Applying Innovation Eindhoven, September 2006 Clive Harris IBM Distinguished Engineer [email protected]
Applying InnovationEindhoven, September 2006
Clive HarrisIBM Distinguished Engineer
"There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain of success than to take the lead in the introduction of a new order of things, because the Innovation has for enemies all those who have done well under the old conditions and lukewarm defenders in those who may do well in the new"
Machiavelli The Prince Machiavelli The Prince
We all need to Innovate !!
Written in 1513
Two Questions for you …What is your favourite invention or innovation ?
Where do the best innovations come from ?
http://www.ideafinder.comCelebrating the Spirit of Innovation
Agenda
What is Innovation ?
Looking Back at Innovation
Who Needs Innovation ?
Successful Innovation
The Process of Innovation
Innovation within IBM
Summary
Innovation
Linear innovation model Dynamic innovation mode
Build to forecasted demand Sense and respond to demand
Independent Interdependent
Single discipline Multiple Discipline
Product functions Value to customer
Local R&D teams Globalized 24x7 R&D teams
The nature of Innovation is changing
From To
Invention
Agenda
What is Innovation ?
Looking Back at Innovation
Who Needs Innovation ?
Successful Innovation
The Process of Innovation
Innovation within IBM
Summary
YEAR (BC)Milestone
2737 Tea invented by Emperor Shen Nung in China.
1550 Earliest surviving medical textbook written in Egypt.
1100 Iron Age starts.
700 First purpose-made sundials appear.
650 Standardized coins used by Greeks.
512 Chinese produce cast iron from blast furnaces.
510 Greeks produce the earliest surviving world map.
400 Two Greeks invent the catapult, the first artillery weapon.
312 Work begins on the Appian Way, the first great Roman road.
210 Archimedes, the Greek scientist, invents the Archimedean screw, for raising water, and works out the theory of levers.
100 Glassblowing invented in Syria.
YEAR (BC) Milestone
500,000 Fire tamed by Homo erectus.
50,000 Homo sapiens (modern man) appears.
20,000 Invention of the bow and arrow.
12,000 Domestication of animals begins.
8000 Agriculture invented.
7000 Pottery.
6000 Weaving.
5000Irrigation systems developed in the Middle East.
4000 First use of metals - copper for making tools.
3500 Bronze used for making weapons and tools.
3500 Wheel appears in Mesopotamia and writing invented in Sumeria.
3000 Abacus invented by the Chinese.
2800 Egyptians devise the 12-month, 365-day calendar.
Innovation is not new !!
The modern can opener was invented by William Lyman of the United States in 1870. The only change from the original patent was the introduction of a serrated rotation wheel by the Star Can Company of San Francisco in 1925. The basic principle continues to be used on the modern can openers, and it was the basis of the first electric can opener, introduced in December 1931. Pull-open cans, patented by Ermal Fraze of Ohio, debuted in 1966.
Can Opener
The first practical can opener was developed 50 years after the birth of the metal can. Canned food was invented for the British Navy in 1813. Made of solid iron, the cans usually weighed more than the foodthey held! The inventor, Peter Durand, was guilty of an incredible oversight. Though he figured out how to seal food into cans, he gave little thought to how to get it out again. Instructions read: "Cut round the top near the outer edge with a chisel and hammer." Only when thinner steel cans came into use in the 1860s could the can opener be invented. The first (patented in 1858), devised by Ezra Warner of Waterbury, Connecticut, looked like a bent bayonet. Its large curved blade was driven into a can’s rim, then forcibly worked around its edge. Stranger yet, this first type of can opener never left the grocery store. A clerk had to open each can before it was taken away!
Everyone knows what Post-it notes are: They are those great little self-stick notepapers. Most people have Post-it Notes. Most people use them. Most people love them. But Post-it Notes were not a planned product.
3M began distributing Post-it Notes nationwide in 1980 -ten years after Spencer Silver accidentally developed a super weak adhesive. Today they are one of the most popular office products available. Post-it®
Post-it Notes
No one got the idea and then stayed up nights to invent it. A man named Spencer Silver was working in the 3M research laboratories in 1970 trying to find a strong adhesive. Silver developed a new adhesive, but it was even weaker than what 3M already manufactured. It stuck to objects, but could easily be lifted off. It was super weak instead of super strong.No one knew what to do with the stuff, but Silver didn't discard it. Then one Sunday four years later, another 3M scientist named Arthur Fry was singing in the church's choir. He used markers to keep his place in the hymnal, but they kept falling out of the book. Remembering Silver's adhesive, Fry used some to coat his markers. Success! With the weak adhesive, the markers stayed in place, yet lifted off without damaging the pages.
Improved process
Technology leap-frog
Radical strategy
Reaction to marketplace dynamics
Application of cross discipline practices
Triggers for Innovation can be:
Going to the Moon: Triggers for Innovation
The Apollo Programme cost $24 Billion (in the 1960’s !!)More than 400 people have been into spaceOnly 27 people have been outside low earth orbitOnly 12 men landed on the moonIt is 240,000 miles to the moonIn contrast, the space shuttle orbits at just 200 miles up
All landings on the moon were between 1969 and 1972No-one has been back sinceThere were 6 million parts on a Saturn V Space RocketThey had a 99.9% reliability targetOn a good day, 6,000 parts are expected to fail !!There are no pictures of Neil Armstrong !!
Going to the Moon: Triggers for Innovation
The Apollo Programme cost $24 Billion (in the 1960’s !!)More than 400 people have been into spaceOnly 27 people have been outside low earth orbitOnly 12 men landed on the moonIt is 240,000 miles to the moonIn contrast, the space shuttle orbits at just 200 miles up
All landings on the moon were between 1969 and 1972No-one has been back sinceThere were 6 million parts on a Saturn V Space RocketThey had a 99.9% reliability targetOn a good day, 6,000 parts are expected to fail !!There are no pictures of Neil Armstrong !!
Miniaturised computersCordless drillsWater cooled suitsMedical sensorsPowdered drinks & freeze dried foodsSmoke alarmsFire-retardant clothingFisher Space Pen !!But … not Teflon non-stick materials !!
1,000+ inventive spin-offs
Agenda
What is Innovation ?
Looking Back at Innovation
Who Needs Innovation ?
Successful Innovation
The Process of Innovation
Innovation within IBM
Summary
Business Investment Alternatives
0
10
20
30
40
50
problems from the pasttoday's challenges
1-2 years focus3+ years focus
fuel for growthprofit
drag
0
20
40
60
80
100
Living dead
0
20
40
60
80
100
Dinosaur
0
20
40
60
80
100
.com
0
20
40
60
80
100
New kid on the block
0
20
40
60
80
100
Company of the future
0
20
40
60
80
100
0
20
40
60
80
100
0
20
40
60
80
100
1-2 years 1-2 years
DinosaurEndangered species
0
20
40
60
80
100
Dying species
Company of the past
0
20
40
60
80
100Healthy Growth
H3
H2
H1
Pipeline of Innovation
1-2 years
Importance of a Balanced Portfolio
Which are the best sources for innovation and new ideas ?
Best sources for innovation and new ideas %
Which are the best sources for innovation and new ideas ?
Best sources for innovation and new ideas %
Employees 41
Business Partners 38
Customers 37
Consultants 22
Competitors 20
Trade Shows, conferences 18
What are the obstacles to innovation ?
Obstacles to innovation %
Unsupportive culture and climate 35
Limited funding for investment 34
Government and other legal restrictions 32
Internal workforce issues 27
Process immaturity 24
Economic uncertainty 19
Agenda
What is Innovation ?
Looking Back at Innovation
Who Needs Innovation ?
Successful Innovation
The Process of Innovation
Innovation within IBM
Summary
The 10 fundamental characteristics that determine innovation success
Source: IBM Research
Top 10 Fundamental characteristics of innovative companies
1. More active flow of ideas2. Well defined processes for realising
commercial success at any level3. Higher degree of management trust4. Explicit idea management processes
that people adhere to5. People take responsibility for
implementing their own ideas6. Take a balanced view of risk taking 7. Managers have adequate time to
explore and test new ideas8. Have managers who involve others
in developing ideas into actions9. Routinely envision the future based
on an intimate market knowledge10. Do not rely on the board alone for
significant new ideas
These account for 80% of the difference
between a low and high performer
Value Creation Centre (VCC)
Identification InvestigationFormulation
and Prioritization
Proof –of-Concept Pilot Production
VCC Activities Transition to BAU
VCC works withthe client to conduct research and shape
propositions
A B C D
VCC
IBM ResearchCentres
IBM Industryand technology
expertise
Through the VCC, IBM can share the technology vision,
knowledge, best practices, and solutions gained from IBM’s research, development and
worldwide customer experience
Example VCC Innovation Initiatives
Regular VCC Activities
VCC Reactive Responsibilities
Typical VCCActivities
IBM Leader: Clive HarrisAAB Leader: Ben Schreiner
Client Business / CIO Teams
Client Strategy & Global / Regional Teams
Other IBMInnovationSources
A business-led governance process sets Strategic Direction &Priorities
•Global ATM Project•Infrastructure Strategic Planning•Innovation Culture and Climate•Thinkplace & Jams•Communities and Global Collaboration•World Community Grid•Extreme Blue•Business Service Management
Some Examples:•Technology Briefings•Global Technology Outlook (IBM Research)•Regular Briefings for client teams •Global Innovation Outlook (IBM Research)•IBM Institute for Business Value (industry)
Examples:•Requests for information from the VCC•Responses to specific business issues•Requests for briefings•Locate specific IBM expertise and skills
The VCC is a joint IBM / client Team
Strategic AlignmentBusiness “Push” versus Technology “Pull”
TechnologyTechnologyEnablingEnabling
PULLPULL
Technology enabled Technology enabled ““Change driversChange drivers””
• Emerging Technologies• Pervasive computing• Integrated Supply chain Management• Advanced Planning • CRM• Data Warehousing/ Business Intelligence
Business Issues & Business Issues & StrategiesStrategies
BusinessBusinessRequirements Requirements
PUSHPUSH• Globalisation• Market trends (opport. & threats)• Mergers & Acquisitions• Business-transformation • …
Agenda
What is Innovation ?
Looking Back at Innovation
Who Needs Innovation ?
Successful Innovation
The Process of Innovation
Innovation within IBM
Summary
Value Creation Centre ProcessIBM’s model for sustained infusion of innovation – sharing the breadth of IBM’s extended value proposition with select clients
Executive SponsorsClient Senior Executive(s) IBM Senior Executive(s)
Value Creation Center( VCC Core Team)
Client• Co-Leader
Program Mgmt•
IBM • Co-Leader
Research AdvocatesIndustry Consultants
••
VCC Steering Committee (VSC)
Strategic DirectionInitiatives Prioritization Review and transition proj.
Lines of Business(LOB)
Project
ImplementationResources
• IBM• Client• Business partners
Project definition & Statement of WorkIdentify Resources and SourceLOB Business and IT ChampionIP Rights DefinedGuide ProjectsAssess and Report Milestones
Client Operating Environment
Key
Initiatives
Traditional Business RequirementsNominations
Project
StudiesStudies StudiesStudies
Scoring the Innovation IdeasVCC Themes with Scores and Priorities
Version 2, (October 2005)Criteria for Selection / Prioritisation of Themes
Directly Increases Client Revenue
Directly Reduces Costs
Enhances Clients Customer
Relationship
Develops Client Brand
Recognition
Fits / Supports Client strategy
(Global)
Develops / Levers Strategic
Capabilities Across Client
Uses IBM capabilities that
complement Client's
Weighting for Each of these Criteria (Total = 100%)
10 15 5 5 5 15 10
VCC Opportunities OverallTheme Score Scores for Each Criteria (0-5)
Innovation Theme 1 3 3.60 3 3 5 1 5 3 5Innovation Theme 2 1 4.00 3 5 3 3 3 5 5Innovation Theme 3 2 3.65 3 3 1 1 5 5 5Innovation Theme 4 5 3.40 3 5 1 1 3 3 5Innoavtion Theme 5 4 3.50 3 3 3 1 5 5 5Innovation Theme 6 6 3.30 3 3 5 3 3 3 5
0=no effect1=some effect3=more effect5=lots of effect
Agenda
What is Innovation ?
Looking Back at Innovation
Who Needs Innovation ?
Successful Innovation
The Process of Innovation
Innovation within IBM
Summary
How IBM has embedded innovation into the businessAn innovation process
Governance– Innovation Council & Technical Experts Council– Innovation Catalysts– Joint Innovation Teams
Mechanisms– WorldJam– ThinkPlace– Extreme Blue– Center for Advanced Studies– Emerging Business Opportunities
Thought Leadership– Global Technology Outlook & Global Innovation Outlook– Institute for Business Value
There are many existing IBM innovation initiatives that are available to IBM Clients … Some examples …
Focussing on emerging technologies and solutions – e.g. Grid, Linux, Digital Media …Emerging Business Organisation (EBO)
A new model, using the ITSO, to bring together our clients and researchers to jointly work on new problems
Research to the Streets
GTO Presentation TodayGlobal Innovation Outlook
Internal and external projects that focus senior IBMers and College students on new areas.
Extreme Blue
Global coordinated events across all IBM Research Labs to share and exploreResearch's Innovation Days
BCS and Research now offer consulting services based on the deep experience of IBM in numerous innovation processes, including Research and emerging business opportunities.
BCS - Innovation Management Practice
Helping IBM clients explore current business issues and gain an understanding of how to leverage technology through courses, conferences, and customized events.
IBM's innovation education – such as the Advanced Business Institute
A large multi-company investigation of the attributes and attributes of the future of national economies.
National Innovation Initiative
A workshop based class to help clients explore the future of their organization and marketplace
Enterprise of the Future - Customer Class
The study of and the principles that underline service systems. Almaden's Services Science
Joins practitioners and clients to create fact-based thought leadership that helps companies realize business value.
Institute for Business Value
Innovation Sourcing - developing Keystone Strategies to Drive Innovation & Build Market Opportunity
Innovation market spaces - external Innovation process - currently focused on Venture Capital relations
Brief DescriptionNameLinking Researchers directly with our clients to solve leading edge problems.On Demand Innovation Services
(ODIS)
Focussing on emerging technologies and solutions – e.g. Grid, Linux, Digital Media …Emerging Business Organisation (EBO)
A new model, using the ITSO, to bring together our clients and researchers to jointly work on new problems
Research to the Streets
GTO Presentation TodayGlobal Innovation Outlook
Internal and external projects that focus senior IBMers and College students on new areas.
Extreme Blue
Global coordinated events across all IBM Research Labs to share and exploreResearch's Innovation Days
BCS and Research now offer consulting services based on the deep experience of IBM in numerous innovation processes, including Research and emerging business opportunities.
BCS - Innovation Management Practice
Helping IBM clients explore current business issues and gain an understanding of how to leverage technology through courses, conferences, and customized events.
IBM's innovation education – such as the Advanced Business Institute
A large multi-company investigation of the attributes and attributes of the future of national economies.
National Innovation Initiative
A workshop based class to help clients explore the future of their organization and marketplace
Enterprise of the Future - Customer Class
The study of and the principles that underline service systems. Almaden's Services Science
Joins practitioners and clients to create fact-based thought leadership that helps companies realize business value.
Institute for Business Value
Innovation Sourcing - developing Keystone Strategies to Drive Innovation & Build Market Opportunity
Innovation market spaces - external Innovation process - currently focused on Venture Capital relations
Brief DescriptionNameLinking Researchers directly with our clients to solve leading edge problems.On Demand Innovation Services
(ODIS)
Types of Innovation where IBM can add value
IBM Innovation Sources(innovation “content”)
IBM iTeam Experience(best practice)
IBM Innovation Support(e.g. Research & ODIS)
e.g. CEO Study, GTO e.g. Thinkplace, Jams
IBM Innovation Methods & Approaches(best practice)
Innovation Maturity Models& Assessments
IBM Innovation Information(not content specific)
IBM “Enabling” Innovation(experience & best practice)
Business (Banking)
Ideas & Solutions
Technology
Ideas & Solutions
IBM Internal
Solutions (IGA)
The Institute for Business Value is IBM’s global research group focused on issues critical to business executives
Part of IBM’s Global Business Services division
Focused on vertical industries and horizontal processes
Over 60 dedicated, experienced consultants
Primary offices in Boston, Amsterdam and Beijing
IBM Assets (IGA) Adding Client Business Value (some examples)
Leverages investment in Tivoli, to rapidly deploy server refresh.Server Provisioning Platform (SPP)
Infrastructure Infrastructure ManagementManagement
Major telecommunications cost reduction for conference calls and internal voice communication.Rendezvous
On-line community collaboration tool. Steady state environment to keep Jam alive.ThinkPlace
Collaboration on a corporate scale for timely input to products, services, culture and strategy.Jam Event
Finding expertise and skilled resource globally that is open to all resource levelsBluepages (IBM Enterprise Expertise Directory)
Collaboration Collaboration ToolsTools
Single repository of content for distribution regardless of data format and mediaDigital Content Distribution
Enables fast publishing on intranet while managing adherence to standards without review councils .
WebComposer (Updating Web Sites on Demand)
Internal capital access to meet resource support requirements and customer information requirements with out costly publishing of static information and contact centers.On Demand Workplace Enterprise Enterprise
Information Information ManagementManagement
Payment compliance for employee expenses eliminating dedicated management centers and manual entry to General Ledger.
Global Expense Reporting System
Company-wide print driver manager including printer IP address. No field office or user deskside support required for access to any printer, any location.Global Print Web Solution
On-going non-intrusive inventory management, automated business control monitoring and configuration including software release.
IBM Software Asset Management (ISAM)
Compliance with software licensing agreements, eliminates deskside support for software installation, interfaces to financial systems for special buys.
IBM Software Systems Installer (ISSI)
SelfSelf--Service Service &&
Business Business ControlsControls
Value DescriptionIGA AssetValue Category
Leverages investment in Tivoli, to rapidly deploy server refresh.Server Provisioning Platform (SPP)
Infrastructure Infrastructure ManagementManagement
Major telecommunications cost reduction for conference calls and internal voice communication.Rendezvous
On-line community collaboration tool. Steady state environment to keep Jam alive.ThinkPlace
Collaboration on a corporate scale for timely input to products, services, culture and strategy.Jam Event
Finding expertise and skilled resource globally that is open to all resource levelsBluepages (IBM Enterprise Expertise Directory)
Collaboration Collaboration ToolsTools
Single repository of content for distribution regardless of data format and mediaDigital Content Distribution
Enables fast publishing on intranet while managing adherence to standards without review councils .
WebComposer (Updating Web Sites on Demand)
Internal capital access to meet resource support requirements and customer information requirements with out costly publishing of static information and contact centers.On Demand Workplace Enterprise Enterprise
Information Information ManagementManagement
Payment compliance for employee expenses eliminating dedicated management centers and manual entry to General Ledger.
Global Expense Reporting System
Company-wide print driver manager including printer IP address. No field office or user deskside support required for access to any printer, any location.Global Print Web Solution
On-going non-intrusive inventory management, automated business control monitoring and configuration including software release.
IBM Software Asset Management (ISAM)
Compliance with software licensing agreements, eliminates deskside support for software installation, interfaces to financial systems for special buys.
IBM Software Systems Installer (ISSI)
SelfSelf--Service Service &&
Business Business ControlsControls
Value DescriptionIGA AssetValue Category
IGA Asset CharacteristicsAssets built by IBM to operate IBM’s business
Built on IBM branded software and hardware products
Highly scalable, supporting 400,000 employees and contractors
Diversity in Business Functions
Enabled for clients through multiple delivery models
Hardened under Intellectual Property Services Catalogue (IPSC) Process and priced with IBM standard tool.
Mix of stable production environment and new technology adoption
Open, collaborative global forum
Combines best practices of jams, online communities and marketplaces
Surfaces innovative solutions to specific challenges
Recognizes best ideas through incentives, recognition, time & resources
Facilitates exchange of both “large”and "small" ideas
Thinkplace
General flow of an idea through ThinkPlace
Initialidea
Electedidea
Directedidea
Selectedidea
Individual submits idea. Idea is circulated on ThinkPlace home page. Collaborationis “free form” in nature—exploratory. Once enough comments and/or ranking havebeen applied the idea is deemed to have been “elected” by peers as worth investigating
Idea is automatically promoted to catalyst watch lists, based on category. Catalyst weighs in to either suggest more general collaboration is needed or “adopts” the idea
Catalyst helps focus the collaboration on key issues to address before mgmt acceptance. Catalyst acts as coach encouraging others to participate
Idea accepted by group to own “implementation” and approved by mgmt.
ExploratoryCollaboration
Focused Collaboration
IBM JamsIBM has run a series of Jams on a range of subjects over a number of years – clients also took part in the most recent “innovation Jam”
Access to IBM’s Global Account team, through the VCC, allows clients to run their own Jam.
Jam - How do they work
Jams in IBM are online events spanning a defined period of time (usually 48 – 72 hours)
Topics defined in advance
Each major topic in a jam has its own forum, in which participants can read, post a comment or reply to other comments in a threaded discussion.
During or after the jam, participants may vote on the best ideas generated.
Text analysis tools are used to mine the content for significant themes and other information.
6,046 posts
9,337 posts
32,662 posts
How has IBM used Jams?
WorldJam2001 ValuesJam WorldJam2004a new collaborative medium to capture best practices on 10 urgent IBM issues.
an in-depth exploration of IBM’s values and beliefs by employees
focused on pragmatic solutions around growth, innovation and bringing the company’s values to life
96 hrs
72 hrs54 hrs
268,233 views
1,016,763 views
2,378,992 views
Enabling Innovation
A range of discussions initially looked at the ways in which IBMsupports innovation, collaboration and communities internally, and following this a series of more in-depth workshops have been held with the following being the main themes:
Thinkplace & Jams (see separate slides)Communities and IBM’s Community model and tools (including the IBM community “maturity model”, and IBM Community Map)Collaboration Techniques and Tools (IBM Collaboration Central)Innovation Culture & ClimateIBM Innovation Assessments, Innovation Maturity Model, and Innovation ManagementSocial Network Analysis Many Others …
IBM Community Maturity Model Adaptive The community is demonstrating optimal value to its current and potential members and to the business. The community provides highly evolved sense and respond capabilities. It is now focused on specializing or subdividing to address more granular goals
Operationalized/Active The community is well established and is a part of the organization design. It is a legitimized body within the organization.
Building/ Evolving The community has begun to stabilize around formal processes, policies and norms. Additional roles may be sought out.
Formation Members discover the community and join because they have identified value or members are invited and SMEs are sought out.
Potential The group begins to emerge around the SMEs or a sponsor and leader is selected to direct and engage a core team and SMEs.
The Five Levels of Community MaturityThe Five Levels of Community Maturity
Adaptive(5)
Adaptive(5)
Building/Evolving(3)
Building/Evolving(3)
Formation(2)
Formation(2)
Potential(1)
Potential(1)
Sense & RespondCapabilities
High Performing
StandardConsistent
Operationalized/Active
(4)
Subject Matter ExpertsConnect to CreateValue
Using the Community Maturity Model to help communities move forward
Funding
Sponsorship
Community Roles and Responsibilities
Measures
Incentives
Technology
Activities and Processes
Strategy, Vision, and Value Proposition
Tacit Knowledge and Expertise
Membership, Meaning & Mastery
We can use the Community Maturity Model to assess communities and make development recommendationsWithin the Community Maturity Model are ten key areas of focus which work together as a system and upon which communities are developed and assessed
Country= Angola= Brazil= Canada= Nigeria= Saudi Arabia= UK= USA (GOM)
SNA Example: Although there was a high level of information sharing within each country there was very little sharing between countries
Responses of “Frequently and very frequently”
How often has each person provided you with information you use to accomplish your work?
The Cost of Poor Quality (COPQ) from these countries represents 84% of the totalGulf of Mexico had a 52% reduction in COPQThe sum of the other countries’ COPQ increased by 13% during the same period
Agenda
What is Innovation ?
Looking Back at Innovation
Who Needs Innovation ?
Successful Innovation
The Process of Innovation
Innovation within IBM
Summary
Innovation Opportunities
Product, Service &
MarketInnovation
Operations Innovation
Business Model
Innovation InnovationAgenda
3. Underlying Enablers• Building the underlying
capabilities that support innovation – across all innovation types
2. Types of Innovation• Broad set of innovation types
that require different capabilities, processes and measurements to succeed
1. Innovation Agenda• Leveraging Insight to set the
strategic innovation agenda• Leading and managing the
innovation mix
Create a flexible, modular technology environment that supports innovation in the businessBuild technology platforms that support incubation and collaboration
Build a balanced innovation portfolioLeverage business model innovation to gain differentiation
Leverage a network of players to achieve more dramatic innovation at greater speedsLook for tactical and strategic alliancesImprove internal collaboration
Build structures that better manage the idea capture, investigate, prioritize, fund, go to market, measure and reward processes
The Global CEO Study 2006 identifies four critical areas of focus
Product & Service
Innovation
Operations Innovation
Business Model
Innovation InnovationAgenda
Business & Technology Integration
Collaboration & Partnering
Innovation Management
Innovation Agenda
In each area, CEOs need to address key questions
Key Qualifying Questions
•Has your innovation agenda expanded beyond products and services and operational innovation to business models?
•Do you know which innovation you are investing in? With what success?•How much of your innovation is routine? How much is bold and differentiating?
•Is there a formal way to surface, select and implement innovative ideas, including different structures, processes and mechanisms?
•To what extent do you encourage controlled risk-taking and experimentation within the enterprise?
•Do you have processes and incentives that encourage a climate for creativity?
•Internally, how effectively do different product, geography and functional teams collaborate in your organization? Do you achieve the results you expect?
•Externally, how often – and to what effect – do you turn outside your organization?
•Do you have the right tools, structures and processes to supportcollaboration?
•Do you continuously explore new technologies that could change your business?
Recommendations
Innovation Managemen
t
Innovation Agenda
Collaboration &
Partnering
Business & Technology
Integration
So if everyone can be innovative, maybe we just need the practice
"There is no use trying," said Alice. "One can't believe impossible things.“
"I daresay you haven't had much practice," said the Queen.
"When I was your age, I always did it for half an hour a day. Why, sometimes I've believed as many as six impossible things before breakfast."
Through the Looking-Glass
Lewis Carroll, 1872