An introduction to a better way to come up with better ideas that lead to killer innovations ....

1. Killer Innovations Introduction to a better way to innovate Philip McKinney [email_address] www.killerinnovations.com

4. Technology Adoption is Accelerating Phone 74 years Radio 38 years PC 16 years TV 13 years Internet 2 years Blogs 1 year How long does it take to get to 50 million users?

5. The Innovation Reality Innovation Gap The shortfall between a organizations rapidly rising need for ideas/innovations and their inadequate supply Innovation Delay The delay between the time when decisions to adopt strategic innovations are made and their eventual impact to the organization.

6. Innovation Impact Innovation has increased in importance over the last 10 years Innovation plays an important role in assessment of company value Confident in ability to manage and measure innovation impact 35% 73% 92% Source: Arthur D. Little Research 0% 20% 40% 60% 80% 100%

9. Value From Innovation R&D Incremental Innovations to existing offerings Creating new offerings/markets/industries Source: Harvard Business Review, October 2004 86% 14% Revenue 62% 38% Margin 39% 61%

10. What’s wrong with the current approaches to find ideas?

13. Killer Innovations

14. What is a killer innovation? A Killer Innovation is defined as significant and highly profitable departures from current offerings or practices that is difficult to imitate

18. Tool: Focus

19. Focus the search Moving into new competitive arenas Expansion into new geographies Improvement in industry structure New or existing customers Innovation in products or services Innovation in value delivery system

20. Search Areas for Innovation Six degrees of freedom Such as … Creating a new business by selling existing products/services to existing or new, unfamiliar customer segment Creating a new product or service, normally in a cocooned manner Creating an innovation that redesigns the business system sufficiently to alter the value proposition Changing the value proposition, value delivery system, or competitive relationships that improve/change the industry structure or redefine the industry Expanding into a new geographic area with high value-added transfer from existing geography or when the activity is new Developing a new business in an industry within which a company has not previously competed or when there is no overlap in customer value proposition New/Existing customers Innovation in products or services Innovation in value delivery system Improvement in industry structure Expansion into new geographies Moving into new competitive arenas Source: Techtrend Group

21. Focus on the customer YUPPIES Young Urban Professionals YUFFIES Young Urban Failures MOBY/DOBY Mom/Dad Older – Baby Younger WOOFS Well Off Older Folks SKIPPIES School Kids with Income + Purchasing Power “ Sandwichers” Adults caught between caring for their children and their older parents Which are the right segments?

22. Tool: Ideation

28. Suspend Disbelief Let’s shelve that for the time being Who is going to do it? I have something better. We tried that before. It won’t fit our operation. It’s against all our combined logic. Not enough return on investment. It’s great, but . . . . . . Someone must have already tried it. I thought of that a long time ago. We can’t afford that. You’ll never get approval. You’re on the wrong track. Don’t rock the boat. The market it not ready yet. It’s not a new concept.

29. Tool: Rank The Ideas

32. Tool: Execution

33. Execution = Stage Gate Management Source: Techtrend Group “ The Best” use some from of a Milestone/Stage Gate process to introduce new products and services

34. Skills: Observation

35. What do you see?

36. What do you see? Minimum space which can represent the full alphabet! Look beyond the obvious ….

38. Skills: Changing Perspective

39. What is half of thirteen?

40. Half of thirteen 6.5 6 or 7 (rounded) “ thir” and “teen” XII = VII and IIV(split horizontal) 1 and 3 . . . How many more can you come up with? Be careful .. Don’t assume the definition of words (e.g. “half”)

41. Benefits of KI

43. Lessons Learned

45. Thank you Q & A