Brainmates - Innovation - Briefly Explained

Innovation Explained

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CEO’s want it

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Strategist write about it

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Marketers talk about it

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Product Managers

strive to deliver it

What is IT?

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‘IT’ is

Innovation

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But….

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Only 9 – 10 % of public and private companies in America engaged in product or service innovation in 2010.

9 Creative Intelligence: Harnessing the Power to Create, Connect and Inspire,

Bruce Nussbaum , 2013

What is innovation?

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Innovation is about …

Solving existing problems

in a new way…

…that is significantly better / faster / cheaper than the previous solutions.

Innovation creates new

customer value.

Innovation delivers

business value.

Innovation is great

product management.

There are many definitions of innovation

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According to Scott Anthony ...

“Innovation is something

different that has impact.”

The Little Black Book of Innovation: How it Works, How to Do It.

Scott Anthony, 2012

According to Terwiesch & Ulrich ...

“Innovation is a new match

between a need and a

solution.”

Innovation Tournaments: Creating and Selecting Exceptional Opportunities

TERWIESCH, C., & ULRICH, K. T, 2009

According to Jamie Notter ...

“Innovation is change that

unlocks value.”

What is Innovation? http://jamienotter.com/2012/09/what-is-innovation/

Jamie Notter, 2012

http://jamienotter.com/2012/09/what-is-innovation/






According to Larry Keeley ...

“Innovation is the creation

of a viable new offering.”

Ten Types of Innovation

Larry Keeley et al, 2012

According to Jim Andrew ...

“Innovation is about

making money.”

Payback, Reaping the Rewards of Innovation

Jim Andrew, Harvard Organisation Review 2007

At its core

The aim of innovation is to

create significantly more

value.

Types of innovation

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Greg Satell talks of… 4 types of

innovation

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Breakthrough

Innovation

Sustaining

Innovation

Research and

Development

Disruptive

Innovation

4 Types of Innovation, Digital Tonto

Greg Satell, 2012

Breakthrough innovation

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Breakthrough

Innovation: The problem is well defined

but the domain experts are

unclear how to proceed

Sustaining Innovation

Research and Development

Disruptive Innovation


Greg Satell, 2012

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Not Well Defined Well Defined

Solution Definition

Sustaining innovation

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Breakthrough Innovation

Sustaining

Innovation: The problem is well defined

and the domain experts

know how to proceed.




Greg Satell, 2012

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Solution Definition

Disruptive innovation

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Breakthrough Innovation Sustaining Innovation


Disruptive

Innovation: The problem is unclear but

the domain experts have the

knowledge and skills to

proceed.


Greg Satell, 2012

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Solution Definition

Research and development

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Breakthrough Innovation Sustaining Innovation

Research and

Development: Both the problem and the

solution are unclear.



Greg Satell, 2012

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Solution Definition

So who’s doing what?

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Breakthrough

Innovation

Samsung 5G

Network

Sustaining Innovation

Apple iPhone 5

Research and

Development

3M


Moven Bank

Why innovate?

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To grow with purpose

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To extend the product lifecycle

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To stay relevant in competitive markets

Where can we innovate?

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1. The product

Create outstanding

features for existing

products or develop

brand new products.

But don’t just stop at the product!

As products mature it

becomes increasingly

difficult to continue to

innovate the product.

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2. Revenue model

Find new ways to price

the product and to

extract value form the

customer.

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3. Service delivery

Find new ways to

support the customer

before, during and or

after the sales process.

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4. Customer engagement

Find new ways to

delight the customer

during every interaction

with the company.

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5. Business process

Find new ways to

significantly improve the

way the people in the

company go about

doing their work.

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6. Supplier relationships

Find new ways to

engage with suppliers or

to engage with different

types of suppliers

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7. Channel to market

Find new ways to

send the

company’s offering

to market

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There are many other

areas to innovate.

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Importantly, the more areas the

company innovates, the more

money it stands to make.

What can product managers do to

innovate?

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1. Determine if Product Managers

should be delivering innovation

• Have a conversation with your Product Management teams about delivering

customer value.

• As a Product Management team, are you sustaining your products on a day

to day basis?

• Or, do you want to significantly increase value to existing and or new

markets?

• You can’t innovate if the Product Management do not agree that delivering

significant increases in customer value is part of their role.

• If the answer is a resounding yes, then get cracking.

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2. Review current Product Management

practices

• Understand if the current Product Management practices delivers significantly

more customer value over time.

• If not, determine why not?

• Are there other teams tasked with delivering customer value?

• Where can Product Management practices change or improve to

increase customer value?

• If yes, what are the results?

• Are the results satisfactory to achieve business growth?

• Are the practices repeatable?

• Do your current Product Management practices need innovating?

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3. Set the innovation agenda

• Discuss the type of innovation the Product Management team shall undertake.

• Understanding the type of innovation you want to undertake is important

because each type of innovation requires a different approach.

• For example there are some types of innovation such as R&D that the

Product Management team is not set up to deliver.

• Determine the area of focus: product, service, customer engagement or other.

• Determine if the right skill sets, resources are available in the Product

Management team to innovate.

• Set some measureable goals.

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4. Get support

• Once the Product Management team has an innovation agenda, spread the word

and communicate the agenda.

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5. Be disciplined

• Keep at it.

• Innovation is like staying fit. It requires regular effort and attention. Nobody

gets fit after just one gym session.

• Work with your team to schedule the time to make innovation a priority.

Brainmates applies a repeatable Product Delivery Framework that embraces innovation.

Connect with Brainmates

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