Download - Voka kempen innovatieacademie 2015 session 1
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Frank Dethier
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Frank Dethier
Session 1:
Why Innovate?
Business Model
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Frank Dethier –
INTRO & EXPECTATIONS
Can you please each explain in 3 min
Who are you?
Which company are you working for and what’s your
role?
Which expectations do you have about this academy?
Which concrete outcomes do you want to have
applicable to you/your company?
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Frank Dethier –
MY EXPECTATIONS
What I would like to have
Lean forward attitude (discussions, challenges, …)
You create a draft framework for your company already
That I learn from you
What’s possible
Program is changed during the course based on your needs
…
What I would not like to have
Lean back (I do the talking, you only listen)
You follow this academy and go back to work as if nothing
happened should be more than purely inspiration
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Frank Dethier –
OVERVIEW
Innovation
Creativity?
Innovation?
Why Innovate?
Types & Levels of Innovation
Business Model
Business Model of your company using BMC
Inspiring Examples
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Frank Dethier –
CREATIVITY?
What’s creativity?
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Frank Dethier –
CREATIVITY?
Creativity is a phenomenon whereby something
new and in some way valuable is created (such as
an idea, a joke, a literary work, painting or
musical composition, a solution, an invention
etc).
Creativity can also be defined "as the process of
producing something that is both original and
worthwhile"
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Frank Dethier –
CREATIVITY?
Who’s Creative?
Who wishes to be more Creative?
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Frank Dethier –
CREATIVITY?
LIFE OF IDEA GENERATED IN YOUR BRAIN
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Preparation
Incubation
Inspiration
Verification
Knowledge
Experience
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Frank Dethier –
CREATIVITY?
IMPROVE CREATIVITY?
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Marvin Reznikoff test of identical twins
80% IQ based on genetics
30% creativity based on genetics
By giving people the right environment, training and context, they can dramatically
improve their creativity over time, no matter what level they are at now
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Frank Dethier –
CREATIVITY?
IMPROVE CREATIVITY?
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Marvin Reznikoff test of identical twins
80% IQ based on genetics
30% creativity based on genetics
By giving people the right environment, training and context, they can dramatically
improve their creativity over time, no matter what level they are at now
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Frank Dethier –
CREATIVITY?
HOW TO IMPROVE CREATIVITY?
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When importance of giving correct answer
is emphasized
New ideas are typically rough which makes
them more susceptible to criticism
How will creativity drop?
Brain is ‘offline’ new connections are formed
in your brain that sometimes creates ‘eureka’
Brain is focused idea is refined
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Frank Dethier –
CREATIVITY?
HOW TO IMPROVE CREATIVITY?
Put your brain offline: Take a walk, exercise,
daydream, shower, …
Give your brain new triggers: change physical
surroundings, change your routine
Create company culture of trust and failure is allowed
Do daily creativity training exercises
Gain knowledge and context in wide variety of fields
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Frank Dethier –
CREATIVITY?
HOW TO IMPROVE CREATIVITY?
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Frank Dethier –
INNOVATION?
How do you define Innovation?
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Frank Dethier –
INNOVATION?
Innovate = Create Value by using Creativity
Value: Ensure that concept provides
advantage for market, customers &
company
Create: What needs to happen to initiate the
work and to hold on
Creativity: find fresh ideas and combinations of
ideas
Innovation ≠ Creativity
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Frank Dethier –
INNOVATION?
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Janet Echelman – Taking Imagination Seriously
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Frank Dethier –
WHY INNOVATE?
Why does your company need to Innovate?
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Frank Dethier –
WHY INNOVATE?
2014 Innovation Assessment by PWC, McKinsey
and BCG: “Innovation remains top 3 priority”
OECD: “Innovation will become an ever more
important driver of growth of many developed
Western economies”
Intuitively: World around us (customers,
markets, technologies, competition, …) is
continuously changing, so
either my company is making a change
or my company is changed (by world around us)19
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Frank Dethier –
WHY INNOVATE?
True or False?
Increase your R&D budget and your company
becomes more innovative
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Frank Dethier –
WHY INNOVATE?
True or False?
Larger companies can innovate much better than
SMEs
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Frank Dethier –
WHY INNOVATE?
INNOVATION BARRIERS
Time pressure
Not enough budget
How can we innovate?
Mindset of our people
Too bureaucratic
No support from management
Cooperation between different people/functions
How to prove value of innovation?
Company culture
Fear for the unknown
No reward system
…
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Frank Dethier –
Why does your company need to Innovate?
Which are the biggest Innovation Barriers in
your company?
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Frank Dethier –
EXERCISE
Teams of 2 people
Fill in & Discuss within your team
Time foreseen: 15 min
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Frank Dethier –
OVERVIEW
Innovation
Creativity?
Innovation?
Why Innovate?
Types & Levels of Innovation
Business Model
Business Model of your company using BMC
Inspiring Examples
25
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Frank Dethier –
TYPES OF INNOVATION
Product Innovation
Business model Innovation
Service Innovation
Any company can realize different types of Innovation
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Process Innovation
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Frank Dethier –
TYPES OF INNOVATION
Product Innovation
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Philips Ambisound: same sound experience as
5.1 sound system without clutter
Any company can realize different types of Innovation
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Frank Dethier –
TYPES OF INNOVATION
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Service Innovation
Any company can realize different types of Innovation
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Frank Dethier –
TYPES OF INNOVATION
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Process Innovation
Assembly time Ford chassis decreased
from 12.5h till 93 min in 1 year
Any company can realize different types of Innovation
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Frank Dethier –
TYPES OF INNOVATION
Business model Innovation
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HighVolumesLow variable and
fixed costs
Any company can realize different types of Innovation
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Frank Dethier –
INNOVATION LEVELS
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Frank Dethier –
Radical
Innovation
• Technology leap
• Transformation
pretty cool
Incremental
Innovation
• Existing technology
• Competition driven
Not surprisingly ‘new’
INNOVATION LEVELS
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Continuous
Improvement
• Focus on process
• Efficiency driven
Not really ‘new’
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Frank Dethier –
INNOVATION LEVELS
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Continuous
Improvement
• Focus on process
• Efficiency driven
Not really ‘new’
Disruptive
Innovation
• Small get big
• Turbulence
Blue Ocean
Sustaining
Innovation
• Focus on market
• Value driven
Business as usual
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Frank Dethier –
OVERVIEW
Innovation
Creativity?
Innovation?
Why Innovate?
Types & Levels of Innovation
Business Model
Business Model of your company using BMC
Inspiring Examples
34
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Frank Dethier –
BUSINESS MODEL?
A business model describes the rationale of how
an organization creates, delivers, and captures
value, in economic, social, cultural or other
contexts.
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Frank Dethier –
BUSINESS MODEL CANVAS
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Key Partners Key Activities
Key Resources
Value Propositions Customer Relationships
Channels
Customer Segments
Revenue StreamsCost Structure
• Who are our key
Partners/suppliers?
• Which key activities
do partners perform?
• Which key resources
are we acquiring from
partners?
What key activities do
our
• Value proposition
• Distribution channels
• Customer relation-
ships
• Revenue streams
require?
• What value do we
deliver to customer?
• Which one of our
customer’s problems
are we helping to solve?
• What bundles of
products & services are
we offering to each
customer segment?
• Which customer
needs are we satisfying?
• What type of relation-
ship does each of our
customer segments
expect us to establish &
maintain with them?
• For whom are we
creating value?
• Who are our most
important customers?
• Through which
channels do our custo-
mer segments want to
be reached?
• Which ones work
best/are cost-efficient?
What key resources do
our
• Value proposition
• Distribution channels
• Customer relation-
ships
• Revenue streams
require?
• What are most important costs inherent in our business
model?
• Which key Resources/Activities are most expensive?
• For what value are our customers really willing to pay?
• How would they prefer to pay?
• How much does each revenue stream contribute to overall
revenue?
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Frank Dethier –
BUSINESS MODEL
BOOK ALEXANDER OSTERWALDER
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Frank Dethier –
APPLE IPOD/ITUNES CANVAS
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Frank Dethier –
BUSINESS MODEL CANVAS
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Key Partners Key Activities
Key Resources
Value Propositions Customer Relationships
Channels
Customer Segments
Revenue StreamsCost Structure
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Frank Dethier –
BUSINESS MODEL EXERCISE
Teams of 2 people
Fill in Canvas of your company, and especially
Value Proposition
Customer Segments
Activities
Discuss within your team
Time foreseen: 30 min
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Frank Dethier –
BUSINESS MODEL
INSPIRING EXAMPLES
No Frills Business Model
Essence: non-essential items of service are
discarded and savings are passed on to the
customer
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Frank Dethier –
BUSINESS MODEL
INSPIRING EXAMPLES
Pay-per-Use
Media companies increase revenues per customer
Web companies convince customer to try their service
and set-up long term relationship
Essence: lowers adoption barriers but big
transaction volumes needed
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Frank Dethier –
BUSINESS MODEL
INSPIRING EXAMPLES
Subscription
Essence
Customer pays subscription fee to get access to
product/service
Allows recurring revenues and build brand loyalty
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Healthy Office Snacks
Fruit4Thought
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Frank Dethier –
BUSINESS MODEL
INSPIRING EXAMPLES
Freemium = Free + Premium
Limit Product/Service in free version
Feature limited
Capacity limited
Seat limited
Customer class limited
Effort limited
Support limited
Time limited
Bandwidth limited
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Frank Dethier –
BUSINESS MODEL
INSPIRING EXAMPLES
Razor & Blade
Essence: sell durables (lower margin) that will
work only in combination with complementary
consumables (higher margin)
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Frank Dethier –
MILESTONES IN HISTORY OF INNOVATION
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Every organization needs one core competence: innovation
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Frank Dethier –
MILESTONES IN HISTORY OF INNOVATION
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James March's 1991
‘Exploration and Exploitation in Organizational Learning’
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Frank Dethier –
MILESTONES IN HISTORY OF INNOVATION
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Clay Christensen – The Innovator’s Dilemma
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Frank Dethier –
OVERVIEW
Innovation
Creativity?
Innovation?
Why Innovate?
Types & Levels of Innovation
Business Model
Business Model of your company using BMC
Inspiring Examples
49