Driving Maximum Value Extraction of Innovation Moises Norena Global Director of Innovation
WHAT IS INNOVATION ABOUT? FROM TO $375 Before innovation embedment Innovation embedded $350 ASV CAGR +3.9 % $325 ‘02 – ‘09 Average ASV Ticket ($) CAGR (3.4)% $300 ‘97 – ‘02 $275 $250 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
LAUNCH AND LOVE ? (b) (a) How about (b) vs (a)?
THE WHIRLPOOL INNOVATION PROCESS 2 3 1 Develop Deliver Opportunities & Grow Discovery & (AKA Launch Experiment and Love)
THIRD DIAMOND TO COMBINE TWO DISCIPLINES Management 1. The combination of innovation and Marketplace Management 2. A systematic approach to maximize value extraction in-market: Turning non-innovations into Providing differentiated consumer innovations value Capturing marketplace and Bringing sustainable competitive performance insights advantage Innovating in go-to-market Maximizing return: margin expansion and share growth
Experimentation: An “AND” not an “INSTEAD OF” OBJECTIVE OF EXPERIMENTING WHY IS IT DIFFERENT? • • Not validation The primary purpose is learning • • Let the team challenge their own To test hypotheses and/or assumptions with consumers and iterate and adjust assumptions and adjust the concepts innovative business concepts accordingly • • Failing is the best way to learn To learn from small (but real) and cheap failures. • In-market vs in-lab. Small budget owned by business • • By executing, learning, iterating, testing To accelerate the learning again • Develop internal knowledge inside the • Having the team own the planning, the team, challenge their own assumptions actions and results
Insight (trade) example
A pipeline of opportunities Discovery GARDEN OF ELABORATED IN EXPERIMENT IDEAS AND OPPORTUNITIES OR SCALE-UP INSIGHTS • 2 Experiments 4 Domains 10 Opportunities Estimated value $50 m 60 Ideas • Preliminary recommendation 38 Insights annual revenue . • 8 experiments to Learn about key assumptions on ideas 12 May 2011 8
Example of opportunity brief
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