BREAKOUT SESSION 2 Innovation, The Business Imperative Ellen Raynor - PowerPoint PPT Presentation

BREAKOUT SESSION 2 Innovation, The Business Imperative Ellen Raynor Sponsored by:

Innovation: A Business Im perative Ellen Raynor Director, Talent Management McKesson Medical-Surgical ellen.raynor@mckesson.com (804) 264-3126

Our focus in this session is to:  Define innovation and why it is so important  Describe key insights from a Harvard thought leader  Identify cultural barriers and enhancers  Explore several practical ideas to encourage innovation Definitions Cultural Practical An expert’s and Barriers and Ideas and insights Importance Enhancers Best Practices 3 8/3/2018 McKesson Proprietary and Confidential

Our focus in this session is to:  Define innovation and why it is so important  Describe key insights from a Harvard thought leader  Identify cultural barriers and enhancers  Explore several practical ideas to encourage innovation Definitions Cultural Practical An expert’s and Barriers and Ideas and insights Importance Enhancers Best Practices 4 8/3/2018 McKesson Proprietary and Confidential

Many definitions focus on value creation Yale University American Society IT Services for Quality The process of implementing Successful conversion of new concepts and new ideas to create knowledge into new products, services or processes that deliver new customer value value for an organization in the marketplace businessdictionary.com The process of translating an idea or invention into a good or service that creates value, or for which customers will pay 5 8/3/2018 McKesson Proprietary and Confidential

Another definition via Google This is how some differentiate innovation from improvement 6 8/3/2018 McKesson Proprietary and Confidential

How does innovation differ from creativity? Creat eativit ity Divergent Thinking Convergent Thinking Innovation 7 8/3/2018 McKesson Proprietary and Confidential

Business Im portance  Innovation is prevalent in business literature Creat eativit ity  Countless books, articles, white papers, consulting firms and blogs provide a variety of views 8 8/3/2018 McKesson Proprietary and Confidential

Innovation is viewed as a growth driver Creat eativit ity Innovation Growth 9 8/3/2018 McKesson Proprietary and Confidential

Innovation as a growth driver Start-Up Rapid Growth Maturity Decline Rebirth Creat eativit ity Death Life Cycle of a Business 10 8/3/2018 McKesson Proprietary and Confidential

Innovation as a growth driver Start-Up Rapid Growth Maturity Decline Rebirth Creat eativit ity Death Life Cycle of a Business 11 8/3/2018 McKesson Proprietary and Confidential

Are your com petitors standing still? Creat eativit ity 12 8/3/2018 McKesson Proprietary and Confidential

A story about Gillette razors  Procter & Gamble, which owns Gillette, enjoyed a 70% market share in 2010  By early 2018, it had dropped to only 50% Creat eativit ity What happened? 13 8/3/2018 McKesson Proprietary and Confidential

A story about Gillette razors  Procter & Gamble, which owns Gillette, enjoyed a 70% market share in 2010  By early 2018, it had dropped to only 50% Creat eativit ity What happened? 14 8/3/2018 McKesson Proprietary and Confidential

The bottom line  Creates value for customers  Is a key strategy for driving growth  Spurs new growth in mature companies  Builds competitive advantage  Can disrupt the marketplace  Is the “secret sauce” to business success 15 8/3/2018 McKesson Proprietary and Confidential

Our focus in this session is to:  Define innovation and why is it so important  Describe key insights from a Harvard thought leader  Identify cultural barriers and enhancers  Explore several practical ideas to encourage innovation Definitions Cultural Practical An expert’s and Barriers and Ideas and insights Importance Enhancers Best Practices 16 8/3/2018 McKesson Proprietary and Confidential

Thought leadership in two key areas  Jobs to Be Done  The Innovator’s DNA 17 8/3/2018 McKesson Proprietary and Confidential

Articles: Spring 20 0 7 and Septem ber 20 16 18 8/3/2018 McKesson Proprietary and Confidential

What are “jobs to be done?”  What your customer hopes to accomplish in a given circumstance  When we buy a product or service, we “hire” it to do a job 19 8/3/2018 McKesson Proprietary and Confidential

What are “jobs to be done?”  What your customer hopes to accomplish in a given circumstance  When we buy a product or service, we “hire” it to do a job Example: Condominium Developers  Builders targeted empty nesters; So why the condo units were priced right weren’t they selling? 20 8/3/2018 McKesson Proprietary and Confidential

What are “jobs to be done?”  What your customer hopes to accomplish in a given circumstance  When we buy a product or service, we “hire” it to do a job Example: Condominium Developers  Builders targeted empty nesters; the condo units were priced right  Customers didn’t need a large dining room, but…  They did need to figure out what to do with their dining room tables 21 8/3/2018 McKesson Proprietary and Confidential

The developer’s solution  Made the unit’s guest bedroom slightly smaller, to allow for a normal-sized dining room table  Provided two years of storage and a sorting room within the development where new owners could take their time making decisions about what to keep and what to discard 22 8/3/2018 McKesson Proprietary and Confidential

Outcom e Once the builder understood the “job do be done” by the condo for empty nesters and he made these changes, sales increased rapidly  The “job to be done” was not enabling the purchase of a condo…  Instead, it was helping empty nesters to move on with their lives They were not just competing against other condo units; they were competing against the option of NOT MOVING AT ALL 23 8/3/2018 McKesson Proprietary and Confidential

How “Jobs to be done” leads to innovation Jobs To Be Done Old Solution New Solution Ingest medicine Pills and shots Skin patches Make many products for mass market Many crafts persons Production line Execute rote legal functions Lawyers legalzoom.com Detect enemy at night Flares Night vision Keep windows clean Clean with squeegee Self-cleaning glass Clean teeth Manual brushing Automated with sound waves Search for information Library Internet Understanding your customer’s job to be done 24 8/3/2018 McKesson Proprietary and Confidential

Self-assessm ent questions  Given: Innovation can be more predictable and profitable if you start by identifying the jobs that customers are struggling to get done. Without this lens, you’re doomed to hit-or-miss innovation. How does your organization currently identify what “jobs to be done” your customers really need? How confident are you that your products and/or service offerings truly match the customer’s “jobs to be done?” How well do your overall innovation efforts align with jobs to be done? Or are you throwing spaghetti against the wall? 25 8/3/2018 McKesson Proprietary and Confidential

An innovation process m odel Find struggling moments Curiosity Hear what Design for customers Empathy progress don’t say Results Frame the jobs to be done Source: FranklinCovey “Find Out WHY” 26 8/3/2018 McKesson Proprietary and Confidential

An innovation thought leader  Jobs to Be Done  The Innovator’s DNA 27 8/3/2018 McKesson Proprietary and Confidential

Decem ber 20 0 9 article in HBR  A 6-year study to uncover the origins of creative business strategies in innovative companies  Goal: To put entrepreneurs under the microscope to understand when and how they came up with the ideas on which their businesses are built  Also: To understand how they are different from other executives and entrepreneurs 28 8/3/2018 McKesson Proprietary and Confidential

The Innovator’s DNA: Five Discovery Skills Challenging the status quo Taking risks Courage to Innovate 29 8/3/2018 McKesson Proprietary and Confidential

The Innovator’s DNA: Five Discovery Skills  Asking why not? What if…? Questioning If w e cut the size or w eight of the w idget in half, how w ould that Challenging the change the value proposition it Observing status quo offers?  Imagining opposites Networking  Playing devil’s advocate  Embracing constraints Experimenting Taking risks If w e w ere legally prohibited from selling to our current custom ers, how Courage Behavioral w ould w e m ake m oney next year? to Innovate Skills 30 8/3/2018 McKesson Proprietary and Confidential

The Innovator’s DNA: Five Discovery Skills  Scrutinizing the behavior of Questioning potential customers  Carefully, intentionally and Challenging the Observing status quo consistently looking out for small details to gain insights about new ways of doing things Networking  Example: Intuit founder Scott Experimenting Cook observing his wife’s Taking risks frustration trying to manage their finances Courage Behavioral to Innovate Skills 31 8/3/2018 McKesson Proprietary and Confidential