“An Introduction to Innovation ”

Julie Anne RedaVP Product Strategy, Yesmail Interactive

6/04/2013

A Framework for Disruption (on legacy products)

What you will learn: 1. What is innovation? How do you define it?2. What’s essential in building innovation? 3. How innovative ideas become products?4. Reference Material

About the Products I Work With

• Business to Consumer • SaaS Financial• SaaS Marketing

What is innovation?

Innovation is the profitable implementation of ideas.

What is Innovation?

What is innovation composed of?

+

Where Innovation Starts

• Product / Service Innovation– Innovate in WHAT we do

• Process Innovation– Innovate in HOW we do it

• Paradigm / Business Model Innovation– Innovate in HOW we make money

• Position Innovation– Innovate in marketing mix and strategy

WHERE, WHO, HOW MUCHBessant, John and Tidd, JoeManaging Innovation 2011

Types of Innovation

Incremental- What we do – but better.

Radical- New to the world.

- Marcus Limos, PhD (PPT on Slideshare)

© 2009 John Wiley & Sons Ltd.www.wileyeurope.com/college/tidd

8

BUILDING INNOVATION

S

Steps in Building Innovation Framework

1. Know and Evangelize that innovative ideas come throughout the organization, and predominantly the the people

2. Give cues, tools mechanism to know where to find good ideas

3. Give Time for Collaboration4. Provide Process Funnels to move from idea

to innovation

Your most essential asset - people

• Clients and Users • Profession and Account Services• Sales• Marketing• Talk to Tech Support• Read, Read, Read

This is critical!

Leverage the Assets of your Org

• What makes your company unique? • What makes your brand different? • What unique talent and IP of your organization

do you have, but don’t use?• What unique user experience are out there

ONLY you can offer?

– Mine the talent and the brand

Leverage the Assets and Talent of your organization

TOOLS FOR FINDING GOOD IDEAS

Sources of Innovation according to Peter S. Drucker

• Industry and market changes– What’s changed in our market over the last 12-18 months?

• Demographic changes– What’s changed about our buyers? Our users? Our suppliers?

• New knowledge– What new knowledge do I have, or can I get that I didn’t before?

• Changes in perception– Do buyers perceive us, our market, or competition differently? Can we change perception?

• Unexpected occurrences– When you created a X product or service or changed a process, was there an unexpected

outcome? • Incongruities

– Opportunities to Change the status quo or an incongruity in or product or market that is ripe for change?

• Process needs– Opportunities to do business better?

Deep Dive Example: Look at Markets Similar to Your Own

• How to do this:– Look at lateral technologies that fall under the

same umbrella as your market. – Look a technologies that are similar to your own

but used in different markets. – TALK to people

Example: Automated Testing

• Feature Overview: Provides a test automation and optimization tool, making it easy to rapidly plan and deploy multivariate tests to defined audience segments that automatically optimize, to drive better results for their programs. Includes subject line, friendly from, day of week, time of day, and content.

Benefit to Clients: Clients can rapidly test and optimize their campaigns automatically and get better business results

Core Features:• Subject-line testing• Content Testing• Automatic split cell multi-variant testing• Automatic winning combination to the best version.

Example 2: Leverage the Assets of your Org to respond to demographic changes

Change: Consumers were looking online to decide vacation stays. Challenge: How do we involve participation in the brand experience? • What makes your company unique? • What makes your brand different? • What unique talent and IP of your organization do you have, but

don’t use?• What unique user experience are out there ONLY you can offer?

– Mine the talent and the brand

Leverage the Assets and Talent of your organization

innovation comes from people meeting up in the hallways or calling each other at 10:30 at

night with a new idea, or because they realized

something that shoots holes in how we've been thinking about

a problem.- Steve Jobs

Tackle the Hard Stuff Everyone is Ignoring

• If market performance is declining, ask why?• If there’s a lot of a complaints, how do you

redesign from a user’s experience?• Is the competition assuming users are not as

smart as they might be? • Is the product making smart choices on the

behalf of the user? Is it bloated?

A few more examples

• Dyson– Focused on suction

• Etsy– Change how goods are sold small businesses. Empowered

SMB with technology directly. • Mint.com

– Changed the value equation for consumers and suppliers. • Chockstone

– Built a marketers DIY loyalty platform when the rest of the market assumed marketers shouldn’t do this.

Moving from Idea to Product

Where we began: Innovative Models

Manufacturing MarketingResearch &Development

Marketing ManufacturingResearch &Development

1950/60s – Technology Push

1970s – Market Pull

Innovation Funnels – Interactive Model

Needs in society

and the marketplace

Latest in science & technology

Advances in society

R&D Manufacturing MarketingIdea CommercialProduct

MarketPull

TechnologyPush1990s

Open Innovation Model– Emphasis on Business Model innovation as driver

2000s

© 2009 John Wiley & Sons Ltd.www.wileyeurope.com/college/tidd

Moving from Idea to Innovation

Resources

• Managing Innovation: Integrating Technological, Market and Organizational Change by John Bessant, and Joe Tidd

• The Innovator’s Delimma – Clay Christensen• Innovation and Entrepreneurship – Peter Drucker• The Connected Company – Dave Grey• Open Innovation: The New Imperative for

Creating And Profiting from Technology - Henry William Chesbrough

Thank you!