The Innovator’s DNA
S U M M A R I Z E D B Y:
C A M I A G AV I N
K A B E E R M A L H OT R A
B I L L S TA N TO N
M I L L I E Z H A OD E C E M B E R 2 , 2 0 1 3
W R I T T E N B Y:
J E F F D Y E R
H A L G R E G E R S E N
C L AY TO N M . C H R I S T E N S E N
Part One:Disruptive Innovation Starts with You
Who Is Classified as an Innovator?
I. Start-up Entrepreneurs
II. Corporate Entrepreneurs
III. Product Innovators
IV. Process Innovators
Innovative Companies are almost always lead by innovative leaders.
Reality Check
•Engaging in discovery skills does not ensure financial success
•Failure often results in from not being vigilant in engaging all discovery skills
•Not all innovators in the book should not be held up as an example on how to be innovative
Discovery Skills: The Courage to Innovate
The Five Discovery Skills of Innovation
I. Associating
II. Questioning
III. Observing
IV. Networking
V. Experimenting
Discovery Skill #1: Associating
Associating is the ability to make surprising connections across areas of knowledge, industries, even geographies. • Connecting wildly different ideas, objects, services, technologies and disciplines to dish
up new and unusual innovations
• Innovators intentionally maneuver themselves into the intersection where diverse experiences flourish and foster discovery of new insights.
• When the brain is actively absorbing new knowledge, it is more likely to trigger connections between ideas as it toils to synthesize novel outputs.
• Lego thinking and getting lots of ideas from different sources creates the best of all innovation worlds.
Discovery Skill #2: Questioning
Questions hold the potential to cultivate creative insights.
A way of life for innovators, not a trendy intellectual exercise.
Asking Disruptive Questions by treating the world as a question mark.
Be willing to look Stupid!
Dilemmas for Senior Leaders
Discovery Skill #3: Observing
Most Innovators are intense observers
Look for the “job” and a better way to do it
Understanding the Job to be done
Actively watch customers and look for workarounds
Ten Questions to ask while observing
Change the environment
Develop observation skills “All of us are watchers – of television, of time clocks, of traffic on the freeway – but few are observers. Everyone is looking, not many are seeing”
-Peter Leschak
Framework for Observing
Look for the “job” and find a better way of doing it
OpenTable.com
•Find cuisine of choice
•Make reservation at convenient time
•Have access to discounted meals
•Essentially a personal restaurant concierge
Look for surprises
•Traditional thinking can tell us to steer away from anomalies
•Think like a scientific researcher and seek out anomalies
•Cory Wride and Media Mouth Inc.
Change the Environment
From foreign countries to zoos…
A new environment can help provide a fresh way to look at the same problem
Discovery Skill #4: NetworkingIdea Networking VS Resource Networking
Discovery-Driven Executives
Why they network:-New surprising ideas-Fresh perspectives-Test ideas
Target-People with different traits-Experts/Nonexperts in others fields
Delivery-Driven Executives
Why they network:-Access to resources-Sell themselves/company-Further careers
Target:-Similar people-People with resources & power
How to Idea Network
•Tap people outside of the field for creative inspiration
•Attending Networking Events
•Form a Personal Networking Group
Discovery Skill #5: Experimenting
Try Out New Experiences
•Diversity of experience fosters divergent thinking
•Provides larger set of ideas when associating
Take Apart Processes and Ideas
•Deconstruction followed by reconstruction
•Michael Dell literally and figuratively took apart manufacturing of PC’s
Test New Ideas Through Pilots and Prototypes
•PayPal began when Michael Levchin wanted to transfer money from one Palm Pilot to another
Part Two:The DNA of Disruptive Organizations & Teams
Successful Innovation = Profits
“An innovation is the conversion of a new idea into revenues and profits . . . In fact, there is no correlation between the number of corporate patents earned and
financial success. A gee-whiz product that does not deliver value to the customer and provide financial benefit to the company is not an innovation. Innovation is not complete
until it shows up in the financial results.”
- A.G. Lafley (Chairman of Board, President & CEO of P&G)
World’s Most Innovative CompaniesInnovative Premium: Market Value that cannot be accounted from current business • Market Value > Cash Flows = growth & innovation• Expectations of NEW and PROFITS
World’s Top Innovative CompaniesSalesforce.com (founder: Marc Benioff)• First to offer online/on-demand CRM/Salesforce
automaton software
• Cloud computing
• App Exchange: applications for businesses
• Chatter “Facebook + Twitter” for business
Intuitive Surgical:
• Robotic assisted surgery
• 3D visualization and robotic arms to ensure accuracy = smaller incisions, fewer mistakes, etc.
• Future goal: Long distance surgery
Key DNA Qualities: 3P
• Excel at discovery
• Management should spearhead innovation
• Monitor, maintain & hire high discovery-quotient people in every levelPeople:
• Encourage employees to associate, question, observe, network, and experiment
• Processes are designed to hire, train, reward, and promote discovery driven people
Process:
• Innovation is everyone’s job
• Disruption is part of the innovation portfolio
• Deploy small, properly organized innovation project teams
• Take smart risks in pursuit of innovation
Philosophies:
People
Build a team with complementary skills
Lead by setting an example
• Innovative leaders make a difference
• Executives’ actions are signal to a organization
• Create a balanced team: Understand your strengths & weaknesses
Discovery-driven
Delivery-driven
Associating
Questioning
Observing
Idea networking
Experimenting
Analyzing
Planning
Detail-oriented
Execution
Innovative TeamsBig Idea Group (BIG):Intermediate company between innovators and distribution channels
•“Idea Generation”
• Look for innovative ideas through its networks
•“Winnowing”
• Panels of strong discovery skill individuals to evaluate
•“Refinement”
• Evaluate potential value & size of the marketplace
• Strong delivery skills needed
• Some discovery skills to assess innovation adaptations
•“Capture Value”
• Product launch in market
http://www.bigideagroup.net/
IDEO: Design firm that takes a human-centered & design-based approach to helping organizations innovate and grow
•T-Shape teams
• Deep expertise in a specific area & shallow expertise in multiple areas
•“human factors” determine desirability of an idea
•“technical factors” assess feasibility of an idea
•“business factors” evaluate business viability
Processes
DNA of Innovative Companies
DNA of Innovative Individuals
The DNA of innovative companies reflects the DNA of innovative individuals. Their approach changes the way the organization leads and does business
Discovery Processes
QuestioningFive-Whys
ObservingManufacturingEmployees
Idea NetworkingInternalExternal
ExperimentingRapid Trial & Error
Systematizing the Processes
Questioning
Experimenting
Networking
Observing
Philosophies
“Innovation is deeply ingrained in all of the nooks and crannies of our culture”
-Jeff Bezos
Philosophy #1
Innovation is everyone’s job (not just R&D)
Philosophy #2
Disruptive Innovation is part of our innovation
portfolio
Philosophy #3
Deploy Small, Properly
Organized Project Teams
Philosophy #4
Take Smart Risks in Pursuit of Innovation
“If you’re not prepared to be
wrong, you’ll never come up with
anything original”
Group Conclusions & Takeaways
Conclusion
5 Skills of Disruptive Innovation:
Associating
ExperimentingNetworkingObservingQuestioning
ConclusionDNA of Innovative Companies:
Philosophies:
Innovation needs to be thought of daily, by the entire company
Processes:
Use of the 5 skills of innovation
People:
Discovery-oriented executives over delivery-oriented
Key Takeaways•Innovation is more nurture than nature
•Anyone can train to become more innovative
•Innovative companies are led by discovery-oriented leaders
•Innovation is an investment in yourself
Thank you