Index
Africa, 33
agent-agent problem, 168
Alcon Laboratories, 147–148
allowable costs, 128
Arrow.com, 114–115
asset depreciation, 164–165
assumptions about new ventures, 127–131, 135–137
checklist, 135–136, 138–140, 170
testing, 131, 136–137, 140–142
AT&T Worldnet, 113–114
banking, 152–153
batch size, in product development, 89–91
biotechnology, 104
BMW, 16
breakthrough innovations, 30
capital assets, 164–165
cash flow predictions, 161
Cemex, 110
charter schools, 112
collaboration
culture of, 123–124
for innovation, 11–25
communication, 115–117
competition, global, 33
competitive advantage, 63, 75–79
computers, 153
control boards, 93
Cook, Scott, 1–5
corporate culture, 117–118
corporate reporting systems, 146–147
cross-functional teams, 122, 123
culture
clashes, 114
of collaboration, 123–124
corporate, 117–118
of innovation, 118–119
customer-centered innovation, 43–58
customer jobs, 43–58
demographic changes, as sources of innovation, 147, 150–151, 154
design-driven innovation, 1–10
Design for Delight (D4D) program, at Intuit, 2–10
design simplicity, 94–96
developed countries, 31
developing countries. See emerging economies
development plans, 91–92
digital era, 102
discounted cash flow (DCF), 157–161
discovery-driven planning, 125–126, 131–142, 170–171
Disney, Walt, 95
Donaldson, Lufkin & Jenrette, 146, 149
earnings per share, 157–158, 165–168
economies of scale, 89
emerging economies, 27, 28, 30–31
growth in, 31–33
innovation in, 30–31
local growth team (LGT) model in, 38–42
multinational corporations in, 27–42
entrepreneurship, 143, 145–146, 156
Euro Disney, 126–130
“fail early, fail often” approach, 97–99
failure
learning from, 97–99
risk of, 125
feature creep, 94–96
FedEx, 130
financial-analysis tools, 157–168
financial innovations, 102
First Community Bank (FCB), 111–112, 123
flexibility, 119–121
Ford Motor Company, 145–146
funding models, 119–120
Gap, 116
GE Healthcare, 34–41
General Electric (GE), 27–42, 102–103
Gillette, 119
global information age, 101
health care, 31, 34–38, 149–150
holding costs, 90
Honeywell, 115–116
IBM, 101–103, 119, 120, 123–124, 144
implicit assumptions about new ventures, 127–131
incongruities, as sources of innovation, 146, 147–148
incremental innovation, 59, 61, 65, 119
industry changes, as sources of innovation, 146, 149–150
information age, 101
information technology, 99–102
innovation
breakthrough, 30
catalysts, 1–10
customer-centered, 43–58
design-driven, 1–10
discipline of, 143–156
in emerging economies, 30–42
financial, 102
financial killers of, 157–171
at GE, 27–42
lessons from, 108–109
opportunities for, 53, 57–58, 154–155
partnerships for, 11–25
principles of, 154–156
process, 102
processes that support, 168–171
reception of, 116
remedies, 118–124
reverse, 27–42
risk and reward assessment for, 59–81
R-W-W screen for, 60–62, 68–81
sources of, 144–154
waves of, 101–106
zero-based, 39–40
innovation pyramid, 108, 118–119
innovation teams, 11–25, 121–123
insiders, on innovation teams, 18–19
interpersonal skills, 115, 123–124
Intuit, 1–10
iterative development, 97–99
job mapping, 43–58
Kao Corporation, 132–142
key assumptions checklist, 131, 135–136, 138–140
knowledge-based innovations, 147, 152–154
leaders, innovation, 21–25, 105
leadership skills, 123–124
lean manufacturing, 89
Little’s Law, 92–93
local growth team (LGT) model, 38–42
Lucent Technologies, 13, 17, 18
mainstream business, connections between innovators and, 11–25, 121–123
management, 78
management flexibility, 119–121
market, for new product, 62, 71–72
market changes, as sources of innovation, 146, 149–150
market research, 78–79
milestone planning, 129, 131, 136–137, 140–142
mistakes
avoiding, 96–97
in innovation, 103–105, 107–118
Mobile Bazaar, 8
multinational corporations
glocalization and, 27–30, 33–35
reverse innovation and, 27–42
net present value, 158–161
Net Promoter Score, 1–2, 3, 8, 10
new-product failures, 75
new ventures, planning for, 125–142
Nucor, 162–164
Ocean Spray, 109–110
ongoing operations, innovation teams and, 11–25, 121–123
opportunities, for innovation, 53, 57–58, 144–155
organic growth, 102–103
organizational structures, 122
original equipment manufacturers (OEMs), 132
outsiders, and positive effect on innovation team, 19
“painstorm,” at Intuit, 3, 5–9
Parmenides’ Fallacy, 160
partnerships, for innovation, 11–25, 121–123
PeerMonitor, 25
perceptual changes, as sources of innovation, 147, 151–152
performance engine, 12, 15–18, 21, 24–25
performance reviews, 111
planning
discovery-driven, 125–126, 131–142, 170–171
milestones, 129, 131, 136–137, 140–142
platform-based, 125–131
planning and control systems, 119–121
platform-based planning, 125–131
portfolio review team, 61
present value, 158
price-performance paradigm, 33
pricing decisions, 127–128
principal-agent theory, 166–168
privatization, 102
problem definition, 94–95
process innovation, 102
process mistakes, 104, 111–112
process needs, as sources of innovation, 146, 149
Procter & Gamble (P&G), 107, 110
product concept, 71–74
product development
adding features in, 94–96
batch size in, 89–91
capacity buffer in, 88
“fail early, fail often” approach to, 97–99
first-time success in, 96–97
myths of, 83–100
process remedy for, 119–121
requirements changes during, 91–92
resource utilization in, 84, 88
time management in, 92–94
variability of, 84–86
work-in-process inventory in, 87–89
product development teams, 115–116
product innovations
resource utilization in, 86
R-W-W screening of, 68–81
value of, 79–81
profitability, 63, 79–80, 128, 133
pro forma operations specs, 131, 134–135, 138–140
project screening teams, 70
Quaker Oats, 109
queues, of projects, 86–87, 89
relationships, importance of, on innovation teams, 115–117, 123
resource conflicts, 23–24
resource utilization, in product development, 84, 86, 88
restructuring, 102
reverse income statement, 131, 133–134, 136, 138, 170
reverse innovation, 27–42
risk assessment, 60–68
risk matrix, 60–68
R-W-W screen, 60, 61–63, 68–81
Seagate Technology, 117–118, 122
shareholder value, 102, 157–158, 166
simplicity, in design, 94–96, 155
skills mistakes in innovation, 105, 115–118
remedy for, 123–124
software testing, 90–91
solutions, as separate from jobs consumers want done, 48
stage-gate innovation, 169–170, 171
stock prices, 166–167
strategy mistakes in innovation, 104, 107–110
remedy for, 118–119
structure mistakes in innovation, 104–105, 112–115
remedy for, 121–123
sustainability issues, 30
teams
cross-functional, 122
innovation, 11–25
Time Warner, 107
total quality management, 102
transaction costs, 90
troubleshooting, 57
TurboTax, 10
ultrasound machine, compact, 37–41
unexpected occurrences, as sources of innovation, 144–147
U.S. Steel, 162–164
venture capital, 106
Walt Disney Company, 126–131
West (publishing house), 13–17, 19–20, 24–25
Williams-Sonoma, 122–123
work-in-process control board, 93
work-in-process inventory, 87–89
World Community Grid, 103, 123
World Wide Web, 102
zero-based innovation, 39–40