1. Why Innovation Is Broken and What To Do About It To Drive Organic Growth Urquhart Wood Innovation and Growth Strategy Advisor Strategyn Consulting

2. Innovation is Shrouded in Confusion Without agreement on these fundamental concepts, how can a company ever expect to excel at innovation? It can’t. Is there agreement among managers in your company as to … YES NO What innovation is? 95% What a customer need is? 95%

4. … is the process of devising a product or service concept that satisfies the customer’s unmet needs. Product/Service Innovation… Development is the process of designing/engineering a product or service concept that has been approved for creation. 1 Stage-Gate® is a trademark of Stage-Gate Corporation -1 Innovation & Growth Strategy

5. It’s Like Solving an Algebraic Equation … X = 3 and Y = 1 2(3) + 1 = 3? No X= 1 and Y = 1 2(1) + 1 = 3? No X = 2 and Y = 2 2(2) + 2 = 3? No 2y + yz 3 x zy 3 + yz 3 x zy 3 - x 2 y 3 z 6 + 2x 2 + 2y + yz 3 x zy 3 - x 2 y 3 z 6 + 2X + Y = 3 and X - Y = 4

6. Two Innovation Paradigms: Ideas-First Vs. Needs-First

8. Failing Faster Doesn’t Work “ Nothing is less productive than to make more efficient that which should not be done in the first place.” Peter Drucker 70% - 90% Failure Rates Brainstorm Evaluate and Filter Select a Concept

10. The Sought After Customer Needs Are Undefined There is no agreement on what a “need” is There is no way to know if ALL the needs have been captured See Giving Customers a Fair Hearing , Sloan Management Review, Spring 2008 Delighters Specifications WANTS NEEDS constraints BENEFITS Solutions latent needs Exciters must haves WISHES IDEAS expectations unarticulated needs

12. "People don't want to buy a quarter-inch drill. They want a quarter-inch hole!“ Theodore Levitt, 1975 The drill is a solution The hole is the need

18. The Opportunity Landscape TM Satisfaction Importance Opp >15 Extreme Opportunity Opp >10 Solid Opportunity Opp >12 High Opportunity Under-Served Appropriately Served Limited Opportunity 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 Table Stakes Sustaining or Breakthrough Innovation Over-Served Opportunity = Importance + max (Importance – Satisfaction, 0) Ripe for Disruption Potential for Disruption See Turn Customer Input Into Innovation , HBR, January 2002

20. Concept Generation and Evaluation Patent Portfolio Development Pipeline Prioritization Messaging, Positioning, and Selling Purpose Brand Development R&D & Mergers Competitive Intelligence Market Segmentation Applying Outcome-Driven Data ODI Aligns Cross-Functional Strategies