Contents
Making Innovation Work: How to Manage It, Measure It, and Profit from It, Updated Edition
Introduction to Updated Edition
Chapter 1 Driving Success: How You Innovate Determines What You Innovate
Innovation Is the Power to Redefine the Industry
The Innovation Imperative: Driving Long-Term Growth in Top and Bottom Lines
How to Make Innovation Work: How You Innovate Determines What You Innovate
1. Exert Strong Leadership on Innovation Direction and Decisions
2. Integrate Innovation into the Business Mentality
3. Match Innovation to Company Strategy
4. Manage the Natural Tension Between Creativity and Value Capture
5. Neutralize Organizational Antibodies
6. Cultivate an Innovation Network Beyond the Organization
7. Create the Right Metrics and Rewards for Innovation
Summary: The Innovation Company
Chapter 2 Mapping Innovation: What Is Innovation and How Do You Leverage It?
A New Model of Strategic Innovation
Innovation Model and the Innovation Rules
Chapter 3 Choosing Your Destiny: How to Design a Winning Innovation Strategy
Play to Win and Play Not to Lose Strategies
Clearly Defined Innovation Strategy Drives Change
Do You Select an Innovation Strategy?
Risk Management and Innovation Strategy
Innovation Strategy: The Case of the Pharmaceutical Industry
Attempts to Solve the Innovation Problem
Changing the Innovation Approach
Strategy and the Innovation Rules
Chapter 4 Organizing for Innovation: How to Structure a Company for Innovation
Developing an Internal Marketplace for Innovation
Balancing Creativity and Value Creation
The Balance Changes as the Organization Matures
Five Steps to Balancing Creative and Commercial Markets
Making Good Use of Your Partners
Integrating Innovation within the Organization
The Value of Networks and Innovation Platforms
The Corporate Venture Capital Model
Organization and the Innovation Rules
Chapter 5 Management Systems: Designing the Process of Innovation
Systems and Processes Make Things Happen
The Objectives of Well-Designed Innovation Systems
Choosing and Designing Innovation Systems
Systems for Ideation: Seeing the Gaps
Management Systems and the Innovation Rules
Chapter 6 Illuminating the Pathway: How to Measure Innovation
The Three Roles of a Measurement System
A Balanced Scorecard for Measuring Innovation
The Business Model for Innovation
Inputs, Processes, Outputs, and Outcomes
From the Business Model to the Measurement System
Designing and Implementing Innovation Measurement Systems
Measuring Your Innovation Portfolio
Measuring Execution and Outcomes of Innovation
Measuring Sustainable Value Creation
The Barriers to Effective Performance Measurement
Measurement and the Innovation Rules
Chapter 7 Rewarding Innovation: How to Design Incentives to Support Innovation
The Importance of Incentives and Rewards
Different Strokes for Different Folks
A Framework for Incentive Systems’ Design
Setting Goals for Measuring Performance
Quantitative vs. Qualitative Goals
Success-Driven vs. Loss-Avoidance Goals
Performance Evaluation and Incentive Contracts
Subjective vs. Objective Evaluation
Relative Performance vs. Absolute Performance Evaluation
The Shape of the Pay–Performance Relationship
Key Considerations in Designing Incentives Systems for Innovation
The Negative Effect on Intrinsic Motivation
Incentives and Rewards, and the Innovation Rules
Chapter 8 Learning Innovation: How Do Organizations Become Better at Innovating?
Learning Systems for Innovation
Systems for Refining the Current Model
Systems for Building Competencies
How to Make Learning Work in Your Organization
Knowledge and Ignorance Management
Failures As Part of the Process
The Dynamic Nature of Innovation Strategy
Learning and the Innovation Rules
Chapter 9 Cultivating Innovation: How to Design a Winning Culture
How Culture Affects Innovation
Is Innovation the New Religion?
Organizational Levers of an Innovative Culture
The Levers of an Innovative Culture
Different Country Cultures Breed Different Innovation Cultures
Recruiting to Build an Innovative Organization
Turn Your Recruitment Strategy Upside-Down!
Culture and the Innovation Rules
Chapter 10 Conclusion: Applying the Innovation Rules to Your Organization
Combining Creativity with Commercial Savvy
Leadership Must Define the Innovation Strategy and Link It to the Business Strategy
Leadership Must Define Who Will Benefit from Improved Innovations
The Technology Innovation Model
Additions to Bibliography for Updated Edition
Creating Breakthrough Products: Revealing the Secrets that Drive Global Innovation
Glossary of Acronyms and Terms
Chapter 1 What Drives New Product Development
Positioning Breakthrough Products
Products, Services, and Product-Service Ecosystems
Identifying Product Opportunities: The SET Factors
POG and SET Factor Case Studies
The Margaritaville Frozen Concoction Maker
The GE Healthcare Adventure MRI Series
Chapter 2 Moving to the Upper Right
Integrating Style and Technology
The Growth of Consumer Culture
The Introduction of Style to Mass Production
Post–World War II Growth of the Middle Class and the Height of Mass Marketing
The Rise of Consumer Awareness and the End of Mass Marketing
The Era of Customer Value, Mass Customization, and the Global Economy
Positioning Map: Style Versus Technology
Lower Left: Low Use of Style and Technology
Lower Right: Low Use of Style, High Use of Technology
Upper Left: High Use of Style, Low Use of Technology
Upper Right: High Use of Style and Technology
Positioning Map of Margaritaville Frozen Concoction Maker
Positioning Map of BodyMedia FIT System
Positioning Map of GE Adventure Series
The Upper Right and Intellectual Property
Revolutionary Versus Evolutionary Product Development
Chapter 3 The Upper Right: The Value Quadrant
The Sheer Cliff of Value: The Third Dimension
The Shift in the Concept of Value in Products and Services
Qualities and a Customer’s Value System: Cost Versus Value
Value Opportunity Charts and Analysis
VOA of Margaritaville Frozen Concoction Maker
VOA of GE Adventure Series MRI
The Time and Place for Value Opportunities
The Upper Right for Industrial Products
Chapter 4 The Core of a Successful Brand Strategy: Breakthrough Products and Services
Brand Strategy and Product Strategy
Corporate Commitment to Product and Brand
Corporate Values and Customer Values
Company Identity Versus Product Identity
Building Brand Versus Maintaining Brand
Starting from Scratch: Cirque du Soleil
Redefining a Brand: Herbal Essences
Maintaining an Established Identity: Harley
Brand and the Value Opportunities
Chapter 5 A Comprehensive Approach to User-Centered, Integrated New Product Development
Clarifying the Fuzzy Front End of New Product Development
iNPD Is Only Part of the Process
Allocating the Time Resource: Scheduling
Allocating the Cost Resource: Financing
Allocating the Human Resource: Team Selection
Chapter 6 Integrating Disciplines and Managing Diverse Teams
User-Centered iNPD Facilitates Customer Value
Negotiation in the Design Process
PDM and the Role of Core Disciplines
Issues in Team Management: Team Empowerment
Understand the Corporate Mission
Serve As a Catalyst and a Filter
Let the Team Become the Experts
Recognize the Personality and Needs of the Team
Use of an Interests-Based Management Approach
iNPD Team Integration Effectiveness
Chapter 7 Understanding the User’s Needs, Wants, and Desires
Overview: Usability and Desirability
An Integrated Approach to a User-Driven Process
Using Ethnography to Understand Parrotheads
Lifestyle Reference and Trend Analysis
Ergonomics: Interaction, Task Analysis, and Anthropometrics
Scenario Development (Part II)
Identifying Users in Nonconsumer Products: Designing Parts within Products
Visualizing Ideas and Concepts Early and Often
Chapter 8 Service Innovation: Breakthrough Innovation on the Product–Service Ecosystem Continuum
The Era of Interconnected Ecosystems: Product, Interface, and Service
Umpqua: Designing a Bank Like a Product
UPS Moves Beyond the Package Delivery Industry
The Disney Renaissance: The Ultimate Entertainment Service
Interaction Through a Multisensory Interactive Teaching Tool
Chapter 9 Case Studies: The Power of the Upper Right
Reinventing the Classroom with Upper Right Seating Systems: The IDEO and Steelcase Node
Ball Parks Play in the Upper Right: The Dallas Stadium and PNC Park
Innovation in Machining: Kennametal Beyond Blast Titanium Manufacturing
Electric Vehicle Innovation: Bringing Upper Right Transportation to the Twenty-First Century
Upper Right Open Innovation Partnerships between Companies and Universities
Innovation along the Highway: Navistar International LoneStar
The 50+ and Environmental Responsibilities: Designing a New Refillable Sustainable Packaging System
Making University–Industry Innovation Partnerships Work
Chapter 10 Case Studies: The Global Power of the Upper Right
Brazil: Innovation and Growth in South America
China: Haier, The First Major Chinese Global Brand
India: Design Impact and Social Responsibility in India
Be Green Packaging: The World Is Flat Meets Cradle to Cradle in Connect+Develop
DesignSingapore Council: The Third Component from the Little Country That Can