Innovating Enterprise Innovation

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Innovation is one of the key enablers for European enterprises to compete in global markets. The term ‘innovation’ is constantly used in speeches of managers, politicians, public administrators. However, in the large majority of cases, the term is used as a generic 'place holder', a sort of container whose actual content is left to the intuition. For this reason it is important to deeply elaborate, specifically on the notion of Enterprise Innovation, to better understand the essence and meaning of innovation.

Innovation stems from a virtuous mix of intuition, creativity, and a solid background knowledge. Each innovation endeavour has its own characteristics, largely different from previous experiences. It falls in the category of ‘wicked problems’, i.e., problems difficult to solve because of incomplete, fuzzy, changing requirements. Nevertheless, there are recurring patterns and it is possible to conceive systematic methods, and supporting information systems, to promote and manage innovation avoiding the risk to close it in a ‘cage’, risking depressing the fundamental creativity and fantasy. This talk will present an innovative framework for enterprise innovation that includes a methodology and an innovation management platform which is based on an generic behavioural pattern (i.e., independent of the industrial sector), a strong knowledge orientation, and an innovation monitoring system funded on a number of Key Performance Indicators, to constantly keep the progress of the innovation project under control.

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Innovating Enterprise Innovation

  1. 1. ©BIVEE PROJECT 2013 WP8 Update Geoff Ward March 2013 1 Innovating Enterprise Innovation Michele Missikoff 1 Università Politecnica delle Marche and CNR Lab for Enterprise Knowledge and Systems Alpen Adria University, Klagenfurt, 15th May 2014 This work has been partially supported by the BIVEE European Project, Grant n. 285746
  2. 2. ©BIVEE PROJECT 2013 WP8 Update Geoff Ward March 2013 2 Objectives of this talk Do not convince you that Innovation is important Innovation is difficult, risky, often costly Show that we need to change the way we carry on Innovation Provide some clues where to go ... Target: Complex organizations Networked SMEs Large, distributed enterprises Articulated Public Institutions
  3. 3. Vision To overcome the crisis, EU enterprises need a deep change Introducing continuous improvement and innovation to remain competitive in the globalised economy Sustainable Innovation rather than expansive innovation We need to put Knowledge in the center, to guarantee Continuous alignment of Business needs and Enterprise Software Applications in ever changing enterprises 3
  4. 4. ©BIVEE PROJECT 2013 WP8 Update Geoff Ward March 2013 4 What is Innovation? “The act of introducing something new “ (TheFreeDictionary) “The term innovation can be defined as something original and new that ‘breaks in to’ the market or into society.” (Wikipedia) “Innovation is crucial to the continuing success of any organization” (Oxford Dictionary)
  5. 5. ©BIVEE PROJECT 2013 WP8 Update Geoff Ward March 2013 5 Some quotations ... Innovation is a knowledge intensive endeavour (BIVEE) Knowledge is the fuel, but it achieves the miracle! The more you use it the more you have it!! (BIVEE) If I had 20 days to solve a problem, I would spend the first 19 to define it. (A. Einstein)
  6. 6. Summarising ... few key questions Questions are more important than answers... What are the key needs for manufacturing / service innovation today? What are the main boosters / hindrances? What is the interplay between human intelligence and supporting technologies? Where is the border between open knowledge and new ideas protection? What can we measure about innovation? Cost? Expected benefits? Chances of success? What are the methods/tools already adopted today? What do you see in the future? 6
  7. 7. What is Business Innovation? Business Innovation is a designed, managed sustainable transformation of some aspects of the enterprise (or the society, the city, etc.) aimed at a substantial change of: • The nature/quality of delivery products (goods, services), improving customer satisfaction • Production processes and workers satisfaction • Cost reduction and/or revenue raise • The Marketing Strategies / Scope 7
  8. 8. Business Innovation: Where? • Products (goods / services) • Production / Admin processes • HR competencies, skills, capabilities • Organization models, with new delegation patterns • Enterprise information organization and flow • Markets and marketing styles • Customer relationships • Suppliers and partners strategies and management • Technology adoption, deployment, renewal strategies and practice • Financial and control styles, methods, and tools • Quality of working life and ambient • Relationships with the territories, the people, the environment, local cultures 8
  9. 9. Understanding Innovation 9 (GregSatell,http://www.digitaltonto.com)
  10. 10. Business Innovation: How? push-mode and technology driven, when generated on the supply side; pull-mode and demand driven, when requested by the market/demand side; co-creation, when all the stakeholders cooperate together to generate product or process innovation. Endogenous, when ideas come from within the Ecosystems Exogenous, when ideas come from the rest of the World 10
  11. 11. Risks in innovation 11 Can we avoid? ... or at least minimise? ... or at least keep all the process under control?
  12. 12. Enabling Business Innovation • Create the right environment, working conditions • Grassroots innovation (beyond Toyotism ...) • Open innovation (but controlled), with systematic and ad-hoc relationships with • universities , research centres, partners, suppliers and customers • Facilitate info / knowledge / ideas circulation within and outside the enterprise • Culture of cooperation (tools & rewarding system) • Scouting Technology Market Excellence centres • Observatories on opportunities, problems, threats, ... 12
  13. 13. Innovation New Knowledge Knowledge about • New ideas, reserch results, patents, ... • enterprise and its organization • competencies, skills, and capabilities • problems and improvement opportunities • products and services • production processes, methods • Technologies, systems, and resources • Markets, clients, partners and competitors 13
  14. 14. ©BIVEE PROJECT 2013 WP8 Update Geoff Ward March 2013 14 Business Innovation in Virtual Enterprise Environment Virtual Enterprise Environment Value Production Space Virtual Innovation Factory Business Innovation Space 14
  15. 15. Innovating Innovation Towards Open Innovation A systematic approach to Innovation, nurturing creativity and ideas generation Innovation as intangible goods ‘Manufacturing’ approach to Innovation The need of new production/organization models Manage the full Knowledge Cycle (including Tacit Knowledge, see Nonaka) Virtual Innovation Factory (VIF), operating in the Innovation space 15
  16. 16. BIVEE Philosophy Consolidating BIVEE Framework specifications • Key elements: people, ideas, communication, collaboration, social behaviour, communities • Full Value Chain: from innovation to production improvement • Innovation as an iterative, goal-oriented, venture based on 4 Waves: Creativity, Feasibility, Prototyping, Engineering • Monitoring & Assessment: integrated formal (KPIs) and informal (social & crowdsourcing) approaches • Integration of Human (informal, document-based) & Computer (formal, semantics-based) Knowledge 16
  17. 17. People first, then business and technology (http://www.thecontenteconomy.com/) 17
  18. 18. Enterprise Model 4 BusInnov 18 BUSSINESS innovation STRATEGY innovation MARKETING innovation PRODUCT innovation SERVICE innovation PROCESS innovation TECHNOLOGY innovation ORGANIZATIONAL innovation (Scource: BIVEE Deliverable D2.1)
  19. 19. ©BIVEE PROJECT 2012 WP8 Update Geoff Ward 10 – 13 July 2012 19 Innovating Innovation Business Innovation Reference Framework (BIRF): the principles for Virtual Innovation Factory operations Innovation as a new form of ubiquitous Semantic nurturing, rather than ‘Knowledge Management’ Waves (rather than processes): Creativity, Feasibility, Prototyping, Engineering Innovation Monitoring Framework: I-KPIs & W4+ semantics: What, Why, Who, When, Where, (How) Focused Innovation Targets: Goods, Services, Processes, Technologies Goal oriented approach, instantiated in Documents Semantically enriched Documents for knowledge sharing Innovation-oriented Ontologies
  20. 20. BIVEE Tech Solutions • A Virtual Enterprise Environment, to be integrated with existing Enterprise Software Applications (ESA) • Distributed, collaborative, knowledge-intensive framework • A Platform for networked, interoperable virtual/real enterprises • To be used directly by Business Experts, pushing for disintermediation (wrt techies) in innovation KM • Shared Semantic Whiteboard, to guarantee a single ‘ideas shopping’ point. • Proactive subject-driven knowledge provisioning • Innovation Observatory to push Open Innovation, Crowdsourcing, … 20
  21. 21. Virtual Innovation Factory • Virtual Innovation Factory set up – Definition of objectives: a) Problem-driven, e.g., proposed by a customer b) product-driven, e.g., proposed by staff experts c) tech-driven, e.g., proposed by staff / external player – Create a VIF with its Manager – Create the Innovation teams: composition, organization, competencies & roles, etc. – Acquire the material and financial resources – Start the ad-hoc Collabrative Innovation Plan 21
  22. 22. ©BIVEE PROJECT 2013 WP8 Update Geoff Ward March 2013 22 BIVEE Innovation Waves 1. Creativity: Ideas 2. Feasibility: Numbers 3. Prototyping: Tech viability 4. Engineering: Industrial viability
  23. 23. ©BIVEE PROJECT 2013 WP8 Update Geoff Ward March 2013 23 In A problem, coming from the field A new technology, methodology A new Market Need / Opportunity Reports from previous experiences in the field, similar problems Out Proposed Idea; Sketch of a Solution Innovation Project Approval (KPIs); VIF Created
  24. 24. ©BIVEE PROJECT 2013 WP8 Update Geoff Ward March 2013 24 VIF Start to work Analysis of previous experiences Enrich the sketch of solution Technical and commercial feasibility Feasibility KPI analysis Preliminary tech design Assessment and Go/NoGo decision Needed resources and Budget consolidation
  25. 25. ©BIVEE PROJECT 2013 WP8 Update Geoff Ward March 2013 25 Engineering team consults with suppliers and acquires the new components alternatives are tested, searching also tests performed in other laboratories The final prototype specs are produced Prepare blue print & Test reports KPI analyse for Go/NoGo decision
  26. 26. ©BIVEE PROJECT 2013 WP8 Update Geoff Ward March 2013 26 Analyse prototype specs and test results Perform cost analysis of part replacement Production plans Bill of Material Business / Production Processes Final Industrial Blueprint
  27. 27. Virtual Innovation Factory 27 SS Whiteboard Innovation Diary Doc Network W1 W2 W3 W4 DocOnto DomOnto BusOnto PerOnto ! Idea AROnto ProcOnto Final Innov
  28. 28. Conclusions The main ideas on a new approach for Innovation have been presented Future innovation needs to be addressed as a Knowledge Management venture But traditional KM is not suited for the purpose We need to revisiting the existing KM solutions Ontologies and Semantic Wikis are promising tools, together with social media and cooperation tools (in Open Innovation) But human intelligence and creativity remains the key pillar 28
  29. 29. ©BIVEE PROJECT 2013 WP8 Update Geoff Ward March 2013 29 Engineering (It) BIBA (De) BOC (At) ATOS (Es) CNR (It) UnivPM (It) TAL (UK) SRDC (Tr) AIDIMA (Es) Loccioni - GI (It) Credits • Large part of the content of this talk has been elaborated within the European Project BIVEE: Business Innovation in Virtual Enterprise Environments. • BIVEE is a 3 years project (ends Dec 2014) with 4.3 M€ budget and 10 partners : Proceedings: http://ceur-ws.org/Vol-864/
  30. 30. ©BIVEE PROJECT 2013 WP8 Update Geoff Ward March 2013 30 Questions ? Comments?

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