INNOVATION PLANNING A CATALYST FOR PROFITABLE GROWTH CeMAT - - PowerPoint PPT Presentation

INNOVATION PLANNING

A CATALYST FOR PROFITABLE GROWTH

CeMAT SOUTHEAST ASIA 3rd Mar 2017

ANTON HARJANTO, MBA

HEAD OF PRODUCT GROUP SUPPLY CHAIN PT UNILEVER INDONESIA Tbk

CONTENT

WHAT IS INNOVATION PLANNING ? INNOVATION PLANNING ROLE & PROCESS WHY INNOVATION FAILS ? SURVIVAL IN FIERCE COMPETITION

FORBES RANKING ON THE WORLD’S MOST INNOVATIVE COMPANIES 2016

Based on Innovation Premium methodology by Jeff Dyer, Hal Gregersen, and Clayton Christensen in the book The Innovator’s DNA.

PT UNILEVER INDONESIA Tbk

• The Unilever Sustainable Living Plan

is our blueprint for achieving our vision to grow our business, whilst decoupling our environmental footprint from our growth and increasing our positive social impact.

• These are huge challenges. They

are also huge opportunities for people and business to grow and succeed.

OUR STRATEGY

WHAT IS INNOVATION PLANNING ?

Innovation planning is the process of conducting systematic preparation to ensure successful execution of innovation which for new products involves demand estimation, capacity preparation, and delivery of new products to satisfy market demand. The same systematic preparation is also needed to ensure successful change(s) in operational (business) process or change in business model.

BRIDGING OPERATIONAL EXCELLENCE & INNOVATION EXCELLENCE

INNOVATION PLANNING ROLE

Operational Excellence (Perfect Order, Total Supply Chain Cost) Innovation Excellence (Time to Value, Return on R&D)

Source: Gartner (May 2013)

Including:

• 1. Setting goals
• 2. Identifying existing and needed resources and

capabilities

• 3. Assigning and prioritizing tasks
• 4. Developing timelines
• 5. Establishing evaluation measures
• 6. Developing protocols for dealing with the unexpected

Fundamentals: project management, risk mitigation, cross-functional collaboration and communication, and buying-in from executives and key stakeholders.

INNOVATION PLANNING PROCESS

MASTER INNOVATION VALUE CHAIN

IDEATION

• New product

and technology ideas

• New business

concepts and

• pportunities
• Consumer

insights

• Trend analysis

and anticipation

• New-to-the-

world and extensions of existing ideas SELECTION

• Strategy and

new product linkages

• Governance of

new initiatives

• Tracking and

definition

• Project

approval decision-making processes

• Use of advanced

valuation methodologies DEVELOPMENT

• Disciplined and

effective stage/gate process

• Time-to-market
• Bottleneck

elimination and identification of project “congestion”

• Parallel

planning of work steps

• Resource

allocation LAUNCH

• Marketing and

investment planning

• Consumer

profiling and segmentation

• Competitive

response and timing

• Advertising and

promotion decision making

• Product tracking

Source: Booz Allen Hamilton

MASTER INNOVATION VALUE CHAIN

IDEATION

• New product

and technology ideas

• New business

concepts and

• pportunities
• Consumer

insights

• Trend analysis

and anticipation

• New-to-the-

world and extensions of existing ideas

Reduced cost or priced versions of the product for the existing market New, improved versions of existing products / services, targeted to the current market Incremental innovations added to existing product lines and targeted to the current market Taking existing products / services to new markets New to the company product and new to the company market, but not new to the general market Radically different products / services

• vs. current offerings and markets

served

Innovation Type Description

Cost Improvements Product Improvements Line Extensions Market Extensions New Category Entries New to the World 1 2 3 4 5 6 Product development Line extensions Diversification New to the Company New to the world Market penetration Cost reductions, Product improvements Market development New Markets

Market

New Current Current New Ansoff Matrix

MASTER INNOVATION VALUE CHAIN

No Product Group Project Name Project Description Product Technology / Market Matrix Project Leader No of SKU Incremental TO & GP Capex Timing Status 1 A Alfa Market Development Arman 5 iTO: 80; iGP 25 Jan-18 2 B Bravo Product Development Budi 9 iTO: 100; iGP 40 10 Feb-19 3 B Charlie Market Development Chandra 12 iTO: 150; iGP 50 Mar-18 4 C Delta Market Penetration Dedi 3 iTO: 110; iGP 20 Apr-19 5 A Echo Product Development Eko 7 iTO: 75; iGP 15 20 May-18 6 A Foxtrot Diversification Fitri 5 iTO: 200; iGP 100 50 Jun-19 7 B Golf Diversification Gita 6 iTO: 300; iGP 200 100 Jul-19 8 B Hotel Market Penetration Herman 9 iTO: 80; iGP 20 Aug-18 9 C India Product Development Ivan 4 iTO: 100; iGP 40 10 Sep-19 10 A Juliett Market Penetration Julia 2 iTO: 50; iGP 10 Oct-18

MASTER INNOVATION VALUE CHAIN

SELECTION

• Strategy and

new product linkages

• Governance of

new initiatives

• Tracking and

definition

• Project

approval decision-making processes

• Use of advanced

valuation methodologies

MASTER INNOVATION VALUE CHAIN

DEVELOPMENT

• Disciplined and

effective stage/gate process

• Time-to-market
• Bottleneck

elimination and identification of project “congestion”

• Parallel

planning of work steps

• Resource

allocation IDEA TIME LAUNCH

Adapted from R. G. Cooper and B. Little

Uncertainty Amounts at Stake

MASTER INNOVATION VALUE CHAIN

LAUNCH

• Marketing and

investment planning

• Consumer

profiling and segmentation

• Competitive

response and timing

• Advertising and

promotion decision making

• Product tracking

Importance of Post-Launch Evaluation Problems and pitfalls:

• A lack of a market orientation
• Poor quality of execution
• Moving too quickly
• Not enough homework
• A lack of differentiation
• No focus, too many projects, and lack of resources

COLLABORATE

WHY INNOVATION FAILS

Roger Calantone and Robert Cooper published a study in the Journal of the Academy of Marketing Science and found that:

 28% were ‘better mousetraps’ that nobody wanted  24% were ‘me too’ products that offered little differentiation from rivals  15% were technical dogs that didn’t work properly  13% failed because of price cuts by competitors  13% were too expensive for most consumers  7% failed because of ‘plain and simple ignorance’

‘There are no bad ideas or bad products or bad innovations, Just bad applications for them and bad contexts.’ Nick Jankel-Elliott ‘Plans are worthless, but planning is everything’. Dwight D. Eisenhower

SURVIVAL IN FIERCE COMPETITION

• Disruptive innovation,

sustaining innovation, efficiency innovation – Clayton Christensen

• Differentiate or Die – Jack Trout

BRIDGING OPERATIONAL EXCELLENCE & INNOVATION EXCELLENCE

INNOVATION PLANNING ROLE & MATURITY LEVEL

Operational Excellence (Perfect Order, Total Supply Chain Cost) Innovation Excellence (Time to Value, Return on R&D)

Source: Gartner (May 2013)

THE ROLE OF INNOVATION PLANNING AS A CATALYST FOR PROFITABLE GROWTH

THANK YOU