factors of innovation
TRANSCRIPT
Hello
Factors of Innovation
180 Degrees Consulting - Annual Conference Sunday 26th February, 2017
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Purpose
What is innovation?
2 core drivers of innovation.
7 key factors of innovation.
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The real question?
Can factors of business innovation be used within not-for profit and social enterprises?
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Creating a common ground
What is innovation?
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“Innovation effectively is the process of technological change… the thing to really understand is that innovation is a process
not a thing. The thing, the outcome of innovation, is the invention. Innovation is
deeply associated with business processes, business models and all the different aspects
that combine towards creating a new product or service.”
Dr James Moody PhD, Innovation Theory
Founder: Sendle Author: The Sixth Wave: How to succeed in a resource limited world 10
– Mark Payne - Founder, Fahrenheit 212
“Innovation being synonymous with
growth. Companies that aren’t innovating
aren’t growing.”
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A starting point
Two core drivers of innovation.
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“If you don’t execute you can’t call it
innovation.”
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– S. Ellis Tait
1. Insights
• The faculty of seeing underlying truths, specifically those that shed light on or helps solve a problem.
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INSIGHTS
2. Operations
• Controlling the process of production and redesigning how a business delivers and produces goods or services.
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OPERATIONS
INSIGHTS OPERATIONS+
PROCESS FOR INNOVATION
–Helen Walters, Fast Company
“A codified, repeatable, reusable practice
contradicts the nature of innovation, which requires
difficult, uncomfortable work to challenge the
status quo of an industry or, at the very least, an
organisation.”
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Journey before destination
What are the key factors of successful business innovation?
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Key Factors of Innovation
Key factors from “Innovation Inside” interview series:
1. Crisis
2.Examination
3.Diversity
4.Collaboration
5.Creativity 6.Adjustment
7.Resilience
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1. Crisis
Definition
• any event that is, or is expected to lead to, an unstable and dangerous situation affecting an individual, group, community, or whole society.
• a stage in a sequence of events at which the trend of all future events, especially for better or for worse, is determined; turning point.
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CrisisCrisis drives innovation
• Crisis provides a compelling reason for action - you can’t run away from a crisis
Examples
• War > Nuclear weapons
• Climate change > Renewable energy
• Global financial crisis > ??
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Crisis @ LEGO•In 2004 the company almost went bankrupt.
•Sales fell around 30% in 2003.
•The company was running a negative cash flow of DKr 1 billion (US$160 million).
•Total debt had reached DKr 5 billion (US$800 million).
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“We are on a burning platform, losing money with negative cashflow and a real risk of
debt default which could lead to a break up of the company.” Jørgen Vig Knudstorp, CEO.
Report to management, 2003.
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2. Examination
Definition
• To observe carefully and critically
• To inquire into and investigate
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Examination
• What are the goals and objectives for my business?
• What changes are happening in my industry and how will they affect my company?
• Do we need to change something to achieve our objectives?
• What would happen if we were to explore new opportunities?
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Proven In-Service Personal Equipment for all Tactical and Protective Needs
SinceSupporting Australian Soldiers
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Australian Defence Apparel (ADA)
“ADA has a very long history. But our suppliers, from even two years ago, may no longer be strategically relevant for our business.
You've always got to apply scrutiny as to whether your partnerships are viable, and whether they're focused, and that you've both got the same vision.”
Darren Swindells General Manager, Strategic Product & Innovation ADA
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3. Diversity
Definition
• the inclusion of individuals representing more than one national origin, color, religion, socioeconomic stratum, sexual orientation, etc.
• a point of difference.
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Diversity
• Different viewpoints working on the same problem.
• Different backgrounds bring different ways of solving a problem
• Diversity unlocks innovation by creating an environment where “outside the box” ideas can be heard
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Canva“Diversity is important in all our people. In our marketing team not only are they diverse in themselves but their particular skill set is entirely different from our engineers, who are entirely different to the people that make up our customer happiness team. That eclectic nature is what makes our company strong. We need people thinking in different ways to handle all the different aspects that we are required to handle to be a successful startup company.”
Melanie Perkins, Founder & CEO Canva
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4. Collaboration
Definition
• to work, one with another; cooperate,
• working with others to do a task and to achieve and realise shared goals
• to work together (relationships) toward (process) something in common (outcomes).
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Collaboration
• I know what I don’t know
• Teamwork is essential to getting things done.
• Collaborating with partners, suppliers, customers and other stakeholders to find a solution.
• Innovation IS a collaborative pursuit
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Google“Collaboration is so ingrained in the way that we do things. Any time we want to try and do new things, one of the huge elements we talk about is what potential partnerships can we put into play here? How can we work with others to get this out into the real world in an interesting way? We have great products and great platforms. Sometimes the best stuff happens when we are just the platform and we give over the creativity and expression to others to use.”
Lee Hunter, Head of Marketing Innovation, APAC Google
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5. Creativity
Definition
• the ability to transcend traditional ideas, rules, patterns, relationships, or the like, and to create meaningful new ideas, forms, methods, interpretations, etc.; originality, progressiveness, or imagination:
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Creativity
• The ability to think outside the box
• unleashing the potential of the mind to conceive new ideas, new ways of doing things and innovative solutions
• to perceive the world in new ways, to find hidden patterns, to make connections between seemingly unrelated phenomena, and to generate solutions
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Pernod Ricard“I mentioned our Th!nkCreativity Lab. It's an opportunity for us to instil a culture of creativity in our business, this is what is going to drive long-term change in innovation for our business. Every innovation starts with an idea. This training allows managers to drive and organise ideation sessions, around anything from the name of a new wine to the development of the launch assets.”
Gwenola Hanaut, Innovation Director Pernod Ricard Winemakers
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6. Adjustment
Definition
• to change (something) so that it fits, corresponds, or conforms;
• to adapt or to correct to achieve a desired outcome
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Adjustment
• Constantly testing hypothesis and reviewing the results to see if we are on track or off track in achieving our goal
• Test / Fail / Learn or “Failing Fast” is THE process of adjustment
• When results are not what we expected we change tack.
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Mirvac“We don't want to take ideas away to perfect them in isolation, and then receive a rude shock when we unveil it to the customer. It's a continual process. We call it ‘experimenting’, and it’s based on lean startup methodology. This involves identifying the key assumptions that underlie an idea and going out to test them with those front line customers. This is a new methodology for our business and we are just learning how best to do this.”
Christine Gilroy, Group General Manager, Innovation Mirvac
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7. Resilience
Definition
• the process of overcoming (and ability to recover from) stress and adversity
• perseverance for long term goals
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Resilience•Achievement is the product of effort, a function of the intensity, direction, and duration of one’s exertions towards a long-term goal.
•Not giving up when the results of our activities are not what we hoped.
•A business’s ability to adapt and evolve in response to short term shocks and at the same time shape itself to be able to respond to long term challenges.
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BlameySaunders“Most CEO's of companies (particularly one’s that didn't own the company), would have checked out at that point. Whereas, we didn't. I thought, ‘Oh, damn. Our supplier has gone bankrupt. Better get on the road and find another one.’ Things are going to happen. Things are going to keep happening. The universe throws things at you. If the wind stops blowing get out the oars.”
Elaine Saunders, Founder BlameySaunders Hears
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Key Factors of Innovation
Key factors from “Innovation Inside” interview series:
1. Crisis
2.Examination
3.Diversity
4.Collaboration
5.Creativity 6.Adjustment
7.Resilience
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} ORGANISATIONAL CULTURE
Starting the journey
Can we use these same process to drive innovation within not-for-profit and social enterprises?
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Finding our feet
What is the role of innovation when viewed from a charitable and philanthropic perspective?
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Charity :an organisation set up to provide help and raise money for those in need.
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Philanthropy :an altruistic concern for human welfare and advancement.
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Philanthropy vs. Charity
charity aims to relieve the pain of a particular social problem,
whereas philanthropy attempts to address the root cause of the social problem,
“the difference between the proverbial gift of a fish to a hungry person, versus teaching them how to fish.”
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PhilanthropicFinding a new solution that eradicates the root cause of a problem.
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Charitable
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More efficient business processes and revenue generation, focusing on:
1. Enabling more money to be raised .
2. New ways of raising money.
3. Helping more people per $1 spent.
INSIGHTS OPERATIONS+
PROCESS FOR INNOVATION
EFFECTIVENESS EFFICIENCY+
?
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“Could we split the Double Diamond process to support the different objectives of Philanthropic and
Charitable organisations within the not-for-profit sectors?”
PHILANTHROPIC CHARITABLE+
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Over to you
Questions?
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Cheers!76
Thank you
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