Why Innovation Always Trumps Invention
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- Kellie Harrington
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1 Why Innovation Always Trumps Invention Thomas Kuczmarski President, Kuczmarski & Associates
2 For over 28 years, Kuczmarski & Associates has helped organizations drive growth through innovation Innovation Expertise Diverse Client Base Executive Education Co-Founders of the Chicago Innovation Awards Creating and Leading a Culture of Innovation Managing New Products and Services for Strategic Competitive Advantage 2
3 Invention Versus Innovation Innovation As A Growth Strategy Member Centric Innovation Leading Innovation 3
4 Innovation is a lot more than just new products New Business Models New Services 17 languages Live Intellectual Property Auctions Multi-Language Prescription Labels Crowd Sourced Retail CTA Bus Tracker 4
5 5
6 Ginger Tata Nano Tata Swach New Acquisition Tata Housing 6
7 Innovation Myths and Realities MYTH: Innovation is a fad and too high risk for our organization REALITY: Innovation provides relevancy and increases the value proposition MYTH: Innovation equals brainstorming REALITY: Innovation solves member problems, issues, and needs MYTH: Innovation is purely a creative process REALITY: Innovation requires a systematic and disciplined process MYTH: Individuals drive innovation REALITY: Innovation is a team sport 7
8 Often, organizations face a unique set of innovation challenges Lack of Systematic Development Process Fear of Focus Short Term Financial Needs 6 Common Innovation Hurdles Member Needs Not Understood Leader and Volunteer Turnover Limited People Resources 8
9 Innovation always trumps invention Invention Innovation Inventors create a product with the dream of success Innovators bring a product or service that solves real needs Invention generates new ideas, patents, and designs An invention, no matter how inspired, will not be valued if nobody wants to buy it Innovation transforms inventions into commercial products, services, and businesses Innovations, which solve customer wants and needs, will attract customers creating new revenue and growth 9
10 Invention Versus Innovation Innovation As A Growth Strategy Member Centric Innovation Leading Innovation 10
11 Successful innovation provides a path to growth and creates new value Successful innovations are New Products New Business Models New Services New Programs New Processes Creating something new that Offers New Benefits Is Differentiated from Other Offerings Is Valued by Members Yields Relevancy and Value Allowing you to Bring your strategic plan to life Grow your association 11
12 Best Practice innovation companies take a disciplined freedom approach to innovation Innovation Mindset Innovation Strategy Vision Strategic Roles Financial Growth Goals Screening Criteria Member - Centric Innovation Process Define Explore Solve Analyze Develop Prepare Execute Governance Process and Training Culture Organizational Structure Resources Rewards Metrics 12
13 The An Innovation Vision Strategy and Strategic is comprised Roles specifically of Vision, address Strategic how innovation Roles, will be used Financial to drive Growth growth over Gap, timeand Screening Criteria The Innovation Strategy Vision Who do we want to be? Strategic Roles How will innovation support our vision? Growth Gap What are our financial expectations? Screening Criteria How will we measure success? 13
14 Vision: Building Customer Service Empire Beyond Shoes Tony Hsieh, CEO Customer Service: Free Shipping/Returns/24 hour Call Center Culture: Zapponians and Culture of Happiness 14
15 Pablo Picasso: Released ~13,000 paintings Created over 250,000 original paintings Babe Ruth: 714 Home Runs 1330 Strikeouts 15
16 Innovation is sustained through Culture and Mindset Dedicated Resources Visible and Vocal Top Management Commitment Timely Research Conducted with Members Motivating Rewards and Recognition Innovation Strategy and Metrics Language and Reinforcement of Values 16
17 Invention Versus Innovation Innovation As A Growth Strategy Member Centric Innovation Leading Innovation 17
18 Create an innovation portfolio Repositionings Cost Reductions 39% New Products and Services Repositionings Cost Reductions 23% New Products and Services Improvements 18% Line Extensions 30% New to the World 17% New to the Company 22% 31% 8% NTW 15% 42% New to the Improvements Company Line Extensions The Best The Rest Source: Kuczmarski & Associates Winning New Products Survey 18
19 An member centric process enables organizations to deliver product, service, and value propositions that are continually relevant to end users Solve Analyze 5 1 Explore Develop 6 Define Prepare 7 Create the Project Strategic Plan Identify Problem/ Opportunity Areas Generate and Screen Solutions Develop, Shape, and Test Concepts Shape and Test Prototypes and Develop Business Cases Build Market Implementation Strategy Launch Launch Product/ Service into Market Member touch point 19
20 Play in cross functional teams The Result Faster Successful Commercialization What It Does Shortens communication Gains critical inputs early in the process Creates buy-in Effective Team Dynamics Consistent Team Members The most successful launches (in terms of overall profitability and/or competitive measures) were related to having cross-functional teams make decisions. Journal of Product Innovation Management 20
21 Invention Versus Innovation Innovation As A Growth Strategy Member Centric Innovation Leading Innovation 21
22 Kuczmarski s Top 10 List of Innovation Best Practices Strategy Process 1. Set Expectations 2. Create a Portfolio 3. Uncover Customer Problems and Needs 4. Use a Systematic and Disciplined Process 5. Provide Adequate Funding 6. Play in Cross-Functional Teams 7. Keep Score Culture 8. Reward and Celebrate Success 9. Accept Failure 10.Create an Innovative Culture 22
23 Innovative and progressive organizations will require a new kind of leader in the future Peopleship model and 6 values Humility Collaboration Compassion Peopleship Inclusiveness Transparency Values- Based Decisiveness Importantly, managing and motivating people with compassionate, collaborative, transparent and inclusive leadership not only positively affects the traditional bottom line, it also gives a boost to hard measures including ROI, stock price and operating earnings. 23
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