Slide Presentation from the AHRQ 2008 Annual Conference
On September 8, 2008, Nigel Smith made this presentation at the 2008 Annual Conference. Select to access the PowerPoint® presentation (220 KB; Plugin Software Help).
AARP Member-Centric Innovation Process
Director, Member Strategy
AHRQ Annual Conference—September 8, 2008
Overview of AARP
Screen shot of a flowchart showing an overview of AARP:
- AARP is a nonprofit, nonpartisan membership organization for people age 50 and over.
- Vision: A society in which everyone ages with dignity and purpose, and in which AARP helps people fulfill their goals and dreams.
- Mission: AARP is dedicated to enhancing quality of life for all as we age. We lead positive social change and deliver value to members through information, advocacy and service.
- AARP Services
- AARP Foundation
- AARP Global Network
AARP Assets, Capabilities, and Key Differentiators
- Membership: Largest nonprofit membership in the US with over 40 million members.
- Volunteers: 300,000+ volunteers working in 2,500 chapters.
- Brand: Most well-known nonprofit organization in the country with a highly trusted brand.
- Advocacy: Influences major Federal and State legislation on issues of significance to its members and society at large, including healthcare, economic security, and livable communities.
- Information/Distribution: AARP The Magazine is one of the world's largest circulation publications with ~22 million households. Other information assets include AARP Bulletin, AARP Segunda Juventud, AARP TV and the revitalized AARP.org.
- Product and Service Relationships: Multiple partners and alliances offer a broad spectrum of AARP-branded health, financial, and lifestyle offerings, including United Healthcare, Aetna, Genworth, Walgreens, Chase, Expedia, Borders, and others.
- Diversified Revenues: Operating revenues of approximately $1 billion, sourced from membership dues, royalties, publications advertising, contributions, and other sources.
- Model of Social Entrepreneurship: Measurement of success through a unique triple bottom line social entrepreneurship lens: social impact, member value and revenue.
Innovation at AARP
- Decentralized model—innovation exists in multiple business units.
- Member-centric innovation group created in mid-2007 to systematically unearth member value proposition opportunities:
- Additional innovation resource.
- Leverages deep insights of the age 48+ population.
- End-to-end process has been developed, socialized, and is currently being resourced to drive several AARP innovation priorities.
AARP Member Centric Innovation Process
Goal: to provide a systematic methodology for innovative ideas/concepts to be objectively assessed in a repeatable, scalable manner in order to create new portfolios, products, and features that are highly valued by target 50+ segments.
- Member Insights:
- Market Trends
- AARP priorities
- Portfolio gaps
- Prioritization driven by:
- Demographic and psychographic assessment
- Needs/wants assessment
- Persona creation
- Persona ideation
- In-person facilitated ideation:
- Subject Matter Experts
- Facilitated open online ideation
- Team prioritization
- Team build-out of prioritized concepts
- Team refinement
- Feature and benefit optimization by sample of target member segments (conjoint analysis and other approaches)
- Business case assessment of top concepts
- Recommended and approved concepts transitioned to business owner for development
- Innovation parameters for focused innovation
- Assessment of needs, wants, and values of target segments
- Hundreds of ideas that address innovation parameters
- 10-20 prioritized concepts for deeper exploration
- Expanded concepts, with fleshed-out features and benefits
- Prioritized concepts for development based upon member value and organizational business case
- Developed, piloted, and launched concepts, OR
- Failed concepts
Next Steps in Innovation Journey
- Build internal clients and infuse process throughout organization.
- Engender innovative culture:
- Less risk aversion.
- Ideas come from everywhere.
- More visible leadership support.
Finally... Some Humble Advice
- Be clear on roles & responsibilities with innovation execution, and make sure all stakeholders understand and are fully aligned with the innovation process.
- Be flexible in innovation architecture, approach and execution; it is critical that innovation meets the set organizational and leadership expectations. Quick early wins help to establish the value of the innovation process and gain organizational support.
- Don't lose sight of the other "2nd and 3rd horizon" benefits of an innovation process. Innovation can help create a less risk averse culture, enhance the AHRQ brand, and engender an even more attractive employee value proposition. Plan for these as part of your innovation journey.
Current as of January 2009
AARP Member-Centric Innovation Process. Slide Presentation from the AHRQ 2008 Annual Conference (Text Version). January 2009.
Agency for Healthcare Research and Quality, Rockville, MD. http://www.ahrq.gov/about/annualmtg08/090808slides/Smith.htm