Innovation management speaker notes

© 2005 Intel Corporation. All Rights Reserved.

INTEL CONFIDENTIAL | INTERNAL ONLY

Innovation 101A Comprehensive overview of Innovation

and what it means to ISTG

ISTG Systemic Innovation InitiativeVersion: Q4.2005.1 (Material will be updated Quarterly)

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Course Objectives

Provide a basic understanding of the practice of Innovation and tools and references to assist people to be innovative.

Provide information about ISTG’s innovation investments and goals.

Provide links to detailed processes and procedures

that can be used to deploy innovative practices.

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Course Content

What is Innovation? Why is Innovation important? What are ISTG’s investments and goals

for Innovation? How do you innovate? What tools and resources are available?

What’s next? Optional exercises and

materials included for

in-depth application as

appropriate

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What is Innovation?

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What is Innovation?

Main Entry: in·no·va·tion; Pronunciation: "i-n&-'vA-sh&n; Function: noun1 : the introduction of something new2 : a new idea, method, or device : NOVELTYww.m-w.com

New … New … New … New … New … New … New … New

People Creating Value by Implementing New Ideashttp://www.thinksmart.com (innovation network)

The introduction of a new product, material, or device into use.

www.premierinc.com/all/techbreakthroughs/glossary/

Definitions: standard, technical, creative

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Systemic Innovation Defined

Innovation: The introduction of something new for the people or organization that adopts it

ISTG Definitions

Systemic Innovation: Creating value with ongoing innovation from ISTG employees

Systemic Innovation Initiative: the organized effort to make systemic innovation a cultural element within ISTG investments in training, tools, and methods that are all geared to

enable a creative value to the organization

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People are inherently innovative

Stellar examples we all know Discoveries/Applications that changed the world:

Harnessing Fire… The Wheel

A thousand other examples…Language…

Stellar

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People are inherently innovative

Simple examples we don’t even think about Solving problems in every day life:

We need to recognize the innovation inside and around us – and encourage more

Cooking WorkingDriving

Simple

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Three Types of Innovation

Radical -- Incremental -- Reapplied

Source: Gene Meieran

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Fundamental changes in the way people travelFundamental impact on world economy

Radical Innovation: The World

1 person4 mph

60 days; 6x106 seconds/person

4 people40 mph6 days; 100,000 seconds/person

300 people600 mph5 hours; 60 seconds/person

1860 19701910

Coast-to-Coast Travel

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1/1,000,000 the size; 1/10,000,000 the weight1/1,000,000 the cost10,000,000 X the performance and reliability

Radical Innovation: Intel’s Success

Fundamentally changed the way people compute and communicate

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Faster Better Cheaper More: reliable, safer, user-friendly, convenient

1903 1920 1940 1980

Incremental Innovation:Faster, Better

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Incremental Innovation :

Faster, Better

Intel386Intel386™™ DXDX

Intel486Intel486™™ DXDX

PentiumPentium®® ProcessorProcessor

Pentium Pentium ®® IV ProcessorIV Processor

1987

1991

1993

1996

1998

PentiumPentium®® IIIIProcessorProcessor

1.51.5µµ 1.01.0µµ 0.80.8µµ 0.60.6µµ 0.40.4µµ 0.250.25µµ 0.180.18µµ 0.130.13µµ

PentiumPentium®® III ProcessorIII Processor

Process generations

2001

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Reapplied Innovation The re-application of an existing concept or solution into an

new context is innovation. Superglue used as surgical stitches

Successful CAD migration from Architecture to Aerospace to Semiconductors allowed Incremental Innovation that fueled their growth.

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Innovation on the job

Innovation exists in every aspect of the company and every aspect of your job.

Innovation brings value to our customers, employees and shareholders. It can be seen in a variety of ways, including the obvious: New products for market New adoption of existing technologies New application of technologies

As well as seen in less obvious ways: New ways to interact and communicate with your team New approaches to saving costs New processes to simplify and reduce standard operating procedures

Any new way to add value, enhance your surroundings and overall be more productive and create winning results with the job you have.

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Optional Class Exercise Individually (5 min)

Write examples of innovation you have recently seen in your team

In small groups (15 min) Each person shares examples Group selects two examples to share with the rest of the class

Full class (15 min) Each Table shares examples Class discusses themes and thoughts that arise from the

examples

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Why is Innovation Important?

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Innovation is a constant challenge

Internal: Organizational survival and adaptation Competition

Products Processes (Operational Excellence)

Shareholder value External: Turbulent external environment

Economic, political, demographic Personal: Career Path

Be on the leading edge, trained for innovation Sense of ownership in the company Each employee has potential to create an innovation

“The only constant in our business is that everything is changing. We have to take advantage of change and not let it take advantage of us”. Michael Dell

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Innovation is part of Intel’s culture and values

When we innovate, we advance. We take informed risks to realize new

opportunities. We seek creative ways to solve problems. We embrace change and challenge the status

quo.

Our actions bring Intel Values to life

Innovation is Vital to Intel

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Innovation is Value

BusinessWeek Magazine

Survey Shows Apple Most Innovative Company; Global Brand Value up $1B July 22, 2005

“Apple is the world’s most innovative company, according to a poll of more than

940 senior business executives from around the world…”

http://www.themacobserver.com/http://www.themacobserver.com/article/2005/07/22.3.shtmlarticle/2005/07/22.3.shtm

l

Implementing innovative solutions is required for profitability… for growth… for survival today.

iPod

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ISTG’S Challenge

How can we increase our return on Innovation? leveraging intrinsic motivation creating external motivation changing the game?

How can we capitalize on the creativity and competence, motivation of 7100+ ISTG employees?

And then capitalize on the creativity of 90,000+ Intel employees

And then assume a world wide leadership role

Martin Curley: ISTG Staff Presentation, March 2005

Recognize Innovation as a lateral process

and apply Technology, Management Discipline and Marketing

to the Innovation Process

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What are ISTG’s Investments &

Goals For Innovation?

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ISTG is Committed to Innovation

Leadership and Direction Vision, Goals, IMBOs, Critical Success Indicators ISTG Innovation and Research Steering Committee ISTG Innovation Organization Innovation Champion Work Group Systemic Innovation Program

Culture, Environment and Tools Standard Operating Procedures Funding Infrastructure, including Innovation Centres Processes and tools

Double-click Icon

(in Edit Mode)

Est: 30 Minute

Discussion

Details

ISTG Investment in Innov

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ISTG’s Guiding Principles for Innovation

1. ISTG hires, develops, acknowledges, rewards and retains innovative employees

2. As a result ISTG creates and adopts innovative solutions to problems and explores new opportunities in the Information Technology space and measures our results.

3. ISTG Supports the Intel Risk-Taking Value by • Fostering and encouraging innovation and creative thinking at all levels • Challenging the status quo and embracing change and • Listening to and evaluating all ideas and viewpoints • Learning from our successes as well as our mistakes • Encouraging and rewarding informed risk taking

4. ISTG Supports Intel’s corporate guiding principles for Innovation

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How do you Innovate?

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Time Management: The #1 factor

EXPERIMENT time

IMPLEMENTATION time

BUY-IN time

THINK time

How Do You Innovate?

Prototype time

Innovation doesn’t “just” happen!

RESEARCHtime

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Time Management - advice

Schedule time to innovate


If you block time on your calendar for innovative activity it MIGHT happen…

…if you don’t it WON’T!!

MIGHT

WON’T!!

Guaranteed!!

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Encourage Risk Taking

Do you allow yourself to be a risk-taker? Do you encourage it in your peers?

By definition, of course, risk taking involves the potential failure as well as

success. And organizations can quickly kill entrepreneurial spirit if people know

they will be punished for every promising idea that doesn’t work out in the end.

Innovation leaders discourage people from “playing it safe” by creating climates

where innovative ideas can fail without penalty to the originating person or group.

2005 Hay Group Study: “The Innovative Organization: Lessons

Learned from Most Admired Companies”.


yourself

your peers

…your manager?your manager

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The next two things said…

Once an idea is suggested, the next 2 things said should support and expand the idea …


not squash it!

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Innovation Myths and Realities

Myth:1. Individuals drive innovation2. Innovation begins with

brainstorming sessions

3. Innovation requires creative people

4. An innovation process will give you the results you need

Reality:1. Innovation is a team sport2. Innovation is grounded on an

understanding of users Innovation begins with

desire to add value to a user or end customer

3. Innovation requires effective problem solvers called “creators”

4. An innovation process is only one tool or enabler for effective innovation

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Innovation is a Team Sport

Managers and Teams have to create and nurture an environment that supports Innovation

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Optional: Team Innovation Discussion & IDEO Example


Video Presentation(22 Minutes)

Discussion Material: Group Techniques

(1 hour)

Team Innov Discussion

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IDEO Nuggets

Designing human experiences

“People have a lot of participating in the IDEO Way, the design firm’s five-step process that emphasizes with the consumer,

brainstorming, solutions by creating actual prototypes, using technology to find creative solutions, and doing it all with incredible speed.”


fundisciplined yet wild-and-woolly

empathy

anything-is-possible visualising

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Evidence of Innovation

Do you know how to perform the processes so your innovative work can be counted? For more information work with your Organization’s Innovation

Champion and visit the Systemic Innovation intranet site


Total Innovation-related Business Value for ISTG Total Innovation-related Business Value per Business Unit # of Innovation Harvesting Activities (including Campaigns)

# of ideas harvested # of ideas acted upon

# of Invention Disclosure Forms filed # of Intellectual Property Forms filed # of White papers published # of Innovation-related Rewards and Recognitions 2005 baseline set with Innovation Assessment Innovation Funding Model established for ISTG

ISTG is working to

measure

innovative

practices

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Evidence of Innovation… do we have it right?

Optional Class discussion: Are there other

ways to innovate? …other things to measure?

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INTEL CONFIDENTIAL | INTERNAL ONLYEvidence of Innovation… know the processes!

ISTG Measures Innovative Results through… # of ideas generated in innovation campaigns # of ideas accepted for implementation through campaigns # of Invention Disclosure Filing (IDF) # of Intel Patent submissions # of White Papers published # of Innovation-related Rewards and Recognitions

Do you know how to perform the processes so your innovative work can be counted? For details visit the Systemic Innovation intranet site


(10 Minutes)

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Ethics for Innovation Business Interaction Give credit where credit is due – innovations often

have many contributors and an obscure source – make sure you carry the names of the originators to the end value celebrations

Honesty Truth Intel’s Code of Conduct Social basis of trust

Use ISTG Rewards and RecognitionTools to acknowledge the Innovation of the people around you

Goodie Drawer SRA DRA Etc.


http://istg.intel.com/recognition/

Use the word “Innovation” in Your Recognition

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Optional Class Exercise Building from the previous exercise where you identified examples of

innovation seen in your team …

Individually (5 min) Write examples of innovation you have recently seen in your team and name

the innovator (s)

In small groups (15 min) Each person recognizes examples with the small group Group selects two examples to recognize with the rest of the class

Full class (15 min) Each Table recognizes innovators with the full class Class selects winning innovator (s) With assistance from the class, Instructor submits an Award to the winning

innovator (s)


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Back to Time Management

Optional Class discussion With your busy work load, how can you time for innovation?

(5 min)


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What Tools and Resources Are

Available?


Innovation Tools / Resources: Innovation Environment:

Innovation Centres ARC center in Oregon Innovation Labs

Innovation R & D Council – Concept Cars Innovation Self-Assessment Campaigns/Harvesting: Innovation Engine Innovation Development and Classes

Innovation Curriculum; Team Innovation Workshop

Research and Reference material

http://innovation.intel.com

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What’s Next?

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Systemic Innovation is Now Find more information on the ISTG Systemic Innovation Web Site:

http://innovation.intel.com

Begin using the ISTG Awards & Recognition Program to appropriately call out innovation already in process

Participate in “Innovation Idea” contests

Moving into Q4’05, innovation will be woven into employee, manager and organizational expectations Imbos, career discussion and reviews Organizational baseline assessment and goals Continued reward and recognition Increased number of “Innovation Idea” contests Role Model and lead ISTG

Your organizational Innovation Champion providing more detail

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Don’t be encumbered by past history,go off and do something wonderful!

Innovation management speaker notes

Business

big deal breakthroughs

medicine health

herethe vehicle

general route

employeescreate

reviewsorganizational

council concept

turbulent