INNOVATION:

THE ROAD TO PROSPERITY

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1. Five Definitions; Four Distinct Areas; Five Core Values…

2. Fail Often, Fail Fast, Fail Cheap

3. What An Innovative Culture Looks Like?

4. How To Be More Innovative?

5. How to Measure Innovation?

AGENDA

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FIVE DEFINITIONS…

“Innovation is often given complex definitions. We prefer the

simple one: ‘new ideas that work”– Geoff Mulga

1. The implementation of new processes, products, organizational changes or marketing changes

2. An environment/culture that embraces positive change, creativity and continuous improvement

3. Research and development, new intellectual property (IP), and inventions

4. Staying ahead in the market and being a market leader

5. Solutions that benefit society and societal outcomes (including environmental outcomes)

1. Product innovation: The capacity of a firm to introduce new products and services ahead of

competitors, to anticipate consumer needs or even to create them.

2. Market innovation: The capacity of a firm to decide to change its market, whether it’s

geographically, virtually or creatively.

3. Process innovation: The capacity to change how goods and services are produced and

delivered to reduce cost, improve efficiency and increase convenience for customers.

4. Organizational innovation: The capacity to convert creativity, market and customer

knowledge and technology into marketable innovations.

FOUR DISTINCT AREAS…

Successful innovation happens in four distinct areas:

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1. Curiosity and a natural ability to question the status quo.

2. Risk-taking and a willingness to learn from failure.

3. Openness. Organizations with strong silos tend to be less innovative.

4. Patience, tenacity and the sense of giving an idea a chance to grow.

5. Trust, underpinning the other values.

FIVE CORE VALUES…

Organizations and employees require 5 core values for innovation to occur :

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1. Fail Often - Much of success is just a numbers game. Try more things and you are more likely to find a winner. Innovation is like sales – you never know which idea will be the winner until you try things. A big obstacle for anyone reluctant to try something new is being afraid to fail.

2. Fail Fast - One challenge many companies are faced with is being slow. Many companies suffer from analysis paralysis where often the best choice is to just try it. It is often better to make an imperfect decision quickly than to not make a decision while trying to be perfect. More companies lose from perfection than lose from speed. Being able to fail fast can often mean getting a head start over the competition.

3. Fail Cheap - Of course failures need to be affordable. Be creative with ways of keeping risk low, perhaps you can test a product with a focus group instead of over-producing. Failing cheaply means you can get back on your feet more easily than someone who overextended themselves.

FAIL OFTEN, FAIL FAST, FAIL CHEAP

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1. See innovation as a competency: Innovation is a skill, not a gift. It can be learned by anyone and applied systematic.

2. See innovation as a competitive weapon: Innovative companies use innovation to differentiate themselves

3. See innovation as a process: Innovative companies don’t treat innovation as special, unique activity. They see it instead as an ongoing “stream of effort” along with quality, leadership, productivity, and other imperatives.

4. See innovation as both systematic and opportunistic: The most innovative companies flex between different styles of creating opportunity

WHAT AN INNOVATIVE CULTURE LOOKS LIKE?

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HOW TO BE MORE INNOVATIVE?

1. Choose a focus or strategy

2. Understand the future customer

3. Define a process or methodology

4. Understand your scope and expected deliverables

5. Bridge the gaps

Any company can become more innovative following these steps, through

commitment, clarity, process definition and skill development

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1. Measure Research & Development spending as a percentage of your total sales.

2. Look at your total number of patents filed, pending, awarded and rejected.

3. Track your total R&D head count, hours or days spend.

4. Measure the current year percentage of sales due to new products released in the past year, past three years, and past five years.

5. Count the number of new products released.

HOW TO MEASURE INNOVATION?

5 KPI’S. These metrics should be examined after every New Product Development

cycle so you are clear on your spending and ROI for each product.

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1. Innovation is Everybody Responsibility. Innovation is an Ongoing process

2. Innovation: think big, act small, fail fast and learn rapidly

3. Innovation success is primarily dependent on corporate culture

4. Successful innovation starts with clearly defined strategy. Strategy must be clear, understandable, communicated frequently and consistently at all levels of the organization

5. Want Innovation? Hiring for skills, instead of attitude, changes everything

6. Innovation is a discipline that can (and should) be planned, measured, and managed. If left to chance, it won’t happen.

7. The future belongs to those who innovate, and do so collaboratively

INNOVATION: TAKE-HOME…

REFERENCE LIST: INNOVATION SOURCES

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http://www.innovationexcellence.com/

http://www.15inno.com/

http://www.robertsrulesofinnovation.com/

http://www.innovationmanagement.se/