innovation for impact · 10/16/2018 · copyright 2018 practice of innovation, llc curtis r....

Copyright 2018 Practice of Innovation, LLC Curtis R. Carlson Not to be copied or distributed in any form without written permission PoIPoI

Curtis R. Carlson, Ph.D. Founder and CEO, Practice of Innovation, LLC

President and CEO, SRI International: 1998–2014email: [email protected]

website: www.practiceofinnovation.com October 16, 2018

1

©The way we work is our most important innovation

Innovation for Impact Making value creation an

increasing U.S. advantage

mailto:[email protected]

http://www.practiceofinnovation.com


Summary

2

• We won’t thrive on talent and hard work alone • A paradigm shift in innovative impact is needed and is possible

• We must move from a focus primarily on entrepreneurship to a focus on value creation

• Improvements of 2-10 times in innovative output are often possible


Our Perspective

3

Value Creation Workshops

BusinessWeekTop-10 Business Book of the Year

Copyright 2018 Practice of Innovation, LLC Curtis R. Carlson Not to be copied or distributed in any form without written permission PoIPoI 4

"Every leader will at least give lip service to the idea that the world is moving faster and that we need to do a better job at innovation.

But if you go into an enterprise and ask people to describe their innovation system, you get blank looks.

They have none.” Gary Hamel

Innovation is a Mystery to Most


What Is Innovation?

All significant innovations are surprising at first

Innovation generically: Creation and delivery of new, lasting knowledge to societal

E=MC2

Invention: Something novel reduced to practice

< 3% used

Innovation: Creation and delivery of new customer value for society with a model for sustainability

NSF’s artificialretina


Global Innovation Economy

• Exponentially advancing technologies

• Exponentially increasing competition • Transformational new business models

• Abundant major opportunities


Mobile devices

Digital education

Social media

Media: ultra-3D

Intelligent services

Regenerative medicine

Additive manufacturingQuantum computingRobotics

Synthetic biology

Internet

Unlimited Important Opportunities

7

Blockchain

Cloud

5G

PWC https://www.pwc.com/gx/en/issues/analytics/assets/pwc-ai-analysis-sizing-the-prize-report.pdf


Unprecedented Markets & Competition


How Much Can We Improve?

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• Companies: <15 years • University R&D • Gov’t RD&I agencies • National labs • Venture capitalists

2-10 times


Median Income Not Growing

10

Real GDP/capitaReal median household income

180

160

140

120

1001984 1998 2002 2006 2010 2014 2018

The challenge is not just jobs: it is meaningful jobs


$200B

$160

$120

$80

$40

$02010 11 12 13 14 15 16 17 18

Gov’t R&D Funding Falling Behind

Not tracking GDP growth

Response: be much smarter at value creation and innovation


Is Entrepreneurship the Right Focus?

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1.4M

1.2

1.0

0.8

0.6

Num

ber o

f Job

s

1992 1995 1998 2001 2004 2007 2010 2013 2016

<1 yr old companies

• 300 university I&E programs • $Bs/year on gov’t programs

• 6,000 professors • 1,600 incubators

But 700K new ventures in 1980 and 500K in 2016


Value Creators Versus Entrepreneurs: Gallup

13

1200

Professors and professionals

Copyright 2018 Practice of Innovation, LLC Curtis R. Carlson Not to be copied or distributed in any form without written permission PoIPoI10

Most Failures Start at the StartCo

st

Design Dev’t Production

Most Failures

< 20% of R&D has any value for stakeholders

No Value Proposition

R&D


Fail fast to succeed early

©New Perspectives Required

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Learn, search, and create fast to succeed early


NAE Report: Value-Creation Practices• 2-yr study on proven practices & NSF Eng. Centers

• Current practices are often outdated • A paradigm shift in societal impact is possible

• Use of a Value-Creation Playbook

ImpactValue-Creation

Playbook

Practice of Innovation, LLC


The 3 Big Ideas of Value-Creation

NABC value propositions

Comparative learning

Important opportunitiesLEANIMPACT

SCRUM


Important Opportunities

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Use

Low

Low High

High

Bohr

Edison

Pasteur

New

kno

wle

dge


“3-C” Positioning

�19

13

4

2

Customers Capabilities

Competition

Beach-head users or customers

White space

1 to 3 key insights #1 Why not solved before #2 Solution & business model


Example: Augmented Mobility

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2. Key insight— how to attach to the body?

3. Key insight— flexible coupling

1. Important need: millions of people with limited mobility

4. Approach: wearable augmentation


Customer benefits Customer costs

Definition of Customer Value

Value =

�21

Benefits & costs perceived by the customer: not us


Approach: offering & sustainability model

Benefits /costs

Competition & alternatives

Need

Core Framework: Value Proposition

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• Complicated systems don’t work • Start with the basics to simplify learning, search, and creativity


N A B/$C

The Most Common Failure

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• 95% of presentations are like this • If you can’t describe your value proposition, you don’t yet know what you are doing


Critical Importance of NABC

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NeedApproachBenefits/costsCompetition

10 yrs.


Value-Creation Forums Comparative learning for “exponential” improvement

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• Recurring, multidisciplinary, and facilitated meetings • 4-6 teams, 2-10 minute NABCs with feedback • Presenters listen: no arguing • Learn risk-reduction, IP, “bring-it-to-life”

“Which is better, A or B?”


How High-Value Innovations Develop

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Value

Time

Important opportunity

Initial target

Start Interesting problem?

End result


PlaybookPractice of Innovation, LLC


Suggested NAE Implementation for NSF

WorkshopTeam alignment

on value creation

Value-Creation ForumsOn-going collaborative

value creation


PlaybookPractice of Innovation, LLC

Kick off Working hypothesis for the value proposition


Summary

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• We won’t thrive on talent and hard work alone • A paradigm shift in innovative impact is possible • We must move to a focus on value creation

• Important opportunities • NABC value propositions & Value-Creation Playbook • Comparative learning

• Improvement possible: 2-10 times • Example: team projects at WPI Impact

Value-Creation Playbook

Practice of Innovation, LLC

Curtis R. Carlson, Ph.D. Founder and CEO Practice of Innovation, LLC President and CEO SRI International 1998-2014

2 Portola Valley CA 94028 650 529 1815

[email protected] Copyright 2018 Practice of Innovation, LLC Curtis R. Carlson Not to be copied or distributed in any form without written permission PoI

The way we work is our most important innovation

Thank You: Discussion

©

Curtis R. Carlson, Ph.D. Founder and CEO, Practice of Innovation, LLC

President and CEO, SRI International: 1998–2014 email: [email protected]

website: www.practiceofinnovation.com October 16, 2018

29

mailto:[email protected]

http://www.practiceofinnovation.com

innovation for impact · 10/16/2018 · copyright 2018 practice of innovation, llc curtis r....

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