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Innovate the Way You Innovate stephenshapiro.com @stephenshapiro

Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership

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Page 1: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership

Innovate the Way You Innovate

stephenshapiro.com @stephenshapiro

Page 2: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership

HOW FAST IS YOUR BRAIN?

Page 3: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership

Expertise is the enemy of innovation

@stephenshapiro

Page 4: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership
Page 5: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership
Page 6: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership

ASK BETTER QUESTIONS

FIND BETTER SOLUTIONS

Page 7: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership

ASK BETTER QUESTIONS

FIND BETTER SOLUTIONS

Page 8: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership
Page 9: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership

Asking for ideas…

is a bad idea

@stephenshapiro

Page 10: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership
Page 11: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership
Page 12: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership
Page 13: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership
Page 14: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership

1. Boaty McBoatface - 124K 2. Poppy-Mai - 34K 3. Henry Worsley - 15K 4. It’s bloody cold here 11K 5. David Attenborough - 10K 6. Usain Boat - 9K 7. Boatimus Prime - 8K 8. Katherine Giles - 7K 9. Catalina de Aragon - 6K 10. I like big boats & I cannot lie - 6K

Page 15: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership

How do we improve the business?

What new products should we create?

How do we increase revenues?

What new technologies should we invest in?

Page 16: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership

The Goldilocks Principle

Page 17: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership
Page 18: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership
Page 19: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership
Page 20: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership
Page 21: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership
Page 22: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership
Page 23: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership
Page 24: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership

If I had an hour to save the world, I would spend 59 minutes defining the problem… and one minute finding solutions.

Albert Einstein

Page 25: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership
Page 26: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership

Don’t think outside the box; find a better box

@stephenshapiro

Page 27: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership

Num

ber o

f ide

as

Relative time

1

3

2

4

3,000 raw ideas

300 ideas submitted125 small projects

9 early stage developments4 major developments

1.7 launches1 success

Ideas to Success

Page 28: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership

Idea-Driven Innovation

Wasted investment. Low value ideas.

Wasted time. Scrambling to find sponsors, owners, and funding

Wasted energy. Sorting through the duds

Low ROI on innovation

Page 29: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership

Challenge-Centered InnovationStart with an important and differentiating challenge that is reframed multiple times

Clear objective criteria

Resources in place before investing

Look for solutions everywhere inside and out

Results in 10X innovation ROI improvement

Page 30: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership

ASK BETTER QUESTIONS

FIND BETTER SOLUTIONS

Page 31: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership
Page 32: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership
Page 33: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership

Steve Jobs

Creativity is just having enough dots to connect…

The reason creative people are so is that they’ve had more experiences or have thought more about their experiences.

Page 34: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership
Page 35: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership
Page 36: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership
Page 37: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership
Page 38: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership

When members of a team are

cut from the same cloth, you don’t see many failures,

and you don’t see many extraordinary innovations

Page 39: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership
Page 40: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership

Try purposeful tangents

@stephenshapiro

Page 41: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership

For each of our failures, we had

spreadsheets that looked awesome.

Scott Cook, Intuit

Page 42: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership
Page 43: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership

Innovate the Way You Innovate

stephenshapiro.com @stephenshapiro

Page 44: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership

22LensesforReframingChallenges–byStephenShapiro

© CopyrightStephenShapiroEnterprisesLLC2017.AllRightsReserved.DoNotDuplicate.www.StephenShapiro.com

Successfulinnovationnecessitatesreframingchallengestatementsmultipletimes.Changingthequestionchangesthepotentialsolutions.Usetheselensestohelpyou(re)defineyourproblem.þ Leverage:Whatistheleveragepoint?

Whatistheonefactorthatwillhavethegreatestimpact?

Example:Insteadofimprovingtheeducationsystem(whichisbroad),agovernmentagencyfocusedonincreasingparentalinvolvement(theleveragepoint).

þ Abstraction:Isthischallengeoverly

specific,implyingaparticularsolutionordomainofexpertise?Ifso,“abstractit”toahigherlevel.

Example:TheExxonValdezcleanupproblemwassolvedwhentheystoppedfocusingonfreezingoil(toospecific)andsolvedacommonfluiddynamicsproblemcalledviscousshearing.

þ Flip:Canyouturntheproblemupsidedownbyimprovingadifferentfactor?

Example:Airportsincreasedpassengersatisfactionby,insteadofspeedingupthedeliveryofbags,theysloweddownthepassengersthusreducingwaittime.

þ Analogy:Whoelsehassolvedasimilarproblem?Whatisthisproblemlike?

Example:Thegaspipelineindustryfoundasolutiontofixingcrackedpipelinesbystudyingthecardiovascularsystem’scoagulationmechanisms.

þ CorrectProblem:Areyousureyouare

solvingtherightproblem?Ifyouarerelyingonsurveys,youmaygetinaccurateinformation.

Example:Scientistsspuntheirwheelsdevelopinganeffectivealcohol-freemouthwash(itwasmorecomplexthantheythought)whencustomersreallywantedamouthwashthatdidn’tburn(aneasiersolution).

þ Result:Doesyourchallengeimplya

particularsolution?Ifso,whatisthedesiredoutcome?Solveforthat

Example:Insteadofdevelopingazerogravitylaundrysystem(acomplexsolution),NASAlookedforwaystogetclothescleanandkeepclothesclean.

þ WordSubstitution:Changingasingle

wordcanchangehowpeopleperceivepotentialsolutions.

Example:Insteadofgetting“moresales,”lookathowyoumightget“morecustomers”or“moreprofit”or“moreprofitablecustomers.”

þ Pain:Doesthechallengesolveapainoreliminatethethreatofloss?Remember,threatsdriveaction;opportunitiesdrivecreativity.

Example:Moremenareinterestedinlosingtheirgutfastthantheyareingettingsixpackabs,becausemostmenhaveguts(thepain).

þ Postpone:Canpostponingadecision

increaseflexibility?

Example:Insteadofpre-mixedcansofpaint,hardwarestoresnowmixthecolorsinthestoreyieldinglessstockontheshelvesandBenettondyesgray,full-madeclothesatthelastminute.

þ Predict:Canpredictingincreasespeed

andefficiency?Example:Duringpeaktimes,McDonaldsusespre-madefoodskeptunderheatlampstoincreasespeedforcommonlyordereditems(vsmake-to-orderduringslowertimes).

þ Observation:Areyousolvingtheright

problem?Areyourelyingtoomuchondata?Consideringobservationtouncoverhiddenneeds.

Example:Newwashingmachinedesignsweredevelopedbyvisitinghomesofcustomers.

Page 45: Innovate the Way You Innovate · was always about ownership (e.g., buying CDs or MP3s). But subscription streaming services such as Apple Music and Spotify give access without ownership

22LensesforReframingChallenges–byStephenShapiro

© CopyrightStephenShapiroEnterprisesLLC2017.AllRightsReserved.DoNotDuplicate.www.StephenShapiro.com

þ Simplification:Insteadofaddingfeatures,whatfeaturescanyoueliminate?Canyousimplifytheexperiencetoincreaseaccessibility?

Example:In2008,theNintendoWiioutsoldPlayStationandXboxcombinedthroughtheirsimpleinterface.

þ Stretch:Isyourchallengecriteria

“stretch”enough?

Example:Ifyouaskfor5%improvement,yougetincrementalthinking.Butifyouaskfor50%or100%improvement,theoldmodelswon’twork.

þ Positive:Don’ttrytocorrectaproblem

orasanegative.Negativesentencesrequiremorecognitivepowerandslowdownyourthoughtprocess.Worditoptimistically.

Example:Insteadof“Howmightbeimprovemorale?”ask,“Howmightweget100%employeeengagement?”

þ Conflicts:Haveyoudesignedyourchallengetoallowfor(andembrace)conflictingattributes?

Example:Carsrequirebothgreaterfuelefficiencyandaquieterride.However,theextraweightnecessaryforreducingnoisealsoreducesfuelefficiency.Potentialsolutionsrequireunconventionalthinking.

þ Opposite:Askwhatwillgiveyoutheoppositeofthesolutionyouwant.Whateveranswersyouget,considerthereversetobegoodsolutions.

Example:Insteadofincreasingsales,findwaystodecreasethem.Thendotheopposite.

þ Deconstruct:Isthischallengetoo

abstract,allowingfortoomanypotentialsolutions?Ifso,breakitdownintomultiplechallengesandask:“Whatarepartsofthis?”“Whatareexamplesofthis?”

Example:Insteadofaskinghowtoattractnewcustomers(overlyabstract),breakitdownintodifferentacquisitionchannels/strategies.

þ Task:Sometimesfocusingonimproving

atask(insteadoftheoutcome)canyieldbetterresults.

Example:Insteadof“improvingproductivity”(toobroad)lookto“makethejobsofemployeeseasier”(thetask).

þ Engaging:Reframethechallengeina

waythatstimulatesthemindsofsolvers.Focusonpositiveoutcomesratherthanfixingproblems.

Example:Insteadoflookingto“increasesales,”askforwaysto“wowcustomers.”

þ Access:Inmanysituations,consumerswantaccessratherthanownership.

Example:Inthepast,themusicindustrywasalwaysaboutownership(e.g.,buyingCDsorMP3s).ButsubscriptionstreamingservicessuchasAppleMusicandSpotifygiveaccesswithoutownership.

þ Emotion:Don’tjustaskquestionsthatareaboutfact,data,andresults(e.g.,increasecustomersatisfaction).Alsoaskquestionsthatareaboutcreatingemotionalresponses.

Example:Howmightwecreatecustomerevangelists?Howmightwemakepeoplesmilewhentheythinkofourcompany?Howmightwehelppeoplefeelathomewheninourstores?Howmightweeliminatetheannoyancesthatupsetcustomers?

þ Differentiation:Isyourchallengefocusedonadifferentiator?Ifnotyoumaybedissipatingyourenergiesonlow-priorityopportunities.

Example:USAA,thefinancialservicesfirmthatservesthemilitaryisconsistently#1or#2inservice.Why?Theyonlyinnovateonopportunitiesthatmakethelivesoftheirmembers(customer)better.