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May 2011 A FUTURELAB ACTION GUIDE o You Want To Be Innovative? Alain Thys

So you want to be innovative

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  1. 1. Alain ThysSo You Want To Be Innovative?A FUTURELAB ACTION GUIDEMay 2011
  2. 2. FUTURELABSo you want to be innovative?Prelude Chance favours the prepared mind Louis Pasteur
  3. 3. Let us start with a few questions:Why do the space shuttle engines have the diameter they have?3.FUTURELAB
  4. 4. Let us start with a few questions:OK, thats pragmatic, but why is the tunnel that width?4.FUTURELAB
  5. 5. Let us start with a few questions:That makes sense, but who decided on the width of tracks?5.FUTURELAB
  6. 6. Let us start with a few questions:Remarkable, but why choose this base for trams?6.FUTURELAB
  7. 7. Let us start with a few questions:OK, but then why make the axes this wide?7.FUTURELAB
  8. 8. Let us start with a few questions:So if the ruts lead to the cart, what caused the ruts?8.FUTURELAB
  9. 9. Let us start with a few questions:Standardised imperial chariots? Where did Ceasar get that idea?9.FUTURELAB
  10. 10. Let us start with a few questions:OK, but some Egyptian must have had an original idea!2000 B.C.10.FUTURELAB
  11. 11. Let us start with a few questions:And so we find the answer: its all because of a horses ass. 2x11.FUTURELAB
  12. 12. Orthodoxies drive our behaviourWe copy and build on what we know to work12.FUTURELAB
  13. 13. Orthodoxies drive our behaviourIn fact, its in our genesHUMANS COPY13.... behaviour ... ... ways of working ... ... processes .... ... organisational structures ...FUTURELAB
  14. 14. Orthodoxies drive our behaviourIt is the secret to human success and achievementReading and printAgriculture14.Industrial progressAppsFUTURELAB
  15. 15. Orthodoxies drive our behaviourBut there is also a dark side15.FUTURELAB
  16. 16. Orthodoxies drive our behaviourThey can fail us if the world around us changes Music industryEducationPersonal shame (1994/5)Blockbuster CDs rule.No cheating.Browsing is for geeks.Illustration by ~Si2. Print can be purchased at www.deviantart.com16.FUTURELAB
  17. 17. Orthodoxies drive our behaviourThey can be based on wrong assumptions Our actions have always been driven by assumptions which everyone knows to be true.It can happen to the best of us:God does not play dice with the universe Albert Einstein on Quantum MechanicsEarth is flat illustration by ~Si2. Print can be purchased at www.deviantart.com17.FUTURELAB
  18. 18. Orthodoxies drive our behaviourWorst of all, they can close our mind to other options 18.Weve always done it that way This is best practice Thats what everyone does Our world-view is rightFUTURELAB
  19. 19. FUTURELABSo you want to be innovative?Part 1: What orthodoxy does to innovation Tradition means giving votes to the most obscure of all classes, our ancestors. G.K. Chesterton
  20. 20. What orthodoxy does to innovation.No, Im not going to talk about orthodoxy versus creativityThink out of the box! Wear a green hat! Find your inner lightbulb!20.FUTURELAB
  21. 21. What orthodoxy does to innovation.I am going to talk about the orthodoxy of innovation itself Why we make it harder than it needs to be?21.FUTURELAB
  22. 22. Time for an innovation renaissanceWhich would be the easiest route to cross this desert? Over the mountains?Through the valleys?22.FUTURELAB
  23. 23. Time for an innovation renaissanceWeird, most corporate innovators seem to disagree.AIRLINESBANKSCOMPUTERSUTILITIESPROCESSED FOODPHARMASource: The Doblin Group, www.doblin.com23.FUTURELAB
  24. 24. Time for an innovation renaissanceWeird, most corporate innovators seem to disagree.Why?24.FUTURELAB
  25. 25. Time for an innovation renaissanceInnovation is driven by industrial mass production orthodoxiesIndustrial revolution Mass-production logicMore volume Better & more features Lower costsInvention mindset25.FUTURELAB
  26. 26. Time for an innovation renaissanceThis worked fine as long as we had room in our life for more26.FUTURELAB
  27. 27. Time for an innovation renaissanceBut our world has changed the tub is full27.FUTURELAB
  28. 28. Time for an innovation renaissanceMany of our innovation efforts are wasted Product parityCategory overloadHypercompetitionToo much choice actually reduces the preparedness of customers to make a purchase. Barry Schwartz28.FUTURELAB
  29. 29. Time for an innovation renaissanceWe consider massive failure as the norm (orthodoxy?)50-90% percent of innovation projects [are] judged to have made little or no contribution to Wikipedia, 2011 organizational goals29.FUTURELAB
  30. 30. Time for an innovation renaissanceOur response: innovating even more30.FUTURELAB
  31. 31. Time for an innovation renaissanceAccepting collateral damage as it occurs 31.Demotivation Stress Wasted resources Lost competitive position ComplexityFUTURELAB
  32. 32. FUTURELABSo you want to be innovative?Part 2: Time for an innovation renaissance Anything that won't sell, I don't want to invent. Its sale is proof of utility, and utility is success. Thomas A. Edison
  33. 33. Time for an innovation renaissanceHow do these guys do it?The industrialists nightmare:I sell overpriced, underspecd computers and people love them.33.I take a traditional industry like finance, travel or telco and slap a red logo on it.FUTURELAB
  34. 34. Time for an innovation renaissanceOn innovation, they lead their people through the valleysExperience innovation Business model innovation Service innovation 34.FUTURELAB
  35. 35. Time for an innovation renaissanceThey have let go of the old world orthodoxiesAge of ScarcityInnovate for: More volume Better & more features Lower costs35.FUTURELAB
  36. 36. Time for an innovation renaissanceThey have recognised we live in a different eraAge of AbundanceIn mature markets Its hard to get double-digit growth from finding new customers.Its much easier to extend the relationship with the customers you already have.36.FUTURELAB
  37. 37. Time for an innovation renaissanceThey innovate for relationshipsEnough to keep things fresh and interesting.37.But not too much.FUTURELAB
  38. 38. Time for an innovation renaissanceOr in business terms A compass for your considerationAge of AbundanceInnovate for: Stakeholder Lifetime Value Better relationships & reputation Lower costs38.FUTURELAB
  39. 39. An innovation renaissanceSome remarkably good practices 39.Hardware Software Infrastructure Hosting Consulting Operations ...One more thingFUTURELAB
  40. 40. Time for an innovation renaissanceA not so best practice Every innovation poses a relationship risk.Innovate to keep your relationships fresh, but dont overdo it.DODONTInnovate for growthRisk relationshipsHow Planta almost lost me ... and still might.40.FUTURELAB
  41. 41. FUTURELABSo you want to be innovative?5 Steps to transform yourself A leader is someone who steps back from the entire system and tries to build a more collaborative, more innovative system that will work over the long term. Robert Reich
  42. 42. 5 Steps to transform yourselfStep 1: Listen, Watch and Learn Take the customer perspective ... all the way.Choice DriversInsightsRecommendation triggersKey AdviceShop your own product. By walking in customers shoes you understand how they see the world.Georges-Edouard Dias SVP, LOral Group42 16/11/2013Obvious? Test yourself: If youre in B2C: when was the last time you really spoke to a consumer? If youre in B2B: how actively do you manage all your stakeholders emotions?FUTURELAB
  43. 43. 5 Steps to transform yourselfStep 1: Listen, Watch and LearnAsset leveraging Bad profits Global inspirationCo-creationFor most of us Innovation is not invention. Most of what you need will exist in some shape or form.43.Internal sensing Market foresightFUTURELAB
  44. 44. 5 Steps to transform yourselfStep 2: Broaden your innovation horizon The Innovation RadarThere are 12-15 types of innovation. Which ones are your competitors missing?Adaptation of The Innovation Radar 2.0 by J.Chen and M.Sawney of Kellogg School of Management, 2008.44.FUTURELAB
  45. 45. 5 Steps to transform yourselfStep 2: Broaden your innovation horizon The Innovation Strategy MatrixHighAreas to keep up or stay aheadLook at the nichesCustomer EngagementDevelop a portfolio of innovation strategies depending on the situation.Opportunities for meaningful differentiationCopy when proven onlyLow Low45.Innovation IntensityHighFUTURELAB
  46. 46. 5 Steps to transform yourselfStep 3: Involve your peopleInnovation is a social, not a personal achievement. It does not belong in a department. 46.Engagement programmes Digital (open) platforms Organisational flexibility Corporate venturing projects Innovation teams ...FUTURELAB
  47. 47. 5 Steps to transform yourselfStep 3: Involve your peopleOnly 5% of your workforce understands your strategy* So how can they innovate upon it? Make sure people understand what you aim to achieve Provide people with the innovation & design knowledge/tools to contribute Build an innovation movement that rewards initiative rather than ask for instant ROI* Based on Norton, D. Aligning your Strategy to the Customer Value Proposition, 13/9/2005. 47 16/11/2013FUTURELAB
  48. 48. 5 Steps to transform yourselfStep 4: Make sure you got it rightFailing fast is no excuse for being sloppy. Implement a simple system that allows people to evaluate their own ideas and forces cross-functional co-operation.48FUTURELAB
  49. 49. 5 Steps to transform yourselfStep 4: Make sure you got it right Simplify, so your business is able to execute. Then simplify again. The Laws of Simplicity John Maeda1. 2. 3. 4. 5. 6. 7. 8. 9. 10.49 16/11/2013Reduce Organise Time Learn Differences Context Emotion Trust Failure The OneFood for thought: Can you appify your business?FUTURELAB
  50. 50. 5 Steps to transform yourselfStep 5: Go to market to enhance relationships Experience The experience IS the product. Peter MerholzDelightLoyaltyProfitHow do your innovations strengthen your existing customer relationships?Racing to market is no excuse for being sloppy. Align your business as if it were the only innovation youll ever launch.50FUTURELAB
  51. 51. FUTURELABSo you want to be innovative?Conclusion Finally, in conclusion, let me just say this. Peter Sellers
  52. 52. CONCLUSIONBreak innovations orthodoxies. STEP 1 Listen, watch and learn. STEP 2 Broaden your innovation horizon.STEP 3 Involve your people. STEP 4 Make sure you got it right.STEP 5 : Go to market to enhance existing relationships.52 16/11/2013FUTURELAB
  53. 53. ConclusionFocus on the valleys that lead to customer success You can innovate less Because no one is there, you make your life easier.53.Innovations have more meaning With the same effort you can differentiate yourself more.FUTURELAB
  54. 54. ConclusionIn SummaryInnovate LessBut with More meaning.54.FUTURELAB
  55. 55. Alain Thys Email: [email protected] Twitter: @FLB_alainthys55.FUTURELAB