1. DESIGN FOR INNOVATION (D4I) Design for Innovation with Business Intelligence By Dr. Iain Sanders, D4I Ltd © Design for Innovation Ltd. 2010-11

2. Design for Innovation (D4I) with Business Intelligence (BI) involves: “the discovery, capture, application & refinement of game-changing analytics, to deliver continuous improvement & innovation, throughout the business” 2 © Design for Innovation Ltd. 2010-11

3. 3 For example: The best customer solutions to maximize customers’ profitability For example: Your business model is now obsolete, limiting your effectiveness and ability to achieve a sustainable competitive advantage For example: technology, product & service value- creation What you don’t know about your customers and your business may be costing you millions! © Design for Innovation Ltd. 2010-11

4. Jack Welch said: “We have only two sources of competitive advantage: The ability to learn more about our customers faster than the competition. The ability to turn that learning into action faster than the competition.” 4 © Design for Innovation Ltd. 2010-11

5. 5 Develop Your Customer Partnerships with BI: Involve Your Customers as Co-innovators Leadership Board Customer Intelligence Marketing R&D Sales Finance Operations Purchasing © Design for Innovation Ltd. 2010-11

6. CUSTOMER INTELLIGENCE MARKETING INTELLIGENCE PERFORMANCE INTELLIGENCE BUSINESS INTELLIGENCE MAXIMIZE BUSINESS MODEL PAYBACK OPTIMIZE BUSINESS MODEL IDEATION OPTIMIZE BUSINESS MODEL IMPROVEMENT MAXIMIZE CUSTOMER LIFETIME VALUE B U S I N E S SREQUIREMENTS TECHNI C A L R E Q U I R E M E N T S OPTIMIZE CUSTOMER SEGMENTATION OPTIMIZE CRM DATA MINING TECHNIQUES MAXIMIZE MARKETING PAYBACK OPTIMIZE DATABASE MARKETING OPTIMIZE MARKETING METRICS PROCESS INTELLIGENCE OPTIMIZE PRODUCT & PROCESS IMPROVEMENT CONTINUOUS SYSTEMATIC INNOVATION OPTIMIZE PRODUCT & PROCESS REDESIGN BUSINESS INTELLIGENCE OPTIMIZE PERFORMANCE MANAGEMENT PATTERN RECOGNITION FOR REALIGNMENT OPTIMIZE SYSTEM DYNAMICS 6 © Design for Innovation Ltd. 2010-11

7. Key to BI Failure Wrong Implementation Sequence 7 © Design for Innovation Ltd. 2010-11

8. Approach to BI Development Unlike static stand-alone systems, a dynamic, integrated BI decision-support environment cannot be built in one big bang. Data and functionality must be rolled out in iterative releases, and each deployment is likely to trigger new requirements for the next release 8 © Design for Innovation Ltd. 2010-11

9. Key to BI Success Proper Implementation Sequence 9 © Design for Innovation Ltd. 2010-11

10. 10 Customer Intelligence © Design for Innovation Ltd. 2010-11

11. 11 1.QUANTIFY CURRENT & FUTURE MARKET SHARE 2. QUALIFY PROFITABLE MARKET GROWTH OPPORTUNITIES 3. MAXIMIZE MARKET VALUE CREATION SOLUTIONS Marketing Intelligence © Design for Innovation Ltd. 2010-11

13. Designing & developing products & services

14. Marketing & selling products & services

15. Delivering products & services

17. Managing information technology & knowledge

18. Managing financial resources

19. Acquiring, constructing & managing property

20. Managing environmental health & safety

21. Managing external relationships

22. Managing improvement and changeTools… (e.g.) Lean Six Sigma Design for Lean Six Sigma Design for Innovation Ideation TRIZ © Design for Innovation Ltd. 2010-11

23. 13 Performance Intelligence © Design for Innovation Ltd. 2010-11 Customer Satisfaction – who are our stakeholders and what do they want and need? Strategies – what strategies do we have to put in place to satisfy the wants and needs of these key stakeholders? Processes – what critical processes do we require if we are to execute these strategies? Capabilities – what capabilities do we need to operate and enhance these processes? Customer Contributions – what contributions do we require from our stakeholders if we are to maintain and develop these capabilities?

24. 14 Business Intelligence PARTNER NETWORK CUSTOMER RELATIONSHIP INFRASTRUCTURE CUSTOMER OFFER TARGET CUSTOMERS CORE CAPABILITIES portrays the network of cooperative agreements with other companies explains the relationships a company establishes with its customers VALUE PROPOSITION describes the customers and customer segments a company wants to offer value to outlines the capabilities required to run a company's business model DISTRIBUTION CHANNELS VALUE CONFIGURATION describes the channels to communicate and get in touch with customers describes the arrangement of activities and resources sums up the monetary consequences to run a business model describes the revenue streams through which money is earned COST STRUCTURE REVENUE STREAMS FINANCE gives an overall view of a company's bundle of products and services 14

25. Business Model Innovation CUSTOMER RELATIONSHIP PARTNER NETWORK CUSTOMER OFFER TARGET CUSTOMERS VALUE PROPOSITION DISTRIBUTION CHANNELS VALUE CONFIGURATION COST STRUCTURE REVENUE STREAMS FINANCE © Design for Innovation Ltd. 2010-11 PN 1 INFRASTRUCTURE CORE CAPABILITIES Industry / Market Structural changes Perception changes Unexpected successes Converging technologies Unexpected external events 15 Process weaknesses High-growth areas Demographic changes New knowledge Unexpected failures

26. 16 Discover what you don‘t know with BUSINESS FORESIGHT Use GAME-CHANGING ANALYTICS to facilitate CONTINUOUS INNOVATION: Make the unknowables IRRELEVANT! Make better use of what you know with BUSINESS INSIGHT What you don’t know about your customers doesn’t have to matter! © Design for Innovation Ltd. 2010-11

27. 17 DESIGN FOR INNOVATION (D4I) Thank you for your attention! Email: iain@designforinnovation.com Web: www.designforinnovation.com Web: www.gamechanginganalytics.com © Design for Innovation Ltd. 2010-11