Archive for November, 2014

Amway Discovers the Right Open Innovation Process for Market and Business Performance

November 30, 2014 Cheryl Perkins No Comments » CoDev

At CoDev 2015, Ron Sharpe, an Amway Research Fellow, will discuss his organization’s journey in creating their “Discovery” process which strives to find the intersection of a known consumer need, a viable technology and a business case to create a successful product for the company.

12 interesting stats about shopping on Cyber Monday

November 30, 2014 Cheryl Perkins No Comments » Financial Trends

Add to Cart free photoCyber Monday is tomorrow, and it’s the biggest shopping day of the year for those who would rather not battle the early long lines and the hype of Black Friday.

I saw this list of interesting facts about Cyber Shopping and thought I would share:

1. More than 4 percent of Americans admit that they have made an online purchase (via mobile device) while at a social gathering.

2. 78 percent of shoppers use the internet to purchase or research future purchases every year.

3. Amazon is the most popular online store earning more than 48 billion in the U.S each year.

4. Last year was the biggest Cyber Monday yet, hitting $1.7 billion in online spending. That’s a 17% year-over-year increase.

5. Cyber Monday is social too – Last year on Facebook, referral traffic for top retailers spiked 240% compared to other average Mondays.

6. In the past, the average amount spent online per person over Thanksgiving weekend was $172.42. Not too shabby. But the average online shopper spent $194.46 on Monday, nearly 13% higher.

7. Previously, the average number of items per order on Cyber Monday was 8.3. compared to Black Friday, which was 5.6.

8. If you think shopping holidays are geared towards women, you’re wrong. According to a survery, men (43%) actually claim to shop online during Cyber Monday more than women (39%).

9. On a typical day, online sales peak at 11:25 AM EST.

10. Top products purchased online include apparel (31%), books/DVDs/video games (28%) and consumer electronics (25%).

11. Research estimates that the U.S. retail industry will be worth $279 billion in 2015.

12. On Amazon’s peak day, the retail giants sells up so 320 products per second.


New Era of Healthcare Highlights Need for Partnerships to Overcome the Value Gap

November 27, 2014 Cheryl Perkins No Comments » CoDev

Over on our CoDev blog, we’re adding content that will help propel your innovation efforts by seeing trends and best practices from leaders who are taking their Open Innovation models to the next step:

Changing “Made in China”: Will it make a difference?

November 25, 2014 Cheryl Perkins No Comments » Innovation

I think this is extremely interesting for those who follow retail and manufacturing trends.

It’s a problem of innovation that has bedevilled numerous Chinese industries, but in particular its automotive companies, which have struggled with quality, consumer trust and an inability to compete with the imaginations of more developed countries.

Innovation Quick Tips for fast ideas

November 21, 2014 Cheryl Perkins No Comments » CoDev

This is a first in a series.
Take a moment and check it out:

Flashback to CoDev 2014

November 19, 2014 Cheryl Perkins No Comments » CoDev

The New Open Innovation Game Plan – Business Models, Culture, and Risk, Oh My!

November 13, 2014 Cheryl Perkins No Comments » Be my guest!

I am excited to participate in edifying conversations about innovation, and this interview looks ahead to how the innovation techniques and models are changing:

A Candid Interview with Cheryl Perkins

by Jackie Cooper, Management Roundtable

Cheryl Perkins, CoDev Chair & President, Innovationedge

I had the pleasure this week of chatting with Cheryl Perkins, Founder and CEO of Innovationedge (Neenah, WI), an innovation consultancy that helps drive creativity and growth at companies around the world.  Previously Senior Vice President and Chief Innovation Officer for Kimberly-Clark, she has particular expertise in the Consumer Packaged Goods (CPG), Food, and Healthcare industries.  Cheryl is chairing the upcoming CoDev 2015 Conference, the leading forum on Open Innovation, this February in Scottsdale, Arizona.

In a nutshell, Cheryl is to Open Innovation what Vince Lombardi is to football.  While she didn’t exactly invent the game, she has a distinct playbook and coaches teams to win. She advocates for openly innovating at the corporate strategic level — and makes a point to distinguish that OI is different than innovation in general.

Since the word ‘innovation’ is overused to the point of near meaninglessness, I wanted to know what about Open Innovation is important and different, and who in her opinion is doing it well.  Our conversation ranged from business models to the best ways to gain customer acceptance and trust.  On a practical implementation level, she shared advice about roles, responsibilities, and performance indicators/metrics.

Starting from the top:

JC: “Open Innovation” as originally defined by Henry Chesbrough (back in 2003), has clearly evolved and changed over the years.  When you refer to OI, what is your definition? 

CP: Early on Chesbrough’s definition was academic; it referred to the flow of knowledge, technology and IT.  Now I see it as about capability: Knowledge, technology, marketing, business models, procurement, HR…Today, the critical capabilities to develop are beyond R&D.  OI today involves a complete end-to-end business model with strategy, governance, culture, structure, process, enabling tools and a few of the right metrics.

JC:  Who is doing the ‘new OI’ well, and what are the key success factors?

CP: Philips, Clorox, Lego, P&G and Pfizer come to mind. They are all doing a good job addressing multi-unit needs. The first four are somewhat higher up in their maturity* level as they have been at it longer (*see Innovationedge’s Maturity Model, below), but Pfizer is making fast steady progress. The key success factors as I see them are: 1. Alignment among leadership with a common definition of what open innovation is and what is to be achieved 2. Enablers – process pieces, strategy. Are you looking for new revenue in the same or new spaces? 3. Keeping the team small at first, business leader sponsorship, and early cross-functional involvement including R&D, Marketing, Supply Chain, Procurement and Legal and quick wins to create pull. 4. Having the right resources with the right skills in the right places.  It is not just about technical skills and experiences.  These resources need to be business savvy and have very good soft skills such as influence, persistence, curiosity, resilience and story-telling capability.

Click image above to enlarge.

JC:  You mentioned that OI now involves a complete end-to-end business model with the right KPIs and metrics.  What are the right KPIs? Are they different than before?

CP: The top 3 are: 1) significant shift in portfolio from just internal programs to a blend of internal and external driven programs, 2) how many resources have been deployed to deliver OI, including numbers of executive sponsors involved, and 3) how much revenue is being generated from externally driven programs. Key Performance Indicators have also advanced from just financial to include behavioral metrics about how teams function. These metrics are increasingly important as OI relationships have expanded from single to multiple partnerships.

JC: All too often partnerships don’t live up to their promise and many fail altogether.  With the added complexity of multiple partnerships and expanded ecosystems, what advice would you give? Are there red flags to look for early on?

CP: Go slow to go fast. Determine what each partner brings to the table and what each needs.  Do it company by company…Company A owns this, needs this…Company B owns this, needs this…and so on. Then figure out who is bringing what and what they will own. You definitely need milestone checkpoints. One bright red flag is not taking into account the impact of culture. There are a lot of issues around acceptance, NIH, innovation fatigue.  If culture isn’t ready, efforts will fail.  Culture and leadership must be ready to take the risk.

JC:  Speaking of acceptance and culture, wouldn’t that also apply externally to customers – not just internally and with partners?  For example, when a large corporation partners with another company that has a unique or funky type of product with an intensely loyal customer base…how do you maintain customer trust while building a pipeline?

CP: Jackie, I think we will be seeing more and more acquisitions and even more competitors coming together (‘co-opetition’) to leverage their joint competencies and exploit new growth opportunities.  Sometimes a separate JV even needs to be formed to make the model work. For example, Glad, a JV between P&G and Clorox, is extremely successful and is standing the test of time.

In all these situations, clearly defined strategy and frequent communications is essential. Knowing what to reveal, what not.  You need to preserve the culture of the acquired company or companies that are partnering together but also create new equity for the new products that customers love – and you need early successes and early wins.  Proof of concept is everything.

JC: What else about culture should leaders be aware of?

CP: The last piece about culture that is a big enabler is having facilitators / integrators with soft skills. The best leaders have a set of soft skills and can nurture relationships, not just the ability to scout. There needs to be a leader in each of the partnering companies, whether small or large, with these skills. Every organization also needs a Finder and a Catcher. The same person often can’t do both. The Finder is responsible for uncovering opportunities. The Catcher executes and runs with those opportunities to make them a reality.

JC: Overall what are the biggest trends you see — where is OI going? 

CP:  As for where OI is going — companies are spinning off, forming new JVs and focusing on their core. They are right-sizing their capabilities — knowing what they’re good at, what not.  We’re seeing more Enterprise-wide OI where the Board and CEO are involved and openly innovating with their teams and external partners. These leaders are at Level 3 in the Maturity Model in terms of strategy, culture, processes and skills. We are at the start of a new era — expect to see more new business model creation as OI continues to evolve at the corporate level.

Cheryl Perkins is chair of CoDev 2015. Check out CoDev2015: Launching Products and Businesses with Partners, Customers & Ecosystems, to be held February 9 – 11, 2015 in Scottsdale, AZ.

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Measuring your Open Innovation Strategy

November 3, 2014 Cheryl Perkins No Comments » CoDev

Tape-Free-Images-on-PixabayOpen innovation is the go-to strategy of the decade! As leaders try to be more innovative in the workplace, they look to external partners, universities and their networks to meet their growing demands for innovation across all areas of their business.

I believe that open innovation is the strategy that will determine whether or not a business succeeds in the 21st century.  Open Innovation in its simplest form is the introduction of something new that will create economic value by leveraging someone else’s capabilities. Open Innovation is not a goal—it’s a mechanism and enabler to achieve a business goal, and it goes beyond a company’s capabilities, products and services. It can be about a company leveraging an externally driven business model or processes, how it taps a partner to engage with customers and services its brands. So open innovation is not just about the what, it’s about the how—how entrepreneurs or corporations or universities leverage partnerships and/or networks to deliver on their final product solutions.

Some people are inherently wired to think beyond their own brick and mortar to find innovation, but that mode of thinking also can be encouraged. An organization that wants to encourage open innovation needs to focus on two things: creating the right culture and developing the right processes, which includes offering the right incentives. If an organization doesn’t reward an open culture and behavior, it won’t stimulate open innovation.

Open innovation is so important now because people are being asked to innovate with less resources both time and money.   To operate in this challenging environment, it is important that open innovation efforts start with strategy on how to create competitive advantage with their open innovation efforts.  Once defined they should create a road map to determine which important tasks they need to do this year versus next year versus the following year.  Lastly, they should get stakeholder alignment on the change process. Many times, organizations have open Innovation opportunities , but they don’t manage the change necessary with key stakeholders. They don’t provide enough communication or explain what the changes will mean to each stakeholder. An organization has to manage change from day one, or it won’t happen successfully.

A great deal of business strategies today are being built around collaborative networks, because no single company has all the smart people they needs within their own walls.  An organization might have a solid strategy for today, but if it wants to plan for the next five years or more it should find partners on the outside to deliver solutions better, faster and cheaper.

Therefore, I think the most successful OI strategies are happening around business models where companies come together to share the risk and the revenue. Come to CoDev 2015 and see for yourself how OI business model are changing the industries you work in today!

Cheryl Perkins is chair of CoDev 2015. Check out CoDev2015: Launching Products and Businesses with Partners, Customers & Ecosystems, to be held February 9 – 11, 2015 in Scottsdale, AZ.

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The Cloud’s Bright Future

November 1, 2014 Cheryl Perkins No Comments » Financial Trends

The Cloud free photo“There are expected to be 28 billion connected devices by 2020. We’ll need the computing scale that only the cloud can provide to learn from them.” I’d say that is good advice!

Via Forbes:

Cloud computing has been underestimated as a transformative force in business. And it’s just getting started.

The disruption that cloud computing has had on business is so profound that it’s hard to believe the concept came about only eight years ago, when Amazon announced a rudimentary on-demand storage service called S3. It took me another three years to truly understand the size and scope of the cloud, and why everyone from large technology companies to investors routinely underestimate its influence. That’s when I asked Werner Vogels, Amazon’s chief technology officer and the public face of Amazon Web Services, “What is the cloud?” His answer has always stayed with me. The cloud, Vogels explained, is the freedom to tinker, a license to experiment.

The arc of cloud computing can be roughly divided into three phases: experimentation, essentialness, and experience. Currently, cloud computing can rightly be considered an essential part of business, which means that its best days are still to come, as it weaves ever more into our increas­ingly connected society.

To understand how we got here and where we’re going, let’s start by assessing the experimentation era. In its earliest form, the cloud freed developers from thinking about hardware, storage, servers, and networking gear. Or, as technologists like to say, it abstracted the infrastructure. This fundamental shift in thinking allowed developers to come up with apps that took advantage of computing power as a service. Amazon Web Services helped Kevin Systrom and Mike Krieger launch and turbocharge Instagram, and it allowed Dropbox to grow from an idea into an Internet utility used by hundreds of millions of people. Our embrace of mobile tech has only accelerated cloud computing, because smartphone apps can do even more amazing things when their real power resides in the sky. Now the rising popularity of data analytics means that even more businesses are open to deploying the processing muscle that the cloud provides cheaply.

Cloud computing has changed how startups are built and companies are scaled, and now the largest enterprises are realizing its value. Why buy hardware when you can pay by the month, based on how much oomph you need? Even the CIA doesn’t want to bother with buying traditional infrastructure. Amazon provides the agency with a virtual private version of what it sells companies like Netflix and Comcast.

If the growth so far is astonishing, the big boom is yet to come, driven by the increasing presence of sensors in our world, including next-generation weather-monitoring systems and cars such as the forthcoming Tesla D. The latest iPhone 6, for example, includes a barometer to figure out how many steps you climbed. It is easy to imagine a near future in which sensors track soil conditions, climate, and humidity to manage farms. Smart garbage cans could send pings when they are full. The research firm International Data Corp. forecasts that there will be about 28 billion connected devices by 2020—and they will be a $7.1 trillion business by then.