Transcript INNOVATION - Information Industry Structure and

The Five Disciplines For Creating What Customers Want
Curtis R. Carlson
William W. Wilmot
The Five Disciplines for Creating What Customers Want
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The Five Disciplines for Creating What Customers Want
Personal Computing
Minimally Invasive Surgery
HDTV
Ultrasound Imaging
Stakeholders
SWOT Analysis
911 call systems
Education system for disabled children
The Five Disciplines for Creating What Customers Want
“ When ever something – anything – is to be produced, there
must be rules, or a systemized method of producing it.
Whether or not the people who do the actual production fully
understand those rules, that system has a deciding effect on
product quality, cost, safety and all essential determinants of
success and failure.” – Toyota (employee handbook)
The Five Disciplines for Creating What Customers Want
“ Innovation is the process that turns an idea
into value for the customer and results in
sustainable profits for the enterprise.”
Innovation may be incremental or
transformational, but it would always provide
additional customer value.
The Five Disciplines for Creating What Customers Want
“ Business as usual won’t work.”
“Business as usual is a recipe for disaster.”
“ We are just two years away from failure.” – Bill Gates
The Five Disciplines for Creating What Customers Want
• Continuous Value Creation
• Sustained innovation centered on customer value is
the only approach that works
• Who is your customer?
• What is the customer value you provide?
• How do you measure customer value?
• What innovation best practices do you use?
The Five Disciplines for Creating What Customers Want
1.
2.
3.
4.
5.
Important Needs
Value Creation
Innovation Champions
Innovation Teams
Organizational Alignment
The Five Disciplines for Creating What Customers Want
Success equals:
“ Important Needs x Value Creation x
Innovation Champions x Innovation Teams
x Organizational Alignment”
The Five Disciplines for Creating What Customers Want
•
•
The end customer is to take the center stage in our
world.
Innovate or Die – The Exponential Economy
“ The most powerful force in the universe is
compound interest.” – Albert Einstein
The Five Disciplines for Creating What Customers Want
•
“ The World is now flat in the sense that it has
become an even playing field.” – Thomas Friedman
•
Moore’s – Law
•
Exponential Industries – Computers,
Communications, Biotechnology, Consumer
Products
The Five Disciplines for Creating What Customers Want
•
The exponential economy is driven by the transition
to a knowledge based economy.
•
These convergences require a new wave of business
models.
•
Declining company lifetimes (increased competition)
•
Declining product lifecycles
The Five Disciplines for Creating What Customers Want
“ It is not the strongest of species that survives
not the most intelligent; it is the one most
adaptable to change.”
The only way to systematically create
compelling customer value in the market
place is to simultaneously interact with the
market place.
The Five Disciplines for Creating What Customers Want
DISCIPLINE 1
IMPORTANT NEEDS
The Five Disciplines for Creating What Customers Want
“ Work on what’s important, not just what’s
interesting-there’s an infinite supply of
both”
-Frank Guarniei
The Five Disciplines for Creating What Customers Want
Selection of Important Projects:
1. Do you work on innovative activities that can make
demonstrable difference to your customers-internal and
external?
2. Is it aligned with your organizational goals?
3. Are you willing to commit to it?
The Five Disciplines for Creating What Customers Want
DISCIPLINE 2
VALUE CREATION
The Five Disciplines for Creating What Customers Want
“You don’t define value-Customer’s do!”
The Five Disciplines for Creating What Customers Want
It’s simple as NABC:
•
Need
•
Approach
•
Benefits per cost
•
Competition/Alternatives
The Five Disciplines for Creating What Customers Want
Example of NABC:
“June, I understand you’re hungry as I am [Need]. Let's go
have some lunch at the company café [approach], instead of
McDonald’s [Competition] because, for the cost of McDonald's
it has great food, its quiet and we can continue our
conversation [ benefits per costs]. “
The Five Disciplines for Creating What Customers Want
nAbc
NabC
- All about understanding the market ecosystem instead of
approach only
The Five Disciplines for Creating What Customers Want
Example of NABC:
“June, I understand you’re hungry as I am [Need]. Let's go
have some lunch at the company café [approach], instead of
McDonald’s [Competition] because, for the cost of McDonald's
it has great food, its quiet and we can continue our
conversation [ benefits per costs]. “
The Five Disciplines for Creating What Customers Want
THE ELEVATOR PITCH
An elevator pitch is a pithy summary of your value proposition that can be
told in one or two minutes.
•
Hook: to get their interest
•
Core: you NABC value proposition
•
Close: action to get to the next step
The Five Disciplines for Creating What Customers Want
DISCIPLINE 3
INNOVATION CHAMPIONS
The Five Disciplines for Creating What Customers Want
•
Steps up and keeps the team on track
•
Push the innovation forward
•
Passionate, committed, focused, inspire and
responsible
•
At least have one partner to keep
themselves on track
The Five Disciplines for Creating What Customers Want
DISCIPLINE 4
INNOVATION TEAMS
The Five Disciplines for Creating What Customers Want
“Never doubt that a small group of thoughtful,
committed people can change the world:
indeed it’s the only thing that ever has.”
– Margaret Mead
The Five Disciplines for Creating What Customers Want
The Five Disciplines for Creating What Customers Want
DISCIPLINE 5
ORGANIZATIONAL ALIGNMENT
The Five Disciplines for Creating What Customers Want
•
Alignment is assuring that the enterprise is
constructed to deliver the highest customer value
•
Align teams for success
•
Slowly disperse the idea to make customer value
the central hub
The Five Disciplines for Creating What Customers Want
THANK YOU