Book - Innovation - The Five Disciplines For Creating What Customers Want

Innovation: The Five Disciplines For Creating What Customers Want

About SRI International, the innovators behind the computer mouse, HDTV, robotic surgery, and other world-changing ideas. Written by Curtis R. Carlson and William W. Willmot.

Review by Goeffrey Moore

"Innovation—mystery or mastery? For Carlson and Wilmot, the answer is definitely the latter. Following the example of Deming's approach to quality—another of those magically powerful substances—they lay out a thoughtful, practical methodology for managing innovation projects through to successful outcomes. Sure, in that one percent inspiration there may be the occasional moment of mystery, but for those of us operating in the ninety-nine percent perspiration part of the field, it's terrific to finally get a great user's manual." —Goeffrey Moore, author of Dealing with Darwin: How Great Companies Innovate at Every Phase of Their Evolution

Amazon Book Description

Nothing is more important to business success than innovation . . . And here's what you can do about it on Monday morning with the definitive how-to book from the world's leading authority on innovation

When it comes to innovation, Curt Carlson and Bill Wilmot of SRI International know what they are talking about—literally. SRI has pioneered innovations that day in and day out are part of the fabric of your life, such as:

*The computer mouse and the personal computer interface you use at home and work
*The high-definition television in your living room
*The unusual numbers at the bottom of your checks that enable your bank to maintain your account balance correctly
*The speech-recognition system used by your financial services firm when you call for your account balance or to make a transaction.

Each of these innovations—and literally hundreds of others—created new value for customers. And that's the central message of this book. Innovation is not about inventing clever gadgets or just "creativity." It is the successful creation and delivery of a new or improved product or service that provides value for your customer and sustained profit for your organization. The first black-and-white television, for example, was just an interesting, cool invention until David Sarnoff created an innovation—a network—that delivered programming to an audience.

The genius of this book is that it provides the "how" of innovation. It makes innovation practical by getting two groups who are often disconnected—the managers who make decisions and the people on the front lines who create the innovations—onto the same page. Instead of smart people grousing about the executive suite not recognizing a good idea if they tripped over it and the folks on the top floor wondering whether the people doing the complaining have an understanding of market realities, Carlson and Wilmot's five disciplines of innovation focus attention where it should be: on the creation of valuable new products and services that meet customer needs.

Innovation is not just for the "lone genius in the garage" but for you and everyone in your enterprise. Carlson and Wilmot provide a systematic way to make innovation practical, one intimately tied to the way things get done in your business.

Teamwork isn't enough; Creativity isn't enough; A new product idea isn't enough

True innovation is about delivering value to customers. Innovation reveals the value-creating processes used by SRI International, the organization behind the computer mouse, robotic surgery, and the domain names .com, .org, and .gov. Curt Carlson and Bill Wilmot show you how to use these practical, tested processes to create great customer value for your organization.

Why Listen to Us? 1
- 1) The Essence of Innovation: How Frank Hit a Home Run 6
- 2) Innovate or Die: The Exponential Economy 22
DISCIPLINE 1: IMPORTANT NEEDS
- 3) Work on Important Customer and Market Needs: The RFID Tag 49
- 4) Creating Customer Value: Your Only Job 64
DISCIPLINE 2: VALUE CREATION
- 5) It's As Simple As NABC: How Liz Got Her Big Job 85
- 6) Watering Holes for Creating Value: The Day the BBC Walked In 101
- 7) More Ideas for Faster Value Creation: Origins of Linux 114
- 8) Your Elevator Pitch: How HDTV Began 127
- 9) Your Innovation Plan: From the Ski Slope to the Firehouse
DISCIPLINE 3: INNOVATION CHAMPIONS
- 10) A Champion: The Mayor of Kellyville 157
DISCIPLINE 4: INNOVATION TEAMS
- 11) Genius of Teams: Douglas Engelbart and the Birth of the Personal Computer 169
- 12) Forming the Innovation Team: How We Won an Emmy for HDTV 183
- 13) Overcoming Blockages to Innovation: Jim Torpedoes a Splendid Idea 200
- 14) Innovation Motivators: Saving Larry's Life 220
DISCIPLINE 5: ORGANIZATIONAL ALIGNMENT
- 15) Your Innovation Team: You Can Start Now 235
- 16) The Innovation Enterprise: Continuous Value Creation (CVC) Throughout 247
- 17) Innovation's Five Disciplines: A Foundation for National Competitiveness in a World of Abundance 264
Appendix: Value Factor Analysis 293
Glossary 299
Notes 305
Acknowledgments 339
Index 343

Notes

Why Listen to Us? 1
- - The authors are talking about the process of innovation pioneered at SRI International, inventors of
    - computer mouse
    - internet TLD designations .com, .org, and .gov
    - first mobile transmissions over wireless and wired networks
    - First arpanet log-on
    - Micr number at the bottom of checks
    - U.S. Postal Service mail sorting system
    - Halofantrine - antimalarial drug
    - HIV drugs
    - hidef TV
    - Motion picture production innovations
      We live in a world of abundance.
    - Figure 1.1 - "Enterprises that focus on their customers hae shared language and tools for understanding customer value, and have a alue-creation rpocess do the best at creating new customer value.

1) The Essence of Innovation: How Frank Hit a Home Run 6

"Innovation is now the primary driver of groth, prosperity, and quality of life."

Paul M. Romer, Stanford University

How We Got Here

Business As Usual Won't Work

The Important Questions That Are The Starting Point of Successful Innovation

Who is your customer?
What is the customer value you provide and how do you measure it?
What innovation best practices do you use to rapidly efficiently, and systematically create new customer value?

The Five Disciplines of Innovation

Important needs: Work on important customer and market needs, not just what is interesting to you (Chapter 3 and 4)
Value Creation: Use the tools of value creation to create customer value fast (Chapters 5, 6, 7, 8, and 9, and the Appendix)
Innovation Champions: Be an innovation champion to drive the value-creation process (Chapter 10)
Innovation Teams: Use a multidisciplinary, team-based approach to innovation to create a collective, genius level IQ (Chapters 11, 12, 13, 14)
Organizatinal Alignment: Get your team and enterprise aligned to systematically produce high-value innovations (Chapters 15 and 16)

Page 20

Failure to ultimately satisfy any one of the Five Disciplines of Innovation will probably lead to failure on the project... They are multiplicative.... A zero for any of the Five Disciplines, the chances of success go to zero...

Page 20

This is a customer centered system, a response to the economic forces of today. The great ideas in an organization must be connected with customers.

- 2) Innovate or Die: The Exponential Economy 22
  "The exponential economy requires exponential improvement processes." - Curtis R. Carlson
  "The most powerful force in the universe is compound interest." - Albert Einstein
  - The World Is A Dot
    - - Exponential Economy
    - Transition to Knowledge
    - Expanding Impact
    - Productivity
  - Company Lifetimes
    - Product Lifecycles
    - Getting from A to B
  - Principle of Knowledge Compounding
  - Application to Innovation Teams

DISCIPLINE 1: IMPORTANT NEEDS

3) Work on Important Customer and Market Needs: The RFID Tag 49

"Work on what's important, not just what's interesting - there's an infinite supply of both." - Frank Guarnieri

Precious Metals
Criteria for Important Customer and Market Needs
- Important External Customer and Market Needs
- Important Internal Customer NEeds
Other Considerations for Important Customer and Market Needs

Selecting Your Important Projects

How To Apply The First Discipline To Your Projects

Do you work on innovative activities that can make a demonstrable difference to your customers, whether internal or external?
Is it aligned with your organization's goals?
Are you willing to commit to it?

4) Creating Customer Value: Your Only Job 64

"I said to my dad, "I am just one good idea away from starting my own venture." My dad said, "No, what you need is not an idea, it's a customer.'" - Sarah Nowlin
"Customers are sacred." - Norman Winarsky

Customers?
Value Creation is Everyone's Job

DISCIPLINE 2: VALUE CREATION
- 5) It's As Simple As NABC: How Liz Got Her Big Job 85
- 6) Watering Holes for Creating Value: The Day the BBC Walked In 101
- 7) More Ideas for Faster Value Creation: Origins of Linux 114
- 8) Your Elevator Pitch: How HDTV Began 127
- 9) Your Innovation Plan: From the Ski Slope to the Firehouse
DISCIPLINE 3: INNOVATION CHAMPIONS
- 10) A Champion: The Mayor of Kellyville 157
DISCIPLINE 4: INNOVATION TEAMS
- 11) Genius of Teams: Douglas Engelbart and the Birth of the Personal Computer 169
- 12) Forming the Innovation Team: How We Won an Emmy for HDTV 183
- 13) Overcoming Blockages to Innovation: Jim Torpedoes a Splendid Idea 200
- 14) Innovation Motivators: Saving Larry's Life 220
DISCIPLINE 5: ORGANIZATIONAL ALIGNMENT
- 15) Your Innovation Team:

You Can Start Now 235

- 16) The Innovation Enterprise: Continuous Value Creation (CVC) Throughout 247
- 17) Innovation's Five Disciplines: A Foundation for National Competitiveness in a World of Abundance 264
Appendix: Value Factor Analysis 293
Glossary 299
Notes 305
Acknowledgments 339
Index 343

Excerpt

Excerpt of Innovation - The Five Disciplines For Creating What Customers Want

Individuals And Companies Featured

SRI Innovation
Frank Guarnieri

About the Authors

Curtis R. Carlson is the president and CEO of SRI International, working with leading companies in a wide variety of industries, including pharmaceuticals and health sciences, computers and communications, energy and the environment, and national defense. Dr. Carlson started and led the team that set the U.S. standard for HDTV, for which his team shared an Emmy. He lives in Menlo Park, California.

Curtis R. Carlson is an author of

Innovation: The Five Disciplines For Creating What Customers Want

More about Book - Innovation - The Five Disciplines For Creating What Customers Want...

William W. Wilmot helped create the SRI Discipline of Innovation workshop and is director of the Collaboration Institute, a group specializing in workplace communication and collaboration. Dr. Wilmot, an emeritus professor at the University of Montana, lives in Georgetown Lake, Montana.

William is also an avid world traveler. He has been on African safaris, and visited European art capitals, as well as sacred Western Tibet mountains. He lives in Montana.

William W. Wilmot is an author of: