innovation strategies
DESCRIPTION
The presentation covers innovation strategies that have been implemented by different companies in different industries to disrupt the market and become leaders in their industries.TRANSCRIPT
Innovation StrategiesLeo Barella, Vice President & Chief Technology OfficerExcellus BlueCross BlueShield
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Kodak Video goes here
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“There were no digital consumer products”
“Digital was difficult to understand”
“Transition from a 70-80% margins to 3-4%”
“It was run by experienced Kodak managers
who grew up in the Kodak style”
Corporate Culture and Processes could not value Disruptive
Innovation
Styles of Innovation
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Sustaining vs. Disruptive Innovation
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Sustaining Innovation
Innovating in Response to Customers’ Feedback
Innovation Pre-emptive to Customers’ Desires
Disruptive Innovation
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Wallace Carothers
Pattern RecognitionTrial & Error Cause & Effect
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Pattern RecognitionTrial & Error Cause & Effect
Types of Innovation
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Disruptive Products
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Disruptive Products
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Disruptive Products
Steel Industry
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Integrated Mill Minimill
Steel Industry
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Integrated Mills Minimills
Stee
l Qua
lity
7%
12%
18%
25-30%
4%
8%
Rebar
Bars - Rods
Structural
Sheets
22%
55%
1975 1980 1985 1990
% of Tons
Who’s the customer and why are they buying our products
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Job Mapping
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STEP EXAMPLE
LocateGather items and information you need to do the job
Simplify input and simplify when and where they are available
PrepareSetup the environment to do the job
Easier setup of product and work area
ConfirmVerify that they are ready to perform the job
Giving information on how to confirm readiness
DefineDetermine their goals and plan resources
Simplify Planning
CUSTOMER INNOVATION
Job Mapping
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STEP CUSTOMER INNOVATION EXAMPLE
Execute Carry out the job Preventing problems or delays
MonitorAssess whether the job is being successfully executed
Linking Monitoring with Improved Execution
Modify Make alterations to improve executions
Reducing the need to make alterations or the number of alterations needed
Conclude Finish the job or prepare to repeat it
Designing products to simplify the process to conclude the job
Innovation Evolution
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I need to get this item from here to there with perfect certainty as fast as possible
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Primary Question What Do Customers Need?
Needs Assessment Surveys & Focus Groups
Innovation Goal Planning Before Action
Innovation OutcomeMeeting Current Customer
Technology Needs
Innovation Process Structured & Linear
Organizational Models Traditional Models & Roles
What Do Customers Do?
Ethnography
Action Before Planning
Learning & Exploring
Dynamic & Spontaneous
New Structures & Quick Development Cycles
Innovation Headquarters
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Disruptive Innovations Feed Into Portfolio Management
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Standard Portfolio Management Process:• Disciplined milestone definition and reviews• Includes entire product life cycle• Aligns technology and product development• Technology is developed to expected level of maturity• Continuous improvement of products and processes
Disruptive Innovation Development Process:• Defines critical assumptions• Rapid assessment of assumptions• Validated assumptions pace critical technology development