Technical Module - The Five Disciplines of Innovation

Trainer: Assoc. Prof Dr Khairudin Damhoeri

Date: 7 - 9 April 2010 

The FIVE disciplines of Innovation 

• Discipline 1 - Important Customer & Market Needs
• Discipline 2 - Value Creation
• Discipline 3 - Innovation Champions
• Discipline 4 - Innovation Teams
• Discipline 5 - Organizational Alignment 

1# Your product or service must target a customer value (as opposed to a company, shareholder, employee, or public value). A customer's value = benefits - cost. You can optimize either the benefits or the cost to achieve high value. 

2# You need a value proporsition. High customer value results from providing superior benefits per costs compared to the competition and alternatives. Quantitative value of proposition is the core of your "elevator speech" (ie NABCs = Needs + Approach + Benefits + Competition) that addresses:

• What is the important customer and market need?
• What is the unique approach for addressing this need?
• What are the specific benefits per costs superior to the competition's and the alternatives?

3# Success require teams lead by Champions which are committed and passionate. To bring innovative concepts to fruition, Champions exemplify the Five Disciplines of Innovation while serving the best interest of their enterprise.

4# To innovate, you need collective intelligence. Innovation teams must have a shared vision, complementary skills, and shared rewards. 

5#  Upper management needs to remove barriers and provide organizational support. This is the advantage of smaller businesses. Align your team first, then the overall enterprise - everyone can create new customer value. Continuous Value Creation (CVC) requires alignment of structure and process throughout the enterprise to maximize customer value.