‘Industrialization’ of Innovation – September 26th, 2008
ISSUES OF INNOVATION
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An International Issue
 Innovate America – National Innovation
Initiative; Council on Competitiveness
 Innovation Management and the Knowledge
Driven Economy – European Commission
 National Innovation Foundation – India
initiative
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Why is Innovation So Important?
 Over 70% of a corporation’s value is ‘intangibles’
 Innovation is one of the key intangibles
 Innovation creates value – directly and indirectly
 Innovation is one of the top 3 concerns of CEOs
 IBM CEO Survey
 Boston Consulting Group CEO Survey
 Accenture CEO Survey
 Innovation determines the ability to create
FUTURE value by changing the way the current
world works
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The ‘Issue’ of Knowledge
Innovation is a knowledge
The amount of new knowledge process that helps bridge the
created between now and 2050 knowledge gap
will exceed the total amount of
knowledge created in the
Amount of Knowledge
history of mankind The
Knowledge
Gap
“Research is the
transformation of money into
knowledge.
Innovation is the
transformation of knowledge
into money.” Time
G, Nicholsen – 3M
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Innovation’s Historical Success Rate
20%
7.5%
4% >4%
3% >3%
>2% >2% 2%
>1%
* Source – Doblin group
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The Front End Determines Success
Discovery Development Commercialization
Understand Design compelling Connect with customers.
demand creation new offerings Create market pull
Blockbuster
„batting average‟
Increase the
„home runs‟
Get more
So-So
Failure
What you
Determines
do here success here
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Innovation Dynamics
 What lengthens the time the front-end takes?
 What lowers the throughput and yield of NPD?
 What slows down adoption by the target customers?
 What limits the potential size of the market for a new offering?
Increase
Adoption
Increase Increase
Compress Throughput Yield Speed
Time Adoption Blockbuster
ROI
Fail
Discovery Development Commercialization
7 Copyright © 2008 Inovo Technologies Inc.

What are the issues and barriers to
innovation in your organization?
 What prevents people from behaving
innovatively?
 Why aren’t all new offerings blockbusters?
 Who in the organization is responsible for
innovation?
 What is the specific funding of innovation?
 How is technology a help or hindrance to
innovation?
 How are decisions made on what to develop?
Copyright © 2008 Inovo Technologies Inc.

Copyright © 2008 Inovo Technologies Inc.