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Strategy Maps: Innovation Process - A Book by Robert S Kaplan & David P Norton

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This presentation is group presentation work for Knowledge Management System Development I class at Applied Psychology, Graduate School, University of Indonesia

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Strategy Maps: Innovation Process - A Book by Robert S Kaplan & David P Norton

  1. 1. Meet Bob.
  2. 2. Bob is sad.Bob is #galau.
  3. 3. Don;t be fooledby my MIB look. I am a CEO, mind you.
  4. 4. Bob’s company, AutoMotor, enjoys sales. Stale sales.
  5. 5. Bob decided,AutoMotor needsto increase sales. He needs to innovate.
  6. 6. ...butHOW?
  7. 7. A good friend sent Bob apackage which contains...
  8. 8. A Book and A Magazine.How Do They Help?
  9. 9. This shows This tells Bob how Bob about innovationinnovation. works.
  10. 10. Bob believes...• innovation applies to products, business process and business model; and• there is no such thing as generic innovation process.
  11. 11. Bob wants innovation that reflectsStrategy MapsHe learns...
  12. 12. AutoMotor’s Long Term ShareholderStrategy Maps Value Manage total life-Financial Revenue from Gross Margins cycleProductionPerspective New Products New Products CostsCustomer High Performance Extend into newPerspective First to Market Products markets Identify Opportunities Manage the portfolio Design and Develop Launch • Anticipate customer • Choose and manage ix of Manage products through Ramp-up time needs projects development stage Production cosr, quality,Internal • Discover new • Extend products ro new Reduce development cycle timePerspective opportunities applications time Acchieve initial sales goal • Collaborate Reduce development sycle time Human Capital Information Capital Organizational CapitalLearning andGrowth A Culture of Multidisciplinary Technology to Explore,Perspective Creativity and Skills Integrate, and Speed to Market Innovation
  13. 13. Case Studies• Innovation• Drivers• Impacts
  14. 14. Case Studies Long-Term Shareholder ValueFinancial Manage Total Revenue From Gross Margins:Perspective Life-Cycle New Products New Products Production CostsCustomer High Performance Extend NewPerspective First to Market Products MarketsInternalPerspectiveLearning Information Capital: Organizationand Growth Human Capital: Technology to Explore, Caoital: A culture ofPerspective Multidisciplinary Integrate and Speed to creativity and Skills Market innovation
  15. 15. Jamsostek• E-Services (registration, payment, claim)• Government (BPJS)• Penetrate new market
  16. 16. KFC & Hoka2 Bento• Oner order number, marketing programs, CD selling• Customer demand, more emotional customers, local pride• No 1 Top of Mind: fastfood
  17. 17. Amaris• Low budget, efficient, no-fuss hotel• Customer demand• Higher growth (outlets and occupancy)
  18. 18. JNE• Pesona and Pelikan (many-to-many business process)• Opportunity• Fleet numbers growth (potentially 400%, 2012)
  19. 19. Jawa Pos• Non-stop daily newspaper, young broadsheet, all color-pages• Company vision; opportunity• Strong positioning
  20. 20. D’Cost• IT-influenced operations (self, online, budget order, etc)• Company vision (efficiency)• Strong positioning
  21. 21. Cabe Payung• Refilled chili paste, non-destructible packaging• Survival• Lower selling cost (production, transportation, storage), leaner supply chain
  22. 22. WHAT: Objects to Innovations? Products (goods and services). Exp: Pesona by JNE Business process. Exp: multi-skilled employees by Amaris Business model. Exp: music CD sales by KFC
  23. 23. WHAT: INNOVATION OUTPUTS Customer acquisition and growth. Exp: BPJS by Jamsostek Margin enhancement. Exp: Music CD sale by KFC Customer loyalty. Exp: Budget order by D’Cost. Others?
  24. 24. WHAT: Type of Innovation Basic research and advanced development Exp: non-destructible packaging by Cabe Payung
  25. 25. WHAT: Type of Innovation Breakthrough development Exp: iPad
  26. 26. WHAT: Type of Innovation Platform development Exp: Prius to Prius Hybrid to Prius Electric
  27. 27. WHAT: Type of Innovation Derivative development Exp: Mini Cooper to Mini Family
  28. 28. WHAT: Type of Innovation Alliance Exp: A380 by Airbus and Rolls Royce
  29. 29. WHY: Innovating?
  30. 30. WHY: Innovating?• Survival? Exp: non-destructible packaging by Cabe Payung• Diversification? Exp: Pesona by JNE• Business expansion? Exp: BPJS by Jamsostek• Others?
  31. 31. WHO: Is Involved in Innovation?All employees!Exp: Jawa Pos Me too?
  32. 32. How Bob Can Use AutoMotor’s Capital to Innovate?
  33. 33. HOW: Innovation Process• Funnel model Exp: Rating menu by D’Cost• Stage-gate model Exp: Think tank team by JNE• Waterfall model Exp: ?• Milestone model Exp: ?
  34. 34. HOW: Innovation Process Funnel ModelCustomerNeeds Concept Product Prototype Production Release Generation design Testing & selectionTechnologicalpossibilities Stage Gate Model Penilaian Pengem ide awal Konsep Pengujian Launch bangan
  35. 35. HOW: Innovation ProcessIdentify opportunities: • Anticipate customer needs • Discover new opportunities Exp: Pesona by JNE
  36. 36. HOW: Innovation ProcessManage R&D portfolio• Choose and manage mix of projects• Extend products to new applications• CollaborateExp: Featured newspaper pages by Jawa Pos
  37. 37. HOW: Innovation ProcessDesign & develop new products and services• Manage products through development stages (Concept dev, product planning, detailed product & process engineering)• Reduce development cycle time (on time, total time)• Reduce development costs (Budget vs actual spending at each level)Exp: the opening of 3 hotels in 1 month by Amaris
  38. 38. HOW: Innovation ProcessBring to market• Ramp-up time• Achieve initial sales goals (effective marketing, distribution, sales)Exp: various promotion program by D’Cost
  39. 39. HOW: To Measure Innovation Success? Any experience?
  40. 40. HOW: To Keep Organisation Innovative?Needs to:• have dedicated team to follow up ideas,• support to resources ,• perfect timing (link to company calendar), and• clear reward mechanism.(Tanadi Santoso)
  41. 41. HOW: To Keep Organisation Innovative?Needs teams and employees with:• Adokrasi – teamwork spirit• Ambidekster – loves structure and chaos(Avanti Fontana)
  42. 42. HOW: To Keep Organisation Innovative?Needs leadership that encourages, appreciatesand demonstrates creative thinking(Yoris Sebastian)
  43. 43. What’sthe idea, Bob?
  44. 44. Endro Catur NugrohoMarlisa KurniatyMarvin MahadharmaMudzamil M Fickry Suadu