SRI It ti l’I nternational’s Five Disciplines of...
Transcript of SRI It ti l’I nternational’s Five Disciplines of...
SRI I t ti l’SRI International’s
Five Disciplines of Innovation
AlbertaInnovatesJune 15‐16 2011
© 2011 SRI International – Not to be copied or distributed without SRI’s written permission
June 15‐16, 2011Edmonton ‐ Calgary
Executive Summary
• Customer needs are the focal point of every activity in organizations (& Alliances) that:g ( )– Provide products & services
– Develop technology
C d t h– Conduct research
– Offer education & training
– Represent members
• Who are your customers?
• What are their needs?
© 2011 SRI International – Not to be copied or distributed without SRI’s written permission
SRI’s Definition of InnovationEnsure everyone is working in the same directionEnsure everyone is working in the same direction
I iInnovationThe creation and delivery of new customer value in theymarketplace with a sustainable value for the enterprise
© 2011 SRI International – Not to be copied or distributed without SRI’s written permission
The Goal is InnovationAll the other elements are inputsAll the other elements are inputs
InnovationThe creation and delivery of new customer value in themarketplace with a sustainable value for the enterprise
Inputs Output
Foresight • Legal • Clusters • Taxes • R&DCulture • Education Location • Business skillsTechnical Design • Manufacturing • ValueCreation Management • Organization • Creativity
Foresight • Legal • Clusters • Taxes • R&DCulture • Education Location • Business skillsTechnical Design • Manufacturing • ValueCreation Management • Organization • Creativity InnovationInnovationCreation Management Organization CreativityEntrepreneurship • Regulations • TeamworkGlobalization • Intellectual property
Creation Management Organization CreativityEntrepreneurship • Regulations • TeamworkGlobalization • Intellectual property
© 2011 SRI International – Not to be copied or distributed without SRI’s written permission
SRI International Overview
“SRI International is the “Soul of Silicon Valley”
Business
© 2011 SRI International – Not to be copied or distributed without SRI’s written permission
Business Week
SRI Is Devoted to InnovationSRI i ld l d i hi h l i iSRI is a world‐leader at creating new, high‐value innovations
• Founded by Stanford University in 1946 as the Stanford Research Institute• A nonprofit corporation• Independent in 1970• SRI Sarnoff was acquired in 1987
SRI headquarters, Menlo Park, California • 2,100+ staff members combined• Over half with advanced degrees• More than 20 locations worldwide
$• Consolidated revenues: ~$0.5 billion
SRI Sarnoff, Princeton, New Jersey
© 2011 SRI International – Not to be copied or distributed without SRI’s written permission
SRI Washington, D.C.SRI State College, Pennsylvania SRI Tokyo, JapanSRI Harrisonburg, Virginia SRI St. Petersburg, Florida
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Our Focus AreasMultidisciplinary teams in all major technology areasMultidisciplinary teams in all major technology areas
Information Technology
Engineering Health, Education,
and Economic Policyand Systems
and Economic Policy
SRI’s Five Disciplines of Innovation™
Advanced Materials, Microsystems, and Nanotechnology
Biotechnology
© 2011 SRI International – Not to be copied or distributed without SRI’s written permission
Nanotechnology
A Few of SRI’s InnovationsHundreds of billions of dollars in economic value createdHundreds of billions of dollars in economic value created
First Arpanet logon.com .org .gov HDTV, color TV, … Computer mouse Address readingp Address reading
Electronic Banking Color film reproduction
Your Personal AssistantYour Personal Assistant
Cognitive Assistant that Learns and
Cognitive Assistant that Learns and
Electroactive Polymers
© 2011 SRI International – Not to be copied or distributed without SRI’s written permission
Low cost solar-grade siliconsilicon
“Siri is one of the top-10 new companies most likely to change the way we live and work.” MIT Technology Review 2009
“Siri is one of the top-10 new companies most likely to change the way we live and work.” MIT Technology Review 2009
Organizes Organizes
CALO: award-winning team
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SRI Technology Spin‐off Ventures Growth opportunities that bring innovations to marketGrowth opportunities that bring innovations to market
Publicly Traded
Speech recognitionSurgical robotics
Information Technology
Speech recognitionfor customer service DNA testing services*
Customer service tools*Digital TV technologies*
Digital TV equipment* Wireless mesh networksElectronic and digital signature solutions
Flat-panel displays*
Panoramic image editing software*
LCD technology* Iris biometric identification*
Secure content distribution*
Materials Bio/Medical
Video enhancement systems
New paradigm for the consumer internet
Enterprise social media technology
Drug dispensing system* Drug discoveryDigital color printing applications*
Super-bright LED light engines*
Electroactive polymers Metal “print and plate”manufacturing process
© 2011 SRI International – Not to be copied or distributed without SRI’s written permission
Anti-counterfeiting systems
(formerly Rosedale Medical)Glucose monitoring system Disposable hearing aid*Optical network
components
*Acquired or merged
Next-generation fuel cells**
SRI Innovation Partnership ProgramsDeveloping and sharing innovation best practices with leading companiesDeveloping and sharing innovation best practices with leading companies, universities, and governments
© 2011 SRI International – Not to be copied or distributed without SRI’s written permission
“Build a better mousetrap, and the worldwill beat a path to your door.” Ralph Waldo Emerson
Mousetrap p y p
The U.S. Patent Office has issued almost 6,000 mousetrap patents, however…l t h h d lonly two have had real success
© 2011 SRI International – Not to be copied or distributed without SRI’s written permission
5 Disciplines of Innovation5 Disciplines of Innovation Overview of the process
© 2011 SRI International – Not to be copied or distributed without SRI’s written permission
SRI’s Five Disciplines of InnovationS f l i ti i kill d ti l k l dSuccessful innovation requires many skills and essential knowledge
X X X X
Innovation Champions
Value Creation
Innovation Teams
Organizational Alignment
Important Customer andMarket Needs
= Market Success
All the disciplines must be in place for systematic success
© 2011 SRI International – Not to be copied or distributed without SRI’s written permission
Your Innovation Score
50%Important Customer Needs
Your WorkSRI Enterprise Innovation Index
60%Innovation Champions60%Value Creation
p
60%Organizational Alignment70%Innovation Teams60%Innovation Champions
7.56%Total Innovative Capability60%Organizational Alignment
© 2011 SRI International – Not to be copied or distributed without SRI’s written permission
Exercise: Important Versus Interesting
• In SRI’s workshops with thousands of industryIn SRI s workshops with thousands of industry, government, and university participants, what % of them walked in with a clear definition of their
( )customer(s)’ important, unmet needs?
© 2011 SRI International – Not to be copied or distributed without SRI’s written permission
Exercise: Important Versus Interesting
• What % of them walked in with a clear definitionWhat % of them walked in with a clear definition of their customer(s)’ needs?
NOT MANY! Maybe 10‐20%
© 2011 SRI International – Not to be copied or distributed without SRI’s written permission
How Innovations DevelopNEVER a straight line pathNEVER a straight line path
Important problem
Customer value
Initial targetResult
Interesting problem
TimeStart
© 2011 SRI International – Not to be copied or distributed without SRI’s written permission
Discipline #2:Value CreationOverview of the heart of the 5DoI
“Every organization needs one core competence, innovation”
© 2011 SRI International – Not to be copied or distributed without SRI’s written permission
Peter Drucker
Shared Language and Concepts
Do your teams have:Do your teams have:• Shared language and innovation concepts to think and talk about value?
•Metrics for determining value?
© 2011 SRI International – Not to be copied or distributed without SRI’s written permission
What Is Value Creation and Why Is It Important?C i th t f thi d ftCompanies that focus on this succeed more often
• A toolbox of best practices • Focus on customer needs both internal and external• Focus on customer needs, both internal and external• Common language and set of tools for value creation• Processes to rapidly develop customer value
• Enterprises with these practices are few and impressive• Market leaders, e.g., Medtronics, IDEO, Baldor, P&G, . . • These practices are a major source of competitive advantageThese practices are a major source of competitive advantage
• Value creation is important to staff• Unique skills that make them more valuable in all business settings• Better able to partner with the best colleagues and organizations
• The concepts seem “simple” but that does not mean they are easy to do – they are not!
© 2011 SRI International – Not to be copied or distributed without SRI’s written permission
What Is Customer or Stakeholder Value?Most important definition in any businessMost important definition in any business
= BenefitsCustomer = CostsValue
© 2011 SRI International – Not to be copied or distributed without SRI’s written permission
Value PropositionsTh d t i t t d fi iti i t iThe second most important definition in any enterprise
NeedImportantCustomer
ApproachCustomer
Benefits
Cper cost
Competition and alternatives
© 2011 SRI International – Not to be copied or distributed without SRI’s written permission
Value Creation Forums or Watering Holes Critical for rapidly addressing all the business issuesCritical for rapidly addressing all the business issues
• Regular meetings: Every 2‐6 weeks to develop new customer value in a market segmentvalue in a market segment
• Purpose: To collect ideas, break down organizational barriers, learn, provide resources
• Culture: Open with a commitment to continuous improvement: Iterate, iterate, iterate …
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SRI’s Process For Creating New VenturesA well understood series of steps and success criteriaA well understood series of steps and success criteria
New VentureNew Venture
nVention Value Creation Forum
• New company launch• A‐round funding• Ongoing R&D
Venture Concept Commercialization
Board• External VC review• Detailed innovation plan • Strategic partners
• Champion & Team• NABC Quantitative Value Proposition Technology Golden Nugget
• Value Creation Forums
• Market analysis‐ Space and opportunity‐ Business model and positioning‐ Investments needed
• Product concept
Strategic partners • Developing reference customers
© 2011 SRI International – Not to be copied or distributed without SRI’s written permission
• Funding to develop the concept
p• Initial innovation plan• Entrepreneur recruitment (EIR)• Seed funding