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My take on Innovation in Public Sector in Age of Austerity to Warwick Business School

My take on Innovation in Public Sector in Age of Austerity to Warwick Business School

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    Igpm innovation in hard times cy Igpm innovation in hard times cy Presentation Transcript

    • Innovation in Hard Times
      Dr Chris Yapp
      Chris_yapp@hotmail.co.uk
    • Themes
      What is innovation?
      Where are we now?
      Key ideas
      Leadership
      Policy Innovation
    • 05/10/2011
      2
      Innovation =new
      Miranda
      “Brave new world that has such people in it”
      Prospero
      “’Tis new to thee”
      • The Tempest: W Shakespeare
    • Charles Handy on Change..
      05/10/2011
      3
      Performance
      B
      E
      A
      C
      D
      Time
    • Key role of Innovation
      05/10/2011
      4
      Invention
      Innovation
      Diffusion
      Necessity is the Mother of Invention
    • 05/10/2011
      5
      Innovation
      Generating value from ideas
      The intersection of invention with insight
      A Process of Social Change
    • Wikipedia’s list of Innovation Types
      Business Model
      Marketing
      Organisational
      Process
      Product
      Service
      Supply Chain
      Substantial
      Financial
      Incremental
      Breakthrough, disruptive or radical
      New technological systems (systemic )
      Social
      05/10/2011
      6
    • 05/10/2011
      7
      Rules for Stifling Innovation
      Regard any new idea with suspicion - because it's new, and because it's from below.
      Insist that people who need your approval to act first go through several other layers of management to get their signatures.
      Ask departments or individuals to challenge or criticise each other's proposals. (That saves you the trouble of deciding - you just pick the survivor.)
      Express your criticisms freely, and withhold your praise. (That keeps people on their toes.) Let them know they can be fired at any time.
      Treat identification of problems as signs of failure, to discourage people from letting you know when something in their area isn't working.
    • 05/10/2011
      8
      Stifling Innovation…
      Control everything, carefully. Make sure that people count everything that can be counted, frequently.
      Make decisions to reorganize or change policies in secret, and spring them on people unexpectedly. (That also keeps people on their toes.)
      Make sure that requests for information are fully justified, and make sure that it is not given out to managers freely. (You don't want data to fall into the wrong hands.)
      Assign to lower-level managers, in the name of delegation and participation, responsibility for figuring out how to cut back, lay off, move people around, or otherwise implement threatening decisions that you have made. And get them to do it quickly.
      And above all, never forget that you, the higher-ups, already know everything important about this
      Rosabeth Moss Kanter; Change Masters
    • The Public Sector doesn’t innovate because....
      It can’t go out of business
      Exceptionalism
      It’s a monopoly or pseudo-competition
      Lack of competition
      Lack of skills..
      Regulation
      Targets
      Politics
      Leadership
      Culture
      Trade Unions.......YAWN
      05/10/2011
      9
    • Great Ormond Street
      05/10/2011
      10
    • Dimensions of the Current Challenge
      05/10/2011
      11
      structural
      Economic
      Change
      Market Step Change
      Niche Portfolio
      Reactive
      Proactive
      Strategic
      Response
      Sitting Tight
      Mopping up
      cyclical
    • Dynamics of the Current Challenge
      05/10/2011
      12
      New Entrant
      structural
      Economic
      Change
      Market Step Change
      Niche Portfolio
      Reactive
      Proactive
      Strategic
      Response
      Sitting Tight
      Mopping up
      cyclical
    • Innovation is not equal to technology
      The Solar-Powered
      Sun Lamp
      05/10/2011
      13
    • 05/10/2011
      14
      Problem Types
      Do we know where
      We are going?
      YES
      Best practice
      Scaling practice
      TASK:
      Operational
      Management
      TASK:
      Process
      Development
      NO
      YES
      Do we know
      How to get
      There?
      TASK:
      Direction
      Setting
      TASK:
      Concept
      Creation
      Next practice
      Emerging practice
      NO
      After Eddie Obeng
    • Whose problem?
      05/10/2011
      15
      High
      Political
      System
      Think
      Tank
      Complexity
      Consultant
      Wisdom of
      The Crowds
      Academic
      /Expert
      Low
      Low
      High
      Uncertainty
    • What value?
      05/10/2011
      16
      High
      Political
      System
      Think
      Tank
      Track record
      Complexity
      Ideas
      Consultant
      Wisdom of
      The Crowds
      Knowledge
      Academic
      /Expert
      Low
      Low
      High
      Uncertainty
    • During Step Change?
      05/10/2011
      17
      High
      Political
      System
      Consultancy squeezed as limited track record
      Think
      Tank
      Complexity
      Consultant
      Wisdom of
      The Crowds
      Academic
      /Expert
      Low
      Low
      High
      Uncertainty
    • 05/10/2011
      18
      Wisdom of the Crowds
      “In the Future blind People will
      Be able to drive cars”
    • 05/10/2011
      19
      Results
      Probability 0.9 with some 0.2
      Today with Resources: 1-3 years
      In practice: 3-10 years
      In reality: 10-100 years
    • Innovation Killers
      Not creating a culture that supports innovation
      Not getting buy-in and ownership from business unit managers
      Not having a widely understood, system-wide process
      Not allocating resources to the process
      Not tying projects to company strategy
      Not spending enough time and energy on the fuzzy front-end
      Not building sufficient diversity into the process
      Not developing criteria and metrics in advance
      Not training and coaching innovation teams
      Not having an idea management system
      05/10/2011
      20
      Source: Joyce Wycoff
    • Unlocking Innovation Potential
      Anticipate and Exploit Early Information Through ‘Front-Loaded’ Innovation Processes
      Experiment Frequently but Do Not Overload Your Organization.
      Integrate New and Traditional Technologies to Unlock Performance.
      Organize for Rapid Experimentation.
      Fail Early and Often but Avoid ‘Mistakes’.
      Manage Projects as Experiments.
      05/10/2011
      21
      Source: Stefan Thomke , Harvard BS
    • Drucker: Innovation and Entrepreneurship
      Incongruities
      The Unexpected
      Demographics
      Process need
      Industry and Market Structures
      Changes in Perception
      New Knowledge
      05/10/2011
      22
    • 05/10/2011
      23
      Deming’s 4 prongs of Transformation
      Improvement in product or service
      Improvement in process
      Innovation in product or service
      Innovation in process
    • 05/10/2011
      24
      Sources of Innovation
      Manufacturer Active Process
      User Active process
      Source: Eric Von Hippel, MIT
    • 05/10/2011
      25
      Diffusion of Innovations
    • 05/10/2011
      26
      Why do some Innovations take longer to diffuse?
      Homophily
      Heterophily
    • Closed Innovation Funnel
      05/10/2011
      27
    • Open Innovation
      Innovating with lead users
      Co-design, co-creation and co-delivery
      “Open source”
      Creative Commons
      Battle over “digital rights”
      05/10/2011
      28
    • Open Innovation Funnel
      05/10/2011
      29
    • 05/10/2011
      30
      Organisational culture
      Specialists and generalists
      Personal credibility
      Tolerance of uncertainty
      Story telling
      Leadership
    • 05/10/2011
      31
      Organisational Roles in Innovation
      Sponsor
      Product Champion
      Organisational Champion
    • 05/10/2011
      32
      Public Policy Challenge
      Speed
      Universal
      Access
      Local
      Determination
    • The death of “the death of distance”
      Smart technologies need smart people
      Smart people thrive on other smart people
      Smart communities thrive on diversity, openness and tolerance
      Smart communities need infrastructure and support
      Clusters rule!!!!
      05/10/2011
      33
    • 05/10/2011
      34
      The New Renaissance
      Information explosion
      City state
      Blurring of arts/humanities/science/technology
      New concepts
      Leading to a new enlightenment?
    • Challenges for Public Sector Innovation
      Scale
      Inclusion
      Complexity
      Best Practice?
      Social Innovation
      Time Scales
      Innovation Process
      Diffusion of Innovations
      NOT
      It can’t go out of business
      Exceptionalism
      It’s a monopoly or pseudo-competition
      Lack of competition
      Lack of skills..
      Regulation
      Targets
      Politics
      Leadership
      Culture
      Trade Unions....
      Thank You
      05/10/2011
      35