Frank Dethier

Frank Dethier

Session 2: Innovation

Strategy

Frank Dethier –

HOW TO INNOVATE?

ONE HOLISTIC FRAMEWORK

Integrate Strategy, Process, Organization, People

& Culture in one holistic approach this will

seriously improve your chances of success

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Strategy

Process

Organization

Resources

Culture

Frank Dethier –

ONE DIMENSIONAL APPROACHES DO NOT

HAVE ENOUGH IMPACT

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Strategy

Process

Organization

Resources

Culture

Cool! Let’s do

a brainstorm

On which

challenges?

Is there budget

to further

execute

outcome?

Which steps

thereafter?

Which parts of

organization

do we involve?

Isn’t there

conflict with

‘delivery’

culture now?

Why am I here?

I’m not creative!

Frank Dethier –

HOW TO INNOVATE?

ONE HOLISTIC FRAMEWORK

2014 Survey by IBM on ‘how most successful

organizations innovate’

‘The top 9 percent of organizations in

both operating efficiency and revenue

growth pursue distinct strategies in

innovation organization, culture and

process ‘

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Frank Dethier –

HOW TO INNOVATE?

ONE HOLISTIC FRAMEWORK

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Strategy

Process

Organization

Resources

Culture

Frank Dethier –

HOW TO INNOVATE?

INNOVATION STRATEGY

Strategy sets scope

& direction

Timing?

Strategic challenges?

Funding magnitude?

What do you want to achieve?

…

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Frank Dethier –

HOW TO INNOVATE?

INNOVATION STRATEGY

The innovation strategy defines in what ways and to what extent the organization will use innovation to execute its business strategy. This boils down to defining what resources and the extent of resources to be allocated to innovative efforts, and the levels of risk the organization will undertake in the pursuit of innovation.

5W2H approach

Why?

Where?

What?

Who?

When?

How?

How much/many?

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Frank Dethier –

HOW TO INNOVATE?

INNOVATION STRATEGY?

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Innova-

tion

Strategy

1. Align within organization what you’re

shooting for, e.g.

• Double your business?

• Hold it steady?

• Innovative image?

• Something else?

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Frank Dethier –

INNOVATION STRATEGY

GROWTH GAP

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Current

sales

Expected growth

from current

activities

Expected stall

from current

activities

Expected

revenues

in future

Visible effort – do

not forget! Still big effort – do

not forget!

Gro

wth

gap

Explicit

target

Frank Dethier –

INNOVATION STRATEGY

INCREASE SALES?

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Frank Dethier –

HOW TO INNOVATE?

INNOVATION STRATEGY?

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Innova-

tion

Strategy

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2. A) How much investment? From where?

• Start-up: 100%

• Intel (with growing core) couple of

years ago: less than 5%

Frank Dethier –

HOW TO INNOVATE?

INNOVATION STRATEGY?

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Innova-

tion

Strategy

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2. B) When?

• This year?

• Within 3 years?

• Different goals & different timings?

C) Who?

• Whole company?

• Few employees?

Frank Dethier –

HOW TO INNOVATE?

INNOVATION STRATEGY?

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Innova-

tion

Strategy

3. Define & select your opportunities

(strategic innovation area’s)

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Frank Dethier –

INNOVATION STRATEGY

STRATEGIC INNOVATION AREA’S SELECTION

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How Risky?

Risk Matrix Plot intuitively

How much value?

SWOT

How will we win?

Market size?

Growing?

How much profit?

RBV

5 competitive forces / R-W-W

Easy Difficult

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Frank Dethier –

STRATEGIC INNOVATION AREA’S

HOW RISKY?

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Products

Ma

rkets

Frank Dethier –

STRATEGIC INNOVATION AREA’S

HOW RISKY?

17 Products

Ma

rkets

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Reach in

more than

120

countries

Frank Dethier –

STRATEGIC INNOVATION AREA’S

HOW RISKY?

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Key Partners Key Activities

Key Resources

Value Propositions Customer Relationships

Channels

Customer Segments

Revenue Streams Cost Structure

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Frank Dethier –

STRATEGIC INNOVATION AREA’S

RISKY? - AMAZON KINDLE FIRE

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Frank Dethier –

STRATEGIC INNOVATION AREA’S

HOW MUCH VALUE?

1. What’s market size?

2. Is the market growing?

3. How much profit will it generate?

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Frank Dethier –

STRATEGIC INNOVATION AREA’S

HOW WILL WE WIN?

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Book

Frank Dethier –

HOW TO INNOVATE?

INNOVATION STRATEGY?

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Frank Dethier –

HOW TO INNOVATE?

ONE HOLISTIC FRAMEWORK

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Strategy

Process

Organization

Resources

Culture

Start small

& Iterate

Frank Dethier –

HOW TO INNOVATE?

INNOVATION STRATEGY

Having a plan/strategy is great, but your initial

plan/strategy should not become your goal!

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Frank Dethier –

HOW TO INNOVATE?

INNOVATION STRATEGY

Explain also what you’re NOT going to do

Especially those ideas that are living in the

organization and you’re sure they will not bring you

forward

Do you have already examples yourself?

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Frank Dethier –

HOW TO INNOVATE?

INNOVATION STRATEGY

Share your Innovation Strategy/Vision with rest

of organization

You need enthusiasm & drive of whole organization

Visible measures/metrics to track progress

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Frank Dethier –

SUMMARY

ONE HOLISTIC FRAMEWORK & STRATEGY

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Stra

tegy

Process

Organization

Resources

Culture

Innova

tion

Strate

gy

1. Goal?

2. A) Investment?

B) When?

C) Who?

3. Innovation area’s?

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