Transcript Innovation and Idea Generation

Innovation and Idea Generation
Innovation and Creativity
Innovation = creative idea + implementation
www.simfonec.co.uk
Innovation
‘……..is the process of harnessing creative activity to create
new value in new ways through new products, new services,
and new businesses. This value creation activity…also
applies to business strategy and processes.’
– Arthur D Little (Technology and Management Consultancy)
www.simfonec.co.uk
The Innovation Process
Generate
Ideas
Assess
&
Validate
Prototype
Test
Trial &
Compare
Roll Out
time, cost, people, skills, structure
www.simfonec.co.uk
Drivers of Innovation
Competition
• Direct
• Indirect
• New entrants
Regulatory, legal and patents
• Litigation
• Policies
• Regulatory requirements
Technology advances
• New techniques
• Smaller, faster, cheaper, remote
• Data processing capacity
People and society
• Quality of life
• Lifestyle drugs
• Expectations
• Social structures
Disruptive events
• Climate Change
• SARS
• Bioterrorism
• BSE
www.simfonec.co.uk
Incremental and Disruptive Innovation
Incremental (or sustaining) innovation focuses on improving existing
methods and techniques
– Extend application areas
– Improve efficacy, reduce side effects
– Reduce human error
– Redesign or refine for comfort, ease of use (eg. devices or surgical
tools)
Disruptive (or radical) innovation results in new drugs, devices. Or
techniques that redefine gold standards
– Introduce a new technology, eg. medical imaging, internet, wireless
– Sudden changes in available resources (time, space, money, raw
materials)
– Redefinition of existing protocols or policy
www.simfonec.co.uk
Innovation Equals Benefits
www.venturefestyork.net
Simplify task
Environmental benefit
www.asahq.org
www.microwaveservice.co.uk
www.newbusiness-newlife.com
Reduce effort
Convenience
Reduce uncertainty
Enjoyment
www.simfonec.co.uk
Why Do Companies Innovate?
sales
Product 3
Product 2
Product 1
time
Image source:
Cambridge Consultants
Ltd
www.simfonec.co.uk
Elements of Innovation in Organisations
Leadership
-vision
-culture
End-users
-needs
Technology
-opportunities
-driver of
change
-opinions
Innovation
Customers
Employees
-knowledge
-resource
-needs
-opinions
www.simfonec.co.uk
Sources of Innovation
Universities and research institutions
– Novel concepts and techniques
– Access technology at very early stage
– Limited investment and risk
Biotechnology companies
– Development stage products
– Boost product pipeline
– Reduce risk of access to emerging technologies
Collaboration and joint ventures
– Partner on projects with defined objectives
– Bring additional skills from across disciplines
– Share risk and reward
www.simfonec.co.uk
Why is Innovation Difficult?
The way we think, act and behave is influenced by:
– Years of academic study and training
– Daily habits, routines and patterns
– Protocols, methods and approaches to problems
– The people and environment around us
But...
Problems can not be solved by
thinking within the framework in
which they were created –
Albert Einstein (Physicist)
New ideas come from
differences. They come
from having different
perspectives and
juxtaposing different
theories –
Nicholas Negroponte
(Chairman of MIT Media
Laboratory)
www.simfonec.co.uk
Thinking Outside the Box
- generic words and phrases
- transfer concepts

Challenge rules and
assumptions
- consider ‘impossible’ ideas
- turn the problem on its head

Force connections with random
object
- Break obvious connections

- Opens new perspectives

Relate to other areas
wheel round
metal move
transport exercise
Re-express
- words, pictures, acting
- describe to non-expert
www.simfonec.co.uk
How Many Ideas do I Need?
‘… start with around 3,000 bright ideas to end up with four plausible
development programmes...the minimum needed to get just one
winner’
- (Leaps of Faith, The Economist 18 Feb 1999)
www.simfonec.co.uk
What Needs to be Considered?
For a technology idea to be successful you need:
• An application
• Target customer
• Route to market
External factors
Internal factors
www.simfonec.co.uk
Start with the Technology
How much development work is required?
Weeks, months, years, decades!
What technical skills and expertise are required?
Who needs to be involved to bring this to fruition
Are there any ethical, regulatory or legal hurdles?
Stem cells, GM foods, IVF treatment...
Do competitive barriers to entry exist?
Competing organisations, other technologies, intellectual property
www.simfonec.co.uk
What is the Context?
What are the objectives of your organisation?
Research, grow, expand customer base...
What are your personal objectives?
Make money, get promoted, build a team...
Who are the stakeholders?
Your boss, employees, colleagues, funders, customers
Is the environment right?
Consumer opinion, economic climate, political policy
www.simfonec.co.uk
What About the Market?
What is your market?
Is there unmet demand or trying to create demand
Is there a need?
Do existing products already address the market
Who are the customers?
Where, who, how many, will they pay, how much
What is the competitive landscape?
Direct, indirect, fragmented, concentrated, monopoly, threats
www.simfonec.co.uk
Now Apply Assessment Criteria
Select 4 criteria you would use to assess your ideas, start with ‘quick
wins’ and ‘investigate’ boxes
For each criteria mark out of 5 how well an idea meets the criteria
Assess as many ideas as possible
Are you able to eliminate ideas easily?
Is there a clear winner?
www.simfonec.co.uk
Validate Using Assessment Criteria
Criteria 1
2
3
4
Total
Winner?
Idea
1
2
3
4
5
6
www.simfonec.co.uk
Due Diligence
• The process of investigation, performed by investors or their
representatives, into the details of a company and its activities, such
as an examination of operations and management and the
verification of market size and other material facts
• If you don’t validate your idea someone else will
• Good validation of ideas requires objectivity
• Investors don’t get it right all of the time
www.simfonec.co.uk
Innovation Takes Persistence and Patience!
Ups & Downs
Ecstasy
Enthusiasm
Despair
Source: The Economist, 18 Feb 1999
www.simfonec.co.uk
Further Reading
Articles
– The Theory Behind HBDI; www.herrmann.com.au
– Open Your Company to New Ideas; M.Skapinker; Financial
Times; 16 Jan 2001
– Creativity: Gale Encyclopaedia of Psychology
– ‘The Innovation Premium: Capturing the value of creativity’;
R.S. Jonash and T. Sommerlatte; Prism Q3 1999
Books
– Crash Course in Creativity, B. Clegg and P.Birch
– Leading the Revolution, G. Hamel
– Innovator’s Dilemma, C.M. Christensen
– Nevens et al (1999) Commercialising Technology: what the
best companies do in Harvard Business Review on
Entrepreneurship, (Harvard Business School Press)
Web Links
– www.livinginnovation.org
– www.innovation.gov.uk
– www.creativethinking.net
www.simfonec.co.uk
"The real magic of discovery lies not in
seeking new landscapes, but in
having new eyes"
- Marcel Proust
www.simfonec.co.uk