innovation strategy

Who Is Your Competition?

Posted on 03.11.21

Recently, I was asked to submit a proposal for work with an existing client. The work broadened their horizons, pushing both their approach and my creativity. After learning their scope of work (boundaries and constraints), budget, and time frame, I submitted a proposal.

As is the case sometimes, the company chose a different consultant. In fact, I was pretty sure they had someone else in mind to do the work when I held conversations with them. What is important to learn is not just what the winning bid was but who was the competition.

Elements of Competition

Competition as a consultant, a product development professional, or engineering manager is not always obvious. Our response to competition is part of our organizational strategy. As I say over and over again, strategies overarching framework for innovation. Strategy defines who we are as an organization and directs our actions. So, the first element of competition is strategy.

Strategy
Presence
Willingness
Capacity

Strategy

Strategy seems simple. Just decide what you’re going to do. Yet, in product innovation, strategy is more than that. Our organizational mission drives decisions and rate of technical expansion. Our values direct how we interact in marketplaces. Our vision determines how aggressive we are in development.

Strategy also determines the tactics of everyday business life. How big is the budget? How many resources are committed to R&D? What is our quality goal? Spend some time on your strategy to be successful. Learn more in our Exclusive Strategy Reset Workshop here.

Presence

The second element of competition is presence. Though it is annoying, campaign posters and yard signs spring up every election season. Why? Name recognition results in votes. You may not know the candidate’s stand on a policy, but you’ve seen his face on a campaign poster and you know his name. The same goes with real estate agents and personal injury lawyers. Their advertising – including billboards, television spots, and newspaper ads – all include a photograph. When we see a face, we know they are present.

In product development, we must establish presence by interacting with our customers on a regular basis. They know us, trust us, and give us feedback. Working directly with customers in co-creation leads to competitive advantage.

Do you have presence in your industry?

Willingness

Another element of competition is willingness. Some of you might remember that willingness is my word of the year for 2021 (read more here). Willingness means acceptance and patience while being bold and courageous at the same time. Willingness also means working in areas that are strategically aligned with business goals and objectives. The work that my existing client was seeking was work I was willing to do. My competition was also willing to do it. But there are hundreds of consultants who would have said “no” right off the bat.

It is important in product innovation to know what you’re willing to do – again, what is the strategy? If your organizational vision is to serve a global market, you might turn away local-only product development effort. If your mission statement includes “being a cost leader” you are putting reasonable boundaries on the target customer.

Determine your markets and willingness to serve them. Focus on design and development for product innovation where the organization is willing and able to work profitably.

Capacity

In thinking about who is your competition, you want to also consider capacity to do project work. If your design team is stretched thin on multiple next generation products already, should you enter another competitive market? On the other hand, if your products are entering maturity and decline phases in the product life cycle, should you strategically increase capacity and R&D?

While your organizational capacity to take on new product development innovation work is different than your competitors, you must gauge their approach versus market growth. A tool that I love for this is the SWOT analysis – strengths, weakness, opportunities, and threats. It’s a simple way to thoroughly analyze internal capabilities and consider external factors impacting business growth.

Understand your Competition

Competition comes at us from known sources and unexpected places. Taking a look at the four key elements of competition can help you be more successful in product innovation (and save both time and money!). First, be firm in your strategy – what are you doing, how are you doing it, and why are you doing it?

Next, understand that a market presence gives the impression of a competitive advantage. If your customers are involved with you in product development, you will shorten project development times and achieve higher levels of customer satisfaction. Then, determine your willingness to design and develop new products within various target markets. In some situations, leave the new products to competitors – especially if they do not align with your strategy. Finally, if you’ve got strategic alignment, market presence, and a willingness to do the work, check your capacity. Hiring and training more staff for new product development projects might be viewed as expensive but you don’t want to miss any key opportunities!

Learn More

If you want to learn how to implement effective strategic goals to beat the competition, please join me for the Exclusive Reset Your Strategy Workshop on Monday, 15 March (Part 1) and on Monday, 22 March 2021(Part 2). Special discounts for the unemployed as you navigate new competition. Contact me at [email protected] for more information.

A Division of Global NP Solutions, LLC

Study. Learn. Earn. Simple.

About Me

I am inspired by writing, teaching, and coaching. I tackle life with an infusion of rigor, zeal, and faith. It brings me joy to help you build innovation leaders. Teresa Jurgens-Kowal is an experienced innovation professional with a passion for lifelong learning with a PhD in Chemical Engineering and an MBA in Computer and Information Decision Making. My credentials include PE (State of Louisiana), NPDP, PMP®, and CPEM, and I am a DiSC® certified facilitator. Contact me at [email protected] or area code 281 + phone 787-3979 for more information on coaching for entrepreneurs and innovators.

What Word Will Describe 2021?

Posted on 01.07.21

I think we can all agree – with a giant sigh of relief – that 2020 is behind us. Yet, to succeed with personal and professional growth, we must look ahead. What will 2021 bring for you?

While I believe that some world events and forces engulf us in ever-growing avalanches of events, we do have much control over our everyday lives. We make choices – to keep or change jobs, to invest in new technology or to adapt existing systems. The selections we choose help us to achieve our goals.

Each year, I choose a single word to help me guide my decisions and choices throughout the year. I ponder my word of the year on a daily basis and I consider my short-term and long-range goals in light of my word of the year.

Outreach

For 2019, I chose the word outreach as my word of the year. I spent a lot of time developing new relationships and making the effort to rekindle old relationships. Reaching out to others was my mantra for the year – how could I help my family, friends, and clients?

I used the word outreach to guide decisions for my business and to increase my network of professional colleagues. Each day I considered how I could reach out to others and help them increase their success in innovation and management?

Economical

In December of 2019, I chose the word economical for my word of the year in 2020. As I described in another post here, I never imagined that “economical” would mean searching for toilet paper at the supermarket. As 2020 dawned, I wanted to optimize (economize) my use of all resources.

In the end, the word economical served me well in 2020. I optimized both business and personal relationships, streamlined processes and systems, and added new time management programs to my daily routine.

In my personal life, my husband and I temporarily moved to an apartment much smaller than our house, so I have learned to economize space as well. (Though, the local Goodwill employees started frowning when I showed up – I guess they didn’t want to sort through another hundred items of my barely-worn shirts and skirts…)

Willingness

So that brings us to 2021. I learned a lot about myself in 2020 with the relocation in the middle of a government lockdown causing shortages at the supermarket. Economizing was important. But I also learned that I needed to be patient, flexible, and continue to optimize my time. Thus, my word of the year for 2021 is willingness.

Willingness will help me focus on goals and objectives. This year, my business goals include expansion of course offerings – check out my 1Q 2021 classes here. I also want to continue growing my network and helping others connect. These goals lead to the initiation of the Creative Cafe.

Creative Cafe

In the Creative Cafe, we can share ideas on innovation, leadership, and engineering management while growing our networks. We’ll meet about every two weeks for an hour for a completely open discussion. Our first introductory session of the Creative Cafe is Friday, 8 January 2021 at 10:00 AM CST. Here’s the Zoom link. Join the fast-paced hour-long conversation at no cost.

What is Your Word for 2021?

Share your word for 2021 in the comments and come to the Creative Cafe on Friday, 8 January to share your word. My goal is to go above and beyond your expectations this year – willingness!

See you soon!

To define yourself as a transformative innovation leader, you need to sustain continuing education. Innovation is learning! For more information on open courses and customized learning for innovation best practices, please contact me at [email protected] or area code 281, phone 787-3979.

A Division of Global NP Solutions, LLC

Study. Learn. Earn. Simple.

About Me

Product Design Process

Posted on 06.25.20

New products do not magically appear overnight. Despite our collective image of a lone scientist working over a smoldering beaker of neon-colored fluid, most innovations are born of a rigorous process. In fact, studies show that firms with flexible product design processes generate repeatable new product success more than their competitors who approach innovation in an ad-hoc manner.

Watch the short overview video and then read the full blog for details.

Often called the new product development (NPD) process or product innovation process, a product design process takes the innovation team on a journey. We must first identify what strategic needs our customers have, what problems trouble them, and how we can help them solve those problems efficiently. The product design process delivers both steps to advance innovation as well as a set of tools to understand and quantify customer needs.

Steps in The Product Design Process

Most product development processes focus on the deliverables. In Stage X, you must have a fully fleshed-out business case. At Phase Y, you need to have built a functional prototype. What’s different about the product design process is that it focuses on actions that lead new product innovation from rigorous ideas to commercial products.

Step 1 – Ideation

Ideation is a creative process to generate, develop, and communicate new ideas. It involves searching for customer problems and defining the problem space. The two categories of tools deployed in ideation are divergent thinking and convergent thinking.

Divergent thinking tools seek to expand the question and derive alternate concepts. Sometimes we misinterpret a customer’s problem through our own biases (please see the blog on Optimism Bias). Other times, we jump to solutions without considering the whole scope of the problem. This can make products overly complex while they do not satisfy customers most basic needs. Consider the long list of micro-print included with prescription drugs. The warnings might be justified, but an 80-year old patient with macular degeneration cannot possibly determine appropriate dosage.

In convergent thinking, we take the creative ideas and solutions generated by cross-functional teams and collate them. The purpose of this step in the design process is to find common themes or concepts that will address large market segments so that we can move forward in the product design process. It is impossible – and fraught with risk and expense – to pursue all ideas.

Step 2 – Concept Design

Concept design introduces clarity and alignment for the product. It provides a way to explain what the product will do, how it will function, and how it will solve the customer’s problem. Often the concept design is a simple narrative description or sketch. This yields high-level feedback from customers to validate that the problem definition is correct. When organizations skip this step, they end up designing and selling products that only almost solve a customer’s problem. Unfortunately, this leaves a big gap for competition to fill with a better product that satisfies customer needs with better quality.

Step 3 – Embodiment

As a product moves from concept design into more detailed design, a product innovation team accounts for technical and economic feasibility. Customers will exchange hard earned money for products that offer convenience, simplification, or luxury experiences. The embodiment of the product must balance the features and attributes of the design against cost of manufacturing and, ultimately, the selling price.

Conjoint analysis is a common tool used at this stage of the product design process. This tool allows customers to rank and prioritize a select set of features against prices. The outcome of a conjoint analysis provides the product innovation team with a list of the most important features that must be included in a final product. Results of the study are important since it links desired features and quality levels with willingness to pay.

Step 4 – Draft Product Specifications

At this point in the design process, the “what” and “why” of the product are well defined. The next step is to determine “how”. The initial product specifications lay out physical dimensions and manufacturability. A key tool in this phase is D4X, or Design for X, where X may represent assembly, maintenance, or usability.

The expected outcome of the draft product design specification stage is to quantify and clarify the product design. Communication of the purpose of the product, quality levels of individual features, and the cost/benefit of the product are also important outcomes. Since the next stage is determining final product development and manufacturing methods, the draft product design specifications should be complete and reflect all key characteristics that the product must deliver.

Step 5 – Detailed Design

A primary tool in the detailed design process is QFD (Quality Function Deployment). This methodology converts the draft design specifications into specific manufacturing and engineering criteria. In other words, QFD translates the customer needs into measurable requirements. QFD is a sophisticated tool with matching, prioritization, and scaling of customer needs, competitive responses, and design attributes, combined with cost to create engineering metrics for new product manufacturing. QFD originated in the automotive industry and uses a graphic called the House of Quality. (Read more in the blog post Innovation Tools: What is QFD?)

Step 6 – Final Production

Sometimes called “Fabrication and Assembly”, the last step in the design process for new product development is manufacturing and producing the product. This includes prototype testing, market testing, and systems integration. Prototype testing ensures that the product works as it was designed to work and meets customer needs. Companies should test a variety of prototypes from those with just a few relevant features (e.g. the minimally viable product, MVP) to a high-fidelity working prototype. It is less expensive to modify the manufacturing and distribution process is before finalizing specifications and production moves to large scale.

The Product Design Process

The product design process does not replace a traditional or emergent project management process (like Stage-Gate® or Scrum). Instead, product design lies parallel to the project management decisions. Product design forces enhanced communication and interaction with customers resulting in better overall product designs and reception in the marketplace. While we have only briefly touched on some of the important product design tools here, you can read about them in depth in the comprehensive text, Product Design and Innovation by Carlos Rodriguez. He includes a lot of very thorough examples to lead you through the entire product design process.

How Do You Use Product Design?

Every industry, company, and product is different. You may know your market well, so that a new product simply needs limited design and testing. Or you may be developing brand new technology and need to conduct extensive testing with potential and existing customers to ensure strategic alignment. In this case, you will want to explore more of the product design phases and tools with more depth.

The most important part of any product innovation processes to ensure strategic business alignment. Developing product strategy precedes the product design process. Start with our Reset Your Strategy workshop in August 2020. Pre-register here. Contact me at [email protected] for more information.

A Division of Global NP Solutions, LLC

Study. Learn. Earn. Simple.

About Me

Have You Missed the Digital Transformation?

Posted on 06.18.20

I never cease to be amazed at the number of buzzwords that enter our vocabulary. Good ideas become nauseating when entrenched in bad phrases. Of course, the idea of keeping sick people away from old people or those with weakened immune systems is good, yet the phrase “social distancing” is oxymoronic and getting very, very old very, very quickly.

Digital transformation is another phrase that shot off like a firework but really doesn’t have a lot of teeth in its meaning. The idea of digital transformation is that all businesses should read recognize technology is a constant and growing component of products and services. Yet a whole lexicon of “digital” words has sprung up to describe a simple evolution in product innovation.

Digital Innovation

One new phrase is “digital innovation.” It means applying digital technology to increase operational efficiency, drive customer engagement, or to develop innovation products and services. Frankly, this is a very broad definition and can hearken back to the good – but simple – idea that computers can do basic calculations faster than humans. We have been using digital technology throughout my entire life to improve operations. For example, petrochemical plants are controlled via a DCS (digital control systems) that monitors temperature, pressure, flow rates, and valve positions. This is not a “new” concept.

What is somewhat different in the past few decades is evolution of a “digital strategy”. Instead of tacking on an application or programming for a product after it is designed and developed, innovative companies today recognize the importance of integrating technology throughout the development stages.

Digital Integration

Technology generally allows us to move product innovation at a faster pace. Using social media and 3D printing to generate prototypes, new product development (NPD) practitioners garner rapid customer feedback. We conduct many more inexpensive trials before freezing the design.

Further, when software is fully integrated into a product’s functionality, features can be changed and adapted on an ongoing basis. We can customize many of the features and functions of products and services for each individual user. Digital transformation thereby enhances the relationship between the customer and the producer.

Advance Your Digital Transformation

Did you miss the digital transformation? Don’t feel bad if you missed the ascension and collapse of a buzzword. It’s likely your company did not miss opportunities to integrate technology into product design or customer experience. Using technology to analyze large data sets and to cull insights from qualitative measures is commonplace.

If your organization is not integrating applications, software, and IT into product and service development, you do need a digital strategy. The digital strategy also identifies how competitors are using technology to gain market share. If you are falling short, you may need to consider simple steps such as how to reshape your organization using apps or text messages to gain customer feedback.

Don’t Miss Another Opportunity

Language, phrases, and buzzwords don’t tell the whole story. You need to look at your basic processes and systems. Product innovation starts with proven best practices, customized to ensure competitive advantage. If you are trying to integrate digital strategy or trying to figure out what to do emerging from the corona-panic, you must join our online Reset Your Strategy workshop. Click here to pre-register (special rates for unemployed). Contact me at [email protected] or area code (281) phone 787-3979 for more information.

A Division of Global NP Solutions, LLC

Study. Learn. Earn. Simple.

About Me

Do You Have a Capability Strategy?

Posted on 06.04.20

Everyone working in innovation has more ideas in time. Every organization has more projects to work than resources. And all of us truly believe in the purpose and benefits of the ideas and projects we create.

Yet, we also have limited resources. There are only 24 hours in a day, seven days in a week. We have limited budgets and talent to accomplish our innovation project vision. It is an age-old problem.

Alongside your business and innovation strategies, it is important to implement a capability strategy. The capability strategy is an offshoot of product portfolio management, allowing an organization to plan and execute projects with higher productivity and efficiency. You will learn to schedule and balance resources and talent to ensure effective product innovation.

Capabilities

In the resource-view of the firm, capabilities and competencies represent the talent and special skills of an organization. For example, the capability to run ultra-high vacuum electron scanning instruments requires not only specialized equipment but competent and trained users. Similarly, a successful restaurant requires specialty software to convey orders to the kitchen and well-trained staff that are attentive to diners’ needs.

Any special equipment or skills of your staff that differentiate your organization are key capabilities. These are listed as strengths on a SWOT analysis (read about Using SWOT to Reset your Innovation Strategy here). You also might work diligently to train and acquire staff with unique competencies. This includes giving employees both formal and informal learning opportunities, on-the-job training, and freedom for idea exploration.

The Capability Plan

In product portfolio management (PPM), senior management prioritizes a list of innovation projects to maximize value. Optimizing resources (time, money, equipment, and people) is a key activity of PPM. In prioritizing active projects (those assigned budgets and resources), the portfolio managers must assess the capability strategy. Where there are competency gaps, provide training or hire new talent with appropriate skills. Where there are deep skills without immediate project utility, re-train or release resources for other work.

“The Toy Box” (an imaginary but representative company) has five innovation projects on the books. One project is nearing completion and will be launched soon. The others are at varying stages of completion, from concept development to final prototype testing.

Because The Toy Box has only a handful of market researchers assigned to innovation projects, they note a gap in the “motors” and “boats” projects. Each project needs the attention of three full-time equivalent (FTE) market researchers to conduct prototype testing during the next three months. The Toy Box employs only four market researchers full-time. This results in a gap of two FTEs for market research with a crisis level gap in the next three months.

Capability Strategy Choices

In this case, The Toy Box has several choices to balance their project needs with required capacity, as follows.

Delay one or both projects
Cancel one or both projects
Hire more (temporary or permanent) market researchers
Re-train other staff to learn market research skills
Advance these projects without market research
Abandon these projects and work on ones that match availability of market research FTEs

Each of these choices is a strategic decision, since the outcomes impact the ability of the organization to execute projects, generate revenues, and satisfy customers. Each choice also has both short-term and long-run cost impacts. Thus, capacity planning is a senior management activity and is a strategic (not operational or tactical) decision.

Your Capability Strategy

Learning and growth are foundations of successful innovation. In your strategy, do you account for training, hiring, and development of human resources? Do you balance talent against project needs in the product portfolio? Do you have a specific and actionable plan to close capability gaps for innovation?

Learn More

If you answered “no” to any of these questions, you need to join our Reset Your Strategy Workshop. You can pre-register here and we’ll send you the full details soon. Contact me at [email protected] or area code (281) phone 787-3979 for more information.

Additional Resources

Innovation and Project Management: It’s NOT about You (PMI Houston Virtual Chapter meeting, Tuesday, 2 June 2020 at 5:30 pm
The Innovation ANSWER Book (available at Amazon and now in Kindle format)
NPDP certification (register for New Product Development Professional self-study here)
20 Tips for Innovation (webinar recording and eBook)
The Innovation PRACTICE Book (coming soon)
Life Design Master Mind Q&A webinar (18 June 2020 at noon CDT, register here at no cost)

About Me

Using PESTLE in a Recovery Strategy

Posted on 05.28.20

Watch the short video (<1 minute) and then read on for all the details!

While our country has never before shuttered the economy, we have also never been faced with such challenges in innovation in business. “Experts” predict V-shaped and U-s0haped recoveries. Personally, the prediction of a “swoosh”-shaped recovery seems more reasonable; and it gives me hope for fan-based sports in its terminology, too.

Regardless of size or scope of your business, the so-called “reopening” allows you a chance to reset your strategy. In an earlier post, we discussed using SWOT (strengths, weaknesses, opportunities, and threats) as a strategic assessment of your internal capabilities. Opportunities and threats are external drivers in the model, yet how do you ascertain competitor actions when the shape of the business landscape has shifted irreversibly?

This is where another strategy planning tool can be of essence in resetting your business and innovation strategies. PESTLE is a technique that forces an organization to examine trends outside their control, narrowing the possible scenarios for future conditions. The acronym PESTLE represents political, economic, social, technological, legal, and environmental situations and trends.

Political

In the US, the corona-panic has illuminated some strong political trends that are likely to continue unabated into the future. First, increased socialism and government control is likely. American citizens have demonstrated they will give up fundamental rights (e.g. the right to assembly and the right to religious freedom) when threatened with an unspecified health fear. It is unwise to trust that all elected and appointed government officials will treat their power with fairness and justice.

Second, policy makers have realized that using the word “science” in any conversation is effective to convince the electorate to succumb any personal responsibility or liberty. Many US citizens have only a limited math or science education (and, unfortunately, we continue to fall behind most other first world nations), so telling someone it is “science” without providing factual data is proof enough for most.

How do these political trends impact your business and innovation strategies? Are you positioned to take advantage of growing government bureaucracies? Will you be nimble enough to navigate a flurry and inconsistent network of illogical rules and regulations again?

Economic

There are not enough words in my vocabulary to describe the economic damage of the corona-panic. As we plan new business and innovation strategies, one key economic trend stands out. Debt. Before the corona-panic, the US economy was already headed toward an unsustainable debt-to-GDP ratio. With massive stimulus bills and shrinking output, the debt-to-GDP ratio is at astronomical levels, never seen before – even in times of war.

With a fiat currency (meaning printed money and not based on bullion value), increased debt means inflation and higher taxes. How can you incorporate these threats into your business and innovation strategies going forward? What does it mean for product pricing strategies?

Social

Social trends are yet to be determined coming out of the corona-panic. There are some people who had readily believe the disastrously wrong models from government agencies and consequently believe any social interaction will result in immediate death. Many of us have looked at the data and will continue to want to live our lives with normal human contact: going to the movies, concerts, and trade shows.

As an individual, I dread the trend away from face-to-face events. It is nearly impossible to meet new people and to connect in a virtual world. The coffee pot conversations, lunch discussions, and happy hour connections at events allow us to interact as human beings were designed to do. No one should be expected to sit in front of a computer screen for hours (or days) on end and expect to build an important relationship.

Yet, as you reset your business and innovation strategies, virtual meetings are, at least, a short-term reality. How can you involve customers in your product innovation work in a virtual world? How will you plan for qualitative feedback when you can’t see your potential customers? What does “moving online” mean for your business?

Technology

With the advent of doing everything virtually and without contact, your business and innovation strategies must incorporate technological changes. We are sure to see a slew of new technical tools (other than zoom, I hope!) to run our business in a digital, nonhuman world. There are also going to be more frequent and more numerous cyberattacks. Are you building IT strength into your business and innovation strategies? Digital transformation trends will continue to dominate physical product development. Are you linking “digital” applications with all hardware development?

Legal

There is no doubt that legal implications will continue to grow as the world emerges from the corona-panic. HR experts will tell you that if your employees are afraid of getting sick at work, you will need to make a legal disability accommodation and let them work from home. How will you monitor project work and schedules when your staff does not meet together?

Further, if one of your team members coughs or sneezes, how do you treat that? If another team member catches a cold, will she sue you? I believe there will be a whole host of new illnesses arising from the overuse of cleaning products. Government “experts” are encouraging nearly continuous use of hand sanitizer, yet I am reminded that it is the only solution I use to effectively remove bicycle grease. Once I spilled a few drops of hand sanitizer on my desk and it removed the varnish. Are you prepared for a trend of chronic diseases from chemical usage in a workplace? What other legal implications threaten your business or the introduction of a new product?

Environmental

As a result of the corona-panic, I believe there are favorable environmental trends to influence our business and innovation strategies. The tremendous hit that oil and gas took during the panic creates opportunities for petrochemical manufacturing. Distribution costs should decline as diesel and jet fuel are less expensive. Peoples’ fears regarding short-term environmental destruction have been replaced with an immediate health and safety fear. While both fears are completely irrational (and not based on existing data but so-called “science”), environmental restrictions will be loosened in many areas so business can get going again. For example, allowing a truck driver to haul two trailers in tandem versus a single trailer might benefit how your products get to market.

Use PESTLE to Design a Recovery Strategy

Every business, large or small, must deeply probe its innovation strategy today. Understanding and studying external opportunities and threats can help you formulate an effective recovery strategy. Use PESTLE to identify trends impacting innovation and business conditions during “reopening”.

What political trends are happening locally or nationally to threaten your business? Will the economic conditions (especially increasing debt, inflation, and taxes) cause a change in your business structure? Which societal trends will allow you to grow and which fears of society might threaten your innovation programs?

Examine technology advances and incorporate enhanced cyber security into your strategies. Be prepared for a slew of legal actions, especially as elections are anticipated and the way we vote in a democracy is changed away from secure and known trends. How will employee behaviors influence your strategies to prepare for health and safety lawsuits? Finally, are there any environmental trends that can open opportunities or provide a benefit to your innovation strategy?

Learn More about Strategy

Strategy lays the groundwork for all innovation work. If you don’t know what your strategy is, you cannot succeed. Contact me at area code 281, phone 787-3979 for a complimentary 30-minute innovation coaching session. We will discuss how you can apply SWOT and PESTLE in your own unique business situation to immediately see results.

Other Resources

Innovation and Project Management: It’s NOT about You (PMI Houston Virtual Chapter meeting, Tuesday, 2 June 2020 at 5:30 pm, register here)
The Innovation ANSWER Book (available at Amazon and now in Kindle format)
NPDP certification (register for New Product Development Professional self-study here)
20 Tips for Innovation (webinar recording and eBook)
The Innovation PRACTICE Book (coming soon)
Life Design Master Mind Q&A webinar (18 June 2020 at noon CDT, register here at no cost)

A Division of Global NP Solutions, LLC

Study. Learn. Earn. Simple.

About Me

The Spirit of Innovation

Posted on 04.09.20

People view the meaning of innovation differently. A colleague of mine says innovation is equivalent to creativity. Another friend thinks innovation means developing a specific and particular consumer good. Others say that innovation is the same as invention.

Innovation is all these things but also something more, and perhaps, something less. Corporate innovation involves a repeatable and systematic approach to developing and deploying technologies to deliver value to the customer and profit to the organization. Customers do not purchase products or services unless they need (or want) them. Companies must only manufacture products and provide services that create profit for them. This is the spirit of innovation.

A Systematic Approach

Inventions are patentable but you might also invent something new and never share it with another person. Great chefs invent new creations in their kitchens every day. Fitness instructors invent new moves and routines. In my hobby, I invent new greeting card designs every time I sit down in my craft room. Yet none of these inventions meet the definition of an innovation because they are one-off, individual creations.

Innovation is a systematic approach to designing and developing sustainable products and services. Products and services fill a need for customers. While the chef’s tasty meal hopefully provides nutrition, it does not mean the next meal will also be tasty and nutritious. My family exclaims delight in receiving my greeting cards but the next one might be smeared and ugly.

NPD Framework (copyright Global NP Solutions)

Systematic approaches to corporate innovation include a set of best practices applied to the organization’s strategic goals. Companies within the same industry have different strategies, and therefore, different approaches to innovation. The chosen innovation framework for new product development (NPD) must also reflect the organization’s culture and philosophy.

Customer-Centric Orientation

Innovation also differs from invention by having a customer-centric orientation. The chef adding ingredients and spices to soup is doing what he thinks will taste good. I create greeting cards that I think are cute. These are self-centered outcomes while innovation focuses on customer intent.

Companies that are most successful with repeated innovation – think Procter and Gamble or Apple – use customer insights to drive technology development. All successful innovators first identify customer needs and wants before designing product, service, or applications. It is impossible to force a set of features onto a customer and to make a profit at the same time. Customers only pay for necessities and what they value.

Engaged Employees

Finally, the spirit of innovation starts and ends with engaged employees. Strategies and systems are great, but somebody has to do the required work. Understanding customer needs is a first step you have to incorporate those requirements into a product to be successful. Doing the short-term and long-term work of innovation is the responsibility of employees and staff.

Productive innovation teams are engaged with the mission of the organization and buy into the project goals. Management gives these teams freedom to operate and to make decisions within a set of guardrails established by the strategy and mission. Individuals and teams are rewarded for their collective work and share in returns from successful product launches. Employees are presented with lifelong opportunities to learn new skills and are recognized for knowledge and accomplishments (regardless of age, degree, or other categorizations).

Creating an Innovative Spirit

How do you foster the spirit of innovation at your firm? First, recognize the difference between innovation and invention. Innovation is a systematic, profit-driven approach to meeting customer needs. It is customer-centric since your end-users only pay for what they need and what they value. Finally, you must provide autonomy to new product development teams to engage and empower employees for innovation.

Companies with a spirit of innovation are easy to recognize. The staff smile a lot and consumers praise their products and services. You cannot fake the spirit of innovation, but you can learn how to do it right! Join me on 30 April 2020 at 1:00 pm CDT (2:00 pm EDT, 11:00 am PDT) for a free webinar on the 20 Tips of Innovation and you will learn how to create a Spirit of Innovation in your organization, too. You can also read the full approach to learning, adopting, transforming, and sustaining innovation in The Innovation ANSWER Book available at Amazon.

About Me

I am inspired by writing, teaching, and coaching. I tackle life with an infusion of rigor, zeal, and faith. It brings me joy to help you build innovation leaders. Teresa Jurgens-Kowal is an experienced professional with a passion for lifelong learning with a PhD in Chemical Engineering and an MBA in Computer and Information Decision Making. My credentials include PE (State of Louisiana), NPDP, PMP®, and CPEM, and I am a DiSC® certified facilitator. Contact me at [email protected] or area code 281 + phone 787-3979 for more information on coaching for entrepreneurs and innovators.

A Division of Global NP Solutions, LLC

Study. Learn. Earn. Simple.

Impacting Innovation

Posted on 03.26.20

Successful innovation requires keeping pace with industry changes and the eve- changing demands of a fractured customer base. Companies that repetitively create, design, and develop profitable new products understand consumer behaviors and enable scientific advances. These firms capitalize on both internal and external systems to generate success in the marketplace.

Three factors impact innovation and can determine repeatable market successes. These are organization, technology, and culture. Let’s take a look at each element in turn.

Organization

At the highest level, an organization’s strategy drives innovation. A firm’s strategy reflects its mission (what is the purpose of the business), its vision (what will the future look like), and its values (what traits make us unique to accomplish our mission). An innovation strategy also informs internal and external customers of senior management’s risk tolerance. An aggressive innovation program indicates higher risk tolerance than an R&D portfolio fixed on incremental improvements and sustaining innovations.

Further, an organization’s strategy will determine systems and structures necessary for a corporation to conduct R&D. Traditionally, firms have followed a Stage-Gate™ approach to new product development (NPD) which allows larger risk (and larger investment) after smaller experimental phases are proven in the product design process. This is a balanced risk approach if the staged and gated system is implemented with cross-functional NPD teams.

Today, many firms are embracing Agile methodologies in which the focus is directed toward people ‑ customers and innovation teams ‑ over products and features. Time-to-market is faster and end-users test prototypes early in the developmental process to reduce waste. Planning documentation and contract negotiations are minimized, while customer interactions are optimized.

Technology

Almost all products today include a technical interface, whether it is a website or a smartphone app. Technology also plays a role in the development process itself. Most firms use some software tools to manage new product portfolios and/or the individual NPD projects. In addition, software tools and apps enhance communication for dispersed teams.

For example, product portfolio management (PPM) is a broad view of all new product development projects, including those being actively worked and those in the pipeline. There are literally dozens of PPM software packages available for organizations to utilize in aiding their decision-making. PPM tools collate individual project data to help senior managers view information and to make strategic innovation decisions. Most PPM tools translate gobs of data into simple charts, displaying value added project information in an easy-to-consume manner.

Culture

Culture is always the most difficult element to describe, and to change, to drive successful innovation. Many senior managers will point to organizational systems and structures or to technology when NPD metrics are not at the expected level. However, it is rare that only a technical or business solution alone can solve an ailing innovation program.

Culture sits at the heart of how things get done in an organization. Regardless of how aggressively an innovation statement is worded, if senior management acts risk-averse, R&D will be limited to incremental improvements and simple feature additions. Culture permeates team behaviors and individual work styles.

Agile work environments stress people interactions over documentation. Talking to customers is valued over contract negotiations with suppliers. Failures are viewed as a learning rather than punishment for falling short of a goal. Innovation teams are trusted to test prototypes with customers and to take responsibility for the whole product development.

Impacting Innovation

Three elements impact innovation more than materials, engineering, or industry. These are the organization, technology, and culture. Factors like systems, structures, and strategies directly influence how innovation teams work internally and externally. Selected decision-making tools can aid or abet speed of innovation by increasing data and information flow or by creating roadblocks between senior management and team members.

Organizations should start with an examination of their overall strategy when seeking to enhance innovation. Strategies reflect the degree to which the firm accepts risks in NPD. PPM tools (technology) will translate individual project data so decision makers can actively assess innovation highest value innovation projects to pursue. Strategies and technologies are often a mirror to the organization’s culture. Culture is unspoken but determines how work gets done, rewards learning, and supports successful integration of NPD in an organization.

Learn More

If your organization is struggling with innovation, especially in these challenging times, please contact me for a complimentary 30-minute innovation coaching session. With over 20 years of experience and innovation clients across all industry groups, I can help you get innovation on track for success! Contact me at area code 281, phone 787-3979 or email to [email protected]

About Me

I am inspired by writing, teaching, and coaching. I tackle life with an infusion of rigor, zeal, and faith. It brings me joy to help you build innovation leaders. Teresa Jurgens-Kowal is an experienced professional with a passion for lifelong learning with a PhD in Chemical Engineering and an MBA in Computer and Information Decision Making. My credentials include PE (State of Louisiana), NPDP, PMP®, and CPEM, and I am a DiSC® certified facilitator. Contact me at [email protected] or area code 281 + phone 280-8717 for more information on coaching for entrepreneurs and innovators.

A Division of Global NP Solutions, LLC

Study. Learn. Earn. Simple.

Winning with Incremental Innovation

Posted on 01.02.20

Innovation always involves risk. Sales revenues might not balance the investment cost. Customers might not like the design or features of the new product. Competitors might not perceive a product advantage.

There are several strategies to address innovation risk. Of course, following a well-established new product development (NPD) process increases the odds of repeatable success within a firm. Likewise, ensuring productive innovation leaders build successful product and service development through effective and efficient decision-making requires training. However, the type of innovation is often overlooked by firms as managers try to balance risk with market share.

Get the quick summary in the video (less than 1 minute) and then learn how you Incremental Innovation Wins!

Sexy Gets the Press

Social media and the press, in general, tend to promote sexy, new ideas. Yet these radical innovations fail more often than incremental innovations. Sexy innovations often do not live up to customer or corporate expectations. The vast majority of new products and services launched by firms include small improvements in features and functionality. Enhancements are more predictable and stable innovations.

Sexy new product ideas grab our attention but rarely live up to the hype. Think about laser discs, the Segway, Google Glass, and the Apple Newton. All of these were great ideas hailed as technology marvels. Yet these inventions were expensive to design and difficult to use for customers creating losses instead of profits for the developers.

Benefits of Incremental Innovations

There are several benefits to incremental innovation innovations. First, you know the market. Second, you know the competition. Third, you know the technology. And finally, you know the product.

The Market

Knowing the market is incredibly valuable for successful innovation. New markets require a lot of investment to educate customers and to explain product advantages. Existing markets are easier and cheaper to test with prototypes and to gauge feature attractiveness for new, incremental product development.

The Competition

incremental innovations are successful because you know the competition. Customers have brand loyalty based on past experiences. Knowing the competition allows a firm to innovate for differentiation as well as to take advantage of inexpensive, incremental new product development. For example, packaging changes make a difference to consumers yet are simple, incremental innovations.

The Technology

R&D and technology development are long-term investments that involve substantial risk. Fundamental research may or may not apply to multiple product lines. And it can take years to work out the bugs of a new chemistry or other technology while simultaneously working on regulatory approvals. Knowing the technology and advancing it just a little allows incremental innovations to cost less than radical product development efforts. Lower cost means higher profit for the business.

The Product

Radical innovations are sexy and newsworthy. Yet, they fail because the product does not solve a consumer’s real problems. Building incremental innovations from existing product lines brings depth and richness to the solution. Creating ancillary services and complementary products enriches the brand and supports the core product. Consider Gatorade™. With a core product and a number of spinoffs designed for various market segments, an aging and established brand has maintained and grown market share in a highly competitive market through incremental innovation.

Winning with Incremental Innovation

While much of social media and the press focus on sexy new ideas, companies that sustain focus on core products can win at innovation. Incremental innovations offer advantages in cost-saving and development time since the firm knows the markets, understands the competition, and can leverage the technology. Moreover, building complementary incremental innovations around a core product family differentiates the brand and strengthens consumer loyalty.

Do You Want to Win at Innovation?

Learn how to apply tools and techniques for innovation success in 20 Days of Innovation in 2020. Register here for free.

About Me

I am inspired by writing, teaching, and coaching. I tackle life with an infusion of rigor, zeal, and faith. It brings me joy to help you build innovation leaders. I am an experienced professional with a passion for lifelong learning with a PhD in Chemical Engineering and an MBA in Computer and Information Decision Making. My credentials include PE (State of Louisiana), NPDP, PMP®, and CPEM, and I am a DiSC® certified facilitator. Contact me at [email protected] or area code 281 + phone 280-8717 for more information on coaching for entrepreneurs and innovators.

A Division of Global NP Solutions, LLC

Study. Learn. Earn. Simple.

Authentic Innovation

Posted on 12.26.19

Some words are overused and are part of fads in the media. Some words are slang, and some are part of our technical jargon. Other words become a part of our day-to-day language but have multiple, deeper meanings.

Innovation is exactly one of those words. There are multiple means to innovation depending on the context. Often, people use innovation to simply mean new and creative. For example, a company’s tagline might say “We are innovative”.

For about ten years, I have helped individuals and companies think big in launching new products and services. During this time, I have generated my own definition of innovation: to transform an idea into a commercial product or service that generates profit for the company. Innovations must bring value to consumers as well as the producer.

Watch the short video summary and read on for details of how you can become more authentic with innovation.

Characteristics of Authentic Innovation

So, the first characteristic of successful innovation is that it must be profitable. Products and services that do not deliver a profit are ones that fail to bring value to either the customer or the firm. If not enough people want to buy a product at a price that exceeds the cost of making it, it is not successful or useful. It might be an intriguing invention, but not an innovation.

In addition to profitability, there are other characteristics that apply to authentic innovation:

Organic,
Personal, and
Incremental.

Organic Innovation

Authentic innovation is organic, meaning it grows from a customer need. A technology, feature, or product function is designed to satisfy a gap in a customer’s service experience. Organic innovations are successful because customer insights drive research and development efforts within the firm.

In contrast, what I will call “forced innovations” start with technologies or products first, and then search for customers and markets. Consider the Segway. the Segway has really interesting technology but no large commercial applications. A much-heralded “innovation” has been relegated to security people at the mall and groups of eager tourists. There simply is not enough market volume to convert the Segway idea into a commercially profitable product.

Innovation is Personal

Nearly every purchase made by a human being has a personal element to it. We buy things and use services to add to our emotional enjoyment of life. Every purchase, and therefore every innovation, is personal.

The Walt Disney Company is well known for its high level of customer service and for innovation. Their success is based on delivering a highly personalized experience for each guest. Before you visit Walt Disney World in Florida, for instance, you are asked to select your favorite color and most beloved character for your “Magic Band”. This Bluetooth enabled wristband then serves as your unique key to your hotel room and gives you access to ride reservations in the theme parks as well as a host of other services, including payments for snacks and souvenirs. The Magic Band is an example of a very successful personal innovation.

Incremental Innovation

Incremental. Successful innovation that is authentic is incremental. I am guessing a lot of my colleagues will scream, “Heresy!” when they see that authentic innovation is incremental. In the field of new product development (NPD), we always train and discuss breakthrough, radical, and disruptive innovation as the ultimate, golden award and to such to seek such innovations unrelentingly. Yet, most companies and most individuals build success through incremental change. Consider the retrospective review completed at the end of each sprint in an Agile project. The team will make one change – only one – in their behaviors for the next sprint. The reason is that too many changes are hard to track and to verify improvement. Multiple changes can be confusing to the team members and customers alike.

Likewise, a vast majority of innovations are incremental. Understanding customer needs and any gap with their current experience drives the most successful development of next generation products and services. It is an incremental innovation to have both a forward-facing and rear-facing camera on your cell phone, but such innovations can be highly profitable.

What is Authentic Innovation?

Authentic innovation brings value to a market and to the producer by transforming ideas to profitable products and services. The characteristics of authentic innovation are organic, personal, and incremental. Successful innovations focus on customer needs before design and development of new technologies or features and don’t necessarily need to be brand new-to-the-world.

Learn How To Win With Incremental Innovation

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About Me

A Division of Global NP Solutions, LLC

Study. Learn. Earn. Simple.