1. From Concept to Cash: Monetizing Your Creative Idea
Leslie Martinich
Competitive Focus
22 March
© 2006 Leslie Martinich

2. Incremental or Breakthrough
Incremental Innovations
Breakthrough Innovations
Disruptive Innovations
Radical Innovations
Discontinuous Innovation
22 March
© 2006 Leslie Martinich

3. Innovation S-Curve Mature product Cash Concept Incremental Innovations
22 March
© 2006 Leslie Martinich

4. Uncertainties Technological Market Organizational Regulatory Resource
How are we going to do this?
Market
Who will buy this?
Lack of standards
Lack of supply chain
Lack of available infrastructure
Organizational
Resistance to change
Change in strategy
Regulatory
What is changing?
Resource
Where will we get the funding for this?
Who will we partner with?
22 March
© 2006 Leslie Martinich

5. Characteristics Takes a long time Has many uncertainties Non-linear
Hype and fear
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© 2006 Leslie Martinich

6. Post-It® Notes Timeline
1980
1981
1978
1977
1974
1979
2006
1968
3M’s Dr Spencer Silver discovers repositionable adhesive
M’s Art Fry needs a lightly adhesive bookmark for his choir hymnal
1977 Fry overcomes manufacturing obstacles to produce enough Post-It® Notes for 3M’s headquarters
Boise Blitz
Successful test market in 11 states
Post-It® Notes introduced nationwide in US
Post-It® Notes introduced in Europe and Canada
2006 More than 600 Post-It® Notes products, adhesive is used on other 3M products as well
22 March
© 2006 Leslie Martinich

7. From “Good Idea” to Gold
22 March
© 2006 Leslie Martinich

8. Build an Innovation Hub
From Radical Innovation, Leifer, et al.
22 March
© 2006 Leslie Martinich

9. Where the Concepts Go Commercialization Idea Gathering Idea Evaluation
Return to Repository
Spin Off
Hand off to Operations
Discard
Commercialization
Idea Gathering
Idea Evaluation
Development
Research
22 March
© 2006 Leslie Martinich

10. Gathering Ideas Competencies Organizational mechanisms
Creative people who see things differently
People who make unusual connections
Ability to operate with uncertainty
Senior management support
Organizational mechanisms
Technical forums
Experimentation time
Immersion in customers’ business
Use “Lead Users”
22 March
© 2006 Leslie Martinich

11. Lead Users Use Lead Users to find breakthroughs
From a variety of industries
Seeing the problem with different sets of eyes
Not the largest market, but one that will benefit most from the technology
22 March
© 2006 Leslie Martinich

12. Gathering Ideas Consider trajectories and their convergence Handheld
Devices
Distance
Learning
Regulatory
Change
22 March
© 2006 Leslie Martinich

13. Gathering Ideas Consider trajectories and their convergence Digital
Video
E-Commerce
22 March
© 2006 Leslie Martinich

14. Entertainment Drives Technology
Martinich Maxim #1
Entertainment Drives Technology
22 March
© 2006 Leslie Martinich

15. Recognizing Opportunities
Competencies
Deep technical knowledge
Judgment
Large informal network
Analytic and synthetic skills
22 March
© 2006 Leslie Martinich

16. Evaluating Opportunities
What are your strengths?
What special skills do you have?
What are the market needs?
Can you succeed in that market?
What is your strategic intent or direction?
22 March
© 2006 Leslie Martinich

17. Evaluating Opportunities
Does this make sense for us?
Does this make sense for some other organization?
Does this idea need further refinement?
Do we have the skill for this?
Will anyone buy it? Who?
22 March
© 2006 Leslie Martinich

18. Evaluating Opportunities
22 March
© 2006 Leslie Martinich

19. Evaluating Opportunities
Competencies
Technological understanding
Strategic vision
Business understanding
Ability to tolerate uncertainty
22 March
© 2006 Leslie Martinich

20. Martinich Maxim #2
“Luck is what happens when preparation meets opportunity.”
– Seneca (Roman philosopher, 1st century AD)
“Opportunity is what happens when a solution meets a compelling market need.”
– Martinich (21st century AD)
22 March
© 2006 Leslie Martinich

21. Deliver the Product This works for incremental improvements,
but not for breakthrough innovations!
22 March
© 2006 Leslie Martinich

22. Delivering the Product
Reduce uncertainties
Technological
Market
Organizational
Resource
Regulatory
Go Back 10 spaces and Pay $1,000,000
22 March
© 2006 Leslie Martinich

23. Delivering the Product
Capabilities
Set expectations
Identify and track uncertainties
Actively seek resources
Manage interface with organization
22 March
© 2006 Leslie Martinich

24. Uncertainty Resolution
Category
Uncertainty
Market
Will anyone buy this?
How can we develop the needed infrastructure?
Can we set the de facto standard?
Can we own this market?
What activities are customers performing?
Organizational
Strategic direction may change
Project requires change and organization resists
Organization's future may include re-organization
Uncertain upper management support
Project may be seen as cannibalizing existing business
Technology
Can we resolve the sub-problems?
Is there a competing technology?
How can we achieve the technological breakthroughs?
Resource
Where will funding come from?
Who can manufacture this?
Project may exhaust funds before completion
22 March
© 2006 Leslie Martinich

25. Uncertainty Resolution
For each uncertainty
List assumptions
Prioritize tasks for testing the assumptions
List resolution approaches
Uncertainty resolution plan
Tracks ongoing areas of uncertainty
Provides a learning tool and history
22 March
© 2006 Leslie Martinich

26. Resolving Market Uncertainty
Envision the value chain
Who will participate?
Auto
maker
Auto
Buyer
22 March
© 2006 Leslie Martinich

27. Regulatory & Licensing
Value Chain
Fueling Stations
Insurance
Regulatory & Licensing
Highways
Repair Services
Distributor
Parts Manufacturer
Suppliers
Auto
maker
Auto
Buyer
22 March
© 2006 Leslie Martinich

28. Value Chain Consider the value chain for a specific innovative idea
Who are the participants?
What infrastructure is needed?
What role does your firm want?
Consider
Music industry, online news, bioengineered products, your own special domain….
22 March
© 2006 Leslie Martinich

29. Resolving Organizational Uncertainty
Underlying conflict
Ambidextrous organization
Possible cannibalization
Resistance to change
22 March
© 2006 Leslie Martinich

30. Resolving Organizational Uncertainty
Communicate across the organization
Include respected individuals
Demonstrate with rough prototypes to understand benefits of technology
22 March
© 2006 Leslie Martinich

31. Resolving Regulatory Uncertainty
Time
Consider the impact of various results
In natural monopolies, regulatory risks are large
22 March
© 2006 Leslie Martinich

32. Markets are made during times of regulatory change
Martinich Maxim #3
Markets are made during times of regulatory change
22 March
© 2006 Leslie Martinich

33. Regulatory Uncertainty
What regulatory changes might affect your creative concepts?
22 March
© 2006 Leslie Martinich

34. Hand off to Operational Unit
When enough uncertainties have been resolved
Market
Technical
Organizational
Regulatory
Resource
22 March
© 2006 Leslie Martinich

35. Questions? Slides available on http://www.competitivefocus.com
22 March
© 2006 Leslie Martinich