The Innovator's DNA - Five Skills of Disruptive Innovations - Jeff Dyer - EDITED

The Innovator's DNA:
Mastering the Five Skills of Disruptive Innovators
Todays Speaker
Jeff Dyer, Professor of Strategy at Brigham

Young University and Co-author and
Founder of The Innovators DNA
SEPTEMBER 11, 2014

The
Innovators
DNA
JEFFDYER
BYUandWharton
HALGREGERSEN
INSEAD
CLAYTONM.CHRISTENSEN
HarvardBusinessSchool
What is innovation?
Copyright 2013 Innovators DNA LLC 8

What is innovation?
Novel and
Useful Idea

What is innovation?
Novel and Successfully

+
Useful Idea Implemented

What is innovation?

+ =
innovation

What is innovation?

+ =
innovation
New
PRODUCT

What is innovation?

+ =
innovation
New New
PRODUCT SERVICE

What is innovation?

+ =
innovation
New New New
PRODUCT SERVICE PROCESS

What is innovation?

+ =
innovation
New New New New
PRODUCT SERVICE PROCESS EXPERIENCE

What is innovation?

+ =
innovation
New New New New New
PRODUCT SERVICE PROCESS EXPERIENCE CHANNEL

What is innovation?

+ =
innovation
New New New New New New
PRODUCT SERVICE PROCESS EXPERIENCE CHANNEL MARKETING

What is innovation?

+ =
innovation
New New New New New New New PROFIT
PRODUCT SERVICE PROCESS EXPERIENCE CHANNEL MARKETING FORMULA

DisruptiveInnovators
Howdothey getnewideas
Howdothey getnewideas
HowcanI getnewideas
WheredoInnovativeIdeascomefrom?
Abilitytoconnectseeminglyunrelatedideasand
putthemtogetherinnewways(DQ)
Associating
Creativityisconnecting
thingscreativepeople
connectexperiences
theyvehadand
synthesizenewthings.
SteveJobs
CEOAppleInc.
JenniferHyman,MBAStudent
DesignerDresses
DesignerDresses
DesignerDresses
TheInnovatorsDNAModel
Cognitive
Skill
Associating
Cognitive Creative
Skill Idea
Associating
Cognitive Creative
Skill Idea
Associating
Discovery Cognitive Creative
Behaviors Skill Idea
Associating
Questioning
Associating
Questioning
Observing
Associating
Questioning
Observing
Networking
Associating
Questioning
Observing
Networking
Experimenting Associating
Questioning
What:
Activelyquestion
thestatusquo.
Why:
Gainanunder
standingofwhat
theproblemisand
isnot.
GoodQuestionsImposeConstraints
Whatifwewerelegallyprohibitedfrom
conductinganyfuturebusinesswithour
currentsetofcustomers.
Whatifwewerelegallyprohibitedfrom
conductinganyfuturebusinesswithour
currentsetofcustomers.
Howwouldwemakemoneynextyear?
Whatifwecouldonlyinteractwithour
customersthroughdigitaltechnologies?
Whatifwecouldonlyinteractwithour
customersthroughdigitaltechnologies?
Howwouldthatchangethewaywedelivera
greatcustomerexperience?
OrEliminateConstraints
Whatifmoneywerenoobject?
OrEliminateConstraints
Whatifmoneywerenoobject?
Whatkindofproductwouldwecreate?
QuestionStorming
Identifyaproblemthatyouaretryingto
solve.
QuestionStorming
solve.
Insteadofbrainstormingsolutions,
brainstormONLYquestionstotheproblem(at
least25questions).
QuestionStorming
solve.
least25questions).
Writethequestionsonawhiteboardforall
toseeastheyarebeinggenerated.
QuestionStorming
solve.
least25questions).
Writethequestionsonawhiteboardforall
toseeastheyarebeinggenerated.
Attheend,prioritizethetop35questions
thatshouldbeaddressed/answeredbefore
brainstormingsolutions
Observing
Observing
What:
Gaininsightsfor
newwaystodo
thingsbyfinding
surprises.
Why:
Understandthe
jobtobedone.
Identify key jobs-to-be-done through
customer empathy and discovery
People don't want to buy they want a quarter-inch hole!"
a quarter-inch drill - Theodore Levitt
Solution Job
What? Why?
Empathy
Understand customer functional,
social, and emotional
jobs-to-be-done

Solution Job
What? Why?
Empathy Discovery
Understand customer functional, Overcome customer barriers
social, and emotional through simplicity, convenience,
jobs-to-be-done cost, and access

Solution Job
What? Why?
Empathy Discovery
Understand customer functional, Overcome customer barriers
social, and emotional through simplicity, convenience,
jobs-to-be-done cost, and access
Look for jobs that are important, unmet, and widely-held

Observing
TheonlywayIknowto
teachpeopletobe
innovativeistoteach
themhowtoobserveand
askjustonequestion
thatoftengenerates
surprisingresponses,
Whatsdifferentthan
ScottCook
youexpected?
CEO,Intuit
Observing
P&GandGoogleswapmarketingandHR
employeesfortwomonths tolearnthrough
observingandnetworking.
Observing
Observing
Results:
P&GlearnshowtouseMommyBloggersto
promoteproducts.
Observing
Lived in 2+ Countries
Observing
AND
OR Worked in 2+
Industries/
Business
Lived in 2+ Countries Functions
Observing
AND
OR Worked in 2+
Industries/
Business
Lived in 2+ Countries Functions
Twice as Likely to Innovate

Creative Idea
Creative Idea Generation
Generation
Observingis
Thepropensitytointensely
observetheworldaroundyou
suchascustomers,products,
services,companiesand
technologiestogaininsights
andideasaboutnewwaysof
doingthings.
YourIdeaNetwork
In60secondsorless,listyourtop10(ormore)goto
peopleforhelpingyougenerateorsparknewideas.
1. ______________________
2. _______________________
3. _______________________
4. _______________________
5. _______________________
6. _______________________
7. _______________________
8. _______________________
9. _______________________
10. _______________________
HowDiverseisYourNetwork?
Oppositegender?
Oppositegender?
Differentfunctionofyourcompany?
Oppositegender?
Differentindustry?
Oppositegender?
Differentindustry?
Differentnationality?(grewupinadifferent
country).
Oppositegender?
Differentindustry?
country).
Differentagegroup?
Oppositegender?
Differentindustry?
country).
Differentagegroup?
Differentsocioeconomicgroup?
Networking
What:
Activelyseek
diverseideas.
Why:
Gainanew
perspective.
BuildingYour
Networkingskills:
BuildingYour
Networkingskills:
1.Tapexperts.Whoelsehas
solvedaproblemlikethis
before?
BuildingYour
Networkingskills:
before?
2.Attendnetworkingevents
andsetagoaltotalktoasmany
peopleaspossible.
BuildingYour
Networkingskills:
before?
2.Attendnetworkingevents
andsetagoaltotalktoasmany
peopleaspossible.
3.Formorjoinanetworking
group.
Experimenting
What:
Testideas.
Seeknew
experiences.
Takethingsapart.
Why:
Learnfromnew
experiences,pilots
andprototypes.
Experimenting
Oneofthethingsweve
triedtodoatAmazonis
reducethecostofconducting
experiments. Ifyoucan
increasethenumberof
experiments youtryfrom100
to1,000,you dramatically
increasetheinnovations you
JeffBezos produce.
Founder,Amazon.com
What is a prototype?

Prototypeshavemanynames.
Comp Design
Rough
Blueprint Trial
Beta
Alpha
Visual
Test
Mockup
Working Model
Pilot

Prototypeshavemanynames. and come in many shapes and sizes
Comp Design
Rough
Blueprint Trial CAD Models Ad Mock-Ups
Beta Sketches
Alpha
Visual Virtual Markets
Test Drawings
Hardware
Mockup
Working Model Simulations
Pilot
Websites Integrated
Physical Models Systems

Prototypeshavemanynames. and come in many shapes and sizes
Comp Design
Rough
Blueprint Trial CAD Models Ad Mock-Ups
Beta Sketches
Alpha
Visual Virtual Markets
Test Drawings
Hardware
Mockup
Working Model Simulations
Pilot
Websites Integrated
Physical Models Systems
Common Definition: Anything visible and tangible that lets us explore,

experience, evaluate and push forward an idea
ExperimentingLessons
Planning
Youcantplanyourwaytosuccesswhenthereisa
highdegreeofmarketrisk(willtheywantit?)and
technologicalrisk(canwemakeit?)
Planning
Quicklytestassumptionswithprototypes
UseA/Bprototypesanditerationtolearn your
waytosuccess
Planning
Quicklytestassumptionswithprototypes
UseA/Bprototypesanditerationtolearn your
waytosuccess
Experimentingisthebestwaytoanswera
whatifquestion
Sometimesthereisnoquestion,observation,or
conversationthatcanrevealthefuture.
Experimentingis
Experimentingis
Learningnewskills
Experimentingis
Learningnewskills
Takingapartproducts,ideas,
processes.
Experimentingis
Learningnewskills
Takingapartproducts,ideas,
processes.
Pilotingideastotest
hypotheses...toanswer
questionsyoucannotthrough
observingornetworking.
DiscoveryBehaviorsFeedAssociating
Think
Creative
Idea
Fourbehaviors
questioning,observing,
networking, experimenting
turbochargecreativethinking.
Take Calculated Risks
Ifwepullthis
off,welleat
likekings.

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The Innovator's DNA:

Mastering the Five Skills of Disruptive Innovators

Jeff Dyer, Professor of Strategy at Brigham

SEPTEMBER 11, 2014

Copyright 2013 Innovators DNA LLC 8

Copyright 2013 Innovators DNA LLC 9

Novel and Successfully

Copyright 2013 Innovators DNA LLC 10

Novel and Successfully

Copyright 2013 Innovators DNA LLC 11

Novel and Successfully

Copyright 2013 Innovators DNA LLC 12

Novel and Successfully

Copyright 2013 Innovators DNA LLC 13

Novel and Successfully

Copyright 2013 Innovators DNA LLC 14

Novel and Successfully

Copyright 2013 Innovators DNA LLC 15

Novel and Successfully

Copyright 2013 Innovators DNA LLC 16

Novel and Successfully

Copyright 2013 Innovators DNA LLC 17

Novel and Successfully

Copyright 2013 Innovators DNA LLC 18

Copyright 2013 Innovators DNA LLC 96

Copyright 2013 Innovators DNA LLC 97

Look for jobs that are important, unmet, and widely-held

Twice as Likely to Innovate

Copyright 2013 Innovators DNA LLC 133

Copyright 2013 Innovators DNA LLC 134

Prototypeshavemanynames. and come in many shapes and sizes

Copyright 2013 Innovators DNA LLC 135

Prototypeshavemanynames. and come in many shapes and sizes

Common Definition: Anything visible and tangible that lets us explore,

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