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GIMI Level 1 Training – Part 2

IXL Innovation Olympics, Summer 2015


July 15, 2015

March 5, 2014

© 2009 GIM Institute. All Rights Reserved.


Objectives

Objectives

• Share approach, structure, methods used in the IXL Innovation Olympics Program

• Prepare participants to take the test for the GIMI Level 1 certification

• Understand the tools, techniques and approaches to generate innovation breakthroughs

© 2009 GIM Institute. All Rights Reserved. 2


Agenda

Agenda

• Review of July 7 Training

• Process Overview (continuation)

• Recap and Next Steps

© 2009 GIM Institute. All Rights Reserved. 3


Agenda

Agenda

• Review of July 7 Training

• Process Overview (continuation)

• Recap and Next Steps

© 2009 GIM Institute. All Rights Reserved. 4


Review of July 7
Training

© 2009 GIM Institute. All Rights Reserved. 5


Demystifying Innovation > Definition > Business Innovation

Business innovation is the creation AND capture of new value in new


ways

New Networks New Pricing New Business


and Partners Strategies Models

PRICING MODEL

PRODUCTION OFFERING DELIVERY MARKETS


Technologies Products Occasions Customers
Processes Services Locations Needs
Assets Systems Channels Experiences
Brand

NETWORKS & PARTNERS

New Ways to New New Ways to New Customers +


Produce Offerings Deliver Experiences

New Top Line New Cost New Strategic New Real


Growth Reductions Premiums Options

© 2009 GIM Institute. All Rights Reserved. 6


Demystifying Innovation > Innovation Breakthroughs

Innovation Breakthroughs focus on four key components – trends,


needs, business models and combined capabilities

COMBINE CAPABILITIES IN UNIQUE WAYS TO


WOW CUSTOMERS & BUILD BARRIERS TO ENTRY

© 2009 GIM Institute. All Rights Reserved. 7


Innovation Techniques

There are four basic innovation fundamentals to think and act


differently

1 2

INDIVIDUALS / GROUPS put disparate A STRUCTURED APPROACH for creative


information together problem solving

3 4

DIFFERENT THINKING STYLES CROSS FUNCTIONAL TEAMS and networks


at each step to get different PERSPECTIVES

© 2009 GIM Institute. All Rights Reserved. 8


Process (1) Innovation Intent

Be explicit about why you need to innovate


PROCESS

1. Innovation 2. Opportunity 4. Business


3. Fields-of-Play 5. Business Case
Intent Insights Concepts
ACTIVITIES

• Agree on where and where not to innovate


• Define growth targets and strategic thrusts for breakthrough innovations
• Understand investment profile
OUTPUTS

© 2009 GIM Institute. All Rights Reserved. 9


Process (2) Opportunity Insights

Get very smart about your industry by generating dots from all
sources then organize dots on the BOM
PROCESS

1. Innovation 2. Opportunity 4. Business


3. Fields-of-Play 5. Business Case
Intent Insights Concepts

Generate Dots

Partners on
Your Company Future Competitors Adjacencies
the Value Chain
ACTIVITIES

Curren
t
compet
itor

Compani
es from
different
geograp
hies

Compani
es
redefinin
g the
industry

Small
and
emergin
g
compani
es

Organize the Dots


OUTPUTS

Business
Opportunity
Map (BOM)

© 2009 GIM Institute. All Rights Reserved. 10


Process > (3) Fields-of-Play

Identify strategic spaces to innovate not individual ideas


PROCESS

1. Innovation 2. Opportunity 4. Business


3. Fields-of-Play 5. Business Case
Intent Insights Concepts

3. Opportunity 4. Field-of-Play
2. Industry Definition and
Beyond

1. Company
Sandbox

5. Actionable 6. Growth
Field-of-Play Platform

© 2009 GIM Institute. All Rights Reserved. 11


Beverage Company
Example

© 2009 GIM Institute. All Rights Reserved. 12


Process > Process and Outputs

To define a clear innovation focus requires five steps, each with a set
of activities and outputs associated with it
PROCESS

1. Innovation 2. Opportunity 4. Business


3. Fields-of-Play 5. Business Case
Intent Insights Concepts
DESCRIPTION

Be explicit about why Get very smart about Identify strategic Build a pipeline of Flesh out business
you need to innovate your industry spaces to innovate robust business concepts into
not individual ideas concepts not idea business cases to
fragments make it real

Strategic Business Implementation


Fields-of-Play Business Concepts
Innovation Focus Opportunity Map Plan
OUTPUTS

© 2009 GIM Institute. All Rights Reserved. 13


Process > Major Beverage Company Example > Step 1: Case for Change

A beverage company is worried that the industry is becoming the next


“tobacco” and this would lead to a company decline

“We have to change to…”


• Be a leader
• Transform the industry
• Prevent decline and maintain our growth

Year 0 Year 5

© 2009 GIM Institute. All Rights Reserved. 14


Process > Major Beverage Company Example > Wrong Process

A single idea was suggested by the Senior Executive but could not be
accepted when tested with a Mock Board team

Mock Committee

I have water in Water is free! I want flavored


my faucet! drinks!

Water!

© 2009 GIM Institute. All Rights Reserved. 15


Process > Major Beverage Company Example > Step 2: Opportunity Insights

To get smarter about the problem, research was done by looking at


trends, new technologies and talking to customers, suppliers, and others

We did research To get a lot of dots

Consumer research New Technologies

Trends

Nutraceuticals

Healthy lifestyle

New Ingredients

© 2009 GIM Institute. All Rights Reserved. 16


Process > Major Beverage Company Example > Step 3: Fields-of-Play

By looking at the dots and connecting groups of dots, three growth


areas were developed that will get the company board excited

Healthier
Beverages

Indulgence

Liquid
Snacks

© 2009 GIM Institute. All Rights Reserved. 17


Process > Major Beverage Company Example > Step 4: Business Concepts

Each Field-of-Play can fill the growth gap and has a pipeline of new
concepts that will keep the company one step ahead of the competition

Healthier
Beverages
Pipeline Diet cola Water Juice Tea

today T1 T2 T3 T4 time

… Copy our products


Competitor Pipeline…

today T1 T2 T3 T4 time

© 2009 GIM Institute. All Rights Reserved. 18


Process > Major Beverage Company Example > Step 5: Pitch and Business Case

With these FOPs and Business Concepts, the Senior Executive got the
board excited about innovation and propose her original idea of water

Healthier
Beverages $1Trillion market!!
Indulgence Board of Directors
Flavored
Tea! Water! water!
Liquid Juice! Electrolytes
Snacks

© 2009 GIM Institute. All Rights Reserved. 19


Agenda

Agenda

• Review of July 7 Training

• Process Overview (continuation)


 Step 4: Business Concepts
 Step 5: Business Case

• Recap and Next Steps

© 2009 GIM Institute. All Rights Reserved. 20


Process Overview
Steps 4 and 5

© 2009 GIM Institute. All Rights Reserved. 21


Process > Process and Outputs

To define a clear innovation focus requires five steps, each with a set
of activities and outputs associated with it
PROCESS

1. Innovation 2. Opportunity 4. Business


3. Fields-of-Play 5. Business Case
Intent Insights Concepts

• Agree on where and • Determine the trends • Identify new areas for • Identify new idea • Understand what
where not to innovate that could impact your the company to play fragments around your conditions need to be
• Define growth targets business in Field of Play tested first
and strategic thrusts • Identify insights and idea • Prioritize one of these • Generate range of new • Summarizes your
for breakthrough fragments around the Fields-of-Play business concepts business concept in a
innovations company, competitors, Develop your Select the best concept compelling, visually
ACTIVITIES

• •

• Understand your partners and the prioritized Field of Play to recommend stimulating and
investment profile future to make it more insightful way
• Conduct some initial
• Organize and structure understandable to due diligence to validate • Meet your organization’s
your work in a Business others the priority concept internal conditions for
Opportunity Map new business
development

Strategic Business Implementation


Fields-of-Play Business Concepts
Innovation Focus Opportunity Map Plan
OUTPUTS

© 2009 GIM Institute. All Rights Reserved. 22


Process > Process and Outputs

Today’s training will focus on the last two steps


PROCESS

1. Innovation 2. Opportunity 4. Business


3. Fields-of-Play 5. Business Case
Intent Insights Concepts

• Agree on where and • Determine the trends • Identify new areas for • Identify new idea • Understand what
where not to innovate that could impact your the company to play fragments around your conditions need to be
• Define growth targets business in Field of Play tested first
and strategic thrusts • Identify insights and idea • Prioritize one of these • Generate range of new • Summarizes your
for breakthrough fragments around the Fields-of-Play business concepts business concept in a
innovations company, competitors, Develop your Select the best concept compelling, visually
ACTIVITIES

• •

• Understand your partners and the prioritized Field of Play to recommend stimulating and
investment profile future to make it more insightful way
• Conduct some initial
• Organize and structure understandable to due diligence to validate • Meet your organization’s
your work in a Business others the priority concept internal conditions for
Opportunity Map new business
development

Strategic Business Implementation


Fields-of-Play Business Concepts
Innovation Focus Opportunity Map Plan
OUTPUTS

© 2009 GIM Institute. All Rights Reserved. 23


Agenda

Agenda

• Review of July 7 Training

• Process Overview (continuation)


 Step 4: Business Concepts
 Step 5: Business Case

• Recap and Next Steps

© 2009 GIM Institute. All Rights Reserved. 24


Process > (4) Business Concepts

Build a pipeline of robust business concepts not idea fragments


PROCESS

1. Innovation 2. Opportunity 4. Business


3. Fields-of-Play 5. Business Case
Intent Insights Concepts

Competitor & Substitutes

1. Field of Play

Mega Global Markets and


Forces Customers

3. Business Innovation
2. Idea Fragments Concepts

Your Assets and Capabilities


Source: Thinking and Acting Differently to Make Innovation Real by Hitendra Patel and Ron Jonash

© 2009 GIM Institute. All Rights Reserved. 25


Process > (4) Business Concepts

The type of concept generated is based on which dots are used to form
the concepts

Incremental Concept Breakthrough Concept Radical Concept

1 2 3

• Concepts where all dots are from • Concepts where at least 2 of the • Concepts where all dots are from
Definition

within the core dots are within core out of the core
• Actionable concept because of
dots within the core

• Internal Employees • Internal Employees • R&D team


• External partners • Out-of-the-box, visionary or
Who

imaginative people

© 2009 GIM Institute. All Rights Reserved. 26


Process (4) Business Concepts > Anchor points

Concepts can now be easily created by connecting dots from each row
to create a complete concept – like putting puzzle pieces together

Field of Play: Indulgence

Customer Beverage Concept 1


Experience For women who are married with children
and need a convenient way energize,
purchased through grocery stores, a
beverage that fits in a purse with variable
caffeine choices differentiated by trusted
Delivery female brand names and elegant packaging
sold as single servings

Offering

Beverage Concept 2
For teenagers influenced by emerging sports
stars, where consumer desires new and
Production
different beverages, a sports drink with
customizable flavor options sold at sports
stores and sporting events, with a rewards
program that enables frequent users to
Business acquire new flavors before others
Model

Key: Concept Anchor: Starting point in business opportunity concept


generation; “hot spot” of interest © 2009 GIM Institute. All Rights Reserved. 27
Process (4) Business Concepts > Making Concepts Robust

Concepts are made robust by asking rigorous questions around each


element of the Business Opportunity Map
Which Networks and
Partners?
What is the Offering? Whom do you Target
• With whom do you plan to partner this Offering?
• What experiences does the offering
to produce the offering?
involve? • What market segment do we target?
• With whom do you plan to partner
• What products does the offering • What need do we serve?
to access the offering?
involve? • What else are they using?
• What services does the offering • Who could be a lead user?
involve?
• Where do we start?
• How is the offering branded?

What Capabilities do you Where and When do


Require? you Offer?
• What technologies do we use to create What Business Model? • On what places is the offering
the offering? provided?
• How do you make money?
• What processes do we have to create • Through which channels is the
the offering? • What is the pricing model? offering provided?
• What materials do we use to create the • If the organization is a non-profit, • How is the logistics of the offering?
offering? how do you get funds from this
concept to sustain their business • When do we offer it?
• What assets do we use to create the operations?
offering? (Equipment, human skills etc.)

© 2009 GIM Institute. All Rights Reserved. 28


Process (4) Business Concepts > Build Concepts > Template

Exercise 4.1: Build Concepts


Concept Value Chain
We will provide ____Offering (What is the concept?)____________ __ to/for ____Markets (Who is it for?)______________________
To meet this ___________What need is it fulfilling?_______________ through ___What channels of delivery?___________________
Using __________Key partners/technologies/resources___________ and make money by _____Business model_________________

OFFERING MARKET
Products, Services, Brand Customers, Needs, Experiences

• •
• •
• •
• •
BUSINESS MODEL
• BUSINESS MODEL •
Networks, Partners, Pricing
• Networks, Partners,
Models

Pricing Models




• • •
• • •
• •
• •
• •
• •

Competencies, Assets Technologies Occasion, Location, Channels


PRODUCTION DELIVERY

Value proposition: ____________________________________________________________________________________

© 2009 GIM Institute. All Rights Reserved. 29


Process (4) Business Concepts > Prioritize Concept > Template

Exercise 4.2: Concept Prioritization


Rank each business concept to identify the best concept

Attractiveness Fit Total

Concept 1:

Concept 2:

Concept 3:

Concept 4:

Concept 5:

Note: Use scale of 1 (lowest) to 5 (highest)

Prioritized Concept is __________________.


© 2009 GIM Institute. All Rights Reserved. 30
Process (4) Business Concepts > Prioritize Concept > Template

Use attractiveness and fit to focus on the best business concepts, and
prioritize the concept with the highest attractiveness and highest fit

Screening Matrix
High
High Priority

5
1
Attractiveness

3 1 Concept 1
2 Concept 2
3 Concept 3
4 4 Concept 4
2
5 Concept 5

Low Priority
Low
Low Fit High

Attractiveness Fit
• Relative Size of Prize (Addressable Market) • Feasibility
• Options it Provides • Winnability
• Reward / Risk • Link with Strategy
• Other? • Passion
• Other?

© 2009 GIM Institute. All Rights Reserved. 31


Process (4) Business Concepts > Reverse Engineer Concept > Template

Exercise 4.3.1: Reverse Engineer Concept

Which do you
What do we have to believe has to be true for the
least believe?
business concept to be a success?
(Check the top three)

10

Consider the Following “Triggers” During this Exercise:


Business Competitor
Suppliers Employees Production Offering Delivery Customers Partners
Model s

© 2009 GIM Institute. All Rights Reserved. 32


Process (4) Business Concepts > Reverse Engineer Concept > Template

Exercise 4.3.2: Reverse Engineer Concept


Reverse engineer the top three conditions that you least believe

Which conditions are For each, what are the


most essential to explore “fast to failure” tests or What are the desired
first to determine mission critical outcomes or decisions?
viability? experiments?

1.

2.

3.

© 2009 GIM Institute. All Rights Reserved. 33


Agenda

Agenda

• Review of July 7 Training

• Process Overview (continuation)


 Step 4: Business Concepts
 Step 5: Business Case

• Recap and Next Steps

© 2009 GIM Institute. All Rights Reserved. 34


Process > (5) Business Case

Flesh out business concepts into business cases to make it real


PROCESS

1. Innovation 2. Opportunity 4. Business


3. Fields-of-Play 5. Business Case
Intent Insights Concepts

Executive Summary Key Insight Value Proposition Detailed Business Concept

Business Model Market Size Key Uncertainties Action Plan

© 2009 GIM Institute. All Rights Reserved. 35


Process (5) Business Case > Elements

We suggest six major elements for the business case, but you may
want to modify / add to these depending on your client and solution

Suggested Elements
1
Executive Summary
If you ask different people about the
right elements for a business case like this,
2
Make the Concept Real you will get different answers. This is a
guide, not a formula to be copied. In
general, you must consider:
3
Define the Market • Client’s situation
• Client’s feedback to you on past ideas
4 • The information and support you think
Business Model + Market Size or believe the client needs to make a
decision
5 • The type of solution you are
Identify the Risks + Options recommending
• Experiences from other classes
6 and past jobs
Action Plan
© 2009 GIM Institute. All Rights Reserved. 36
Process (5) Business Case > Elements

Each element is intended to answer a different question to “sell” the


client on your proposal

• Quickly, introduce the team, summarize how you got here by connecting the
Executive
1 challenge to the Field-of-Play to the Concept
Summary
• If you had 90 seconds to summarize the idea, what would you say?

• What is the key insight / “a-ha” about your concept?


Make the
2 • What is the concept?
Concept Real
• What does it look and feel like?

• What customer problem are you solving?


3 Define the Market • Why will they participate / pay and why will they continue to do so?
• How do they currently solve the problem? What else is out there?

• Who are the stakeholders and partners? Why will they participate?
Business Model +
4 • How do you make money?
Market Size
• How big is this opportunity?

Identify the • What are the Risks of this business and how will you mitigate them?
5 • What new Options does this business enable?
Risks + Options

• What does the client need to do tomorrow, next month, next year to make
6 Action Plan this business a reality?
© 2009 GIM Institute. All Rights Reserved. 37
Process (5) Business Case > Elements > 1. Executive Summary

If you had 90 seconds to summarize the idea, what would you say?

• Our concept is…

Use bullets, images,


• Customers will… sentences, a video, or
anything else, but make sure
• The business model works by…
you:
• Capture your audience’s
attention
• Estimated business size of XX millions / billions because…
• Clearly communicate the
key elements of your idea
• It also has the potential to…
• Get them excited about
what’s coming next
• Our plan requires…

© 2009 GIM Institute. All Rights Reserved. 38


Process (5) Business Case > Elements > 2. Make the Concept Real

Make the concept real by connecting a few critical insights to a clear


description of your concept and a visual representation

What is the key insight /


What is the concept? What does it look and feel like?
“a-ha” about your concept?
• Why do you think your business • Clearly describe about the key • “A Picture is Worth a Thousand
concept is a great idea? components: Words”
• What is it about the customer - What Market / Segments? • Videos, non-working prototypes,
need, the offering, competitor - What Offerings? etc.
moves, or other triggers (see - What Delivery / Channel? • Use magazine images, clipart,
below) that makes you believe
- What Capabilities, Assets, sketches, diagrams to clearly
there is a large business
Technologies are required to visualize your concept
opportunity here?
Produce this?
- What partners?
- What business model(s)?

© 2009 GIM Institute. All Rights Reserved. 39


Process (5) Business Case > Elements > 3. Define the Market

Clearly define who you are targeting and why they will pick you –
essentially imagine what the client would say / do to sell the customer

1
3 2

Why will customers participate /


What customer problem are you How do they currently solve the
pay and why will they continue to
solving? problem? What else is out there?
do so?

• What is the problem? • What makes the concept “sticky” • What does their life look like
• How do you solve it? so customers will come to you today?
and stay? • Who are the current / potential
• How much will they pay? Why do competitors or alternatives?
you believe that’s the right • Why are you different AND better?
amount?

Even if the customer is not specifically buying something – they could be joining and
participating in a community – consider that they are “spending” their time.

© 2009 GIM Institute. All Rights Reserved. 40


Process (5) Business Case > Elements > 4. Business Model + Market Size

Clearly define who you are targeting and why they will pick you –
essentially imagine what the you would say / do to sell the customer

?
Who are the stakeholders and partners? How big is this opportunity?
Why will they participate? How do you make money?

• Which stakeholders/partners are critical? Why? • How big is the market?


• What are the “gives” and “gets” for each stakeholder • What portion of the market does the business concept
and partner? target?
• Are they interesting, valuable, or compelling from their • What is a reasonable estimation of the value captured
point of view? by the company?
• Why would they work with you and not a competitor? • Clearly define your assumptions and data sources and
your rationale - you need to be able to define this

You need to be clear, data-driven and logical here – put yourself in the shoes of partners and
other stakeholders and imagine the reasons why they would and would not participate.

© 2009 GIM Institute. All Rights Reserved. 41


Process (5) Business Case > Elements > 5. Identify the Risks and Options

Show that you are anticipating the potential upside and downside to
this business

Size Business
Services
Portable
Computers
Servers

Time

What are the Risks of this business and how will you
What new Options does this business enable?
mitigate them?

• What key uncertainties remain with this concept? How • With the customers you acquire, assets you create,
can you test them? partnerships you make, what could you do in the
• What are the major technology, commercial or future (3,5,10 years from now)?
execution risks? • Example 1: Apple’s Music Store setup the buying
• What could happen if you DON’T pursue this business? behavior, credit card info and business model for the
(e.g. competition, disruption, etc.) App Store.
• Example 2: Amazon’s investments in servers and web-
technology gave it the expertise and assets to sell cloud
computing services to companies.

© 2009 GIM Institute. All Rights Reserved. 42


Process (5) Business Case > Elements > 6. Action Plan

What does the client need to do tomorrow, next month, next year to
make this business a reality?

• What three things would you do Monday morning?

• What would you do in the next three months?

• What would you do in the next 12 months?

• What resources – people, funding, shared services, etc. – will be


required?

© 2009 GIM Institute. All Rights Reserved. 43


Process (5) Business Case > Approach

Capture the essence of the concept with pictures and taglines and try
to create a brochure to quickly make a business case

Use Pictures to
present the
concept

Use Brochures to
test the concept and
make the Business
Case

© 2009 GIM Institute. All Rights Reserved. 44


Process (5) Business Case > Essential Parts > Visualization

Visualizations, charts, graphs, diagrams, pictures, protocepts make


the concept look and feel “real” beyond the key facts

© 2009 GIM Institute. All Rights Reserved. 45


Process (5) Business Case > Approach > Storytelling

Throughout the presentation, use stories to make your case

STORY 1 • How big is it; how strategically important it is; how this helped set them up for
something bigger; how sustainable is it; how has it changed the company,
What this business will look customer, partners, etc.
like and feel like when your • This is a good place for an article from Wall Street Journal/Financial Times, or a
client has been successful taped interview with the CEO on how successful the company has become if you
and won? fast forward to the future.

STORY 2 • Could be a good place to use either illustrative role play or live debate to
How did your client get demonstrate how company did different things to win big in this opportunity
there? space and in this concept.
• Here you have to be clear who are the lead customers, lead partners, how is this
sequenced (roadmap/roll-out plan), etc.

STORY 3 • Clearly layout what your client did starting Monday morning to move forward
and implement this concept and field of play/platform
What did your client do the • This could be a good place to use either role playing or simulation of what a
next Monday morning? company learns and discusses based on some the early pilots or experiments that
it conducts starting soon.

© 2009 GIM Institute. All Rights Reserved. 46


Agenda

Agenda

• Review of July 7 Training

• Process Overview (continuation)

• Recap and Next Steps

© 2009 GIM Institute. All Rights Reserved. 47


Recap and Next
Steps

© 2009 GIM Institute. All Rights Reserved. 48


Process > Process and Outputs

To define a clear innovation focus requires five steps, each with a set
of activities and outputs associated with it
PROCESS

1. Innovation 2. Opportunity 4. Business


3. Fields-of-Play 5. Business Case
Intent Insights Concepts
DESCRIPTION

Be explicit about why Get very smart about Identify strategic Build a pipeline of Flesh out business
you need to innovate your industry spaces to innovate robust business concepts into
not individual ideas concepts not idea business cases to
fragments make it real

Strategic Business Implementation


Fields-of-Play Business Concepts
Innovation Focus Opportunity Map Plan
OUTPUTS

© 2009 GIM Institute. All Rights Reserved. 49


Process (1) Innovation Intent

Be explicit about why you need to innovate


PROCESS

1. Innovation 2. Opportunity 4. Business


3. Fields-of-Play 5. Business Case
Intent Insights Concepts
ACTIVITIES

• Agree on where and where not to innovate


• Define growth targets and strategic thrusts for breakthrough innovations
• Understand investment profile
OUTPUTS

© 2009 GIM Institute. All Rights Reserved. 50


Process (2) Opportunity Insights

Get very smart about your industry by generating dots from all
sources then organize dots on the BOM
PROCESS

1. Innovation 2. Opportunity 4. Business


3. Fields-of-Play 5. Business Case
Intent Insights Concepts

Generate Dots

Partners on
Your Company Future Competitors Adjacencies
the Value Chain
ACTIVITIES

Curren
t
compet
itor

Compani
es from
different
geograp
hies

Compani
es
redefinin
g the
industry

Small
and
emergin
g
compani
es

Organize the Dots


OUTPUTS

Business
Opportunity
Map (BOM)

© 2009 GIM Institute. All Rights Reserved. 51


Process > (3) Fields-of-Play

Identify strategic spaces to innovate not individual ideas


PROCESS

1. Innovation 2. Opportunity 4. Business


3. Fields-of-Play 5. Business Case
Intent Insights Concepts

3. Opportunity 4. Field-of-Play
2. Industry Definition and
Beyond

1. Company
Sandbox

5. Actionable 6. Growth
Field-of-Play Platform

© 2009 GIM Institute. All Rights Reserved. 52


Process > (4) Business Concepts

Build a pipeline of robust business concepts not idea fragments


PROCESS

1. Innovation 2. Opportunity 4. Business


3. Fields-of-Play 5. Business Case
Intent Insights Concepts

Competitor & Substitutes

1. Field of Play

Mega Global Markets and


Forces Customers

3. Business Innovation
2. Idea Fragments Concepts

Your Assets and Capabilities


Source: Thinking and Acting Differently to Make Innovation Real by Hitendra Patel and Ron Jonash

© 2009 GIM Institute. All Rights Reserved. 53


Process > (5) Business Case

Flesh out business concepts into business cases to make it real


PROCESS

1. Innovation 2. Opportunity 4. Business


3. Fields-of-Play 5. Business Case
Intent Insights Concepts

Executive Summary Key Insight Value Proposition Detailed Business Concept

Business Model Market Size Key Uncertainties Action Plan

© 2009 GIM Institute. All Rights Reserved. 54


Next Steps

Next Steps

• Take the Level 1 certification exam (July 20) and pass it (get 70%
or higher)

• Assess yourself using the Individual Innovation Audit Tool

• Give us feedback (certification@giminstitute.org)

© 2009 GIM Institute. All Rights Reserved. 55


Appendix
Exercises for Steps 4 - 5

© 2009 GIM Institute. All Rights Reserved. 56


Step 4:
Business Concepts

© 2009 GIM Institute. All Rights Reserved. 57


Process (4) Business Concepts

Build a pipeline of robust business concepts not idea fragments


PROCESS

1. Innovation 2. Opportunity 4. Business


3. Fields-of-Play 5. Business Case
Intent Insights Concepts
ACTIVITIES

• Identify business concepts around the prioritized Field-of-Play


• Prioritize one of these Business Concepts
• Reverse engineer your prioritized business concept

Business Concept
OUTPUTS

OFFERING MARKET

BUSINESS
MODEL

PRODUCTION DELIVERY

© 2009 GIM Institute. All Rights Reserved. 58


Process (4) Business Concepts > Objectives

Exercise 4: Build Concepts


Objectives

• Identify “hot spots” and connect ideas to create new business concepts

• Develop new business opportunities

© 2009 GIM Institute. All Rights Reserved. 59


Process (4) Business Concepts > Anchor points

Concepts can now be easily created by connecting dots from each row
to create a complete concept – like putting puzzle pieces together

Field of Play: Indulgence

Customer Beverage Concept 1


Experience For women who are married with children
and need a convenient way energize,
purchased through grocery stores, a
beverage that fits in a purse with variable
caffeine choices differentiated by trusted
Delivery female brand names and elegant packaging
sold as single servings

Offering

Beverage Concept 2
For teenagers influenced by emerging sports
stars, where consumer desires new and
Production
different beverages, a sports drink with
customizable flavor options sold at sports
stores and sporting events, with a rewards
program that enables frequent users to
Business acquire new flavors before others
Model

Key: Concept Anchor: Starting point in business opportunity concept


generation; “hot spot” of interest © 2009 GIM Institute. All Rights Reserved. 60
Process (4) Business Concepts > Making Concepts Robust

Concepts are made robust by asking rigorous questions around each


element of the Business Opportunity Map
Which Networks and
Partners?
What is the Offering? Whom do you Target
• With whom do you plan to partner this Offering?
• What experiences does the offering
to produce the offering?
involve? • What market segment do we target?
• With whom do you plan to partner
• What products does the offering • What need do we serve?
to access the offering?
involve? • What else are they using?
• What services does the offering • Who could be a lead user?
involve?
• Where do we start?
• How is the offering branded?

What Capabilities do you Where and When do


Require? you Offer?
• What technologies do we use to create What Business Model? • On what places is the offering
the offering? provided?
• How do you make money?
• What processes do we have to create • Through which channels is the
the offering? • What is the pricing model? offering provided?
• What materials do we use to create the • If the organization is a non-profit, • How is the logistics of the offering?
offering? how do you get funds from this
concept to sustain their business • When do we offer it?
• What assets do we use to create the operations?
offering? (Equipment, human skills etc.)

© 2009 GIM Institute. All Rights Reserved. 61


Process (4) Business Concepts > Example

Exercise 4.1: Building Concepts


Concept Example: Apple iPod
We will offer an integrated music player and store for people that want to easily take their
music with them through partnerships with artists and record labels and direct sales
through our stores

OFFERING MARKET
Products, Services, Brand Customers, Needs, Experiences

• Integrated hardware and • People who want to be trendy and


software solution for music show off their unique style, want
• Range of colors and shapes to carry all of their songs with
• One song/app downloads BUSINESS them, wherever they are
through on online store MODEL • Incredibly easy from device
Networks, Partners, purchase through music listening
Pricing Models • Free to tryout gadgets
• Premium pricing
• Music Labels Partners
• Own physical space to sell Apple
• Manufacturing partners • Stylish ergonomic hardware
products
• Single-song purchase • Faster, more secure software
• Trained sales people
and downloads • Integrated website with
• World-class design capabilities
• Fun and attractive marketing campaigns automated downloads
• Proprietary music compression and • Direct sales through physical
downloading Apple Stores, and online sales

Competencies, Assets Technologies Occasion, Location, Channels


PRODUCTION DELIVERY

© 2009 GIM Institute. All Rights Reserved. 62


Process (4) Business Concepts > Build Concepts > Template

Exercise 4.1: Build Concepts


Concept Value Chain
We will provide ____Offering (What is the concept?)____________ __ to/for ____Markets (Who is it for?)______________________
To meet this ___________What need is it fulfilling?_______________ through ___What channels of delivery?___________________
Using __________Key partners/technologies/resources___________ and make money by _____Business model_________________

OFFERING MARKET
Products, Services, Brand Customers, Needs, Experiences

• •
• •
• •
• •
BUSINESS MODEL
• BUSINESS MODEL •
Networks, Partners, Pricing
• Networks, Partners,
Models

Pricing Models




• • •
• • •
• •
• •
• •
• •

Competencies, Assets Technologies Occasion, Location, Channels


PRODUCTION DELIVERY

Value proposition: ____________________________________________________________________________________

© 2009 GIM Institute. All Rights Reserved. 63


Process (4) Business Concepts > Prioritize Concept > Template

Exercise 4.2: Concept Prioritization


Rank each business concept to identify the best concept

Attractiveness Fit Total

Concept 1:

Concept 2:

Concept 3:

Concept 4:

Concept 5:

Note: Use scale of 1 (lowest) to 5 (highest)

Prioritized Concept is __________________.


© 2009 GIM Institute. All Rights Reserved. 64
Process (4) Business Concepts > Prioritize Concept > Template

Use attractiveness and fit to focus on the best business concepts, and
prioritize the concept with the highest attractiveness and highest fit

Screening Matrix
High
High Priority

5
1
Attractiveness

3 1 Concept 1
2 Concept 2
3 Concept 3
4 4 Concept 4
2
5 Concept 5

Low Priority
Low
Low Fit High

Attractiveness Fit
• Relative Size of Prize (Addressable Market) • Feasibility
• Options it Provides • Winnability
• Reward / Risk • Link with Strategy
• Other? • Passion
• Other?

© 2009 GIM Institute. All Rights Reserved. 65


Process (4) Business Concepts > Prioritize Concept

Exercise 4.2: Concept Prioritization

Screening Matrix
High
High Priority
Attractiveness

Low Priority

Low Fit High

© 2009 GIM Institute. All Rights Reserved. 66


Process (4) Business Concepts > Reverse Engineer Concept > Template

Exercise 4.3.1: Reverse Engineer Concept

Which do you
What do we have to believe has to be true for the
least believe?
business concept to be a success?
(Check the top three)

10

Consider the Following “Triggers” During this Exercise:


Business Competitor
Suppliers Employees Production Offering Delivery Customers Partners
Model s

© 2009 GIM Institute. All Rights Reserved. 67


Process (4) Business Concepts > Reverse Engineer Concept > Template

Exercise 4.3.2: Reverse Engineer Concept


Reverse engineer the top three conditions that you least believe

Which conditions are For each, what are the


most essential to explore “fast to failure” tests or What are the desired
first to determine mission critical outcomes or decisions?
viability? experiments?

1.

2.

3.

© 2009 GIM Institute. All Rights Reserved. 68


Step 5: Business
Case Details

© 2009 GIM Institute. All Rights Reserved. 69


Process (5) Business Case

Bring the key facts, visualizations and tactical plans together in a


coherent, insightful and compelling presentation
PROCESS

1. Innovation 2. Opportunity 4. Business


3. Fields-of-Play 5. Business Case
Intent Insights Concepts

• Identify the key insight, value proposition, detailed description of business concept, business model, market size
ACTIVITIES

and action plan of the concept


• Visualize concepts through charts, graphs, diagrams, pictures, protocepts to make the look and feel “real” beyond
the key facts
• Use several tactical issues / questions to address related to your concept

Executive Summary Key Insight Value Proposition Detailed Business Concept


OUTPUTS

Business Model Market Size Key Uncertainties Action Plan

© 2009 GIM Institute. All Rights Reserved. 70


Process (5) Business Case > Objectives

Exercise 5: Create Mini-Business Plan


Objectives

• Understand what conditions need to be tested first

• Create a plan which clearly summarizes your business concept in a

compelling, visually stimulating and insightful way

• Meet your organization’s internal conditions for new business development

(criteria, data rigor, etc.)

© 2009 GIM Institute. All Rights Reserved. 71


Process (5) Business Case > Approach

Capture the essence of the concept with pictures and taglines and try
to create a brochure to quickly make a business case

Use Pictures to
present the
concept

Use Brochures to
test the concept and
make the Business
Case

© 2009 GIM Institute. All Rights Reserved. 72


There are three types of information to include in your business case
– key facts, visualizations, and tactical plans

The key facts of the concept include the key insight, value
proposition, detailed description of business concept, business
model, market size and action plan

Visualizations, charts, graphs, diagrams, pictures, protocepts


make the concept look and feel “real” beyond the key facts

There are several tactical issues / questions to address related to


your concept and a range of tools and techniques to use

© 2009 GIM Institute. All Rights Reserved. 73


Process (5) Business Case > Essential Parts

The key facts of the concept include the key insight, value proposition
business concept, business model, market size and action plan

• How big is the market? What


• What is the “a-ha” about your
4. Rough portion of the market does the
1. Key concept?
Estimate of business concept target?
Insight • What is the key question and how Size of Prize • What is a reasonable estimation of
does your concept answer it?
the value captured by your client?

• Which stakeholders (including your


• What are the benefits of this
2. Value 5. Business client) give or receive value?
concept?
Proposition Model • How will you make money of this
• Who gets these benefits?
value exchange?

• How could you visualize your


3. Detailed concept? • What next steps would you
Description 6. Action
recommend for this business
of Business • What additional detail about each Plan
of the major aspects of your concept?
Concept
concept can you provide?

© 2009 GIM Institute. All Rights Reserved. 74


Process (5) Business Case > Essential Parts > Visualization

Visualizations, charts, graphs, diagrams, pictures, protocepts make


the concept look and feel “real” beyond the key facts

© 2009 GIM Institute. All Rights Reserved. 75


Process (5) Business Case > Essential Parts > Enabling Implementation

There are several tactical issues / questions to address related to your


concept and a range of tools and techniques to use

Tactical Questions to Support Implementation Multiple Tools + Techniques

• How can you work with potential stakeholders


and sponsors to secure their support and
needed resources?

• What barriers to implementing this concept do


you foresee within your organization?

• What early wins can you design into the


implementation to excite people around your
concept?

© 2009 GIM Institute. All Rights Reserved. 76


Process (5) Business Case > Essential Parts > Enabling Implementation – Onboarding Stakeholders

How can you work with potential stakeholders and sponsors to secure
their support and needed resources?

Concept Visualization Reverse Engineering Last Experiment First

• “A Picture is Worth a • What are the key • “Fast to Failure”


Thousand Words” uncertainties identified by
the team, leaders and • Test the biggest
• Use magazine images, other stakeholders? uncertainties that could
clipart, sketches, put the concept in
diagrams to clearly • Anticipate the skeptics jeopardy first
visualize your concept and have answers to their
questions before they ask
them

© 2009 GIM Institute. All Rights Reserved. 77


Process (5) Business Case > Essential Parts > Enabling Implementation – Testing Key Assumptions

What barriers to implementing this concept do you foresee within


your organization?

Internal and External Lead


Protocepting / Prototyping Simulation
/ Potential Partners

• Three Dimensional Models, • What internal stakeholders or • Anticipate how customers,


non-working prototypes, life- companies in the value chain partners, competitors and
size representations would benefit big if this your company will react
concept succeeds?
• Move beyond sketches to • Use prototypes, mock-ups,
something people can feel, • Get them involved early, and role-playing with real (or
touch and hold convince them of the fake) customers to test and
opportunity, and of the need document reactions, results,
to share some of the risk etc.

© 2009 GIM Institute. All Rights Reserved. 78


Process (5) Business Case > Essential Parts > Enabling Implementation – Designing Quick Wins

What early wins can you design into the implementation to excite
people around your concept?

Rapid Experimentation / Testing Lead Customers / Early Adopters

• “Version 0.9,” “80% Solution”, “Good • What customer segments do you


Enough” believe will be the first to try your
product? Why?
• Get a working version of the product /
service into a test market ASAP • Identify the segments and needs and
focus initial efforts with these groups
• Address emerging problems as they
come

© 2009 GIM Institute. All Rights Reserved. 79


Process (5) Business Case > Build the Business Case

Exercise 5: Flesh out business concepts into business cases to make it


real

Executive Summary Key Insight Value Proposition Detailed Business Concept

Business Model Market Size Key Uncertainties Action Plan

© 2009 GIM Institute. All Rights Reserved. 80


About GIM
Institute

© 2009 GIM Institute. All Rights Reserved. 81


GIM Institute

The Global Innovation Management Institute provides a range of innovation


capability building programs to individuals and corporations

To Associations, Corporates
GIM Institute Provides Innovation Programs
and Schools
Level 1 Level 2 Level 3 Level 4
ASSOCIATE MASTER MANAGER LEADER

Innovation Techniques

GIMI has four levels of cer fica on

Innovation Management
• Training Programs
LEVEL1 LEVEL2 LEVEL3 LEVEL4
IDEATION IDEA INNOVATION BUSINESSBUILDER
TECHNIQUES ARCHITECT MANAGEMENT ORINNOVATION
MANAGER

UNDERSTAND BUILD AND SELL LEARN TO COMMERCIALIZE


INNOVATION BUSINESSCONCEPTS COMMERCIALIZE IDEA ORMANAGE

Conferences
BREAKTHROUGHS AND MANAGE INNOVATION
Submit Application
for Action Project INNOVATION PORTFOLIO
Complete
Innovation Course Complete Action Complete Submit Application
Pass Level 1 Exam Project Successfully Innovation for Action Project or
Management Innovation Program
Course Complete


Pass Level 3 Exam Successfully

Certification Programs
© 2009-2012 GIM Ins tute. All Rights Reserved. 6

• Speeches

In a cost-effective, standardized, scalable program


Books Course Pack Online Tools Certification Test Group Training Online Course

© 2009 GIM Institute. All Rights Reserved. 82


GIM Institute > Innovation Programs > Certification Levels

Each level builds on previous levels with an emphasis on learning by doing


through projects

Individual Mastery Team Mastery Organizational Mastery Leadership Mastery

Level 1 Level 2 Level 3 Level 4


ASSOCIATE MASTER MANAGER LEADER
UNDERSTAND MASTER INNOVATION DEVELOP AND COMMERCIALIZE
INNOVATION FOR TOOLS & BUILD MANAGE INNOVATION IDEAS AND/OR MANAGE
PRACTITIONERS BUSINESS CONCEPTS PROGRAMS INNOVATION INITIATIVES

Level 1 certification is Level 2 will apply Level Level 3 certification Level 4 applies Level 3
designed to teach you 1 learning to a real- reflects an learning to real
about the use of idea world issue or understanding of the challenges and coming
generation tools and to challenge on innovation up with insights and
apply them in creating generating new growth management solutions in managing
more and better ideas ideas or opportunities techniques that an innovation in
for the organization innovation manager organizations
needs to succeed

© 2009 GIM Institute. All Rights Reserved. 83


GIM Institute > Innovation Programs > Certification Levels

Completing this program makes you eligible to receive Associate (Level 1) and
Master (Level 2) certifications

Individual Mastery Team Mastery Organizational Mastery Leadership Mastery

Level 1 Level 2 Level 3 Level 4


ASSOCIATE MASTER MANAGER LEADER
UNDERSTAND MASTER INNOVATION DEVELOP AND COMMERCIALIZE
INNOVATION FOR TOOLS & BUILD MANAGE INNOVATION IDEAS AND/OR MANAGE
PRACTITIONERS BUSINESS CONCEPTS PROGRAMS INNOVATION INITIATIVES

Level 1 certification is Level 2 will apply Level Level 3 certification Level 4 applies Level 3
designed to teach you 1 learning to a real- reflects an learning to real
about the use of idea world issue or understanding of the challenges and coming
generation tools and to challenge on innovation up with insights and
apply them in creating generating new growth management solutions in managing
more and better ideas ideas or opportunities techniques that an innovation in
for the organization innovation manager organizations
needs to succeed

© 2009 GIM Institute. All Rights Reserved. 84


Faculty Bio > Julius Bautista

GIM Institute Team Bios

Joanna Chua currently serves as the Director of Programs and Certification for the Global
Innovation Management Institute (GIM Institute), overseeing all trainings, workshops and events,
certification processes including application, testing and review, and partner relations.

Outside of GIM Institute, Joanna leads IXL Center’s corporate education programs with IEL-RS,
EmiratesNBD, Infineon, Ingredion and SABIC. She also works closely with universities such as
Singapore Management University, Yonsei University, University of Calgary, University of Toronto
and Hult International Business School to manage the innovation courses and Action Project
programs delivered in partnership with IXL. She is also active in the Asian community through the
National Association of Asian American Professionals (NAAAP). She currently serves as the VP of
Programming at NAAAP Boston overseeing three committees including Professional Development,
Entrepreneurship and Women in NAAAP.

Joanna has a B.S. in Management Information Systems from the Ateneo de Manila University. She
also has an MBA from the Hult International Business School. She is fluent in several languages
including English, Filipino, Mandarin and Hokkien.

Julius Bautista currently serves as the Director of Programs and Certification for the Global
Innovation Management Institute (GIM Institute), overseeing all trainings, workshops and events,
certification processes including application, testing and review, and partner relations.

With the IXL Center, Julius has done projects related to innovation strategy and marketing. He has
done work for organizations such as IHS Cera, Natura, CIGNA, OLPC, Johnson Controls, Verizon,
Ingredion and TIS in Bolzano to help them find new growth opportunities from innovation
initiatives. He has also managed innovation programs such as the Hult Prize Accelerator and
Colciencias Locomotora de Innovacion to help teams and companies drive their ideas to
commercialization.

Julius has a B.S. in Electronics Engineering and a M.S. in Radioelectronic Systems from the Czech
Technical University in Prague. He also has an MBA from the Hult International Business School in
Cambridge, MA. He speaks several languages including Filipino, English and Czech

© 2009 GIM Institute. All Rights Reserved. 85