Innovation by 10

Re:Publica 2010

The origins of frog

2

(map of Silicon Valley)

We are a global innovation firm.

We help the worlds leading companies create and bring to market meaningful products, services, and experiences. Our cross-disciplinary process reveals valuable consumer and market insights and delivers lasting, humanizing solutions across multiple technologies, platforms, and media.
- 40 years experience in developing breakthrough products and services - More than 3,000 products and services for more than 300 of the Fortune 500 companies - Won more than 100 industry awards (CES Innovation, IDEA, and others) - Our software is in more than 500,000,000 devices - Our clients (in 2009) were: 7 of the top 10 mobile operators and 9 of the top 10 OEMs; 50 of Millward Brown Worlds Top 100 Brands; 24 of BusinessWeeks Top 50 Innovative Companies; 16 of Fast Companys Top 50 Innovative Companies

2007 frog design. Confidential & Proprietary.

1 Innovation, really?

Innovation back then.

Innovation today

Innovation back then.

Innovation today

nnovation back then.

2007 frog design. Confidential & Proprietary. 11

Innovation today

Innovation back then.

14

THE BIG SPACE / JC PENNEY

RFID-based digital retail concept

Innovation today
2009 frog design. confidential & proprietary. March 2009 42

Innovation back then.

16

Innovation today

17

Innovation back then.

18

Innovation today

Is he an innovator?

Or he?

Or he?

Or they?

Or he?

2 Innovationwhy?

INNOVATION TRIGGERS
Margin Erosion

We operate in a mature industry with a mature product portfolio and our margins are beginning to disappear. Our new ideas are stuck in the mud of internal planning and review cycles. New competitors are moving into our space and we need to do something to defend our market position. We see opportunities in adjacent markets (new segments, geographies, etc.) but we dont know where and how to start. We have so much IP but we cannot convert it into products that resonate with consumers. Our linear product development process doesnt allow for nimbleness and trial and error.

Internal Churn

Competition

Adjacent Markets

Mining IP

Time-to-Market

Customer Insight

Our product ideas are driven by science and engineering but fail to recognize latent or unarticulated customer needs.
We got lucky once or twice. How do we repeat our market success year after year?

Sustainability

INNOVATION TRIGGERS Margin Erosion Margin Erosion We operate in a mature industry with a mature product portfolio and our margins are beginning to disappear. We operate in a mature industry with a mature product portfolio and our margins are beginning to disappear.

INNOVATION TRIGGERS Margin Erosion Margin Erosion Internal Churn Internal Churn We operate in a mature industry with a mature product portfolio and our margins are beginning to disappear. We operate in a mature industry with a mature product portfolio and our margins are beginning to disappear. Our new ideas are stuck in the mud of internal planning and review Our new ideas are stuck in the mud of internal planning and review cycles. cycles.

INNOVATION TRIGGERS Margin Erosion Margin Erosion Internal Churn Internal Churn We operate in a mature industry with a mature product portfolio and our margins are beginning to disappear. We operate in a mature industry with a mature product portfolio and our margins are beginning to disappear. Our new ideas are stuck in the mud of internal planning and review Our new ideas are stuck in the mud of internal planning and review cycles. cycles.

Competition Competition
Adjacent Markets

New competitors are moving into our space and we need to do New competitors are moving into our space and we need to do something to defend our market position. something to defend our market position. We see opportunities in adjacent markets (new segments, geographies, etc.) but we dont know where and how to start.

INNOVATION TRIGGERS Margin Erosion Margin Erosion Internal Churn Internal Churn We operate in a mature industry with a mature product portfolio and our margins are beginning to disappear. We operate in a mature industry with a mature product portfolio and our margins are beginning to disappear. Our new ideas are stuck in the mud of internal planning and review Our new ideas are stuck in the mud of internal planning and review cycles. cycles.

Competition Competition
Adjacent Markets Adjacent Markets

New competitors are moving into our space and we need to do New competitors are moving into our space and we need to do something to defend our market position. something to defend our market position. We see opportunities in adjacent markets (new segments, geographies, etc.) but we dont know where and how to start. We see opportunities in adjacent markets (new segments, geographies, etc.) but we dont know where and how to start.

INNOVATION TRIGGERS Margin Erosion Margin Erosion Internal Churn Internal Churn We operate in a mature industry with a mature product portfolio and our margins are beginning to disappear. We operate in a mature industry with a mature product portfolio and our margins are beginning to disappear. Our new ideas are stuck in the mud of internal planning and review Our new ideas are stuck in the mud of internal planning and review cycles. cycles.

Competition Competition
Adjacent Markets Adjacent Markets

New competitors are moving into our space and we need to do New competitors are moving into our space and we need to do something to defend our market position. something to defend our market position. We see opportunities in adjacent markets (new segments, geographies, etc.) but we dont know where and how to start. We see opportunities in adjacent markets (new segments, geographies, etc.) but we dont know where and how to start.
We have so much IP but we cannot convert it into products that resonate We have so much IP but we cannot convert it into products that resonate with consumers. with consumers.

Mining IP Mining IP

INNOVATION TRIGGERS Margin Erosion Margin Erosion Internal Churn Internal Churn We operate in a mature industry with a mature product portfolio and our margins are beginning to disappear. We operate in a mature industry with a mature product portfolio and our margins are beginning to disappear. Our new ideas are stuck in the mud of internal planning and review Our new ideas are stuck in the mud of internal planning and review cycles. cycles.

Competition Competition
Adjacent Markets Adjacent Markets

New competitors are moving into our space and we need to do New competitors are moving into our space and we need to do something to defend our market position. something to defend our market position. We see opportunities in adjacent markets (new segments, geographies, etc.) but we dont know where and how to start. We see opportunities in adjacent markets (new segments, geographies, etc.) but we dont know where and how to start.
We have so much IP but we cannot convert it into products that resonate We have so much IP but we cannot convert it into products that resonate with consumers. with consumers. Our linear product development process doesnt allow for nimbleness and Our linear product development process doesnt allow for nimbleness and trial and error. trial and error.

Mining IP Mining IP Time-to-Market Time-to-Market

INNOVATION TRIGGERS Margin Erosion Margin Erosion Internal Churn Internal Churn We operate in a mature industry with a mature product portfolio and our margins are beginning to disappear. We operate in a mature industry with a mature product portfolio and our margins are beginning to disappear. Our new ideas are stuck in the mud of internal planning and review Our new ideas are stuck in the mud of internal planning and review cycles. cycles.

Competition Competition
Adjacent Markets Adjacent Markets

New competitors are moving into our space and we need to do New competitors are moving into our space and we need to do something to defend our market position. something to defend our market position. We see opportunities in adjacent markets (new segments, geographies, etc.) but we dont know where and how to start. We see opportunities in adjacent markets (new segments, geographies, etc.) but we dont know where and how to start.
We have so much IP but we cannot convert it into products that resonate We have so much IP but we cannot convert it into products that resonate with consumers. with consumers. Our linear product development process doesnt allow for nimbleness and Our linear product development process doesnt allow for nimbleness and trial and error. trial and error. Our product ideas are driven by science and engineering but fail to Our product ideas are driven by science needs. recognize latent or unarticulated customer and engineering but fail to recognize latent or unarticulated customer needs.

Mining IP Mining IP Time-to-Market Time-to-Market Customer Insight Customer Insight

INNOVATION TRIGGERS Margin Erosion Margin Erosion Internal Churn Internal Churn We operate in a mature industry with a mature product portfolio and our margins are beginning to disappear. We operate in a mature industry with a mature product portfolio and our margins are beginning to disappear. Our new ideas are stuck in the mud of internal planning and review Our new ideas are stuck in the mud of internal planning and review cycles. cycles.

Competition Competition
Adjacent Markets Adjacent Markets

New competitors are moving into our space and we need to do New competitors are moving into our space and we need to do something to defend our market position. something to defend our market position. We see opportunities in adjacent markets (new segments, geographies, etc.) but we dont know where and how to start. We see opportunities in adjacent markets (new segments, geographies, etc.) but we dont know where and how to start.
We have so much IP but we cannot convert it into products that resonate We have so much IP but we cannot convert it into products that resonate with consumers. with consumers. Our linear product development process doesnt allow for nimbleness and Our linear product development process doesnt allow for nimbleness and trial and error. trial and error. Our product ideas are driven by science and engineering but fail to Our product ideas are driven by science needs. recognize latent or unarticulated customer and engineering but fail to recognize latent or unarticulated customer needs. We got lucky once or twice. How do we repeat our market success year We got lucky once or twice. How do we repeat our market success year after year? after year?

Mining IP Mining IP Time-to-Market Time-to-Market Customer Insight Customer Insight Sustainability Sustainability

INNOVATION CATEGORIES
Sustaining (Evolve) Breakout (Expand) Disruptive (Envision)

^ 2

7 years

^ 4

7 years

^ 6

7 years

Go/No-Go
(Director Level)

Go/No-Go
(VP/SVP Level)

Go/No-Go
(CEO/Board Level)

Short -Term Advantage

Sustain product life with incremental enhancements and consumer benefits. Since product categories exist, sustaining products are easily accepted by the market. On the other hand profitability can diminish quickly due to ease of imitation . These products are low risk bets with a high probability of short term returns.

Near-Term Advantage
Create new products within an existing product category that leverage high value benefits for consumers. The greater benefits of the product and the fact that it is within a know category drives rapid short-term growth. These product are higher risks bets with higher yet diminishing returns.

Long-Term Advantage
Innovate new to the world products that lead the creation of new markets or industries. Market acceptance may be slower to gain as multiple industry standards compete for dominance. These products are a long term investment with high potential returns over the long term. Other benefits include market dominance & strong competitive position.

Product Level Innovation

Competitive Advantage: 1-3 years

Category Level Innovations

Competitive Advantage: 3-5 years

Industry Level Innovation

Competitive Advantage : 5-7 years

http://13c4.wordpress.com/2007/02/24/50-reasons-not-to-change/

Credit: http://13c4.wordpress.com/2007/02/ 24/50-reasons-not-to-change/

Innovation means creating change instead of just reacting to it.

If you dont get better, you get worse.

My dad

Most products look alike

Good enough

Excellent

Innovation means doing what no one has done before.

Innovation means doing what no one has done before. what no one else would dare doing.

Intuitive bets

Its such a fine line between stupid and clever.

David St. Hubbins, lead singer of Spinal Tap

3 Design (Thinking)?

Innovation means behavioral change.

CUSTOMER JOURNEY

Design: Humanizes technology Creates simple solutions to complex problems Changes the meaning of things

Design (Thinking)?

Strives to keep bad things from happening

Strives to make good things happen.

Manager vs. Designer

We don't teach executives to think like designers. We help them bring innovative products and services to market.

Doing

Thinking

The head and hand divided (R. Sennett) has risks

A map is not the territory.

Alfred Korzybski, 1931

Technology People

Material

Processes Politics

Money Actual materials

4 Do you fail?

"Ever tried. Ever failed. No matter. Try again. Fail again. Fail better.
Samuel Beckett

| Project Masiluleke

5 Do you have an innovation process?

We dont have an innovation process. We hire good people.

Steve Jobs

Design is too important to be left to designers.

Raymond Loewy

Business Analyst

Digital Media Designer

Strategist

Anthropologist

Artists Mechanical Engineer Software Developer

Architects Ethnographer

Industrial Designer

Writer

Cross-over thinking (and doing)

Role Matrix

ITERATIVE

SYNERGISTIC

6 What about the customer?

but it is not dead

Nothing has changed

but it is not dead

Everything has changed!

In the old days, brands wanted everybody to pay attention to them. Now brands need to pay attention to everybody else.
Umair Haque

All products and services will be SOCIAL

Where?

Social networks
What?

Social content
How?

Social publishing Social gaming

What for?

Social search Social shopping

Social currency

Social impact

Open it up and it will design itself.

Norman Lewis

76

DATA is the bank

MEANING is the currency

Create more value than you capture.

Tim OReilly

Social

Meaning
Value Innovation

Chief Meaning Officer checklist

SMALL
Micro
Customizable Relevant Actionable Eye-to-eye Direct Instant Accessible Sharable Atomized

DRAMATIC
Making sense
Cohesion Convergence Morale Consistency Imagination Entertainment Cultural relevance Characters Suspense Comedy Tragedy Identification

SOCIAL
Connecting
Community Belonging Identity Like-minded Affinity New people Status Compassion Fun Love Friendship Hobbies Fans

CONVERSATIONAL PROVOCATIVE RESPONSIBLE

Listening
Empathy Adaptive Changing messages Two-way Let go of control Open Respect Flow Topical Point-of-view

Making you think Doing good

Disruption Divergence Deconstruction Surprise Shock Unexpected Unlikely Challenging status quo Unique Attention-grabbing Different In your face Political Socially responsible Eco-friendly Ethical Human rights Values Family Nation Common Good Earth

7 Convergence?

Media

Energy

Entertainment

Banking

CONSUMER EXPERIENCE

Telco

Auto

Retail

Wellness

eCommerce

Mobile Personal

Social

BRAND EXPERIENCE

Gaming

Instant/ Real-time

Locationbased

Augmented

BUSINESS
TECHNOLOGY

Mobile
Personal

Social

BRAND EXPERIENCE

Gaming

Instant/ Real-time

Locationbased

Augmented

DESIGN

BUSINESS
TECHNOLOGY

Media

Energy

Entertainment

Banking

CONSUMER EXPERIENCE

Telco

Auto

Retail

Wellness

eCommerce

DESIGN

8 Does it need to be simple?

Yes
(its that simple)

Complex ecosystems

Feature creep

Perfection is achieved, not when there is nothing more to add, but when there is nothing left to take away.
Antoine de Saint-Exupery

9 The product is the story. The story is the product.

Because the purpose of business is to create a customer, the business enterprise has twoand only twobasic functions: marketing and innovation.
Peter Drucker

Disrupt schemata

Blend two concepts

10 You.

Never doubt that a small group of thoughtful, committed people can change the world. In fact, it is the only thing that ever has.
Margaret Mead