Innovation isn’t the job of R&D or Marketing anymore. Innovation is everyone’s job – but most aren’t trained/experienced in innovation. Whether you start at "small i" innovation or "BIG I" Innovation - can you really afford NOT to improve your innovation capabilities?

1. HYPER-SOCIAL INNOVATION
STARTING AND SUSTAINING
SMALL I TO BIG I INNOVATION EFFORTS

2. "Because the purpose of
business is to create a
customer, the business
enterprise has two--and only
two--basic functions:
marketing and innovation.
Marketing and innovation
produce results; all the rest
are costs.”
- Peter Drucker

3. Why Innovation… Now?
1. Drucker’s Quote is from 1954 –
globalization = need for smarter
marketing + innovation
2. Knowledge era, not the industrial
era = adapt or DIE
3. Innovation isn’t the job of R&D or
Marketing anymore. Innovation is
everyone’s job – but most aren’t
trained/experienced in innovation

4. ARE YOU READY?

5. 10 Year Market Rollercoaster – Nobody Anticipated the 2008 Shock

6. How do Billionaires fair? Not so good at company level…
MSFT Underperforming the Market for 10 years

7. Lean-powered Innovation via Toyota Motors?
Even during the “runaway car” fiasco, Toyota
outperformed MSFT and the Market

8. Compared to Apple?
MSFT and Toyota and Market Index are still on
this chart – but look like flatlines at this scale

9. Even Google Looks like they’re standing still, but they are well above
the pack…
See green arrow for Google

10. Removed Apple to Highlight Google vs. Toyota and MSFT

11. GOOGLE AND TOYOTA
= SMALL I INNOVATION
AND THE RESULTS PAY-OFF SIGNIFICANTLY VS.
“INNOVATION IS ONLY IN R&D”

12. MICROSOFT IS
INNOVATION BY RETAINING
MARKETSHARE
AND THE GROWTH HASN’T APPEARED BY “DOING THINGS
AS USUAL” (TYPICAL PRODUCT LIFECYCLE IS 3 YEARS PER
VERSION)

13. How About Just Poor Innovation Performance... Period?
• “In the mid 1980s, with
failure rates approaching
90 percent, R&D
expenditures under
scrutiny and lead times for
success averaging nearly
eight years, it was clear
that a new approach was
needed [...] 50 percent or
greater failure rates are
still the norm.”
• What Customers Want, Anthony
Ulwick, 2005

14. APPLE = BIG I
INNOVATION
MARKETING AND INNOVATION, CONSTANTLY
AND IT WASN’T PURELY ABOUT STEVE JOBS

15. The Economic Shocks Keep Coming and are More Sudden
Sept 2002
Sept 2008

16. HAVE YOU CHANGED THE
WAY YOU INNOVATE SINCE
2008?

17. All Hands on Deck to Handle the Next “Economic Titanic”
• 100 years later, we still don’t
know what really happened to
sink the unsinkable ship
• You can’t afford to wait 100 days
(a financial quarter) to
understand where things have
gone wrong
• It’s time to radically speed up
innovation capability, across the
board

18. Kaizen, Lean, and 1,000,000

19. For every individual P&G researcher
• Estimated that there are 200 scientists/engineers elsewhere in
the world who are just as good
• P&G determined they needed to
change from "not invented here”
to enthusiasm for “proudly found elsewhere"
Source: P&G’s New Innovation Model (Harvard
Business Review. 2006)

20. Actionable and Repeatable Innovation = Price of Entry to be in
Business Today
• Drucker marketing + innovation from “The Practice of Management”
(1954)
• Innovation as a management issue and business toolkit, has been around
for over 60 years
• Innovation is everyone’s job comes from the quality movement, and birth
of what we now know as Lean
– Lean has spread from manufacturing to IT Operations, User
Experience Design, Funding and Creation of Startups or Skunkworks
operations, and much more.
• America, Japan, Germany, Korea, Singapore, Thailand, are all
embracing Lean across industries
– Lean is not only for the automotive industry it’s a mindset of
continuous improvement and problem solving
– Innovation toolkits for engineering have spread from the Soviet
Union 60 years ago, alongside the quality movement – bringing
“hard science” and predictability to innovation
– The Art and Science of Large-scale Change Management for
Innovation (Hyper-social innovation) has become a widely felt need
since the beginning of the economic slide in 2007.

21. If Innovation is one of the top two items business should focus on,
why haven’t we?
• Decades have been spent DISABLING employees from thinking about
how to innovate.
• Specialization of roles, departmental boundaries, purpose-built
applications that serve mini-populations rather than entire
organizations, enterprise-wide systems, that are too generic and
unfocused to deliver significant value = expectation that “innovation
is someone else’s job”
• We can’t afford to operate as departmental boxes, throwing work
over to a nameless “next guy, next department” – and assume
problems will be solved by someone else. The speed of change, and
our reaction time, won’t allow it anymore.

22. LET’S TALK
INNOVATION SPEED

23. IMPROVE “IDEA-TO-CONCEPT”
TIME FROM TWO MONTHS
(60 DAYS)
TO TWO HOURS (.08 DAYS)

24. WHAT COULD YOUR BUSINESS DO IF YOU
IF YOU INCREASED INNOVATION SPEED BY
720%?

25. WHAT ABOUT
CUSTOMER-SERVING
PROCESSES?

26. USE LEAN MANUFACTURING TO
BUILD & DELIVER
AN ENTIRE CAR
IN LESS THAN 7 DAYS FROM CUSTOMER PURCHASE, WITH
THE EXACT DESIGN THE CUSTOMER WANTS

27. RATHER THAN GUESSING WHAT CUSTOMERS
WILL WANT, WITH 6 MONTHS OF INVENTORY
SITTING ON THE LOT
THIS IS THE DIFFERENCE BETWEEN REACTING TO PULL FROM THE
MARKET, AND TRYING TO PUSH A “NEED.”
LEAD TIMES IN FAULTY DECISIONS (GUESSES) WILL KILL YOU…

28. Time to Grow &
Flex Problem-
Solving Muscles
Without
Taking
Shortcuts
That Will
Deflate
Quickly

29. ARE YOUR
PEOPLE TRAINED
FOR INNOVATION?
SKILLS AND EXPERIENCE

30. If you don’t have the tools to
create & vet ideas at scale...
How can you hope to compete with
MASTERS of innovation?
“That’s not a knife...
THIS is a knife”
Crocodile Dundee

31. DO YOU PROVIDE A
LICENSE TO INNOVATE?
YOU CAN’T RELY ON MASS MOVEMENTS STARTING AND
SUSTAINING SPONTANEOUSLY

32. LICENSE2INNOVATE

33. IS YOUR
CULTURE READY
FOR INNOVATION?
SOCIAL READINESS
LEADERS, FIRST-FOLLOWERS, AMBASSADORS, EVANGELISTS, CHAMPIONS, OWNERS,
REVIEWERS, LEARNERS, PLAYERS
THE TRIBE

34. There are more smart people OUTSIDE of your
organization, than INSIDE. Guaranteed.
But there are also more people within your
company who are not CURRENTLY being tapped
for “innovations” than you’re using today.
Feel like doubling your odds?

35. Planning vs Implementing
In Your Organization, What Community or
Communities did you target or will you
target with Crowdsourcing?
2008 (2 years ago) 2010 2015 (5 years ou
Source:
www.InformationArchitect
ed.com

36. Who to Target?
Target Crowds By Where the Most Value Is
Most Significant Sources of
Innovative Ideas
Source: IBM

37. START A MOVEMENT
LESSONS FROM A SHIRTLESS GUY – IN UNDER 3 MINUTES

38. Source: http://www.ted.com/talks/derek_sivers_how_to_start_a_movement.html

39. IF YOU AREN’T
LEVERAGING YOUR
EMPLOYEES FOR
INNOVATION…
YOU ARE MISSING ORDERS OF MAGNITUDE OF
INNOVATION CAPABILITY BEYOND WHAT YOU HAVE NOW

40. Innovation can be Learned more Quickly than you think…
Source:24/7 Innovation by Steve Shapiro

41. BY SPEEDING UP
INNOVATION
AND INCLUDING MORE WELL-EQUIPPED AND “LICENSED”
BRAINS INTO THE PROCESS, THE PAYBACK IS INTENSE…

42. Time to Market (TTM) and Impact on Revenue vs. Spend

43. Time to Market (TTM) and Impact on Revenue vs. Spend
SOURCE: PRESENTATION BY VISION CONSULTING (VISION.COM) REGARDING PAYBACK AND AGILE DEVELOPMENT

44. What if your competitors are even smarter and faster?
SOURCE: PRESENTATION BY VISION CONSULTING (VISION.COM) REGARDING PAYBACK AND AGILE DEVELOPMENT

45. ENGAGE YOUR TRIBES
SOME WILL LEAD, MOST WILL FOLLOW
IF YOU SET THE ENGAGEMENT ENVIRONMENT UP
CORRECTLY

46. Find “the crazy ones”
• We're a herding species - and depending on who's numbers you
believe, the "innovators" who will willingly jump in and lead the way
with any new change, are somewhere around 2.5% of the
population.
• The potential "first followers" are another 13.5% after that, and the
rest make up the majority who are waiting for consensus/social proof
to show that it's safe to join a movement.
• (These #s come from Everett M. Rogers, Diffusion of Innovations,
Fifth Edition 2003 - which was the pre-cursor of Geoffrey Moore's
Crossing the Chasm model)
• Hint: Unlike our earlier tribal days, with big companies, spread out
over multiple companies, it’s not nearly as obvious where your “sub-
tribes” hang out – and the anti-social enterprise systems in place are
likely to keep you from easily finding them, as opposed to the
customer-tribes that form outside of organizations.

47. Multi-stage Engagement Effort
• Lessons learned from the innovators – why they’ve found value, what
they can see as benefits to others not in their areas (by nature,
they’re more visionary)
• For first followers – pairing up mentoring/coaching who are in the
next level of interest, and support them beyond excitement and into
getting their own benefits
• Large-scale – barn-raising, kick-off events with specific targeted
areas, led by experienced innovators, first-followers who are already
trained, and targeted at areas that “uncovery” work has shown are
areas of pain, passion, or interest to large groups.

48. WITHOUT
ENGAGEMENT…

50. Reference Articles
• Using Lean to Create Innovation Culture
– http://www.managementexchange.com/hack/groundwork-create-innovation-culture
• Know Your Tribe, Be Your Tribe
– http://www.informationweek.com/thebrainyard/news/232601678/know-your-tribe-be-your-tribe
• Social Business: Don't Let Transparency Be A Barrier
– http://www.informationweek.com/thebrainyard/news/230500036/social-business-dont-let-transparency-be-a-barrier
• Enterprise 2.0 Innovators Must Bridge to the Laggards
– http://www.informationweek.com/thebrainyard/news/231001117/enterprise-20-innovators-must-bridge-to-the-
laggards
• Are Cubicles Killing Us?
– http://www.informationweek.com/thebrainyard/news/231002493/are-cubicles-killing-us
• Are Collaboration Killers Roaming Your Halls?
– http://www.informationweek.com/thebrainyard/news/231600087/are-collaboration-killers-roaming-your-halls
• Collaboration Simulations: Think Big
– http://www.informationweek.com/thebrainyard/news/232200533/collaboration-simulations-think-big
• It’s the Little Things That Count:
– http://www.informationarchitected.com/blog/innovation-management-its-the-little-things-that-count/
• Assessing and Building Innovation Strengths:
– http://www.business-strategy-innovation.com/2010/04/innovation-perspectives-assessing-and.html
• Making Innovation Work in a Downturn (Interview with Carlos Dominguez, SVP at Cisco)
– http://www.business-strategy-innovation.com/2009/08/making-innovation-work-in-downturn.html
• Strategy from Above?
– http://www.business-strategy-innovation.com/2009/08/innovation-perspectives-strategy-from.html
• Get Ahead of the Curve
– http://www.aiim.org/Resources/Archive/Magazine/2008-Jul-Aug/34899

51. READY FOR
INNOVATION?
LET’S TALK INNOVATION ENGAGEMENT STRATEGY AND START
MAKING A DIFFERENCE TO YOUR BUSINESS,
SMALL I OR BIG I

52. Dan Keldsen – Partner at Human 1.0
Enterprise Client Services Focused on Innovation & Insights
(twitter) @dankeldsen
Dan[at]human1.com
617-520-4326
linkedin.com/in/dankeldsen