Innovation basics

Fredrik Ljungberg+46 (0)733 311 100

Innovation

• New product/service

• Satisfied customers

• Successful business

Many innovation projects fail – why?

• Problem in product development?

• Problem to attract customers?

• Match customer needs and create new business– “Customer development” harder than “Product

development”

Unknown need and solution

• You fail in 98% of the cases • But late

• Stay focused, execute the business plan, etc.

Concept Finance Dev. Test Launch

Unknown need and solution

• First market, then product• Invest few resources, fail early• Learning through iterations

• Patent and NDA

Concept Finance Dev. Test Launch

• Paul Ahlstrom: “If you have an idea, don’t build anything.”

• Steve Blank: “Get the hell out of the building.”

• Randy Komisar: “Getting to Plan B.”

Before you start developing

• Customer hypothesis • Henry Ford: “If I had asked people what they wanted, they

would have said faster horses”

• Test hypotheses as early as possible • Identify “customer pain” and your solution

with customer

• Build a “minimal viable product”

Unique product

• It is probably not unique• “Nobody walks in here with a new idea. I’ve

seen all ideas 10 times.” • “For every decent idea there are 30-40 guys

working on it.”• Why is a unique product good? • Product only one piece of the business model

• Scalable and repeatable business model

How the business/company creates, delivers and captures value

Example

What to do?

• Formulate hypotheses of customer pains and solutions part of everybody’s day to day work

• Most resources to test customer hypotheses on the market (learning)

• Fewer resources spent on development of a minimal viable product (much spent later)

• Think business model, not product only• Promote iterative work and learning, not

delivering what you thought initially

Contact

• Fredrik Ljungberg • +46 733 311 100