Innovation Management Models

© Operational Excellence Consulting. All rights reserved.
This presentation is a collection of PowerPoint diagrams and
templates used to convey 25 different innovation management
frameworks, models and methods.
Innovation Management
Models
Diagrams and Templates of Innovation
Management Frameworks & Models

© Operational Excellence Consulting. All rights reserved. 2
Contents
1. Three Horizons of Growth
2. The Innovation Matrix
3. Innovator’s Dilemma
4. Disruptive Innovation Model
5. Innovation Circle Model
6. Stage-Gate Model
7. Ten Types of Innovation
8. Blue Ocean Strategy
9. Human-Centered Design
10. Five Modes of Design Thinking
11. Business Model Canvas
12. Business Model Design Process
13. Value Proposition Canvas
14. Value Proposition Map
15. Customer Segment Profile
16. Empathy Map
17. Customer Journey Map
18. Six Thinking Hats
19. Jobs-To-Be-Done Framework
20. The Job Map
21. Technology Adoption Life Cycle
22. 70-20-10 Rule
23. Business Process Reengineering
24. Six Sigma Methodology
25. Six Steps of Kaizen
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The Three Horizons of Growth Model is a useful tool to distinguish
between the embryonic, emergent and mature phases of a business’s
life cycle
Three Horizons of Growth Model
Source: McKinsey
Time (Years)
Profit
Horizon 1
Extend and defend
core business:
Activities that are most
closely aligned to your
current business.
Horizon 2
Build emerging
businesses: Taking
what you already have,
and extending it into
new areas of revenue-
driving activity.
Horizon 3
Create viable
options:
Introducing entirely
new elements to
your business that
don't exist today.

The Innovation Matrix helps leaders identify the right type of strategy
to solve a problem by assessing the problem and domain definitions
The Innovation Matrix (4 Types of Innovation)
Source: Greg Satell
ProblemDefinition
Domain Definition
Not Well Defined Well Defined
NotWellDefinedWellDefined
BREAKTHROUGH INNOVATION
Mavericks
Skunk Works
Open innovation/prizes
SUSTAINING INNOVATION
Roadmapping
R&D labs
Design thinking
Acquisitions
BASIC RESEARCH
Research divisions
Academic partnerships
Journals and conferences
DISRUPTIVE INNOVATION
VC model
Innovation labs
15%/20% rule
Lean launchpad

Innovator’s Dilemma is one of the most significant and widely
recognized theories which is designed to explain psychological and
economic phenomenon regarding disruptive innovations
Source: Clayton Christensen
Sustaining
innovation
Disruptive innovation
Most demanding customers
Least demanding customers
Innovator’s Dilemma

Disruptive Innovation is an innovation that leads to a product or
service designed for a new set of customers
Source: Christensen, Raynor & Mcdonald
Disruptive Innovation Model
PRODUCT
PERFORMANCE
Higher
Lower
PERFORMANCE CUSTOMERS WILL PAY FOR
Incumbent’s sustaining trajectory
Entrant’s disruptive trajectory
High end of the
market
Low end of the
market
Mainstream
MOST PROFITABLE
LEAST PROFITABLE
Time

The Innovation Circle is a model for analyzing and managing the life
cycle of a new innovation
Source: Krebbekx & de Wolf
Innovation Circle Model
Function
Creation
Process
Market
Introduction
Order
Realization
Process
Utilization Receive
incentives
Generate
ideas
Product
Creation
Process
Service
Realization
Process
Creation
Implementation
Capitalization

The Stage-Gate model takes the process of developing an idea from
inception to launch and divides it into stages, separated by gates
Stage-Gate Model
Source: Cooper, Edgett & Kleinschmidt
Gate
1
Gate
2
Gate
3
Gate
4
Gate
5
Stage
1
Stage
2
Stage
3
Stage
4
Stage
5
Idea
Initial
screen
Decision on
business
case
Pre-
commercialization
business analysis
Post
development
review
Preliminary
investigation
Detailed
investigation
(build business
case)
Development Full production
and market
launch
Testing and
validation

The Ten Types of Innovation framework provides a way to identify
new opportunities beyond products and develop viable innovations
Ten Types of Innovation Framework
Source: Doblin
Profit
Model
Network Structure Process Product
Perfor-
mance
Product
System
Service Channel Brand Customer
Engage-
ment
Profit Model
The way in
which you
make money
Structure
Alignment of
your talent and
assets
Product
Performance
Distinguishing
features and
functionality
Service
Support and
enhancements
that surround
your offerings
Brand
Representation
of your
offerings and
business
Network
Connections
with others to
create value
Process
Signature or
superior methods
for doing your
work
Product
System
Complementary
products and
services
Channel
How your offerings
are delivered to
customers and
users
Customer
Engagement
Distinctive
interactions
you foster
Offering ExperienceConfiguration

Value Innovation is the cornerstone of Blue Ocean Strategy – placing
equal emphasis on value and innovation
Blue Ocean Strategy – The Four Actions Framework
Eliminate
Reduce
Raise
Create
COST
VALUE
Value
Innovation
Reduce
cost
Increase
customer
value
Source: C. Kim, R. Mauborgne

HCD is a process that starts with the people you are designing for
and ends with new solutions that are tailor-made to suit their needs
Experience
Innovation
Emotional
Innovation
§ Brands
§ Relationships
§ MarketingPeople
(desirability)
Business
(viability)
Technology
(feasibility)
Design
Thinking
Functional
Innovation
Process
Innovation
Start here
Three Lenses of HCD
Source: IDEO

The Five Modes of Design Thinking is a human-centered, creative
problem-solving process of discovery, ideation and experimentation
Five Modes of Design Thinking
Source: Stanford d.school
Learn about the
audience for
whom you are
designing, by
observation and
interview. Who is
my user? What
matters to this
person?
Create a point of
view that is based
on user needs
and insights.
What are their
needs?
Brainstorm and
come up with as
many creative
solutions as
possible.
Wild ideas
encouraged!
Build a
representation of
one or more of your
ideas to show to
others. How can I
show my idea?
Remember: A
prototype is just a
rough draft!
Share your
prototyped idea
with your original
user for
feedback. What
worked? What
didn’t?
Empathize
Define
Ideate
Prototype
Test

The Business Model Canvas consists of nine generic building blocks
for developing new or documenting existing business models
Business Model Canvas
Key Partners Key Activities Value Proposition Customer Relationships Customer Segments
Key Resources Channels
Cost Structure Revenue Streams
§ What are our Key Partners?
§ Who are our Key Suppliers?
§ Which Key Resources are we
acquiring from partners?
§ Which Key Activities do
partners perform?
§ What Key Activities do our
Value Propositions require?
§ Our Distribution Channels?
§ Customer Relationships?
§ Revenue Streams?
§ What do we deliver to the
customer?
§ Which one of our customer’s
problems are we helping to
solve?
§ What bundles of products and
services are we offering to
each Customer Segment?
§ Which customer needs are we
satisfying?
§ What type of relationships
does each of our Customer
Segment expect us to
establish and maintain with
them?
§ Which ones have we
established?
§ How are they integrated with
the rest of our business
model?
§ How costly are they?
§ For whom are we creating
value?
§ Who are our most important
customers?
§ What Key Resources do our
Value Propositions require?
§ Our Distribution Channels?
§ Customer Relationships?
§ Revenue Streams?
§ Through which Channels do
our Customer Segments want
to be reached?
§ How are we reaching them
now?
§ How are our Channels
integrated?
§ Which ones worked best?
§ Which ones are most cost-
efficient?
§ How are we integrating them
with customer routines?
§ What are the most important costs inherent in our business model?
§ Which Key Resources are most expensive?
§ Which Key Activities are most expensive?
§ For what value are our customers really willing to pay?
§ For what do they currently pay?
§ How are they currently paying?
§ How would they prefer to pay?
§ How much does each Revenue Stream contribute to overall revenues?
Source: Strategyzer

The Value Proposition Canvas is a simple tool to understand
customers’ needs and create value that they want
Value Map Customer Profile
Value Proposition Canvas

An Empathy Map is a tool to help you synthesize your observations
about your customer segment and draw out unexpected insights
What does the person
THINK & FEEL?
Customer
What really counts
Major preoccupations
Worries and aspirations
HEAR?
What friends say
What boss says
What influencers say
SEE?
Environment
Friends
What the market offers
SAY & DO?
Attitude in public
Appearance
Behavior towards others
PAIN
Fears
Frustrations
Obstacles
GAIN
Wants/Needs
Measures of success
Prestige
Empathy Map
Source: XPLANE

Customer Journey Mapping is a method of documenting and
visualizing the experiences the customers have with your
organization with the intention of improving these interactions
Customer Journey Mapping
ILLUSTRATIVE
Customer
Actions
Activity Phase
Touchpoints
Thinking
Feeling
Backend
Processes
Enter Starbucks Find Seat Buy Coffee Wait for Coffee Drink Coffee
Look at café
surroundings
Entrance / Posters /
Signages
§ Am I entering
the right place?
§ Is the air-con
cold enough?
Walk towards
counter
Café space
§ Can I find seats?
§ Is there a long
queue?
Queue at the
counter to be served
Ordering Counter /
Wall Menu Display
§ Which coffee do
I want?
§ How much does
it costs?
Payment process (cash
/ membership card /
mobile app)
Seat at the table
Seat
§ Is the seat
taken?
§ Coffee done just
right. Yummy! J
Clearing the tables
Wait at the counter
Collection Counter
§ How long do I
have to wait?
§ Is the coffee
order correct?
Brew the coffee
+
-

The Six Thinking Hats represents six ways of thinking about
strategies and helps us to see potential opportunities
Source: Edward de Bono
Six Thinking Hats
The White Hat - Facts
White hat thinking focuses on
data, facts, information known or
needed.
The Yellow Hat - Benefits
Yellow hat thinking focuses on
values and benefits. Why
something may work.
The Red Hat - Feelings
Red hat thinking focuses on
feelings, hunches, gut instinct
and intuition.
The Black Hat - Cautions
Black hat thinking focuses on
difficulties, potential problems. Why
something may not work.
The Blue Hat - Process
Blue hat thinking focuses on
managing the thinking process,
focus, next steps, action plans.
The Green Hat - Creativity
Green hat thinking focuses on
creativity: possibilities, alternatives,
solutions, new ideas.

The Jobs-To-Be-Done (JTBD) framework reveals the 5 types of jobs that
the job executor, the product lifecycle support team and the buyer are
trying to get done
The Jobs-To-Be-Done Framework
Source: Strategyn
Job Steps
(Conclude)
Job Steps
(Modify)
Job Steps
(Monitor)
Job Steps
(Execute)Job Steps
(Confirm)
Job Steps
(Prepare)
Job Steps
(Locate)
Job Steps
(Define)
Cross Functional Job
Related
Jobs
Emotional
Jobs
Install
Setup
Learn
to useInter-
faceTrans-
portClean
Store
Main-
tain
Upgr-
ade
Repair
Dispose
Consumption
Chain Jobs
Product Lifecycle
Support Team
Receive
Purchase
Financial
Metrics
Purchase
Decision
Maker
Job-to-be-Done
Needs Framework
Job Executor

The Job Map enables companies to capture all the customer’s needs
into specific process steps and systematically discovering innovation
opportunities that are key to growth
The Job Map
Source: Strategyn
Define Locate Prepare Confirm
Execute Monitor Modify Conclude
1. Define your customers goals and resources.
2. Locate what information is needed to do the job.
3. Prepare the environment where the job will be done.
4. Confirm that your customer is ready to get the job done.
5. Execute the job.
6. Monitor the job so that it's successfully executed.
7. Modify and make alterations to improve execution.
8. Conclude the job or repeat.

The Technology Adoption Life Cycle is a model that describes the
acceptance of a new product or innovation, according to the
demographic and psychological characteristics of user groups
Source: Geoffrey Moore
Technology Adoption Life Cycle
THECHASM
Early market Mainstream market
Innovators Early
adopters
Early
majority
Late
majority
Laggards

The 70-20-10 Rule is a simple rule for allocating resources between “the
core”, “the adjacent” and “the innovative stuff”, often referred to as
“the transformational”
70-20-10 Rule
INVESTMENT LONG-TERM RETUENS
CORE
ADJACENT
TRANSFORMATIONAL
70%
70%
20%
20%
10%
10%
The Core refers to the
activities that make up
the majority of existing
business
Adjacent refers to new
improvements and logical
extensions for the current
business
Transformational refers
anything brand new for
the organization that isn’t
related to the core

Business Process Reengineering (BPR) is the fundamental
reconsideration and radical redesign of organizational processes
Business Process Reengineering Model
1.
Determine Scope
& Goal
3.
Install
Management
4.
Implement &
Integrate
Indicator for need:
§ Conflicts
§ Meetings
§ Non-structure
communication
§ Strategic dialog
Key elements:
§ Focus on output
requirements
§ Critical success
factors
§ Efficiency
Key elements:
§ Define management
tools
§ Performance
measurement
§ Learning
§ Compensation
Key elements:
§ Install management
§ Manage change
management
2.
Redesign Process
Structure
Source: Hammer & Campy

Six Sigma DMAIC is a data-driven improvement cycle used for
improving, optimizing and stabilizing business processes
Six Sigma
DMAIC
Roadmap
Improve
Measure
Analyze
Define
Control
Define the problem
or opportunity
Measure the current
performance and
capability
Analyse to identify
root causes
Improve by
implementing potential
solutions
Control by
standardizing solution
and monitoring
performance

The Six Steps of Kaizen model defines six simple steps that can be
used by workgroups for product and process innovations
Six Steps of Kaizen
Source: Kato & Smalley
1. Discover
Improvement
Potential
2. Analyze the
Current Methods
3. Generate
Original Ideas
4. Develop an
Implementation
Plan
5. Implement the
Plan
6. Evaluate the
New Method

Operational Excellence Consulting is a management training and consulting
firm that assists organizations in improving business performance and
effectiveness. Based in Singapore, the firm’s mission is to create business
value for organizations through innovative design and operational excellence
management training and consulting solutions. For more information, please
visit www.oeconsulting.com.sg

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