1
Managing Innovation Program in Large Organisations
Asoke Das Sarma,
Vice President, Transformation, TCS Business Process...
2
Agenda
Innovation – definition
Why Innovation is important but often ignored
Common Mistake in Implementing Innovation i...
3
Invention and Innovation …
Invention : the discovery or creation of
a new idea ( a material, a product , a
process , a l...
4
Innovation … Types
a) Product or Service Innovation :
b) Process or Value Chain Innovation
Collectively,
these two
types...
5
Innovation meant profitable growth…...
Managing Innovation in Large Organisations
62% 38%Revenue Impact
39% 61%Profit Im...
6
But Large companies are often focused on
current operations only… but
Why companies shun
Innovation* :
• Short term focu...
7
Three Deadly mistakes Organisations make
in Driving Innovation
Managing Innovation in Large Organisations
× Strategy Mis...
8
Phase 1 : Initiation
 Idea Collection is good but first thing is to
determine the Innovation Strategy and decide the
In...
9
Phase 2 : Planning
 There are four broad stages in Innovation Life Cycle
– Idea Generation
– Idea Assessment & Prioriti...
10
Phase 3 : Execution (1 of 3)
 Idea Generation
- Communicate key Innovation
themes
- Engage the whole
organisation
- En...
11
Phase 3 : Execution (2 of 3)
 Idea Assessment
and Prioritization
– It is important to acknowledge all
ideas but it is ...
12
Phase 3 : Execution (3 of 3)
 Concept Development, Launch
and Commercialization
– Use separate dedicated
Project team ...
13
Phase 4 : Monitoring & Control
Managing Innovation in Large Organisations
• Develop critical few metrics to measure the...
14
Phase 5 : Closing
Managing Innovation in Large Organisations
• Celebrate success
• Give high visibility to winning team...
15
Final comments …
Managing Innovation in Large Organisations
Some “common” challenges faced in
Large Organisations :
× R...
16
Thank You
Managing Innovation in Large Organisations
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Day 1 1620 - 1705 - pearl 2 - asoke das sarma

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Day 1 1620 - 1705 - pearl 2 - asoke das sarma

  1. 1. 1 Managing Innovation Program in Large Organisations Asoke Das Sarma, Vice President, Transformation, TCS Business Process Services 27th Sep, 2103
  2. 2. 2 Agenda Innovation – definition Why Innovation is important but often ignored Common Mistake in Implementing Innovation in Large Organisations Applying Five Phases of Project Management in Innovation Program Conclusion & Final Comments Managing Innovation in Large Organisations
  3. 3. 3 Invention and Innovation … Invention : the discovery or creation of a new idea ( a material, a product , a process , a law of physics or anything new) . Innovation : the successful commercialization of an idea. The idea may result in a new product / service or a new way to produce a product / service. So, Innovation = Invention + (successful) Commercialisation Managing Innovation in Large Organisations
  4. 4. 4 Innovation … Types a) Product or Service Innovation : b) Process or Value Chain Innovation Collectively, these two types covers the universe of Innovation Managing Innovation in Large Organisations
  5. 5. 5 Innovation meant profitable growth…... Managing Innovation in Large Organisations 62% 38%Revenue Impact 39% 61%Profit Impact 86% 14% Product Launches Innovation : 14 : 38 : 61 Me-Too’s & Value Improvement: 86 : 62 : 39 In a VUCA* World it means survival… * Abbreviation for Volatile, Uncertain, Complex, Ambiguous - a term coined by US Military Academy • Source : Professors W. Chan Kim & Renée Mauborgne , Insead , 2004
  6. 6. 6 But Large companies are often focused on current operations only… but Why companies shun Innovation* : • Short term focus of the management (next quarter focus) • Lack of time and resource • Fear of failure and inability to manage the “Innovation Program” Managing Innovation in Large Organisations Current Competition for the present Future Competition for the future Performance Gap Optimisation Opportunity Gap Innovation * Source : A Note on Corporate Entrepreneurship: Challenge or Opportunity? | Bhaskar Chakravorti | Jun 25, 2010 U
  7. 7. 7 Three Deadly mistakes Organisations make in Driving Innovation Managing Innovation in Large Organisations × Strategy Mistake : Start Big Bang Innovation initiatives without clear strategic themes - spreading innovation efforts too thinly. × Structure/Process Mistake : Expect (and Use) structure , organisation and processes that are optimised for running BAU operations, to bring in radical Innovation × Skill Mistake : Place bright technical talent (who may lack leadership/business skills) in-charge of Innovation. Innovation is fostered through collaboration among cross functional teams. How to avoid these traps during 5 phase of Innovation Cycle (initiation , planning, execution , monitoring and control, closing) and succeed in “Managing Innovation”
  8. 8. 8 Phase 1 : Initiation  Idea Collection is good but first thing is to determine the Innovation Strategy and decide the Innovation theme. Ideas to be collected across these themes and not just random ideas  Communicate adequately across the Organisation on why Innovation is important and how each employee can contribute. Train employees in Innovation competency.  Have an end ( goal / objective) in mind before initiating the Innovation Program Managing Innovation in Large Organisations Avoid Strategy Trap
  9. 9. 9 Phase 2 : Planning  There are four broad stages in Innovation Life Cycle – Idea Generation – Idea Assessment & Prioritization – Feasibility test and Concept Development – Launch and commercialization  The Organization must have meticulous plan of resources and ( broad) timelines for each of these at the beginning of the journey .  Typically an end to end cycle may last for 18 to 24 months while some projects will be faster commercialized and others may get extended Managing Innovation in Large Organisations Avoid process & skill Trap
  10. 10. 10 Phase 3 : Execution (1 of 3)  Idea Generation - Communicate key Innovation themes - Engage the whole organisation - Engage outside stakeholders ( customers , suppliers and others) in the Idea generation exercise by using appropriate (web) technology Managing Innovation in Large Organisations 0% 50% Employees Business Parters Customers Internal Sales Internal R & D % of useful ideas contributed Source : Bearing point Analysis, 2013 Avoid Skill Trap
  11. 11. 11 Phase 3 : Execution (2 of 3)  Idea Assessment and Prioritization – It is important to acknowledge all ideas but it is suicidal to work with all of them – Constitute an idea selection board with cross functional representatives – Prioritize not only based on financial metrics but also consider non- financial metrics - Pursue the “Question Marks” Managing Innovation in Large Organisations Non –financial Metrics :  Does it create a new market space ?  Does it create new rules for competition ?  What is the growth potential ?  Does it overturn competition ?  Does it exploit discontinuities ? Avoid Process Trap
  12. 12. 12 Phase 3 : Execution (3 of 3)  Concept Development, Launch and Commercialization – Use separate dedicated Project team with some shared staff - Divide the labor and manage the partnership effectively - Do not use the same process and metrics through which the BAU team is measured to evaluate the performance of “ Innovation team” Managing Innovation in Large Organisations Partner ship Dedic ated Staff BAU Team Shared Staff BAU : Business as usual Avoid Structure and process Trap
  13. 13. 13 Phase 4 : Monitoring & Control Managing Innovation in Large Organisations • Develop critical few metrics to measure the program health for each phase ( 2-3 metrics) (Langdon Morris, in his book, “Innovation Master Plan” had outlined 92 metrics!) • Investigate and take corrective actions if metrics performance shows monotonously negative trend • Do not get impatient – be flexible and have tolerance for failure. “A majority of new ideas fail, but people shouldn’t fear for their jobs when that happens. We estimate that 61percent of our formal, new product programs never make it, when this happens, the important thing is not to punish the people involved - . Gary Pint, retired Sr. VP of 3M Avoid Process Trap
  14. 14. 14 Phase 5 : Closing Managing Innovation in Large Organisations • Celebrate success • Give high visibility to winning teams – who deliver . Reward team appropriately commensurate to the gains from the Innovation • Document learning ( for individual projects and overall program) • Start the new cycle – Innovation is a never ending pursuit – look for the next big thing. Avoid Strategy Trap
  15. 15. 15 Final comments … Managing Innovation in Large Organisations Some “common” challenges faced in Large Organisations : × Rigidity of structure × Lack of freedom and flexibility × Inertia to maintain status quo × Constraint on external collaboration (focus to protect existing IP) × Not adequate management attention due to insignificant revenue potential of the new idea Some “must do’s” for innovation exercise to succeed :  Separate dedicated project team ; separate organisation if needed during full fledged commercialisation  Dedicated team must collaborate and not compete with BAU team,  Never measure performance of Innovation team with the metrics used for BAU team.  Experiment & Learn –it’s OK to fail Managing Innovation Program is difficult but companies can only ignore “innovation” at its own peril.( “Learning is optional and so is survival” – Deming)
  16. 16. 16 Thank You Managing Innovation in Large Organisations

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