The innovation process

The innovation process: insight, problem, solution, prototype, and

business model

Lab session

Jose Orlando Montes de la Barrera

Innovation Center
Business School
[email protected]
 Goals

Explore via a practical exercise some elements of the innovation

process

Implement some steps of the innovator’s method through a real life

problem/need

Identify via a practical experience some complexities related to

the innovation process

Understand a problem and propose an innovative solution

Put in practice some concepts presented during the class:

dimensions of innovation, types of innovation, innovation process

Discuss some elements related to innovation culture that influence

the innovation process
 Associated intended learning outcomes and course themes

Intended learning outcomes Fundamental themes

1. Discuss the difference between the classical and 1. Fundamentals of innovation and the
modern approach to innovation and novelty innovation process

2. Recognize the role of innovation as a system of value ILO and

generation in the organizations and firms and critically 2. Culture of innovation
assess structures and models of innovation themes

3. Define a robust and argued solution(s) to organizational

3. Innovation management, strategy and
problems related to the design, implementation,
business models
production, commercialization and diffusion of innovations
 Related theory
A process of innovation from start to finish

How to generate, test, validate and market new ideas?

INSIGHT PROBLEM SOLUTION BUSINESS Scale it

MODEL

MAIN Savor the

ACTIVITIES surprises

Innovations always start with an idea of a possible need, solution

or business model.
Assess potential customer needs or symptoms of a problem.

Furr, N. & Dyer, J. (2014). The Innovator´s Method: Bringing the Lean Start-Up Into Your Organization. Boston: Harvar Business Review Press.
 Related theory
A process of innovation from start to finish

How to generate, test, validate and market new ideas?

INSIGHT PROBLEM SOLUTION BUSINESS Scale it

MODEL

MAIN Savor the Discover

ACTIVITIES surprises the work
to be done

It is a common mistake to pretend to jump into solutions without

first understanding the real problem

Furr, N. & Dyer, J. (2014). The Innovator´s Method: Bringing the Lean Start-Up Into Your Organization. Boston: Harvar Business Review Press.
 Related theory
A process of innovation from start to finish

How to generate, test, validate and market new ideas?

INSIGHT PROBLEM SOLUTION BUSINESS Scale it

MODEL

MAIN Savor the Discover the Prototype

ACTIVITIES surprises work to be Awesome
done Minimal
Product

Theoretic Virtual Minimum Awesome

al prototype viable minimal
prototype product product

Furr, N. & Dyer, J. (2014). The Innovator´s Method: Bringing the Lean Start-Up Into Your Organization. Boston: Harvar Business Review Press.
 Related theory
A process of innovation from start to finish

How to generate, test, validate and market new ideas?

INSIGHT PROBLEM SOLUTION BUSINESS Scale it

MODEL

MAIN Savor the Discover the Prototype

ACTIVITIES surprises work to be Awesome
done Minimal
Product

Theoretic Virtual Minimum Awesome

al prototype viable minimal
prototype product product

Furr, N. & Dyer, J. (2014). The Innovator´s Method: Bringing the Lean Start-Up Into Your Organization. Boston: Harvar Business Review Press.
 Related theory
A process of innovation from start to finish

How to generate, test, validate and market new ideas?

INSIGHT PROBLEM SOLUTION BUSINESS Scale it

MODEL

Furr, N. & Dyer, J. (2014). The Innovator´s Method: Bringing the Lean Start-Up Into Your Organization. Boston: Harvar Business Review Press.
 Related theory
Building a culture of innovation

Bust through barriers

2
that block innovation
Vet and refine ideas
1 collectively and
Create tools that allow continuously
everyone to
communicate
strategically about
innovation

Isaacs, K. & Ancona, D. (2019). 3 Ways to Build a Culture of Collaborative Innovation. Harvard Business Review
 Related theory
Building a culture of innovation Tools for
communication

Develop strong strategic

arguments

Use simple jargon

Use common language

Watch the video “Amazon
Culture: Big ideas”
Use concise arguments https://www.youtube.com/wa
tch?v=i1WT5lXJTWg
 Related theory
Building a culture of innovation
Tools for communication

What are you trying to do?

01 Articulate your objectives using
absolutely no jargon

How is it done today, and what are

02 the limits of current practice?

DARPA
Heilmeier Catechism
What is new in your approach and
03 why do you think it will be
successful?

Who cares? What are the risks?

How much will it cost? How long
04 will it take? How to check for
success?
 Related theory
Building a culture of innovation
Refine ideas collectively & continually

Refine
01 Review and refine ideas continuously

Discard
02 Kill ideas when it is necessary, but not too soon

Frame
03 Have rules or guidelines to judge proposed
innovations

Involve
04 Invite diverse stakeholders early and often to
improve or refine an idea
 Related theory
Overcoming innovation barriers

Mindset barriers and inability to learn

Dominant design Lack of distinctive competencies

Obsolete mental models and theory-in-use

The “Risk Barrier”: Learning trap

Path dependency
Lack of realistic revenue and ROI expectation

High risks and uncertainty

Risk averse climate

Organizational dualism
Unwilling to cannibalize

The “Nascent Barrier”

Excessive bureaucracy
Lack of market sensing and foresight

Senior management turnover

Breaking the status quo Innovation process mismanagement

The “Infrastructural Barrier”

Lack of adequate follow-through

Assink, M. (2006). Inhibitors of disruptive innovation capability: a conceptual model. European Journal of Innovation Management, 9 (2), p 215-233
 Related theory
Strategic advantages trhough innovation

Rewrite the rules Novelty in the offer of

products or services

08 01

Robust platform design Process novelty

07 02

Cadence (timing) Complexity

06 03
Add/expand the range of Transfer through different
competitive factors application contexts
05 04

Tidd. J. & Bessant, J. (2009). Managing Innovation: Integrating Technological, Market and Organizational Change (4th ed.). Hoboken: John Wiley & Sons.
 Materials

Lab/classroom Markers Paper

 Method

1. Form 4 groups of 7-8: 2. Understand the problem 3. Present a solution 4. Make a video (YouTube, WeTransfer)
• Company 1 • Company 1: Insecurity in Bogotá • Companies 1, 2, 3 and 4 present the with the insights, problem, solution and
• Company 2 ¿How to mitigate it? solutions to the rest of the class (use some elements of the business model.
• Company 3 • Company 2: Traffic jams ¿How to the materials) • Before next Wednesday at 5:00 pm
• Company 4 reduce them? • The rest of the class • Select two of the guiding questions
• Company 3: Electric mobility ¿How (users/customers) evaluate the (next slides) and answer them
to facilitate it? solution and the level of satisfaction • Your team
• Company 4: Any other real problem with the solution (in a piece of paper) • Indicate the name of the company and
¿How to solve it? • Write the company’s number and team members
the team members • Include the feedback from the rest of
the class
• Maximum 5 minutes
• Search for insights
• Explore the problem worth solving
• Prototype a solution (use the materials) to the problem or part of it
• Explore basic elements of the business model (revenue streams, resources,
product/service, value proposition)
 Further instructions and deliverables

Activity Further instructions Deliverables

1. In reality there are hundreds of 1. These are real problems, provide 1. Solution (paper) using the
restrictions, this lab introduces realistic solutions, but know the materials (in class)
many of them: limited materials, limitations of the companies 2. Evaluation (paper) of the
time and knowledge. And also team 2. Be honest during the evaluation companies. Evaluate insight,
frictions 3. Please check the background problem, solution, basics of the
2. We have 40-50 minutes, use them theory and business model; explain why. Use a
wisely examples/data/information from scale from 0.0 to 5.0. (in class)
3. If you want to work on your own the internet to get inspiration 3. Video (YouTube, WeTransfer) with
problem/solution join the team of the insights, problem, solution…
the company 4 (next Wednesday)
4. This is not a competition 4. These activities are in the same
groups/teams
 Guiding questions

What are the advantages and At the cultural level, what

Did you followed the innovation
disadvantages of following an innovation barriers did you find?
process step by step? Why?
innovation process? Explain

Questions

Based on the experience, what is What strategic advantages

How was the interaction between
the most difficult part of the through innovation did you include
the members of your team?
innovation process? in the solution? Explain
 Thanks!

Jose Orlando Montes de la Barrera

Innovation Center
Business School,
[email protected]