“achieving ambitious business growth” Graeme Crombie & Jamie McCallum | Matrix Innovation Team

What strategic approaches are most successful?

Define successful?

What strategic approaches are most successful? Turnover GrowthProfitability

Turnover Growth Q: What grows the top line fastest? A1: Increasing loyalty from existing customers. A2: Getting new customers.

Average GROWTH RATE Number of NEW CUSTOMERS over the past 3 years

“number of customers was found to be 2.8 times more important than amount bought per customer.”

Your existing customers can only…. EAT | DRINK | SPEND so much! Share of stomach. Share of throat. Share of pocket.

You need more…… Stomachs.Throats.Pockets.

Turnover Growth Growth Rate (%) vs No. New/Improved Products/Services in 3 year period

Profitability Q: What’s the highest margin strategy? A3: Low cost. A2: Quick turnaround. A5: Listen / Create around customer demand. A1: High quality. A4: Create regardless of market demand.

“If I had asked my customers what they wanted, they’d have said faster horses.” Henry Ford

A4: Create new regardless of market demand. “If you’re not unique you’d better be cheap.” Doug Hall Monopoly Commodity

Average % Profit Margin vs Core Business Strategy Georgia Tech n=738

Be honest about your growth aspirations…… Time £ / € (now)5 Years Want to get to here? Normal Incremental Growth Continues. Sales stay the same. PastFuture New and Different Same Old Stuff

A4: Create new regardless of market demand. “Insanity: Doing the same thing over and over again and expecting different results.” Albert Einstein

NEW MARKETS EXISTING MARKETS EXISTING PRODUCTS NEW PRODUCTS market development market penetration unrelated diversification product development Risky Limited INNOVATION

Problem……… So if innovation is the key to achieving the growth that companies desire. And it’s at the top of the agenda of your governments and support agencies…. what’s holding us back????

TIME | MONEY | RISK INNOVATION =

Purchase Intent: Meaningfulness New & Different: Uniqueness

TIME | MONEY | RISK = FEAR

FEAR = NO CULTURE OF INNOVATION

Human error is high.

Humans <10% success at picking winning ideas.

Even fruit machines pay out 32% of the time!

ANSWER A Reliable & Repeatable Strategy of Innovation Needs a System.

GOOD NEWS! Through the InterTradeIreland Challenge Programme you will learn a highly effective system.

Responsible for £1.5Bn in new products & services globally.

effectiveness endorsed by…

based solely on research into… The factors which make products/services succeed or fail. The factors that make business development teams effective.

by reverse engineering…. Over 4,000 real products and services. Over 6,000 business development teams.

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Consumer / Market Research Concept Development R&D and Product/Supply Development Sales Forecasting Evaluation Rework - Redo - Restart Usual Company Systems Approach

Typical marketplace success of 5-15%. Designed to deal with cost & risk. Reduces risk by holding ideas back from the market. Ignores the biggest risk of missing the opportunity. Usual Company Systems Approach

Product Development Business Model Development Marketing Development The Simultaneous Engineering Approach Rapid Cycles of Test & Learn

Typical marketplace success of over 45%. Created by reverse engineering the success/failure of over 4,000 product and service ideas and over 6,000 innovation teams. Products accelerate to market in a fraction of the time. Utilises “Fail Fast. Fail Cheap.” methodology to kill costly losers dead ASAP. The Simultaneous Engineering Approach

Launch Ideas Evaluate Ideas Create Ideas the three stages of the system… A system for creating as many ideas as possible. A system for picking ideas with the highest probability of success. A system for getting ideas to market with the minimum of time, money and risk.

High Probability Ideas (£/€) Medium Probability Ideas (£/€) Low Probability Ideas (£/€) Pipeline Management of Innovation = Correct Understanding of Value Max Chance of Hitting Growth Targets From Innovation

Challenge Programme Overview Graeme Crombie & Jamie McCallum | Matrix Innovation Team

What you get…….

2 Full Day Workshops Covering: Business Strategy & Planning Innovation System Training Plus An innovation culture assessment on your whole company benchmarking you against world class in a number of key innovation areas. A max of 30 Selected Companies will get:

In-company intensive mentoring to output: new ideas generated. At least one real new product/service being commercialised. Start implementation of the system to create ideas, pick high probability winners and rapidly commercialise them with the minimum of time, money & risk. A final 10 Selected Companies will get:

What’s expected of you…..

Availability / attendance of workshops on: Commitment of your team with management support to 6 over a period of 6 months. Completion of a business plan for application to the final stage. You must be committed to: 11 th & 18 th of October12 th & 19 th of October

Application Time / Networking Slides available from Thursday at: