full_printed version of 101.indd

innovation BREAKTHROUGHS
edited by Hitendra Patel and Steffen Gackstatter
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© 2000-2006 by Monitor Group. All rights reserved.
xxii
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ix
Foreword
xi
Introduction
SANIFAIR, Sanitary Facilities
Stop here — I want to use this restroom
14 Autobahn Tank & Rast
xvi Innovation Themes Across The 101s
xxi How Other People Have Used This Book
Book Vending Machines
2
Accessible and affordable books to provide a quick escape or
learning during travel or down-time
24x7 Cultural
Privacy Filters for Notebooks
Now I see it, now they don’t — my own space in a crowded place
4
3M Company
Intelligent Sports Shoe
6
A shoe that adjusts to provide the right cushion or spring
for my environment
adidas
Cutting-edge acoustics quality and artistic design for my discerning taste
16 Bang & Olufsen (B&O)
Bank of America Tower
Contributing to the environment through my bank
18 Bank of America
Mujer Banorte
A bank that makes me feel comfortable and understands my issues
20 Banorte
The Kids Hotel
Knowing my kids are fine allows me to enjoy my night out
22 Bengel & Engel
Head-Up-Display (HUD)
“Strictly No Frills” Supermarket
8
BeoSound and BeoLab Speakers
Cut the trimmings in the store, not the fat in the products
Aldi
Keeping an eye on the road while getting relevant information
24 BMW
Solar Infrastructure Project
Simpler, faster and lower cost alternative to power my community
Havaianas
A sandal that says that I am relaxed, simple yet elegant
10 Alpargatas
26 BP Solar
“Clean & Renew” System
iPod and iTunes
Customized, seamless and affordable access to entertainment
through a portable stylish device
12 Apple Computers
The feel of a brand new shaver every day
28 Braun
Water Filters
Great tasting, clean water at affordable prices
30 Brita
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Personalized Stuffed Animal
Creating my unique “best friend” as I would define him/her
32 Build-A-Bear Workshop
Spreading the Word
I trust my friends’ or family members’ judgment around products
34 BzzAgent
3D Real Time Localization System
Goal or no goal, the chip will tell us
36 Cairos Technologies
Top Brands to the Poor
Top brands at rock bottom prices paid in monthly installments
38 Casas Bahia (CB)
Patrimonio Hoy
Realizing my goal of having my own house
40 CEMEX
The Minivan
Provides space and convenience for loading and transporting
growing suburban families
42 Chrysler
Circus Theatrics
Provides entertainment of a circus and sophistication of a drama
for the whole family
44 Cirque du Soleil
Canned Beverage Packaging
Always a cold beverage in the fridge
46 Coca-Cola
Computer Direct Selling Model
Computer you want — not more, not less
48 Dell
Call-A-Bike
Rent a bike anywhere, any time
50 Deutsche Bahn
Packstation
Send and receive parcels 24 hours a day from anywhere to
everywhere
52 Deutsche Post/DHL
Dolby Noise Reduction Technology
Professional quality sound in every listening experience
54 Dolby Laboratories
Online Auction Site
Buy and sell anything you can imagine quickly and easily
56 eBay
Twin Clean
Keeping my house clean and not the tools
58 Electrolux
Regional Jets
Experiencing fast and comfortable regional travel previously
reserved only for major markets
60 Embraer
City-Home Car Rentals
They really pick me up — physically and mentally
62 Enterprise Rent-A-Car
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Networking Generation Y
Staying connected and amplifying my profile within my community
64 Facebook
Electrolyte Sports Drink
Quenches my thirst and prepares me to Go Go Go
66 Gatorade
Water Desalination Facility
From abundant unusable salt water to life-sustaining sweet water
68 GE Water & Process Technologies
Good-Looking Resins
Adding a personality and flair to functional devices
70 GE Plastics
Soil Enhancer
Growing plants in harsh environments or using less water
72 Geohumus
“Mach3” Razors
Cool handle and the anticipation of a new shaving experience
74 Gillette
Search Engine
Understands what I mean and gives back what I want
76 Google
Google Earth Mapping Service
Bringing the world to me as if I was there
78 Google
Credit for the Rural Poor
Micro-loans allow me to realize my aspirations and
also be seen as a member of society
80 Grameen Bank
Fashion Retail
Hot designer labels at affordable prices
82 H&M (Hennes & Mauritz)
Get Chauffeured In Your Own Car
Being in the back seat is better than being in the
driver seat
84 Harry Service
Affordable Personal Care
Allowing access to hygiene products that were out
of my reach
86 Hindustan Lever Limited
America’s Best Warranty
A warranty that eliminates consumer fear around
quality and defects
88 Hyundai
Self-Assembly Furniture
Affordable, attractive, easy-to-carry, and easy-toassemble furniture
90 IKEA
Offshore Global Outsourcing
Allows me to focus on my products and markets
92 Infosys
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ING Direct
A simple and accessible online bank with high interest
and no hidden fees
94 ING Group
Open R&D Platform
Matches solution seekers with problem solvers
96 InnoCentive
Intel Inside: Microprocessors
It is the microprocessor chip that is the computer
98 Intel Corporation
Second Life
My second chance to have a different life
100 Linden Lab
Open Source Operating System
A reliable open source with no designed lock-in or
lock-out
102 Linux
QuietCare
Independence and privacy with the comfort of knowing
that care-providers can help me when I need help
104 Living Independently
Flex-Fuel Technology
Options to fill the tank with gasoline, ethanol, or both
106 Magneti-Marelli
Global Sports Team
A club that embodies the will to win — that is me
108 Manchester United
iv
Service-Oriented Luxury Hotel
Service that is gracious and sincere and steeped in the values of
the orient
110 Mandarin Oriental
MerckMedicus
Accurate up-to-date unbiased medical information
112 Merck & Co.
Economies of Scale in R&D
Helps specify the focus of my research and customer
114 Millennium
Retail Clinics
Quick, affordable and convenient health care for minor ailments
116 MinuteClinic
Monster.com
More reach and structure to make me visible to them and them to
me
118 Monster
RAZR
Going back to basics — thinner is better and less is more
120 Motorola
Natura’s Door-to-Door Sales Model
It must be good — she understands me and also uses it
122 Natura
Online DVD Rental Service
Watching the movie that I want to watch when I want to watch it
124 NetFlix
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Product Placement Made Easy
Beyond the 30 second ad — product placement in other mediums
126 NextMedium
Video Game Consoles
Engaging, interactive videogames which even I can figure out
128 Nintendo Wii
The $100 Laptop
Affordable tools for students to learn on their own
130 One Laptop Per Child
Smart Spot
If it has the green spot, then it must mean that it is healthy
132 PepsiCo
Exubera, the Inhalable Insulin
New breath of life for millions of people with diabetes
134 Pfizer
Power Saving LCD Televisions
Watching TV while saving on my power bill
136 Philips
Verve Hearing System
Improved hearing to enhance my quality of life
138 Phonak
Computer Generated 3D Animation
Movies that delight my children and amaze me
140 Pixar
Remote Deposit Capture
Anti-Aging Cosmetic Patches
Smoother and healthier looking skin that provides instant gratification
144 PowerCosmetics
Mr. Clean, the Magic Eraser
The ones that make the mess can now clean it
146 Procter & Gamble
Swiffer Sweeper
Revolutionized and simplified mundane and arduous household cleaning
148 Procter & Gamble
Energy Drink
Energy to play all day and party all night
150 Red Bull
BlackBerry
Allows me to work without boundaries
152 Research In Motion
Sears Catalogue
Shopping the world from home — not limited by the general store
154 Sears, Roebuck and Co.
SIA’s Singapore Girl
Serene, caring, and elegant hospitality in the air that is second to none
156 Singapore Airlines (SIA)
Satellite Radio
Compelling content on high fidelity, commercial-free radio
available everywhere
158 SIRIUS
Improves my cash position and simplifies my operations
142 PNC Financial Services Group
v
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Internet Telephony
Stay connected with friends around the world at a fraction
of the cost
160 Skype
Micro Cars
A Smart solution that addresses both parking and gas issues.
Plus, it’s also cute.
162 Smart
Low-Cost Carrier
Inexpensive and friendly service that gets me to my
destination on time
164 Southwest Airlines
Premium Coffee
A “third place” away from home and the office for a premium
experience to indulge in quality coffee
166 Starbucks
Healthy Fast Food
He really lost a lot of weight eating great tasting food at Subway
168 Subway
Customized Bill Promotions
Staying up-to-date on my account and your new offers
170 Symcor
The Rs. 1 lakh Car
Four wheels are better than two
172 Tata Motors
Generic Pharma Business Model
Providing my patient affordable, quality drugs
174 Teva
Digital Video Recording
Watch your favorite TV shows, commercial-free,
whenever you want to
176 TiVo
Scion
Making a car adjust to my life rather than me adjust to the car
178 Toyota
UNIPOL Process
Stronger, cheaper and cleaner plastics
180 Union Carbide
Velcro
Easy-to-use, durable fastening for a range of applications
182 Velcro Industries
Mobile Services Without a Network
A phone company with a personality that appeals to me and
delivers on service
184 Virgin Mobile
Thermomix
Chop, blend, and cook all in one pan, eliminating the need to
wash numerous bowls and utensils
186 Vorwerk
Special Polymer Products
Stay dry, stay comfortable, stay safe, stay effective,
stay healthy…
188 W. L. Gore
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360 Packaging Reduction Initiative
Drives breakthrough innovation in our products, packaging
and delivery
190 Wal-Mart
Eye Surgery
Revolutionary vision correction—faster, safer, and permanent
192 WaveLight
“Heavenly” Bed and Bath
Decadently comfortable that I want to come back or
take it home
194 Westin Hotels & Resorts
Wikipedia
A reliable encyclopedia at your finger tips
196 Wikimedia
Banking Solution for the Unbanked
Connecting me virtually to what is important — my money
and my relatives
198 WIZZIT Bank
Online Video Sharing
Broadcast myself or be entertained by others
200 YouTube
A Car “Timeshare”
Conveniently located personal car available for as
little as 30 minutes
202 Zipcar
205 Core Contributing Team
206 Other Contributors
206 Administrative Support
206 Design Team
207 Index
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© 2000-2006 by Monitor Group. All rights reserved.
FOREWORD
The Innovation Practice at the Monitor Group has worked with hundreds of companies on the topic of innovation.
We have consistently found that stories of innovation breakthroughs are key to getting both the leadership and the
employees of companies excited about the importance of innovation. Literature is scattered with examples of innovations, but they are often not presented in a systematic manner nor in sufficient number to represent the range
of innovations and industries. This book is our effort to compile and systematically organize a large set of exciting
innovations to make them accessible to all those interested in innovation. The examples have been selected by
seasoned consultants in the innovation space, drawing on their experience of proven examples of innovations that
have excited real clients.
We also found during the compilation of these innovations that most companies like to have stories of innovation
breakthroughs written about them. All these companies implicitly recognize the benefits of having had innovation
breakthroughs, validating what we have found in our previous research. Specifically, there are four premiums that
companies enjoy as a result of being viewed as innovative: (1) they have excited and motivated employees, (2)
they have other innovative companies who want to partner with them, (3) they have customers that love their
products and services and (4) they have a disproportionately positive return on the stock market.
Never has innovation been more appreciated or viewed as important by executives — and yet it remains too
complex for them to easily implement. Innovation Management is the business discipline for driving Innovation
Breakthroughs. However, in our experience it would be a mistake to talk only about innovation management and
the underlying concepts of platforms, partners, portfolios, processes and people. Only when Innovation Management is complemented with examples of innovation breakthroughs do executives get charged up about the range
and breadth of their opportunities and take action.
As with most efforts within a professional services organization, this work is built on the shoulders and minds of
great thinkers before us and the smart colleagues surrounding us. We would like to acknowledge the members of
the Monitor Innovation Practice for their support and contribution in identifying and shaping the content. Specifically, we would like to thank Ron Jonash for his overall mentorship, support and encouragement for this project. We
foreword
ix
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INNOVATION
BREAKTHROUGH
Offering Title Goes Here
would
like to thank
Nanja Strecker
for her
driving this
projectcommolore
forward with her own ideas
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and
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research
activities.
Michael
Baltay,
Ashok
Boghani,
Holger
Koehler,
Iason
Onassis and Alex Roth for
ting ex exer sed euis
their belief in the need for such a document and their overwhelming individual support for generating some of the
examples. We would like to thank Ben Jonash, Karen Long, Tyler McNally and Andre Dovalle for tirelessly adding
and fleshing out many of the “101s.”
Company Name Here
This could not have been a truly global book without the tremendous support from Todd Roberts, Fernando Musa
and Maarten Kelder, the leaders of our Canadian, Latin American and Asian practices. It is through their help that
we were
able
examples from Brazil, Canada, China, India, Japan, Korea and Mexico.
What
is to
theevaluate
offering?
How has it left a mark?
Ommy numsan ut iustrud tinit nim veleniam vero odionseOverall, we would like to acknowledge Maria Taborszki for helping coordinate this
project
to completion
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staying on top of all the moving parts. Her persistence and patience were key to its success. We appreciate
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andscenes
who does
it satisfy?support and direct help of Mary O’Brien and Michelle Medico. Lastly, ea
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and Julie
Sherman
Studio at Monitor for the
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elegant design and illustrations.
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What else was out there?
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Why is it unique?
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Why is it difficult to replicate?
x
what
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Ilit irit am venisci liquissim veliquatum in hent atis ad tem
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quatin et, consed molore
dolore faci blaorer sustissi
bla adipit dolorpero od minit
nos ex eugait ip euipsuUd
eros ad dolobore volenibh
erit,
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INTRODUCTION
Innovation is widely recognized as one of the best sources for driving business growth and enabling business
survival. Until very recently the word “Innovation” was associated primarily with R&D and technology and
“new” product. But now innovation has come to mean much more — it includes any change, across and beyond
the organization, which results in high impact and value creation. This book contains 101 examples of such innovations, to inspire and energize your organization.
• 101 Innovation Breakthroughs is a booklet that highlights the diversity and
range of innovations that are changing the world
• Innovation happens in all industries, even the most mundane and boring and
cuts across all markets and economies
• Innovation Breakthroughs deliver on a combination of met and unmet market
needs around Survival, Safety, Belonging, Esteem or Self-actualization
• Market / consumer experience with these innovations is often expressed in terms
of Affordability, Convenience, Relevance and Meaning
Innovation is ubiquitously
recognized as one of the
best source for business
growth and survival.
• Most innovations combine insight and multiple elements beyond just products
to deliver a unique experience to the market that range from acquisition to
use to disposal
• Changes in how, what, when, where, whom and with what partners and business
models are key for creating innovation breakthroughs
xi
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• Flipping through the 101 Innovation Breakthroughs will be fun and will hopefully
trigger new insights and ideas for yourself and your organization. It could
even inspire you to implement them!
This list by no means represents only the best and most successful examples in a respective field. Many other
anecdotes could have been told and might be told at other places or at later times. Also, some of these could
seem exaggerated by the market, and we only take them at face value! We have aspired to provide you with an
insightful spectrum of innovations from different sources, application fields, industries and geographies.
The stories include well-known “classics” as well as new innovations, where the positive impact is not yet visible or guaranteed. A note of caution though — most information is collected from public sources. We cannot,
therefore, take any responsibility for misleading data, neither do we guarantee that all examples will remain
success stories in the future!
A spectrum of
Innovation Breakthroughs
to inspire you.
This book is meant to inspire — so we recommend that you flip through a few stories whenever time permits,
be it the daily commute, during quiet evenings or other relaxing moments. But if you find yourself reading it
from cover to cover, we will understand!
Range of Innovations
Innovation breakthroughs are not limited to any one geography or to any one industry. Our large collections
of innovation examples, although not statistical, supports this statement. We do find that U.S., Japanese or
Western European companies tend to be the innovation leaders, however, there are quite a few companies like
CEMEX in Mexico, Infosys Technologies in India and Natura in Brazil, that are driving innovation breakthroughs
in their own economies and worldwide.
xii
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101s by Geographic Area
South America 7%
Africa 1%
101s by Industry
Industrial Manufacturing 2%
Agriculture 1%
Telecommunications 3%
Food and Beverages 5%
Resource Industries 6%
Asia 11%
Leisure and
Transportation
Services 12%
Banking and
Financial Services 6%
Europe 30%
Consumer Products
and Services 14%
North America 51%
Business Services 7%
Media 10%
Health Care and
Pharmaceuticals 8%
Automotive and
Aerospace 8%
Retail 10%
Computer and
Electronics 9%
Similarly, some may believe that innovation is the realm of high tech companies like Apple and Motorola, and
not for their industry. This would be short-sighted. We have examples of innovation across a range of low
and high tech industries, product and service industries, and fast and slow moving industries to challenge
that misconception.
xiii
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Consumer Voice
Innovation Voices
Shareholder Voice
The analysis of each innovation is consistently presented in a structured yet simple and fun manner. The content may appear light but is surprisingly dense and will be insightful.
To increase the understanding of these innovations, we deliberately use the voice of key stakeholders to
simulate their thinking around the innovation. To have an Innovation Breakthrough, it is usually necessary for all
these voices to be aligned.
• The Consumer/Customer is portrayed through word-of-mouth, which brings
awareness to the benefit of the innovation, be it affordability, convenience,
relevance or meaning.
• The Shareholder should find meaning around revenue, earnings and market
share growth and other intangibles that make impact on the share price.
Innovator Voice
Competitor Voice
• The Innovator has to be able to articulate a compelling and meaningful
business insight to get support for the idea and commitment for investment.
• The Competitor has to concede that it is difficult to replicate or overtake
the offering.
As you think about innovation in your organization, ask yourself the following: what is your insight and what will
the competitor, customer/consumer and shareholder say about the innovation.
xiv
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Pathways for Innovation Impact
A look across these 101 Innovation Breakthroughs reveals that innovation is much more than new products or
new processes. In fact, in all cases the innovators focused on changing a combination of two to four elements
across the innovation value chain instead of focusing change on just one element. It is this combination of
changes that “wows” the customer, and makes it hard for competitors to replicate.
Using the Pathways for Innovation Impact framework, you should ask your innovation teams some of the
following questions:
What should the
What business
offering be?
How is the
model do we use?
offering made?
What’s next?
INSIGHTS
BUSINESS MODELS
TECHNOLOGIES
EXPERIENCES
PROCESSES
PRODUCTS
CHANNELS
MATERIALS
SERVICES
LOGISTICS
ASSETS
BRANDS
Use the Pathways
for Innovation Impact
Framework to get an
Innovation Breakthrough.
LOCATIONS
MARKETS
OCCASIONS
NETWORKS AND PARTNERS
Which networks & partners
should we use?
Where, when and at
what price should
we offer it?
Whom do we target
with this offering?
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INNOVATION THEMES ACROSS THE 101s
The 101 Innovations profiled in this book represent a wide range of “breakthroughs” across the globe that are
cutting across a wide range of markets, products & services, technology applications and new business models. Across these innovations, a number of common patterns are clearly emerging:
• Anywhere, Anytime, for Everyone
• Find, Connect, and Transact
• Cults of Customized Comfort
• No Frills Convenience
• Sustainability and Energy Independence
Making offerings available
to you wherever you are
and whenever you want!
• Making the Market
• Build the Infrastructure and Co-create
• Give away the Lamp, Sell them the Oil
• Silent No More
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innovation BREAKTHROUGHS
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INNOVATION
BREAKTHROUGH
Book Vending Machines
Accessible and affordable books to provide a quick escape or
learning during travel or down-time
24x7 Cultural
What is the offering?
Pick a book anywhere — through vending machines at
unusual locations like subway stations 24 hours a day, 7
days a week. A tempting offer, most books cost less
than $2.30. The selection includes translations of
Sherlock Holmes, Paulo Coelho and even a dictionary
of mathematics.
What and who does it satisfy?
Nearly everyone, people who do not usually visit bookstores and are seeking a distraction while traveling. This is
reading made popular and accessible.
What else was out there?
People can either plan their reading in advance and buy
their reading material in a store or read the billboards on
the subway.
Why is it unique?
24x7 Cultural is the only company selling books through
vending machines.
Why is it difficult to replicate?
Inexpensive products on wafer-thin margins would be
daunting for most competitors; others may lack the holistic view and synergy (the company is also a publisher).
2
what
How has it left a mark?
A revolutionary way to
encourage new readers and
promote the habit of reading.
24x7 Cultural sells 10,000
books monthly from its
over 40 vending machines
in São Paulo and Rio de
Janeiro. The book vending
machines are now spreading throughout Brazil.
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INSIGHT
Occasions for reading occur all through the day, similar to occasions for drinking beverages—if
soft drinks fulfill this need through vending machines then can we not do the same for books?
KEY INNOVATION CHOICES
BUSINESS MODELS
ASSETS
Being a publisher, 24x7 Cultural, has economies of scale and by selling via vending machines
they have eliminated the middleman/book store. This allows them to sell the books at a discount and expand their business further upstream.
Soda vending machines that have been adapted to display and dispense books.
LOCATIONS
The vending machines are located in subways and other crowded waiting areas,
where people would welcome a distraction or an escape. Next port of call–shopping
malls, hospitals.
CHANNELS
Vending machines, a new and ingenious channel for selling books.
OCCASIONS
MARKETS
The books are available 24 hours a day, 7 days a week.
Reached out beyond the on-line and book store buyer to a new market, the consumer in transit or in a waiting situation looking for a distraction.
BUSINESS MODELS
INSIGHTS
TECHNOLOGIES
EXPERIENCES
PROCESSES
PRODUCTS
CHANNELS
MATERIALS
SERVICES
LOGISTICS
ASSETS
BRANDS
NETWORKS AND PARTNERS
LOCATIONS
OCCASIONS
MARKETS
how
3
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WANT MORE INNOVATIONS?
Innovation is ubiquitously recognized as one of the best sources for business growth and survival. Interestingly,
until very recently the word ‘Innovation’ was associated only with R&D and technology. But now innovation has
come to mean much more, it includes any change, across and beyond the organization, which results in high
impact and value creation.
101 Innovation Breakthroughs is a booklet that highlights the diversity and range of innovations that have
changed the world. It is meant to inspire and energize your organization.
For more information visit:
www.innovation-management.com/innovations.html
ABOUT INNOVATION MANAGEMENT INC.
Innovation Management, Inc., a part of the Monitor Group, helps companies grow through innovation.
We achieve this objective by:
• Identifying innovative opportunities
• Implementing growth platforms
• Developing new business models
• Improving innovation strategy, processes and culture
• Implementing technology strategy
We have helped numerous firms around the world achieve results.
For more information visit:
www.innovation-management.com