Frank Dethier

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

2

Strategy

Process

Organization

Resources

Culture

Frank Dethier –

HOW TO INNOVATE?

INNOVATION STRATEGY?

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Innova-

tion

Strategy

1. What’s your goal?

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2. A) How much investment? From where?

B) When?

C) Who?

3. Define & select your opportunities

(strategic innovation area’s)

Frank Dethier –

INNOVATION STRATEGY

STRATEGIC INNOVATION AREA’S SELECTION

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How Risky?

Risk MatrixPlot intuitively

How much value?

SWOT

How will we win?

Market size?

Growing?

How much profit?

RBV

5 competitive forces / R-W-W

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Excel

sheet

Excel

sheet

Excel

sheet &

article

Article

Frank Dethier

Session 3: Innovation

Process

Frank Dethier –

HOW TO INNOVATE?

ONE HOLISTIC FRAMEWORK

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Strategy

Process

Organization

Resources

Culture

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Frank Dethier –

INNOVATION & DELIVERY PROCESS

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Deliver new

Products/Services/

Processes that

provide extra

/new value

Frank Dethier –

DELIVERY PROCESSES

PRINCE2

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Frank Dethier –

DELIVERY PROCESSES

STAGE-GATE

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Direction Ideas

External

&

Internal

Propo-

sal

2 3 4 5 6

Feasi-

bility

Develop-

ment

Scale-

upLaunch

Projects

Str

ate

gic

ob

jectiv

es

1

Innovation

Process

Frank Dethier –

DELIVERY PROCESSES

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Waterfall

Agile

Frank Dethier –

INNOVATION & DELIVERY PROCESS

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• Explore new• Markets

• Technologies

• Business models

• De-risk Delivery

Deliver new

Products/Services/

Processes that

provide extra

/new value

Frank Dethier –

INNOVATION & DELIVERY PROCESS

12

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Learning EnvironmentControlled Delivery

Environment

Frank Dethier –

INNOVATION PROCESS – WHY?

Set-up process with established milestones

As precondition for release of funds

To avoid a premature scaling

Do not copy blindly your very structured Delivery

Process (to bring products & services to market)

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Enable

creativity

& learning

Managed &

well-known

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Frank Dethier –

INNOVATION PROCESS?

WHICH ONE TO CHOOSE

Industry standard ones like

Lean Start-up (originally startups)

Bell-Mason (startups – VCs)

…

Company specific ones as long as it answers

What metrics determine whether to fund an

investment proposal?

What is the decision-making mechanism?

How is funding managed?

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Frank Dethier –

New &

Existing

MarketsTrends

• Technology

• Need

• Business

• LegalInnovation

challenges

Dev

Projects to obtain

understanding of

• Technology

• Customer Need

• Business

Internal &

External Ideas

INNOVATION PROCESS S

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Strategy

Idea

selection

Frank Dethier –

New &

Existing

MarketsTrends

Innovation

challenges

Dev

Projects

Ideas

INNOVATION PROCESS S

P

O

R

C

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Strategy

Idea

selection

Frank Dethier –

Innovation

challenges

Ideas

INNOVATION PROCESS S

P

O

R

C

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Idea

selection

Frank Dethier –

Innovation

challenges

INNOVATION PROCESS

CHALLENGE

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• Generate clear challenge

• E.g. ‘How can we …’, ‘What if …’

• For which market/customers?

• Define upfront ‘good’ decision criteria

• Ensure customer is integrated

• Example

• How can we improve our brand

image in Indian market?

• How can we get a 25-year old

woman in Mumbai to rave about us

to her friends?

Frank Dethier –

Ideas

INNOVATION PROCESS

IDEA GENERATION

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• Create conditions that foster

Creativity, e.g.

• Environment

• People with different perspectives

• Ensure you involve everybody (also

more introvert)

• Assign a good moderator

• Define rules during idea generation

Frank Dethier –

Ideas

INNOVATION PROCESS

IDEA GENERATION

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SCAMPERDay in Life…

Brainstorm

From other

industries

6 thinking hats

Frank Dethier –

INNOVATION PROCESS

IDEA GENERATION

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2121

Frank Dethier –

INNOVATION PROCESS

IDEA GENERATION

S

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• Challenge your own company assumptions by placing yourself in shoes

of well-known companies

• How would Ryanair deal with our costs?

• How would Starbucks add experience?

• How would Amazon handle our customer service?

• Get inspiration from other industries

Frank Dethier –

INNOVATION PROCESS

IDEA GENERATION

S

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Frank Dethier –

INNOVATION PROCESS

IDEA GENERATION

S

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C

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Idea killers

Frank Dethier –

Ideas

INNOVATION PROCESS

IDEA GENERATION

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Solicited Idea Generations

• Organized brainstorms

• Idea campaigns

• …

Unsolicited Idea Generations

• Letterboxes

• Idea management SW

• …

Frank Dethier –

INNOVATION PROCESS

IDEA SELECTION

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Idea

selection

• Take your time (2/3)

• Reflect from customer’s perspective

• Use your defined criteria (from your Innovation strategy as well)

• Choose carefully selection team (not only managers)

• Work eventually in steps, e.g. let teams of top 5 ideas

present their case in front of management

Frank Dethier –

New &

Existing

MarketsTrends

Innovation

challenges

Dev

Projects

Ideas

INNOVATION PROCESS S

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Strategy

Idea

selection

Frank Dethier –

Dev

INNOVATION PROCESS

LEARNING PROJECTS

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Sprint 1

• Starting condition

1. Big picture goal/vision

2. Learning you want to achieve in sprint 1

• Focused assignment

• Dedicated team

• Outcome

• Learning

• Any change in big picture?

• Any missing other key learnings?

• Recommendation to (not) continue

and why

Frank Dethier –

Dev

INNOVATION PROCESS

LEARNING PROJECTS

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Sprint 2 and next sprints

• Starting condition

1. (Updated) Big picture goal/vision

2. Learning you want to achieve in sprint 2

• Focused assignment

• Dedicated team

• Outcome

• Learning

• Any change in big picture?

• Any missing other key learnings?

• Recommendation to (not) continue

and why

Frank Dethier –

Dev

INNOVATION PROCESS

LEARNING PROJECT PORTFOLIO

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“Doing the right things” by

1. Selecting projects

2. Prioritizing projects

3. Manage and follow-up of project portfolio Dev

Dev

Dev

Frank Dethier –

Dev

INNOVATION PROCESS

LEARNING PROJECT PORTFOLIO

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Overall budget and risk profile defined

by your Innovation Strategy

Include also Development/Marketing/Sales

budget afterwards

Dev

Dev

Dev

Frank Dethier –

Dev

INNOVATION PROCESS

LEARNING PROJECTS

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Create asap a

business case that

will release funds for

‘normal’ development

Or ‘fail’ asap

Frank Dethier –

INNOVATION PROCESS

LEARNING PROJECTS LEAN STARTUP

The Lean Startup provides a scientific approach

to creating and managing startups and get a

desired product to customers’ hands faster based

on key principles

Build-Measure-Learn

Validated Learning

Using well-defined process

Less relevant if your new innovations fall within

current ‘scope’ of your business

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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 –

INNOVATION PROCESS

LEAN STARTUP

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Problem/

Solution Fit

Product (MVP)

/Market FitScale

• Value Proposition

• Customer Segments

3 stages of a startup

Do I have a

problem worth

solving?

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Have I built

something

people want?

How do I

accelerate

growth?

• Cost structure

• Revenue streams

• Key activities & resources

• Customer relationships

Frank Dethier –

INNOVATION PROCESS

LEAN STARTUP

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Problem/Solution Product/Market Scale

Frank Dethier –

INNOVATION PROCESS

LEAN STARTUP

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S

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Frank Dethier –

New &

Existing

MarketsTrends

Innovation

challenges

Dev

Projects

Ideas

YOUR INNOVATION PROCESS S

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Strategy

Idea

selection

Frank Dethier –

INNOVATION PROCESS EXERCISE

Teams of 2 people

Create Innovation Process v0.1 of your company

Separate or integrated from Development process?

What are your key elements?

Discuss within your team

Time foreseen: 30 min

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S

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Frank Dethier –

New &

Existing

MarketsTrends

YOUR INNOVATION PROCESS

TRENDS

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Technology Trends

Consumer Trends

Legal Trends

Industry Trends

Frank Dethier –

New &

Existing

MarketsTrends

YOUR INNOVATION PROCESS

TRENDS

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How does your company deal with those trends?

How do you create an opportunity of them?

How do you guard yourself against it?

Frank Dethier –

YOUR INNOVATION PROCESS

TECHNOLOGY TRENDS

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How does your company deal with those trends?

How do you create an opportunity of them?

How do you guard yourself against it?

Frank Dethier –

YOUR INNOVATION PROCESS

CONSUMER TRENDS

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How does your company deal with those trends?

How do you create an opportunity of them?

How do you guard yourself against it?

Changing the Self

Quantified Self

Frank Dethier –

YOUR INNOVATION PROCESS

INDUSTRY TRENDS

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S

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How does your company deal with those trends?

How do you create an opportunity of them?

How do you guard yourself against it?

Frank Dethier –

New &

Existing

MarketsTrends

Innovation

challenges

Dev

Projects

Ideas

YOUR INNOVATION PROCESS S

P

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C

45

Strategy

Idea

selection

Frank Dethier –

YOUR INNOVATION PROCESS S

P

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C

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Strategy

Top-down focus to organizationOrganization gives input to

company strategy

Frank Dethier –

New &

Existing

MarketsTrends

Innovation

challenges

Dev

Projects

Ideas

YOUR INNOVATION PROCESS S

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Strategy

Idea

selection