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How IBM does Innovation

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  • First is the aquarium analogy – if you are in the water, along with all your colleagues, when the water goes bad, hard to tell, hard to spot the pattern, hard to see what is wrong. The water is a metaphor for your working environment. If everyone you know has the same skill and interest profile, you may not get valuable different perspectives. You should form alliances with those different from you – i.e. outside the tank. mix it up. mentor, be mentored, make connections, collaborate, get involved in other activities in the business. So the lessons are: inject different perspectives into your work, seek different opinions, those from completely different backgrounds, “out of the water”

How IBM does Innovation How IBM does Innovation Presentation Transcript

  • 1
    Delivering Successful Innovation depends on DiversityCIFS, Copenhagen27th October, 2010
    Tina Easton
    tina@uk.ibm.com
    Innovation that Matters
  • 2
    Agenda Items
    Introduction
    Diversity is crucial
    IBM innovation programmes – used with clients
    Repeatable approaches to innovation
    Case studies and examples
    Innovation that Matters
  • 3
    “Today, innovation is about much more than new products. It is about reinventing business processes and building entirely new markets that meet untapped customer needs. Most important, as the Internet and globalization widen the pool of new ideas, it's about selecting and executing the right ideas and bringing them to market in record time.”
  • 4
    Reviewing the top-ten hallmarks of innovative companies
    Active Flow of Ideas
    Excel in product innovation
    Developing in services innovation
    Embrace business model innovation
    Extensive external collaboration
    Balanced risk taking and management trust
    Better integrate business and technology
    Innovation metrics/incentives and process
    People take responsibility for implementing their own ideas
    Leading from the top
    80%
  • 5
    Different Types of Innovation (scope)
    Blue = Opportunity for Revenue Generation
    Business
    Exploit new industry / business opportunities
    Business Model
    Innovations
    New products or solutions for the client
    Transformation
    Activities
    Process
    Process Improvement
    Commercial
    Innovations
    Operational
    Innovations
    Legacy
    Transformation
    Technology
    Infrastructure
    Innovations
    Deploy
    New Architectures
    Delivery
    Innovations
    Infrastructure
    COST REDUCTION OPPORTUNITIES
    Pragmatic / Tactical
    Strategic
  • 6
    22
    %
    INCREASE
    CEOs see even more potential with informed and collaborative customers and are rapidly increasing their investment there
    Rise of the informed and collaborative customer
    20.4%
    16.7%
    “We must redefine our value proposition to customers. Information and advisory content are becoming even more valuable than traditional drivers.”
    H. Edward Hanway, Chairman & CEO, CIGNA Corp.
    “The rise of the informed and knowing consumer will continue to have an impact regarding our go-to-market priorities. We must know how to leverage new media. We've been surprised by the impact that just a few consumers can have with their blog entries.”
    Rob Hurlbut, CEO, Attune Foods
  • 7
    Sources of New Ideas and Innovation
    External
    Internal
    Employees(general population)
    Business partners
    Customers
    Sales or service units
    Consultants
    R&D (internal)
    Competitors
    Other
    Associations, trade groups,
    conference boards
    Think tanks
    Internet, blogs,bulletin boards
    Academia
    0
    5
    15
    25
    35
    45%
    45%
    35
    15
    25
    5
    0
  • [8]
    Innovation Lifecycle
    Innovation at the intersection of business and technology
    Industry Solution Labs
    TechnologyTrends
    IndustryTrends
    Prototype
    Idea
    Trend Scan3-10 years out
    Pilot
    Deployment /Productization
    Research
    FOAK
    SocialTrends
    Research Services
    Patents
    AcademicPapers
    Research Solution Centers
    Experience Papers

    Ideas management
    Business management
    2010-08-01
    Financial Services GTO 2010 - DO NOT DISTRIBUTE
  • 9
    We have found that clients have a variety of business needs that drive innovation…
    We want to implement the latest Remote Collaboration tools – but we also need to make sure we can use them well and get the benefits from them…
    We’re a retailer developing an online sales channel for the first time
    We want to exploit the potential for innovation in our workforce, but we need to know how to direct this potential, structure it, encourage, reward it and enable it…
    We’re a distributor building a global supply chain
    There are numerous ways businesses choose to innovate
    We want to make our processes less costly, more customer focused, more responsive, but that requires innovative behaviours through the whole organisation…
    We’re a Pharmaceutical company needing to drive both innovation and speed-to-market
    … innovation knows no boundaries! Innovation for one client can be business as usual for another
  • 10
    …and therefore require a variety of tools and techniques to define and implement ideas
    External collaboration
    Processes & online tools
    Ideas generation events
    Facilitated online “jamming”
    Internal cross-silo collaboration
    Processes & online tools
    Communities of Practice
    Processes & online tools
    Leadership Development
    for innovation - top-down behaviour modelling
    We use a number of tools and techniques internally and with clients
    Coaching for Excellence method, for simplified, customer aligned operations
    Process & governance design for innovation management
    Better Change method,for rapid adaptation
    Talent management to get the most out of great innovators
    Performance Management
    to incentivise innovation
    Scenario envisioning method,to plan effectively in a complex environment
    Business Model Innovation to streamline/adapt the organisation
  • 11
    Innovation Opportunities
    1. Innovation Agenda
    • Leveraging Insight to set the strategic innovation agenda
    • Leading and managing the innovation mix
    2. Types of Innovation
    • Broad set of innovation types that require different capabilities, processes and measurements to succeed
    3. Underlying Enablers
    • Building the underlying capabilities that support innovation – across all innovation types
  • 12
    Benefits of adopting new technology early
  • 13
    Our brain is amazing…
    Aoccdrnig to rscheearch at Cmabridge Uinvervtisy, it deosn’t mttaer in waht oredr the litteers in a wrod are, the olny iprmoetnt tihng is taht the frist and lsat ltteer be at the rghit pclae.  The rset can be a ttoal mses and you can sitll raed it wouthit a porbelm.  Tihs is besauae ocne we laren how to raed we bgien to aargnre the lteerts in our mnid to see waht we epxcet to see.  The huamn mnid deos not raed ervey lteter by istlef, but preecsievs the wrod as a wlohe.  We do tihs ucnsoniuscoly wuithot tuhoght.
    But our ability to see patterns can become fixed
  • 14
    It is important to make time for other people’s ideas …
    No! I can’t be bothered to see some crazy innovation. We’ve got a battle to fight!
  • 15
    Agenda Items
    Introduction
    Diversity is crucial
    IBM innovation programmes – used with clients
    Repeatable approaches to innovation
    Case studies and examples
    Innovation that Matters
  • 16
    It’s all about People …
  • 17
    Get a different perspective
    Collaboration and Diversity within Teams is important here
    17
  • 18
    Demographics and the Digital Divide
    The new generation is huge, 90 million people in the US alone. Already there are more of them around than there are baby boomers.Beck and Wade
    Today’s “Digital Native”
    • over 200,000 emails and instant messages sent and received
    • over 20,000 hours watching TV (a high percentage fast speed MTV),
    • over 10,000 hours playing videogames
    • over 10,000 hours talking on digital cell phones
    • and, at the very most, 5,000 hours of book reading
    Source: Prensky - Digital Natives, Digital Immigrants
    Digital Immigrants
    Digital Natives
    • 81% of the business population age 34 or younger are gamers
    • 56 million are old enough to be employees
    • 7 million are already managers in the current workforce
    Sources: Merrill Lynch 1999, Beck and Wade, Got Game., Prensky, Digital Game Based Learning
  • 19
    Virtual World, Real Leaders
    "If you want to see what business leadership may look like in three to five years, look at what’s happening in online games."— Byron Reeves, Ph.D., the Paul C. Edwards Professor of Communication at Stanford University and Co-founder of Seriosity, Inc.Online
    Online gaming environments creates leaders who are good at:
    Focusing on getting the problem solved and the associated incentive
    Juggling multiple real-time sources of information upon which to make decisions
    Taking into account skills and competencies among co-players
  • 20
    Beyond the Organizational chart
    Organization charts are not the best indicator of how work gets done
    Senior people are not always central; peripheral people can represent untapped knowledge
    Making the network visible makes it actionable and becomes the basis for a collaboration action plan
    Source: Cross, R., Parker, A., Prusak, L. & Borgatti, S.P. 2001. Knowing What We Know: Supporting Knowledge Creation and Sharing in Social Networks. OrganizatiSNAl Dynamics 30(2): 100-120. [pdf]
  • 10/27/2010
    21
    SNA enables improvements by making the issues that affect social networks visible
    Improving Social Networks
    Examples of Possible Interventions
    Target of Intervention
    Type of Issue (Examples)
    • Implement metrics which promote teaming (e.g., sales goals that include combined offerings from each subgroup)
    • Create new communication forums to keep subgroups in touch with each other (e.g., status calls, e-mail updates, project tracking databases)
    Organizational Level
    • Boundaries create several distinct sub-groups within one network
    Leadership Level
    • Staff project with people from each subgroup
    • Distribute decision-making away from single point
    • Create ways to engage the under utilized, loosely connected people
    • Improve breadth of awareness across extended team
    • Highly central people are bottlenecks
    • Expertise of peripheral people is not leveraged
    • Mentor people who are new to the company or group
    • Promote interaction with people beyond departmental boundaries
    • Individuals are overly dependent on one person
    • People are not reaching out beyond their department
    Individual Level
  • 22
    SNA applies to a broad range of business problems
    Promote innovation
    Example: An R&D group seeking to improve innovation conducts an SNA to ensure that key expertise inside and outside the group is being effectively leveraged
    Enhance productivity
    Example: An HR group conducts a SNA as part of a new rapid on-boarding initiative to speed the transformation of new hires into productive employees
    Increase efficiency
    Example: A client facing team that needs to share information across the geographies to respond rapidly to client needs conducts an SNA to find the information hubs and where information is getting stuck
    Example: A senior management team concerned that decisions are not being followed through, conducts an SNA to understand where information and decisions are getting blocked
  • 23
    Building Effective Virtual Teams
    The Challenge…
    2 weeks – time it takes to build trust in the electronic comms world
    4 times as long to communicate a message electronically vs face-to-face
    64% of communication is non verbal. Without visual cues messages can be easily misinterpreted
    17 weeks – time lag for culturally diverse teams to begin outperforming single-culture teams
    Ref: Pearn Kandola (Occupational Psychologists)
    Research Report September 2006
  • 24
    Cultural Differentiators
    Monochronic/Polycronic
    Power Distance
    Individualism vs. Collective
    Masculine vs. Feminine
    Uncertainty Avoidance
  • 25
    Agenda Items
    Introduction
    Diversity is crucial
    IBM innovation programmes – used with clients
    Repeatable approaches to innovation
    Case studies and examples
    Innovation that Matters
  • Computer Science
    Electrical Engineering
    Materials Sciences
    Mathematical Sciences
    Physics
    IBM Research worldwide – 3,200 people in 8 labs
    • 5 Nobel Laureates
    • 8 National Medals of Technology
    • 5 National Medals of Science
    • 6 Turing Awards
    • 21 Members in NationalAcademy of Sciences
    • 59 Members in National Academy of Engineering
    • 10 Inductees in NationalInventors Hall of Fame
    Behavioral Sciences
    Chemistry
    Service & Management Science
  • 27
    Huge range of innovation and delivery capabilities
    IBM Innovation Centres
    IBM Software Labs
    IBM Systems & Technology Labs
    IBM Design Centres
    IBM Benchmark Centres
    IBM Innovation Centres for Business Partners
    IBM Executive Briefing Centres
  • Introducing the GTO and other tools to understand technology and business trends
    Global Innovation Outlook
    Global Technology Outlook
    Institute for Business Value
    • Identify top emerging technology trends & IBM business opportunityin the next 3 to 10 years
    • Direct influence on IBM’s technical strategy – lists IBM exec actions
    • Many versions (short / long – internal / external – industry-specific)
    • Not published externally, but client version available
    • Fact based thought leadership from IBM Global Services that help clients realize business value
    • 3 to 10 year industry and/or functional area outlook with action oriented next steps
    • CXO Surveys and joint work with Economist Business Intelligence Unit
    • Publically available at ibm.com/iibv
    • Start a dialogue about innovation, business transformation and societal progress
    • Collaboration across a global ecosystem of experts
    • Business, academia and political leaders
    • Publically available at ibm.com/gio
    28
  • 29
    Agenda Items
    Introduction
    Diversity is crucial
    IBM innovation programmes – used with clients
    Repeatable approaches to innovation
    Case studies and examples
    Innovation that Matters
  • 30
    Joint Innovation
    Partnership Programme
    (e.g. VCC / iTeam)
    Innovation Consulting
    and Assistance
    Innovation
    Facilitation Programme
    (e.g. DVLA, DEFRA
    Innovation
    Workshops / Events
    Specific Innovation
    Delivery Projects
    Joint Innovation
    Council with Client
    Range of Approaches to Joint Innovation with Clients
    High level of Commitment
    (IBM/Client)
    Full program tailored for the client
    Joint Idea Management
    Wide portfolio of innovation projects
    Full Partnership
    Strategic
    Various progression paths possible
    High level of partnership with
    delivery commitment
    Small / Large projects but no program
    Strong partnership but
    no delivery commitments
    One off Advice / Consultancy
    Limited Commitment
    (IBM/Client)
    Standard IBM Offerings
    Ideas from only one Source
    Simple Innovation Projects
    Sponsorship, but no
    delivery commitment
    Tactical
    Little partnership
    Mainly thought leadership
    One-Off Innovation
    Activities
    Ongoing Innovation
    and Partnership
  • 31
    Innovation ideas, input and delivery from an extensive range of internal and external sources
    Client CIO & GIS communities
    Client idea management
    Client business and technical teams
    IBM Client Account Team
    IBM Extreme Blue Programme
    IBM Research
    Centres
    Client IDEATION and
    Innovation JAM
    Research Advocate
    Client Alliances and Partnerships
    IBM VCC Briefings
    IBM Global Innovation Outlook & Global Technology Outlook
    Joint Innovation Discovery / Theme Workshops
    Client Technology Vendors
    IBM Institute for Business Value
  • 32
    Innovation Sourcing – Putting Ideas into Action (rapidly)
  • 33
    Key Areas of the Blueprint Document
    Mission
    Guiding Principles
    Scope
    People – Roles and Responsibilities
    Process
    Tools
    The Innovation Agenda and Initiative Selection
    Governance
    Funding Model
    Communication Plan
  • 34
    VCC Critical Success Factors
    Working as a Joint IBM / Client Team
    Effective / Staffed Core Team
    IBM, IT & Business Unit Involvement
    Client buy-in to the selected focus areas
    Working with the Strategy & Architecture Teams
    Selecting the right ideas
    Appropriate Risk from an IBM and Client Perspective
    Strategic for IBM & Client
    Valuable from a Client IT or Business perspective
    Able to implement quickly – need some quick wins
    Having an effective governance and decision making process in place
    Clear sponsorship for the specific initiatives to be progressed
    Setting the right expectations for the VCC
    Communicating the VCC vision, scope and activities
  • 35
    Agenda Items
    Introduction
    Diversity is crucial
    IBM innovation programmes – used with clients
    Repeatable approaches to innovation
    Case studies and examples
    Innovation that Matters
  • 36
    “SMS for Life”
  • 37
    “SMS for Life” … The Problem …
    Over 1m people die of malaria in sub-Saharan Africa each year
    About 2.7m per year globally
    Tanzania has the highest death rate in all of sub-Saharan Africa
    Around 380 per day
    80% of these are children under 5
    Anecdotally, 40% of health facilities are thought to be out of stock of anti-malaria drugs at any one time
  • 38
    Solution Overview
    Process flow documented on the poster provided to each of the health facilities
    Application provided by Matssoft under contract to Vodafone
    UK company
    Application hitherto used to manage insurance quote workflows
    Vodafone manages Telco requirements
    Vodacom Tanzania
    PUSH, the local aggregator
    And also the technical incident management process
    IBM provides project management
  • 39
    Agenda Items
    Introduction
    Diversity is crucial
    IBM innovation programmes – used with clients
    Repeatable approaches to innovation
    Case studies and examples
    Innovation that Matters
  • 40
    Do one brave thing today … then run like hell !
    Fortune favours the brave !!
    40