Industrialization Of Innovation

The ADOPTS process and innovation methods „Mind of the
Customer‟ and „Persona Modeling‟

INDUSTRIALIZATION OF
INNOVATION

Copyright © 2008 Inovo Technologies Inc.

The Need for Process
 To be successful innovation must be more than
just an individual endeavor
 Innovation is a set of knowledge and skills that
can be learned and practiced

The Technology of Innovation “Systematic innovation
therefore consists in the
purposeful and organized
search for changes and in the
systematic analysis of the
Ad-hoc  Organized opportunities such changes
Gut-feel  Disciplined might offer for economic
Haphazard  Structured or social innovation”
Opportunistic  Directed
Peter Drucker

Serendipitous  Purposeful


The Front End Determines Success

Discovery Development Commercialization
Understand Design compelling Connect with customers.
demand creation new offerings Create market pull
Blockbuster

„batting average‟
Increase the

„home runs‟
Get more
So-So

Failure

What you
Determines
do here success here


Key Principles
Start with • Hold off on defining solutions
Opportunities • Seek evidence of unmet needs & desires

Understand
the minds of • Gain insight into motivation and behavior
future • Capture insights using persona models
customers

Model to test
solutions • Create compelling solution concepts
before • Test using persona models
development • Develop a portfolio of options

dd/mm/yy – RG/vs

A Front-end Process

New Business Offerings
Business Strategy

Strategic Business
Domains Hypothesis

5

Business Strategy

Strategic Business
Domains Hypothesis

Discovering unmet needs and desires

ACTIVE DISCOVERY OF
OPPORTUNITIES


An “American Idol” Model of Discovery
2 Rigorous, Iterative Discovery Process
1 All are Insight using
Welcome 4 “Wisdom of Crowds”
Valuable
10,000 Asset

Regional 164 Holly- 24 14 Televised
Auditions wood Contests

5
Real Investment
Begins Here
Critical Feedback 6
3 Throughout the Process


Case – Opportunities in a new domain
New Exploration
Domain

4 on to
PTS

Hypothesis Statement Profile
Cycle Cycle Cycle

192 51 8
Starting Opportunity Opportunity Opportunity
Sub-Domains Hypotheses Statements Profiles

8

Opportunity Hypothesis (OH)
What is Who cares?
the need
or desire?
Why do they care?

How much
What are the do they care?
alternatives?


Case - Exploring Mobility

 Community
 Drivers
 Municipalities
 Researchers
 Solutions
 10 application areas
 > 20 end-use products
 3 new business models


Key Principles for Discovery

Wisdom of Crowds Iteration to focus and
decision support shape opportunities

Volume of opportunities discovered
based on evidence of need or desire

dd/mm/yy – RG/vs

Business Strategy

Strategic Business
Domains Hypothesis

Finding what customers really want.
Getting at the tacit, subconscious knowledge

THE MIND OF THE
CUSTOMER


The Mind of the Customer™
Getting Beyond “Voice of the Customer”
Mind of the
Customer
Depth of Motivation Insight

Persona Modeling
Increasing need to
interpret the unmet
Ethnography needs of customers
Community Engagement
Technology Roadmapping

Trends Analysis
Contextual Interviewing

Needs Gap Surveys
Immersion Programs

Retail Exit Decreasing ability of
Interviews Habits & Practices Surveys
customer to articulate
their unmet needs
Voice of the Focus Groups

Customer
Incremental Distinctive Breakthrough
Target Level of Innovation


Adoption Dynamics
Persona Model How and why are perceptions
formed and changed?
What can a Needs & Desires
company do
to affect
perceptions Perception
and influence
acquisition
behavior?
How do
Influence Adoption perceptions
affect
propensity
to purchase
at a specific
time and
place?


Case - How do Drivers Feel Safe?
 Technology
 Drivers form perceptions of safety using much
more than a vehicle‟s safety features
 The most important effects are those that are
directly experienced – 15 relevant effects
dimensions
 Community
 20 Internal, 40 external individuals
 Focus on knowledge-experience diversity

 Solutions
 More than 25 specific safety influence
recommendations
 10 existing vehicle features and
programs assessed for effectiveness
 Assessment of competitive offerings


Key Principles for Customer Insight

Robust and selected In-depth engagements to
knowledge community uncover tacit knowledge
and experience

Synthesis of knowledge using Persona Models

dd/mm/yy – RG/vs

Business Strategy
Strategic Business
Domains Hypothesis

Creating solutions using knowledge of the customer and predicting
their adoption dynamics

PREDICTIVE TESTING OF
SOLUTIONS


Insight into Demand Creation

Customer insight
Personas

Business potential
Capture the Mind
of the Customer™
New
Solution Software Adoption
Concepts Persona Model Dynamics $
Predict Adoption &
Demand Creation Time
A portfolio of
Existing
new options Reference
Alternatives Examples of
adoption


Predictive Testing of Solutions
• 200+ Community members Personas Ideas
• 100+ Engagements Types of Satisfying
Adopters Needs
• 30 distinct personas Modeled
• 4 Ideation sessions Concepts
• 350+ ideas created Adoption
Dynamics Solution
• 24 concepts modeled
Concepts
• 11 identified as best Top Few

Community Modeling
Engagement Auction
Building

Community Members
Source of knowledge &
experience


Case - Operating Room Experience
 Technology
 Process technology – the surgical
procedure from admittance to recuperation
 Service technology – the effects of the
actions of all the various participants,
nurses, doctors, administrators, equipment
 Product technology – the effects of all the
various machines, devices, equipment etc.

Auctioned Value

 Community $2,500

 The entire surgical ecosystem from $2,000
the patient and the surgeon all the
$1,500
way to the administrator and regulator $000
$1,000
 Solution
$500
 New patient experiences resulting
$0
from a combination of new process, SurgiStar UR Here ZipFix Iron Duh! Pampered
2000 Curtain Patient
service and product concepts


Key Principles for Solutions

Solution concepts based Anchoring with reference
on customer insight solutions to get plausible
approximations

Predictive modeling of adoption

dd/mm/yy – RG/vs

Questions?

Business Strategy

Strategic Business
Domains Hypothesis

22

MAKING IT HAPPEN


Becoming an Innovative Enterprise

Pro-Innovation
leadership

Process to
Manage
Innovation


The Innovation Space
Expansion

Corporate Focus
Growth
Product New Business
Creation and
Reinvention
Transformation

Scope of Change

Incremental Transformational

Product and Best Practices
Operational Operational
Excellence Reinvention

Operation


Effect of an Innovation Process
Assumptions Baseline Factor Accelerated
Rate of idea generation (# per month) 0.75 10% 0.825
% of ideas that make it to NPD 10% 10% 11.0%
% of NPD projects that make it through pipeline 90% 0% 90.0%
% of commercial products that
Fail to meet ROI goals 75% 10% 67.5%
Meet ROI Goals 15% 10% 21.5%
Greatly exceed ROI goals 10% 10% 11.0%
Time in NPD (months) 12 10% 10.8
Time to midpoint on adoption curve (months) 24 10% 21.6
Cost to develop ($M) 1 0% 1
ROI Goal - Revenue at adoption midpoint ($M) 5 10% 5.5
200.0
180.0 Total Revenue - With Process
160.0 Total Revenue - No Process
140.0
120.0
100.0
80.0
60.0
40.0
20.0
0.0
Y1 Y2 Y3 Y4 Y5


Are You
 Distinguishing between opportunities and
solutions?
 Because understanding needs and desires informs how
to meet them.
 Creating literally hundreds of new opportunity
ideas in 2-3 months?
 Because volume counts. It lets you cover the domain to
find the best.
 Using Personas to understand future customers?
 Because understanding motivation reveals deeper
insights than behavior.


Are You
 Predicatively testing new concepts with your
future customers?
 Because early insight into adoption leads to better
decision making.
 Using the „wisdom of crowds‟ to help with decision
making?
 Because having multiple perspectives improves the
quality of the decision.
 Actively building a knowledge community to learn
about the future?
 Because it‟s what‟s inside the minds of people that
counts the most.

The next steps
 How are you, as an individual, going to
increase your innovation knowledge and
skills?
 How are you, as a leader, going to create a
culture and a climate of innovation?
 How are you, as an implementer, going to
take the next steps in improving your
organization‟s innovation results?
Be bold, Be specific, Be committed


Industrialization Of Innovation

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