Your enterprise may be growing at present. But, you can be certain that innovation and disruption will erode what have been successful services or products. We see this at work all the time.

Years ago, videos came on a cassette tape. Then DVD’s and now streaming services. Your enterprise will decline without innovation. This innovation program will keep your enterprise thriving.

Innovation is a longer term project. Hence, Innovate1000. “Double Your Growth Through Innovation in 1000 days (3 years). Achieve this through innovative new products.

This is a blue belt topic.

Contents

Your Enterprises Future in a Bulls Eye

Expectation of Your Current Product Mix

The Innovation Strategy Smorgasbord

Wrap-up

Resources

Your Enterprise’s Future in a Bulls Eye

Think of your enterprise like an innovation bullseye target with 3 rings.

1. Centre ring: Your existing activities, or “core business”.
To grow this group as fast as possible use strategies like Grow 365.
Grow365 aims to double your growth over a 12 month period.
Go to the Course introduction: Grow Your Enterprise in 365 Days (Grow365)

2. Middle ring: Your time horizon for the next 1-3 years.
Experts say this is the length of time required to identify a new innovation.

Many innovations that are attempted don’t succeed. These are not failures in a bad sense. They are the natural result of experimentation.
Darwin’s theory of evolution shows modifications that didn’t work; and the species died out.

There is a body of knowledge about the most efficient way of approaching startups. This is called Lean Startups.
Go to the article: Profitable Startups. Scroll to Lean Startup Theory.
 
Lean Startup Theory uses the concept of a Minimum Viable Product (MVP) to prototype a new enterprise concept.
It will allow it to fail quickly without costing a great deal of money; if indeed it is going to fail.

3. Outermost ring: On your innovation roadmap bullseye is a period of 3-5 years.

Innovation and disruption can damage your existing products in this longer period. You may consider “Blue Sky” products.
These may be radical departures from what you already have or radical extensions of what you do have.

Example:

Apple was first famous for its iPod. Several years later, it introduced iPhones and then iPads. Several years later again, they introduced the Apple Watch.
Apple knows the importance of innovating products:

The term Innovate1000 refers to “Doubling Your Growth yet again over 1000 days or roughly 3 years”.

This is the middle ring in your innovation bullseye.

Unlike Optimise100 and Grow365 Courses, a far-sighted Manager will run Grow365 and Innovate1000 at much the same time. You are addressing different types of growth opportunities.

Go to the Course introductions: 
C2.0 Optimise Your Business Enterprise in 100 Days (Optimise100)
Introduction to Grow Your Enterprise in 365 Days (Grow365)

Expectations of Your Current Product Mix

As a going concern, your product mix will be at various places within the three innovation rings above.

Action:

Stocktake your products life expectancy using the Boston Consulting Group Growth Share Matrix (BCG Growth/Share Matrix)

The Boston Consulting Group pioneered a way of describing the products in your enterprise portfolio.

They categorise products into:
“Stars”, “Question Marks”, “Dogs” and “Cash Cows”.

Go to the Article: Boston Consulting Group Matrix.

Downsize the Dogs

Has innovation and disruption already bitten into some of your products and services?

Action:

Group these core products in the “Dog” section of your matrix.
Some of the “Dogs” may have never started. 
Others will have been viable enterprises.
Due to innovation and disruption, they have become less viable. This can be to the point of being unprofitable.

Consider:

The theory is that you should get rid of the “Dogs” – they have already exceeded their life expectancy.

As a going concern, they will be in the “core” ring of your bullseye.

Remove them by either:

Question the Question Marks

Action:

It is a judgement call about whether you hang on to them or let them go.

Sentimentality might encourage you to hang on but remember:

Ask yourself:

Could these resources be better used with your known “Stars”?

Milk the Cash Cows

The “Cash Cows”:

Action:

These will also be “core” – centre ring.
They are the heartbeat of the enterprise and invaluable for their cashflow.

The managers of these “Cash Cow” enterprises:

Aim for the Stars

The exciting enterprises in your portfolio are the “Stars”.
These have both high growth and high profit.

Unfortunately:

Example:

Enterprises, like Amazon, launch a mobile phone:

Your Need for Innovation

The only products with any reasonable life expectancy are your “Stars”.

Their natural tendency is to be replaced overtime by other disruption and innovation.
If you are lucky, they will move to the “Cash Cow” quadrant.

You will need more “Star” innovations if your enterprise is to have longevity. 

The Innovation Strategy Smorgasbord

The need to innovate is a very real problem for enterprises.
Experts over the years have developed methodologies for handling innovation.

Plenty of Choice for Innovation Strategies

There are around 14 different innovation strategies documented by these experts.
You can associate these with various parts of your core enterprise.
Innovate1000 explores these many innovation strategies and which ones may best suit your enterprise, in other articles.

Matching Managers to Innovation

Problem with innovation in an established enterprise:

The managers of these “Cash Cows”:

People who are content with running a steady-state enterprise:

There is a vast gulf between:

This is not a criticism of those managers.
They are vital in the “Cash Cow” environment.
It is a warning to choose the right personality for each type of activity in your enterprise.

Therefore, Innovate1000 addresses the issues on how to staff your innovation bullseye to take account of these personality issues.

Rationing Other Resources

There is also a very real challenge for our enterprise CEO’s.

Growth consumes money and other resources.
Because of its high failure rate, much of that money and other resources are “squandered”.

Difficulties:

Your enterprise reports to its stakeholders:

Ignoring innovation is a short-term strategy.
Many investors/stakeholders are happier with a bird in the hand rather than the prospect of a few more birds in the future.

The CEO will need to lead the innovation project personally and carefully. They will need to tend to its rather fragile ‘shoots”.

As discussed, opposition will come from several directions.
The most senior manager is necessary to foster what are, essentially, in-house start-ups.

Customer Reaction to Innovation

Way back in the 1940’s, 2 researchers wrote about “The Diffusion of Innovation”.

They observed that the introduction of new crop varieties followed a lifecycle that:

Then:

Then:

“Late Adopters” took on the new crop varieties after several years of experience with the VEPA’s and Early Adopters.
Approximately 50% of the customer base.

Finally:

A certain percentage of them never took it on at all (“Non-adopters”).
The cropping success of the non-adopters deteriorated.
The more productive crop varieties took over the market share.

Go to the article: Diffusion of Innovation AKA Crossing the Chasm

The theory of the Diffusion of Innovation is still very much alive today; and just as true.

Departing the VEPA quadrant for Early Adopter territory:

Example:

Wrap-up

Innovate1000 is shorthand for a 3 year (1000 days approx.) innovation campaign.
This innovation campaign ensures your enterprise can continue to grow – or at least survive – in a disruptive world.

More content and resources will follow.

Resources

One of the best known authors in this space:

Geoffrey Moore: – is an American organisational theorist, management consultant and author.
Go to the Wikipedia article for further information and book links.

And a classic:

In 1997, Clayton Christensen wrote “The Innovator’s Dilemma”.
Go to the Wikipedia article: The Innovator’s Dilemma.

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