Why Your Idea Is Worth Nothing
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The document discusses the importance of aligning ideas with market needs and strategies to ensure successful innovation and growth, emphasizing that many ideas possess little value if not grounded in a financially attractive market. It outlines various customer needs and metrics for assessing market opportunities, stressing that the market ultimately determines the success of an idea. Additionally, it gives statistical insights into the likelihood of ideas meeting market and customer realities, highlighting the challenges in generating valuable ideas for growth.
Why Your Idea Is Worth Nothing
- 1. Why Your Idea Is Worth Nothing ... and how to create growth plans that work. Tony Ulwick September 2011 © Strategyn Consulting, LLC
- 2. Innovation Begins with an Idea
- 4. There Are No Bad Ideas
- 6. IBM Idea Jam: 46,000 Ideas
- 8. Audience Question 1: Do you agree or disagree that this thinking drives the types of innovation practices your company uses today? Agree Disagree
- 9. Endless Supply of Bad Ideas
- 10. It is exceptionally hard to have an idea that will accelerate a company’s growth.
- 12. “PC jr is a flop.” WSJ January 1984
- 13. 17%
- 14. < 2%
- 15. 0%
- 16. Your Idea Is Worth Nothing
- 17. Your Idea Is Worth Nothing Market Needs Strategy
- 18. Isn’t in an attractive market
- 19. Isn’t in an attractive market
- 20. Doesn’t address the right needs
- 21. Doesn’t address the right needs
- 22. Isn’t strategically sound
- 23. Isn’t strategically sound
- 24. Your Idea Is Worth Nothing
- 25. Growth Is Left to Chance Idea
- 26. Growth Is Left to Chance Idea Market
- 27. Growth Is Left to Chance Idea Market Needs
- 28. Growth Is Left to Chance Idea Market Needs Strategy
- 29. Eliminate the Chance Idea
- 30. Eliminate the Chance Market Idea
- 31. Eliminate the Chance Market Needs Idea
- 32. Eliminate the Chance Market Needs Strategy Idea
- 33. Creating Ideas for Growth
- 34. Creating Ideas for Growth Market Needs Strategy
- 35. What is an Attractive Market?
- 37. Market potential is price times products times buyers.
- 38. Traditional Method Market potential is price times products times buyers. Philip Kotler Kellogg, Marketing Management
- 39. The iPod Market
- 41. iPod Growth 220% 180% 140% 100% 60% 20% -20% 0% 06Q1 06Q3 07Q1 07Q3 08Q1 08Q3 09Q1 09Q3 10Q1 10Q3 11Q1 11Q3 Source: Apple Quarterly Reports
- 43. “The market reception for Zune is so disappointing that many retailers have even stopped selling it altogether.” Marketwatch July 29, 2009
- 44. Audience Question 2: What do you think the chances are that any given idea will be in a market that is financially attractive to the company? less than 5% 6% - 10% 11% - 25% 26% - 50% Over 50%
- 45. Traditional Markets 1948 1962 1984 2001
- 47. Products = past
- 48. Customers don’t want iPods any more than they want CDs or 8-track tapes.
- 50. Market Job Executor = +
- 51. Market potential is number of job executors times willingness to pay to get the job done better.
- 52. Get a Job Done Better 1948 1962 1984 2001
- 53. Get a Job Done Better 1948 1962 1984 2001 2005
- 55. 80 million 90,000 per day
- 56. Creating Ideas for Growth
- 57. Creating Ideas for Growth Market Needs Strategy
- 58. What is a Customer Need?
- 59. What is a Customer Need? 95% Don’t have definition MIT Sloan Management Review May 2008
- 60. Voice of the Customer
- 61. Voice of the Customer
- 62. Focus on the Job
- 63. 50 - 150 Customer Metrics
- 64. Quickly Predictably Successfully
- 65. Speed Stability Output
- 66. 150 BC 1670 1940 1985 1999
- 67. 0% Growth 150 BC 1670 1940 1985 1999
- 68. Customers don’t want radios any more than they want megaphones or smoke signals.
- 69. Communicate in a dangerous situation
- 70. Minimize the time it takes to confirm receipt
- 71. Minimize the time it takes to confirm receipt Direction Metric Object of Control
- 72. Minimize the time it takes to confirm receipt of a communication Minimize the likelihood that the communication is interrupted Minimize the likelihood of interference when communicating Increase the likelihood that the communication is discreet Minimize the likelihood that a message is misunderstood Minimize the time it takes to establish a record of the communication Minimize the likelihood that the communication is intercepted
- 73. Market Opportunities 10.0 7.5 Satisfaction 5.0 2.5 0 0 2.5 5.0 7.5 10.0 Importance
- 74. Market Opportunities 10.0 7.5 Satisfaction 5.0 2.5 0 0 2.5 5.0 7.5 10.0 Importance
- 75. IMP SAT OPP 7.3 3.2 11.4 Minimize the time it takes to confirm receipt
- 76. From 0% to 18% Growth “ODI was used to create two of our bestselling Bob Pennisi radios to date.” Advanced Technology Center Dr. Pennisi is currently a senior Strategyn professional
- 78. Audience Question 3: What do you think the chances are that any given idea will better satisfy a significant number of the right 50 to 150 needs in a market? less than 5% 6% - 10% 11% - 25% 26% - 50% Over 50%
- 79. Creating Ideas for Growth
- 80. Creating Ideas for Growth Market Needs Strategy
- 81. Product Strategy
- 82. Low Cost Breakthrough Disruption or Radical Product Sustaining Improvement
- 83. 20% 10% 50% 20%
- 84. 10% 50% 30% 10%
- 85. Audience Question 4: What do you think the chances are that any given idea will have correctly chosen the right product strategy? less than 5% 6% - 10% 11% - 25% 26% - 50% Over 50%
- 86. The Market Decides, Not You Low Cost Breakthrough Product Sustaining Disruption or Radical Improvement
- 87. Opportunities Dictate Strategy 10.0 7.5 Satisfaction 5.0 2.5 0 0 2.5 5.0 7.5 10.0 Importance
- 88. Opportunities Dictate Strategy 10.0 7.5 Satisfaction 5.0 2.5 0 0 2.5 5.0 7.5 10.0 Importance
- 89. Opportunities Dictate Strategy 10.0 7.5 Satisfaction 5.0 2.5 0 0 2.5 5.0 7.5 10.0 Importance
- 90. 10.0 7.5 Satisfaction 5.0 2.5 0 0 2.5 5.0 7.5 10.0 Importance
- 91. Product Improvement 10.0 Existing Platform 7.5 Satisfaction 5.0 2.5 0 0 2.5 5.0 7.5 10.0 Importance
- 92. Product Improvement 10.0 Existing Platform 7.5 Satisfaction 5.0 2.5 0 0 2.5 5.0 7.5 10.0 Importance
- 93. 10.0 7.5 Satisfaction 5.0 2.5 0 0 2.5 5.0 7.5 10.0 Importance
- 94. Breakthrough - Radical 10.0 New Platform 7.5 Satisfaction 5.0 2.5 0 0 2.5 5.0 7.5 10.0 Importance
- 95. Breakthrough - Radical 10.0 New Platform 7.5 Satisfaction 5.0 2.5 0 0 2.5 5.0 7.5 10.0 Importance
- 96. 10.0 7.5 Satisfaction 5.0 2.5 0 0 2.5 5.0 7.5 10.0 Importance
- 97. Sustaining 10.0 Existing Platform 7.5 Satisfaction 5.0 2.5 0 0 2.5 5.0 7.5 10.0 Importance
- 98. Sustaining 10.0 Existing Platform 7.5 Satisfaction 5.0 2.5 0 0 2.5 5.0 7.5 10.0 Importance
- 99. Low Cost Disruption 10.0 7.5 Satisfaction 5.0 2.5 0 0 2.5 5.0 7.5 10.0 Importance
- 100. Low Cost Disruption 10.0 New Platform 7.5 Satisfaction 5.0 2.5 0 0 2.5 5.0 7.5 10.0 Importance
- 101. Low Cost Disruption 10.0 New Platform 7.5 Satisfaction 5.0 2.5 0 0 2.5 5.0 7.5 10.0 Importance
- 102. + Inability of Current Platform to Address Needs Low Cost Breakthrough Disruption or Radical Product Sustaining Improvement - - + Dissatisfaction Getting the Job(s) Done
- 103. Eliminate the Chance Market Needs Strategy
- 104. Eliminate the Chance Market Needs Strategy Idea
- 105. Idea Types
- 106. Idea Types Platform Biz Model Features Go To Market
- 107. Sequence 1 2 3 4 Platform Biz Model Features Go To Market
- 108. Criteria to Judge = Metrics Metrics, Cost, Risk
- 109. Experts Domain Technical
- 110. Triggers
- 111. Triggers 26 41 14 Platform Biz Model Features
- 112. Idea Generation Type Experts Criteria Triggers Minimize the time it takes to confirm receipt
- 113. Growth Is Left to Chance Idea Market Needs Strategy
- 114. Growth Is Left to Chance Idea Market Needs Strategy 25% x 5% x 25% = .003%
- 116. Predictable Growth $500M 95%
- 117. Predictable Growth $500M 95% 95%
- 118. Predictable Growth $500M 95% 95% Idea
- 119. 86% Success 5x Better Source: Strategyn Track Record Study. Sample size: 22 launches. 19 declared a successes by the companies based on revenue, customer satisfaction, or industry awards. Study available upon request.
- 120. Companies 43 Products 49 Pipeline 28 Launched 21 Success 18 Rate 86% Source: Strategyn Track Record Study. Sample size: 21 launches. 18 declared a successes by the companies based on revenue, customer satisfaction, or industry awards. Study available upon request.
- 121. Contact Strategyn: T: (866) 729-8400 E: info@strategyn.com www.strategyn.com Follow us on twitter: @strategyn