Glenn Wintrich, Innovation Leader at Dell, presented this seminar entitled Innovation Overview on 30th January 2014 at the Whitaker Institute, NUI Galway.

1. Innovation Overview
Glenn Wintrich

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© 2012 Forrester Research, Inc. Reproduction Prohibited
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Innovation is not for the faint of heart

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4. Speed of change accelerating

5. 5 Services
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IT’s transformation essential to 21st century business success
The purpose of the
20th century firm:
The purpose of the
21st century firm:
To minimize
transaction costs
and achieve scalable
efficiency
To accelerate
capability
building and
effectively
apply that
capability to
innovation
Creating
new
value —
better &
faster
New view:
Socially-
enabled
enterprise
operating in a
digital
business
ecosystem
IT is essential to
enabling firms to
transform and
innovate with
information-
driven value
creation

6. ProcessesBusiness
Models
Management
Products and
Services
Marketing
Innovation defined
Innovation is the process that takes new ideas and implements
them in a way that creates value by solving unmet needs.

7. Would this qualify as innovative???
No turtle was hurt creating this picture

8. Common myths of Innovation
While creative thinking is helpful,
innovation is a systematic
discipline
You have to be creative to
be innovative
Successful innovations require
large-scale change
Innovation is expensive
The most successful innovations
are often the simplest
Most innovations require a
modest disciplined investment of
time and brain power
Innovation is led by R&D
& Technology
Innovation is an organization-wide
responsibility to leverage ideas
Myth Reality

9. Services Sales Training
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Marketing innovation
Examples
Marketing innovation refers to tools and
approaches that organizations use to cultivate
relationships with customers and prospects.
Internet video
Gamification
Location based marketing
Social network
marketing
Personalization

10. Services Sales Training
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Process innovation
Examples
Process innovation refers to new methods to
achieve superior outcomes.
Electronic Medical Record
Streaming VideoRobotic assembly line
Financial banking

11. Services Sales Training
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Management innovation
Examples
Management innovation refers to the way
organizations engage resources to enhance
performance and achieve superior outcomes.
Resource models
Reward structures
Organizational models
Organizational Models
Collaboration/
Autonomy

12. Services Sales Training
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Focus areas for Management Innovation
New view of the enterprise:
Socially-enabled enterprise operating in a digital
business ecosystem
• Increase collaboration
• Allow for autonomy and innovation
• Experiment with new approaches and resource
models:
o Crowdsourcing
o Hackathons
o Microwork
o Hollywood Model
o Self-Selecting Teams
o Expert Ecosystems
Management

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Product and Service innovation
Examples
Product and Service innovation refers to the
introduction of new and enhanced goods and
services.
Digital Oil Field
Sensors
Car break system
(Carbon fiber)
3-D printing (Polymers)
Apple iTunes
Workstation on
Wheels (WOW)

14. Services Sales Training
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Long Tail
Business Model innovation
Business Model innovation refers to the
approach to how an organization creates,
delivers, and captures value.
Sample business models
Franchise Direct Sales
Freemium
Add-on
Auction Low cost
Recurring
RevenueSubscription

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Services
Business Model Analysis

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Business Model Innovation components
Components
• Partnerships
• Channels
• Cost Structure
• Key Resources
• Core Capabilities
Components
• Bundling and Configuration
• Segmentation
• Customer Relationships
• Revenue Streams: Pricing and Payment
Structures
• Value Proposition

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Services
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A dynamic shift IT Environment
IT Productivity
• Consolidation
• Cost
• Outsourcing
• ERP
Prior to 2012 Post 2012

18. Degrees of Innovation
BusinessModelsandProcesses
Products and Services
New
Existing
ExistingNew
New
Value
Breakthrough
and Disruptive
Innovation
Incremental
Innovation

19. Why is Innovation important?
Incremental Breakthrough & Disruptive
1. Keep products &
services in the
competitive set
2. Reduce Cycle
Time
3. Improve Quality
4. Reduce Cost
1. New revenue stream
2. First mover advantages
3. Obtain higher margins
4. Increase brand value
5. Realize an innovation
premium on the stock
6. Improve corporate culture

20. Innovate or lose competitive position

21. Innovate or lose competitive position
http://www.youtube.com/watch?v=6Cf7I
L_eZ38&feature=player_embedded

22. Dell Services
The Volvo (Whitbread) Round-the-World Race:
What Determines the Winner?
the Tactician ?
the Grinders?
the Skipper?
the Navigator?

23. Dell Services
Answer: None of the Above.
It’s the DESIGN OF THE BOAT that matters.
The analogy to the corporate world is that designing
an Innovation Culture that allows success to happen is
imperative to your Company’s success.
Credit: Peter Senge, The Fifth Discipline

24. Architecture for Systemic Innovation
Insight
Market Innovation Customer Innovation
Scan R&D, IP & Patents,
Regulations & Standards
Identify Constraints
& Opportunities
Environmental Scanning
Weak Signals & Trends
Foresight
Develop Themes
& Scenarios
Plan of Record
Plan of Intent
Plan of Investigation
Strategic
Plans
Frameworks
Reference
Architectures
Operational
& Annual
Plans
Execute Business
Challenges
Facilitate Shared &
Open Innovation
Deliver Innovation Plans
Outcomes
and Metrics
Invest Execute

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Architecture for Systemic Innovation
Insight
Market Innovation Customer Innovation
Scan R&D, IP & Patents,
Regulations & Standards
Identify Constraints
& Opportunities
Environmental Scanning
Weak Signals & Trends
Foresight
Develop Themes
& Scenarios
Plan of Record
Plan of Intent
Plan of Investigation
Strategic
Plans
Frameworks
Reference
Architectures
Operational
& Annual
Plans
Execute Business
Challenges
Facilitate Shared &
Open Innovation
Deliver Innovation Plans
Outcomes
and Metrics
Invest Execute

26. 26 Confidential Services
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The objective of foresight is to
identify future opportunities,
challenges, and potential solutions.
Approaches & Tools
Basics
• Environmental Scanning
• Extrapolation
• Scenarios
• Regulatory Reviews
• SWOT
• Surveys
• Expert Panels
• Patent Analysis
Advanced
• Futures Wheels
• Futures Cone
• Black Swan Analysis
• Delphi
• Backcasting
• Paleofuture Analysis
• Science Fiction
Foresight
Foresight is knowledge of
emerging indicators or macro
trends across the social,
technological, environmental,
economic, and political
landscape.

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STEEP/PESTLE
• Societal
• Technological
• Economic
• Environmental
• Political/Legal
S
T
E
E
P

28. 28 Services Sales Training
Architecture for Systemic Innovation
Insight
Market Innovation Customer Innovation
Scan R&D, IP & Patents,
Regulations & Standards
Identify Constraints
& Opportunities
Environmental Scanning
Weak Signals & Trends
Foresight
Develop Themes
& Scenarios
Plan of Record
Plan of Intent
Plan of Investigation
Strategic
Plans
Frameworks
Reference
Architectures
Operational
& Annual
Plans
Execute Business
Challenges
Facilitate Shared &
Open Innovation
Deliver Innovation Plans
Outcomes
and Metrics
Invest Execute

29. 29 Services Sales Training
Insight
Popular resources & tools
• Social Media
• Market Data
• Analysts
• Standards Bodies
• Industry Publications
• Laws, Regulations, (established &
pending)
• Customer Surveys
• Focus Groups
• Patent Analysis
Insight is the observation of facts,
knowledge, predictable trends,
and points of view that may apply
to particular issues, opportunities,
and challenges.
.
The objective of insight is to
identify constraints and
opportunities.

30. Macro trends indicate sustained shifts
that influence future decisions in
business, government and society.

31. Sample Macro Trends
Perfect Information
Consumerization
Smart Everything Crowdfunding &
P2P Lending
An old workforce
A new workforce
Urbanization
Freelance economy
& Hollywood Model
Sharing Economy
Utility computing Pervasive
simplification
Technology does
not cause change, it
only enables,
facilitates and
accelerates changes
we already want to
take place.

32. Architecture for Systemic Innovation
Insight
Market Innovation Customer Innovation
Scan R&D, IP & Patents,
Regulations & Standards
Identify Constraints
& Opportunities
Environmental Scanning
Weak Signals & Trends
Foresight
Develop Themes
& Scenarios
Plan of Record
Plan of Intent
Plan of Investigation
Strategic
Plans
Frameworks
Reference
Architectures
Operational
& Annual
Plans
Execute Business
Challenges
Facilitate Shared &
Open Innovation
Deliver Innovation Plans
Outcomes
and Metrics
Invest Execute

33. 33 Services
Foresight and Disruptive Innovation
Disruption Zone: Incumbents
myopically focus on sustaining
innovation while new entrants
disrupt the model through
innovation.
t
%, $
t
Value of Foresight:
Disruptive innovators
see ways to improve a
job that is performed
and mobilize resources
to achieve new results.
Disruptive
Innovation
Sustaining
Innovation

34. Market Innovation: Product Cycle
Cycle
Market
View
Product
Plan
Signal
Sources
3
Unclear:
Surprises
What is Possible?
FORESIGHT including macro
trends and all areas of STEEP
2
Generally
Expected
What is planned
to be developed.
INSIGHT: Competitors, Analysts,
Customers, Standards bodies &
Regulatory bodies
1 Planned
What is funded
and will be
launched.
Customers
Market
Innovation
Plan of Record
Plan of Intent
Plan of Investigation

35. Services Sales Training
Metrics

36. Organizational level innovation metrics
3rd order
External Corporate
Perception
Highest level of innovation indicators and long-term achievement
• Customer perception assessments
• Inclusion, rank, and direction of change in industry rankings
• Relative position in Gartner Magic Quadrants (MQ)
• Placement in Forrester Waves
• Most “innovative” company rankings
2nd Order
Internal Corporate
Operational or functional level of innovation
• Measurement of innovation activities and financial performance
• Includes both Input and Output metrics
1st Order
Business Unit
Lorem ipsum dolor sit amet, consectetur adipiscing elit.
Tactical metrics and KPIs for BU activities and programs
• Measurements of foundational catalysts for each BU that drive
towards higher functioning level of innovation.

37. Services Sales Training
Innovation metrics
Inputs Idea Management Outputs
# of ideas submitted
Cycle time metrics for initial
review, incubation,
development, pilot, etc.
# of new products or
services launched
Amount of capital in
# of ideas funded for
incubation
Actual vs. targeted breakeven
time (BET)
% of people trained in
innovation
# of ideas piloted
% of revenue/profit from
products or services
introduced in the past X
years
# of crowdsourcing
challenges
# of ideas funded for
commercialization
Royalty and licensing income
from patents/intellectual
property
#of leaders engaged in
innovation
% of product/service or
strategic innovation projects
with assigned executive
sponsors
Number of innovations that
significantly advance existing
businesses

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Final Thoughts
• Revenue growth belongs to the innovators
• Collaboration is king – victories are in the
white spaces between groups
• The “Red Queen Scenario”
• And one more thing………..

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We must Innovate or Die!!

40. Q&A
Open the
floodgates
for
questions

41. Thank you

42. Innovate or lose competitive position
http://www.youtube.com/watch?v=6Cf7I
L_eZ38&feature=player_embedded