why innovation always trumps invention - leaders...
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Why Innovation Always Trumps Invention
Thomas KuczmarskiPresident, Kuczmarski & Associates
For over 28 years, Kuczmarski & Associates has helped organizations drive growth through innovation
Innovation Expertise
Co-Founders of the Chicago Innovation Awards
Diverse Client Base
Executive Education
Creating and Leading a Culture of Innovation
Managing New Products and Services for Strategic Competitive Advantage
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Invention Versus Innovation
Innovation As A Growth Strategy
Member‐Centric Innovation
Leading Innovation
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Innovation is a lot more than just new products
New Business Models New Services
Live Intellectual Property Auctions
CTA Bus TrackerCrowd Sourced Retail
Multi-Language Prescription Labels
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languages17
5
Ginger
Tata Nano
New Acquisition
Tata Housing
Tata Swach
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MYTH: “Innovation is a fad and too high‐risk for our organization”
REALITY: Innovation solvesmember problems, issues, and needs
MYTH: “Individuals drive innovation”
REALITY: Innovation provides relevancy and increases the value proposition
Innovation Myths and Realities
MYTH: “Innovation equals brainstorming”
MYTH: “Innovation is purely a creative process”
REALITY: Innovation requires a systematic and disciplined process
REALITY: Innovation is a team sport
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Often, organizations face a unique set of innovation challenges
Fear of Focus
Member Needs Not Understood
Limited People Resources
Leader and Volunteer Turnover
Short Term Financial Needs
Lack of Systematic
Development Process
6 Common Innovation Hurdles
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Innovation always trumps invention
Inventors create a product with the dream of success
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Invention generates new ideas, patents, and designs
Innovation transforms inventions into commercial products, services, and businesses
An invention, no matter how inspired, will not be valuedif nobody wants to buy it
Innovations, which solvecustomer wants and needs, will attract customers creating new revenue and growth
Invention Innovation
Innovators bring a product or service that solves real needs
Invention Versus Innovation
Innovation As A Growth Strategy
Member‐Centric Innovation
Leading Innovation
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Successful innovation provides a path to growth and creates new value
Successful innovations are…
Creating something new that…
Bring your strategic plan to life
Offers New Benefits
Is Differentiated from Other Offerings
Is Valued by Members
Yields Relevancy and Value
New Products
New Business Models
New Services
New Programs
New Processes
Allowing you to…
Grow your association
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Explore
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Vision StrategicRoles
Financial GrowthGoals
ScreeningCriteria
Innovation Strategy
Member - Centric Innovation Process
CultureOrganizational
Structure Resources Rewards Metrics
Innovation Mindset
Best Practice innovation companies take a “disciplined‐freedom” approach to innovation
Define
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Solve
3
Analyze
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Develop
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Prepare
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Execute
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Governance Process and Training
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The Innovation Strategy is comprised of Vision, Strategic Roles, Financial Growth Gap, and Screening CriteriaAn Innovation Vision and Strategic Roles specifically address how innovation will be used to drive growth over time
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The Innovation Strategy
VisionVisionWho do we want to be?
Strategic Roles
Screening Criteria
Growth Gap
How will innovation support our vision?
What are our financial expectations?
How will we measure success?
Culture: Zapponians and Culture of “Happiness”
Vision: Building Customer Service Empire Beyond Shoes
Tony Hsieh, CEO
Customer Service: Free Shipping/Returns/24 hour Call Center
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Pablo Picasso:Released ~13,000 paintingsCreated over 250,000 original paintings
Babe Ruth: 714 Home Runs1330 Strikeouts
Motivating Rewards and Recognition
Dedicated Resources
Visible and Vocal Top Management Commitment
Timely Research
Conducted with Members
Language and Reinforcement of
Values
Innovation is sustained through Culture and Mindset
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Innovation Strategy and
Metrics
Invention Versus Innovation
Innovation As A Growth Strategy
Member‐Centric Innovation
Leading Innovation
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Create an innovation portfolio
30%Line
Extensions
18%Improvements 17%
22%
New to the
World
New to the Company
39% “New Products and
Services”
39% “New Products and
Services”
The RestThe Rest
23% “New Products and
Services”
23% “New Products and
Services”
The BestThe Best
Cost Reductions
8%
15%
31%
42% New to the Company
NTW
Cost Reductions
Repositionings
Improvements
Line Extensions
Source: Kuczmarski & Associates Winning New Products Survey
Repositionings
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An member‐centric process enables organizations to deliver product, service, and value propositions that are continually relevant to end users
Develop
Prepare
5
6
2
3 4
Launch
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Create the Project Strategic Plan
Identify Problem/
Opportunity Areas
Generate and Screen Solutions
Develop, Shape, and
Test Concepts
Shape and Test
Prototypes and Develop Business Cases
Build Market Implementation
Strategy
Launch Product/
Service into Market
Member touch point
Explore
Solve Analyze
Define
1
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Play in cross‐functional teams
FasterSuccessful
Commercialization
The Result
What It Does
Effective Team Dynamics
Consistent Team Members
Creates buy-in
Shortens communication
Gains critical inputs early in the process
“The most successful launches (in terms of overall profitability and/or competitive measures) were related to having cross-functional teams make decisions.” Journal of Product Innovation Management 20
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Invention Versus Innovation
Innovation As A Growth Strategy
Member‐Centric Innovation
Leading Innovation
Kuczmarski’s Top 10 List of Innovation Best Practices
Strategy
Process
Culture
1. Set Expectations
3. Uncover Customer Problems and Needs 4. Use a Systematic and Disciplined Process
6. Play in Cross-Functional Teams
7. Keep Score
8. Reward and Celebrate Success
9. Accept Failure
5. Provide Adequate Funding
2. Create a Portfolio
10.Create an Innovative Culture
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Peopleship model and 6 valuesPeopleship model and 6 values
Collaboration
Inclusiveness
Compassion
PeopleshipPeopleship
Values-Based
Decisiveness
Humility
Transparency
Innovative and progressive organizations will require a new kind of leader in the future
“Importantly, managing and motivating people with compassionate, collaborative, transparent and inclusive leadership not only positively affects the traditional bottom line, it also gives a boost to hard measures including ROI, stock price and operating earnings.”
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