How innovation ready are you? by Markus Närenbäck


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How innovation ready are you? by Markus Närenbäck

  1. 1. How innovationready are you?Logica/INSEAD study findings on ‘Collaborative Innovation’Nordic companies – Return TO InnovationMarkus Närenbäck –Director Business Development & Sales Logica
  2. 2. Another recently done study• Study of driving forces in the private industry• 150 CxO interviewed June-Sept 2011• Qualitative research with 30 min interviews and manual analysis of intervew Most important focus today ? Focus most important in the future ? Growth Growth Cost cut Agility Cost cut Agility One company One company Innovation is the most important driver for Agility
  3. 3. Why Collaborative Innovation?• Innovation is a proven driver of success• Organisations can no longer afford to be ‘islands’ if they are to keep ahead of the competition• Study goal: to understand how far companies have come in collaborating to innovate and what barriers stand in the way• INSEAD has specialised in understanding innovation and what it takes to succeed 3/11
  4. 4. Key findings• European Business sees innovation as tool to fight the crisis• Money spent may be wasted due to lack of innovation readiness• Companies are committing to innovation, but do not always have the other necessary components in place  Leadership needs to step up: more is needed beyond committing financial resources  Organisations are not yet structured to make collaboration ‘business as usual’  Company cultures need help to foster innovation  A lack of good and widespread measurements is hindering implementation and improvement of innovation 4/11
  5. 5. The Innovation Readiness Model Level 4 – Optimised Level 3 – Generalised Increasing level of readiness Level 2 – Localised Level 1 – Ad-hoc Leadership & Organisation & People & culture Implementation & ambition collaboration measurement The four pillars of the Innovation Readiness model 5/11
  6. 6. Leadership & AmbitionTime for leadership to step up and make the difference• 80% either increased or maintained innovation spend Organisations that invest in innovation are more likely to• 75% agreed investing in innovation is needed to outperform their peers outperform competition 45% 42%• 64% don’t have a Chief Innovation Officer 40% 35%• 37% agreed they ‘encourage employees to learn from 31% failures’ 30%• Lessons learnt from P-Direkt 25%“ 20% Spending doesn’t make it so – it is 15% 13% ” time for leadership to step up and 10% make the difference 5% 1% 0% 0% 0% Leadership has the key role to play in fostering all aspects of innovation 6/11
  7. 7. Organisation & CollaborationTogether, we can do more, faster, better 64% agreed innovation projects included external Innovation projects that include significant partners collaboration with external partners are more successful 54% agreed that ‘Collaborative processes with external partners is an important enabler of strongly disagree 1% innovation’ Reducing ‘time to market’ and creating right skill set disagree 3% are drivers for collaboration somewhat disagree 16% Almost half agreed collaborating on innovation is ‘more difficult’ than not somewhat agree 32% Best practise learnings from Rabobank Winning three-legged races? Collaborative agree 21% innovation is still not an established practice for most organisations; successful strongly agree 8% innovation requires good collaboration management 0% 10% 20% 30% 40% 7/11
  8. 8. People & CultureInnovation is a state of mind: can it be created?• 27% use ‘creative problem solving’ to recruit or Please rate in order of importance the top three promote staff factors in your organisation that enable the success of partnerships between• ‘Cultural fit’ is key to success of collaborative internal teams and external partners innovation, but varies according to the stage of the project • Brainstorming stage: diverse backgrounds, different industries etc, is valuable • Execution phase: common values and goals and a cultural affinity is key to success• Portugal Telecom’s Open Project Creating innovation ‘multi-culture’ is more alchemy than chemistry, requiring flexibility and sense of purpose that only leadership can inspire 8/11
  9. 9. Measurement & ImplementationNo measurement, no improvement…• 16% have good metrics in place to evaluate the Please rate in order of importance the top three factors that block the success of your innovation success of innovation projects efforts-first choices• 9% measure innovation through ROI• 41% identify clash between ‘short-term management performance and long-term innovation priorities’• 29% succeed in sharing best practices• How Atlas Consortium drives its innovation measurement & implementation Innovation is ill-defined and poorly measured. Without quantified objectives, attempts to improve how you innovate will remain an art rather than a science. 9/11
  10. 10. Nordic FindingsImprovement areas Nordic organizations score low and are in the bottom (1,77 ) when it comes to implementation/measurment Only 16% have methods describing how to measure and evaluate Innovation work – and only 9% measure ROI on innovation. 32% of the nordic organizations consider innovation be part of the culture – average is 40. Only 21% of the Nordic enterprises has processes to manage and mobilize ideas from employees 41% sees that short term management and prioritizations has a negative effect on the long-term innovation work 10/11
  11. 11. How can you become Innovation Ready?• Make innovation ‘business as usual’ backed up by leadership participation at all levels • Allocate real time and goals to innovative efforts; lead by example• Guide your organisation to openly collaborate both internally and externally • Set-up collaboration across internal boundaries as a trial for external projects• Create a ‘multi-culture’ that supports the diverse creative input required for successful innovation • Involve everyone in setting HR criteria; reward contributions from implementers, innovators and cheerleaders• Define measures of success and use them to drive improvement throughout the organisation • Benchmark range of qualitative and quantitative measures to measure innovation - involve your customers 11/11
  12. 12. Thank youQuestions?Markus Närenbä 12/11