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© 2016, H. Del Castillo. All Rights Reserved. www.hmdelcastillo.com
BoldPM Hector Del Castillo
Managing Director
BoldPM
ASQ Baltimore Dinner Meeting
Tuesday, Sep 13, 2016
© 2016, BoldPM, Creative Commons Attribution License, Approved for non-commercial use with
attribution. Commercial use is prohibited.
Critical Factors For Achieving
Growth Through Innovation7
© 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
Thanks everyone who attended this meeting. It was a
pleasure and honor to have the opportunity to lead this
discussion.
If you like this content, be sure to like it and share it with
others.
Interested in bringing this topic to your community?
Contact me and let me know how I can help you.
© 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
Special Thanks
Baltimore
Section
© 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
Use: #businessgrowth #innovation
Follow: @ASQBaltimore @BoldPMG
Tweet
© 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
“Innovation distinguishes
between a leader and a
follower”
- Steve Jobs
© 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
What is the biggest barrier for innovation
within your company?
• Poor management
• Insufficient investment
• Lack of innovative people
• Inadequate planning
• Cannot afford the risk
© 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
What We Will Discuss
1. Why You Need an Innovation Strategy
2. The Path to Business Growth
3. Tips for Fostering Innovation
4. Key Takeaways
5. Q & A
© 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
WHY YOU NEED AN INNOVATION
STRATEGY
© 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
Benefits of Innovation
Increased
value for
customers
Improved
profitability for
your company
Value of Innovation
The “best” (top 25%) companies with an innovation
process compared to the “worse” (bottom 25%)
companies
Source: Edgett, 2011
Metric Best Worse
% revenue from new products 36.3 10
% of profits from new products 30.5 10
% of commercial successes 70 35
% of project on time 70 20
% of projects on budget 81 40
% meeting profit, sales, and market-share objectives 70 approx 30 approx
© 2016, H. Del Castillo. All Rights Reserved. www.hmdelcastillo.com
The importance of innovation
Innovation is a competitive necessity
67% of the most innovative companies agree
vs.
19% of the least innovative companies agree
Source: 2015 Global Innovation Survey: Innovation, Growth and Business Strategy, PWC
© 2016, H. Del Castillo. All Rights Reserved. www.hmdelcastillo.com
The rewards of innovation done right
The most innovative companies are growing at
a much faster rate over the next 5 years:
62.2%vs. 20.7%
Source: 2015 Global Innovation Survey: Innovation, Growth and Business Strategy, PWC
© 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
Types of Innovation
ProblemDefinition
WellDefined
Breakthrough
Innovation
Incremental
Innovation
NotWellDefined
Basic
Research
Disruptive
Innovation
Not Well Defined Well Defined
Domain Definition
© 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
Where can innovation happen?
•Technology •Methodologies
•Packaging •Operations
•Tools •Distribution
•Product Design •Business Models
•Production •Pricing
•Processes •Marketing
© 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
Successful innovators bring clarity
to a process often described as
fuzzy and vague.
Source: Booz & Co, 2011 Global Innovation 1000 Study Winter 2012.
© 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
Innovation Funnel
• Generate
• Explore
• Analyze
• Synthesize
• Test
• Plan
• Implement
Ideas
Outcomes
Source: © 1998-2013, AIPMM, All Rights Reserved.
© 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
Innovation Process
© 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
THE PATH TO BUSINESS GROWTH
THROUGH INNOVATION
The path to growth requires a strategy
1. Implement an innovation process
Success
Seeking
Truth
Seeking
Source: © 1998-2016, AIPMM ProdBOK , All Rights Reserved.
Adopt a Playbook
Devise it for execution
pecificS
easurableM
ttainableA
elevantR
ime-BoundT
valuateE
eadjustR
The path to growth requires teamwork
2. Build and nurture a great team
Build a talent portfolio
Cultivate the right culture
The path to growth requires astute
problem solving
© 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
3. Solve the right market problem
“We cannot solve our
problems with the same
thinking we used when we
created them.”
-Albert Einstein
4. Test your business model
Source: Alexander Osterwalder & Yves Pigneur, “Business Model Generation” 2009.
Define your unique value proposition
Customers
Your BusinessCollaborators
Unique Value
Proposition
Source: Alexander Chernev, Strategic Marketing Management, 2012, 6th Edition
5. Focus on customer management
Source: “Why The Lean Startup Changes Everything,” Steve Blank, HBR, May 2013
Understand buyer behavior
Minimum Viable Product?Target Customer
Core
Actual
Whole
Why buy?
What to buy?
What price?
How often?
Orchestrate value creation
Source: “Why The Lean Startup Changes Everything,” Steve Blank, HBR, May 2013
Adopt a learning process
Build
MeasureLearn
Source: Eric Ries, “The Lean Startup”
Fail fast, fail quickly, fail forward
Fail
Forward
State your
assumptions
Learn from
mistakes
Test your
assumptions
Pivot when
needed
The path to growth must be fact-based
7. Benchmark your performance
Performance
Benchmarking
Best Practice
Benchmarking
Balanced
Benchmarking
Know your competitive landscape
Use metrics to persevere or pivot
© 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
TIPS FOR FOSTERING INNOVATION
© 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
© 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
© 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
© 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
© 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
© 2016, H. Del Castillo. All Rights Reserved. www.hmdelcastillo.com
Pitfalls To Avoid
• Not clearly defining your innovation process
• Focusing on features instead of the whole product
• Burning out your product team seeking to achieve MVP too
quickly
• Failing to benchmark to identify relevant success metrics
• Skimping on product architecture
• Lack of rewards for everyone who helped your company
succeed
Key Takeaways
• Implement an innovation process1
• Build and nurture a great team2
• Solve the right market problem3
• Test your business model4
• Focus on customer management5
• Develop quickly and responsibly6
• Benchmark your performance7
For Further Reading
• “You Need An Innovation Strategy,” Harvard Business Review, June 2015
• “Reinventing Your Business Model,“ by Mark W. Johnson, et. al., Harvard
Business Review, Dec 2008
• “Why The Lean Startup Changes Everything,” by Steve Blank, Harvard
Business Review, May 2013
• “Why Great Products Fail,” Hector Del Castillo, Linkedln Pulse, March
2016
• “Why Great New Products Fail,” MITSloan Review, March 2016
Currently fundraising for the 2017 Project
Management Day of Service (PMDoS)
See the PM4C Table to make a
$17 Credit Card donation via the
PM4C DipJar
DONATE ONLINE !
https://web.charityengine.net/default.aspx?tsid=3920
ASQ Baltimore Section 502
Peer-to-Peer Fundraising Page
Coming soon!
Upcoming Courses
Course & Location Dates Time
Certified Product Manager® Prep Course
Launch Workplaces, Tysons, VA Dec 5-6, 2016 8:30 am – 5 pm
Certified Product Marketing Manager®
Prep Course
Launch Workplaces, Tysons, VA
Dec 7-8, 2016 8:30 am – 5 pm
Contact Cynthia Petti at cynthia@280group.com for more information.
Upcoming Courses
Please your questions and comments to Hector at hector@boldpm.com.
From Project Manager to Project Leader
Learn advanced technical skills plus soft skills, corporate culture and
attitude check as applied to leadership, increasing production,
recruitment and retention.
$50 discount
code for PMI =
PMIhmd8
Building Your Team Making Up Lost Production
Dealing With Conflict The Right Tools for the Job
Guarding Against Scope Creep Cost/Schedule Integration
Project Management Business Administration
Understanding the bigger picture adds value when you make project-
level decisions. Covers risk avoidance, the cost of money, project vs
company budgets and long-range corporate goals.
December
9
Pre-bid and Close Out Strategies Business Development
Strategic Planning Hidden Corporate Costs
Claims Mitigation Human Resource Issues
September
29
Gaithersburg, 09/29/16. 8 PDU (leadership)
http://bit.ly/pm2pl0916
Gaithersburg, 12/09/16. 8 PDU (strategy)
http://bit.ly/pmba1216
Hector Del Castillo, CPM, CPMM
Managing Director, BoldPM
hector@boldpm.com
linkd.in/hdelcastillo
@hmdelcastillo
For More …
Upcoming Webcasts
Webcasts that inspire executives, entrepreneurs and
leaders to grow their businesses.
9 Things Exceptional Project Leaders Do Differently
Thu, Sep 22nd, 2016, 1:00 - 2:00 p.m. EDT
Speaker: Hector Del Castillo, BoldPM
bit.ly/boldpmwebcasts

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7 Critical Factors For Achieving Business Growth

  • 1. © 2016, H. Del Castillo. All Rights Reserved. www.hmdelcastillo.com BoldPM Hector Del Castillo Managing Director BoldPM ASQ Baltimore Dinner Meeting Tuesday, Sep 13, 2016 © 2016, BoldPM, Creative Commons Attribution License, Approved for non-commercial use with attribution. Commercial use is prohibited. Critical Factors For Achieving Growth Through Innovation7
  • 2. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com Thanks everyone who attended this meeting. It was a pleasure and honor to have the opportunity to lead this discussion. If you like this content, be sure to like it and share it with others. Interested in bringing this topic to your community? Contact me and let me know how I can help you.
  • 3. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com Special Thanks Baltimore Section
  • 4. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com Use: #businessgrowth #innovation Follow: @ASQBaltimore @BoldPMG Tweet
  • 5. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
  • 6. “Innovation distinguishes between a leader and a follower” - Steve Jobs
  • 7. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com What is the biggest barrier for innovation within your company? • Poor management • Insufficient investment • Lack of innovative people • Inadequate planning • Cannot afford the risk
  • 8. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com What We Will Discuss 1. Why You Need an Innovation Strategy 2. The Path to Business Growth 3. Tips for Fostering Innovation 4. Key Takeaways 5. Q & A
  • 9. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com WHY YOU NEED AN INNOVATION STRATEGY
  • 10. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com Benefits of Innovation Increased value for customers Improved profitability for your company
  • 11. Value of Innovation The “best” (top 25%) companies with an innovation process compared to the “worse” (bottom 25%) companies Source: Edgett, 2011 Metric Best Worse % revenue from new products 36.3 10 % of profits from new products 30.5 10 % of commercial successes 70 35 % of project on time 70 20 % of projects on budget 81 40 % meeting profit, sales, and market-share objectives 70 approx 30 approx
  • 12. © 2016, H. Del Castillo. All Rights Reserved. www.hmdelcastillo.com The importance of innovation Innovation is a competitive necessity 67% of the most innovative companies agree vs. 19% of the least innovative companies agree Source: 2015 Global Innovation Survey: Innovation, Growth and Business Strategy, PWC
  • 13. © 2016, H. Del Castillo. All Rights Reserved. www.hmdelcastillo.com The rewards of innovation done right The most innovative companies are growing at a much faster rate over the next 5 years: 62.2%vs. 20.7% Source: 2015 Global Innovation Survey: Innovation, Growth and Business Strategy, PWC
  • 14. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com Types of Innovation ProblemDefinition WellDefined Breakthrough Innovation Incremental Innovation NotWellDefined Basic Research Disruptive Innovation Not Well Defined Well Defined Domain Definition
  • 15. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com Where can innovation happen? •Technology •Methodologies •Packaging •Operations •Tools •Distribution •Product Design •Business Models •Production •Pricing •Processes •Marketing
  • 16. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com Successful innovators bring clarity to a process often described as fuzzy and vague. Source: Booz & Co, 2011 Global Innovation 1000 Study Winter 2012.
  • 17. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com Innovation Funnel • Generate • Explore • Analyze • Synthesize • Test • Plan • Implement Ideas Outcomes Source: © 1998-2013, AIPMM, All Rights Reserved.
  • 18. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com Innovation Process
  • 19. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com THE PATH TO BUSINESS GROWTH THROUGH INNOVATION
  • 20. The path to growth requires a strategy
  • 21. 1. Implement an innovation process Success Seeking Truth Seeking Source: © 1998-2016, AIPMM ProdBOK , All Rights Reserved.
  • 23. Devise it for execution pecificS easurableM ttainableA elevantR ime-BoundT valuateE eadjustR
  • 24. The path to growth requires teamwork
  • 25. 2. Build and nurture a great team
  • 26. Build a talent portfolio
  • 28. The path to growth requires astute problem solving
  • 29. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com 3. Solve the right market problem
  • 30. “We cannot solve our problems with the same thinking we used when we created them.” -Albert Einstein
  • 31.
  • 32.
  • 33. 4. Test your business model Source: Alexander Osterwalder & Yves Pigneur, “Business Model Generation” 2009.
  • 34.
  • 35. Define your unique value proposition Customers Your BusinessCollaborators Unique Value Proposition Source: Alexander Chernev, Strategic Marketing Management, 2012, 6th Edition
  • 36.
  • 37. 5. Focus on customer management Source: “Why The Lean Startup Changes Everything,” Steve Blank, HBR, May 2013
  • 38. Understand buyer behavior Minimum Viable Product?Target Customer Core Actual Whole Why buy? What to buy? What price? How often?
  • 40.
  • 41. Source: “Why The Lean Startup Changes Everything,” Steve Blank, HBR, May 2013
  • 42. Adopt a learning process Build MeasureLearn Source: Eric Ries, “The Lean Startup”
  • 43. Fail fast, fail quickly, fail forward Fail Forward State your assumptions Learn from mistakes Test your assumptions Pivot when needed
  • 44. The path to growth must be fact-based
  • 45. 7. Benchmark your performance Performance Benchmarking Best Practice Benchmarking Balanced Benchmarking
  • 47. Use metrics to persevere or pivot
  • 48. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com TIPS FOR FOSTERING INNOVATION
  • 49. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
  • 50. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
  • 51. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
  • 52. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
  • 53. © 2016 Hector Del Castillo, Creative Commons Attribution License www.hmdelcastillo.com
  • 54. © 2016, H. Del Castillo. All Rights Reserved. www.hmdelcastillo.com Pitfalls To Avoid • Not clearly defining your innovation process • Focusing on features instead of the whole product • Burning out your product team seeking to achieve MVP too quickly • Failing to benchmark to identify relevant success metrics • Skimping on product architecture • Lack of rewards for everyone who helped your company succeed
  • 55. Key Takeaways • Implement an innovation process1 • Build and nurture a great team2 • Solve the right market problem3 • Test your business model4 • Focus on customer management5 • Develop quickly and responsibly6 • Benchmark your performance7
  • 56. For Further Reading • “You Need An Innovation Strategy,” Harvard Business Review, June 2015 • “Reinventing Your Business Model,“ by Mark W. Johnson, et. al., Harvard Business Review, Dec 2008 • “Why The Lean Startup Changes Everything,” by Steve Blank, Harvard Business Review, May 2013 • “Why Great Products Fail,” Hector Del Castillo, Linkedln Pulse, March 2016 • “Why Great New Products Fail,” MITSloan Review, March 2016
  • 57. Currently fundraising for the 2017 Project Management Day of Service (PMDoS) See the PM4C Table to make a $17 Credit Card donation via the PM4C DipJar DONATE ONLINE ! https://web.charityengine.net/default.aspx?tsid=3920 ASQ Baltimore Section 502 Peer-to-Peer Fundraising Page Coming soon!
  • 58. Upcoming Courses Course & Location Dates Time Certified Product Manager® Prep Course Launch Workplaces, Tysons, VA Dec 5-6, 2016 8:30 am – 5 pm Certified Product Marketing Manager® Prep Course Launch Workplaces, Tysons, VA Dec 7-8, 2016 8:30 am – 5 pm Contact Cynthia Petti at cynthia@280group.com for more information.
  • 59. Upcoming Courses Please your questions and comments to Hector at hector@boldpm.com. From Project Manager to Project Leader Learn advanced technical skills plus soft skills, corporate culture and attitude check as applied to leadership, increasing production, recruitment and retention. $50 discount code for PMI = PMIhmd8 Building Your Team Making Up Lost Production Dealing With Conflict The Right Tools for the Job Guarding Against Scope Creep Cost/Schedule Integration Project Management Business Administration Understanding the bigger picture adds value when you make project- level decisions. Covers risk avoidance, the cost of money, project vs company budgets and long-range corporate goals. December 9 Pre-bid and Close Out Strategies Business Development Strategic Planning Hidden Corporate Costs Claims Mitigation Human Resource Issues September 29 Gaithersburg, 09/29/16. 8 PDU (leadership) http://bit.ly/pm2pl0916 Gaithersburg, 12/09/16. 8 PDU (strategy) http://bit.ly/pmba1216
  • 60. Hector Del Castillo, CPM, CPMM Managing Director, BoldPM hector@boldpm.com linkd.in/hdelcastillo @hmdelcastillo For More …
  • 61. Upcoming Webcasts Webcasts that inspire executives, entrepreneurs and leaders to grow their businesses. 9 Things Exceptional Project Leaders Do Differently Thu, Sep 22nd, 2016, 1:00 - 2:00 p.m. EDT Speaker: Hector Del Castillo, BoldPM bit.ly/boldpmwebcasts