Slides for workshop 1 of the InterTrade Ireland Challenge Programme. Workshop was in Dublin and Belfast on the 11th and 12th of October 2011 respectively.
It covered basic idea generation techniques, understanding what
Youth Involvement in an Innovative Coconut Value Chain by Mwalimu Menza
InterTrade Ireland Challenge Programme Workshop 1
1.
2. Today’s Purpose
• More PROFITABLE
products or services
(new or improved)
Property of
Teach a
Reliable System • More PROFITABLE
customers & markets
for Accelerating
Profitable Growth
4. Property of
History
1. Founded in 1989
2. By George P. Burdell after he was laid off
3. Created Red Devil Security System in his Garage
5. THE RED DEVIL
Security System
Property of Unique Features
• Cross Zone
• Flash Memory
• AES
• Sleek Control Panel
6. THE RED DEVIL
Security System
Primary market is the 6,000,000 Small Businesses
Misc. Small
Businesses
Property of Jewelry
Stores
Consumers
7. THE RED DEVIL
Security System
Sales Trend
US Competition Cloned Us
China Competition
Property of
Introduced
Won Bid
Lean
for Tiffanys Made Us Price
Competitive
8. Owner and Founder
George P. Burdell
Property of to celebrate the
Has gone to Hawaii
Lean Turnaround.
He’s not had a holiday since 1989.
9. THE RED DEVIL
Security System
Sales Trend
Property of
Today
10. Property of
The team has analysed what’s
happened ... and sent a report
to George...
11. We Need Ideas For
Property of
PROFITABLE GROWTH
5 Minutes
to work with your team
16. Innovation Success Factors
Discovered by
REVERSE ENGINEERING
what separates winners from losers
Property of
4,000+ ideas were studied
Over 2,000 Academic Journal Articles Reviewed
23. “If you’re not Monopoly
unique you’d
Property of
better be
cheap.”
Doug Hall
Commodity
24. Quick Test for Meaningful Uniqueness
Are your profit margins...
10% 20% 50%
Property of industry?
higher than your
If not, then you are
NOT meaningfully unique
25. Why the Focus on
PROFITABLE GROWTH?
Only 1 in 7
small businesses
Property of
close leaving debt
Over 80% Close Because
“It’s not worth the effort”
32. 6 Key Learning Concepts
1. Dramatic Difference
2. Overt Benefit Difference
3. Real Reason to Believe Difference
Property ofStimulus
4. Explore
5. Leverage Diversity
6. Drive Out Fear
Agenda --- Basic then ADVANCED
33. Your Simulation Workbook
Put your name on it!
Everyone has a different COLOR
on the front of their workbook
Property of
Notes from the presentation
are placed throughout the book
34. Process Starts with An Assessment
Readiness to Create and Execute Profitable Growth
Property of
35. Why Are We Here?
Why do we at Buzz Electronics
need to change our system for
Property of
accelerating profitable growth?
10 Minutes
to work individually
& with your team
Handout + Pages 4 & 5
36. Report Out!
thunderous applause
Property of
guaranteed
37. 6 Key Learning Concepts
1. Dramatic Difference
2. Overt Benefit Difference
3. Real Reason to Believe Difference
Property ofStimulus
4. Explore
5. Leverage Diversity
6. Drive Out Fear
Agenda --- Basic then ADVANCED
38. Dramatic Difference
You TRIPLE your odds of success when
you offer a DRAMATIC DIFFERENCE in
Overt Benefit & Real Reason to Believe
Property of
Dramatic Difference Probability of Success
Low Dramatic Difference 14%
Medium Dramatic Difference 40%
High Dramatic Difference 53%
39. Average % Profit Margin vs Core Business Strategy
16
15
14
13
12
Property of
11
10
9
8
7
Low Cost Quick Delivery Voice of Customer High Quality Innovation
Georgia Institute of Technology
n=738
40. 370%
Greater chance
of profitable
Property of
success for ideas
that are
Extremely/Very
Unique
41. RADICAL Innovation
versus Incremental Innovation
Company
Valuation
Property of 7X
Marketing
Effectiveness 9X
42. Companies That It’s NOT the
Patent Grow Certificate
5X Faster
Property of
It’s the
MINDSET!
43. THE FIRST!
THE ONLY!
Property of
New Customers love
NEWS & hope
44. 6 Key Learning Concepts
1. Dramatic Difference
2. Overt Benefit Difference
3. Real Reason to Believe Difference
Property ofStimulus
4. Explore
5. Leverage Diversity
6. Drive Out Fear
Agenda --- Basic then ADVANCED
45. Overt Benefit Difference
You TRIPLE the effectiveness of
your marketing efforts by OVERTLY
communicating your customer benefit
Property of
Low Overt Benefit
Probability of Success
13%
Medium Overt Benefit 26%
High Overt Benefit 38%
46. Features are not Benefits
Features are the
- Facts
Property of
- Figures
- Technology
- and Details
That make up your offering
47. Benefits are…
WHY should I care?
I = the customer
Property of will make you
“Our product
Smarter...
Faster...
Healthier...”
51. Property of
feature benefit
Contains Fast Teething
Benzocaine 7.5% Pain Relief
52. WHY should I care?
WHY should I care?
WHY should I care?
Property of
WHY should I care?
WHY should I care?
53. Features to Benefits
Turn 3 Unique Features
of the Red Devil
into OVERT Benefits
Property of
Work individually then
work with your team
15 mins
Pages 6-7
56. NEW Target Audience
Those who don’t compete
WARNING
This Electric Cooker is
Property of ILLEGAL in Competitions
It gives the user an
UNFAIR ADVANTAGE
as the even heating
makes it too easy to
Make Perfect BBQ Every Time
57. 6 Key Learning Concepts
1. Dramatic Difference
2. Overt Benefit Difference
3. Real Reason to Believe Difference
Property ofStimulus
4. Explore
5. Leverage Diversity
6. Drive Out Fear
Agenda --- Basic then ADVANCED
58. Overt Benefit Real Reason to
Difference Believe Difference
Property of
gets customers closes the sale
excited
59. If you’re promising a
BENEFIT DIFFERENCE
Then…
Property Be Doing
You MUST of
SOMETHING DIFFERENTLY
(i.e. have a “Reason to Believe” Difference)
60. Real Reason to Believe Difference
You DOUBLE your odds of Success when you
Communicate a REAL REASON TO BELIEVE
That your OVERT BENEFIT will be delivered.
Property of
Real Reason To Believe Probability of Success
Low Real Reason to Believe 18%
Medium Real Reason to Believe 29%
High Real Reason to Believe 42%
70. Five Strategies for adding
Real Reason to Believe
Probability of Success
Holding all else constant
Property of
• 1. Tell the Truth
2. Testimonial
3. Pedigree (Methods, Materials)
42%
41%
41%
4. Data or Demonstration 45%
5. Guarantee (That’s “risky”) 60%
“risky” to you, not to the client
72. expert TESTIMONIAL
The Service: Laser Vision Correction
Property of
The Benefit: Near Perfect Vision
The Real Reason to Believe:
Testimonials from DOCTORS who have
used this DOCTOR for Eye Surgery
73. PEDIGREE
“Arguably the Best Whisky in
the World.”
Dave Broom
Whisky Magazine
“The Greatest All Rounder in the
Property of
World of Malt Whisky.”
Michael Jackson
Whisky Expert
“The world’s greatest distilled spirit
at the present time. Buy what ever
you can find.”
Paul Pacult
Spirit Journal Retaste 12.07
Overt Communication of
Pedigree Grew Sales 30%+
83. Real Wisdom is about looking innocently….
“We find ourselves looking at the same
old data, but we now see it in a
Property of
dramatically different way. We
experience another valid - and
sometimes more significant way of
understanding what is.”
Copthorne Macdonald
84. Like when you FIRST started your
company or started your job…
Property of
85. 6 Key Learning Concepts
1. Dramatic Difference
2. Overt Benefit Difference
3. Real Reason to Believe Difference
Property ofStimulus
4. Explore
5. Leverage Diversity
6. Drive Out Fear
Agenda --- Basic then ADVANCED
86. Leverage Diversity
Diversity multiplies the impact of stimulus.
Property of
Diversity of Thinking
Low Diversity
# of practical ideas invented
19
Medium Diversity 30
High Diversity 46
93. For Example…
Uniqueness Mining
Property ofhave tonnes
Our sensors
of extra memory
Idea...
94. Use the memory to add a
computer game to the system
Property of
Security System PLUS
Mission Impossible Game
95. Buzz Ideas
PAIR UP TO
INVENT IDEAS
for new
Property of
PRODUCTS / SERVICES
for BUZZ Electronics
ON Pages 10 & 11
using stimulus
from pages 8 & 9 15mins
99. CHALLENGE
The more Dramatically Different
Property The Greater The
of
CONFUSION
100. Confusion Clarity
Barrier compositions and articles Cancer-Safe Fast Food Tub
produced with the compositions
A stable, aqueous barrier coating
composition includes: (a) prolamine;
(b) cold water insoluble polymer; (c)
The first biodegradable fast food
water; (d) water-soluble co-solvent; sandwich container that provides
Property of
and (e) stabiliser. The composition,
when applied to a substrate,
produces an article having a high
grease protection without the
chemicals that have been found to
cause cancer.
surface energy and resistance to oil
and grease penetration. A method of
producing the article involves
applying the composition to a
substrate...
101. Hot Water Tap
Confusion
The finest quality tap available. Clarity
Made from heavy cast brass
patterns, copper tubing with Our Industrial Water Taps...
stainless steel and aluminium
Property of
accessories, these faucets are
1. Provide 2 times greater flow
19 vs. 6 gallons per minute at 25 psi
designed, built and tested to last
for the life of your plumbing
2. Installs in half the time
system. Use a standard 1 3/8ths drill bit
vs. Chiseling a 3 inch hole
They’re the BEST Available!
109. Golden Rule of Clarity
Let a customer say NO…
because what you offer doesn’t apply to them.
Propertylet a customer say
But NEVER of
NO because they don’t
understand what you’re offering.
110. Our Focus:
New products / services
Property of
for Buzz Electronics
112. Buzz Ideas
Team adds CLARITY
Property of
Write idea on GREEN Card
Use pages 12-13 as guidance
113. Vote at Table
Use ALL of your coins
Where should
Property of we Invest
George’s Money?
Your Opinion On The Ability Of This Idea to
Accelerate Profitable Growth
114. You can vote Or You can
ALL on ONE SPLIT your Vote
Property of
118. Why do we hope a miracle will occur?
Property of
119. The Innovation Systems Way to Leverage Group Diversity
1. INDIVIDUALS 2. CREATE with Partner
Explore STIMULUS Leverage DIVERSITY
Property of
10 Minutes
20 Minutes
3. LISTEN & LEARN from Team
Drive Out FEAR
20 Minutes
122. Innovation Cost
G
INCREASIN
Pace of Innovation
ACCELERATING
Property of
Resources
CONSTRAINED
Customers
more DEMANDING
123. Best Place To Look for Stimulus
Competitive
/ Customer
Property of
Scouting
Technology 5X
Scouting More Effective
Journal of Product Innovation Management 2005;22:258
125. OPEN INNOVATION
is the Future
Old World New World
Property of
All Smart People
work for us and we
Connecting Outside means
85% Increase in R&D
do it all ourself productivity
Not invented here Reapply with Pride
We don’t partner with Our biggest competitor is
competitors our biggest customer
126. OPEN INNOVATION
it’s about buying
it’s about selling
it’s about whole ideas
Property of
it’s about parts of ideas
it’s about trademarks
it’s about patents
it’s about business models
128. Companies are Desperate
Innovation Success is Poor
Only 4.5% of projects
meet ROI Goals
Success
Property of
Failure
Boston Consulting
Group 32% Odds versus 4.5% odds
129. OPEN INNOVATION
is the Future
% of P&G
Property of
ideas from
outside the
company
130. The PROBLEM
Inventors Companies
speak speak
Property of
Technology Products
& Patents & Profits
131. “94% of failures
are due to the
Property of
SYSTEM
6% are due to the
worker”
132. the three stages of the system…
Evaluate Launch
Create Ideas
Ideas Ideas
Property of
A system for A system for picking A system for getting
creating as many ideas with the highest ideas to market with
ideas as possible. probability of success. the minimum of time,
money and risk.
133. Some examples of Open Innovation Marketplace s
Where Innovation Buyers, Sellers, Investors & Distributors
Speak the Same Language
e.g. http://www.innovationsupplychain.com/
Property of
Seller BENEFIT
60 Second
Business Credibility
Buyer BENEFIT
Smarter, Faster, Cheaper
Innovation Development
Inventor’s ideas are taken more Companies can painlessly access a
seriously by companies because each virtual Innovation Department that is as
idea comes with an independent much as 3X times more successful, 85%
research report and sales forecast that more efficient and requires 50% less
can be understood in 60 seconds. capital investment.
134. USA Innovation Connections powered by the
1,600 Member NIST/MEP NETWORK
America’s #1 Growth Team
Property of
135. Examples of NIST/MEP Open Innovation Connections
MEP
Network
Property ofMEP Made Connection &
Helped with Licensing of
Tactile Sound System’s
INVENTION
MEP Found
Potential Licensee
In just 30 days
MEP Found 2
R&D Partners
• Montana
• Massachusetts
136. Two Way Publishing
Innovation Innovation
OFFERINGS REQUESTS
Property of Requests to
Purchase/License
Innovations
Requests to purchase
or provide R&D or
Manufacturing help...
Requests
Requests to
Invest in
Distribute
Innovations
Innovations
such as...
137. Examples of Technology Scouting Tools
Direct Connect with
Marketplace Listings
Free Searches & Alerts
Property of
Connect to Inventor with
RELATED Experience
Free Connections
Post “Request for Innovation”
Free Publishing of Requests
138. Who’s at the Other Side?
QuickT ime™ and a
TIFF (LZ decompressor
W)
are needed to see this picture.
Property of
139. Remember...
DIVERSITY
Finance R&D
Operations
Property of Marketing
Sales Purchasing
breaks down internal silos
140. Open Innovation
Finance R&D
Operations
Property of Marketing
Sales Purchasing
breaks down company walls
141. STIMULUS MINING
Open Innovation Mining
from the
Innovation
Marketplaces
Property of on
Pages
14 & 15
145. Buzz Ideas
PAIR UP to INVENT IDEAS
for new PRODUCTS/ SERVICES
for BUZZ ELECTRONICS
Property of Pages 16 & 17
ON
using Open Innovation
stimulus from pages 14 & 15
15 mins
158. Low Price is Specific & Numeric
Property of
The only way to beat it is to
OFFER MORE VALUE
159. Are You Catching a Theme?
“If you’re not meaningfully
Property ofbetter be
unique you’d
cheap.”
160. Buzz Ideas
Team adds NUMBERS
Property of
Write idea on GREEN Card
Use pages 18-19 as guidance
161. Vote at Table
Use ALL of your coins
Where should
Property of we Invest
George’s Money?
To Accelerate Profitable Growth
162. Report Out!
thunderous applause
guaranteed
Property of
163. The Truth is...
DRAMATICALLY DIFFERENT IDEAS
PropertyOperational
Cause of
CHAOS
CHAOS
164. SOLUTION = Fix the SYSTEM
“94% of failures
are due to the SYSTEM
Property ofto the
6% are due
worker”
165. System Based on the
Masters of Innovation….
Property of Start Up
Companies
166. Start Ups Are…
The Real EXPERTS of Innovation Commercialisation
Property of
% of Innovations
Still in Business after 3 years
167. Since WWII more than two
thirds of all RADICAL
INNOVATIONS that have
lead to dramatic and
sizable transformations in
Property of
the economy have been
adopted, improved and
developed by SMALL
COMPANIES.
Federal Reserve Bank
of Kansas City
168. Small Companies SHIP
Who Ships Who Ships
University Inventions Independent’s Inventions
Property of
Large Co.
1.7% Odds
Large
Company
Small Company Small Company
& Start Ups & Start Ups
Sources: AUTM FY 2005 U.S. Licensing Survey
Academy of Management Journal 2005, Vol 48, No 5, p 814 - 829
The Economic Journal, 113 (January 2003) pages 226-239
170. How to START UP like a START UP
Property of
Personal Passion
1 Person OWNS Project
171. The Simultaneous Engineering Approach
1. Plan
Product
4. Act 2. Do
Development
3. Study
Property of
Fail Fast - Fail Cheap
Rapid Cycles
of Test &
Learn
Business
Marketing
Model
Development
Development
172. How to START UP like a START UP
Open Innovation
Property of
“Borrow don’t build or buy”
Manufacturing – Distribution Investment - Ideas
173. The SCOUT
(project General Manager)
Is the HUB of the WHEEL
R&D / Engineering
Property of
Finance SCOUT
Market Research
Sales / Marketing
Manufacturing / Operations
175. The Simultaneous Engineering Approach
Product
Development
Property of Rapid Cycles
of Test &
Learn
Business
Marketing
Model
Development
Development
176. Innovation is about “Whack-a-Mole”
Product /
Service
Reality
Property of Rapid Cycles
of Test &
Learn
Customer Profit
Promise Formula
177. The Deming Cycle
Scientific Method
1. Plan
Property of
4. Act 2. Do
3. Study “Fail Fast Fail Cheap
Get Smart”
178. Old World
“Proper & Mature”
Business Innovation
Fail Fast - Fail Cheap
System
Get Smart
Expensive & Slow
1. Plan 1. Plan
Property of
4. Act 2. Do 4. Act 2. Do
1. Plan 3. Study 3. Study
2. Study 2. Study
2. Study 2. Study
2. Study 2. Study 1. Plan
1. Plan
2. Study 2. Study
4. Act 2. Do
2. Study 4. Act 2. Do
2. Study
2. Study 3. Study
3. Study
2. Study
179. Old World
Leadership Decides Where To Drill for Oil
Property of
Get Bigger
DRILL BIT
180. New World
If hit HARD ROCK - Try somewhere else
Property of
181. Old World New World
“You don’t have “Yes, but we
Persistence have profits.
Property of
&
Dedication”
184. Validation…
Probability of Sustained
Marketplace Success
60% PP / 40% N&D Still in Distribution after 3 Years
Correlation = .82
Correlation = .70
Property of
7X Smarter than Humans
I.R.I. Scanner Data
Correlation with REAL World Results
(Raw results - not adjusted for marketing support)
% Wrong
70 % 10 %
Wrong % Trial r = .42 99% confidence
Wrong Purchase Frequency r = .44 99% confidence
% Repeat r = .38 99% confidence
Humans $/1000 Customers r = .37 99% confidence
185. Initial Small Business - Validations
Innovation Sales Forecasts
Actual In System
Industry % Diff.
market Forecast
Industrial Equipment Innovation for
$1,700,000 $1,800,000 +6%
Pharmaceutical Industry
Property of
Commercial Plumbing Innovation
Home Construction Service Innovation
$150,000
$175,000
$140,000
$160,000
-7%
-9%
Bio-Science Material Innovation $150,000 $150,000 0%
Sporting Equipment Innovation $240,000 $250,000 +4%
187. Approach
Focus on Biggest Threats or “Unknowns” First
Property of KILLER
Death Threat
Small Small Small
Problem Problem Problem
188. P&G Does the Same
Focus First On Project
Death Threats
“Teams like to address easy issues first. At P&G we
Property of
have flipped the sequence. Teams must identify so-
called “killer issues” - problems that must be solved
for the innovation to succeed.”
A.G. Lafley
Retired CEO
189. Focus on Biggest Threats First
Turn KILLER Threats
Into Manageable Threats
1. Plan
What Death
Threat?
Property of
KILLER
4. Act
Apply
Revise
Stop
3. Study
2. Do
Learn
What learned?
Death Threat
Manageable
Threat
190. Fail Fast Fail Cheap
Development System
Dissolve Risks with Small Steps
Focus Small Steps Leadership
Kaizen 1. Plan
“Solve Big
Problems with 4. Act 2. Do
Small Steps of
3. Study
Property of
Disciplined Focus on
Continuous
Learning”
“Fail Fast
Fail Cheap”
the... Dig for Make it
• Death Threats
Truth Real
• Leadership Structure
• Killer Issues
Do the
Numbers
Ask for
Advice
• Simultaneous Engineering
• Meeting Rhythm
• Big Rocks
194. Situation: Bill a home brewer thinks he's invented
a beer that prevents hangovers. He uses a secret
collection of herbs to make it work.
Death Threats: Bill meets with an investor
Property of
who is interested in the idea. However, the
investor has identified two Death Threats that
he's asked Bill to address before he invests.
1. Is it legal to sell it?
2. Does it really work?
195. 1. Is it legal to 2. Does it really
Death Threat
sell? work?
Ask for Advice Ask the herb
Innovation Supply Chain
Customer Feedback company to
- Problem
- Idea / Product investigate
Do the Numbers
•Estimate Sales
•Estimate Cost
Property of
•Reduce Uncertainty
Dig for Truths
•Data & Research Dig
• Technology & Patent Dig
• Inventor & Expert Dig
Make it Real Test it with 10 people
•Feel the PAIN (Problem)
•Fast “Works Like” Prototype who typically get
•Fast “Looks Like” Prototype hangovers
196. We’re not trying for a TOTAL Solution
Just trying to remove it from DEATH THREAT LIST
Property of
Give attention to the plate that is about to fall
just enough to keep it spinning.
197. Let’s use…
The Top Idea
Property of 4. Act
1. Plan
2. Do
3. Study
Death Threats Fail Fast - Fail Cheap
Get Smart Options...
198. Which Idea
received the most money?
Property of
Remember... everybody wins when
these ideas result in profitable growth!
199. Buzz Plan
THINK
Fail Fast
Fail Cheap
Property of Smart
Get
Methods
15 Minutes
to work as a team Page 21
200. Report Out!
thunderous applause
guaranteed
Property of
201. Some Ideas Get Accelerated NOW
But no ideas are
THROWN
Property of
AWAY
202. Pipeline Management of Innovation
High Probability Correct
Ideas (£/€) Understanding of
Value
Property of =
Medium Probability
Ideas (£/€)
Max Chance of
Hitting Growth
Low Probability
Ideas (£/€) Targets From
Innovation
203. A Simple Pipeline Management System…
Conservative Most Likely Aggressive Development Proprietary
IDEA Forecast Forecast Forecast Status Status Trailblazer
ACTIVE
Project #1 £0 £0 £0 1 to 5 1 to 5 name
Property of
Project #2 £0 £0 £0 1 to 5 1 to 5 name
Later
Project #3 £0 £0 £0 1 to 5 1 to 5 name
Project #4 £0 £0 £0 1 to 5 1 to 5 name
TOTAL £0 £0 £0 average average
205. Leading Profitable Growth
1. Dramatic Difference
2. Overt Benefit Difference
3. Real Reason to Believe Difference
Property of
4. Explore Stimulus
5. Leverage Diversity
6. Drive Out Fear