“achieving ambitious business growth”

Graeme Crombie & Jamie McCallum | Matrix Innovation Team

What strategic approaches are most successful?

Define successful?

What strategic approaches are most successful?

Turnover Growth Profitability

Turnover Growth

Q: What grows the top line fastest?

A1: Increasing loyalty from existing customers.

A2: Getting new customers.

A2: Getting new customers.A

vera

ge

GR

OW

TH

RA

TE

Number of NEW CUSTOMERS over the past 3 years

“number of customers was found to be 2.8 times more important than amount bought per customer.”

Your existing customers can only….

EAT | DRINK | SPENDso much!

Share of stomach.

Share of throat.

Share of pocket.

You need more……

Stomachs. Throats. Pockets.

Turnover Growth

Growth Rate (%) vs No. New/Improved Products/Services in 3 year period

Profitability

Q: What’s the highest margin strategy?

A3: Low cost.

A2: Quick turnaround.

A5: Listen / Create around customer demand.

A1: High quality.

A4: Create regardless of market demand.

A4: Create regardless of market demand.

“If I had asked my customers what they wanted, they’d have said faster horses.”

Henry Ford

A4: Create new regardless of market demand.

“If you’re not unique you’d better be cheap.”

Doug Hall

Monopoly

Commodity

Average % Profit Margin vs Core Business Strategy

Georgia Techn=738

Be honest about your growth aspirations……

Time

£ / €

(now) 5 Years

Want to get to here?

Normal Incremental Growth Continues.

Sales stay the same.

Past Future

New and Different

Same Old Stuff

A4: Create new regardless of market demand.

“Insanity: Doing the same thing over and over again and expecting different results.”

Albert Einstein

Risky

Limited

INNOVATIO

N

Problem………

So if innovation is the key to achieving the growth that companies desire. And it’s at the top of the agenda of your governments and support agencies…. what’s holding us back????

TIME | MONEY | RISK

INNOVATION =

Purc

hase

Inte

nt:

Meanin

gfu

lness

New & Different: Uniqueness

TIME | MONEY | RISK

= FEAR

FEAR =

NO CULTURE OF INNOVATION

Human error is high.

Humans <10% success at picking

winning ideas.

Even fruit machines

pay out 32% of the time!

ANSWER

A Reliable & Repeatable Strategy of Innovation Needs a System.

GOOD NEWS!Through the

InterTradeIreland Challenge Programmeyou will learn a highly effective system.

Responsible for £1.5Bn in new products & services globally.

effectiveness endorsed by…

based solely on research into…

• The factors which make products/services succeed or fail.

• The factors that make business development teams effective.

by reverse engineering….

• Over 4,000 real products and services.

• Over 6,000 business development teams.

[VIDEO TESTIMONIAL]

Consumer / Market

Research

Concept Development

R&D and Product/Supply Development

Sales Forecasting Evaluation

Rework - Redo - Restart

Rework - Redo - Restart

Usual Company Systems Approach

• Typical marketplace success of 5-15%.

• Designed to deal with cost & risk.

• Reduces risk by holding ideas back from the market.

• Ignores the biggest risk of missing the opportunity.

Usual Company Systems Approach

Product Development

Business Model

Development

Marketing Development

The Simultaneous Engineering Approach

Rapid Cycles of

Test & Learn

• Typical marketplace success of over 45%.

• Created by reverse engineering the success/failure of over 4,000 product and service ideas and over 6,000 innovation teams.

• Products accelerate to market in a fraction of the time.

• Utilises “Fail Fast. Fail Cheap.” methodology to kill costly losers dead ASAP.

The Simultaneous Engineering Approach

Launch Ideas

Evaluate Ideas

Create Ideas

the three stages of the system…

A system for creating as many ideas as possible.

A system for picking ideas with the highest probability of success.

A system for getting ideas to market with the minimum of time,

money and risk.

Pipeline Management of Innovation

=

Correct Understanding of

Value

Max Chance of Hitting Growth Targets From

Innovation

Challenge ProgrammeOverview

Graeme Crombie & Jamie McCallum | Matrix Innovation Team

What you get…….

2 Full Day Workshops Covering:

• Business Strategy & Planning• Innovation System Training

Plus

An innovation culture assessment on your whole company benchmarking you against world class in a

number of key innovation areas.

A max of 30 Selected Companies will get:

In-company intensive mentoring to output:

• 30 - 70 new ideas generated.

• At least one real new product/service being commercialised.

• Start implementation of the system to create ideas, pick high probability winners and rapidly commercialise them with the minimum of time, money & risk.

A final 10 Selected Companies will get:

What’s expected of you…..

• Availability / attendance of workshops on:

• Commitment of your team with management support to 6 over a period of 6 months.

• Completion of a business plan for application to the final stage.

You must be committed to:

11th & 18th of October 12th & 19th of October

Application Time / Networking

Slides available from Thursday at:

www.intertradeireland.com/challenge/