Practical takeaways of the 2009 Open Innovation Summit Presentation
December 10, 2009
Key points of the presentation by Robert Brands, entrepreneur and innovation coach, from the foam business success story and derived “Robert’s Rules of Innovation ™ ” presented at the 2009 Open Innovation Summit in Orlando last week.
1. Greater returns result when innovation addresses multiple dimensions rather than focusing on one area such as product innovation. Innovation must be applied on a broad spectrum encompassing process, finance, delivery, etc.. According to the Doblin March 2005 research project, financial innovation has the highest returns while product innovation provided the lowest. It should not come as a surprise that the successful Apple’s IPod hits 8 of these innovation dimensions, from business model to customer experience.
2. Success in innovation comes as a result of taking a “Total Innovation” approach, requiring that all imperatives of Robert’s Rules of Innovation be put in place, reinforced and repeated in order to create and sustain “new” in business. These imperatives include Inspire and Initiate, No risk, no reward; New Product Development; Ownership; Value creation; Accountability; Training & coaching; Idea management; Observe & measure; Net results & reward.
3. Use tools available to assess your efforts and apply continuous improvement in the weaker areas. Apply imperative tips, best practices and strive for “Next Practices”. (see Tips on http://www.robertsrulesofinnovation.com/inspire-and-initiate)
Resources:
Imperatives to Create & Sustain “NEW” in Business: www.robertsrulesofinnovation.com
Innovation Assessment tools: www.innovationcoach.com/solutions/
Other lessons learned: http://stefanlindegaard.com/2009/12/08/orlando/
See Twitter : #OIS09
The Paradox of Innovation from the 30,000-Foot Perspective: It’s About the Journey, Not the Destination
December 8, 2009
In the C-suites of corporate America, “innovation” has become a mandate. Executives – from CEOs to marketing officers – believe that to innovate is to embrace the Holy Grail of 21st Century business.
But is innovation alone the answer? Is the end – innovation – capable of surviving solely as a mandate?
Or is innovation a process, journey that seeks a destination refined and polished along the way? “Total Innovation” is a sojourn that mandates a total approach philosophy.
However, to create the Culture, foster Ideation and sustain a focus on thoughtful New Product Development, innovation requires a complex combination of and continued adherence to imperatives that must be introduced, embraced and nurtured. Innovation imperatives must start at the top, the CEO. They must be written into the Mission Statements; “Innovation” must have the backing in the strategic plan.
To thrive, Innovation must have the support of long-term growth objectives and capital support. Beyond support, Innovation must gain Inspiration from leadership, who will create and foster a Culture of innovation and motivate the organization. Leadership must acknowledge the role of Risk, and understand the possibility and benefits of failure.
For without such inspiration and continued communication, Innovation will not survive. It will become little more than a once-promising concept left to wither on the vine of fanciful corporate initiatives that never quite took root.
Therein lies the paradox of innovation. Companies cannot succeed without innovation. Yet few executives understand how to introduce, nurture, or capitalize on the promise of innovation within the organization.
Planned well, the Imperative of Innovation can impact the New Product Development process. It can encourage fertile Ideation, welcoming input from associates to customers and users alike. It feeds the machine, providing methods of collecting, vetting, ranking and considering the Next Big Idea or future new products or processes.
The Innovation Imperative insists on Ownership and Accountability. It requires a Champions – and Chief Innovation Officer, if you will – be named to oversee teams Trained, coached and mentored to shepherd projects through the system, all the while adhering to each Imperative.
The Imperative requires Observation and Measurement of performance and results to ensure they deliver Net Result and Reward, and that they meet or remain focused upon an established set of objectives – and those involved are recognized accordingly.
Ultimately, innovation done well leads to Value Creation – for the organization, its stake holders and customers.
To learn more, visit see www.robertsrulesofinnovation.com or look for “”Robert’s Rules of Innovation ™” by Wiley, March, 2010
Robert F. Brands is President and founder of www.InnovationCoach.com
FEATURED BOOK: Rethink: A Business Manifesto for Cutting Costs and Boosting Innovation
December 6, 2009
Rethink: A Business Manifesto for Cutting Costs and Boosting Innovation
Author: Ric Merrifield
Price: $18.24
Description: It’s the trap that ensnares virtually every business. We focus on process: “how” we’re doing the job. And we forget about the bigger issue: “what” we’re doing and “why” we’re doing it. That’s why we’re leaving so much value on the table. In Rethink, business architect Ric Merrifield exposes this problem with vivid examples and introduces breakthrough techniques for overcoming it.
New Product Development Requires Fresh Perspective on ‘Creative’ and ‘Structure’
December 1, 2009
New product development can be a misunderstood concept.
Is the “product” actually a product? Or can it be a process? Is it a mandate from the C Suite? Or can it be a suggestion from the factory floor, the retail showroom, the Idea Box or a customer tip?
How wide is your idea funnel? And how do you treat ideas once they land in the organization’s “idea hopper”? (see the blog post on “Innovation and Idea Management” to discover how to handle in-bound ideas).
Answer these questions, and you’ve placed your finger on the pulse of how your organization embraces new product development .
NPD best blossoms in that place where creativity commingles with structure – where fresh thinking is fostered in a nursery of structured liberation. Think of ideas as if they were offspring: They should be free to roam and explore, but they need fences – structure – in their lives to ensure safe maturation in a controlled environment.
The same is true for NPD – regardless of whether products are widgets for sale or processes envisioned to improve the organization. For the concepts of “creative” and “structured” are not mutually exclusive. Creativity is the thinking that goes behind the ideation of a new product. Structure helps define and determine the vetting process that NPD must go through.
Keep in mind that each step of this entire process has distinct “sub-steps,” if you will, that must be accomplished even before a Go / No-Go decision can be made. These often are done together – and simultaneously. This vetting and completed steps will than determine which products pass the Go / No-Go decision – regardless of the source or even the potential “profitability” of any new product.
These are important distinctions. When creating a foundational NPD process, all ideas should be welcomed from all sources – from the customer service rep to the C-level exec. No short-shrift or free pass here. If the structured vetting process, one established by the Chief Idea Officer and his/her team, gives a Thumbs-Down to a new idea, the source should not spin that determination.
Regardless of whether a product is seen as a revenue source, or just an internal concept or process, that, too, should have little impact on a product’s viability or survivability in the organization. Good “products” don’t have to result in revenues; they can enhance processes, that in turn, can boost profitability.
As you’re pondering your NPD capabilities, consider whether your pipeline accommodate simultaneous multiple product development streams? A new, physical product for sale should not force a process-focused product to be shelved. This level of scalability ensures a wide “innovation highway” – one that is lean, adaptive and flexible, and can handle various products at the same time.
Finally, is your organization prepared to measure the results – not of the NP, but of the process itself? Do you have a system in place to gather, measure and share both the success and the stumbling blocks? Are you prepared to ask yourself, how did the process work?
The truth is, future success can be closely tied into past accomplishments – if you’re willing to ask the right questions, create the right environment, and learn along the way.
For more ideas read “Roberts Rules of Innovation” (Wiley) available in March 2010 or visit www.InnovationCoach.com
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