fixing innovation
re-firing growth
Beyond Value Podcast Episode:
» Stop asking “how do I add value?”
»Start asking: “how do I enable better progress?”
The Problem
» Growth is stalling
» Innovation is failing
» everyone agrees that innovation drives growth
» you’re investing more in innovation than ever…yet you’re getting less growth
» your teams are out there selling…but you’re missing growth expectations
» you’re not alone…something is structurally wrong
» the very concept that has driven our previous explosive growth – chasing value – has structural limitations that are now holding us back
The world is facing a decade of stagnation — the “Tepid 20s”.
International Monetary Fund
Only 6% of executives are satisfied with their innovation initiatives
McKinsey
few suppliers…are able to answer…how you define and measure value?
Anderson and Narus
The Needed Shift
» From adding value
» To improving well-being
» …through enabling progress
…value really emerges for customers when goods and services do something for them
Grönroos, C.
Value creation is ultimately about improving the well-being of actors.
Vargo & Lusch
Progress: moving, over time, to a more desired state (operationalises improving well-being)
The Progress Economy
» embedding value is an incomplete map for today’s economy; to a destination we struggle to define, agree and measure.
» it’s time for an evolved approach: a shift to value-in-use thinking. We don’t add value, we offer to improve well-being
» and we operationally do that by enabling better progress
» progress reveals a clear operating system of our world, an actionable definition of innovation, and a set of levers to systematically drive innovation and sales activities
» value? that is comparisons of well-being, made before, during, and after progress
» executive implications
CEO
align your organisation’s vision, purpose and narrative around enabling (better) functional, non-functional and contextual progress rather than producing outputs
➠ push closer to what customers really want: reaching their progress sought, with six lowest progress hurdles and quickest progress recognition
CMO
improve your organisations capability to identify customers’ progress sought and progress origins; transition messaging from product benefits to the progress your organisation helps make
➠ helping reach progress sought = max value for customers; but that progress sought (and starting progress origin) constantly evolve: innovate or die
CInO
organise innovation and R&D around i) helping customers make better progress and existing progress better, ii) reducing one or more of the 6 progress hurdles and iii) accelerating their progress recognition schedule (that they interpret as a view on value)
➠ apply the progress levers to move innovation/product design from a game of chance to systematic success
COO
design operations to deliver and adapt propositions that meet constantly evolving customer origins and progress sought
➠ implement a Progress Owner role – a supercharged product owner, responsible for i) understanding customers’ evolving progress origin/sought, ii) improving customers’ progress (innovation), and iii) executing progress proposition(s) (execution)
CFO
reframe investment around cost-to-enable-improved-progress and maximising service exchange – size * number – though often through service credits (typically in the form of money)
➠ open the door to business model innovation
the purpose of an organisation is to attract service exchange (to help it reach its progress sought)…as such, it has three, and only three functions: marketing, innovation and execution
» case studies
Shift to the Service Economy
The shift to a service economy isn’t just economic, it’s strategic. Here we find those levers. The Progress Economy reframes this change as Seekers positioning themselves towards relieving end of proposition continuum. Though some seekers… …more »
Leveraging Artificial Intelligence
Where does Artificial Intelligence fit in the progress economy? Generally it’s part of the proposition resource mix. …more »
Disruptive Innovation
Explore how disruptive innovation is seen through the progress economy lens …more »
Blue Ocean Strategy
Leveraging Blue Ocean Canvas to explore functional, non-functional and contextual progress and find blue oceans …more »
