Innovation in Action 8-9 nov 2016 · Larry Keeley, ”Ten types of Innovation”, 2013 4 Innovation...
Transcript of Innovation in Action 8-9 nov 2016 · Larry Keeley, ”Ten types of Innovation”, 2013 4 Innovation...
Innovation in Action
8-9 Nov 2016
10 Types / Areas of innovation
Agenda
10:15 - 10:40 Intro seminar: 10 Areas of innovation
10.40 - 11.10 Group WS 1: Current situation. Which areas of
innovation are used in the sample companies?
11:10 - 11:20 Reflection: Current situation
11.20 - 11:30 Energy power break
11:30 - 12:20 Group WS 2: Tomorrow’s situation: What could
be achieved with a combination of other
innovation areas for a chosen company
12:20 - 12.35 Reflection: Your 3 most important challenges on
this topic and how to get there
12:35 – 12:45 10 Areas in Business Modeling
10. Customer
engagement
how you foster compelling interactions(How do you interact with the customer?)
8. Channel
how you connect your offerings to your customers and users (How do you get your offer out to be sold?)
9. Brand
how you represent your offerings and business (What does your brand stand for and what value does it have?)
3. Structure
how you organize and align your talent and assets (What are the internal structural benefits)
4. Process
how you use superior methods to do your work (What are the internal process benefits?)
6. Product system
how you create complementary products and services (What better extras do you have?)
7. Service
how you support and amplify the value of your offerings (What services do you offer?)
5. Product performance
how you develop distinguishing features and functionality (What are you better at?)
2. Network
how you connect with others to create value (Who are your partners?)
1. Profit model
how you make money (How you charge)
Larry Keeley, ”Ten types of Innovation”, 2013
Configuration Experience
Channel Brand Customer engagement
ProcessStructure
Offering
Product performance
Product system
ServiceProfit model
Network
Innovation can be divided into 10 different innovation areas
Larry Keeley, ”Ten types of Innovation”, 20134
Innovation Areas
Vo
lu
me
o
f in
no
va
tio
n e
ffo
rts
US
A 1
99
4-2
00
4
40 %
30 %
20 %
10 %
0 %
…even if product innovation is the most common area to invest in…
4
Configuration Experience
Channel Brand Customer engagement
ProcessStructure
Offering
Product performance
Product system
ServiceProfit model
Network
Innovation AreasLarry Keeley, Innovation Convergence, Minneapolis Nov 2004 + his book ”Ten types of Innovation”, 2013
Cu
mu
la
tive
va
lu
e c
re
ate
d fro
m in
no
va
tio
n
US
A 1
99
4-2
00
4
156 X 73 X
27 X
32 X
1 X
6 X
11 X
21 X
12 X
49 X
40 %
30 %
20 %
10 %
0 %
…The ROI is not from where you believe!
Configuration Experience
Channel Brand Customer engagement
ProcessStructure
Offering
Product performance
Product system
ServiceProfit model
Network
Combine!
It pays off to combine Innovation Areas
0
20
40
60
80
100
120
140
160
180
0 1 2 3 4 5 6 7 8 9 10
Average Innovators Top Innovators
Larry Keeley, ”Ten types of Innovation”, 2013
Number of companies among the 500+ companies studied
Number of Innovation Areas used
Combine!
Configuration Experience
Channel Brand Customer engagement
ProcessStructure
Offering
Product performance
Product system
ServiceProfit model
Network
Configuration Experience
Channel Brand Customer engagement
ProcessStructure
Offering
Product performance
Product system
ServiceProfit model
Network
Pixar studios, Disney
Configuration Experience
Channel Brand Customer engagement
ProcessStructure
Offering
Product performance
Product system
ServiceProfit model
Network
Innovation
teams
Configuration Experience
Channel Brand Customer engagement
ProcessStructure
Offering
Product performance
Product system
ServiceProfit model
Network
Configuration Experience
Channel Brand Customer engagement
ProcessStructure
Offering
Product performance
Product system
ServiceProfit model
Network
Configuration Experience
Channel Brand Customer engagement
ProcessStructure
Offering
Product performance
Product system
ServiceProfit model
Network
Configuration Experience
Channel Brand Customer engagement
ProcessStructure
Offering
Product performance
Product system
ServiceProfit model
Network
30 days
storage
Configuration Experience
Channel Brand Customer engagement
ProcessStructure
Offering
Product performance
Product system
ServiceProfit model
Network
WS 1 – Where are these companies innovating? In what areas?
CompanyLogo 3
Blah blah
WS 1
Configuration Experience
Channel Brand Customer engagement
ProcessStructure
Offering
Product performance
Product system
ServiceProfit model
Network
WS 2 – Where could our chosen company innovate? Combine with existing area!
The 80 innovation area triggers - What if you…?Configuration ExperienceOffering
Channel Brand Customer engagement
ProcessStructure Product performance
Product system
ServiceProfit model
Network
How to bring it all out there?
What brand efforts are needed?
How to engage more with users
& customers?
What process is
unique
What is the best internal
structure?
What properties in your product are most significant?
What “Extras” do you have?
What services do you add on?
How do you want to make
money?
Who are the best ones to partner
with?
Main Question:
…by-passed your
distributor?
…created an experiment
brand?
…used your customers as sales-people?
…only produced on
demand?
…made your company fast
and agile?
….chose to be the best only in 2-3
features?
…totally changed the packaging?
…included your things in a service?
…only got paid when it
worked?
…chose your worst enemy to work
with?
What if you….:
…only had internet sales?
…co-branded
with Dior ?
…made the consumers
develop for you?
…shared your production
with others?
…erased all titles in your company?
…swopped from functional to
emotional focus?.
…had a fancy dispenser?
…made users serve each
other?
…rented it out instead of one-off payment?
….shared all risks & rewards with your suppliers?
What if you….:
…had a one month free test period?
…bought another brand?
…had repeated user seminars?
… outsourced production ?
…let the organograms
emerge?
….had 3 levels of performance?
…used personalized
features
…used retired
customers?
…got somebody else to pay for it?
…got the State to support you?
.
What if you….:
…used a 3rd
party to supply?
…licensed another brand?
…gathered all your customers
bi-annually?
…used reverse
innovation?
…had cellular autonomous
teams?
…took away your most prominent
feature?
…fitted your product to an iPhone app?
…hired a 3rd
party for service jobs?
…had variable price for vari-able seasons
….made every customer to a
partner?
What if you….:
…used Tupper -ware style
parties?
…associated your brand to status?
…let some serve other customers?
…decreased your material
cost 50%?
…totally decentralized all decisions?
…had only 1 prime and 1 cheap
product
…upgraded your product
for free?
…had no service at
all?
…used the freemium principles
…Only worked as an intermediary?
What if you….:
…had your owns shops?
…sold your brand for
other uses?
…created a user community on
Internet?
…mass-customized production?
…took away all bonus
systems?
…focused on design & looks?
…relied fully on main-tenance?
…let Apps do the service?
…made most money on
accessories?
….let your customer stock
your goods?
What if you….:
…only sold to a limited few?
…had 1 brand for
everything?
…supported a user community
on the net?
…only build to order?
…shared employees
with others?
…made the ugliest product on the
market?
…created a platform for many uses?
…also serviced your competitors
…charged by the hour?
…teamed up with a famous company
in another branch.
What if you….:
…only used viral
marketing?
…changed your brand looks daily?
…used volunteers as designers?
…only made 3 products?
…used people working from their homes?
…could change the performance
remotely?
…built on a patented solution?
…only sold jobs-to-be-
done?
…earned money on banking?
…only had temporary partners?
What if you….:
WS 2
Configuration Experience
Channel Brand Customer engagement
ProcessStructure
Offering
Product performance
Product system
ServiceProfit model
Network
Your 3 most important challenges on this topic and how to get there for YOUR COMPANY
Would your company benefit from expanding the innovation areas? If yes - What hinders you?
1. Blah blah blah
2. Blahablahblah!
3. Blahblahblahblahblah
Innovation AreasLarry Keeley, Innovation Convergence, Minneapolis Nov 2004 + his book ”Ten types of Innovation”, 2013
Cu
mu
la
tive
va
lu
e c
re
ate
d fro
m in
no
va
tio
n
US
A 1
99
4-2
00
4
156 X 73 X
27 X
32 X
1 X
6 X
11 X
21 X
12 X
49 X
40 %
30 %
20 %
10 %
0 %
Remember – the need to combine areas!
Configuration Experience
Channel Brand Customer engagement
ProcessStructure
Offering
Product performance
Product system
ServiceProfit model
Network
Combine!
20
BusinessModelGeneration.com
Combine!
Process
Service
Process Service
Process
Network
Channel
Brand
Customer engagement
Structure
Product performance
Product system
Service
Profit model
Network
Product performance
Product system
Brand
Structure
Customer engagement
Which of these 12 Business Models do you want to see?
21
Examples from successful combinators
Configuration ExperienceOffering
Channel Brand Customer engagement
ProcessStructure Product performance
Product system
ServiceProfit model
Network
ChannelProduct performance
ServiceProfit model
Channel Brand Customer engagement
Structure Product performance
ServiceProfit model
Network
Brand Customer engagement
ProcessNetwork
ProcessStructureProfit model
Network
Channel Brand Customer engagement
Structure Product performance
Product system
ServiceProfit model
Network
Process Product performance
Product system
Network
Channel BrandProcess Product performance
Product system
Network
Channel Customer engagement
Product system
Network
Channel Brand Customer engagement
ProcessStructure Product performance
Product system
ServiceProfit model
Network
Channel Brand Customer engagement
Product performance
Product system
Service
Channel Brand Customer engagement
Structure Product system
ServiceNetwork
Based on Larry Keeley, ”Ten types of Innovation”, 201334
Combine!
Products & Services – “WHAT”
Improve existing
Cre
ate
&
targ
et
ne
w
Develop
new
Add adjacent
Mark
ets
& C
us
tom
ers
–T
O W
HO
M
Se
rve
ex
isti
ng
En
ter
ad
jac
en
t
Core innovationOptimizing existing
business
Adjacent innovation
Expanding existing business into
something that is “new to the
company”
Transformational innovationCreating business that is new to the branch
we are in
Innovation can be divided into different types…
Monitor, Harvard Business Review, May 2012
Products & Services – “WHAT”
Improve existing
Cre
ate
&
targ
et
ne
w
Develop
new
Add adjacent
Mark
ets
& C
us
tom
ers
–T
O W
HO
M
Se
rve
ex
isti
ng
En
ter
ad
jac
en
t
Core innovationOptimizing existing
business
Adjacent innovation
Expanding existing business into
something that is “new to the
company”
Transformational innovationCreating business that is new to the branch
we are in
Innovation can be divided into different types…
Monitor, Harvard Business Review, May 2012
10. Customer engagement
how you foster compelling interactions
8. Channel
how you connect your offerings to your customers and users
9. Brand
how you represent your offerings and business
3. Structure
how you organize and align your talent and assets
4. Process
how you use superior methods to do your work
6. Product system
how you create complementary products and services
7. Service
how you support and amplify the value of your offerings
5. Product performance
how you develop distinguishing features and functionality
Configuration Experience
Channel Brand Customer engagement
ProcessStructure
Offering
Product performance
Product system
ServiceProfit model
Network
2. Network
how you connect with others to create value
1. Profit model
how you make money
Larry Keeley, ”Ten types of Innovation”, 2013
We have just seen that Innovation can be divided into
different areas
Inspired by Managing your Innovation Portfolio , Harvard Business review May 22, 2012
Products & Services – “WHAT”
Improve existing
Cre
ate
&
targ
et
ne
w
Develop
new
Add adjacent
Mark
ets
& C
us
tom
ers
–T
O W
HO
M
Se
rve
ex
isti
ng
En
ter
ad
jac
en
t
Core innovationOptimizing existing
business
Adjacent innovation
Expanding existing business into
something that is “new to the
company”
Transformational innovationCreating business that is new to the branch
we are in
Innovation can be divided into different types…
Monitor, Harvard Business Review, May 2012
10. Customer engagement
how you foster compelling interactions
8. Channel
how you connect your offerings to your customers and users
9. Brand
how you represent your offerings and business
3. Structure
how you organize and align your talent and assets
4. Process
how you use superior methods to do your work
6. Product system
how you create complementary products and services
7. Service
how you support and amplify the value of your offerings
5. Product performance
how you develop distinguishing features and functionality
Configuration Experience
Channel Brand Customer engagement
ProcessStructure
Offering
Product performance
Product system
ServiceProfit model
Network
2. Network
how you connect with others to create value
1. Profit model
how you make money
Larry Keeley, ”Ten types of Innovation”, 2013
We have just seen that Innovation can be divided into
different areas
Innovation areas – “WHERE”
Cre
ate
&
targ
et
ne
w
Develop new
Mark
ets
& C
us
tom
ers
–th
e “
TO
WH
OM
”
Se
rve
ex
isti
ng
En
ter
ad
jac
en
t
Inspired by Managing your Innovation Portfolio , Harvard Business review May 22, 2012
Combine these Areas with customers
Core BMsOptimizing existing business
models
Adjacent BMs
Expanding from existing business
models into “new to the company”
business models
Transformational BMsCreating business models that are new to
your branch of business
Use existing Renovate the existing
This is
Business
Modeling!
Products & Services – “WHAT”
Improve existing
Cre
ate
&
targ
et
ne
w
Develop
new
Add adjacent
Mark
ets
& C
us
tom
ers
–T
O W
HO
M
Se
rve
ex
isti
ng
En
ter
ad
jac
en
t
Core innovationOptimizing existing
business
Adjacent innovation
Expanding existing business into
something that is “new to the
company”
Transformational innovationCreating business that is new to the branch
we are in
Innovation can be divided into different types…
Monitor, Harvard Business Review, May 2012
10. Customer engagement
how you foster compelling interactions
8. Channel
how you connect your offerings to your customers and users
9. Brand
how you represent your offerings and business
3. Structure
how you organize and align your talent and assets
4. Process
how you use superior methods to do your work
6. Product system
how you create complementary products and services
7. Service
how you support and amplify the value of your offerings
5. Product performance
how you develop distinguishing features and functionality
Configuration Experience
Channel Brand Customer engagement
ProcessStructure
Offering
Product performance
Product system
ServiceProfit model
Network
2. Network
how you connect with others to create value
1. Profit model
how you make money
Larry Keeley, ”Ten types of Innovation”, 2013
We have just seen that Innovation can be divided into
different areas
Innovation areas – “WHERE”
Cre
ate
&
targ
et
ne
w
Develop new
Mark
ets
& C
us
tom
ers
–th
e “
TO
WH
OM
”
Se
rve
ex
isti
ng
En
ter
ad
jac
en
t
Inspired by Managing your Innovation Portfolio , Harvard Business review May 22, 2012
Combine these Areas with customers
Core BMsOptimizing existing business
models
Adjacent BMs
Expanding from existing business
models into “new to the company”
business models
Transformational BMsCreating business models that are new to
your branch of business
Use existing Renovate the existing
This is
Business
Modeling!
This is Business Modeling!This is Business Model Innovation!
Combine these Areas with customers…and combine this further with innovation
Products & Services – “WHAT”
Improve existing
Cre
ate
&
targ
et
ne
w
Develop
new
Add adjacent
Mark
ets
& C
us
tom
ers
–T
O W
HO
M
Se
rve
ex
isti
ng
En
ter
ad
jac
en
t
Core innovationOptimizing existing
business
Adjacent innovation
Expanding existing business into
something that is “new to the
company”
Transformational innovationCreating business that is new to the branch
we are in
Innovation can be divided into different types…
Monitor, Harvard Business Review, May 2012
10. Customer engagement
how you foster compelling interactions
8. Channel
how you connect your offerings to your customers and users
9. Brand
how you represent your offerings and business
3. Structure
how you organize and align your talent and assets
4. Process
how you use superior methods to do your work
6. Product system
how you create complementary products and services
7. Service
how you support and amplify the value of your offerings
5. Product performance
how you develop distinguishing features and functionality
Configuration Experience
Channel Brand Customer engagement
ProcessStructure
Offering
Product performance
Product system
ServiceProfit model
Network
2. Network
how you connect with others to create value
1. Profit model
how you make money
Larry Keeley, ”Ten types of Innovation”, 2013
We have just seen that Innovation can be divided into
different areas
Innovation areas – “WHERE”
Cre
ate
&
targ
et
ne
w
Develop new
Mark
ets
& C
us
tom
ers
–th
e “
TO
WH
OM
”
Se
rve
ex
isti
ng
En
ter
ad
jac
en
t
Inspired by Managing your Innovation Portfolio , Harvard Business review May 22, 2012
Combine these Areas with customers
Core BMsOptimizing existing business
models
Adjacent BMs
Expanding from existing business
models into “new to the company”
business models
Transformational BMsCreating business models that are new to
your branch of business
Use existing Renovate the existing
This is
Business
Modeling!
This is Business Modeling!This is Business Model Innovation!
Combine these Areas with customers…and combine this further with innovation
Business Model Innovation means how you combine
“What”, “To Whom” and “Where”.
Transformational innovation is still possible with
existing customers and existing markets when you
find other areas to innovate within.