NABC Value Propositions - Practice of Innovation
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The way we work is our most important innovation 1 Copyright 2016 Practice of Innovation Curtis R. Carlson Not to be copied or distributed in any form without written permission PoI NABC Value Propositions © Curtis Carlson, Ph.D. Founder and CEO, Practice of Innovation President and CEO, SRI International 1998-2014 May 12-13, 2016
Transcript of NABC Value Propositions - Practice of Innovation
The way we work is our most important innovation
1 Copyright 2016 Practice of Innovation Curtis R. Carlson Not to be copied or distributed in any form without written permission PoI
NABC Value Propositions
©
Curtis Carlson, Ph.D. Founder and CEO, Practice of Innovation
President and CEO, SRI International 1998-2014 May 12-13, 2016
Copyright 2016 The Practice of Innovation Curtis R. Carlson Not to be copied or distributed in any form without written permission PoI
Three Essential Concepts
1. Important market and societal needs 2. Value-creation playbook, including
NABC value propositions 3. Recurring team feedback process
If these elements are not in place, at best the results will be episodic
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Value-Creation Playbook
� Copyright 2016 Practice of Innovation Not to be distributed in any form without written permission from C Carlson 1
Copyright 2016 The Practice of Innovation Curtis R. Carlson Not to be copied or distributed in any form without written permission PoI3
Useful Definitions of Innovation
Creation and delivery of new customer value in the marketplace with a sustainable business model
Creation and delivery of surprising new knowledge with sustainable value for society
E = mc 2
Copyright 2016 Practice of Innovation Curtis R. Carlson Not to be copied or distributed in any form without written permission PoI
R&D & concept
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Most Failures Start at the StartCo
st
Design Dev’t Production
Most Failures
< 20% of R&D has any value for stakeholders
NO VALUE PROPOSITION
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Value Creation is a Learning Process
Time
2
Value
3
R&D 1
Important need
Sustainable impact
Value creation
Innovation
Start over
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Definition of Customer Value
Value = Customer benefits Customer costs
Benefits & costs as perceived by the customer—not us
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Approach
ImportantNeed
Benefits/costs
Competition or alternatives
NABC Value Propositions ©
PoI Copyright 2016 Practice of Innovation Curtis R. Carlson Not to be copied or distributed in any form without written permission PoI
The ObjectiveAddress an important customer and market
Need with a new, compelling, and defensible
Approach, including a business model to provide superior
Benefits/costs when compared to the
Competition and/or alternatives
Successful value propositions are: • Quantitative: bigger, better, faster are not sufficient • Easy to understand and remember
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N A B/$C
The Most Common Failure
>95% of presentations are like this
Copyright 2016 Practice of Innovation Curtis R. Carlson Not to be copied or distributed in any form without written permission PoI
An Everyday ExampleI understand that you have not eaten in 6 hours (Need). Let’s go upstairs to the company restaurant (Approach). It is close, its food is rated excellent, it cost less than $5 for lunch, and it is quiet so we can continue our discussion (Benefits/costs) rather than spending 20 minutes going downtown to the Rusty Scupper, which will end up taking 2 hours, is noisy, and will cost 5x as much (Competition/alternative).
• Who is the customer in this example? • What might they say in return? • Remember: only your customer defines your value
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DARPA: Best Gov’t Model
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• Focus on the fundamentals • Criteria same as NABC • Important DoD Need • Compelling hypothesis for the Approach • Paradigm shifting (10x) Benefits/costs • Than the Competition
GPS
Internet
Computer Personal Assistant
Autonomous vehicles
Copyright 2016 Practice of Innovation Curtis R. Carlson Not to be copied or distributed in any form without written permission PoI
CALO R&D
project
Example: Siri
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NABC Value Propositions
Copyright 2015 The Practice of Innovation Curtis R. Carlson Not to be copied or distributed in any form without written permission Copyright 2016 Practice of Innovation Curtis R. Carlson Not to be copied or distributed in any form without written permission PoI28
Importance of NABC• Focuses everyone on creating value • Applies to every position and project • Simple • Fundamental • Effective and efficient
Value-Creation Playbook
An action plan for the systematic creation of new, breakthrough innovations
� Copyright 2016 Practice of Innovation Not to be distributed in any form without written permission from C Carlson 1
Copyright 2016 Practice of Innovation Curtis R. Carlson Not to be copied or distributed in any form without written permission PoI14
N A B/$C
Often the Best Start
Customers Capabilities
Competition
White space &
Beachhead
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Value-Creation Forums
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• Recurring, multidisciplinary, and facilitated meetings • 3-5 teams, 2-10 minute NABCs with feedback • Risk-reduction, golden nuggets, “bring-it-to-life”
©
Copyright 2015 The Practice of Innovation Curtis R. Carlson Not to be copied or distributed in any form without written permission Copyright 2016 Practice of Innovation Curtis R. Carlson Not to be copied or distributed in any form without written permission PoI28
Key Insights• The few factors that have prevented a solution before • Your working hypotheses describe how you
will address these key insights • Examples
• Augmented mobility • Robotic hand
Customers Capabilities
Competition
White space &
Beachhead
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Example: Augmented Mobility
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4. Solution: wearable pants
2. Key insight: exoskeletons are heavy, restraining,
and power hungry
3. Working hypothesis
1. Important need
1 Copyright 2016 Practice of Innovation Curtis R. Carlson Not to be copied or distributed in any form without written permission PoI1 Copyright 2016 Practice of Innovation Curtis R. Carlson Not to be copied or distributed in any form without written permission PoI
Bring It to Life Making it real and visceral
Copyright 2015 The Practice of Innovation Curtis R. Carlson Not to be copied or distributed in any form without written permission PoI Copyright 2016 Practice of Innovation Curtis R. Carlson Not to be copied or distributed in any form without written permission
How High-Value Innovations Develop
Important opportunity
Cust
omer
Valu
e
TimeStart
Initial target
Interesting problem
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End result
Value creation
Copyright 2016 The Practice of Innovation Curtis R. Carlson Not to be copied or distributed in any form without written permission PoI
Three Essential Concepts
1. Important market and societal needs 2. Value-creation playbook, including
NABC value propositions 3. Recurring team feedback process
If these elements are not in place, at best the results will be episodic
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Value-Creation Playbook
� Copyright 2016 Practice of Innovation Not to be distributed in any form without written permission from C Carlson 1
Curtis R. Carlson, Ph.D. Founder and CEO
Practice of Innovation 2 Portola Valley CA 94028
650 529 1815 [email protected]
The way we work is our most important innovation
Copyright 2015 The Practice of Innovation Curtis R. Carlson Not to be copied or distributed in any form without written permission PoI Copyright 2016 Practice of Innovation Curtis R. Carlson Not to be copied or distributed in any form without written permission
Thank You
©
Curtis R. Carlson, Ph.D. Founder and CEO Practice of Innovation, LLC
[email protected] 650 796 5964
May 12-13, 2016
