Innovation Workout Create an Innovation that meets predefined specifications Use Assumption Reversals to provide Insight

Cycle Corporation Capabilities Owns a chain of 50 bicycle shops Owns a chain of 50 bicycle shops Has a good reputation for: Has a good reputation for: Large selectionLarge selection ServiceService AccessoriesAccessories It is a chain of specialty stores serving each stores local community It is a chain of specialty stores serving each stores local community It is not a low cost seller It is not a low cost seller

Corporation X Capabilities Key financial statistics: Key financial statistics: Trends have started to worry management Trends have started to worry management Sales ($mil) Volume (000) Operating Profit (%) Sales / Sq meter ($) % % %1500

Corporation X Capabilities Sales have been declining for 3 reasons: Sales have been declining for 3 reasons: Customers’ need for a bike is often satisfied with one purchaseCustomers’ need for a bike is often satisfied with one purchase Aging of the company’s customer base means that many no longer ride a bicycleAging of the company’s customer base means that many no longer ride a bicycle Urban sprawl has made using a bicycle for quick trips to work, store, or post office difficult, because the distances are too greatUrban sprawl has made using a bicycle for quick trips to work, store, or post office difficult, because the distances are too great

ToDo Assumption Reversal exercise: Assumption Reversal exercise: 1.State the major challenges involved in marketing this product or service to your customer base 2.List your assumptions 3.Challenge your fundamental assumptions 4.Reverse each assumption. Write down the opposite of each one 5.Record differing viewpoints that might prove useful to you 6.Find a way to accomplish each reversal 7.Let each way in 6 become a new product-service for the company

Assumption reversals Reversing your assumptions gives you a new tool that enables you to: Reversing your assumptions gives you a new tool that enables you to: Escape from looking at a challenge in the traditional way.Escape from looking at a challenge in the traditional way. Free up information so that it can come together in new ways.Free up information so that it can come together in new ways. Think provocatively. You can take a novel position and then work out its implications.Think provocatively. You can take a novel position and then work out its implications. Look for a breakthrough.Look for a breakthrough.

Presentation Detail on your paper to be handed in Detail on your paper to be handed in The three best product-service innovations that you have created The three best product-service innovations that you have created How they lookHow they look What customer market would buy, and whyWhat customer market would buy, and why How this expands their market and reverses their downward slide in salesHow this expands their market and reverses their downward slide in sales How this makes them more profitableHow this makes them more profitable