Innovation Framework & Valley of Death (PDF)

Chapters 11 Innovation Management Innovation Framework Urgency and failure of innovations Valley of Death © 2021 Pearson Education Limited. All Rights Reserved.  Innovation Framework An innovation framework is an organization’s strategic approach to con...

Chapters 11 Innovation Management Innovation Framework Urgency and failure of innovations Valley of Death © 2021 Pearson Education Limited. All Rights Reserved.  Innovation Framework An innovation framework is an organization’s strategic approach to continuously generate new ideas, test and evaluate those ideas, make evidence- based decisions about them, and ultimately operationalize or launch the innovation. Without an innovation framework, you may be missing out on ideas and talent potential across the organization. It is important to note that innovation frameworks are unique to the organization and its competitive needs. There’s no one- size-fits-all approach. © 2021 Pearson Education Limited. All Rights Reserved.  Innovation Culture Framework Innovation culture framework covers five essential elements: 1.Urgency of invention development 2.Perspective of innovation 3.Embracing failure as a culture not as a threat or a source of disappointment. 4.Customer obsession 5.Intentional destruction © 2021 Pearson Education Limited. All Rights Reserved.  1-URGENCY This means that urgency must be part of the company strategy. If you do not invent fast, follow the market changes and new trends, you will be behind, and competitors will take over. Urgency about innovation should be baked into the strategic plans and operational goals. This means it should be planned and budgeted for, and activities and outcomes measured and reported. Old New email Social media Newspapers Blogs and social media channels Phone calls Text messages Public Libraries Wikipedia Classroom teaching Online teaching © 2021 Pearson Education Limited. All Rights Reserved. Urgency: work on R&D and NPD Research and new product development © 2021 Pearson Education Limited. All Rights Reserved. Commonly presented linear New Product Development (NPD) model it's the complete process of bringing a new product or service to market. This involves a series of steps, from the initial idea generation all the way through to product launch and post- launch evaluation. Key Goals of NPD: Create innovative products that meet customer needs. Gain a competitive advantage in the market. Increase revenue and market share. Drive business growth. © 2021 Pearson Education Limited. All Rights Reserved. Commonly presented linear New Product Development (NPD) model Idea Generation: Brainstorming, market research, customer feedback, and identifying unmet needs. Concept Development: Refining ideas, conducting feasibility studies, and creating detailed product concepts. Design and Development: Prototyping, testing, and refining the product design. Market Research and Planning: Analyzing the target market, developing a marketing strategy, and determining pricing and distribution channels. Product Launch: Introducing the product to the market through various channels (e.g., retail, online). Post-Launch Evaluation: Monitoring sales, gathering customer feedback, and adjusting as needed. © 2021 Pearson Education Limited. All Rights Reserved.  2-Perspective An innovation perspective is a mindset or viewpoint that focuses on finding new and better ways of doing things. It involves a willingness to challenge the status quo, think creatively, and embrace change. Your perspective is the way you look at the future and the problems that you trying to solve. Your perspective determines your destiny. Is the glass half empty or half full? Avoid retreating to your comfort zone. © 2021 Pearson Education Limited. All Rights Reserved.  2-Perspective During the COVID pandemic, the perspective of people has changed, and they were able to invent new products, systems and processes to handle their life matters and needs. “Crises forced us to learn to adapt to our customer wants and need and forced us to learn what they wanted, how they wanted it and when they wanted and how they wanted us to give it to them”. © 2021 Pearson Education Limited. All Rights Reserved. 2-Perspective © 2021 Pearson Education Limited. All Rights Reserved.  We are constantly amazed by how much people will do when they are not told what to do by management Jack Welch © 2021 Pearson Education Limited. All Rights Reserved.  3-Fail Fast The failing fast approach encourages businesses to test their ideas early and often. By taking this approach, they can quickly identify and address any issues, saving valuable time, money and resources. © 2021 Pearson Education Limited. All Rights Reserved. Celebrate Failure All new knowledge costs time and effort (suffering) as well as money. In Jeff Bezos’s 1997 letter to shareholders, he said: “Nine times out of ten, you’re going to fail. Culture of Innovation should embrace testing and experimental Failure – Take out the shame of failure and honor of success © 2021 Pearson Education Limited. All Rights Reserved. Its easy to find the peak of the hill but to get there you must walk through a Valley Don’t celebrate reaching the summit. Celebrate the lessons learned https://mastersinvest.com/newblog/2016/9/16/the-ten-commandments-for-business-failure © 2021 Pearson Education Limited. All Rights Reserved.  3-Fail Fast 1. Win like you are used to it and loose like you enjoy it. 2. Interpret failure as a training cost. – Sometimes you win – Sometimes you LEARN 3. Use failure as a benchmark for thinking big. © 2021 Pearson Education Limited. All Rights Reserved.  4- Customer obsession GET Customer obsession focuses on increasing retention and loyalty.... They can trust your business has their VERY best interest at heart which increases their likelihood of EMOTIONAL repeat purchases and becoming loyal advocates of your business. (empathize with your customers) Innovation stem form a deep understanding of the Customer. © 2021 Pearson Education Limited. All Rights Reserved. 4- Customer obsession © 2021 Pearson Education Limited. All Rights Reserved. 4- Customer obsession © 2021 Pearson Education Limited. All Rights Reserved. 4- Customer obsession © 2021 Pearson Education Limited. All Rights Reserved. 4- Customer obsession © 2021 Pearson Education Limited. All Rights Reserved.  5-Intentional Destruction This concept is more aligned with innovation. It involves the intentional dismantling of outdated or inefficient processes, products, or business models in the company to make way for new, more innovative ones. This can be a painful but necessary step for businesses to stay competitive in a rapidly changing market. Strategic Disruption: By consciously dismantling old systems and processes, organizations create opportunities for new ideas and approaches to emerge. This can lead to increased efficiency, reduced costs, and the development of groundbreaking products or services. https://www.futuristu.com/elearning © 2021 Pearson Education Limited. All Rights Reserved.  Intentional Destruction We need to break down the structure and hierarchy that prevent us from seeing realities of the tomorrow market Create a new environment that incubates a culture of innovation. © 2021 Pearson Education Limited. All Rights Reserved. What is the Valley of Death? Innovation often requires significant financial resources for research, development, testing, and market validation. If a startup does not secure adequate funding during crucial stages of innovation, it may struggle to bring its products to market or improve existing offerings and fall in the valley of death. © 2021 Pearson Education Limited. All Rights Reserved. What is the Valley of Death? Risk of Failure: The valley of death represents a period of high risk for startups. Without sufficient funding, startups may fail to survive this stage due to lack of resources to support ongoing operations, invest in growth opportunities, or withstand market challenges. © 2021 Pearson Education Limited. All Rights Reserved. The Valley of Death Sometimes, startups may require additional funding to achieve breakthrough innovations or pivot their business models in response to market feedback. © 2021 Pearson Education Limited. All Rights Reserved.  Sources of business opportunities 1-Reverse engineering is a process in which a product or system is analyzed, to see how it works, so that a similar version of the product or system can be produced more cheaply. © 2021 Pearson Education Limited. All Rights Reserved.  Sources of business opportunities 2-Unexploited patents: A patent is a right granted for an invention that is new and useful. A registered patent provides the owner of the invention with the exclusive right to exploit it commercially for the life of the patent. Patent exploitation refers to the exclusive right to make, hire, sell or otherwise dispose of the patent, or offer to do any of the above © 2021 Pearson Education Limited. All Rights Reserved.  Sources of business opportunities 3-Brainstorming and Synectic: A method of identifying and solving problems that depends on creative thinking Synectic is an approach to problem-solving that focuses on cultivating creative thinking, often among small groups of individuals with diverse experience and skills. © 2021 Pearson Education Limited. All Rights Reserved. Sources of business opportunities Synectic is a problem- solving methodology that stimulates thought processes of which the subject may be unaware. © 2021 Pearson Education Limited. All Rights Reserved.  Sources of business opportunities 4-Technology: technological advancements 5-Senior and top management: adopting a strategy for innovation based on potential business opportunities. © 2021 Pearson Education Limited. All Rights Reserved.