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Showing posts with label Innovation. Show all posts
Showing posts with label Innovation. Show all posts

Innovation Impact Roadmap



For 20+ years, I taught in the University of Arizona entrepreneurship program which, at one point, was ranked #1 in the world by several major business publications. 

On the whiteboard in my office, I drew a roadmap of the new venture creation process. It was, in essence, the syllabus for our entrepreneurship program in graphical form. [I was the keeper of the whiteboard, not necessarily the author of all that was there! I had some pretty wise and wonderful UA collaborators as well as entrepreneurship gurus from around the world from which the information was collected.]

Students and colleagues at UA would ask if they could take a photo of the whiteboard. Of course, yes! And I did the same. I took a photo, but ... I wanted to add a bit more here and there. And then I got carried away!! So ... the diagram you see today is the result.

One of the struggles we encountered, in teaching entrepreneurship concepts and building new ventures, is that the process is not particularly time-linear. It is often iterative, a back-and-forth process. Hence, a roadmap outlines the elements that need to be addressed, but not necessarily a hard path in doing so. At some point, the venture team should visit all the "attractions" on the map, but the order of the trip may vary depending on the nature of the venture.

The "main highway" is the mission statement, highlighted in yellow.

Essentially,this roadmap for innovation commercialization is an entrepreneurship checklist, ... the key elements that should be considered and addressed when putting together a plan for a new business venture.

PDF, JPEG, and PNG versions are available here: InnovationImpactRoadmap.com

--Jim

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Innovation Hot Spots

While innovation is often associated with new products, new gizmogadgets, a broader perspective shows innovation occurring in many areas of a business and often has little or nothing to do with products.

Here are some key areas of innovation opportunity for a business venture ...
  1. Products (yes, still high on the list, of course!)
  2. Services
  3. Processes
  4. Business methods
  5. Business model
  6. Revenue model
  7. Positioning (relative to the competition)
  8. Paradigm (a combination of several innovation areas)
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Google Design Principles

  1. Focus on people - their lives, their work, their dreams.
  2. Every millisecond counts.
  3. Simplicity is powerful.
  4. Engage beginners and attract experts.
  5. Dare to innovate.
  6. Design for the world.
  7. Plan for today's and tomorrow's business.
  8. Delight the eye without distracting the mind.
  9. Be worthy of people's trust.
  10. Add a human touch.
[Attribution: Sue Factor, User Experience Group, Google]

Catergories of Innovation

Innovation has a revolutionary reputation, but an evolutionary reality!  

An innovation is (simply) Something New and Better ...
  • Something: a product, service, process, methodology, or market positioning. 
  • New: didn't exist before in this market space.
  • Better: desirable benefits, a lower price, or both ... compared to the available alternatives.
That's not to imply that the innovation process is simple, by no means!  It can be quite complex, even if the final result doesn't necessarily reflect such.

Some types of innovation are pretty simple, pretty straight-forward. A new hot dog stand on a corner can be an example of "positioning" innovation ... simple, yet it does provide something new and better.

Other innovations are indeed quite complex and required high levels of intellect, resources, skills, education, and expertise.

Here are some general categories of innovation:

1. Incremental … basic design concepts are reinforced, linkages between modules are unchanged
2. Component or modular … basic design concepts are overturned, linkages between modules are unchanged
3. Architectural … linkages between modules are changed, basic design concepts are reinforced
4. Radical … basic design concepts are overturned, linkages between modules are changed
5. Disruptive ... technological discontinuity
6. Application ... technology application creates new market ... killer application
7. Product ... improved performance, dominant design
8. Process ... more efficient and/or effective processes
9. Positioning ... establishing a venture in a new space
10. Experiential ... improved customer experience
11. Marketing ... improved marketing relationships
12. Business model ... reframe the value proposition or value chain
13. Structural ... responds to structural changes in the industry
14. Service … give the same products but with much better service
15. Paradigm ... good luck! If we want a paradigm shift, we'll need a solid combination of several simpler innovations!

Leonardo da Vinci's Seven Principles

  1. Curiosit√° ... an insatiably curious approach to life and an unrelenting quest for continuous learning.
  2. Dimostrazione ... a commitment to test knowledge through experience, persistance, and a willingness to learn from mistakes.
  3. Sensazione ... the continual refinement of the senses, especially sight, as the means to enliven experience.
  4. Sfumato ... literally "going up in smoke" ... a willingness to embrace ambiguity, paradox, and uncertainty.
  5. Arte/Scienza ... the development of the balance between science and art, logic and imagination ... "Whole-Brain" thinking.
  6. Corporalita ... the cultivation of grace, ambidexterity, fitness, and poise.
  7. Connessione ... a recognition of and appreciation for the interconnectedness of all things and phenomena ... systems thinking.
[Thank you, Michael J. Gelb]

Potential Sources of Differentiation

Every successful business is differentiated from its competition ... it could be very unique and significant, or it may be seemingly small and minor. But customers choose one enterprise over another for a reason. Following are some potential sources of value and differentiation to use as a guide when creating a competitive advantage strategy ...

ambiance ... branding ... business model ... community service ... contrived deterrence ... convenience ... copyrights ... cost advantages ... cost advantages independent of scale ... customer relations ... customer responsiveness ... customer service ... delivery ... distinct unique competencies ... economies of scale ... effective sales methods ... efficiency ... experience of doing business ... features ... functionality ... government regulation ... high quality ... image ... innovation ... intellectual property ... limited resources ... location ... low-cost ... manufacturing innovation ... market positioning ... market segmentation ... operational methods ... patents ... performance ... price ... product design ... product differentiation ... product innovation ... product selection ... product-line breadth ... quality ... rarity ... relationships ... reliability ... reputation ... selection ... service ... shopping experience ... supply chain relations ... switching costs ... trademarks ... trade names ... unique capabilities ... value

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SCAMPER!

To create a new product, service, or process, try applying "SCAMPER" to an old one. SCAMPER is an acronym for ...
  1. Substitute ... What can you substitute? What can be used instead? Who else instead? What other ingredients? Other material? Other process? Other power? Other place? Other approach? Other sounds? Other forces? ... "Instead of ... I can ..."
  2. Combine ... What can you combine or bring together somehow? How about a blend, an alloy, an assortment, an ensemble? Combine units? Combine purposes? Combine appeals? Combine ideas? ... "I can bring together ... and ... to ..."
  3. Adapt ... What can you adapt for use as a solution? What else is like this? What other idea does this suggest? Does past offer a parallel? What could I copy? Who could I emulate? ... "I can adapt ... in this way ... to ..."
  4. Modify, minimize, magnify ... Can you change the item in some way? Change meaning, color, motion, sound, smell, form, shape? Other changes? ... Also: 'Minify': What can you remove? Smaller? Condensed? Miniature? Lower? Shorter? Lighter? Omit? Streamline? Split up? Understate? ... Also: Magnify: What can you add? More time? Greater frequency? Stronger? Higher? Longer? Thicker? Extra value? Plus ingredient? Duplicate? Multiply? Exaggerate? ... "I can modify/minimize/magnify.. in this way ... to ..
  5. Put to another use, re-use ... How can you put the thing to different or other uses? New ways to use as is? Other uses if it is modified? ... "I can re-use ... in this way ... by ..."
  6. Eliminate, elaborate ... What can you eliminate? Remove something? Eliminate waste? Reduce time? Reduce effort? Cut costs? ... "I can eliminate ... by ..."
  7. Rearrange, reverse ... What can be rearranged in some way? Interchange components? Other pattern? Other layout? Other sequence? Transpose cause and effect? Change pace? Change schedule? ... "I can rearrange ... like this ... such that ..."
[Thank you, Robert Eberle and Alex Osborn]

Elements of Successful Innovations

  1. Relative advantage ... the perceived superiority of an innovation over the current product or solution it would replace. This advantage can take the form of economic benefits to the adopter or better performance.
  2. Compatibility ... the perceived fit of an innovation with a potential adopter’s exiting value, know-how, experiences, and practices.
  3. Complexity ... the extent to which an innovation is perceived to be difficult to understand or use The higher the degree of perceived complexity, the slower the rate of adoption.
  4. Trialability ... the extent to which a potential adopter can experience or experiment with the innovation before adopting it The greater the trialability, the higher the rate of adoption
  5. Observability ... the extent to which the adoption and benefits of an innovation are visible to others within the population adopters. The greater the visibility, the higher the rate of adoption by those who follow.
  6. Functional performance ... an evaluation of the performance of the basic function
  7. Acquisition cost ... initial total cost
  8. Ease of use ... use factors
  9. Operating cost ... cost per unit of service provided
  10. Reliability ... service needs and useful lifetime
  11. Serviceability ... time and cost to restore a failed device to service
  12. Compatibility ... fit with other devices within the system

5k

Phases of Innovation

  1. Preparation ... focus on the problem or opportunity, and who it affects
  2. Exploration ... identify current solutions, alternatives, and substitutes
  3. Stimulation ... use creativity techniques to trigger new ideas, concepts, and solutions
  4. Incubation ... give the new ideas some time and thought
  5. Illumination ... identify new ideas, concepts, and solutions
  6. Selection ... establish and use clear criteria for selecting the "best" concept
  7. Planning ... decide how to implement the concept
  8. Implementation ... put the plan and concept to work
  9. Evaluation ... determine if the new concept is working
  10. Iteration ... apply incremental improvement to the concept, or start over
5K

Tips for Building a Good Corporate Culture

  1. Give every member of your organization a chance to dream, and tap into the creativity those dreams embody.
  2. Stand firm on your beliefs and principles.
  3. Treat your customers like guests.
  4. Support, empower, and reward employees.
  5. Build long-term relationships with key suppliers and partners.
  6. Dare to take calculated risks in order to bring innovative ideas to fruition.
  7. Train extensively and constantly reinforce the company's culture.
  8. Align long-term vision with short-term execution.
  9. Use the storyboarding technique to solve planning and communication problems.
  10. Pay close attention to detail.
[Thank you, Walt Disney]

5K

Sources of Innovation Opportunity

  1. The unexpected success, failure, or outside event
  2. The incongruity between reality as it actually is and how reality is perceived
  3. Innovation based on process need
  4. Changes in industry structure or market structure that catches everyone unaware
  5. Demographic (population) changes
  6. Changes in perception, mood, and meaning
  7. New knowledge, both scientific and nonscientific
[Thank you, Peter F. Drucker]

Brainstorming!

A good way to have a good idea is to have lots of ideas from which to choose! Brainstorming is a Creativity Supertool!
  1. Brainstorming is a team sport ... support your team members!
  2. No criticism ... no "devil's advocates" allowed!
  3. Anything goes … wild, crazy, impractical, ingenious ideas encouraged!
  4. Go for quantity, not quality, of ideas!
  5. All ideas encouraged!
  6. Piggyback, improve, combine ideas ... be an "angel advocate"!
  7. Record all ideas so nothing gets lost!
  8. Filter ideas later, not during the brainstorming session!
  9. Set a time limit for the session, then stick to it!
Variation ... brainwriting: the general process is that, in a group, ideas are recorded by each individual who thought of them ... they are then passed on to the next person who uses them as a trigger for their own ideas.

Good Books for Creativity, Innovation, and Entrepreneurship

  • A Whack on the Side of the Head (von Oech) 
  • Cracking Creativity (Michalko) 
  • Creativity in Business (Ray/Myers) 
  • Crossing the Chasm (Moore)
  • Democratizing Innovation (von Hipppel) 
  • Driving Growth Through Innovation (Tucker) 
  • Entrepreneurship ... A Real-World Approach (Abrams)
  • Founders at Work (Livingston) 
  • How to Get Ideas (Foster) 
  • How to Think Like Leonardo da Vinci (Gelb) 
  • Innovation and Entrepreneurship (Drucker) 
  • Innovator's Dilemma (Christensen) 
  • Made to Stick (Heath) 
  • The Design of Everyday Things (Norman)
  • The Game Changer (Lafley/Charan)
  • The Innovator's Solution: Creating and Sustaining Successful Growth (Christensen, Raynor) 
  • The Innovator's Toolkit: 50+ Techniques (Silverstein, Samuel, DeCarlo) 
  • The Medici Effect: Breakthrough Insights at the Intersection of Ideas, Concepts, and Cultures (Johansson) 
  • Thinking, Fast and Slow (Kahneman)
  • Weird Ideas That Work (Sutton) 
  • What a Great Idea (Thompson)
  • 5280 Tips for Innovators and Entrepreneurs (Jindrick)
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