inno pass breakthrough innovation ss
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© InnoPass
Breakthrough innova/on Crea/ng organic growth
Mar/n van de Ven April 2012
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The real difficulty in changing any enterprise lies not in developing new ideas, but in escaping from the old ones.
John Maynard Keynes
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Successful breakthrough innova/on drives growth,
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PAS2000
PAS5000
TWINSCAN
TWINSCAN immersion
Extreme UV Cost price of 1 GB memory
Companies that are the most successful at achieving growth through innovation tend to devote their energies to a small number of breakthrough ideas[1]. Only about 80 of Fortune’s Global 500 turned in an annual average of at least 5% organic sales growth over 10 years. These organic growth champions (Apple, GE, BMW, Nestle, Samsung) delivered almost double the shareholder returns than the other Global 500 companies.
Mac
iPod
iPhone
iPad
TV?
ASML enabled miniaturization and cost price reduction of electronics with breakthrough innovations in IC production
Apple transformed the way we interact with computers, music, mobile devices and books
[1] “Focus intensely on a few great innovation ideas”, Georg von Krogh and Sebastian Raisch, Harvard Business Review, 2009
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…while failure causes business decline or bankruptcy.
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Failure to create breakthrough innovations can seriously jeopardize a companies business[2]. An example is Philips Display Components that played a leading role in CRT technology and missed out on LCD screen technology. Another example is K-Mart that lost its business to Wall Mart that create breakthrough innovation in retail logistics.
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A premium market position backfires
Innovation management breaks down
A core business is abandoned prematurely
The company lacks a strong talent bench
A company ignores major shifts in customer preference upon competitive breakthrough innovation
A company focuses on incremental extensions with direct return on investment, not breakthrough innovations.
Believing its core markets are saturated a company does not explore breakthrough innovation options.
A firm has few executives and staff that possess breakthrough innovation execution capabilities.
[2] ‘When growth stalls, Matthew S. Olsen, Derek van Bever and Seth Verry, Harvard Business Review, 2008
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Building breakthrough businesses is a challenge…
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By nature breakthrough innovation requires a different approach than continuous innovation [3,4]. It should build on your core strengths, but forget about the conventions that made your core business successful. It should be able to borrow what adds competitive advantage and learn freely what else is required for a successful implementation.
[3] How the growth outliers do it, Rita Gunter McGrath, Harvard Business Review, 2010 [4] Bulding breakthrough businesses within established organizations, Vijay Govindarajan and Chris Trimble, Harvard Business Review, 2005
Forget… Borrow… Learn…
…some of what has made your core business successful.
…only those assets from the core business that provide a distinct competitive advantage.
…quickly to resolve your breakthrough innovation’s inevitable unknowns, to zero in on a winning business model..
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…that InnoPass helps you to tackle….
Mother Business
Research
Opera-‐3ons Strategy
Develop-‐ment
InnoPass developed an organic process, tools and skills required to identify and implement breakthrough innovation opportunities. Our philosophy is action-oriented. This involves experimentation to accelerate learning and delivers concrete tangible results in each step.
1. Ovulate
2. Fertilize
3. Fetal Growth
4. Childhood
5. Puberty
6. Adolescence
Innovation Strategy
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…and integrate in your organiza/on.
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Innovation strategy is an ongoing topic on your management agenda. InnoPass focuses on establishing a healthy portfolio balance between business improvements, incremental innovation and breakthrough innovation. Next to that InnoPass supports the capability development for breakthrough innovation in your organization.
Mother Business
Research
Opera-‐3ons Strategy
Develop-‐ment
Innova3on
Mother business with several strategic experiments addressing key opportunities and threats with breakthrough innovation
Threat
Opportunity
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Technology Valoriza/on
Case: Arnitel Eco
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1. Ovulate
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Arnitel Eco is a bio-based material with a different set of properties than ‘normal’ Arnitel. DSM did not know where to market this technology and proposed to focus on its ecological advantages. InnoPass helped DSM to focus on a specific market (sports in this case) and explain the strengths of the material in a more compelling way for people defining new sports equipment.
Custom shaping Connections
Stretch & block
Flexible Protection
Color
Energy Return
Shock Absorption Durability
Weight Saving
Skin Feel
Traditional technical folder of DSM focusing on generic ecological benefits of the material
All Arnitel Eco sports shoe concept, showing the different material form factors and core strengths
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2. Fer/lize
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Given the large diversity of sports and sporting equipment, DSM needed broad expertise to evaluate the potential of Arnitel Eco in the sports market. InnoPass designed and executed a crowd co-creating challenge to tap into the wisdom of experts in the world. LinkedIn advertising was applied to attract a solvers target group to the challenge.
LinkedIn group with 170 specialists following the challenge, providing a reference group for DSM in sports
Large variety of high quality ideas provided by 40 experts around the world
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3. Fetal Growth
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After the crowd co-creation challenge, 6 benefit platforms resulted for Arnitel Eco. Some of these benefits could be leveraged following the standard DSM innovation process offering improvements to their customers products. The potentially most valuable benefits platforms require additional effort giving the proposition and business case hands and feet. Key challenge is how to inspire a value chain to adopt a totally new concept for the consumer market.
DSM typically delivers plastic granulates to convertors. Next to the product, DSM offers application & process support.
Breakthrough innovation enabled by the new technology requires a careful choice of ecosystem and your own position in it. Note: The actual DSM proposition is confidential.
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Mar/n van de Ven Senior business and marke/ng consultant InnoPass Dena Innovest BV Molenveld 36 5611EX Eindhoven The Netherlands Mob: +31 6 1093 6998 KvK Eindhoven: 17249495 BTW nummer: 8207.60.638B01
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