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©20101 ©2009 HP Confidential1
JANUARY 20, 2010
Innovation & Disruption to Win
Prepared for Hewlett-Packard
Feisal Mosleh
Fas@Juldee.com
Rights to trademarks referenced
herein, other than Juldee LLC
trademarks, belong to their
respective owners.
©20102
HP continues its astonishing
transformation under CEO Mark Hurd, from
an underperforming printer-reliant giant
into the world's largest tech company
(almost $130 billion a year in revenue),
thriving in multiple markets. Last year, it
surpassed Dell as the top PC seller and in
the process showed Apple-worthy design
chops with its sleek TouchSmart computers
featuring touch-screen functionality. HP's
$2.7 billion acquisition of 3Com -- a year
after the $13 billion deal for EDS made it
an instant IBM (#18) rival -- signals that it's
ready to take on Cisco (#17).
Source: Fast Company 2010
©20103
Agenda
– Digital – Importance of Innovation
– Innovation and Disruption
• Why innovation? What is disruption?
– Examples of Companies and Innovations
– Mobile Market Example
– Conclusion
©20104
What Does Digital Mean?
–Bits and bytes
–Not Analog
–Cool devices…
–Liberating…
–Democratization of Information
–Power to the People
©20105
What Does Digital Mean?
–Ruthlessly fast
–Low margins
–More value
• Consumers and enterprises
–Ultra competitive
• Globally
Grow sales, cost control, customer satisfaction, employee retention, or max shareholder value
©20106
– In a world of accelerating change, no competitive
advantage is sustainable –
– Innovations and new technologies almost instantly reinvent
industries, products, services, and offerings, and eliminate
any competitive advantage the old ones may have had.
–Change and threats are constants, so must be
innovation
©20107
–Creativity is the generation of new ideas.
–Innovation is the implementation of creative ideas
Creativity vs. Innovation
Innovation is the creative process that transforms new and existing knowledge
and technology into commercial value, and reconfigures existing processes in
new ways. (Source: National Competitive Council)
Value
©20108
Create Innovate Disrupt
©20109
Execution is Critical to Innovation
©201010
Innovation Being Executed
©201011
'A powerful new idea can kick around unused in a
company for years, not because its merits are not
recognized, but because nobody has assumed the
responsibility for converting it from words into
action. Ideas are useless unless used. The proof of
their value is only in their implementation.'
(Theodore Levitt)
©201012
Innovation Trinity
Source: Scient
Technical Financial
Market
©201013
Disruptive Innovations vs. ‘Displaced’ Technology
Disruptor Displaced/Marginalized
Automobiles Railway transport
Plastic Wood,metal,glass
Digital Photography Traditional Photography
Mini-Computer Mainframe
Desktop PCs Mini-Computer
Laptops Desktop PCs
CMOS video Sensors Photographic Film
Telephones Telegraphy
LEDs Light Bulbs
©201014
Why Innovate?
Fear of changing the status quo can be paralysing but if you
are not moving forward and innovating in today’s challenging
economic environment, it’s worse than standing still.
You’re effectively moving backwards.
©201015
Innovation isn’t some big bang thing. It’s something that
people do every day by challenging the system.
- Keith Yamashita, CEO & Founder, Stone Yamashita Partners
That means accepting that there is something to lose by changing the
status quo, but even more to lose from doing nothing.
Successful firms are constantly evolving - Embrace Change
©201016
The Requirements for Life
©201017
The Requirements for Innovation
and Business Creation
Diversity Environment
ViabilityTest - Execute
I
Fin
Mkt
Tech
Sponsorship
Risk taking
Resource
Plan
Execute
Iterate
Thought
Background
Perspective
©201018
Disruption
©201019
Examples of Sustaining Innovation
Satellite Radio
HD TV
HD Video
Radio
TV DVD
©201020
Audi Quattro Disrupts the Rally World!
5-cylinder turbocharged engine with permanent all wheel drive
4WD
Turbo
360-600
©201021
190e 2.5 16V
1980s – Mercedes Makes a Sports Car
©201022
Spectrum of Disruptive Innovation
DisruptiveSustaining
Degree of Innovation
WWW.
HDD Video
Nintendo Wii
Blackberry
©201023
Google’s Chrome – A Better Web Browser?
“Experience the internet faster,
safer, easier, and with more
stability.”
Browser Wars…
Search, Adwords, Chrome, Android
©201024
Google’s Chrome – A Better Web Browser?
•Word processing
•Spreadsheets
•Video editing
•(Gmail, YouTube)
•Higher performance
•Fewer crashes
•Easy access
©201025
Innovators and Disruptors
©201026
An Obsession with Customer Satisfaction
One of the ten most profitable companies in
the world (> sum of GM, Ford,
DaimlerChrysler, Nissan and Honda).
Loom
Founded by Sakichi Toyoda as a handloom company.
Began as Toyota Automatic Loom Works, a company whose looms were of the “highest quality,
lowest cost, and easiest to use.”
©201027
An Obsession with Customer Satisfaction
Oobeya (ooh-bay-yuh) = (“Big, open office”)
Cut costs, boost quality
Open discussion
•Retail turn rate- 27 vs 107
Toyota has a way of thinking. It’s not just a series of processes or incentives or targets. It’s a philosophy, a way of looking at life.
©201028
The Art of Tension
Ichre (Kaizen=continuous improvement)
Find a problem ! GREAT – Fix it
Vs. Find a problem – oops – hide/ignore it
Opposing stretch goals = creative tension
Needs innovation for a harmonious resolution
©201029
Toyota’s Target in 1988 –the Car That “Could Not Be Built”
BMW 7
Lexus LS
•5db
•120 lbs
•17 mph
•4 mpg
•Handling, acceleration and comfort
•$30,000
Speed
Weight
Styling
Acceleration
Noise
Handling
Comfort
mpg
©201030
Lexus - Not Innovating in Japan?
Lexus
2009 7 Series
GS, SC, IS
©201031
• $800
• $3.2
• #1
• Million Q1 revenues
• Billion 2008 Annualized revenues
• Retailer of Music in the USA (bigger than
WalMart for the first time)
“Apple’s music “tail” has been wagging
the computer “dog” at Apple for a
couple of years. The company makes
more money today selling music and
consumer electronics than it does
with computers.”
Source: “The Perfect Thing,” Steven Levy, Simon & Schuster, 2006
Here doggie woggie…
©201032
Apple’s iPod/iPhone – Using an Innovation
Network Successfully
•Toshiba
•Wolfson Microelectronics
•Synaptics
•Foxconn
©201033
Nokia
2008 Rank: 5
2008 Brand Value (Millions): $35,942
Parent Company: Nokia
iPhone has the buzz, but Nokia sells 8X as many smartphones.
Its reputation for quality puts it far ahead of rivals
©201034
Nokia’s Timeline
1865 Birth: Paper Mill Established
1898 Finnish Rubber Works Founded
1912: Finnish Cable Works Founded
1937: Verner Weckman Olympic Wrestler
1960: First electronics Dept. - computers
1962: First electrical device – pulse analyzer
1967: Merger founding Nokia Corporation
©201035
Nokia’s Phones
1989 2006
©201036
Nokia and Ovi
Nokia is moving from being a pure handset
manufacturer to being a service provider.
©201037
Stay in Touch and Share … at Home
and on the Move…
©201038
Dell & its Build to Order Sales Model
•Build to order
•Direct sales Direct
Horizontal
Custom
©201039
Renting Movies – Will It Ever Be The Same Again?
•Cinematch
•Fulfillment
3B
60M
©201040
Examples of Companies Who Are
Successful Innovators
– HP
– Apple
– Google
– Toyota
– Samsung
– HTC
– Vodafone
– Netflix
– Dell
– IBM
– BenQ
• P&G
• 3M
• Johnson & Johnson
• BMW
• Nike
• SWA
• Microsoft
• Intel
• GE
• Starbucks
• Frito Lay
©201041
Five takeaways re: stimulating
Innovation (3M)
1. "Give it a try--and quick!" - Essentially echoing on having a process to try out a lot of stuff, and keeping what really works.
The key here is to do something. Keep on trying something new.
2. "Accept that mistakes will be made." - Learn from the mistakes quickly, and move on. Failures are part and parcel of what
creates new innovation. Don't repeat the same mistakes.
3. "Take small steps." - Experiment, but on a small scale. When something looks promising, go all out and seize the
opportunity. This way one can do plenty of inexpensive experiments that create a funnel of would-be innovations.
4. "Give people the room they need." - Without entrepreneurship, there is no experiment. Without experiment there is no
success or failure. People need some time and room to experiment.
5. "Mechanisms - build that ticking clock!" - How do you harness creativity and build innovation? It cannot happen simply
by chance. Companies need to create practices and tangible mechanisms to experiment, try out new ideas and innovate.
Acknowledgement:Jim Collins and Jerry I. Porras - Built to Last - Successful Habits of Visionary Companies
©201042
The Importance of Failure
"Failure is our most important product."
R W Johnson, Jr.,
Former CEO, Johnson & Johnson, 1954
©201043
Opportunistic or Planned Innovations
?
– Johnson & Johnson's accidental move into Consumer Products with
discovery of "Johnson's Toilet and Baby Powder" and "Band-Aid“
– Marriot's opportunistic step into Airport Services from providing meals
in the airports to inside the airplanes,
– American Express's unintended evolution into Financial and Travel
Services - "American Express Travelers Cheque“,Tourism and Travel,
– HP's unplanned move into computers (designed its first small computer
simply to add power to its line of instruments products).
Not random luck - something bigger at work
Acknowledgement:Jim Collins and Jerry I. Porras - Built to Last - Successful Habits of Visionary Companies
©201044
The Importance of Movement
"Our company has, indeed, stumbled onto some of its new products. But
never forget that you can only stumble if you're moving."
Richard P. Carlton, Former CEO, 3M Corporation, 1950
©201045
Examples of Disruptive Innovation in Tech
©201046
Toyota Prius 1997
Top 10, 55mpg
Tax credits, 4 yr
To GO Before
©201047
Honda Insight vs. Toyota Prius
Prius $100k lux buyers
Green cred
94cu ft vs 85 cu ft
BT=$1000
Insight Prius
Price $19,800 $23,400
Nov Sales 1400 9600
mpg 41 50
Source: Companies, Autodata, U.S> Govt.
x6
©201048
I Google It 1998
Gmail
Maps, G Earth
Directions
©201049
The Modern Homewrecker
Blackberry 1999
©201050
The Modern Walkman 2003
Cheap
Legal
Movies, tunes
podcasts
©201051
Walkman vs. MP3s
First there was the Walkman
MP3s squeezed it out..
©201052
iPod vs. MP3s
Enter iPod
Took over MP3s squeezing them
Created an e2e experience
iTunes
©201053
‘Walkman’ = Phones + MP3s
©201054
Skype 2003
2.5M users 1st 4 months
$2.6B eBay
©201055
The Ultimate Networking? 2004
24M employees
Platform…
©201056
See Yourself 2005
1.65B to Google
Ads
Promotions
©201057
Wii Disrupts Gaming 2006
Wii
“overthrow of the
gods”
Wii WW sales 33M
XBOX 21M
PS3 15M
©201058
Amazon Kindle
©201059
Two Alternative Approaches to the Camera
Phone
iPhone
Razr
©201060
Sony Ericsson Xperia
•Win Mobile
©201061
Samsung Instinct
•Fast Data
©201062
LG Vu
•TV
©201063
LG Dare
•Handwriting
©201064
The Lost iPhone – PR ‘Innovation’?
During the March quarter, iPhone revenue grew 124% year-over-year to $5.4 billion,
40%
©201065
– A disruptor redefines the notion of performance by pulling
an overlooked innovation lever
• Simplicity
• Convenience
• Accessibility
• Affordability
– All of these are hallmarks of disruptive innovation
– Mastering core concepts of disruption to defend and attack
©201066
Do you want to be disrupted?
Do you want to be the disruptor?
©201067
Mobile Market Example
©201068
The Sugar Cube Miracle
z
x
y
Lens
What matters?
The cross sectional area (xy)
Z-height (z)
Z ht is affected by the lens
©201069
Laminate Substrate
CMOSCHIP
LensMount
Items come as an assembly
Sensor Area
IRFilter
3rd
LensElement
2nd
LensElement
1st
LensElement
LensBarrel
Compact Camera Module (CCM)
Advanced auto white balance
Adjusts for color shifts that affect white in
different light sources
Artifact
A blemish in the image (e.g. defective pixel)
CIF
Common Intermediate Format (352 x 288
pixels)
Flex
Flexible PCB (printed circuit board)
I-Pipe (Image Signal Processor)
Image post processing to perfect the image
MP
Mega-Pixel, (1280 x 1024) pixels
Package
Total camera module solution
VGA
Video Graphics Array (640 x 480 pixels)
©201070
CMOS Sensor Market Size by Segment
• Market approaches $4B in 2007
• Mobile >45% revenue, 75% volume in 2007
• CMOS everywhere
source: TSR 2007
TAM Volume by Application
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2004 2005 2006 2007 2008 2009 2010
Volume(millions)
0
1,000
2,000
3,000
4,000
5,000
6,000
2004 2005 2006 2007 2008 2009 2010
$(millions)
TAM Revenue by Application
Other
Medical
Security
Auto
DSLR
DSC
PC Camera
Camcorder
Mobile >=4MP
Mobile =3MP
Mobile =2MP
Mobile <=1MP
©201071
Handset Segments & Trends 2008 - 2009
Midrange
Entry
High End
>1MP
VGA-2MP
3-5MP
AF
1g, 2p
VGA + 5-8MP, AF
Opt. Zoom, Video
Image Stab., slomo
Red-eye reduction
2g,2p
Market %
& ASP
15%
> $199
45%
$100 - $199
40%
</= $99
Micron
Samsung
OV
STM
Magnachip
Typical
CompetitorsFeatures Marketing
“DSC Class”
Smart Phone
with best quality
phone camera
“DSC-like”
Camera
Upgrade
“Free” Phone
Cell Phone with
basic Camera
FREE
3MP
Dig Zoom
Xe Flash
I.S.
Flash
SEGMENT
(Premium)
(Prestige)
(Value)
8MP
O. Zoom
Micron
Samsung
OV
STM
Sony
Toshiba
Magnachip
Micron
Samsung
OV
Sony
Toshiba
1.3MP
Dig Zoom
Source: Feisal Mosleh, Videsignline Magazine 2008
Copyright Juldee LLC 2010
©201072
Evolution of Phone Camera Systems – Industry Response
Toy
• CIF, VGA, MP
• Poor display
• Poor features
• Many suppliers
2002-2005 Emerging
• 2MP, 3MP, 5MP, 8MP
• Better image quality, resolution
• Autofocus, Zoom, Xenon flash, IP
• Printable images
DSC-like
Mainstream
Today
2007-2008
• DSC image quality
• DSC user experience
• HD, wide
• Powerful I-pipes (IS etc.)
>2008/2009
DSC-class
2010/2011
• DSC/DVC IQ
• DSC/DVC experience
• Enhanced connectivity
• MM Capture
DSC/DVC
Source: Feisal Mosleh, Videsignline Magazine 2008
©201073
Handsets - Innovation
3G, 5MP, 3xOZ, Xenon
G800
HSDPA, 7MP, 5xOZ, GPS,
Wi-Fi
3.5” touch screen, nVidia 3D
N98
2MP 3.5”lcd, Wi-Fi, 8GB flash
Gmaps, Widgets, Photo editor
iPhone
HSDPA Vblogging, 5MP, AF, BestPic, PhotoFix, Xenon,
auto rotate, noise cancel, intelligent search
850i
5MP
120 fps @ QVGA
Super Slow Motion
Schneider Kreuznach optics
xenon flash
AF
Digital image stabilizer
ISO 800 night/dark shots
LG Viewty
©201074
Strategy
©201075
Strategic Vectors to Win
 EXECUTE
Overcome natural barriers to entry
Hit time windows every time
Die size, power, Image quality
Competitive price/performance
 LEVERAGE TECHNOLOGY
High IQ, Low light performance
Competitive die size
Wafer level interconnect
Create barrier to entry for competition
 LEVERAGE Market TREND
 PENETRATE MOBILE
INNOVATION
EXECUTION
DIRECTION
©201076
Approach to Creating Strategy & Roadmap
+
– Disruption to incumbents
– Focus where they aren’t
– Use historical proof points and data
BUT
– Intelligently ‘connect the dots’ of major trends
– pattern recognition
©201077
Don’t underestimate the human condition
–Human emotions vs. engineering specs
–Appeal is important!
–”Cool” sells
–Video is cool
©201078
Whose Job is Innovation?
– Technologists
– Labs
– Engineering
– Development
– Manufacturing
– Marketing
– Sales
– Support
Everyone
©201079
"Innovation comes ultimately from a diversity of
perspectives. So when you combine ideas from
different industries or different cultures, that’s when
you have the best sense of developing
groundbreaking ideas"
Frans Johansson, Author, The Medici Effect
©201080
Recent Examples of HP Innovations
©201081
©201082
Ranier
Boelzle
Cyrille de
Brebisson
Tim
Wessman
Congratulations to Ranier, Cyrille, and Tim
Q3 EBU INNOVATION CHAMPIONS!
This team was responsible for development and implementation of HP
Calculators (12c, 15c, and 12c platinum) on the iPhone Apps Store.
©201083
Sneak Attack on iPad Debut?
Win 7 – apps, multitasking
USB, SDHC – printers/cams
5 hours battery
SIM card-3G modem
©201084
HP Download Store
Choice
100’s titles. Huge selection of software &
games to personalize your PC
Quick & Easy
No driving or waiting for mail
Immediate download
Green
No wasted packaging or CD’s
Copyright Juldee LLC 2010
©201085
Packaging Innovation
Blister packaging with
Natralock material
Clamshell
packaging
• Renewable packaging, retains security, durability, visibility
• 37% less weight
• 85% less plastic
+
$
$
©201086
Keyboard EMEA Print on Demand
Brown box /
Sleeve
Ergo Warning labels on rolls (proprietary)
Product#/UPC lables
SKU Labels
Flextronics POD
AMO production
(Foxconn)
Laser printing
QSG
CD
Warranty
card
Blank KB
Violator label
- Affix by Foxconn
EMEA PODChina Suppliers
©201087
HP Value
• $300M-$500M annual revenue at maturity in land-
based seismic applications
• Additional sell through in storage, servers, and high
performance computing
HP Sensing Solutions
Market Need
• Large scale, highly
sensitive, distributive
sensor nodes
• Improved ttm, business
efficiencies
Pilot Vertical: Oil & Gas ($1.2B TAM by 2015)
Customer Solution
• 1 million node land based wireless
seismic imaging system
• Game changing: Highest sensitivity;
lowest weight; lowest power; all
wireless
• 50 TB/day, largest seismic field
network
Customer Value
• Less risk, better economics in
new fields
• Shell achieves game changing
competitive advantage in
obtaining new, high quality leases
• Improved flexibility of deployment
HP wide business solutions based on sensor networks
Pilot: Shell
Market opportunity and HP disruption
HP Disruption in Seismic Imaging
• Highly disruptive sensing technology
based on MEMS
• 4-100x more sensitive; 3-10x lower
frequency; 80% less power
• Increases resolution of imaging with high
density and large networks
• Improves resolution of key formations
with lower frequencies
Vertical Applicability
• Land Based Seismic
• Infrastructure Health Monitoring
• Condition Based Monitoring
• Inertial Navigation
Source: IPG
©201088
http://h30406.www3.hp.com/campaigns/2009/hho/photosmart/sites/en_us/index.html?jumpid=ex_R11400_go/touchprinting#/demo
©201089
Rules for Enabling Innovation
– Experiment – many times
– Invite serendipity
– Fail – and Fast
– Take your chances - Planning vs. chance
– Planning for success
• Execute the innovation impeccably
©201090
So What Can I Do? you ask yourself…
–An open mind is the most powerful innovation tool
• Challenge the norm
• Do it differently!
–Bring different points of view to the creative process
–Be a leader at all levels
–No recipe for innovation
• Need to try multiple approaches
–Success doesn’t end with Creativity
• To make technology work it must be implemented (execution!)
–Take risks - Managers need to empower
©201091
Try An Experiment – Think Differently
– What hasn’t been done vs. what has been done?
– What might they need vs. what do they want?
– What is appealing vs. what is logical alone
– Where is the future headed vs. what has been done?
– Tapping human emotion vs. using rationale
– What we can do vs. what we can’t do
– What our network can do vs. what we can do alone
©201092
"Innovation is trying to figure out a way to do
something better than it's ever been done before.“
David Neeleman, founder and CEO of JetBlue
©201093
Conclusion
– Innovation critical in new digital world
• Activate in all disciplines
• Engage the network
– We can all encourage it
• Innovative ideas come from everywhere – enable them
– To innovate effectively we must have the right
• Strategy
• Environment
• Execution capability - Testing
– Execution and value creation are key
©201094
©201095
©201096
©201097
Think think think… vs. Doing it
Tick tock tick tock
Whoops
Someone else already did it !
©201098
The End
©2010100
Further Reading
– http://www.forbes.com/2007/08/31/christensen-disruption-kodak-pf-
guru_in_cc_0904christensen_inl.html
– http://www.gartner.com/research/fellows/asset_93329_1176.jsp
– http://www.businessweek.com/chapter/christensen.htm
– The Innovator’s Dilemma by Clay Christensen
– The Innovator’s Solution by Clay Christensen
– Leading Change, John Kotter
– Connections, James Burke, BBC/Discovery
– Serious Creativity, Edward de Bono
©2010101
Ask not where the past has been,
but where is the future headed?
When will technology business people realize that historical data and
spreadsheets denoting past results do not guarantee that the future will evolve
accordingly?
©2010102
Source: Business Week Feb 2010
50 Most Innovative Companies
©2010103
Source: Business Week Feb 2010
50 Most Innovative Companies – Business
Week
©2010104 ©2009 HP Confidential104
JANUARY 20, 2010
Innovation & Disruption to Win
Prepared for Hewlett-Packard
Feisal Mosleh
Fas@Juldee.com
Rights to trademarks referenced
herein, other than Juldee LLC
trademarks, belong to their
respective owners.

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Innovation & disruption hp talk april 2010 juldee version

  • 1. ©20101 ©2009 HP Confidential1 JANUARY 20, 2010 Innovation & Disruption to Win Prepared for Hewlett-Packard Feisal Mosleh Fas@Juldee.com Rights to trademarks referenced herein, other than Juldee LLC trademarks, belong to their respective owners.
  • 2. ©20102 HP continues its astonishing transformation under CEO Mark Hurd, from an underperforming printer-reliant giant into the world's largest tech company (almost $130 billion a year in revenue), thriving in multiple markets. Last year, it surpassed Dell as the top PC seller and in the process showed Apple-worthy design chops with its sleek TouchSmart computers featuring touch-screen functionality. HP's $2.7 billion acquisition of 3Com -- a year after the $13 billion deal for EDS made it an instant IBM (#18) rival -- signals that it's ready to take on Cisco (#17). Source: Fast Company 2010
  • 3. ©20103 Agenda – Digital – Importance of Innovation – Innovation and Disruption • Why innovation? What is disruption? – Examples of Companies and Innovations – Mobile Market Example – Conclusion
  • 4. ©20104 What Does Digital Mean? –Bits and bytes –Not Analog –Cool devices… –Liberating… –Democratization of Information –Power to the People
  • 5. ©20105 What Does Digital Mean? –Ruthlessly fast –Low margins –More value • Consumers and enterprises –Ultra competitive • Globally Grow sales, cost control, customer satisfaction, employee retention, or max shareholder value
  • 6. ©20106 – In a world of accelerating change, no competitive advantage is sustainable – – Innovations and new technologies almost instantly reinvent industries, products, services, and offerings, and eliminate any competitive advantage the old ones may have had. –Change and threats are constants, so must be innovation
  • 7. ©20107 –Creativity is the generation of new ideas. –Innovation is the implementation of creative ideas Creativity vs. Innovation Innovation is the creative process that transforms new and existing knowledge and technology into commercial value, and reconfigures existing processes in new ways. (Source: National Competitive Council) Value
  • 11. ©201011 'A powerful new idea can kick around unused in a company for years, not because its merits are not recognized, but because nobody has assumed the responsibility for converting it from words into action. Ideas are useless unless used. The proof of their value is only in their implementation.' (Theodore Levitt)
  • 13. ©201013 Disruptive Innovations vs. ‘Displaced’ Technology Disruptor Displaced/Marginalized Automobiles Railway transport Plastic Wood,metal,glass Digital Photography Traditional Photography Mini-Computer Mainframe Desktop PCs Mini-Computer Laptops Desktop PCs CMOS video Sensors Photographic Film Telephones Telegraphy LEDs Light Bulbs
  • 14. ©201014 Why Innovate? Fear of changing the status quo can be paralysing but if you are not moving forward and innovating in today’s challenging economic environment, it’s worse than standing still. You’re effectively moving backwards.
  • 15. ©201015 Innovation isn’t some big bang thing. It’s something that people do every day by challenging the system. - Keith Yamashita, CEO & Founder, Stone Yamashita Partners That means accepting that there is something to lose by changing the status quo, but even more to lose from doing nothing. Successful firms are constantly evolving - Embrace Change
  • 17. ©201017 The Requirements for Innovation and Business Creation Diversity Environment ViabilityTest - Execute I Fin Mkt Tech Sponsorship Risk taking Resource Plan Execute Iterate Thought Background Perspective
  • 19. ©201019 Examples of Sustaining Innovation Satellite Radio HD TV HD Video Radio TV DVD
  • 20. ©201020 Audi Quattro Disrupts the Rally World! 5-cylinder turbocharged engine with permanent all wheel drive 4WD Turbo 360-600
  • 21. ©201021 190e 2.5 16V 1980s – Mercedes Makes a Sports Car
  • 22. ©201022 Spectrum of Disruptive Innovation DisruptiveSustaining Degree of Innovation WWW. HDD Video Nintendo Wii Blackberry
  • 23. ©201023 Google’s Chrome – A Better Web Browser? “Experience the internet faster, safer, easier, and with more stability.” Browser Wars… Search, Adwords, Chrome, Android
  • 24. ©201024 Google’s Chrome – A Better Web Browser? •Word processing •Spreadsheets •Video editing •(Gmail, YouTube) •Higher performance •Fewer crashes •Easy access
  • 26. ©201026 An Obsession with Customer Satisfaction One of the ten most profitable companies in the world (> sum of GM, Ford, DaimlerChrysler, Nissan and Honda). Loom Founded by Sakichi Toyoda as a handloom company. Began as Toyota Automatic Loom Works, a company whose looms were of the “highest quality, lowest cost, and easiest to use.”
  • 27. ©201027 An Obsession with Customer Satisfaction Oobeya (ooh-bay-yuh) = (“Big, open office”) Cut costs, boost quality Open discussion •Retail turn rate- 27 vs 107 Toyota has a way of thinking. It’s not just a series of processes or incentives or targets. It’s a philosophy, a way of looking at life.
  • 28. ©201028 The Art of Tension Ichre (Kaizen=continuous improvement) Find a problem ! GREAT – Fix it Vs. Find a problem – oops – hide/ignore it Opposing stretch goals = creative tension Needs innovation for a harmonious resolution
  • 29. ©201029 Toyota’s Target in 1988 –the Car That “Could Not Be Built” BMW 7 Lexus LS •5db •120 lbs •17 mph •4 mpg •Handling, acceleration and comfort •$30,000 Speed Weight Styling Acceleration Noise Handling Comfort mpg
  • 30. ©201030 Lexus - Not Innovating in Japan? Lexus 2009 7 Series GS, SC, IS
  • 31. ©201031 • $800 • $3.2 • #1 • Million Q1 revenues • Billion 2008 Annualized revenues • Retailer of Music in the USA (bigger than WalMart for the first time) “Apple’s music “tail” has been wagging the computer “dog” at Apple for a couple of years. The company makes more money today selling music and consumer electronics than it does with computers.” Source: “The Perfect Thing,” Steven Levy, Simon & Schuster, 2006 Here doggie woggie…
  • 32. ©201032 Apple’s iPod/iPhone – Using an Innovation Network Successfully •Toshiba •Wolfson Microelectronics •Synaptics •Foxconn
  • 33. ©201033 Nokia 2008 Rank: 5 2008 Brand Value (Millions): $35,942 Parent Company: Nokia iPhone has the buzz, but Nokia sells 8X as many smartphones. Its reputation for quality puts it far ahead of rivals
  • 34. ©201034 Nokia’s Timeline 1865 Birth: Paper Mill Established 1898 Finnish Rubber Works Founded 1912: Finnish Cable Works Founded 1937: Verner Weckman Olympic Wrestler 1960: First electronics Dept. - computers 1962: First electrical device – pulse analyzer 1967: Merger founding Nokia Corporation
  • 36. ©201036 Nokia and Ovi Nokia is moving from being a pure handset manufacturer to being a service provider.
  • 37. ©201037 Stay in Touch and Share … at Home and on the Move…
  • 38. ©201038 Dell & its Build to Order Sales Model •Build to order •Direct sales Direct Horizontal Custom
  • 39. ©201039 Renting Movies – Will It Ever Be The Same Again? •Cinematch •Fulfillment 3B 60M
  • 40. ©201040 Examples of Companies Who Are Successful Innovators – HP – Apple – Google – Toyota – Samsung – HTC – Vodafone – Netflix – Dell – IBM – BenQ • P&G • 3M • Johnson & Johnson • BMW • Nike • SWA • Microsoft • Intel • GE • Starbucks • Frito Lay
  • 41. ©201041 Five takeaways re: stimulating Innovation (3M) 1. "Give it a try--and quick!" - Essentially echoing on having a process to try out a lot of stuff, and keeping what really works. The key here is to do something. Keep on trying something new. 2. "Accept that mistakes will be made." - Learn from the mistakes quickly, and move on. Failures are part and parcel of what creates new innovation. Don't repeat the same mistakes. 3. "Take small steps." - Experiment, but on a small scale. When something looks promising, go all out and seize the opportunity. This way one can do plenty of inexpensive experiments that create a funnel of would-be innovations. 4. "Give people the room they need." - Without entrepreneurship, there is no experiment. Without experiment there is no success or failure. People need some time and room to experiment. 5. "Mechanisms - build that ticking clock!" - How do you harness creativity and build innovation? It cannot happen simply by chance. Companies need to create practices and tangible mechanisms to experiment, try out new ideas and innovate. Acknowledgement:Jim Collins and Jerry I. Porras - Built to Last - Successful Habits of Visionary Companies
  • 42. ©201042 The Importance of Failure "Failure is our most important product." R W Johnson, Jr., Former CEO, Johnson & Johnson, 1954
  • 43. ©201043 Opportunistic or Planned Innovations ? – Johnson & Johnson's accidental move into Consumer Products with discovery of "Johnson's Toilet and Baby Powder" and "Band-Aid“ – Marriot's opportunistic step into Airport Services from providing meals in the airports to inside the airplanes, – American Express's unintended evolution into Financial and Travel Services - "American Express Travelers Cheque“,Tourism and Travel, – HP's unplanned move into computers (designed its first small computer simply to add power to its line of instruments products). Not random luck - something bigger at work Acknowledgement:Jim Collins and Jerry I. Porras - Built to Last - Successful Habits of Visionary Companies
  • 44. ©201044 The Importance of Movement "Our company has, indeed, stumbled onto some of its new products. But never forget that you can only stumble if you're moving." Richard P. Carlton, Former CEO, 3M Corporation, 1950
  • 45. ©201045 Examples of Disruptive Innovation in Tech
  • 46. ©201046 Toyota Prius 1997 Top 10, 55mpg Tax credits, 4 yr To GO Before
  • 47. ©201047 Honda Insight vs. Toyota Prius Prius $100k lux buyers Green cred 94cu ft vs 85 cu ft BT=$1000 Insight Prius Price $19,800 $23,400 Nov Sales 1400 9600 mpg 41 50 Source: Companies, Autodata, U.S> Govt. x6
  • 48. ©201048 I Google It 1998 Gmail Maps, G Earth Directions
  • 50. ©201050 The Modern Walkman 2003 Cheap Legal Movies, tunes podcasts
  • 51. ©201051 Walkman vs. MP3s First there was the Walkman MP3s squeezed it out..
  • 52. ©201052 iPod vs. MP3s Enter iPod Took over MP3s squeezing them Created an e2e experience iTunes
  • 54. ©201054 Skype 2003 2.5M users 1st 4 months $2.6B eBay
  • 55. ©201055 The Ultimate Networking? 2004 24M employees Platform…
  • 56. ©201056 See Yourself 2005 1.65B to Google Ads Promotions
  • 57. ©201057 Wii Disrupts Gaming 2006 Wii “overthrow of the gods” Wii WW sales 33M XBOX 21M PS3 15M
  • 59. ©201059 Two Alternative Approaches to the Camera Phone iPhone Razr
  • 64. ©201064 The Lost iPhone – PR ‘Innovation’? During the March quarter, iPhone revenue grew 124% year-over-year to $5.4 billion, 40%
  • 65. ©201065 – A disruptor redefines the notion of performance by pulling an overlooked innovation lever • Simplicity • Convenience • Accessibility • Affordability – All of these are hallmarks of disruptive innovation – Mastering core concepts of disruption to defend and attack
  • 66. ©201066 Do you want to be disrupted? Do you want to be the disruptor?
  • 68. ©201068 The Sugar Cube Miracle z x y Lens What matters? The cross sectional area (xy) Z-height (z) Z ht is affected by the lens
  • 69. ©201069 Laminate Substrate CMOSCHIP LensMount Items come as an assembly Sensor Area IRFilter 3rd LensElement 2nd LensElement 1st LensElement LensBarrel Compact Camera Module (CCM) Advanced auto white balance Adjusts for color shifts that affect white in different light sources Artifact A blemish in the image (e.g. defective pixel) CIF Common Intermediate Format (352 x 288 pixels) Flex Flexible PCB (printed circuit board) I-Pipe (Image Signal Processor) Image post processing to perfect the image MP Mega-Pixel, (1280 x 1024) pixels Package Total camera module solution VGA Video Graphics Array (640 x 480 pixels)
  • 70. ©201070 CMOS Sensor Market Size by Segment • Market approaches $4B in 2007 • Mobile >45% revenue, 75% volume in 2007 • CMOS everywhere source: TSR 2007 TAM Volume by Application 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2004 2005 2006 2007 2008 2009 2010 Volume(millions) 0 1,000 2,000 3,000 4,000 5,000 6,000 2004 2005 2006 2007 2008 2009 2010 $(millions) TAM Revenue by Application Other Medical Security Auto DSLR DSC PC Camera Camcorder Mobile >=4MP Mobile =3MP Mobile =2MP Mobile <=1MP
  • 71. ©201071 Handset Segments & Trends 2008 - 2009 Midrange Entry High End >1MP VGA-2MP 3-5MP AF 1g, 2p VGA + 5-8MP, AF Opt. Zoom, Video Image Stab., slomo Red-eye reduction 2g,2p Market % & ASP 15% > $199 45% $100 - $199 40% </= $99 Micron Samsung OV STM Magnachip Typical CompetitorsFeatures Marketing “DSC Class” Smart Phone with best quality phone camera “DSC-like” Camera Upgrade “Free” Phone Cell Phone with basic Camera FREE 3MP Dig Zoom Xe Flash I.S. Flash SEGMENT (Premium) (Prestige) (Value) 8MP O. Zoom Micron Samsung OV STM Sony Toshiba Magnachip Micron Samsung OV Sony Toshiba 1.3MP Dig Zoom Source: Feisal Mosleh, Videsignline Magazine 2008 Copyright Juldee LLC 2010
  • 72. ©201072 Evolution of Phone Camera Systems – Industry Response Toy • CIF, VGA, MP • Poor display • Poor features • Many suppliers 2002-2005 Emerging • 2MP, 3MP, 5MP, 8MP • Better image quality, resolution • Autofocus, Zoom, Xenon flash, IP • Printable images DSC-like Mainstream Today 2007-2008 • DSC image quality • DSC user experience • HD, wide • Powerful I-pipes (IS etc.) >2008/2009 DSC-class 2010/2011 • DSC/DVC IQ • DSC/DVC experience • Enhanced connectivity • MM Capture DSC/DVC Source: Feisal Mosleh, Videsignline Magazine 2008
  • 73. ©201073 Handsets - Innovation 3G, 5MP, 3xOZ, Xenon G800 HSDPA, 7MP, 5xOZ, GPS, Wi-Fi 3.5” touch screen, nVidia 3D N98 2MP 3.5”lcd, Wi-Fi, 8GB flash Gmaps, Widgets, Photo editor iPhone HSDPA Vblogging, 5MP, AF, BestPic, PhotoFix, Xenon, auto rotate, noise cancel, intelligent search 850i 5MP 120 fps @ QVGA Super Slow Motion Schneider Kreuznach optics xenon flash AF Digital image stabilizer ISO 800 night/dark shots LG Viewty
  • 75. ©201075 Strategic Vectors to Win  EXECUTE Overcome natural barriers to entry Hit time windows every time Die size, power, Image quality Competitive price/performance  LEVERAGE TECHNOLOGY High IQ, Low light performance Competitive die size Wafer level interconnect Create barrier to entry for competition  LEVERAGE Market TREND  PENETRATE MOBILE INNOVATION EXECUTION DIRECTION
  • 76. ©201076 Approach to Creating Strategy & Roadmap + – Disruption to incumbents – Focus where they aren’t – Use historical proof points and data BUT – Intelligently ‘connect the dots’ of major trends – pattern recognition
  • 77. ©201077 Don’t underestimate the human condition –Human emotions vs. engineering specs –Appeal is important! –”Cool” sells –Video is cool
  • 78. ©201078 Whose Job is Innovation? – Technologists – Labs – Engineering – Development – Manufacturing – Marketing – Sales – Support Everyone
  • 79. ©201079 "Innovation comes ultimately from a diversity of perspectives. So when you combine ideas from different industries or different cultures, that’s when you have the best sense of developing groundbreaking ideas" Frans Johansson, Author, The Medici Effect
  • 80. ©201080 Recent Examples of HP Innovations
  • 82. ©201082 Ranier Boelzle Cyrille de Brebisson Tim Wessman Congratulations to Ranier, Cyrille, and Tim Q3 EBU INNOVATION CHAMPIONS! This team was responsible for development and implementation of HP Calculators (12c, 15c, and 12c platinum) on the iPhone Apps Store.
  • 83. ©201083 Sneak Attack on iPad Debut? Win 7 – apps, multitasking USB, SDHC – printers/cams 5 hours battery SIM card-3G modem
  • 84. ©201084 HP Download Store Choice 100’s titles. Huge selection of software & games to personalize your PC Quick & Easy No driving or waiting for mail Immediate download Green No wasted packaging or CD’s Copyright Juldee LLC 2010
  • 85. ©201085 Packaging Innovation Blister packaging with Natralock material Clamshell packaging • Renewable packaging, retains security, durability, visibility • 37% less weight • 85% less plastic + $ $
  • 86. ©201086 Keyboard EMEA Print on Demand Brown box / Sleeve Ergo Warning labels on rolls (proprietary) Product#/UPC lables SKU Labels Flextronics POD AMO production (Foxconn) Laser printing QSG CD Warranty card Blank KB Violator label - Affix by Foxconn EMEA PODChina Suppliers
  • 87. ©201087 HP Value • $300M-$500M annual revenue at maturity in land- based seismic applications • Additional sell through in storage, servers, and high performance computing HP Sensing Solutions Market Need • Large scale, highly sensitive, distributive sensor nodes • Improved ttm, business efficiencies Pilot Vertical: Oil & Gas ($1.2B TAM by 2015) Customer Solution • 1 million node land based wireless seismic imaging system • Game changing: Highest sensitivity; lowest weight; lowest power; all wireless • 50 TB/day, largest seismic field network Customer Value • Less risk, better economics in new fields • Shell achieves game changing competitive advantage in obtaining new, high quality leases • Improved flexibility of deployment HP wide business solutions based on sensor networks Pilot: Shell Market opportunity and HP disruption HP Disruption in Seismic Imaging • Highly disruptive sensing technology based on MEMS • 4-100x more sensitive; 3-10x lower frequency; 80% less power • Increases resolution of imaging with high density and large networks • Improves resolution of key formations with lower frequencies Vertical Applicability • Land Based Seismic • Infrastructure Health Monitoring • Condition Based Monitoring • Inertial Navigation Source: IPG
  • 89. ©201089 Rules for Enabling Innovation – Experiment – many times – Invite serendipity – Fail – and Fast – Take your chances - Planning vs. chance – Planning for success • Execute the innovation impeccably
  • 90. ©201090 So What Can I Do? you ask yourself… –An open mind is the most powerful innovation tool • Challenge the norm • Do it differently! –Bring different points of view to the creative process –Be a leader at all levels –No recipe for innovation • Need to try multiple approaches –Success doesn’t end with Creativity • To make technology work it must be implemented (execution!) –Take risks - Managers need to empower
  • 91. ©201091 Try An Experiment – Think Differently – What hasn’t been done vs. what has been done? – What might they need vs. what do they want? – What is appealing vs. what is logical alone – Where is the future headed vs. what has been done? – Tapping human emotion vs. using rationale – What we can do vs. what we can’t do – What our network can do vs. what we can do alone
  • 92. ©201092 "Innovation is trying to figure out a way to do something better than it's ever been done before.“ David Neeleman, founder and CEO of JetBlue
  • 93. ©201093 Conclusion – Innovation critical in new digital world • Activate in all disciplines • Engage the network – We can all encourage it • Innovative ideas come from everywhere – enable them – To innovate effectively we must have the right • Strategy • Environment • Execution capability - Testing – Execution and value creation are key
  • 97. ©201097 Think think think… vs. Doing it Tick tock tick tock Whoops Someone else already did it !
  • 99.
  • 100. ©2010100 Further Reading – http://www.forbes.com/2007/08/31/christensen-disruption-kodak-pf- guru_in_cc_0904christensen_inl.html – http://www.gartner.com/research/fellows/asset_93329_1176.jsp – http://www.businessweek.com/chapter/christensen.htm – The Innovator’s Dilemma by Clay Christensen – The Innovator’s Solution by Clay Christensen – Leading Change, John Kotter – Connections, James Burke, BBC/Discovery – Serious Creativity, Edward de Bono
  • 101. ©2010101 Ask not where the past has been, but where is the future headed? When will technology business people realize that historical data and spreadsheets denoting past results do not guarantee that the future will evolve accordingly?
  • 102. ©2010102 Source: Business Week Feb 2010 50 Most Innovative Companies
  • 103. ©2010103 Source: Business Week Feb 2010 50 Most Innovative Companies – Business Week
  • 104. ©2010104 ©2009 HP Confidential104 JANUARY 20, 2010 Innovation & Disruption to Win Prepared for Hewlett-Packard Feisal Mosleh Fas@Juldee.com Rights to trademarks referenced herein, other than Juldee LLC trademarks, belong to their respective owners.

Notas do Editor

  1. We are part of the most amazing era in human history Where a great idea can ignite a revolution – and be implemented not by a huge conglomerate but by a guy in his basement/garage Facebook Linux Ebay Google Hotmail The list goes on…
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  10. In 1983 he proposed a definition for corporate purpose: The purpose he said is to create and keep a customer. His words are an authoritative and insightful statement about the purpose of an enterprise. They go far beyond the hackneyed belief that business exist only to make money The key question that all managers must be able to answer, he advised, is “What business are you in?” The railroads, for example, “let others take customers away from them because they assumed themselves to be in the railroad business instead of the transportation business,” he wrote. Nearly a quarter century later, Levitt created a still-raging controversy in the worldwide business community with his 1983 HBR article “The Globalization of Markets.” Besides popularizing the word “globalization,” he asserted that new technologies had “proletarianized” communication, transportation, and travel, creating a new commercial reality—the emergence of global markets for standardized consumer products at lower prices, thanks to economies of scale – a sea change that was especially evident in companies such as Coca-Cola, Kellogg’s, and McDonald’s. He insisted that the future belonged not to the multinational corporation, but to the “global corporation” that did not cater to local differences in taste.
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  49. If Apple sticks to the timeline established with earlier models, a new iPhone would be shown off in June or July. The prototype that was in Gizmodo's possession apparently differs from existing iPhones in several key ways, both feature-wise and cosmetically. It includes a front-facing video chat camera, an improved regular back camera, a camera flash, a better display, a micro-SIM (Subscriber Identity Module) card, and more. It will also no doubt run the previously announced iPhone version 4.0 software, which among other new features will permit you to run multiple apps at once. The lost phone saga began the night of March 18, according to Gizmodo, when an Apple software engineer identified by Gizmodo as Gray Powell inadvertently abandoned the device on a bar stool in a Silicon Valley beer hall. Another patron ended up with the device and apparently tried to return it to Apple. Gizmodo says no one there took him seriously. But Apple knew the device was missing and by the next day had remotely wiped its data. The phone eventually ended up at Gizmodo, which paid $5,000 to the person who found it, in Chen's words "to do the due diligence to make sure it was real."
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  61. These are the first revenue generating HP applications to be sold on the iPhone Apps Store. The HP Calculator applications have sold over14k units generating almost $200k in revenue.
  62. The tablet, which is equipped with 1.6-GHz Intel Atom Z530 processor, has an 8.9-in. 1024-by-600 capacitive touch-screen display, according to Engadget. The high-end and low-end models both have a five-hour battery, and an SDHC slot, a USB port, a SIM card slot for an optional 3G modem and a dock connector. Dan Olds, an analyst at Gabriel Consulting Group Inc., said HP's device looks to be a strong machine, but it will have stiff competition out of the box, since the iPad hype is likely to continue. "On the face of it, HP's Slate might be a better machine for people who aren't already fully vested in the Apple ecosystem," said Olds. "HP's device runs Windows 7, so it can run software that people already know and have. It looks like it can multitask -- something the iPad can't do. And it has the ability to easily connect to other devices like printers and cameras -- another place where the iPad comes up short." Rob Enderle, principal analyst at Enderle Group, said the HP tablet is an attractive device, but it falls short when it comes to battery life. The HP Slate can reportedly run up to five hours on battery power, while the iPad can get 10 to 11 hours. Ceding such an advantage to a competitor wouldn't bode well for a device that is already far behind on the hype meter.
  63. EMEA has low keyboard volumes but high language needs and our current MOQ’s are too large for each language.  Therefore we are using POD (Print on Demand) to enable keyboard sales. We source as much of the individual parts of the product from China (low cost region) and then create the specific localized version in region when we know what products we need. China suppliers create blank keyboards (CDs, QSG, warranty card, etc) and ship in brown craft box.  Also create final packaging as a generic outer box.  We also source stickers for the outer box from China suppliers that will be identify the specific sku/UPC.   All this is shipped to the Flextronics who will print on demand the keyboard for the specific language needed and affix the necessary SKU/UPC stickers.  The product is then shipped to Foxconn where they put the Violator label (identifies the keyboard language) on outside of box.
  64. 4-100x more sensitive; 3-10x lower frequency; 80% less power Large networks possible Improved resolution
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  67. 2 years ago, U.S. companies dominated our Most Innovative Companies ranking, easily outnumbering corporations based outside of America. But now that the global economy seems to be growing again, senior executives surveyed by the Boston Consulting Group (BCG) no longer consider the U.S. the be-all and end-all in innovation. Yes, Apple reigns as No. 1 again, trailed by silver medalist Google. And Microsoft and IBM find themselves back in the top five, based on BCG's global poll. But for the first time ever, more companies on our Top 50 are based outside the U.S. China's rise is the fastest. A year ago, its only representative was Lenovo, at 46. This year Greater China is tied with Asia's postwar powerhouse, Japan, thanks to showings by BYD (8), Haier Electronics (27), Lenovo (29), China Mobile (44), and Taiwan-based HTC (47). To make room for 2010's freshmen, a half-dozen American giants on 2009's list got dumped: AT&T, ExxonMobil, 3M, Johnson & Johnson, Southwest Airlines, and Target. For more details on the ranking,
  68. 2 years ago, U.S. companies dominated our Most Innovative Companies ranking, easily outnumbering corporations based outside of America. But now that the global economy seems to be growing again, senior executives surveyed by the Boston Consulting Group (BCG) no longer consider the U.S. the be-all and end-all in innovation. Yes, Apple reigns as No. 1 again, trailed by silver medalist Google. And Microsoft and IBM find themselves back in the top five, based on BCG's global poll. But for the first time ever, more companies on our Top 50 are based outside the U.S. China's rise is the fastest. A year ago, its only representative was Lenovo, at 46. This year Greater China is tied with Asia's postwar powerhouse, Japan, thanks to showings by BYD (8), Haier Electronics (27), Lenovo (29), China Mobile (44), and Taiwan-based HTC (47). To make room for 2010's freshmen, a half-dozen American giants on 2009's list got dumped: AT&T, ExxonMobil, 3M, Johnson & Johnson, Southwest Airlines, and Target. For more details on the ranking,
  69. We are part of the most amazing era in human history Where a great idea can ignite a revolution – and be implemented not by a huge conglomerate but by a guy in his basement/garage Facebook Linux Ebay Google Hotmail The list goes on…