When any organization ramps up a new or refined business approach, it must align with their goals as a company and provide benefits that outweigh any associated costs. And, due to their typical ambiguity, corporate innovation programs often present many challenges that can be difficult to face without expert guidance. In this presentation, Mindjet’s John Welder discusses how you can support your crowd innovation management programs through design thinking, agile methodologies, and lean start-up processes, in order to accelerate real business outcomes and revenue.

1. May 28th, 2014
Turning Crowd Innovation Into Real
Products and Revenue

2. Agenda
What will we discuss today
• Introductions
• Crowd Ideation
• Idea Categorization with examples
• Innovation Execution Methods
with examples
• Maturing Innovation Capabilities

3. Meet the Speaker
John Welder, Director of Strategy and Innovation
John Welder is a Director of Innovation Strategy with Mindjet, with over 20 years of experience
working in the high tech sector of Silicon Valley.
Prior to joining Mindjet, John was the Director of Innovation at Ericsson where he founded the
global innovation program responsible for internally sourcing, funding, and launching several
major innovations. John also received 2 Pioneer awards for products delivered at Cisco.
John has a degree in Computer Engineering and a Masters in Business Administration from San
Jose State University and is also an experienced mentor in Design Thinking and Lean Startup
innovation

4. Crowd Innovation
You have engaged your
employees to submit and
share ideas…
And your employees and
experts have collaborated to
refine them…
And you have selected a few
that are strategically aligned
and high potential…
Now what? How do you develop these ideas?

5. Categorize the Idea
Use an Ansoff Marix modified for Innovation Strategy
Ansoff Matrix modified for Innovation
Strategy
• Core: You have all the business
capabilities (R&D, Sales, Support,
Distribution, etc etc) necessary to
successful move the idea into
market
• Adjacent: The idea requires a
small set of your business
capabilities to change
• Transformational: The idea
requires a significant set of your
business capabilities to change

6. Core Innovation Example
Field Kiosk at DPR Construction
DPR Construction used the
SpigitEngage platform to collect ideas on
process improvements and cost
efficiencies for the field.
• One employee submitted the idea of a
field kiosk, bringing blueprint
technology out to the field for viewing
• Superintendents and foremen now
have 14% of the work week saved, or
7.5 hours a week from a 55 hour work
week, from having to walk back and
forth between jobsite and the trailer to
view drawings.
14%

7. Adjacent Innovation Example
Fidelity Investments
The philanthropic arm of Fidelity realized
it had the financial knowledge,
innovation, and passion, but not the
channel to reach young people.
• Recently ran a public challenge, “How
might Fidelity improve financial literacy
among teens in need?”
• 73 proposals, including winner Utah
State University Extension 4-H
• Fidelity volunteers now training
volunteer teens for a unique peer-to-
peer financial education pilot program
Source: http://www.fidelity.com/inside-fidelity/community/grant

8. Transformational Example
Apple iPhone™ and App Store
Apple iPhone and App Store completely disrupts the
whole cell phone eco-system and value chain.
• Value moves from the network carriers (e.g. AT&T) to
Applications and App Store
• New standard for simple and easy to use
• Disrupts all other cell phone manufactures and the
cellular service market
• Apple created all new R&D, Support, Sales, Distribution
Channels, and other business capabilities
• Huge risk and huge reward

9. I categorized my idea – how do I implement it?
Different Innovation Methodologies
Lean, 6-Sigma Corporate VC and M&A Lean Start-Up
Incubation &
Eco-System Partnerships
Agile Design Thinking

10. Lean, 6-Sigma
Defining the methodology
Lean and 6-Sigma are innovation models used in
manufacturing and development environments. 6-Sigma
means successfully improving a process so that it only
has 3.4 ‘defects’ per million opportunities.
• This method focuses on statically measuring processes
for quality and or efficiency, identifying areas of waste
and inefficiency, and then improving these
• Lean, 6-Sigma, and similar quality & productivity
methods (TQM, TPM) are great models for internal
innovation. They are effective at:
– Internal Process Improvement
– Improve Quality
– Reduce Costs
– Increase Efficiency
Lean, 6-Sigma

11. Lean, 6-Sigma
Example use case
GE is well known for deploying Lean and 6-Sigma
methods within the organization for great success.
• The GE Fanuc Automotive manufacturing plant creates
high-tech automation products such as industrial lasers
and programmable logic units.
• There were 130 active Six Sigma teams worked
together on identifying ways to translate customer
feedback into higher quality products while reducing
costs
Source: LePree, J. (2000, January). Six sigma shines at ge fanuc. Industrial Maintenance &
Plant Operation, 20-22.
“GE was a three sigma company
and the cost of failure was
estimated at 15% of sales. But
achieving Six Sigma represents a
$4 billion cost-reduction
opportunity…” said Sheila
O’Donnel-Good, Fanuc’s Six Sigma
business leader (LePree, 2000)

12. Agile
Defining the methodology
Agile is an innovation methodology most used in R&D for
product & feature development, especially software
development.
• The Agile method uses cross functional teams in an
iterative model that is focused on delivering against user
stories while also designed to reduce wasteful actions.
Agile is a great model for delivering new or improved
solutions rapidly to identified customers
• Agile is effective at:
– Simplifying the development process
– Rapid Learning
– Internal collaboration
– Customer Feedback loops
Agile

13. Agile
Example use case
Spotify is in a highly competitive market
with Amazon, Apple, Google and others.
• They needed to be very rapid with
software delivery to be competitive
• Spotify engineering is broken into small
cross functional “Squads”
• Each Squad is responsible for their
own part of the product and can
release their software every 3 weeks
Source http://labs.openviewpartners.com/agile-done-right-
agile-gone-wrong/

14. Design Thinking
Defining the methodology
Design Thinking is an innovation methodology which focuses
on understanding and empathizing with a problem area so
that new and improved solutions can be found.
• The Design Thinking model is broken into 3 steps:
1. Inspiration: Look at the problem from new angles
2. Ideation: Generate fresh ideas rapidly
3. Implementation: Rapid Prototyping
• It’s a great model for delivering new or improved solutions
when the customer or user needs/requirements are not
clear. Design Thinking is effective when:
– Customer needs or requirements are not clear
– New, creative, and/or different solutions are desirable
– You are looking for human centeredness
Design Thinking

15. Design Thinking
Example use case
IDEO, a company that uses Design Thinking to help
other companies innovate completed an laser hair
removal innovation project for Tria Beauty. They
followed the 3 step model:
• Inspiration: IDEO interviewed and observed
customers in their homes to understand needs and
product requirements around ease of use and
safety
• Ideation: The team brain stormed potential
solutions around venting, thermal regulation, and
manufacturability
• Implementation: Team rapidly prototyped multiple
versions of the interface for customer and
manufacturing feedback.

16. Lean Start-Up
Lean Start-Up
Defining the methodology
Lean Start-Up is an innovation methodology which
focuses on low cost, fast iterations with customers to
rapidly discover an effective solution or new product with
minimal investment.
• This method uses Minimal Viable Products (MVP) to
Build  Measure  Learn with customers. Pivots are
used if the base assumptions in a business plan prove
incorrect
• It’s a great model for delivering new or improved
products or services quickly especially when the market
requirements are unclear. Lean Start-Up is effective
when:
– Testing and verifying New Products or Services
– Rapid iterations and customer feedback
– Minimizing investment costs
– Pivoting to a successful solution

17. Lean Start-Up
Example use case
A good example of leveraging the lean
start-up method was done in the 2012
Barak Obama Campaign.
• Kyle Rush and the online donation
team leveraged Build Measure 
Learn with 500 A/B tests of specific
campaign web site pages over 20
months
• With the directly testing, they yielded a
donation conversion increase of 49%
and increase to sign-up conversions by
161%
Sources: http://www.bethkanter.org/lean-impact-nov4/
http://www.clickz.com/clickz/news/2040788/obamas-2012-web-
campaign-aims-energize-retarget

18. Incubation & Eco-System Partnerships
Defining the methodology
Incubation & Eco-System Partnerships is an innovation
methodology which focuses on developing new products
or services in an environment separated from your main
organization to allow freedom to experiment in different
ways.
• Partnerships allow eco system partners to co-develop
without constraints as well.
• It’s a great model for delivering new or improved
products/services which are different enough from the
core products or services that developing in-house
would be very slow and tedious. Incubation is effective
when:
– Internal ways of working discourage change
– Partnerships enable exploring new opportunities,
especially eco-system solutions
Incubation &
Eco-System
Partnerships

19. Incubation & Eco-System Partnerships
Example use case
The AT&T Foundry™ innovation centers
are fast-paced and collaborative
environments.
• AT&T and technology providers like
Ericsson or Cisco team-up to deliver
the latest applications and services into
the hands of customers very quickly
• An example of one project that the
AT&T Foundry™ incubated is a product
architecture which allows you to use
your cell phone as a wireless hotel key
Source: http://www.att.com/gen/press-room?pid=2949

20. Corporate VC and M&A
Defining the methodology
Corporate VC and M&A is an innovation methodology
which focuses on using venture capital techniques to
invest, without using a third party investment firm, in an
external start-up that it does not own.
• It’s a great model for exploring new markets and
opportunities which are divergent from the current
capabilities of your organization and for identifying new
technologies. This method is effective when:
– The ecosystem is rapidly changing (Tornado
Markets) and your organization wants to use
venture as a method learn how the market is
changing
– Your organization has a strategy around seeding
innovation opportunities with the potential to harvest
them as they mature
Corporate VC and M&A

21. Corporate VC and M&A
Example use case
Cisco regularly uses Corporate VC and Mergers and
Acquisitions as part of their innovation strategy.
• For example Cisco Investments invested into Insieme
Networks in 2010 because it perceived a significant
market change in Software Defined Networking. It
staffed this start-up with 3 of it’s best engineering
leaders to help enable the start-up
• Insieme developed the SDN product line and then Cisco
used it’s M&A capabilities to spin-in Insieme in 2013
• It is believed that Insieme was able to develop this
market changing product much more quickly then if it
was developed in- house
Sources: http://newsroom.cisco.com/release/1412019
http://www.networkworld.com/news/2013/110613-insieme-faq-275585.html

22. Innovation Methods and Capabilities
Different Methods for Different Innovations
Innovation Methods:
• Here are the methods
mapped together on the
strategy matrix
• Note that these methods do
not have to be exclusive,
they can be combined and
used together in your
methodology

23. Innovation Methods and Capabilities
Different Methods for Different Innovations
Innovation Methods:
• Here are the methods
mapped together on the
strategy matrix
• Note that these methods do
not have to be exclusive,
they can be combined and
used together in your
methodology

24. Innovation Methods and Capabilities
Different Methods for Different Innovations
Innovation Methods:
• Here are the methods
mapped together on the
strategy matrix
• Note that these methods do
not have to be exclusive,
they can be combined and
used together in your
methodology

25. Innovation Methods and Capabilities
Different Methods for Different Innovations
Innovation Methods:
• Here are the methods
mapped together on the
strategy matrix
• Note that these methods do
not have to be exclusive,
they can be combined and
used together in your
methodology

26. Innovation Methods and Capabilities
Different Methods for Different Innovations
Innovation Methods:
• Here are the methods
mapped together on the
strategy matrix
• Note that these methods do
not have to be exclusive,
they can be combined and
used together in your
methodology

27. Innovation Methods and Capabilities
Different Methods for Different Innovations
Innovation Methods:
• Here are the methods
mapped together on the
strategy matrix
• Note that these methods do
not have to be exclusive,
they can be combined and
used together in your
methodology

28. Innovation Capability Maturity
How do I grow my capability to deliver innovations?
Core  Transformational
• Start at the core, build the capability to
cultivate ideas from your employees around
process & product innovations
• Achieve rapid internal success and ROI
• Leverage success to build methods which
allow you to take on more risky ideas. Rapidly
build adjacent products and services
• Create a special expert team and leverage
job rotation teach the organization the
necessary skills
• Goal is to mature organization over 3-5 years

29. How can Mindjet help?
• The SpigitEngage Platforrm
• Experienced Team of
Innovation Experts
• The Mindjet Maturity
Assessment Service

30. Q & A