The presentation covers innovation strategies that have been implemented by different companies in different industries to disrupt the market and become leaders in their industries.

1. Innovation Strategies
Leo Barella, Vice President & Chief Technology Officer
Excellus BlueCross BlueShield

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Kodak Video goes here

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“There were no digital
consumer products”
“Digital was difficult to
understand”
Corporate Culture and Processes could
not value Disruptive Innovation
“Transition from a 70-80%
margins to 3-4%”
“It was run by experienced
Kodak managers
who grew up in the Kodak style”

8. Styles of Innovation
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9. Sustaining vs. Disruptive Innovation
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Sustaining Innovation
Innovating in Response to
Customers’ Feedback
Disruptive Innovation
Innovation Pre-emptive to
Customers’ Desires

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Wallace Carothers
Pattern
Trial & Error Recognition Cause & Effect

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Pattern
Trial & Error Recognition Cause & Effect

12. Types of Innovation
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Disruptive Products

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Disruptive Products

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Disruptive Products

16. Steel Industry
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Integrated Mill Minimill

17. Steel Industry
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Integrated Mills Minimills
Steel Quality
7%
12%
18%
25-30%
55%
8%
4%
Sheets
Structural
Bars - Rods
Rebar
22%
1975 1980 1985 1990
% of Tons

18. Who’s the customer and why are they buying our products
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19. Job Mapping
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STEP EXAMPLE
Locate
CUSTOMER INNOVATION
Gather items and
information you
need to do the job
Simplify input and simplify when
and where they are available
Prepare
Setup the
environment to do
the job
Easier setup of product
and work area
Confirm
Verify that they are
ready to perform
the job
Giving information on how to
confirm readiness
Define
Determine their
goals and plan
resources
Simplify Planning

20. Job Mapping
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STEP CUSTOMER INNOVATION EXAMPLE
Execute Carry out the job
Preventing problems
or delays
Monitor
Assess whether the
job is being
successfully executed
Linking Monitoring with
Improved Execution
Modify
Make alterations to
improve executions
Reducing the need to make
alterations or the number of
alterations needed
Conclude
Finish the job or
prepare to repeat it
Designing products to simplify the
process to conclude the job

21. Innovation Evolution
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I need to get this item from here to there with perfect certainty as fast as possible

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Primary Question What Do Customers Need?
Needs Assessment Surveys & Focus Groups
Innovation Goal Planning Before Action
Innovation Outcome
Meeting Current Customer
Technology Needs
Innovation Process Structured & Linear
Organizational Models Traditional Models & Roles
What Do Customers Do?
Ethnography
Action Before Planning
Learning & Exploring
Dynamic & Spontaneous
New Structures & Quick
Development Cycles

23. Innovation Headquarters
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24. Disruptive Innovations Feed Into Portfolio
Management
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Standard Portfolio Management Process:
• Disciplined milestone definition and reviews
• Includes entire product life cycle
• Aligns technology and product development
• Technology is developed to expected level of maturity
• Continuous improvement of products and processes
Disruptive Innovation Development Process:
• Defines critical assumptions
• Rapid assessment of assumptions
• Validated assumptions pace critical technology development