Business Model Innovation, the Nordic innovation programme Measured and Managed Innovation - Jorn Bang Andersen

Measured and Managed Innovation – MMI

A Nordic Innovation Centre Programme

Nordic National MMI Workshops November 2010

Jørn Bang Andersen, Senior Innovation Advisor,

Nordic Innovation Centre

1

Iceland 12 Nov., Norway 15 Nov., Denmark 17 Nov. and

Finland 29 Nov 2010

The Agenda

If it ain’t broken why do we need a new model

for innovation?

Measured and Managed Innovation

New tools, differentiation and change of

mindset

© Jørn Bang Andersen 20102

“If it ain’t broken, why do we need a

new model for Innovation”?


“No Battle Plan Survives Contact With the Enemy”

General Colin Powell

Charles Joseph Minard: Mapping Napoleon’s March, 1861


…. And Few Innovation Plans Survive Contact

With Market Realities


The global innovation success

average, across all geographies and

all industries…

Imagine… what if we could

reach…40%

4%

in the Nordic region

5

“…US today is more than 75%

wealthier than 30 years ago,

primarily due to productivity

gains driven by innovation.

“However, until now, few steps

have been in place to allow the

US to measure and

understand innovation.”

US Department of Commerce, 2008


“Every CEO will at least give lip service to the

idea that the world is moving faster and that we

need to do a better job at innovation.

But if you go into an organization and ask

people to describe their innovation system,

you get blank looks...

They have none...”

Gary Hamel

Harvard University7


Change of Mindset

Differentiation

New Tool

+

= Successful Innovation

Measured and Managed Innovation


+

9

The Results

New Business

Models

New Value Creation

More

Competitive

New Tools Differentiate Changed Mindset

New Markets Growth Profit

More

Innovative


New Tool


Innovation Radar v. 2.0

Value Capture

Customer

Experience

Solution

PlatformEcosystem

Management

Offering (What)

Process(How)

Channel

Communication

Customers

(WHO)

Customer

Needs(Who)

Supply

Chain(Where)

12

Value Capture

Customer

Experience

Solution

PlatformEcosystem

Supply Chain

Management

Offering

Process

Channel

Customer Need

Communication

Innovation Radar 2.0 - Examples

13

All Rights Reserved, Robert C. Wolcott, 2003 - 2007

1

2

3

4

5

6

7

Offerings

Platform

Solutions

Customers

Customer Experience

Value Capture

Process

Organization

Supply Chain

Presence

Networking

Brand

Food Products Firms’ Radar Profiles

Firm: A

0

1

2

3

4

5

6

7

Offerings

Platform

Solutions

Customers

Customer Experience

Value Capture

Process

Organization

Supply Chain

Presence

Networking

Brand

Firm: B


Divergent Opinions

Firm: A

0

1

2

3

4

5

6

7

Offerings

Platform

Solutions

Customers

Customer Experience

Value Capture

Process

Organization

Supply Chain

Presence

Networking

Brand

1

2

3

4

5

6

7

Offerings

Platform

Solutions

Customers

Customer Experience

Value Capture

Process

Organization

Supply Chain

Presence

Networking

Brand

Firm: B


Divergence of Opinion

l Substantial disagreements exists, though the strength areas are mostly agree upon

l The areas that have the most measured disagreement are Process, Supply Chain, Channel, and Ecosystem

l A discussion regarding the areas with most diver-gence could be fruitful

l Select 2 - 5 dimensions to get a clear focus in your innovation efforts

l Look for dimensions that differentiate your company from its competitors: Dimensions of Differentiation & Dimensions of Parity

l Coordinate all internal functionsand external partners to innovatearound these differentiating dimensions of your business system

Tying Innovation to Corporate

Strategy

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APPLICATIONS OF THE INNOVATION RADAR

l Detailed strategic understanding:

Explore dimensions of innovation in a strategic, systematic & holistic manner

l Diagnosis:

Identify your company’s current innovation efforts and strategy

l Benchmarking:

Benchmark your company’s innovation efforts within & across industries, and take look into the future for each dimension

l Ongoing alignment of strategy:

Track and adjust your company’s complete business system & strategy

l Management across portfolio of projects/ventures:

Enable a holistic view across your company’s innovation projects

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Differentiate and Change Tracks


Three Ways to Look at it…

1. The same as the industry– but a lot better.

2. Turn a dimension on its head.

3. Look across other industries for new solutions.

20

The Same as the Industry


22

…but a lot Better…

Turn a Dimension on its Head

Rackspace Hosting

Fanatical Support®

Premium price 10%

plus…

Ten years and industry

leader


Look Across Industries for New Solutions

Tetette


Toyota

Ford

Fischer

Ski

Nike

Textiles

Slaugther house

Violin builder

Formula 1

24

And Three Attributes to Compete on…

Functionality

Price Experience


Partnership/Management?

25


Mindset: Present and Future

26


Settlers versus Pioneers

27

What business are we in?

Who is our customer?

What solutions do we provide?

How do we what we do?

What is our

business?

Who is the

customer?

What does the

customer buy?

What is the

value to the

customer?

Business Model

Innovation to

the CoreWhat will our

business be?

Are we in the

right business?


Plus a Few Simple Steps…

• Visualize and brainstorm

• Differentiate on maximum 3-5 dimensions

• Prototype small scale and develop

• Communicate and align

• Review


1. Profile- Current State- Competition- Diverse Perspectives

4. Track- Progress- Performance

3. Enable- Communicate- Educate- Empower

2. Envision- Strategic Dimensions- Desired Future State

Sum up the Innovation Radar Applied…

30

Быстро = bystro (quickly)

Changed mindset – Russian

Cossack soldiers

Differentiate – quick cooking

New business – Bistro concept

End Note: From Failure to Success

Thus the French Bistro was borne.© Jørn Bang Andersen 2010

31

Many thanks

Jørn Bang Andersen

Nordic Innovation Centre

[email protected]

Mobile +47 975 40 408

Business Model Innovation, the Nordic innovation programme Measured and Managed Innovation - Jorn Bang Andersen

Business

dimensions of innovation

future26 jrn bang andersen

pioneers27 jrn bang

new tool11 jrn bang

innovation system

innovation effortsllook

innovation radarl

innovation plans