Rob Goudswaard, Senior Director Product & Services Innovation, Philips Home Monitoring

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1 Attaining successful crowd resonance: driving technical innovation with meaningful consumer insights Presented in Boston, May 2011 at Front End of Innovation Rob Goudswaard, Senior Director Product & Services Innovation, Philips Home Monitoring Lucy Rowbotham, Consulting Director Innovation Management, Cambridge Consultants

2 Philips acquired Lifeline in 2006 as part of their Home Wellness Strategy for growth Lifeline was (and is) the leading provider of personal response and emergency call systems in the US and Canada Every 2.3 secs an older adult over the age of 65 will fall in US Seniors using Lifeline s 24hr service can press a button to send an alert to a monitoring center which responds with assistance Lifeline has in-depth knowledge of a successful service model Philips track record for innovation could be applied to accelerate the growth of the business via technology enabled services 2

3 The Philips and Cambridge Consultants Innovation Planning Process Develop criteria with Senior Mgmt Gain crowd insights all those involved Create RTBs for range of insights & cluster Evolve into propositions & initial ranking Brief technical investigation Test for crowd resonance Final ranking Task 1 Task 2 Task 3 Task 4 Task 6 Task 5 Task 7 Defined scope & agreed list of calibrated criteria for screening & ranking Briefing document & stimuli materials for brainstorm 200+ ideas, challenged to create clusters 3-7 outline concepts 3-6 qualified concepts 2-5 qualified concepts 1-3 concepts ready for feasibility study 3

4 Contrary to common belief, radical concept generation benefits from constraint Criteria should describe what Senior Management want to achieve not how it is going to be achieved Develop criteria with Senior Mgmt 4

5 Seniors were interviewed or visited at home Gain crowd insights all those involved Seniors take action to prevent careless falls 5

6 8 impassioned marketeers created 6 platforms Make My Own Decisions Prevention Minimal Change in Behaviour Protect the Place Simplification Keep / Support Active Lifestyle 6

7 The Platforms were used to inspire Insights like these Seniors Insight Know I m not able to call I ve had a couple of accidents in the past, things like falling and spilling hot water on myself, but they weren t that bad. But some day I might have an accident that is more serious one that keeps me from calling for help either because I m not able to move, or because I m unconscious. I wish there was something that could call for help when I can t.. Caregivers Insight Know she s fallen I worry about my mother being alone. She has had a couple of accidents, like falling and spilling hot water on herself, but I was there to help. I m afraid one day she ll have an accident when she s alone something that keeps her from calling for assistance because she s unable to move, or even unconscious. I wish there was something that could call for help, even when she can t. 7

8 22 Insights created 9 achieved crowd resonance 8 from Sales Organisation 8 Call Center operatives 10 Caregivers via internet 10 Actives - via internet 10 Frail Elderlies - via internet 11 Actives - in person 11 Actives caregivers - in person 11 Frail Elderlies - in person 11 Frail Elderlies caregivers - in person A crowd of 90 8

9 Pitfall Pursuing the top Insight in the interests of speed 9

10 Our 3-hour brainstorm generated >250 ideas, purposefully generated for a multitude of insights 21 Insight 7 Insight Insight 6 Insight Insight 5 Insight 1 Not able to call Insight 4 Create RTBs for range of insights & cluster 9 Insight 3 Insight 2 27 Prevention Detection = Idea 10

11 Intriguing innovations from other industries stimulated the desired coverage Insight 6 moving right along Insight 5 deal with it Insight 4 I m still in charge Insight 8 why so complicated? Insight 2 secure in every area 11

12 Pitfalls Serving crumbly biscuits and inviting your highly creative 12

13 Brainstorms need chocolate digestives and work better if Highly Creative people are interviewed before the brainstorm Crumbly biscuits Not good for meetings say 1000 business professionals quizzed by Holiday Inn James Collier Highly Creative Founder Member of Cambridge Silicon Radio Capitalised at $1B 13

14 Creative Clustering & Screening workshop coalesced 18 clusters containing 159 ideas, from 250 brainstorm ideas 1 Insight 7 Insight Insight 6 Insight Insight 5 Insight 1 Not able to call 2 Insight 4 1 Insight 3 Insight 2 4 Prevention Detection 14

15 Pitfall Expecting radical ideas to meet all the screening criteria 15

16 You need positive discrimination for radical ideas ( = concept fragments)..as they won t survive on their own 16

17 A small crowd of 11 specialists - with 1/3 marketeers brought 13 fuzzy concepts into focus and selected 5 1 Insight 7 Insight 8 2 Insight 6 Insight 9 Insight 1 4 Insight 5 2 Not able to call Insight 4 Evolve into propositions & initial ranking 1 Insight 3 Insight 2 3 Prevention Detection 17

18 Pitfall Pitfall Focus on concepts with the highest fit to the company 18

19 Choose concepts on the basis of highest market Attractiveness and acceptable Fit & balance 5 Target Area Detection 4 Company Fit 3 Prevention 2 1 Good Attractiveness acceptable Fit Market Attractiveness Selected Rejected 19

20 The five selected concepts were investigated (10 days each) - to answer key questions and to evolve IP eg Falltimeter concept 1 2 Very accurate and reliable fall detection determined from the barometric pressure Calls for help in the event of an accident Brief technical investigation Falltimeter technology indirectly senses a head near the floor situation, which is intuitively associated with a fall, 20

21 One of the concepts was found to already be in development elsewhere in Philips and is now launched Automatic safety lighting only when you need it 1 2 Detects motion, providing subtle illumination Provides guide lighting where you need it 3 There are places in the home that a Senior is used to taking for granted, but now seem dangerous. This lighting system helps make those risky places safer 21

22 Near-acid-test - confronting an 850-strong crowd ~~ CareGlow Concept 4 Concept 3 Test for crowd resonance ~ Concept Caregivers Falltimeter 537 Seniors 20 Referral sources 22

23 Falltimeter and Concept 3 were selected for further work 5 Falltimeter Target Area CareGlow Company Fit 4 3 Concept 4 Concept 3 2 Final ranking 1 Concept Market Attractiveness 23

24 The Falltimeter was developed Lifeline with AutoAlert is the only pendant-style help button that can automatically place a call for help if it detects a fall and you're unable to push the button yourself. It has patented technology involving multiple sensors - both height & acceleration Wear it in the shower, where falls often occur, as it's waterproof. 24

25 Pitfall Not solving major barriers to progress before engaging whole organisation 25

26 The final acid test - 50% of new customers recognize the value of the premium AutoAlert service 26

27 Crowd Resonance and enhanced Philips market leadership! Understand your market Spread your ideation across market insights Watch out for the pitfalls Validate your assumptions: do your ideas resonate with the full crowd? Thank you for your attention 27

28 Contact details: Cambridge Consultants Ltd Cambridge Consultants Inc Science Park, Milton Road 101 Main Street Cambridge, CB4 0DW Cambridge MA England USA Tel: +44(0) Tel: Fax: +44(0) Fax: Registered No England Cambridge Consultants is part of the Altran group, the European leader in Innovation Consulting. Commercially Confidential This Presentation contains ideas and information which are proprietary to Cambridge Consultants Limited and/or Cambridge Consultants Inc: it is given to you in confidence. You are authorised to open and view any electronic copy we send you of this document within your organisation and to print a single copy. Otherwise the material may not in whole or in part be copied, stored electronically or communicated to third parties without the prior written agreement of Cambridge Consultants Limited and/or Cambridge Consultants Inc Cambridge Consultants Ltd, Cambridge Consultants Inc. All rights reserved. 28

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