rate concepts against each other and tally the results. Have a meeting around the top ones. STEP FOUR Select one or more of the best concepts to be further developed.

Idea Evaluation NAME / TITLE OF IDEA Consulting process improvement TYPE OF INNOVATION Radical innovation Routine innovation Improving innovation DESCRIPTION Consulting service of supply chain related problems in the market BENEFITS / ADVANTAGES Quality service within a specific time limit , ensuring low cost OBJECTIVES Optimal outcome for both parties and their mutual growth in the future RISKS Unstable business environment and low cost outsourcing opportunity Feasibility of the idea Very High Market potential High Medium Low Very Low Necessary investments Very High Medium Low Very Low High Medium Low Very Low Complements strategy Medium Conclusion Potential business idea which is timely for the market Low Very High Overall evaluation Very High

Innovation Strategy - Lifecycle REVENUE R ev en e lin ec ue sd gr ow th le Sa IDEA TIME Definition Phase Development Phase Market Preparation Introduction Growth Maturity MARKET LAUNCH INNOVATION CYCLE MARKET CYCLE Decay

Project Planning Gantt Chart JAN Affiliate Marketing FEB APR MAR Market Research Improve Ticket System Managed Information Usage metrics Discovery Empower Teams Organize focus group HR planning OCT SEPT 30% 30% Value critical success factors 30% Performance procurement 30% 3 rd Integration 30% 30% Business cycle sensitive analysis Automatic HR Planning process 30% Help Platform 30% Executive Dashboard 30% DEC 30% Redundancy and Failover 30% Salesforce Procurement NOV V 1. 3. 2 Release Finance reform Website Launch Infrastructure 30% Exhibitions Website Rebuild AUG SSL Certifies SSO/SAML Validation JULY 99% ISO Certifications Email Campaign Sponsorship JUN MAY 30%

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