Is Franchising an Innovation
Killer or Promoter?
Osama Ghanim
Founder and CEO
Big Mac
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17 April 2013
Is Franchising an Innovation Killer or Promoter?
Jim Delligatti, an
early McDonald's
franchisee, invented
McDonald's Big Mac
sandwich in 1967.
Delligatti said that inventing the Big
Mac “wasn’t like discovering the light
bulb. The bulb was already there. All I
did was screw it in the socket.”
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17 April 2013
Is Franchising an Innovation Killer or Promoter?
OBAMA!
2009
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17 April 2013
Is Franchising an Innovation Killer or Promoter?
OBAMA in 25th Jan 2011: Obama’s answer to the US-crisis
“Go all in for innovation” and
“out-innovate the rest of the world”
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17 April 2013
Is Franchising an Innovation Killer or Promoter?
Why Innovation?
Everybody have copied what
everybody else have done.
All ideas have already been
consumed.
17 April 2013
Is Franchising an Innovation Killer or Promoter?
6
Innovation Improves Corporate Value
In a tough economy,
the most innovative
companies have
outperformed the S&P
500 as well as the S&P
Global 100.
The index is derived from a
combination of two rankings
from the top 50 most innovative
companies. The first is a
qualitative ranking based on the
company's position in the annual
BusinessWeek/BCG survey. The
second is a quantitative ranking
based on three factors used to
estimate a company's
innovation—three-year earnings
growth; three-year sales growth,
and R&D as a percentage of
sales.
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17 April 2013
Is Franchising an Innovation Killer or Promoter?
Accelerating Demand for Innovation
On the Rise
“America is confronting a major economic
threat as US firms face a crushing tidal wave
of innovation demand.”
Forrester Analyst
“We are pursuing too many things
simultaneously, and our organization can’t
successfully build and commercialize them all.
Yet … we don’t want to miss the next big
thing.”
Boston Consulting Group
"Where once we optimized our organizations
for efficiency and quality, now we must
optimize our entire society for innovation."
Council on Competitiveness
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17 April 2013
Is Franchising an Innovation Killer or Promoter?
Recent Study with 1500 CEO
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17 April 2013
Is Franchising an Innovation Killer or Promoter?
Recent Study with 1500 CEO
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17 April 2013
Is Franchising an Innovation Killer or Promoter?
The illiterate of the 21st century will not be
those who cannot read and write, but those
who cannot learn, unlearn, and relearn.
Alvin TofFleR
17 April 2013
Is Franchising an Innovation Killer or Promoter?
11
My favorite quote
“Whatever made you successful in
the past, WON’T in the Future”
Lew Platt VD HP
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17 April 2013
Is Franchising an Innovation Killer or Promoter?
Red Ocean
Compete in
crowded markets
Blue Ocean
Create and capture
new market space
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17 April 2013
Is Franchising an Innovation Killer or Promoter?
What is INNOVATION?
started with an IDEA
ended with a VALUE
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17 April 2013
Is Franchising an Innovation Killer or Promoter?
Creativity = Innovation
17 April 2013
Is Franchising an Innovation Killer or Promoter?
Creativity is Imagination*
* In sense of being one way of getting ideas
17 April 2013
Is Franchising an Innovation Killer or Promoter?
Albert Einstein (55 min formulating the question)
“If I had an hour to solve a problem
I'd spend 55 minutes thinking about
the problem and 5 minutes thinking
about solutions.”
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17 April 2013
Is Franchising an Innovation Killer or Promoter?
Innovation = Innovation Management
17 April 2013
Is Franchising an Innovation Killer or Promoter?
19
17 April 2013
Is Franchising an Innovation Killer or Promoter?
IPOD Innovation ….
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17 April 2013
Is Franchising an Innovation Killer or Promoter?
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17 April 2013
Is Franchising an Innovation Killer or Promoter?
Innovative Human do ….
see the linkages between
seemingly thought by most to
be unrelated issues.
17 April 2013
Is Franchising an Innovation Killer or Promoter?
22
Tony Fadell
• The iPod originated with a
business idea dreamed up by
Tony Fadell, an independent
inventor.
• Fadell's idea was to take an
MP3 player, build a Napster
music sale service to
complement it, and build a
company around it.
• Apple hired Fadell in early
2001 and assigned him a
team of about 30 people,
including designers,
programmers and hardware
engineers.
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17 April 2013
Is Franchising an Innovation Killer or Promoter?
The Creative
The Innovative
The creative … and the Innovative …
•Sees the value
•Takes the risk
•Imaginative beyond the rest
•Relates things differently
17 April 2013
Is Franchising an Innovation Killer or Promoter?
•DOER
24
Born or Learned?
Innovation is a skill that you can
learn, practice and become
proficient at.
17 April 2013
Is Franchising an Innovation Killer or Promoter?
25
Creativity is a mind issue
Innovation is a system issue
17 April 2013
Is Franchising an Innovation Killer or Promoter?
26
Define Innovation in two words only?
VALUE
IDEA
from
“innovation is value from idea”
osama ghanim
* In the coming book “:value from idea”
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17 April 2013
Is Franchising an Innovation Killer or Promoter?
Pre-Idea and Post-Idea
Pre-Idea
Idea
Post-Idea
28
17 April 2013
Is Franchising an Innovation Killer or Promoter?
Creativity …. To .... Innovation
The healthy balance between the three makes innovative organization
Atmosphere
& Motives
What drives
people to use
their
imagination to
get creative
ideas?
Creativity
How to get
value from
the most
fruitful ideas.
i.e. Highest
ROI
Value
Creation
Otherwise ….. Innovation may happen and not sure to happen
29
17 April 2013
Is Franchising an Innovation Killer or Promoter?
Pre-Idea and Post-Idea
Pre-Idea
Policies,
Systems,
Culture,
Stimulus,
Reward
Innovation
Model
Idea
Generation
Creativity
Post-Idea
Research, Study,
Development,
Marketing,
Prototyping
Innovation
Guide
Educating
Innovation
Tool Kit
Innovation
Index
30
17 April 2013
Is Franchising an Innovation Killer or Promoter?
I am helping to put a man on the moon
Yes it is a CULTURE
• President Kennedy
• NASA early 1970s
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17 April 2013
Is Franchising an Innovation Killer or Promoter?
Creativity Techniques
•
Random Word Association
•
Forced Combination
•
Negative Idea Generation
•
What If?
•
The Dream Trip
•
Lab Work
•
Visual Confetti
•
Headline Mania
•
6-3-5
•
Fishing Stories
•
Idea Propping
•
Merlin
•
Your Creative Idol
•
The Relay Baton
•
Zooming Out
•
The Lotus Blossom
•
Trend storming
•
Upside Down
•
The Brain Pool
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17 April 2013
Is Franchising an Innovation Killer or Promoter?
As per Wikipedia
7
7 Step Model
A
AIDA
ARIZ
Adaptive Reasoning
Advantages, Limitations and Unique
Qualities
Algorithm of Inventive Problem Solving
Alternative Scenarios
Analogies
Anonymous Voting
Assumption Busting
Assumption Surfacing
Attribute Listing
B
Backwards Forwards Planning
Bodystorming
Boundary Examination
Boundary Relaxation
BrainSketching
Brainstorming
Brainwriting
Browsing
Brutethink
Bug Listing
BulletProofing
Bunches of Bananas
C
CATWOE
Card Story Boards
Cartoon Story Board
Causal Mapping
Charrette
Cherry Split
Chunking
Circle Time
Circle of Opportunity
Clarification
Classic Brainstorming
Cognitive Acceleration
Collective Notebook
Comparison tables
Component Detailing
Concept Fan
Consensus Mapping
Constrained BrainWriting
Contradiction Analysis
Controlling Imagery
Crawford Slip Writing
Creative Problem Solving - CPS
Criteria for idea-finding potential
Critical Path Diagrams
D
DO IT
Decision seminar
Delphi
Dialectical Approaches
Dimensional Analysis
Disney Creativity Strategy
Do Nothing
Drawing
E
Escape Thinking
Essay Writing
Estimate-Discuss-Estimate
Exaggeration
Excursions
F
F-R-E-E-Writing
Factors in selling ideas
False Faces
F cont.
Fishbone Diagram
Five Ws and H
Flow charts
Focus Groups
Focusing
Force-Field Analysis
Force-Fit Game
Free Association
Fresh eye
G
Gallery method
Gap Analysis
Goal Orientation
Greetings Cards
H
Help-Hinder
Heuristic Ideation Technique
Hexagon Modelling
Highlighting
I
Idea Advocate
Idea Box
Ideal Final Result
Imagery Manipulation
Imagery for Answering Questions
Imaginary Brainstorming
Implementation Checklists
Improved Nominal Group Technique
Interpretive structural modeling
Ishikawa Diagram
K
KJ-Method
Keeping a Dream Diary
Kepner and Tregoe method
L
Laddering
Lateral Thinking
Listing
Listing Pros and Cons
M
Metaplan Information Market
Mind Mapping
Morphological Analysis
Morphological Forced Connections
Multiple Redefinition
N
NAF
NLP
Negative Brainstorming
Nominal Group Technique
Nominal-Interacting Technique
Notebook
O
Observer and Merged Viewpoints
Osborn's Checklist
Other Peoples Definitions
Other Peoples Viewpoints
P
PDCA
PIPS
PMI
Paired Comparison
Panel Consensus
Paraphrasing Key Words
Personal Balance Sheet
Pictures as Idea Triggers
Pin Cards
Plusses Potentials and Concerns
Potential Problem Analysis
Preliminary Questions
Problem Centred Leadership
Problem Inventory Analysis - PIA
Problem Reversal
Productive Thinking Model
P cont.
Progressive Hurdles
Progressive Revelation
Provocation
Q
Q-Sort
Quality Circles
R
Random Stimuli
Rawlinson Brainstorming
Receptivity to Ideas
Reciprocal Model
Reframing Values
Relational Words
Relaxation
Reversals
RoleStorming
S
SCAMMPERR
SCAMPER
SDI
SODA
SWOT Analysis
Sculptures
Search Conference
Sequential-Attributes Matrix
Similarities and Differences
Simple Rating Methods
Simplex
Six Thinking Hats
Slice and Dice
Snowball Technique
Soft Systems Method
Stakeholder Analysis
Sticking Dots
Stimulus Analysis
Story Writing
Strategic Assumption Testing
Strategic Choice Approach
Strategic Management Process
Successive Element Integration
SuperGroup
SuperHeroes
Synectics
Systematic Inventive Thinking
T
TILMAG
TRIZ
Talking Pictures
Technology Monitoring
Think Tank
Thinkx
Thril
Transactional Planning
Trigger Method
Trigger Sessions
Tug of War
U
Unified Structured Inventive Thinking
Using Crazy Ideas
Using Experts
V
Value Brainstorming
Value Engineering
Visual Brainstorming
Visualising a Goal
W
Who Are You
Why Why Why
Wishing
Working with Dreams and Images
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17 April 2013
Is Franchising an Innovation Killer or Promoter?
Innovation (Ideation) Cycle
Problem
Or
Need
Challenge
Combine &
Evaluate Ideas
Implement
Most
Promising
Ideas
VALUE
Convert into
Innovation Challenge
Ideation &
Collaborate
Develop
Ideas
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17 April 2013
Is Franchising an Innovation Killer or Promoter?
Innovation Stage-Gate Process
Strategic
Direction
Stage 1
Gate
Stage 2
1
HOW GATES WORK:
YES, gate criteria are met,
move to next step.
NO, criteria are not met,
idea is parked.
Gate
Stage 3
2
Gate
Stage 4
3
Gate
Stage 5
4
Gate
Stage 6
5
Stages:
Gates:
1. Strategic Direction
Direction Clear
2. Idea Generation
Ideas Scored
3. Concept Definition
Concept Approved
4. Funding Case
Funding Approved
5. Pilot and Test
Launch Approved
6. Launch
Final Evaluation
Gate
6
35
Traditional vs. Open Innovation
Traditional Innovation
Open Innovation
Relies on internal experts who
don’t have all the answers
Acknowledges that problem
solvers and knowledge are widely
dispersed
Rigid “not invented here” culture
with focus on who solves the
problem
Open & collaborative culture
focused on solutions
*
*
* Henry Chesbrough, Professor & Executive Director of the Center for Open Innovation, Haas School of Business, UC Berkeley
36
Problem/
Challenge identifier
Leader
Innovation Roles
Pipeline
Controller
Criticizer
Creative
Genius
Idea
Champion
Collector
Marketer
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17 April 2013
Is Franchising an Innovation Killer or Promoter?
Block 18
Office 24
3rd Floor
Our Partners
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17 April 2013
Is Franchising an Innovation Killer or Promoter?
Osama Ghanim
Founder and Managing Executive as CEO
& Chief Innovation Director
Osama Ghanim
oghanim@innovabia.com
@oghanim
www.twitter.com/oghanim
http://ae.linkedin.com/in/osamaghanim
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17 April 2013
Is Franchising an Innovation Killer or Promoter?
9am to 5pm (8 hours)
• Doing our job = using brain power via stored
skills & knowledge in our brain.
• Thinking hours we give?
Thinking
• Its BRAIN DRAINAGE
Skills
(Knowledge)
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17 April 2013
Is Franchising an Innovation Killer or Promoter?
CLIMATE INNOVATION MODEL
Culture
Atmospher
e
Thinkers
Media
Collectors
Customer
Innovation Funnel
Signal Capture
Social
Media
Hunt
Web
Inherited
Culture
Under
Construction
Culture
Innovation
Climate
Public
Innovation
Weather
Beneficiar
y
Growth
Organization
Image
Vendor
Employees
Benefits
Refine,
Discuss
Correlate,
Combine
Marketing
Products
Evaluate,
feasibility (Market,
Financial etc.)
Open
Innovation
Magnet Pull
Customer
Image
Prototyping or Trial
testing e
Brain
Storming
Sensor Capture
Execution of the idea
Experts
Networks
Cost Saving
Play with the
environment
Stimulus
Motivation
Reward
Attitude
Skills
Atmosphere Peoples
Expert Experts
Media
Value
Matrix (MVM)
Media
Expert
Collectors List
+ Collector
Location,
strength
Quality +
Quantity
(Enrichment)
Collection
Expert
Stages & Gates
Innovation
Sponsor
Goals and
Objectives
Innovation
Selection Team
Start with the end is pictured in mind
17 April 2013
Is Franchising an Innovation Killer or Promoter?
41
European Quality Model (EFQM)
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17 April 2013
Is Franchising an Innovation Killer or Promoter?
Natural Evolution
1899
“Everything that
can be invented
has been
invented”
Chalres Duell,
Commissioner US
Office of Patents
1980
2008
“640K ought to
be enough for
anybody”
“Never before in
history has
innovation
offered promise
of so much to so
many in so short
a time.”
Bill gates
Bill gates
2012
?
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17 April 2013
Is Franchising an Innovation Killer or Promoter?