Innovation'' In Plain English

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Innovation.. In Plain English !

• A practitioners point of view !

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The Question ?

• I want to become an INNOVATIVE organisation.
• Why Declining Profits/RED ZONE.
• Innovation involves change.
• What do I do ?

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Innovation ?

• What it is NOT !
• RD, RD, RD, RD, RD, RD, RD, RD, RD, RD,
  RD, RD, RD, RD, RD, RD, RD, RD, RD, RD,
  RD.
• RD is a cost and reduces PROFIT.
• Innovation only creates PROFIT.

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What is Innovation ?

• By definition, Innovation means IMPLEMENTING
  something new.
• Innovation (Business) PROFIT benefit.

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Easy Innovation Acme Ltd
1/ Vinnie, the forlift driver won the internal
company website design competition prize of
2,000 holiday per year for a 3 year contract.
External contract of 25,000 a year cancelled,
SAVING 23,000 per year. 2/ Changed from leased
Internet/email connection from XXXXX (2 MB
2,300 pa) to XXXXX (2MB DSL connection for 588
pa) SAVING 1,712.
Total Extra Profit 24,712. Company in
Decline These 2 examples equiv to Sales of
353,000, Total Sales Equivilant approx EUR 1
Million over 3 years
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What is Innovation ?

• By definition, Innovation means IMPLEMENTING
  something new.
• Innovation (Business) PROFIT benefit.
• My Definition Innovation is the exploitation of
  new ideas for PROFIT.
• Innovation is what creates an environment for
  fulfilling a connection-making process that
  creates something new which pays off.
• INNOVATION not Imitation.

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Innovation in Practice

• Become Innovation Centric.
• Implement an Innovation Cycle.
• Get rid of everything which slows the I.C.
• Think BIG.
• Always check the end to end view.
• Harness proven Innovators.
• Use the World for your INPUTS and outputs.
• Market Led RD, Prod Dev, etc.

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Innovation Cycle

• The Innovation Process.
• Concept Analysis. (idea)
• Planning Risk Assessment. (planning)
• Implementation. (execution)
• Evaluation. (profit evaluation)

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Innovation Metrics

• Revenue from product less than 3YO.
• Innovation Cycle Time.
• Non-Value Versus Value Operations.
• Install Base X Time in Market.
• Product Dev starts Versus Launch.
• Product Margin Versus Innovation cycle time.

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Case Study examples

• Company 1, EnviroTech product, Investor in 2004,
  innovation centric business model from day 1.
• Company 2, EnviroTech product, VC backed company,
  Typical product centric business model.

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Side by Side
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Side by Side practical differences

• Company 1
• Design/Prod Dev
• No Supply Chain
• No Manufacturing
• No Inventory
• No Quality
• Sales Marketing
• Customer Services

• Company 2
• Design/Prod Dev
• Supply Chain
• Manufacturing
• Inventory
• Quality
• Sales Marketing
• Customer Services

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Company 1 practical benefits

• Passion of the innovators focused on the revenue
  stream activities only. (Customer Focused)
• Lower Investment in start-up, (no VC).
• No Manufacturing distraction.
• Quick/constant innovation cycle.
• Lower cost base / price point.
• Early profitability.
• Aggressive growth opportunity.
• Customers already designing next product.

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What the MODEL looks like

• Service Orientated Company only.
• Outsource is the 2nd best option.
• Early focus on sales and customer satisfaction
  not infrastructure.
• Profit is KEY.

Sales Marketing
Product Development
Customer Services
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Thank You. john.quinn_at_esatclear.ie