Managing Innovation Strategy 1 Innovation Types Product Innovation

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Managing Innovation Strategy 1

Managing Innovation Strategy 1

Innovation Types Product Innovation Process Innovation Strategy Innovation 2

Innovation Types Product Innovation Process Innovation Strategy Innovation 2

Product Innovation The process of bringing to life a new product/service to solve the

Product Innovation The process of bringing to life a new product/service to solve the customer's problem benefits 3

Process Innovation Process innovations increase bottom-line profitability, reduce costs, raise productivity, and increase employee

Process Innovation Process innovations increase bottom-line profitability, reduce costs, raise productivity, and increase employee job satisfaction. The customer also benefits from this type of innovation by virtue of a stronger, more consistent product or service value delivery. 4

Strategy Innovation Strategy innovation is about challenging existing industry methods of creating customer value

Strategy Innovation Strategy innovation is about challenging existing industry methods of creating customer value in order to meet newly emerging customer needs, additional value, and create new markets and new customer groups for the sponsoring company. 5

Innovation Levels Incremental Innovation Substantial Innovation Breakthrough Innovation 6

Innovation Levels Incremental Innovation Substantial Innovation Breakthrough Innovation 6

Mc. Donald’s Innovation INNOVATION Product Process Strategy Breakthrough Big Mac Franchisee Global Regulations of

Mc. Donald’s Innovation INNOVATION Product Process Strategy Breakthrough Big Mac Franchisee Global Regulations of Expansion Quality Substantial Value Meals Hamburger University Opening for Breakfast Incremental Green New French Milkshakes Fry Cookers for St. Pat’s Day Boston Markets Acquisition 7

Innovation Model 1: The Suggestion System Model 2: Continuous Improvement Teams Model 3: New

Innovation Model 1: The Suggestion System Model 2: Continuous Improvement Teams Model 3: New Venture Teams Model 4: The Incubator Lab Model 5: Innovation Teams 8

Model 1 : The Suggestion System Suggestion programs provide employees an organized system through

Model 1 : The Suggestion System Suggestion programs provide employees an organized system through which to submit ideas and to have those ideas considered by a panel of dispassionate reviewers, who accept or reject them depending on pre-established criteria from management. 9

Model 2: Continuous Improvement Teams • Unlike suggestion programs that focus on motivating individual

Model 2: Continuous Improvement Teams • Unlike suggestion programs that focus on motivating individual contributors to come forward with their ideas, Continuous Improvement Model systems rely on team collaboration. 10

Model 2: Continuous Improvement Teams • Sometimes called Kaizen Teams, (kaizen is the Japanese

Model 2: Continuous Improvement Teams • Sometimes called Kaizen Teams, (kaizen is the Japanese word for continuous improvement), they mostly focus on incremental, rather than substantial or breakthrough process on product improvements. 11

Model 2: Continuous Improvement Teams • Nevertheless, when these seemingly small, continuous tweaks produced

Model 2: Continuous Improvement Teams • Nevertheless, when these seemingly small, continuous tweaks produced by firm's rank and file workers are added up, they can be substantial in their bottomline impact. 12

Model 4: New Venture Teams • The goal of the New Venture Team Model

Model 4: New Venture Teams • The goal of the New Venture Team Model is decidedly not cost-saving ideas, not incremental improvements, and not process innovations. • Rather, the goal is more apt to be surfacing (and funding) unconventional product, service, or strategy ideas that have the potential to be breakthroughs. 13

Model 5: The Incubator Lab • The Incubator Model of Idea Management gained popularity

Model 5: The Incubator Lab • The Incubator Model of Idea Management gained popularity along side the dot-corn bubble of the late 1990 s and lost favor just as fast. 14

Model 5: The Incubator Lab • Beneath the hype, the basic idea of incubators

Model 5: The Incubator Lab • Beneath the hype, the basic idea of incubators was not too different from the skunkworks approach pioneered by Lockheed during World War II to rapidly develop and launch new aircraft by forming small, dedicated teams separate from the bureaucracy. 15

The gist of this approach is to set up a company-wide network of people

The gist of this approach is to set up a company-wide network of people with demonstrated skills in innovation and Model 7: give them very clear marching orders: Innovation Go out and find some new ideas that Teams have promise. 16

Innovation Strategy • Scan and monitor the sources of innovation opportunity. • Create a

Innovation Strategy • Scan and monitor the sources of innovation opportunity. • Create a personal future-scan system. • Integrate future scanning with your company's idea management system. 17

Innovation Strategy • Assault industry assumptions. • Broaden your company's vision. • Strategize your

Innovation Strategy • Assault industry assumptions. • Broaden your company's vision. • Strategize your place in the first mover, fast follower race. 18

Producing Innovative Products • Study previous breakthrough products. • Focus relentlessly on value creation

Producing Innovative Products • Study previous breakthrough products. • Focus relentlessly on value creation throughout the development process. • Design and implement a new product development process. 19

Producing Innovative Products • Use a learning strategy for more radical ideas. • Use

Producing Innovative Products • Use a learning strategy for more radical ideas. • Use cross-functional teams. • Use rapid prototyping. 20

Source of Reference: Robert B. Tucker, Driving Growth Through Innovation, Innovation Berrett-Koehler Publishers. 21

Source of Reference: Robert B. Tucker, Driving Growth Through Innovation, Innovation Berrett-Koehler Publishers. 21