The Innovator's DNA: Mastering the Five Skills of Disruptive Innovators
Featuring Jeff Dyer, Professor of Strategy at Brigham Young University and Co-author and Founder of The Innovator’s DNA
SEPTEMBER 11, 2014
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SEPTEMBER 11, 2014
Today’s Speaker
Jeff Dyer, Professor of Strategy at Brigham Young University and Co-author and Founder of The Innovator’s DNA
The Innovator's DNA: Mastering the Five Skills of Disruptive Innovators
@HBRExchange | #HBRwebinar
SEPTEMBER 11, 2014
Jeff Dyer, Professor of Strategy at Brigham Young University and Co-author and Founder of The Innovator’s DNA
The Innovator's DNA: Mastering the Five Skills of Disruptive Innovators
SEPTEMBER 11, 2014
Today’s Speaker
TheInnovator’sDNA
JEFF DYERBYU and Wharton
HAL GREGERSENINSEAD
CLAYTON M. CHRISTENSENHarvard Business School
© Copyright 2013 Innovator’s DNA LLC 8
What is innovation?
© Copyright 2013 Innovator’s DNA LLC 9
What is innovation?
Novel and Useful Idea
© Copyright 2013 Innovator’s DNA LLC 10
What is innovation?
Novel and Useful Idea
Successfully Implemented+
© Copyright 2013 Innovator’s DNA LLC 11
What is innovation?
Novel and Useful Idea
Successfully Implemented+ =
innovation
© Copyright 2013 Innovator’s DNA LLC 12
What is innovation?
NewPRODUCT
Novel and Useful Idea
Successfully Implemented+ =
innovation
© Copyright 2013 Innovator’s DNA LLC 13
What is innovation?
NewPRODUCT
NewSERVICE
Novel and Useful Idea
Successfully Implemented+ =
innovation
© Copyright 2013 Innovator’s DNA LLC 14
What is innovation?
NewPRODUCT
NewSERVICE
NewPROCESS
Novel and Useful Idea
Successfully Implemented+ =
innovation
© Copyright 2013 Innovator’s DNA LLC 15
What is innovation?
NewPRODUCT
NewSERVICE
NewPROCESS
NewEXPERIENCE
Novel and Useful Idea
Successfully Implemented+ =
innovation
© Copyright 2013 Innovator’s DNA LLC 16
What is innovation?
NewPRODUCT
NewSERVICE
NewPROCESS
NewEXPERIENCE
NewCHANNEL
Novel and Useful Idea
Successfully Implemented+ =
innovation
© Copyright 2013 Innovator’s DNA LLC 17
What is innovation?
NewPRODUCT
NewSERVICE
NewPROCESS
NewEXPERIENCE
NewCHANNEL
NewMARKETING
Novel and Useful Idea
Successfully Implemented+ =
innovation
© Copyright 2013 Innovator’s DNA LLC 18
What is innovation?
NewPRODUCT
NewSERVICE
NewPROCESS
NewEXPERIENCE
NewCHANNEL
NewMARKETING
New PROFIT FORMULA
Novel and Useful Idea
Successfully Implemented+ =
innovation
19
A GOOD MANAGER HIRES PEOPLE WHO ARE SMARTER THAN HE IS.
The Innovation Challenge
20
A GOOD MANAGER HIRES PEOPLE WHO ARE SMARTER THAN HE IS.
SO…YOUR BOSS IS DUMBER THAN YOU?
The Innovation Challenge
21
A GOOD MANAGER HIRES PEOPLE WHO ARE SMARTER THAN HE IS.
SO…YOUR BOSS IS DUMBER THAN YOU?
AND YOUR BOSS’S BOSS IS DUMBER YET?
The Innovation Challenge
22
A GOOD MANAGER HIRES PEOPLE WHO ARE SMARTER THAN HE IS.
SO…YOUR BOSS IS DUMBER THAN YOU?
AND YOUR BOSS’S BOSS IS DUMBER YET?
ACCORDING TO YOUR THEORY, OUR CEO IS THE DUMBEST PERSON IN THE COMPANY.
The Innovation Challenge
23
A GOOD MANAGER HIRES PEOPLE WHO ARE SMARTER THAN HE IS.
SO…YOUR BOSS IS DUMBER THAN YOU?
AND YOUR BOSS’S BOSS IS DUMBER YET?
ACCORDING TO YOUR THEORY, OUR CEO IS THE DUMBEST PERSON IN THE COMPANY.
UNLESS ALL OF YOU ARE BAD MANAGERS.
The Innovation Challenge
24
A GOOD MANAGER HIRES PEOPLE WHO ARE SMARTER THAN HE IS.
SO…YOUR BOSS IS DUMBER THAN YOU?
AND YOUR BOSS’S BOSS IS DUMBER YET?
ACCORDING TO YOUR THEORY, OUR CEO IS THE DUMBEST PERSON IN THE COMPANY.
UNLESS ALL OF YOU ARE BAD MANAGERS.
TRULY WE ARE DOOMER EITHER WAY.
The Innovation Challenge
25
A GOOD MANAGER HIRES PEOPLE WHO ARE SMARTER THAN HE IS.
SO…YOUR BOSS IS DUMBER THAN YOU?
AND YOUR BOSS’S BOSS IS DUMBER YET?
ACCORDING TO YOUR THEORY, OUR CEO IS THE DUMBEST PERSON IN THE COMPANY.
UNLESS ALL OF YOU ARE BAD MANAGERS.
TRULY WE ARE DOOMER EITHER WAY.
THIS CONCLUDES THE MOTIVATIONAL PART OF OUR MEETING.
The Innovation Challenge
26
A GOOD MANAGER HIRES PEOPLE WHO ARE SMARTER THAN HE IS.
SO…YOUR BOSS IS DUMBER THAN YOU?
AND YOUR BOSS’S BOSS IS DUMBER YET?
ACCORDING TO YOUR THEORY, OUR CEO IS THE DUMBEST PERSON IN THE COMPANY.
UNLESS ALL OF YOU ARE BAD MANAGERS.
TRULY WE ARE DOOMER EITHER WAY.
THIS CONCLUDES THE MOTIVATIONAL PART OF OUR MEETING.
I’D GIVE YOU A HIGH FIVE BUT I DON’T LIKE TO MOVE.
The Innovation Challenge
True or False?
Studies by psychologists show that creativity is largely a genetic endowment where
nature trumps nurture in importance.
28
Why are some more creative?
It’s Genetic.
29
ResearchStudy
Why are some more creative?
Twins:Raised Apart
30
Why are some more creative?
Sometime between the ages of 15‐25 the twins are given intelligence and creativity
tests.
Twins:Raised Apart
31
Why are some more creative?
Sometime between the ages of 15‐25 the twins are given intelligence and creativity
tests.
Twins:Raised Apart
32
Why are some more creative?
Results:
Sometime between the ages of 15‐25 the twins are given intelligence and creativity
tests.
Twins:Raised Apart
33
Why are some more creative?
Results:IQ tests reveal that roughly 80% of general intelligence
is genetic.
Sometime between the ages of 15‐25 the twins are given intelligence and creativity
tests.
Twins:Raised Apart
34
Why are some more creative?
Results:IQ tests reveal that roughly 80% of general intelligence
is genetic.
Creativity tests reveal that roughly 33% of creativity performance is genetic
35
It’s Not JustGenetic
So….
Why are some more creative?
36
It’s Not JustGenetic
Nurture
Nature
So….
Why are some more creative?
You have more creative capacity
than you think.
Disruptive Innovators
How does Jeff Bezos Innovate?
Disruptive Innovators
How do they get new ideas
Disruptive Innovators
How do they get new ideas
Disruptive Innovators
How can I get new ideas
Ability to connect seemingly unrelated ideas and put them together in new ways(DQ)
Where do Innovative Ideas come from?
Ability to connect seemingly unrelated ideas and put them together in new ways(DQ)
Where do Innovative Ideas come from?
Ability to connect seemingly unrelated ideas and put them together in new ways(DQ)
Where do Innovative Ideas come from?
Ability to connect seemingly unrelated ideas and put them together in new ways(DQ)
Where do Innovative Ideas come from?
Ability to connect seemingly unrelated ideas and put them together in new ways(DQ)
Where do Innovative Ideas come from?
For example
Dairy Queen
Steve JobsCEO Apple Inc.
“Creativity is connecting things…creative people connect experiences they’ve had and synthesize new things.”
Associating
Jennifer Hyman, MBA Student
Designer Dresses
Jennifer Hyman, MBA Student
Designer Dresses
Jennifer Hyman, MBA Student
Designer Dresses
Jennifer Hyman, MBA Student
Jennifer Hyman, MBA Student
Associating
Associating
Associating
Associating
See connections between seemingly unrelated ideas.
Associating
Associating
See connections between seemingly unrelated ideas.
YourTurn
Now It’s
Associating
Dishwasher
Associating
Dishwasher
+
Associating
MicrowaveDishwasher
+
Associating
MicrowaveDishwasher
+
Associating
=
MicrowaveDishwasher
+
In‐Sink Dishwasher
Associating
=
MicrowaveDishwasher
+
In‐Sink Dishwasher
Associating
=EdgeStar Countertop Dishwasher
Associating
CognitiveSkill
Associating
The Innovator’s DNA Model
CognitiveSkill
Associating
Creative Idea
The Innovator’s DNA Model
CognitiveSkill
Associating
Creative Idea
The Innovator’s DNA Model
DiscoveryBehaviors
CognitiveSkill
Associating
Creative Idea
The Innovator’s DNA Model
DiscoveryBehaviors
CognitiveSkill
Associating
Creative Idea
Questioning
The Innovator’s DNA Model
DiscoveryBehaviors
CognitiveSkill
Associating
Creative Idea
Questioning
Observing
The Innovator’s DNA Model
DiscoveryBehaviors
CognitiveSkill
Associating
Networking
Creative Idea
Questioning
Observing
The Innovator’s DNA Model
DiscoveryBehaviors
CognitiveSkill
Associating
Networking
Creative Idea
Questioning
Observing
Experimenting
The Innovator’s DNA Model
Discovery-Driven Executives Who
Think Different
Act Different
Discovery-Driven Executives Who
Act Different
Think Different
… AND SINCE OUR BONUSES DEPEND ON THINGS WE CAN’T CONTROL…
Act Different: Question
… AND SINCE OUR BONUSES DEPEND ON THINGS WE CAN’T CONTROL…
…CAN MINE BE BASED ON THE PERFORMANCE OF SOME OTHER COMPANY?
Act Different: Question
… AND SINCE OUR BONUSES DEPEND ON THINGS WE CAN’T CONTROL…
…CAN MINE BE BASED ON THE PERFORMANCE OF SOME OTHER COMPANY?
YOU ASK ONE QUESTION AND SUDDENLY YOU’RE NOT A TEAM PLAYER.
Act Different: Question
What:Actively question the status quo.
Why:Gain an under‐standing of what the problem is and is not.
Questioning
David NeelemanFounder, Jet Blue &
Azul Airlines
“One of my strengths is an ability to look at a processthat has been in place for a long time and ask, “Why don’t they do it this other way?” And sometimes I find myself thinking the answer is so obvious that I wonder “Why has no one else ever thought of this before?”
Questioning
“What if” we were legally prohibited from conducting any future business with our current set of customers.
Good Questions Impose Constraints
“What if” we were legally prohibited from conducting any future business with our current set of customers.
Good Questions Impose Constraints
How would we make money next year?
“What if” we could only interact with our customers through digital technologies?
Good Questions Impose Constraints
“What if” we could only interact with our customers through digital technologies?
Good Questions Impose Constraints
How would that change the way we deliver a great customer experience?
Or Eliminate Constraints
“What if” money were no object?
What kind of product would we create?
Or Eliminate Constraints
“What if” money were no object?
• Identify a problem that you are trying to solve.
Question‐Storming
• Identify a problem that you are trying to solve.
• Instead of brainstorming solutions, brainstorm ONLY questions to the problem (at least 25 questions).
Question‐Storming
• Identify a problem that you are trying to solve.
• Instead of brainstorming solutions, brainstorm ONLY questions to the problem (at least 25 questions).
• Write the questions on a white board for all to see as they are being generated.
Question‐Storming
• Identify a problem that you are trying to solve.
• Instead of brainstorming solutions, brainstorm ONLY questions to the problem (at least 25 questions).
• Write the questions on a white board for all to see as they are being generated.
• At the end, prioritize the top 3‐5 questions that should be addressed/answered before brainstorming solutions
Question‐Storming
Questioning is—• Challenging the status quo.
Creative Idea Generation
Questioning is—• Challenging the status quo.
• Imposing or eliminating constraints.
Creative Idea Generation
Questioning is—• Challenging the status quo.
• Imposing or eliminating constraints.
• Pushing others to imagine the future by asking “what if” questions?
Creative Idea Generation
What:Gain insights for new ways to do things by finding “surprises.”Why:Understand the job‐to‐be done.
ObservingObserving
© Copyright 2013 Innovator’s DNA LLC 96
Identify key “jobs-to-be-done” through customer empathy and discovery
Understand customer functional, social, and emotional
jobs-to-be-done
Empathy
Solution JobWhat? Why?
“People don't want to buy a quarter-inch drill…
…they want a quarter-inch hole!" - Theodore Levitt
© Copyright 2013 Innovator’s DNA LLC 97
Identify key “jobs-to-be-done” through customer empathy and discovery
Understand customer functional, social, and emotional
jobs-to-be-done
Empathy
Solution JobWhat? Why?
“People don't want to buy a quarter-inch drill…
…they want a quarter-inch hole!" - Theodore Levitt
Overcome customer barriers through simplicity, convenience,
cost, and access
Discovery
© Copyright 2013 Innovator’s DNA LLC 98
Identify key “jobs-to-be-done” through customer empathy and discovery
Understand customer functional, social, and emotional
jobs-to-be-done
Empathy
Solution JobWhat? Why?
“People don't want to buy a quarter-inch drill…
…they want a quarter-inch hole!" - Theodore Levitt
Overcome customer barriers through simplicity, convenience,
cost, and access
Discovery
Look for jobs that are important, unmet, and widely-held
BMW HondaHarley Davidson
Why do people buy (hire) a Harley Davidson?
BMW HondaHarley Davidson
Why do people buy (hire) a Harley Davidson?
BMW HondaHarley Davidson
‐ Brand Image (rugged individualism)
Why do people buy (hire) a Harley Davidson?
BMW HondaHarley Davidson
‐ Brand Image (rugged individualism)‐ Customizable product so that each is unique.
Why do people buy (hire) a Harley Davidson?
BMW HondaHarley Davidson
‐ Brand Image (rugged individualism)‐ Customizable product so that each is unique.‐ Access to a community (HOG) of like minded bikers
Harley Davidson
“The only way I know to teach people to be innovative is to teach them how to observe andask just one question that often generates surprising responses, ‘What’s different than you expected?’”
Scott CookCEO, Intuit
Observing
Observing
P&G and Google swap marketing and HR employees for two months to learn through
observing and networking.
Observing
P&G and Google swap marketing and HR employees for two months to learn through
observing and networking.
Observing
P&G and Google swap marketing and HR employees for two months to learn through
observing and networking.
Results:
P&G learns how to use “Mommy Bloggers” to promote products.
Observing
Lived in 2+ Countries
Observing
Lived in 2+ Countries
ANDOR
Worked in 2+ Industries/Business Functions
Observing
Lived in 2+ Countries
ANDOR
Worked in 2+ Industries/Business Functions
Twice as Likely to Innovate
Observing is—
Creative Idea Generation
The propensity to intensely observe the world around you —such as customers, products, services, companies and technologies—to gain insights and ideas about new ways of doing things.
Creative Idea Generation
In 60 seconds or less, list your top 10 (or more) “go‐to” people for helping you generate or spark new ideas.
1. ______________________2. _______________________3. _______________________4. _______________________5. _______________________6. _______________________7. _______________________8. _______________________9. _______________________10. _______________________
Your Idea Network
• Opposite gender?
How Diverse is Your Network?
• Opposite gender?• Different function of your company?
How Diverse is Your Network?
• Opposite gender?• Different function of your company?• Different industry?
How Diverse is Your Network?
• Opposite gender?• Different function of your company?• Different industry?• Different nationality? (grew up in a different country).
How Diverse is Your Network?
• Opposite gender?• Different function of your company?• Different industry?• Different nationality? (grew up in a different country).
• Different age group?
How Diverse is Your Network?
• Opposite gender?• Different function of your company?• Different industry?• Different nationality? (grew up in a different country).
• Different age group?• Different socioeconomic group?
How Diverse is Your Network?
What:Actively seek diverse ideas.
Why:Gain a new perspective.
Networking
“I like to hang out with young entrepreneurs, like Drew Houston, 28 year old cofounder of Dropbox. He grew up in the internet. I didn’t. So he can see things in ways that I don’t. That perspective is really important. I can’t sit in my headquarters and pretend I’m in touch.”
Marc BenioffFounder and CEO, Salesforce.com
Networking
Marc BenioffFounder and CEO, Salesforce.com
Networking
Facebook & Twitterfor Businesses
Don’t eat…
…alone.
with someone who thinks like you.
Don’t eat…
Building Your Networking skills:
Creative Idea Generation
Building Your Networking skills:1. Tap experts. Who else has solved a problem like this before?
Creative Idea Generation
Building Your Networking skills:1. Tap experts. Who else has solved a problem like this before?
2. Attend networking events—and set a goal to talk to as many people as possible.
Creative Idea Generation
Building Your Networking skills:1. Tap experts. Who else has solved a problem like this before?
2. Attend networking events—and set a goal to talk to as many people as possible.
3. Form or join a networking group.
Creative Idea Generation
Early experiments in transportation
Act Different: Experiment
What:• Test ideas.• Seek new
experiences.• Take things apart. Why:Learn from new experiences, pilots and prototypes.
Experimenting
Jeff BezosFounder, Amazon.com
“One of the things we’ve tried to do at Amazon is reduce the cost of conducting experiments. If you can increase the number of experiments you try from 100 to 1,000, you dramaticallyincrease the innovations you produce.”
Experimenting
IDEO PeopleExperimenting
David KelleyFounder, IDEO“If a picture is worth a thousand words, a prototype
is worth a million words.” –David Kelley, Founder IDEO
© Copyright 2013 Innovator’s DNA LLC 133
What is a prototype?
© Copyright 2013 Innovator’s DNA LLC 134
What is a prototype?
Prototypes have many names….
‘Comp’
‘Rough’
‘Alpha’‘Beta’
‘Mock‐up’
‘Design’
‘Blueprint’
‘Visual’
‘WorkingModel’‘Pilot’
‘Test’
‘Trial’
© Copyright 2013 Innovator’s DNA LLC 135
What is a prototype?
Prototypes have many names….
CAD Models Ad Mock-Ups
Sketches
Drawings
Integrated Systems
Hardware
Websites
Simulations
‘Comp’
‘Rough’
‘Alpha’‘Beta’
‘Mock‐up’
‘Design’
‘Blueprint’
…and come in many shapes and sizes
Physical Models
Virtual Markets‘Visual’
‘WorkingModel’‘Pilot’
‘Test’
‘Trial’
© Copyright 2013 Innovator’s DNA LLC 136
What is a prototype?
Prototypes have many names….
CAD Models Ad Mock-Ups
Sketches
Drawings
Integrated Systems
Hardware
Websites
Simulations
‘Comp’
‘Rough’
‘Alpha’‘Beta’
‘Mock‐up’
‘Design’
‘Blueprint’
Common Definition: Anything visible and tangible that lets us explore, experience, evaluate and push forward an idea
…and come in many shapes and sizes
Physical Models
Virtual Markets‘Visual’
‘WorkingModel’‘Pilot’
‘Test’
‘Trial’
• Planning– You can’t plan your way to success when there is a high degree of market risk (will they want it?) and technological risk (can we make it?)
Experimenting Lessons
• Planning– You can’t plan your way to success when there is a high degree of market risk (will they want it?) and technological risk (can we make it?)
• Quickly test assumptions with prototypes– Use A/B prototypes and iteration to learn your way to success
Experimenting Lessons
• Planning– You can’t plan your way to success when there is a high degree of market risk (will they want it?) and technological risk (can we make it?)
• Quickly test assumptions with prototypes– Use A/B prototypes and iteration to learn your way to success
• Experimenting is the best way to answer a “what if” question– Sometimes there is no question, observation, or conversation that can reveal the future.
Experimenting Lessons
Experimenting is—
Creative Idea Generation
Experimenting is—• Learning new skills
Creative Idea Generation
Experimenting is—• Learning new skills
• Taking apart products, ideas, processes.
Creative Idea Generation
Experimenting is—• Learning new skills
• Taking apart products, ideas, processes.
• Piloting ideas to test hypotheses...to answer questions you cannot through observing or networking.
Creative Idea Generation
Discovery Behaviors Feed Associating
Think
Creative Idea
Four behaviors—questioning, observing,
networking, experimenting—turbo charge creative thinking.
© Copyright Innovator’s DNA 147
• Discounted Self Assessment through September 30th, 2014• To take your assessment, follow these steps: Go to this URL: bit.ly/idna‐register Use Registration Key: “innovation” to get the assessment at a 50% discount!
• Contact [email protected] with any questions
Take the Innovator’s DNA Self Assessment at 50% Off!
“If we pull this off, we’ll eat like kings.”
Take Calculated Risks
Creativity is not just a genetic endowment.
Conclusion
Remember:
Creativity is not just a genetic endowment.
Conclusion
Remember:
Implication:
Creativity is not just a genetic endowment.
Conclusion
Remember:
Act Different
Implication:
Creativity is not just a genetic endowment.
Conclusion
Remember:
Act Different
To
Implication:
Creativity is not just a genetic endowment.
Conclusion
Remember:
Act Different
To ThinkDifferent
Implication:
Questions?
OCTOBER 17, 2012
To ask a question … click on the “question icon” in the lower-right corner of your screen.
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