INNOVATION THINKING GUIDE

Annual Business Plan 2017 – Leaders Sharing

The world we
were living in
five years ago
is now
completely
different.
We must be able to
adapt to continuous
changes.
 Innovation should be
part of the DNA of our
company

It is no longer
an option!!
CEO DIRECTION 2017

 Innovative Business Model

 Technology-driven products
 Visionary & Innovative
Leaderships
 Global Player Capabilities
 Market Leadership Nationally,
Regionally & Globally
REFERENCE:
1. Innovators DNA: Mastering The 5 Skills of Disruptive
Innovators
2. McKinsey’s: The Alchemy of Growth
3. Doblin Ten Types of Innovation: The Discipline of Building
Breakthrough
4. Generating Breakthrough New Product Ideas: Feeding the
Innovation Funnel
5. Creative Genius: An Innovation Guide for Business Leaders,
Border Crossers and Game Changers
6. HBR: Building your company’s vision; by James C. Collins &
Jerry I. Porras
Our Agenda Today:
Innovation
Part 1: The Ideas Factory
1 - Source of Ideas & Insights
4 - Mastering 5 Skill of Innovator’s DNA
Part 2: The Design Studio
- Innovation Funnel
2 - Doblin10 Types of Innovation Model
3 - Mc Kinsey’s 3 Horizons of Growth
Part 3: The Impact Zone

Strategic Visioning
 INNOVATION

THE IDEAS FACTORY

IDEA?
 ANYTHING
that
INTERESTS YOU
SOURCE OF KNOWLEDGE

LIBRARY OF KNOWLEDGE

SOURCE OF IDEAS
 INNOVATION

THE DESIGN STUDIO

INNOVATION
What is Innovation?

Invention
+
Commercial
EXPLOITATION
 Basic Systematic

10 Different Types of
Product Development
Innovation
 1. 2. 3. 4.
Finance Process Offering Delivery

Net
Business working Enabling Core Product Product Customer
Service Channel Brand
Model & Process Process Performance System Experience
Alliances
1. FINANCE: Business Model

• find a fresh way to convert a firm’s offerings and other

sources of value into cash

Business • They reflect what customers actually cherish and

Model where new revenue or pricing opportunities might lie

• premium prices: how to charge more for offering than competitors

or auctions: where the market sets the price for goods

how you • Could you use bundled or flexible pricing, financing,

generate advertising revenue, membership, metered or subscription
models?
revenue
Dell innovated a business model based on this type by collecting money from the consumer
before the computer was assembled and shipped, this contributed to achieving a positive
working capital of eight days
1. FINANCE: Networking & Alliances

• Provide a way for firms to take advantage of other companies’

processes, technologies, offers, channels and brands
Networking &
Alliances • They help to share risk in developing new offers

• Formed between allies or even competitors

how you
connect with • Could you work with new or unique partners and suppliers to
others to create and deliver value?
create value
how you connect with others to create value
2. PROCESS: Enabling Process

• Organizing company assets (hard, human and non tangible) in

unique ways to create value

Enabling • Great for Improving Fixed Costs and Corporate Functions

Process
• Could you outsource where you don’t create or capture value, or
could you integrate or cluster units or departments?

• Attracts talent and encourages superior working environments

how you organize for improved performance
and align your
talent and assets
 how you organize and align your talent and assets

Starbucks aims to deliver

exceptional consumer
experience through
hiring part-time
educated and
professional employees
2. PROCESS: Core Process
• involve the activities and operations that produce an enterprise’s
primary offerings

• Screw Business as Usual

Core Process
• Develop Unique Capability, Function Efficiently, Adapt Quickly
and Develop Market Leading Margins

• They often form the core competency of an enterprise, may include

patented or proprietary approaches that yield advantage for years
how you use
signature and • Could you use on-demand or lean production, flexible
superior methods manufacturing, or process standardization?

to do your work
 how you use signature and superior methods to do your work

Walmart continued to grow its profit through the usage of real-time inventory
management systems. Also, they implemented aggressive volume/price/delivery
contracts with its merchandise providers, which allowed store management to respond
quickly to buyer behaviors
3. OFFERING: Product Performance

• related to the design of the product or offering

• This includes the product’s basic features and functions and how to
Product build an innovative product or service that can achieve success in the
competing market
Performance
• works closely with the design process as the core focus of the designer is to
develop innovative product ideas and turn these ideas into a successful
final product
• Could you develop unique product features and functionality that captivate
how you develop customers by making by helping them do more, with more style, speed,
safety, ease or fun?
distinguishing
features and
functionality
how you develop distinguishing features and functionality
3. OFFERING: Product System

• Innovating by creating complementary products and services

that connect or bundle together to create more value

Product System
• Bundles to create a robust & scalable system

• Could you or a partner create additional related, modular or

peripheral products or services?
how you create
COMPLEMENTARY
products and
services
how you develop distinguishing features and functionality
3. OFFERING: Service

• Innovating by adding value in how you support customers find,

buy, pay, enjoy and dispose of your product

• Service innovations ensure and enhance the utility, performance

Service and apparent value of an offering

• They make a product easier to try, use and enjoy

• Could you offer a service concierge, sampling service, personalised

how you support service, delivery and returns service, financing service, self-service,
or adjunct services such as warranties, repairs and guides?
and AMPLIFY the
VALUE of your
offerings
how you support and amplify the value of your offerings
4. DELIVERY: Channel

• Innovating how you deliver your offerings to customers

and users

Channel • Goal is to ensure users can buy, what when and how they
want

• Could you use B2B, B2C or P2P channels, or harness pop-

up stores, e-commerce stores, partner stores, or outlet
how you deliver stores?
your offerings to
customers and
users
how you deliver your offerings to customers and users
4. DELIVERY: Brand

• Innovating how you present your offerings and business in a distinctive,

memorable, and likeable way

• Brand innovations help to ensure thet customers recognize, remember and

Brand prefer your offerings to those of competitors or substitutes

• Carefully crafted strategies to engage multiple touch points between

customer & brand

how you • Could you brand offerings differently, using co-branding, umbrella
branding, own-label branding, certification, distinctive marketing
represent your campaigns, novel brand extensions, or new packaging or design?
offerings and
business
 how you represent your offerings and business

Virgin, which describes itself as an “international investment group” brands products

and services distinctively by injected a much-needed dose of fun
4. DELIVERY: Customer Experience

• centers on how to build an engaging experience between the

consumer and the product

Customer
Experience • tends to research the methods and creative ideas to extend the
consumer experience

• Could you a more personalized, rewarding or ‘humanized’ interaction,

how you foster listen to customers rather than talk at them, or foster collaboration
compelling between customers themselves, or connect them with the causes,
celebrities or communities they value?
interactions
how you foster compelling interactions
 Finance Process Offering Delivery

Product
Business Networking Enabling Core Product Customer
Performanc Service Channel Brand
Model & Alliances Process Process System Experience
e

Business
Model Networking
• Flexible Pricing
& Alliances
• Float • Consolidation
• Cost Leadership
• Premium • Open Innovation
• Disaggregate
• User Defined • Alliances
Pricing
• Ad Suported • Franchising
• Scaled • Complimentary
• Subscription • Coopetition
Transaction Partnering
• Licensing • Collaboration
• Risk Sharing • Supply Chain
• Membership • Merger/Acquisition
• Microtransactions Integration
• Bundled Pricing • Secondary Markets
• Financing
• Installed Base
• Forced Scarcity
• Switchboard
• Auction
 Finance Process Offering Delivery

Product
Business Networking Enabling Core Product Customer
Performanc Service Channel Brand
Model & Alliances Process Process System Experience
e

Core
Enabling Process
Process • Incentive System
• Localization
• IT Integration
• Process Efficiency
• Competency Center • Process
• Flexible
• Outsourcing Standardization
Manufacturing
• Corporate University • Process
• Organizational • Crowdsourcing
• Knowledge Automation
Design • On Demand
Management • Intellectual
Production
• Asset Standardization Property
• Lean Production
• Decentralized • Predictive
• Logistics System
Management Analytics
• Strategic Design
• User Generated
 Finance Process Offering Delivery

Product
Business Networking Enabling Core Product Customer
Performanc Service Channel Brand
Model & Alliances Process Process System Experience
e

Product Product Service

Performance System
• Try before you buy
• Guarantee
• Superior Product • Engaging • Product • Extention/Plug • Total • Loyalty Program
• Ease of Use Functionality Bundling ins Experience • Added Value
• Safety • Performance • Modular System • Compliments Management • Concierge
• Future Aggregation Simplification • Product/Service • Supplementary • Superior Services
• Added • Conservation Platforms Service • Personalized Services
Functionality • Customization • Integrated • User
• Environmental • Focus Offering Communities/Support
Sensitivity • Styling Systems
• Lease or Loans
• Self Service
 Finance Process Offering Delivery

Product
Business Networking Enabling Core Product Customer
Performanc Service Channel Brand
Model & Alliances Process Process System Experience
e

• Process
Automation • Experience
• Diversification • Non • Curation Simplification
Traditional • Co Branding • Brand Leverage
• Flagship Store • Experience
Channels • Brand Extention
• Go Direct Enabling
• Component Customer
• Pop up Presence • Mastery Expeerience
Branding
• Indirect Channel Brand • Community &
• Transparency
Distribution Belonging
• Values
• Cross Selling • Personalization
Allignment • Autonomy &
• Context Specific • Private Label • Whimsy &
• Multi Level • Certification Authority
• Experience Personality
Marketing
Centre • Status &
Recognition
Multiple Innovation Types
 A model that organizations can use to
focus their energy and resources on
projects that sustain their growth
over the long term
VALUE

HORIZON 3 – Create
the foundation for
new value and
future growth
HORIZON 2 – Build • GOAL : MOVEMENT to
someplace new in the
momentum of context of change.
emerging new Flexible for change and
HORIZON 1 - business NEW VALUE
CREATION for
Defend & Extend • GOAL : Secure the customers and the
current core opportunity through business
meaningful value
business CREATING
• GOAL : BRAND DIFFERENTIATION
LOYALTY, RETENTION, and positional
Continuous growth advantage
through customer
journey mapping and
new value creation
TIME
HORIZON 1

Horizon one
represents How a Keep these
those core business The focus is products
businesses plans to win on improving current to
most readily the performance meet the optimized for
identified with
the company competitive to maximize needs of profit
name and those battles over the remaining existing
that provide the the next 12- value markets and
greatest profits 18 months. customers
and cash flow
Step Horizon 1
• Understand
current
strengths and • Make sure
weaknesses, that
threats and production
opportunities line is as
that • Segment your
• Think about streamlined
organization market to
how these and error-free
faces gain a better
products can as possible
understandin
compete more g of it, and to
effectively in identify new
the market opportunities
for growth
HORIZON 2

Deliver Involves revising

organizational products for new
Represents the
renewal to markets or
work we’re
overcome the adding significant optimized for
doing now for
effects of functionality to revenue and
future delivery
'organizational existing products market share
— the stuff on
entropy'. It has to make them
the roadmap
a 2-5 year time more attractive to
horizon new markets
Step Horizon 2
• Map out "big
picture"
changes that • Think about
might how to push
threaten the most
your promising of • explore and
current • Open up new your Horizon understand your
products opportunities 2 businesses organization's core
for them to a new competencies
level • think about how
you can
strengthen them a
nd use them to
develop new
businesses
HORIZON 3

Exploring new
possibilities, many It’s the work we
of which will not are doing with
The long term make it past new technology
successor to various decision for existing Optimized for
business as gates, but from a markets or learning
usual portfolio of options entirely new
will come the next products for
horizon 2 growth new markets
pathways
 Step Horizon 3
• set time and
• Encourage resources
• look at the
team members aside to
variety of
to submit their brainstorm
ideas and • have a rich ideas for ideas with
projects that source of future your team
you have in the potential businesses or members
pipeline products and products • encourage
businesses people to
that fit “think big”
with your about what
organization's the
business organization
model and could achieve
mission
Matrix – Case Study
Mc KINSEY’S 3 HORIZONS OF GROWTH
D
O
Horizon 1 Horizon 2 Horizon 3
B
L Business Model (Profit Model)
I
N Networking/Alliances

I
Enabling Process
N
N
Core Process
O
V
A Product Performance
T
I Product System
O
N Service

T Channel
Y
P Brand
E
S Customer Experience
Mastering 5 Skill of Innovator’s DNA
Mastering 5 Skill of