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MANAGING 4 I N N O V A T I O N

MANAGING 4 I N N O V A T I O N. Greg Fisher. W H A T ?. W H Y ?. H O W ?. W H A T ?. What is innovation?. Innovation is the process of turning opportunity into new ideas and putting those into widely used practice – Tidd, Bessant & Pravitt – Managing Innovation (2001)

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MANAGING 4 I N N O V A T I O N

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  1. MANAGING 4 INNOVATION Greg Fisher

  2. WHAT? WHY? HOW?

  3. WHAT?

  4. What is innovation? Innovation is the process of turning opportunity into new ideas and putting those into widely used practice – Tidd, Bessant & Pravitt – Managing Innovation (2001) Innovation is the means by which entrepreneurs exploit change as an opportunity for a different business or service – Peter Druker – Innovation and Entrepreneurship (1985) Innovation is the successful exploitation of new ideas – UK DTI Innovation Unit

  5. What is innovation? Exploitation Opportunity Idea = Innovation + +

  6. Product Innovation Improving the features of a product or creating new products

  7. Process Innovation Improving or changing the process by which a product or service is produced or delivered

  8. Business Concept Innovation Radically reconceiving products and services, not just developing new products / services Redefining market space Redrawing industry boundaries

  9. WHY?

  10. Encyclopaedia Britannica’s 225 year track record of success was destroyed in: • 24 months • 5 years • 10 years • 25 years

  11. Encyclopaedia Britannica’s 225 year track record of success was destroyed in: • 24 months • 5 years • 10 years • 25 years

  12. What has more computing power? • Dell 400 Mhz Pentium III desktop PC • Apollo 11 mission control computer • Sony Playstation

  13. What has more computing power? • Dell 400 Mhz Pentium III desktop PC • Apollo 11 mission control computer • Sony Playstation

  14. It took the telephone 40 years to penetrate 10 million homes. How long did it take the Netscape browser? • 18 months • 5 years • 10 years

  15. It took the telephone 40 years to penetrate 10 million homes. How long did it take the Netscape browser? • 18 months • 5 years • 10 years

  16. How many people use the internet in China? • 50 million • 200 million • 300 million

  17. How many people use the internet in China? • 50 million • 200 million • 300 million

  18. Value of Yahoo!’s offer to buy Facebook.com from the 22 year old founder, Mark Zuckerberg • $100 million • $1 billion • $500 million

  19. Value of Yahoo!’s offer to buy Facebook.com from the 22 year old founder, Mark Zuckerberg • $100 million • $1 billion • $500 million

  20. 3 billion people live in Asia. What proportion of the population is < 25 years old? • 20% • 35% • 50%

  21. 3 billion people live in Asia. What proportion of the population is < 25 years old? • 20% • 35% • 50%

  22. The cost of hiring an English speaking PhD chemist in India is: • R65,000 pa • R150,000 pa • R350,000 pa

  23. The cost of hiring an English speaking PhD chemist in India is: • R65,000 pa • R150,000 pa • R350,000 pa

  24. The average consumer in the developed world is hit with how many marketing messages every day? • 500 • 2500 • 4500

  25. The average consumer in the developed world is hit with how many marketing messages every day? • 500 • 2500 • 4500

  26. General Motors makes more money from? • Selling cars • Selling technology • Lending customers money to buy its cars

  27. General Motors makes more money from? • Selling cars • Selling technology • Lending customers money to buy its cars

  28. Number of Apple iPods sold to date? • 10 million • 35 million • 100 million

  29. Number of Apple iPods sold to date? • 10 million • 35 million • 100 million

  30. Google’s value at IPO, 6 years after the business was founded? • 32 billion • 20 billion • 12 billion

  31. Google’s value at IPO, 6 years after the business was founded? • 32 billion • 20 billion • 12 billion

  32. HOW?

  33. 4 businesses 4 case studies 4 management philosophies 4 innovation models

  34. Observe Brainstorm Prototype Implement Methodical Innovation

  35. Observe IDEO’s cognitive psychologists, anthropologists, and sociologists team up with corporate clients to understand the consumer experience

  36. Ideo

  37. Brainstorm An intense, idea-generating session analyzing data gathered by observing people. Each lasts no more than an hour. Rules of brainstorming are strict and are stenciled on the walls.

  38. Ideo

  39. Prototype Mocking up working models helps everyone visualize possible solutions and speeds up decision-making and innovation.

  40. Ideo

  41. Implement Bring IDEO’s strong engineering, design, and social-science capabilities to bear when actually creating a product or service.

  42. Process to drive innovation • Fun environment • Diverse teams • Encourage failure Application Methodical Innovation

  43. Facts about P&G 167-year-old business $50 billion in sales 300 brands 160 Countries 13 brands in excess of $1 billion

  44. P&G History of Innovations How do they keep this going?

  45. P&G Response = R&D • R&D Spend – $1.6 billion • 7,200-strong R&D staff • Over 1000 PhD’s But still not getting the innovation they want?

  46. [Research & Development] Open Innovation R&D C&D [Connect & Develop]

  47. Source: P&G Connect and Develop Booklet: http://pg.t2h.yet2.com/t2h/page/homepage

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