Thursday, January 19, 2017

BEI J&J Partner of Choice


Back End of Innovation Conference Keynote

Becoming a Partner of Choice through Supplier Enabled Innovation
By Janette Edelstein, Director External Innovation and Chris Ryan, Director Innovation Sourcing: Johnson & Johnson

Janette began by harkening to the company’s values: “Our goal is to be smart, focused, and purposeful, based on the J&J credo.”
Our global footprint requires that we go deeper than a supplier relationship. We prefer to call our suppliers partners.
Johnson and Johnson has a strong legacy of innovation—from band aids to baby shampoo.
The question for us was how to take this vital culture of internal innovation and expand it to our partners on the outside.
With brands such as Aveeno, Johnson’s Baby, Band-Aid, Tylenol, Neutrogenea, Visine, and others—we need to keep the innovation pipeline full—and there are many more solutions outside our organization than inside.
Being a large organization that has a Pharma bent, our consumer brands can speed us the access to market by looking externally.
How we do external innovation:
“We co-create with the world to accelerate new consumer solutions.”
Discover | Design | De-Risk| Deliver is the method J&J developed.
J&J has innovation centers handle the front end of Discover. Market screening and Learning Plan Validations help the Design end of the process. Partners/supplier-enabled innovation helps De-Risk and Deliver, how we execute and take the solutions to the market.

Advanced Sourcing & Innovation: here’s how we enhance the value creation of supplier-need innovation. We try to think through a Joint Value Creation to ensure world-class capabilities, build a collaborative and performance-based partnership model, and manage the relationship with key financial metrics with a 3-5 year view.
This way we can manage the pipeline while speeding up the timelines. Projects can move forward.
External Innovation Mythbusters:
1.    Innovation business models founded on strategic areas and funded.
2.    We need optimized resources based on capabilities of partners—so it is a blend of internal and external.
3.    Synergy improves efficiency—and makes time-to-market faster.
Two case studies of this method are Band-Aid and Neutrogena.
These partnerships enable us to launch in a year. By leveraging partners’ capabilities and development processes, we can get to market faster. “I want our partners to feel like they own these equities as much as J&J does,” says Janette. The Neutrogena Light Therapy Acne Mask empowers consumers to pay $40 to perform a treatment for which they would have to pay much more and spend more time having this procedure performed at a dermatologist’s office. The Shower Care Band Aid meets a wound-care need for consumers—and is something we didn’t develop in house.

Partnerships aid our overall pipeline and pipeline development, creating platforms for sustained innovation.
Key Focus Areas for External Innovation Business Model:
1.    Focused empowered teams (dedicated teams)
2.    Quicker decision making
3.    Process toolkit—clear expectations
4.    Clear guidance on Strategy for External Innovation scope
5.    Better defined agreements for partnerships (aids activation and efficiency)




 Michael Graber is the managing partner of the Southern Growth Studio, an innovation and strategic growth firm based in Memphis, TN and the author of Going Electric. Visit www.southerngrowthstudio.com to learn more.

Wednesday, January 18, 2017

Front End of Innovation 2017 Event Agenda Just Released


We’re starting the year off with some big news…the FEI 2017 event agenda is ready for YOU.

Year after year, FEI: Front End of Innovation boasts the most expansive combination of critical innovation topics with industry-leading speakers to help transform your ideas into market winning strategies. The 2017 program ups the ante to provide even more hands on experiences and actionable take-aways:

FEI: Front End of Innovation
May 9-11, 2017| Boston, MA

·         75+ Speakers including Clay Christensen - the ‘Father of Disruptive Innovation’, and Tony Fadell - former advisor to Steve Jobs and VP of Apple’s iPod Division, and Founder of Nest. 

·         4 Days including a full pre-day  on how LARGE CORPORATES CAN PARTNER WITH STARTUPS (hosted at the MassChallenge Accelerator) and a BRAND NEW Chief Innovation Officer Summit.

·         60+ Sessions designed to tackle critical issues encountered across the entire innovation spectrum: Design Thinking, Customer Driven Innovation, Sparking Culture Change, Disruptive Trends & Tech, Growth Strategy & Business Model Innovation

Explore the 2017 Program Now: http://bit.ly/2jzDWgW

Use your exclusive LinkedIn discount code FEI17BL for $100 off the current rate. Buy tickets: http://bit.ly/2jzDWgW

We hope to see you in Boston this spring!

Cheers,
The FEI Team
@fei_innovation

Tuesday, January 17, 2017

5 Keys to Successful Collaboration



Back End of Innovation Conference Keynote
Five Keys to Successful Collaboration
Daniel Shapiro, Ph.D, Associate Professor of Psychology, Harvard Medical School/McLean Hospital and Associate Director of Harvard International Negotiation Project

Shapiro begins his keynote by the fantasy of how easy innovation can be—and how it crashes against the steel wall of the reality.

“The key to successful commercialization is successful collaboration,” he claims. “Think of the conflicts, the stress, the negotiations—and imagine if you can streamline that process and make it even five percent better. It’s an emotional problem, not a rational one.”

Shapiro proposes a framework for socializing the efforts, to better understand the emotional side of collaboration and deal more effectively with the emotions of others.

The primary question is how do you deal with emotions. The default is to suspend emotions, but the reality is that you cannot. Emotions are complicated and complex, but essential to the human experience and meaningful collaboration.

Don’t focus on emotions directly is his advice. Instead, take one step back and focus on core concerns. The five basic core concerns are: Appreciation[RE1] , Affiliation, Role, Status, and Autonomy. If you deal well with these five concerns, you are in a better position.

Let’s start with Appreciation. No one likes to feel unheard, devalued, not understood. Appreciation has a big impact on emotions. This is a key tool to getting concepts approved. How do you do it? Here are three basic tactics:
1.     Understand the other’s point of view
2.     Find merit in what they think, feel, or do
3.     Communicate your understanding

This is the most powerful tool for executives in negotiating. The key to such communication is listening—and also asking good, open-ended questions.

The next core concern is Autonomy. Autonomy is the freedom to make decisions without imposition from others. When someone’s autonomy feels imposed upon, professionals get defensive.

How do you deal with Autonomy? Always consult before deciding.

Affiliation is the emotional connection between you and others. The ideal is to turn an adversary into a colleague.

To build Affiliation don’t walk in and state a position. Rather, walk in as ask for advice authentically.

Status is about who is up and who is down. Status is your standing in relation with another.

The final of the five concerns is Role. We play pre-established roles. Strategy, shape your roles and theirs.

To stimulate helpful emotions:
1.     Respect autonomy
2.     Build affiliation
3.     Acknowledge status
4.     Shape a fulfilling role
5.     Express appreciation

Seek to understand all parties’ emotions.







Michael Graber is the managing partner of the Southern Growth Studio, an innovation and strategic growth firm based in Memphis, TN and the author of Going Electric. Visit www.southerngrowthstudio.com to learn more.


Wednesday, January 11, 2017

Performance Management - Raising team performance to 90%+ of potential

How do you manage the performance of your teams in order to raise their productivity to 90% of potential from the current US average of 45%?

This is the 3rd in a five-part series on Human Capital Management


Think back to the last time you interviewed someone that you subsequently hired. Remember the sparkling eyes, the cocktail party charm, the attack-dog ambition, the body language redolent with energy. What happened to it?

Six months later, the plucky individual who you thought was sure material for a future CEO is now just like the rest of the team, coasting. Instead of being the division's standard-bearer, they are now settling for middle of the road performance, doing just enough to keep their job, not enough to win the promotion you desperately want to give them.

Is it their fault?

Is it yours?

Or is it just the way things always is?

What's sure is that it's no-one's fault. Nobody set out to deceive anybody. And it doesn't have to be the way things is any longer.

We now know that when a person puts themselves forward as a candidate for a job and is accepted for that job, the entire process has been carried out at a superficial level. That's right, it's as cosmetic as applying eyeliner to a face and expecting a fundamental change of character to occur. The hiring industry is almost a fraud.

Traditionally, we advertise a job by describing the skills and experience required. We then go and look for someone who possesses the requisite skills. When we have a match we clap our hands and hit them with an employment contract. Job done.

Unfortunately, job not so done.

What neither the candidate nor the hirer have realized is that beneath the surface of the candidate's skills and experience lies something far more fundamental and important to their future success. It's a layer of the mind in which is writ all of the deeply personal drivers that fuel our ambition. We use expressions like 'life goals', 'what I'm here for', and 'my purpose in life' to describe this layer. In Method Teaming we call this layer our natural strengths and talents.

Our natural strengths and talents are like wild horses that want to pull us in a particular direction. They do not pull us towards a particular career (such as engineering, accountancy, sales) but rather indicate the way in which we want to apply that career. Natural strengths and talents are like the tectonic plates of our psyche: they are hidden, they are deep, they are formidable and they have now been uncovered.

Method Teaming is a science that has revealed the hidden fields of our mind. More importantly, it is a science that can be taught to anyone. It has catalogued, described and mapped the complicated landscape of mankind's natural strengths and talents. Yet it is able to reveal them in a visual form that anyone can immediately read and understand.

Method Teaming was developed by business people for business people. It can be used to make absolutely perfect recruitment decisions. But it can also be used throughout the duration of a person's employment with their firm to ensure that whatever role they are performing (and most of us change roles quite frequently within our corporation, few people stay for ever doing the same job they were hired for) it entirely tallies with the demands of their natural strengths and talents.

The Method Teaming Pay-Off: Going from 45% to 90%+ of potential.

When our job role aligns with our natural strengths and talents, two astonishing things happen. The first is that our productivity leaps up the scale. We approach each day with the same sparkle and energy that we showed at our interview and we keep that energy through the day until we go home. 

We achieve goals and stretch targets routinely and we eat work like Leiningen's ants eat a forest, ravenously. The second thing that happens is our job satisfaction ratings soar as if someone lit the fuse. We look forward to our next day's work as if to our favorite leisure pursuit. We enjoy what we do. The wild horses are pulling us towards our place of work not away from it.


And when these two things come together, productivity and satisfaction, that's when not only does overall performance rise inexorably towards 100%, but your employees are smiling while they do it. If you're a manager and you've brought about the changes that are behind that drift to the top, you can honestly say you've managed performance. Job done.

Monday, January 9, 2017

If You Want to be in Front, Lead from Behind



Back End of Innovation Conference Keynote
Tamara St. Claire
CIO: Xerox Healthcare
Three key tools for Xerox Healthcare's innovation efforts:
1.     Lean Start Up model: Based on a non-conventional approach to management to act more like a start up, not assuming you know what the market wants. Build. Measure. Learn—this is the cycle of Lean Start Up. Then, build MVP, minimally viable product, which is a way to test customer reactions. Develop criteria for success. Should you pivot or persevere? This process manages the chaos and uncertainty of new product development. 
2.     Business Model Canvas model: Forget writing business plans, write business canvas models. The vital concept is that it distills down the value on one page, which is all that any executive has time to devote on a new idea. These canvases can be evergreen and dynamic. This tool helps you map, design, and create new business models. You can map out the whole business model on one canvas. 
3.     Getting Out of the Building: Your business plans will never survive your first customer. Take the hypothesis into the market and test. Remember, it’s not a sales call. This is not a Voice of the Customer exercises. This is a What If exploration, an opportunity to both pressure test a model and learn what may make it better.

These three concepts are practices we use everyday in my innovation group, says St. Claire. What I want to share is why Chief Innovation Officer role is important. Having someone who is responsible with real metrics for innovation is critical for innovation to take root.

Five Tools for Innovation:

1.     Strategy: So many organizations do not have strategies; it is staggering. Innovation must be tied to the strategy. Strategy defines the sandbox that innovation can play in. Guardrails of strategy are important. Conversely, innovation can inform strategy. It’s a yin and yang, strategy and innovation. These forces must collaborate.
2.     Ethnography: Many companies have a technology-led innovation. Ethnography keeps the focus on the problem, not the solution. Ethnography is the study of human behavior in a culture. Using real insights from real people can inspire innovation teams to create really necessary and obvious solutions.
3.     Market Timing: Being too early to the market is just as bad as being too late. At PARC they invented the tablet 15 years before the iPad. Gartner’s Hype Cycle is a lifecycle method. Here is the 2016 version:
a.     Technology Trigger: a new technology breakthrough. No practical application. No real viability. 10 or more years will be spent before the technology is widespread.
b.     Peak of Inflated Expectations: you have a few successes and many failures. Here is where the lemmings of VCs jump in. Categories include: autonomous cars, connected home.
c.      Trough of Disillusionment: example, augmented reality.
d.     Slope of Enlightenment: here you see the 2.0s and 3.0s and strategics begin to invest. Example: virtual reality.
e.     Plateau of Productivity: example: Enterprise Cloud.

And yet, there is “no real easy answer to market timing.” There is one view that if you take a niche product to an early-adopter market and get traction, then you may have the ability to scale.

4. Build, Buy & Partner

Often M&A groups, marketing, and RND all have their own silos, all going in various directions. If they can all coordinate and ladder up to a shared strategy, then they can work in sync.

We have a series of formal question to vet whether to build, buy, or partner. You must be able to build a business case that justifies the acquisition. Having these three levers—build, buy, or partner—are critical to get to market effectively and with impact.

5. External Communications: Before we entered the space, we had a two-year plan to establish thought leadership in telemedicine. This “Trojan horse” method works as a powerful tool to socialize ideas and establish a position and point of view around possible areas of exploration.

Innovation cannot happen in a silo. The whole innovation ecosystem is critical to our mission. Bringing relationships with VCs, incubators, and ventures allows us to see the “froth,” the areas that are emerging. We need to all collaborate more, partner deeper, to truly innovate.

Wednesday, January 4, 2017

Keurig's Journey into Connected Appliances



Keurig’s Journey into Connected Appliances

Rachael Schwartz, General Manager and Senior Director Innovation, Keurig Green Mountain

Schwartz began with two main points:

1. You need a culture of innovation to successfully drive innovation within a company.

2. Innovation is built upon consumer-led pain points and trends.


A brief history: Keurig was founded in 1990 by three MIT professors who thought there was a better way to make coffee. We miniaturized the process and made it more simple, personalized, and fast. Convenience is the hallmark of our brand. What we also discovered is that spouses may like their own flavors, so personalization is key to our equity.

Keurig has more than 500 varieties from 75 brands, so our business is as much about these brand relationships as much as the machines that make the beverages themselves.

Schwartz shared a map of all of the consumer pain points, which the company sees as opportunities for innovation. This journey map helped find the needs in the market.

At the same time, smart appliance trends point the way to solving these consumer pain points. The company then mapped benefits of concepts to consumer pain points. This mapping exercise help set priorities for developing prototypes. The company developed a promise: The best Keurig Experience ever, and then tested the concept.

Then, the company did market research. IOT early adopters craved smarter coffee appliances—and were upset the company hadn’t already developed such items.

But those who desire an ideal coffee experience wanted these types of machines—many suburban moms and white-collar workers. “From these sessions, we began to more deeply understand consumer brew behavior.” From the research, personas were developed that explored purchase versus consumption data.

Relationships with consumers allow the company to better target  consumers that actually build relationships: smarter recommendations and automatic reordering, for example.

Three takeaways:
1.    Good innovations fall at the intersection of brand, trends and technology, and consumer pain points
2.    Build from consumers’ insights and pain points
3.    Create a culture that leans into disruption


Q: How simple can you make the set up for connected products?
A: That is the key question—the set up is a barrier. We are trying to make it as simple as possible.

Q: How much does culture play into your analysis of this process?
A: For consumers, our tribe is those who value convenience.










Michael Graber is the managing partner of the Southern Growth Studio, an innovation and strategic growth firm based in Memphis, TN and the author of Going Electric. Visit www.southerngrowthstudio.com to learn more.

Tuesday, January 3, 2017

Molding the Future of Impulse Purchases


Molding the Future of Unplanned Purchases
Melissa Crompton, Senior Manager, New Model Innovation, The Hersey Company

In this changing retail landscape, where trips in-store are down, how does a highly impulsive category remain relevant? 

And how do we become relevant to new audiences who are not going in-store? 
Melissa will touch on the discovery and exploration of an emerging future state of the impulse buy and insights uncovered. The bulk of the discussion will explore the activation against those insights via key test and learns that leveraged the equity of emerging partners to tap into new audiences and sell our products in innovative channels. 

This session will highlight;  
  • Key insights around the changing landscape and the future of the unplanned buy
  • The best way to anticipate the future is to try to shape it yourself
  • How selecting the right partner can credibly expose you to new consumers and audiences, while allowing you to piggyback off of their equity.

Consumers are more connected than ever before. Changes in the pace of life are changing consumer culture to  “I want what I want when I want it!”

So many changes are happening. Changes in communication. Changes in mobility. These changes create a commerce revolution, impacting how we think about unplanned purchases.

Given all of these cultural factors, the question for Hersey is: how can we solve for retail disruption, capture spontaneous purchases?

Through an exploration, five critical questions serve as a filter to disruption:

1.     Who or what?—How can we look at food trends overall, meal kit delivery systems, Amazon Fresh, not just traditional competition?
2.     Quantifiable?—Can you quantify the impact and not just dismiss current growth, but look at predicted growth?
3.     Will it stick?—What is the different between a real cultural shift verses a fad? Think of a fad as Goggle Glass, a trend as Fitbit, and a cultural shift as a iPhone.
4.     What are the scenarios?—How might the landscape look three-to-five years from now? Create scenarios.
5.     What can you do about it today?—new partners? A new business model innovation?

What future are we working to create? How can we actively tend to future growth? Can we gain foresight by modeling out the future today to hedge our bets?

Some questions for Hersey:
·      How can we disrupt the candy isle?
·      Can we offer experiences?
·      How do we solve for unplanned purchases out-of-store?

“We tested both ride sharing and partnering with meal kits.” These Test & Learns helped us understand consumers.

Sixteen percent of consumers order regularly. Sales are sto hit $1.5 billion this year. It is redefining meal planning and procurement.

Our goals were simple: reach receptive consumers. Get Hersey into hands. Leverage partners brand loyalty and love.

We co-marketed, integrating the campaigns of both entities-Chef’d and Hersey.

For ride sharing, we had different objectives: Engage in a meaningful way. Create experiences worth sharing. Drive content that increase loyalty. Hersey did three tests: in Nashville, Mexico, and Take 5 in Denver, Seattle, and Nashville.

What does the future hold?

You need to find new ways to get in front of consumers. You can find new places to play. You can Test & Learn today to prepare for tomorrow.




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