Innovation PLAYBOOK TOOLKIT

Transcription

1 Innovation PLAYBOOK TOOLKIT

2 About the Author Greg Satell is a popular author, speaker and innovation advisor, whose work has appeared in Harvard Business Review, Forbes, Fast Company, Inc. and other A-list publications. Over the last 20 years he has managed market leading businesses and overseen the development of dozens of pathbreaking products. Greg helps organizations to grow through bringing ideas into practice. He applies rigorous frameworks to identify the right strategies for the right problems, helps build an innovation playbook to tackle the challenges of the future and drive transformative change. You can find Greg's blog at DigitalTonto.com and on His first book, Mapping Innovation: A Playbook For Navigating A Disruptive Age was selected as one best business books of 2017 by 800-CEO-READ.

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4 Introduction Every business is disrupted eventually. It s just a matter of time. The organizations that are able to meet and overcome that challenge are the ones that continually identify new problems, match them with strategies best fit to solve them, access resources internally and throughout the innovation ecosystem and build a playbook to prepare for the future. This workshop is designed to help you look beyond your square-peg business and set a course to navigate the new round-hole world that threatens to disrupt it. To set up a a workshop or advisory engagement, send an to innovate@digitaltonto.com

5 process 01 Identify 02 Classify 03 Map 04 Resource 05 Design 01 Identify 02 Classify 03 Map 04 Resource 05 Design 3

6 process 01. Identify 01 Identify 02 Classify 03 Map 04 Resource 05 Design 01 Identify 02 Classify 03 Map 04 Resource 05 Design 4

7 PDO Analysis The PDO analysis will help you identify problems, disruptions and opportunities that will affect your business in the near, middle and long-term in order to set innovation priorities. You ll probably notice that the same issues show up in more than one category. That s okay. In some sense, every problem has the potential for disruption and every disruption can lead to opportunity. The point of this exercise is to surface the issues that can affect your organization, prioritize which ones most need to be addressed and then get to work on solving them.

8 01 Identify PDO Analysis Problems Disruptions Opportunities

9 01 Identify PDO Stack Rank Problems Disruptions Opportunities

10 Priority Mapping Once you have listed the problems, disruptions and opportunities facing your business, it s time to reformulate them into 3-6 concrete innovation priorities that can be pursued in the short (0-2 years) medium (2-5) years and long-term (5+ years). These should be clear initiatives that address the issues that surfaced in the PDO analysis.

11 01 Identify Priority Mapping Innovation Priorities Present (0-2 Years) Medium Term (2-5 Years) Long Term (5 Years +) 7

12 process 02. Classify 01 Identify 02 Classify 03 Map 04 Resource 05 Design 01 Identify 02 Classify 03 Map 04 Resource 05 Design 8

13 Problem Classification Now that we ve identified innovation priorities, it s time to classify the problems to be solved using two tools: 3 Horizons: Plot each innovation priority according to whether they target markets which your enterprise currently serves, existing markets which you don t serve or new markets that don t yet exist and whether they require capabilities that your enterprise currently deploys, capabilities that currently exist but you enterprise does not currently deploy or new capabilities that don t exist anywhere yet. Operational Checklist: Determine for each innovation priority whether you can currently define a detailed technical specification or project scope and whether you can define the job descriptions for a team that would execute the project.

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15 02 Classify Operational Checklist Innovation Priority Technical Specification Job Description Defined Undefined Defined Undefined 10

16 process 03. Map 01 Identify 02 Classify 03 Map 04 Resource 05 Design 01 Identify 02 Classify 03 Map 04 Resource 05 Design

17 03 Map Defining Map Parameters 1 How well is the problem defined? 2 How well is the skills domain defined? 12

18 Mapping Priorities To The Innovation Matrix Now that we have classified our the problems to be solved for each of our innovation priorities, it s time to plot them on the Innovation Matrix by answering the two questions on the previous page: 1 How well is the problem defined? 2. How well is the domain defined? (Or how well we understand the capabilities needed to carry out a successful project.) The answers to these questions should closely follow the Operational Checklist, but also be informed by the insights gained from the 3 Horizons analysis. Another important thing to note is that the strategies provided in the Strategy Designation map are suggestions, not dictates. For example, some advanced tech companies like IBM and Google use open innovation strategies as a sustaining strategy and focus internal resources for breakthrough problems. So take your own unique capabilities, culture and market position into account when choosing an innovation strategy.

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22 process 04. Resource 01 Identify 02 Classify 03 Map 04 Resource 05 Design 01 Identify 02 Classify 03 Map 04 Resource 05 Design 16

23 Resourcing Your Innovation Priorities After deciding on which innovation strategy or combination strategies you intend to pursue, you need to begin thinking about how you will resource the technology, talent and technology needed to complete a successful project on an Innovation Resource Worksheet. The best way to fill out the worksheet is to imagine going into the office tomorrow and think about the phone numbers and addresses you would need to get started. You don t actually need to be that specific on the worksheet, but that s eventually what you will need to do, so it s a good thing to keep in mind. Fill out one worksheet for each innovation priority.

24 Resource Worksheet Terms Technology: Specific resources that will enable your organization to solve a problem (e.g. software, hardware, etc.). Talent: People who have the expertise and experience to solve a problem (e.g. accountants, software developers). Information/Data: Information needed to solve a problem (e.g. financial records, customer information, technical information, etc.). Internal: Within you organization. Partner: An organization working jointly with your internal organization. Vendor: A market segment or organization that makes a solution available for sale (e.g. the internal organization is a customer or potentially can be). Customer: A market segment or organization that buys a product or service (e.g. the internal organization is a vendor or potentially can be).

25 04 Resource Innovation Ecosystem Open Customer Internal Vendor Partner 17

26 04 Resource Resource Worksheet Innovation Priority #1 Channel Technology Talent Information/Data Internal Customer Vendor Partner Open 18

27 04 Resource Resource Worksheet Innovation Priority #2 Channel Technology Talent Information/Data Internal Customer Vendor Partner Open 19

28 04 Resource Resource Worksheet Innovation Priority #3 Channel Technology Talent Information/Data Internal Customer Vendor Partner Open 20

29 04 Resource Resource Worksheet Innovation Priority #4 Channel Technology Talent Information/Data Internal Customer Vendor Partner Open 21

30 04 Resource Resource Worksheet Innovation Priority #5 Channel Technology Talent Information/Data Internal Customer Vendor Partner Open 22

31 04 Resource Resource Worksheet Innovation Priority #6 Channel Technology Talent Information/Data Internal Customer Vendor Partner Open 23

32 process 05. Design 01 Identify 02 Classify 03 Map 04 Resource 05 Design 01 Identify 02 Classify 03 Map 04 Resource 05 Design 24

33 Design An Innovation Playbook Now that you ve identified innovation priorities, classified the problems to be solved, mapped them on the Innovation Matrix, designated strategic approaches to each and identified which resources you need and where to get them, it s time to design your innovation playbook. On the next sheet, identify the capabilities, markets, organizational structures and business models you intend to build in horizons 1, 2 and 3.

34 Innovation Playbook Terms Capabilities: Specific skill sets or resources that allows the organization to create, deliver or capture value. (e.g. audit, Internet security, etc.) Markets: Defined sets of customers and/or competitors organized around a common value proposition. (e.g. financial services, consumer goods, etc.) Organizational Structures: A defined structure within the organization set up for a specific purpose (e.g. Innovation Working Group, Blockchain Advisory Group, etc.). Business Model: A defined strategy for creating, delivering and capturing value (e.g. Business Model Canvas)

35 05 Design Innovation Playbook Capabilities Markets Organizational Structures Business Models Horizon 1 Horizon 2 Horizon 3 25

36 05 Design Business Model Tools 26

37 Business Model Tools Business model innovation is fundamentally different than product or process innovations, so we ve added some additional tools to help you. The first is the Business Model Transformation worksheet, which allows you to brainstorm around new business models. Simply describe how your organization presently creates, delivers and captures value and then think of how you can do each business model component differently. For example, if you capture value by charging customers a one-time fee, think about how you could shift to a subscription model. There are spaces for only two additional options, but feel free to experiment with more, mixing and matching until you get something that makes sense. Changing just business model component can make a deep impact on your enterprise, but there is no end to the number of permutations that can be successful in any given market. Once you have come up with a new business model, you can develop and test it further with the Business Model Canvas and Value Proposition Canvas developed by Alexander Osterwalder and Yves Pigneur. You can learn more about these tools by visiting

38 05 Design Business Model Transformation Present Business Model Option 2 Option 3 Create Value Deliver Value Capture Value 27

39 Business Model Canvas Terms Customer Segments: People or entities the organization seeks to serve (e.g. demographics, industry, etc.). Channel: The interface through which an organization seeks to deliver value (e.g. sales force, e- commerce, retail outlets, etc.). Customer Relationships: How an organization interacts with its customers (e.g. personal service, third-party distribution automated service, self-service, etc.). Revenue Streams: How an organization generates revenue for a particular product or service (e.g. flat fee, subscription sales, licensing, etc.). Key Resources: The assets needed to make a business model work (e.g. intellectual property, manufacturing facilities, distribution network, etc.). Key Activities: Things an organization must do to make a business model work (e.g. software development, Advisory services, Audit services). Key Partnerships: The network of vendors and partners that an organization needs to make a business model work (e.g. software developer, distribution partner). Cost Structure: The costs associated with Key Resources, Key Activities and Key Partners. Value Proposition: The bundle of products and services that create value for a particular customer segment (e.g. improved performance, customization, etc.).

40 The Business Model Canvas 05 Design Designed for: Designed by: Date: Version: Key Partners Key Activities Value Propositions Customer Relationships Customer Segments Key Resources Channels Cost Structure Revenue Streams This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit: or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. DESIGNED BY: Strategyzer AG The makers of Business Model Generation and Strategyzer strategyzer.com 28

41 The Value Proposition Canvas 05 Design Value Proposition Customer Segment Gain Creators Gains Products & Services Customer Job(s) Pain Relievers Pains COPYRIGHT: Strategyzer AG The makers of Business Model Generation and Strategyzer strategyzer.com 29

42 Notes 30

43 Notes 30