This document summarizes an interactive workshop on intelligence-driven innovation and product development. The workshop covers techniques for understanding competitors, customers, and technologies through primary and secondary research analysis. It discusses frameworks for analyzing information to develop insights and recommendations. The workshop involves exercises analyzing competitor scenarios using concepts like disruptive innovation, value chains, and predicting industry change.
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Intelligence-Driven Innovation Workshop
1. Intelligence-Driven Innovation & Product Development: an Exercise-Driven, Interactive Workshop Arik R. Johnson SCIP – SNE/CT Chapter Workshop Development & Leadership Institute Innovation Presentation/Workshop CEO & Managing Director, Aurora WDC New Haven, Connecticut USA [email_address] Thursday 5 October 2006
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3. Competitors, Customers & Technologies Are Complex Interdependencies CI is about “Seeing Clearly” through Market Illusions
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5. Analysis is Key The Difference Between Data and Intelligence “ The competitor would make a good acquisition candidate. Its lean & mean structure would fit well with our current operations.” Intelligence: The insight that will allow you to make an informed decision “ After gathering more operational information and running a side-by-side profit & loss analysis, it appears the competitor has become highly efficient. It exceeds industry standards and has become a best-in-class facility.” Analysis: Distilled information “ Based on the D&B and the salesperson’s report, it appears the competitor has lost business.” Information: A pooling of these bits of facts, observations and rumors 2001: “The D&B report told us that the competitors plant had 100 employees.” 2004: “One of our salespeople just passed by the competitor’s plant and spotted only 30 cars in the lot.” Data: Scattered bits and pieces of facts, observations and rumors
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12. Different Missions, Different Approaches Specialist Slower Production Less Output, More Analytical Agenda Driven by Contact Network Lots of Subject Matter Knowledge Seeks Explanation of the Subject Investigative Very Slow, Curious, Historical Little Output, Highly Analytical Questions Official Positions, Listens to Nonspokesmen Operates Outside Routine Agenda of the Publisher Generalist In a Hurry Lots of Output, Less Analytical Agenda Driven by the Publisher Little Knowledge of Subject Matter Seeks Volume of Public Interest
13. The Duality of Intelligence Both Decisive & Incisive Sensing Incisive Scanning for Trends, there is no “Decision” to be made Recognizing “Pattern Vectors” Framework for Interpretation Implications for the Reader Bottom-Up Driven by Trends Outcome is Observation Hypothetical Decisive Frame of Reference is the Decision, Less Trend-Dependent Framework for Analysis Compares Options & Outcomes Recommendations and Trust Top-Down Driven by Issues Decision & Action vs. ‘Nariyuki’ Factual
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15. The CI Think Tank Model Tasking the Research & Analysis Bureau using by KITs & Scenarios to Deliver a Portfolio of End-User Applications
17. Impacts on Planning & Execution Your Company’s Plans and Execution Vision and Grand Strategy Strategic Plans Market Success Operational Projects and Programs Tactical Execution Other (More-or-Less) “Uncontrollables” Competitors’ Plans and Actions New Forms of Competition X Y Z P Q R A B C Indirect Competitors Direct Competitors Government and Regulatory The Economy Technology Market Trends Industry Rationalization Other Unknowns
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19. Process of Predicting Industry Change Customer Needs Operational Approach & Posture Technology & Innovation
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22. Consumers “Hire” Products to Do “Jobs” for Them Concentrate Less on What Customers “Want” and More on What Customers “Need”
24. Value Chain Evolution Theory Vertically Integrating to Improve What’s “Not Good Enough” in the company’s products and services Companies must control all those activities and combinations of activities in the value chain that drive the product performance characteristics that matter most to customers Specialists will seek to control performance drivers based on differences in motivation and skills around a modular interface in the VC. (Sword & Shield)
25. RPV Theory: Building Capabilities Processes Ways to Turn Resources into Products/Services Hiring/Training Product Dev. Manufacturing Budgeting Research Values Prioritization Criteria for Decision-Making Cost Structure Income Statement Customer Demand Opp. Size Ethics Resources Assets the Firm can Buy or Sell, Build or Destroy People Technology Products Equipment Cash/Brand/Distr.
26. Disruptive Innovation Theory Sustaining Innovations Better Products Brought to Established Markets Low-End Disruptions Target Overshot Customers with a Lower Cost Business Model New-Market Disruption Compete Against Nonconsumption Difference Performance Measure Time Nonconsumers or Nonconsuming Contexts Performance
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28. Process of Predicting Industry Change Signals of Change Strategic Choices Influencing Success Likely Outcome of Competitive Battles
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35. Process of Predicting Industry Change Breakout Discussions Customer Needs Operational Approach & Posture Technology & Innovation