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Fuzzy Front End
High and
Multidimensional
Uncertainties that Must Be Resolved |
-
Technical uncertainties
– issues related to completeness and correctness of the
underlying scientific knowledge and the technical specifications...
More
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Disruptive innovations
enable
rapid growth, and create
high return of investment
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Incremental
versus Radical Innovation1 |
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Incremental |
Radical |
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Emphasis |
Cost
or feature improvements in existing products and/or processes |
Development of new businesses, products and/or processes |
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Technology |
Existing |
New |
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Uncertainty |
Low |
High |
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Trajectory |
Linear and continuous |
Sporadic and discontinuous |
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More
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Why Radical
Innovation?
"If you want to
succeed, you have to
forge new paths and avoid borrowed ones."
~ John Rockefeller
Long-term corporate success is linked
to the ability to innovate. Although corporate investment in
→
improvements
to existing products and processes does bring
→
growth, it is new game
changing breakthroughs that will launch company into new markets, enable
rapid growth, and create
high return on investment. Companies that are not bound by prevalent
fallacies and rules of conventional wisdom have been able to break out of
the pack, create a new highly profitable
market niche, and
win customers.
→
Value Innovation:
Yin-Yang Strategies
→
Blue Ocean
vs. Red Ocean Strategy
Radical innovation should be a continued
activity to help your company reinvent itself and maintain its
market leadership.
Research show firms that dominate one generation of technology often fail to
maintain leadership in the next because these industry leaders continue
investing in incremental improvements in the technologies that made them
successful, even when more effective
"disruptive" technologies appear on the
horizon, and
start undermining the old ones.
Incremental innovation allows you address the
ever-changing needs of current customers and keeps cash flow healthy, but it
must be supplemented by periodic infusion of radical innovation that creates
a new market niche or adds new disruptive value to the existing marketplace,
changes the game and provides a platform for the
long-term growth. |
|
If you want to succeed over the long haul, you must
synergize ongoing incremental innovation with radical innovation.
>>>
Traditional
Management Approaches Do Not Fit
Who can implement a radical innovation
project?
Don’t give an innovation project to a line manager who is
running an established business as well.
>>>
High levels of uncertainties –
technical, market, organizational, and resources
–
create extraordinary challenges
for radical project management...
More
→
10 Commandments
of Innovation
Radical Innovation
by Cross-Functional Individuals
"Here is the paradox: You need a
great team of people with diverse skills to perform a symphony well, but no
team has ever written a great symphony!"
say researchers from Harvard Business School.
While
cross-functional teams
are key players in defining and implementing incremental innovation
projects,
disruptive
cross-functional
individuals tend to be key players in defining radical
innovation projects.
→
BE MAD
Individuals who are likely to excel in a radical
innovation project, besides having superior technical capabilities, should
be
→
goal-oriented, broadly educated, creative, extremely bright, not afraid
to
be different,
integrative,
→
Flexibility,
→
passionate,
→
entrepreneurial,
aggressive, eager to learn business, able to
take risks, and inquisitive.1
>>>
Fuzzy Logic
Modern
→
business and technology leaders use the managerial equivalent of fuzzy logic
to address the ambiguity of the fuzzy front end. The core elements of this approach include...
More
Improvisation-driven
Radical Project Management (RPM)
The improvisation-driven model is one approach
to radical innovation project management. It works well when the unknowns
are high and the players are seasoned. This model doesn’t discard structure,
just as there is a clear structure to good
jazz.
Rather than having it overlaid
from the outside, though, the improvisational approach builds structure from
the inside as it is needed. That’s why it requires a critical mass of
experienced people to work...
More
Technology
Commercialization – Venture Pathways
In deciding how to most profitably
mobilize intellectual property, a company
should consider a wide range of options...
More
Radical Project Management
(RPM)
As radical innovation projects are
characterized by
higher levels of uncertainties – technical, market, and
organizational, – patterns of their journey to the marketplace are
unlike those in incremental innovation projects...
More
Simulation Game
"Innoball"
Innoball is a breakthrough
business game that helps
disruptive innopreneurs achieve great
success in the real world. These simulation games develop as a sequence of
assumed moves by innovators and their opponents. They help you to:
KoRe 10 Innovative
Thinking Tools
KoRe 10 Tools help
innovators approach
creation of
entrepreneurial
strategies and
anticipation of opponents' moves more
systematically.
The Kore 10 Tools help also
innovation leaders and
radical project managers strengthen and
synergize the
most important areas of innovation...
More
Prototyping
There are many
new product
performance problems, but rapid prototyping can help solve many of them. "Quick prototyping is about acting before
you've got the answers, about taking chances, stumbling a little, but then
making it right. Living, moving prototypes can help shape your ideas. When
you're
creating something new to the world, you can't look over your shoulder
to see what your competitors are doing; you have to find another source of
→
inspiration,"
says Tom Kelly6 from
IDEO...
More
Learning about the Markets
for New-To-The-World Products
Radical innovators
generally have only the outlines of a very big picture and, compared
with incremental innovators, must operate in the dark, since
customers seldom have a context for understanding the product or its
capabilities. Neither the final
new-to-the world
product, nor its applications can be described reliably.
As
exploratory questions are most important for market learning,
traditional
market research
methods designed to answer traditional market research questions are
used infrequently in radical innovation projects. To do a better job
of
learning about markets for
radical innovations,
some alternative approaches should be
practiced.4...
More
CimWave
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