Strategic Innovation, assassinator of companies and markets. Engagement group presentation

2. What is innovation?
Innovation: ( noun ) a new idea, device, or method;
the act or process of introducing new ideas, devices
or methods. Source: Merriam Webster Dictionary
The word “innovation” itself descends from the Latin
words in and novare, meaning ‘to make new.’

3. What is innovation?
Innovation is a new idea, more effective device or
process.
Innovation can be viewed as the application of better
solutions that meet new requirements, inarticulated
needs, or existing market needs.
This is accomplished through more effective products,
processes, services, technologies, or ideas that are
readily available to markets, governments and society.
The term innovation can be defined as something
original and more effective and, as a consequence, new,
that "breaks into" the market or society.

4. Innovation
=
Creativity + Delivery

5. In what department in your company
does innovation take place?

6. Innovation
Type
Operational
(Process)
Tactical
(Product)
Strategic
(Business
Models)
Focus Improving processes
to optimise delivery of
an existing
product/service to a
defined market
Improving a market
position by introducing
new products/services
or business model
The disruption and
destruction of existing
markets to create fertile
soil for new markets
Measurement
s
Throughput, defects,
quality, waste, line
downs, yields, ROI
Market share,
Customer satisfaction,
Customer delight, ROI
Share price, Funding,
Capital, Alliances,
bankruptcies, takeovers
Department Finance, Quality,
Manufacturing
HR, Training
Marketing, Sales
Product Development,
Technology
development ?
Aim Fulfill existing customer
need cheaper
Understand emerging
needs of customers
and fulfill
Create a need for
users they did not even
know they had
Boundary The company/group The Market(s)
?
What is strategic innovation

7. Strategic innovation disrupts and destroys

10. The Starfish Business Model
USERS
CUSTOMERS
SUPPLIERS
ADVERTISERS
OTHER
STARFISH

11. Impact: 10x every 5 years

12. Who are using strategic
innovation
If you don’t explore new business models – you will go extinct
McKinsey & Co

13. The large players according MIT

14. Competition
Collaboration
Assassination
Creation
Cannibalization
The battle for world domination

15. Find one error in this picture

21. Death of the Funnel
Google owns search (Dying)
Apple now support add blockers
Amazon Prime Exploding
Facebook Search used by 1B every day
LinkedIn dominates B2B
Move from desk to mobile
Move from homepage to Apps
Nobody is going to find your products
or homepage anymore.

22. Unicorns are predominantly
from Silicon Valley
Unicorns
1B$ Cap
147 total
53 in US
13 in EU
505B$ Cap

23. More Starfish Models

25. Why is it important

26. No Industry is safe

27. The operating logic of most companies is
to compete in a well defined market

28. Economics is the science of choice in scarcity

29. What is needed?
Innovation is difficult for well-established companies. By and large, they
are better executors than innovators, and most succeed less through
game-changing creativity than by optimizing their existing businesses.
McKinsey

30. Strategic Innovation - disruption
Does not accept market rules
Takes advantage of asymmetric faults in market
Collaborate rather than compete
Starfish model: Connects rather than owns
Get users to generate value
Creates new markets
Create new users
Differentiate between customers and users
Experimental rather than professional

31. If you can be disrupted,
you will be disrupted
unless
you disrupt yourself

32. Can you cannibalize your own
revenue stream?

33. The Hedgehog principle
Most companies are build around doing one thing
really well and effective

34. WE ARE A SUCCESSFUL
COMPANY

35. You will not change
what you believe is perfect

36. Rethink your market
• From loyalty to empowerment
• From efficient to intelligent
• From low cost to no cost
• From ownership to access

37. Time for a reflection
How could you disrupt your own market and company?

38. Innovate like Google

41. Google Innovation
• Differentiate between customers and users
• Forget ROI – focus on providing max value for user
• 20% of time allocated to passion projects
• Organisation level does not dictated pay
• Minimum 7 direct employees
• Focus on user, learn from user, learn about user
• Have user generate data, knowledge & Insights
• Experimentation over perfection

42. Organisations don’t innovate
Engaged employees innovate

43. Thank You