Ten observations, provocations, and questions on design and innovation - presentation by Tim Leberecht, frog design, at Re:Publica, Berlin, April 15, 2010
26. INNOVATION TRIGGERS
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Internal Churn “Our new ideas are stuck in the mud of internal planning and review
cycles.”
Competition “New competitors are moving into our space and we need to do
something to defend our market position.”
Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,
etc.) but we don’t know where and how to start.”
Mining IP “We have so much IP but we cannot convert it into products that resonate
with consumers.”
Time-to-Market “Our linear product development process doesn’t allow for nimbleness and
trial and error.”
Customer Insight “Our product ideas are driven by science and engineering but fail to
recognize latent or unarticulated customer needs.”
Sustainability “We got lucky once or twice. How do we repeat our market success year
after year?”
27. INNOVATION TRIGGERS
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
28. INNOVATION TRIGGERS
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Internal Churn
Internal Churn “Our new ideas are stuck in the mud of internal planning and review
“Our new ideas are stuck in the mud of internal planning and review
cycles.”
cycles.”
29. INNOVATION TRIGGERS
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Internal Churn
Internal Churn “Our new ideas are stuck in the mud of internal planning and review
“Our new ideas are stuck in the mud of internal planning and review
cycles.”
cycles.”
Competition “New competitors are moving into our space and we need to do
Competition “New competitors are moving into our space and we need to do
something to defend our market position.”
something to defend our market position.”
Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,
etc.) but we don’t know where and how to start.”
30. INNOVATION TRIGGERS
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Internal Churn
Internal Churn “Our new ideas are stuck in the mud of internal planning and review
“Our new ideas are stuck in the mud of internal planning and review
cycles.”
cycles.”
Competition “New competitors are moving into our space and we need to do
Competition “New competitors are moving into our space and we need to do
something to defend our market position.”
something to defend our market position.”
Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,
etc.) but we don’t know where and how to start.”
Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,
etc.) but we don’t know where and how to start.”
31. INNOVATION TRIGGERS
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Internal Churn
Internal Churn “Our new ideas are stuck in the mud of internal planning and review
“Our new ideas are stuck in the mud of internal planning and review
cycles.”
cycles.”
Competition “New competitors are moving into our space and we need to do
Competition “New competitors are moving into our space and we need to do
something to defend our market position.”
something to defend our market position.”
Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,
etc.) but we don’t know where and how to start.”
Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,
etc.) but we don’t know where and how to start.”
Mining IP “We have so much IP but we cannot convert it into products that resonate
Mining IP “We have so much IP but we cannot convert it into products that resonate
with consumers.”
with consumers.”
32. INNOVATION TRIGGERS
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Internal Churn
Internal Churn “Our new ideas are stuck in the mud of internal planning and review
“Our new ideas are stuck in the mud of internal planning and review
cycles.”
cycles.”
Competition “New competitors are moving into our space and we need to do
Competition “New competitors are moving into our space and we need to do
something to defend our market position.”
something to defend our market position.”
Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,
etc.) but we don’t know where and how to start.”
Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,
etc.) but we don’t know where and how to start.”
Mining IP “We have so much IP but we cannot convert it into products that resonate
Mining IP “We have so much IP but we cannot convert it into products that resonate
with consumers.”
with consumers.”
Time-to-Market “Our linear product development process doesn’t allow for nimbleness and
Time-to-Market “Our linear product development process doesn’t allow for nimbleness and
trial and error.”
trial and error.”
33. INNOVATION TRIGGERS
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Internal Churn
Internal Churn “Our new ideas are stuck in the mud of internal planning and review
“Our new ideas are stuck in the mud of internal planning and review
cycles.”
cycles.”
Competition “New competitors are moving into our space and we need to do
Competition “New competitors are moving into our space and we need to do
something to defend our market position.”
something to defend our market position.”
Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,
etc.) but we don’t know where and how to start.”
Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,
etc.) but we don’t know where and how to start.”
Mining IP “We have so much IP but we cannot convert it into products that resonate
Mining IP “We have so much IP but we cannot convert it into products that resonate
with consumers.”
with consumers.”
Time-to-Market “Our linear product development process doesn’t allow for nimbleness and
Time-to-Market “Our linear product development process doesn’t allow for nimbleness and
trial and error.”
trial and error.”
Customer Insight “Our product ideas are driven by science and engineering but fail to
Customer Insight recognize latent or unarticulated customer and engineering but fail to
“Our product ideas are driven by science needs.”
recognize latent or unarticulated customer needs.”
34. INNOVATION TRIGGERS
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Margin Erosion “We operate in a mature industry with a mature product portfolio and our
margins are beginning to disappear.”
Internal Churn
Internal Churn “Our new ideas are stuck in the mud of internal planning and review
“Our new ideas are stuck in the mud of internal planning and review
cycles.”
cycles.”
Competition “New competitors are moving into our space and we need to do
Competition “New competitors are moving into our space and we need to do
something to defend our market position.”
something to defend our market position.”
Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,
etc.) but we don’t know where and how to start.”
Adjacent Markets “We see opportunities in adjacent markets (new segments, geographies,
etc.) but we don’t know where and how to start.”
Mining IP “We have so much IP but we cannot convert it into products that resonate
Mining IP “We have so much IP but we cannot convert it into products that resonate
with consumers.”
with consumers.”
Time-to-Market “Our linear product development process doesn’t allow for nimbleness and
Time-to-Market “Our linear product development process doesn’t allow for nimbleness and
trial and error.”
trial and error.”
Customer Insight “Our product ideas are driven by science and engineering but fail to
Customer Insight recognize latent or unarticulated customer and engineering but fail to
“Our product ideas are driven by science needs.”
recognize latent or unarticulated customer needs.”
Sustainability “We got lucky once or twice. How do we repeat our market success year
Sustainability “We got lucky once or twice. How do we repeat our market success year
after year?”
after year?”
35. INNOVATION CATEGORIES
Sustaining (Evolve) Breakout (Expand) Disruptive (Envision)
$ $ $
0 1 ^
2 3 4 5 6 7 0 1 2 3 ^
4 5 6 7 0 1 2 3 4 5 ^
6 7
Go/No-Go Go/No-Go Go/No-Go
(Director Level)
years (VP/SVP Level)
years (CEO/Board Level)
years
Short -Term Advantage Near-Term Advantage Long-Term Advantage
Sustain product life with incremental Create new products within an existing Innovate new to the world products that
enhancements and consumer benefits. product category that leverage high value lead the creation of new markets or
Since product categories exist, sustaining benefits for consumers. industries. Market acceptance may be
products are easily accepted by the market. The greater benefits of the product and the slower to gain as multiple industry
On the other hand profitability can diminish fact that it is within a know category drives standards compete for dominance.
quickly due to ease of imitation . rapid short-term growth. These products are a long term investment
These products are low risk bets with a high These product are higher risks bets with with high potential returns over the long
probability of short term returns. higher yet diminishing returns. term. Other benefits include market
dominance & strong competitive position.
Product Level Innovation Category Level Innovations Industry Level Innovation
Competitive Advantage: 1-3 years Competitive Advantage: 3-5 years Competitive Advantage : 5-7 years
72. “In the old days, brands
wanted everybody to pay
attention to them.
Now brands need to pay
attention to everybody else.”
Umair Haque
73.
74. All products and services will be SOCIAL
Where?
Social networks
What?
Social content
How?
Social publishing Social search
Social gaming Social shopping
What for?
Social impact Social currency
75.
76. “Open it up and it will design itself.”
Norman Lewis
76
82. Chief Meaning Officer
checklist
SMALL DRAMATIC SOCIAL CONVERSATIONAL PROVOCATIVE RESPONSIBLE
Micro Making sense Connecting Listening Making you think Doing good
Customizable Cohesion Community Empathy Disruption Political
Relevant Convergence Belonging Adaptive Divergence Socially responsible
Actionable Morale Identity Changing messages Deconstruction Eco-friendly
Eye-to-eye Consistency Like-minded Two-way Surprise Ethical
Direct Imagination Affinity Let go of control Shock Human rights
Instant Entertainment New people Open Unexpected Values
Accessible Cultural relevance Status Respect Unlikely Family
Sharable Characters Compassion Flow Challenging Nation
Atomized Suspense Fun Topical status quo Common Good
Comedy Love Point-of-view Unique Earth
Tragedy Friendship Attention-grabbing
Identification Hobbies Different
Fans In your face
94. “Because the purpose of business is to
create a customer, the business enterprise
has two—and only two—basic functions:
marketing and innovation.”
Peter Drucker