| Foreword | ix |
| Preface | x |
Part I | An Executive's Guide to Fast Innovation | |
Chapter 1 | Using Fast Innovation to Drive Organic Growth | 3 |
| Innovation's Contribution to Organic Growth and Value Creation | 5 |
| The Challenges of Sustained Growth | 7 |
| The Fast Innovation Value Proposition | 9 |
| Conclusion | 13 |
Chapter 2 | The Three Innovation Imperatives: Differentiated, Fast, Disruptive | 15 |
Imperative #1 | Differentiation | 16 |
Imperative #2 | Fast Time-to-Market | 18 |
Imperative #3 | Disruption | 23 |
| The Power of Disruptive Innovation | 27 |
| The Most Important Disruptive Innovation of the 20th Century | 28 |
| Joining the Winning 10%: Being disruptive (even if based on sustaining innovations) | 31 |
| Conclusion | 33 |
| Spotlight on Customers and Differentiation | 35 |
| Understanding the Heart of the Customer | 38 |
Strategy #1 | Develop strong links to both the core and fringes of your market | 38 |
Strategy #2 | Use ethnography to understand customer needs better than anyone else | 41 |
| What's Really Different? | 46 |
| A Look Ahead | 47 |
Chapter 3 | How to Become Fast | 49 |
Prerequisite 1 | Attacking the biggest drivers of innovation lead time | 51 |
| The Law of Lead Time | 51 |
| The Astounding Impact of Variation | 54 |
| The Sources of Project Delays | 56 |
| Meeting Project Schedules Despite Task-Time Variation | 58 |
Prerequisite 2 | Rapid Cycles of Learning Creates Differentiation | 64 |
A | Ethnography | 64 |
B | Rapid Prototyping | 65 |
C | The Innovation Blitz | 68 |
D | Flexible Performance Target Design | 70 |
| Conclusion | 71 |
Chapter 4 | The Value of Thinking in Three Dimensions | 73 |
Dimension 1 | New Product/Service Innovation | 74 |
Dimension 2 | Market Definition Innovation | 75 |
Dimension 3 | Process/Business Model Innovation | 78 |
| The Strong Advantage of Multidimensional Innovation | 83 |
| Conclusion | 89 |
Chapter 5 | Open Innovation: Applying the Intellect of the Planet | 93 |
| A Quick Look at the Closed Innovation Model | 94 |
| Open Innovation Model | 98 |
Open Innovation Case #1 | Eli Lilly's web-based InnoCentive | 99 |
Open Innovation Case #2 | Procter & Gamble | 104 |
Open Innovation Case #3 | Intel's problem that required thousands of innovators | 106 |
| The Future of "R" in Corporate R&D? | 109 |
| Conclusion | 111 |
Chapter 6 | The Religion of Re-use | 113 |
| Why Re-use?: To become faster and more differentiated | 114 |
| Platforms and Operating Cost Efficiency: An organizing principle for re-use | 116 |
| Overcoming Resistance to Re-use: A case study | 120 |
| Using "External" Platforms to Capture Customers | 124 |
| Conclusion | 126 |
| Spotlight on Leading Innovation | 131 |
| Disruptive Innovations Where CEO Presence Was Necessary | 133 |
| Characteristics of an Innovation-Enabling Executive | 136 |
| Defining the Burning Platform | 138 |
| Recap of Fast Innovation | 141 |
Part II | Building Corporate Innovation Capacity | |
| Introduction to Part II | 147 |
Chapter 7 | Foundations of an Innovation Factory | 149 |
Foundation #1 | Leadership courage and engagement | 150 |
| Building Leadership Engagement | 153 |
| How to get there: The executive retreat | 154 |
Foundation #2 | Business units capable of meeting the demands of Fast Innovation | 156 |
1 | Design/development groups (R&D) | 156 |
2 | Marketing/Strategy | 158 |
3 | Sales/Service | 158 |
4 | Operations | 159 |
5 | Finance | 161 |
Foundation #3 | Superior execution capability to deliver innovations | 161 |
| Conclusion | 164 |
| Spotlight on Conquering the Cost of Complexity | 165 |
| The (Often Hidden) Impact of Complexity | 168 |
| Conquering Complexity Accelerates Innovation | 171 |
| Attacking Complexity | 173 |
Chapter 8 | The Executive Engine of Fast Innovation: Using a Chief Innovation Officer to Drive Results | 177 |
| The Responsibilities of the Chief Innovation Officer | 178 |
| Defining Innovation Goals and Metrics | 182 |
| Funding Disruptive Innovation: Real Options Theory | 186 |
| Real Options Theory | 188 |
| Conclusion | 191 |
Chapter 9 | Becoming Customer Driven | 193 |
| Using Customer Knowledge Throughout the Design Process | 194 |
| A Case Study in VOC | 197 |
| VOC Translation Tools (Design for Lean Six Sigma) | 202 |
| Increasing Trust in Your VOC | 212 |
| Conclusion | 213 |
| Spotlight on Creating an Idea-Rich Environment | 215 |
1 | Raise awareness of innovation opportunities | 215 |
2 | Create an Idea Forum | 216 |
Chapter 10 | Fast and Flexible: The New Corporate Mantra for Design Work | 219 |
| Flexible Performance Targets: How to be creative without sacrificing lead time | 221 |
| Designing to Flexible Performance Targets | 222 |
| Conclusion | 233 |
Chapter 11 | Institutionalizing Re-use | 235 |
| The Many Faces of Re-use | 235 |
| Re-use and Innovation by Analogy | 236 |
| Re-use and Best Practices | 237 |
| Re-use and Channels | 238 |
| Re-use and Intangible Products | 238 |
| Re-use Resistance (and How to Overcome It) | 240 |
Argument #1 | Developing re-usable designs is too expensive | 241 |
Argument #2 | "I'm a creator, not a re-user" | 242 |
| Other Ways to Facilitate Re-use | 243 |
| Conclusion | 244 |
| Part II Conclusion | 246 |
Part III | Deploying Fast Innovation Projects | |
| Introduction to Part III | 248 |
Chapter 12 | Project Screening and Selection | 249 |
| Identifying Opportunities | 250 |
| Managing Sustaining vs. Disruptive Evaluation Processes | 251 |
| Screening Ideas at the Business Unit Level | 253 |
Screen #1 | Rough "go/no-go" filter | 253 |
Screen #2 | Composite scores on attractiveness and effort | 254 |
Screen #3 | Business case development and project selection | 257 |
| Hold Off on That Launch! | 259 |
Chapter 13 | Increasing Innovation Capacity Without Adding Resources | 261 |
| Gathering the Necessary Data | 264 |
Step 1 | Categorize your developers' activities | 264 |
Step 2 | Gather time data | 265 |
| Optimizing Utilization: A case study | 267 |
| Multi-Tasking Harms Creativity | 271 |
| Attacking the Causes of Multi-tasking | 272 |
| Conclusion | 275 |
| Spotlight on The Innovation Blitz | 277 |
| Traditional vs. Blitz Model: Trench warfare vs. a lightning attack? | 278 |
| Using the Blitz approach | 279 |
Chapter 14 | The FastGate Method: How to Control Innovation Lead Time | 283 |
| FastGate, Feedback and Critical Resources | 284 |
| The FastGate Method for Innovation Project Management | 287 |
| Making the Initial Adjustments | 288 |
| Ongoing Use of FastGate Reviews | 290 |
| Tracking Project Performance | 291 |
| Oregon Productivity Matrix | 293 |
| Conclusion | 295 |
Chapter 15 | Creating Innovation Incubators: How to Catalyze Creativity on Your Teams | 297 |
| Becoming a Catalyst for Creativity | 299 |
1 | Immerse team members in customer knowledge and other background | 300 |
2 | Make the problem difficult and specific | 300 |
3 | Push the boundaries in brainstorming | 302 |
4 | Help (or even force) people to think in new ways | 303 |
5 | Look at the whole value stream; keep their minds open to all steps | 307 |
6 | Allow space for thinking/ruminating | 307 |
| Conclusion | 308 |
| Recap of Part III | 309 |
Appendix 1 | The Impact of Task Variation and Utilization on Lead Time | 311 |
Appendix 2 | Time Buffers and Feedback Systems | 321 |
Appendix 3 | Innovation and Information Creation | 326 |
| Index | 328 |