AHRQ Annual Conference

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AHRQ Annual Conference
September 8, 2008

• AARP Member-Centric Innovation Process

Nigel Smith Director, Member Strategy nvsmith_at_aarp
.org
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Overview of AARP
AARP is a nonprofit, nonpartisan membership
organization for people age 50 and over
Vision
A society in which everyone ages with dignity and
purpose, and in which AARP helps people fulfill
their goals and dreams
Mission
AARP is dedicated to enhancing quality of life
for all as we age. We lead positive social
change and deliver value to members through
information, advocacy and service.
AARP
AARP Services
AARP Foundation
AARP Global Network
AARP Financial
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AARP Assets, Capabilities, and Key Differentiators
Membership
Largest nonprofit membership in the US with over
40 million members
Volunteers
300,000 volunteers working in 2,500 chapters
Most well-known nonprofit organization in the
country with a highly trusted brand
Brand
Influences major Federal and State legislation on
issues of significance to its members and society
at large, including healthcare, economic
security, and livable communities
Advocacy
AARP The Magazine is one of the worlds largest
circulation publications with 22 million
households. Other information assets include
AARP Bulletin, AARP Segunda Juventud, AARP TV and
the revitalized AARP.org
Information/ Distribution
Multiple partners and alliances offer a broad
spectrum of AARP-branded health, financial, and
lifestyle offerings, including United Healthcare,
Aetna, Genworth, Walgreens, Chase, Expedia,
Borders, and others
Product and Service Relationships
Operating revenues of approximately 1 billion,
sourced from membership dues, royalties,
publications advertising, contributions, and
other sources
Diversified Revenues
Measurement of success through a unique triple
bottom line social entrepreneurship lens social
impact, member value and revenue
Model of Social Entrepreneurship
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Innovation at AARP

• Decentralized model innovation exists in
  multiple business units
• Member-centric innovation group created in
  mid-2007 to systematically unearth member value
  proposition opportunities
• Additional innovation resource
• Leverages deep insights of the age 48 population
• End-to-end process has been developed,
  socialized, and is currently being resourced to
  drive several AARP innovation priorities

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AARP Member Centric Innovation Process
Goal to provide a systematic methodology for
innovative ideas/concepts to be objectively
assessed in a repeatable, scalable manner in
order to create new portfolios, products, and
features that are highly valued by target 50
segments
DISCOVERY
VALIDATION
REFINEMENT
Focused Idea Discovery
Concept Definition / Prioritization
Qualitative Research
Quantitative Validation
Product Development
Innovation Parameter Definition
INNOVATION STEPS
Segment Prioritization and Assessment

• Team prioritization
• Team build-out of prioritized concepts

• IDIs
• Triads
• Team refinement

• Feature and benefit optimization by sample of
  target member segments (conjoint analysis and
  other approaches)
• Business case assessment of top concepts

• Member Insights
• Behaviors
• Needs
• Market Trends
• AARP priorities
• Portfolio gaps
• Partners/ Providers

• Recommended and approved concepts transitioned to
  business owner for development

• Prioritization driven by
• Demographic and psychographic assessment
• Needs/ wants assessment
• Persona creation
• Persona ideation

• In-person facilitated ideation
• Employees
• Prosumers
• Subject Matter Experts
• Facilitated open online ideation

AARP APPROACH

• Assessment of needs, wants, and values of target
  segments

• Hundreds of ideas that address innovation
  parameters

• 10-20 prioritized concepts for deeper exploration

• Expanded concepts, with fleshed-out features and
  benefits

• Prioritized concepts for development based upon
  member value and organizational business case

• Innovation parameters for focused innovation

• Developed, piloted, and launched concepts
• OR
• Failed concepts

OUTPUT
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Next Steps in Innovation Journey

• Build internal clients and infuse process
  throughout organization
• Engender innovative culture
• Less risk aversion
• Ideas come from everywhere
• More visible leadership support

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Finally Some Humble Advice

• Be clear on roles responsibilities with
  innovation execution, and make sure all
  stakeholders understand and are fully aligned
  with the innovation process.
• Be flexible in innovation architecture, approach
  and execution it is critical that innovation
  meets the set organizational and leadership
  expectations. Quick early wins help to establish
  the value of the innovation process and gain
  organizational support.
• Dont lose sight of the other 2nd and 3rd
  horizon benefits of an innovation process.
  Innovation can help create a less risk averse
  culture, enhance the AHRQ brand, and engender an
  even more attractive employee value proposition.
  Plan for these as part of your innovation journey.

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