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

Cycle Corporation (CyCo) 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 Help CyCo Help CyCo Sell multiple bikes per customerSell multiple bikes per customer Sell to the agedSell to the aged Sell bikes to commutersSell bikes to commuters How can you do this? How can you do this? InnovateInnovate Create some new products-servicesCreate some new products-services Define a business model to commercialize themDefine a business model to commercialize them

Use Practicum techniques to help you Create False Faces (perceptual reversals) False Faces (perceptual reversals) Slice and Dice Slice and Dice Think Bubbles (Quizzing to understand the customers’ experiential context Think Bubbles (Quizzing to understand the customers’ experiential context The Idea Box (Dr. Fritz Zwicky’s morphological box) The Idea Box (Dr. Fritz Zwicky’s morphological box) Cherry Split (fractionation) Cherry Split (fractionation)

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

What to do with your Product-Services What additional competences will you need to develop for your product-service? What challenges may you expect from competitors? How will you measure success? (Metrics)