How we innovate is changing Elberfelder Farbenfabriken vorm. Friedrich Bayer & Co Bell Labs, Holmdel, NJ
User innovation Innovation in servicesElberfelder Farbenfabrikenvorm. Friedrich Bayer & Co Social innovation Open innovationBell Labs, Holmdel, NJ
Health spend as % GDP (2005) versus adult mortality rate (2006) 16 15 Health spend as % GDP 14 13 12 11 10 9 8 7 6 40 60 80 100 120 Adult mortality rate Source: OECD Health Data 2010
Change in health spend share of GDPversus % improvement in adult mortality rate 3.0% % growth in share of GDP (p.a.) 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% % improvement in mortality rate (p.a.)
• Evolution of civil society’s economic roles – eg 11m jobs in Europe• Growth of socially oriented commercial economy: US Congressional Budget Office: projections forecast total spending on health care will rise from 16% of GDP in 2007 to 25% in 2025, 37% in 2050 and 49% in 2082.• Visible exemplars: Grameen, BRAC, Pratham, Mondragon ...
What skills for what kinds of innovation?Technologist III“Work involves testing patientsamples for efficacy/exploratorybiomarkers and pharmacokineticmeasurements using establishedprotocols and written procedures.You should have experience intechniques such as ELISA,multiplex assays, and enzymaticassays, as well as experience inhandling human samples.”
A craft that combines:• Understanding of science, social science, evidence, experience …• The subtle realities of taking ideas into effect and then scale• What works in terms of impact, results• What works in terms of public acceptability, politics• How to organise, finance, assess innovations• ???
CONTRIBUTORS TO THE FIELD Web entrepreneurs. innovators Community projects Social scientists Mutuals, coops Politicians and parties Service design companies Design advocatesProfessions User groups/NGOs Social Policy makers entrepreneurs IT/egovernment Public sector managers Consultancies
4. A THEORETICAL MODEL ONTHE NATURE OF INNOVATIONAND TECHNOLOGY
1. OBSERVE natural processes and social phenomena (light, electricity, care, exchange), REPLICATE and AMPLIFY
2. BUILDING BLOCKS- the web, portals, paraprofessionals, the universal benefit/tax credit, personal account, each forming a domain …
3. Innovations evolve systems and sub-systems with their own logics and architecture
4. Innovations give to rise to other innovations and combinations drive evolution
5. Radical innovation comes from ‘redomaining’, applying ideas from one field to another
Applying the model to social and publicinnovation • Observation • Replication/amplification leads to building blocks • Evolution • Combination • Redomaining
2 Proposals 1 Prompts Customer journey maps 6 Systemic3 Prototypes 4 Sustaining change user feedback 5 Scaling rights to time failure demand political mandates for ideas new technology data and evidence crisis surveys and sousveysneeds mapping diagnosis ethnography 1. prompts and triggers cost escalation new paradigms critical walking reviewing extremes, positive deviance petitions, campaigns visits complaints choirs
FORMAL PILOTS• RCTs and random assignment – eg Creative Credits, J-PAL• Experimental zones• Living Labs
1 Prompts2 Proposals 6 Systemic3 Prototypes 4 Sustaining change programme funding 5 Scaling formal validation policy commitment loans, equity, quasi-equity Refining business models embedding 4. sustaining Commissioner commitment Ownership structures Professional Public share issues development Crowd-funding
Implementinginvolves Money andputting business model Know-howresourcesandstructuresaround the Physical INNOVATION People andinnovation Resources governance Reputation and effectiveness
•Developing a business model Intellectual•Securing initial funds – Developing Building operational property strategy protection customers and investment systems and processes to deliverDistribution Business planning Money and for users channels and systems Banking and business model Know-how working capital Management Pricing information Sales and business Purchasing systems development Leasing•Acquiring the premises Co-operatives and equipment to Physical INNOVATION People and deliver the innovation Resources governance Community•Accessing the raw xxxx chain Supply Interest •Setup up Company management Advertising Independent materials the innovation evaluationgovernance and Industrial and requires Reputation •Recruit benchmarking Provident •Evaluating effectiveness and leadership and Society •Building brand, profile, Non-executive Partnerships effectiveness team reputation Directors Charities •Switching from previous Shareholders solutions PR agreements
1 Prompts2 Proposals 6 Systemic3 Prototypes change federations 4 Sustaining 5 Scaling franchises licensing policy and programme funding investment for growth – loans, equity, quasi-equity diffusion commissioning 5. scaling and growth Brands Strategies for diffusion and adoption consumer advocacy growth through people takeover professional networks National policy directives
UNDERSTANDING THE POTENTIAL FOR SCALE Is there a viable Are the systems / business model and processes capable of evidence of demand Money and operating at higher / market? business model Know-how volume, or capable of expansion?Are the resourcesnecessary forexpansion readilyavailable, affordable, Physical INNOVATION People and What are thecontrollable? Resources governance aspirations and motivations of the key people behind Is there evidence of the innovation? How the effectiveness of Reputation critical are they? the innovation? Is and that known, effectiveness understood, accepted by others?
1 Prompts2 Proposals 6 Systemic3 Prototypes 4 Sustaining change law 5 Scaling coalitions for change regulation changed power relationships changed scripts whole system demonstrators new mentalities 6. systemic change recalibrated markets new metrics finance for technical diffusion through supply chains outcomes fast colleges
Sonoma Mountain Village, Northern California USAHiriko City Car, Spain
HEALTH AND CARE• Whole system demonstrators• Social Networks for support• Patient peer influence 46
Which tools could be useful to you as aninnovator? What’s good about what you see –but where is scope for evolution, combination?
SOCIAL DESIGN TOOLS^ inversion (peasants become bankers, patients become doctors)∫ integration (personal advisers, one stop shops, portals, speeding flow)x extension (extended schools, outreach)∂ differentiation (segmenting services by groups, or personalisation)+ addition (getting GPs to do a new test, libraries running speech therapy)- subtraction (no frills, cutting targets, decluttering)t translation (airport management into hospitals, business planning into families)g grafting an element from one field into another, creating a new fusion (coaching into a secondary school)∞ creative extremism – pushing ideas and methods to their furthest boundariesr random inputs (eg dictionaries, Yellow Pages)