INNOVATION

1. The Five Disciplines For Creating What Customers Want INNOVATION Curtis R. Carlson William W. Wilmot

2. INNOVATION The Five Disciplines for Creating What Customers Want “ SRI is committed to the discovery and application of science & technology for knowledge, commerce, prosperity and peace.” EXPLORE – DISCOVER - CONNECT

3. INNOVATION The Five Disciplines for Creating What Customers Want Personal Computing Minimally Invasive Surgery HDTV Ultrasound Imaging Stakeholders SWOT Analysis 911 call systems Education system for disabled children

4. INNOVATION The Five Disciplines for Creating What Customers Want “ When ever something – anything – is to be produced, there must be rules, or a systemized method of producing it. Whether or not the people who do the actual production fully understand those rules, that system has a deciding effect on product quality, cost, safety and all essential determinants of success and failure.” – Toyota (employee handbook)

5. INNOVATION The Five Disciplines for Creating What Customers Want “ Innovation is the process that turns an idea into value for the customer and results in sustainable profits for the enterprise.” Innovation may be incremental or transformational, but it would always provide additional customer value.

6. INNOVATION The Five Disciplines for Creating What Customers Want “ Business as usual won’t work.” “Business as usual is a recipe for disaster.” “ We are just two years away from failure.” – Bill Gates

7. INNOVATION The Five Disciplines for Creating What Customers Want • Continuous Value Creation • Sustained innovation centered on customer value is the only approach that works • Who is your customer? • What is the customer value you provide? • How do you measure customer value? • What innovation best practices do you use?

8. INNOVATION The Five Disciplines for Creating What Customers Want Important Needs Value Creation Innovation Champions Innovation Teams Organizational Alignment

9. INNOVATION The Five Disciplines for Creating What Customers Want Success equals: “ Important Needs x Value Creation x Innovation Champions x Innovation Teams x Organizational Alignment”

10. INNOVATION The Five Disciplines for Creating What Customers Want • The end customer is to take the center stage in our world. • Innovate or Die – The Exponential Economy • “ The most powerful force in the universe is compound interest.” – Albert Einstein

11. INNOVATION The Five Disciplines for Creating What Customers Want • “ The World is now flat in the sense that it has become an even playing field.” – Thomas Friedman • Moore’s – Law • Exponential Industries – Computers, Communications, Biotechnology, Consumer Products

12. INNOVATION The Five Disciplines for Creating What Customers Want • The exponential economy is driven by the transition to a knowledge based economy. • These convergences require a new wave of business models. • Declining company lifetimes (increased competition) • Declining product lifecycles

13. INNOVATION The Five Disciplines for Creating What Customers Want “ It is not the strongest of species that survives not the most intelligent; it is the one most adaptable to change.” The only way to systematically create compelling customer value in the market place is to simultaneously interact with the market place.

14. INNOVATION The Five Disciplines for Creating What Customers Want DISCIPLINE 1 IMPORTANT NEEDS

15. INNOVATION The Five Disciplines for Creating What Customers Want “ Work on what’s important, not just what’s interesting-there’s an infinite supply of both” -Frank Guarniei

16. INNOVATION The Five Disciplines for Creating What Customers Want • Selection of Important Projects: • Do you work on innovative activities that can make demonstrable difference to your customers-internal and external? • Is it aligned with your organizational goals? • Are you willing to commit to it?

17. INNOVATION The Five Disciplines for Creating What Customers Want DISCIPLINE 2 VALUE CREATION

18. INNOVATION The Five Disciplines for Creating What Customers Want “You don’t define value-Customer’s do!”

19. INNOVATION The Five Disciplines for Creating What Customers Want • It’s simple as NABC: • Need • Approach • Benefits per cost • Competition/Alternatives

20. INNOVATION The Five Disciplines for Creating What Customers Want Example of NABC: “June, I understand you’re hungry as I am [Need]. Let's go have some lunch at the company café [approach], instead of McDonald’s [Competition] because, for the cost of McDonald's it has great food, its quiet and we can continue our conversation [ benefits per costs]. “

21. INNOVATION The Five Disciplines for Creating What Customers Want nAbc NabC - All about understanding the market ecosystem instead of approach only

22. INNOVATION The Five Disciplines for Creating What Customers Want Example of NABC: “June, I understand you’re hungry as I am [Need]. Let's go have some lunch at the company café [approach], instead of McDonald’s [Competition] because, for the cost of McDonald's it has great food, its quiet and we can continue our conversation [ benefits per costs]. “

23. INNOVATION The Five Disciplines for Creating What Customers Want THE ELEVATOR PITCH An elevator pitch is a pithy summary of your value proposition that can be told in one or two minutes. • Hook: to get their interest • Core: you NABC value proposition • Close: action to get to the next step

24. INNOVATION The Five Disciplines for Creating What Customers Want DISCIPLINE 3 INNOVATION CHAMPIONS

25. INNOVATION The Five Disciplines for Creating What Customers Want • Steps up and keeps the team on track • Push the innovation forward • Passionate, committed, focused, inspire and responsible • At least have one partner to keep themselves on track

26. INNOVATION The Five Disciplines for Creating What Customers Want DISCIPLINE 4 INNOVATION TEAMS

27. INNOVATION The Five Disciplines for Creating What Customers Want “Never doubt that a small group of thoughtful, committed people can change the world: indeed it’s the only thing that ever has.” – Margaret Mead

28. INNOVATION The Five Disciplines for Creating What Customers Want

29. INNOVATION The Five Disciplines for Creating What Customers Want DISCIPLINE 5 ORGANIZATIONAL ALIGNMENT

30. INNOVATION The Five Disciplines for Creating What Customers Want • Alignment is assuring that the enterprise is constructed to deliver the highest customer value • Align teams for success • Slowly disperse the idea to make customer value the central hub

31. INNOVATION The Five Disciplines for Creating What Customers Want THANK YOU