Innovation in the down turn

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Innovation in the down turn

  1. 1. Innovation in the Downturn Afrivate 26 March 2009
  2. 2. Looking at the Landscape
  3. 3. How do you expect the economyto look at end of 1st quarter 2009? *Compared to September 2008McKinsey Global Survey : Economic Condition Snapshot (February 2009)
  4. 4. How active shouldgovernment’srole be in the economy, since the startof the downturn.McKinsey Global Survey : Economic Condition Snapshot (February 2009)
  5. 5. Where shouldgovernmentfocus their efforts ?McKinsey Global Survey : Economic Condition Snapshot (February 2009)
  6. 6. What stepshas your company taken to face the downturn?McKinsey Global Survey : Economic Condition Snapshot (February 2009)
  7. 7. What is Innovation?
  8. 8. Idea to Tangible Exploit to Commercial Success New Idea Invention Innovation Invention Process Innovation ProcessInnovation is therefore much morethan invention Need to successfullycommercialize the invention Trott2005
  9. 9. Why is Innovation important?
  10. 10. productInnovation Funnel William B. Rouse, “Improvement & Innovation Improvement & Innovation” 2007
  11. 11. processInnovation FunnelModeling phase Simulation session Debriefing workshop Next simulationsIdea Focusseds process development projects Duration ca 3 months
  12. 12. Innovation funnel across extended enterprise
  13. 13. The Competitiveness Challenge Competitive Enterprise Continuous ImprovementGreen Fields Innovation Product Incremental Innovation Innovation Radical Innovation Operate Optimise Process Innovation Technology Innovation Blending Innovation and Operation Innovate Operate Innovate
  14. 14. Innovation Capability Construct The Innovation Capability Dilemma Innovation Process Knowledge & Competency Organisation al Support Organisation Strategy & Function & Data & Customer & & Objectives Processes Information Suppliers Management Organisational Construct Innovate Operate ICMA 1 2 Innovate 4 3 5 A More Competitive Enterprise
  15. 15. Innovation has finallyArrived
  16. 16. Currently,66% of 3000 global executives considerInnovation top 3 priorityLess than 50% of executives feel ROIis sufficient Source: BCG Senior management innovation survey 2008
  17. 17. Currently, • Understand the customerStrengths | • Executive LevelSupport • Speed of delivery • Discipline of Delivery • Managing Risk | Weakness • Partnering with Others• Earmarking sufficient funds Source: BCG Senior management innovation survey 2008
  18. 18. Types of Innovation• 3 Life Cycles – ProductLife Cycle – TechnologyLife Cycle – EnterpriseLife Cycle• Dealing with Darwin – 15 Types of Innovation
  19. 19. Geoffrey Moore’s 15 Innovation Categories
  20. 20. The Economic Good Times Scenario Improvement Programmes Infrastructure Analysis Innovation Process Re-assessment Assessment Knowledge & CompetencyImproving Innovation Capability Organisational Support Identify opportunities, Deploy, refine, generate ideas and PortfolioExecuting Innovation Initiatives concepts, and Management formalise and exploit opportunities determine feasibility Continuous monitoring and improvement of operationsOperations Generating revenues and funding innovation
  21. 21. The Economic Bad Times Scenario Improvement Programmes Infrastructure Analysis Innovation Process Re-assessment Assessment Knowledge & CompetencyImproving Innovation Capability Organisational Support Identify opportunities, Deploy, refine, generate ideas and PortfolioExecuting Innovation Initiatives concepts, and Management formalise and exploit opportunities determine feasibility Continuous monitoring and improvement of operationsOperations Generating revenues and funding innovation
  22. 22. How innovation fit are you?
  23. 23. Innovation Maturity Fitness? • 5 Levels of Innovation Maturity Fitness Synchronisation of activities and resources Outputs provide sustained competitive advantage Synergised Innovation 5 Aligned Innovation 4 Integrated and aligned activities and resources Outputs are a source of consistent differentiation Supported Innovation 3 Practices, procedures and tools formalised Consistent outputs maintain market share Defined Innovation 2 Need to innovate identified and defined Outputs are inconsistent, but traceableAd-HocInnovation 1 Consumed with day-to-day operations Outputs are inconsistent and unpredictable
  24. 24. What to do in the Downturn?
  25. 25. Ad-HocIf you are at Innovation 1 maturity • No way of rapidrecovery – Get expertise’s help in
  26. 26. SupportedIf you are at Innovation 3 maturity • Obtain partialhelp from experts
  27. 27. SynergisedIf you are at Innovation 5 maturity • Adjust your ideafilter • Harvest ideas to solve problemsrelatedto the downturn – How to cut costs – Hire better people for less • Adjustyour feasibility filters • Go to portfolio and re-align – Reposition for when market turns
  28. 28. If you are at unknown ? maturity • Keep expertise • Cut costs • Negotiate with suppliers • Find shortest route to new ways to do business – Different products – Cheaper processes – New markets
  29. 29. Innovation Capability Assessment•Assess to determine maturity level,• Identifies best innovation improvement activities
  30. 30. Indutech’s innovation improvement lifecycle Business Unit C Business Unit B Business Unit A Improving Innovation Capabilities Initial Infrastructure Improvement Activities Measure, Assessment Analysis Optimise, Assess (Wednesday Fitness) Innovation PD, ED, IM, etc Innovation Processes Innovation Process Improvement Roadmap(s) Process Process Knowledge & Knowledge & IKN, BI, etc Knowledge & Competency Improvement Roadmap(s) Competency Competency Organisational Strat, Culture, Organisational Support Organisational Support Org struct, etc. Improvement Roadmap(s) SupportSpecific Innovation (Saturday Game) Implementations Identifying Immediate Pains Identifying Identifying Portfo Analysis/ Measure Current Prototype Concept Concept lio Develop & Idea &Optimis Exploit Innovation Innovation Definition Feasibility Mngm Implement Generation e Projects Project(s) ent Identifying Immediate Opportunities
  31. 31. Thank you

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