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Mastering the Dynamics of Innovation by Bernt Kristian Jensen and Tore Hundsnes, CapGemini Norway
Mastering the Dynamics of Innovation by Bernt Kristian Jensen and Tore Hundsnes, CapGemini Norway
Mastering the Dynamics of Innovation by Bernt Kristian Jensen and Tore Hundsnes, CapGemini Norway
Mastering the Dynamics of Innovation by Bernt Kristian Jensen and Tore Hundsnes, CapGemini Norway
Mastering the Dynamics of Innovation by Bernt Kristian Jensen and Tore Hundsnes, CapGemini Norway
Mastering the Dynamics of Innovation by Bernt Kristian Jensen and Tore Hundsnes, CapGemini Norway
Mastering the Dynamics of Innovation by Bernt Kristian Jensen and Tore Hundsnes, CapGemini Norway
Mastering the Dynamics of Innovation by Bernt Kristian Jensen and Tore Hundsnes, CapGemini Norway
Mastering the Dynamics of Innovation by Bernt Kristian Jensen and Tore Hundsnes, CapGemini Norway
Mastering the Dynamics of Innovation by Bernt Kristian Jensen and Tore Hundsnes, CapGemini Norway
Mastering the Dynamics of Innovation by Bernt Kristian Jensen and Tore Hundsnes, CapGemini Norway
Mastering the Dynamics of Innovation by Bernt Kristian Jensen and Tore Hundsnes, CapGemini Norway
Mastering the Dynamics of Innovation by Bernt Kristian Jensen and Tore Hundsnes, CapGemini Norway
Mastering the Dynamics of Innovation by Bernt Kristian Jensen and Tore Hundsnes, CapGemini Norway
Mastering the Dynamics of Innovation by Bernt Kristian Jensen and Tore Hundsnes, CapGemini Norway
Mastering the Dynamics of Innovation by Bernt Kristian Jensen and Tore Hundsnes, CapGemini Norway
Mastering the Dynamics of Innovation by Bernt Kristian Jensen and Tore Hundsnes, CapGemini Norway
Mastering the Dynamics of Innovation by Bernt Kristian Jensen and Tore Hundsnes, CapGemini Norway
Mastering the Dynamics of Innovation by Bernt Kristian Jensen and Tore Hundsnes, CapGemini Norway
Mastering the Dynamics of Innovation by Bernt Kristian Jensen and Tore Hundsnes, CapGemini Norway
Mastering the Dynamics of Innovation by Bernt Kristian Jensen and Tore Hundsnes, CapGemini Norway
Mastering the Dynamics of Innovation by Bernt Kristian Jensen and Tore Hundsnes, CapGemini Norway
Mastering the Dynamics of Innovation by Bernt Kristian Jensen and Tore Hundsnes, CapGemini Norway
Mastering the Dynamics of Innovation by Bernt Kristian Jensen and Tore Hundsnes, CapGemini Norway
Mastering the Dynamics of Innovation by Bernt Kristian Jensen and Tore Hundsnes, CapGemini Norway
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Mastering the Dynamics of Innovation by Bernt Kristian Jensen and Tore Hundsnes, CapGemini Norway

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Presentation during the Gründerskolen Alumni event on September 12 2009. See grunderskolenalumni.wordpress.com. …

Presentation during the Gründerskolen Alumni event on September 12 2009. See grunderskolenalumni.wordpress.com.

Mastering the Dynamics of Innovation by Bernt Kristian Jensen and Tore Hundsnes, CapGemini Norway

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  • 1. Mastering the Dynamics of Innovation A Capgemini Consulting Point of View September 2009
  • 2. Innhold 1. Capgemini Consulting 2. Innovation introduction 3. Norwegian CEO’ s on Innovation 4. Learning from others 5. A new Innovation approach emerges 6. Getting innovation right © 2009 Capgemini – All rights reserved 1
  • 3. Capgemini is one of the leading companies globally within Management Consulting and Technology Financially Strong Talent and skills Global presence • Turnover on € 7,7 • 90.000 employees • 300 offices in more billion globally than 30 countries • Noted on the Paris • 3000 i the Nordic • Several branches in Stock Exchange • 600 in Norway the each of the Nordic Countries • Ranked among the top 100 of the most attractive employers (Fortune Magazine) Three strong Capgemini Consulting Technology Services Outsourcing Services service lines • Strategy • Accelerated solutions • AM (Application Management) • Business transformation • Technology consulting and • IM (Infrastructure Management) • Finance & Employee development p • BPO (Business Process transformation • Business solutions Outsourcing) © 2009 Capgemini – All rights reserved 2
  • 4. In Norway, Capgemini Consulting focus on Strategy and Transformation within five sectors Finance & Employee Strategy Transformation Transformation a s o at o Business Strategy Operational Excellence Financial Governance Strategic Marketing Business Transformation Sourcing Advisory M&A and strategic IT strategy and HR Strategy transformation transformation Energy & Utilities Distribution & Financial Services Public Telecom & Media Transport We consult leading businesses and organisations in various sectors in order to help clients make the right strategic choices, transform their businesses and deliver results. © 2009 Capgemini – All rights reserved 3
  • 5. Innhold 1. Capgemini Consulting 2. Innovation introduction 3. Norwegian CEO’ s on Innovation 4. Learning from others 5. A new Innovation approach emerges 6. Getting innovation right © 2009 Capgemini – All rights reserved 4
  • 6. Innovation can be understood both as a process and an outcome, which embodies ideas, conversion of ideas and diffusion that creates an economic impact Innovation is the process from idea, through development, t received b fit I ti i th f id th hd l t to i d benefits: Idea generation Conversion Diffusion CREATIVITY AND ADOPTION INVENTION IMPLEMENTATION The mental phenomena skills, “Converting ideas into something The process of transforming an cognitive ability, structures, culture new and specific with value creating invention into products or activities and/or tools capable of originating potential” in order to successfully create (and subsequently developing) new impact of the invention” ideas, innovation, inspiration or insight insight” We do not classify an invention as an innovation until it has been developed and implemented to an extent where it has an economic impact in an organisation and/or society. © 2009 Capgemini – All rights reserved 5
  • 7. While product innovation receive the majority of investments, business model innovation which has the lowest investment levels offer superior returns Investment levels and returns last 10 years Return on Innovation Financial Process Offering Delivery According to Keeley the average global innovation success rate is 4% Product innovation is by far the largest area of investments, but offer overall very limited returns Business Model innovation is the smallest area System Networking Channel Brand Business Product Performance Service Processes Processes Experience Customer Enabling of investments, but offer superior returns Model Product Core Customer focused innovation in channels, brand and experience offer moderate returns Investment levels In estment le els Returns Ret rns Companies destroy business value by generally focusing too much on product innovation compared to other innovation types ! p yp Source: Calculation based on Prof. Larry Keeley (Doblin Analysis), The Taming of the New, Harvard Business School Press 2004 © 2009 Capgemini – All rights reserved 6
  • 8. Innhold 1. Capgemini Consulting 2. Innovation introduction 3. Norwegian CEO’ s on Innovation 4. Learning from others 5. A new Innovation approach emerges 6. Getting innovation right © 2009 Capgemini – All rights reserved 7
  • 9. While other Nordic countries are considered as innovation leaders, Norway is heading towards the rock bottom of the Innovation Scorecard European Innovation Scoreboard 2007 Scorecard definitions The European Innovation Scorecard is a comparative analysis of innovation performance among EU f Summary Innovation Index is measured on input and output factors, for example Population with tertiary education pr 100 population (input) and European and US patents per million population (output) The secondary axis of the Innovation Scoreboard is the average growth rate of the Summary Innovation Index on the primary axis The countries plotted have been grouped by those that are ‘leading’, those that are ‘average’, those that are ‘catching-up’ and those that are ‘trailing’ Despite the low Norwegian innovation score at an European level, only 4% of interviewed CEO’s p y perceive their company to be lagging behind among their peers. p y gg g g p Source: The European Innovation Scoreboard 2007; Capgemini Consulting CEO Study 2007 © 2009 Capgemini – All rights reserved 8
  • 10. Norwegian CEO’s recognise severe challenges in pursuing innovation types producing high returns Norwegian CEO’s view on innovation Innovation type and returns Product Business performance Model ormance High High Business Product Network system Perceive innovation perfo Level of returns Enabling Customer Process Moderate Moderate Experience Customer Experience Brand Core ed Process Business Business Network Model Brand Product Low Low system Enabling Core Delivery Process Process Product channel performance Low Moderate High Low Moderate High Perceived improvement need Level of investments Source: Capgemin CEO study 2007 Source: Doblin analysis; Keeley Despite a poor Norwegian position o t e EU Innovation Scoreboard, Norwegian CEO’s are confident about their esp te poo o eg a pos t o on the U o at o Sco eboa d, o eg a C O s a e co de t t e basic innovation capabilities in bringing product innovations to the market! © 2009 Capgemini – All rights reserved 9
  • 11. Norwegian companies have challenges across the innovation value chain Idea management in place Idea management in place Norwegian CEO’s highlight a strong presence of new ideas within Norwegian companies 60 % 48 % However, as much as 48% of the interviewed CEO’s 50 % 39 % Idea generation admit there is a lack of a structured process to 40 % capture new id t ideas 30 % 20 % 13 % 39% of interviewed CEO’s claim to have implemented 10 % some sort of ‘idea management system’ 0% To a large Moderate To a small extent extent 48% of the participants cannot quantify their Funding – investments in innovation (Conversion - 68% of the participants fund their innovation within selection) the operations, while only 9% are dedicated project budgets Innovation spending Percentage of revenue spent on innovation Revenue, sales and EBIT are most widely used by 60 % 48 % the participants to measure successful innovation, 50 % 35 % Measurement – but the respondents are not particularly satisfied with 40 % 30 % (Diffusion - impact) the KPIs th KPI 20 % 9% 9% 40% of the respondents find it very hard to measure 10 % successful innovation 0% Can't 0-2% 4-5% 12-13% quantify Source: Capgemini Consulting CEO Study 2007 © 2009 Capgemini – All rights reserved 10
  • 12. Innhold 1. Capgemini Consulting 2. Innovation introduction 3. Norwegian CEO’ s on Innovation 4. Learning from others 5. A new Innovation approach emerges 6. Getting innovation right © 2009 Capgemini – All rights reserved 11
  • 13. Leading Internet and software players have adopted radical innovation methods across the value chain Early Adopters of New Approaches to Innovation Idea generation Conversion Diffusion Cross- In-House External Selection Development Spread Pollination Leverage Leverage Open APIs Multi- Prototypes yp Idea submission Open Source O S data f d t from and platforms functional and beta to top executives and betas teams releases Mashups tives Hack Days and Web 2.0 VC funding Tapping into Consumer- External Code contests Tools for open led ideas - Open Initiat employee developer innovation Innovation ideas communities 20% time Social Distribute Alliances, Leverage networks development co-opetition customer Brainstorming g kit broadly and common Balanced data from Mashupp Sessions standards exploration betas applications Source: Capgemini C4 Lab analysis. Harvard Business Review, “The Innovation Value Chain”, 2007 © 2009 Capgemini – All rights reserved 12
  • 14. En godt kommunisert strategi gir en god ramme for idégenerering Idea generation En godt forankret strategi Idéer som bidrar til å realisere strategien Vi skal bekjempe Vi skal Samle, spre og Vi gjør det enkelt gj økonomisk samarbeide Trender, impulser Trender impulser, ideer og nye brukerbehov videreutvikle å handle riktig kriminalitet aktivt med andre ideer som kan bli til nye tjenester Kontinuerlig evaluere og forbedre Strukturert Velge ut de tjenestene innovasjons- beste prosess konseptene for gjennomføring Levere tjenestene Realisere de beste konseptene © 2009 Capgemini – All rights reserved 13
  • 15. Innovasjon i en stor organisasjon krever dedikerte ressurser som kan kjøre gode prosesser I Skattedirektoratet er det etablert en egen stab som har dette som ansvarsområde Evaluere og utvikle etatens samlede innovative evne Oppgaver Utvikle, samle inn, foredle, utrede og sikre iverksetting av ideer Sette ’Innovasjon’ på dagsordenen i organisasjonsutvikling, leder- og ledelsesutvikling, kompetanse- og personalutvikling kultur- og samspillsutvikling personalutvikling, Ansvarlig for ”idea generation” og ”idea conversion” i nnovasjonsprosessen: Utvikle/utrede Beslutning om Fange idéer Behandle idéer Kvalifisere idéer idéer handling Bidra til å øke innovasjonstakten og utviklingen av nye interne og eksterne løsninger Innovativ og dyktig på forretningsutvikling, analyse og utredning Kompetanse Evne til å engasjere med gode prosesser Struktur og systematikk © 2009 Capgemini – All rights reserved 14
  • 16. Capgemini’s large scale workshop methodology was adjusted in collaboration with Oz’Tel and Vodafone UK to enhance acceleration and creativity in NPD Background for “Collaboration Zone” Experience New product development projects used to take Vodafone and Capgemini modified and 8 months from concept to feasibility stage and compressed the analysis process focusing on 60% of the projects ‘got st ck’ in the process stuck’ acceleration, acceleration collaboration and innovation The result was a reduction of the analysis Based on experience from Oz’Tel in Australia the process from 8 to 2 months model consistent of 4 facilitated events was The model is perceived by Vodafone as positive, designed and implemented at Vodafone creative and fundamental to speeding up the pace of th i b i f their business Collaboration Zone - Model with ‘explore-specify-design-sign off’ logic Week W k1 Week W k2 Week W k3 Week W k4 Week W k5 Week W k6 Week W k7 Week W k8 Event 1 Event 2 Business requirements & Event 3 Event 4 Explore Specify Business model iterations Design Solution design iterations Sign off Further adjustments were required in order to create a “fit” with the Telenor organization and the business processes. g p © 2009 Capgemini – All rights reserved
  • 17. A project manager’s dream world? “Think if… Think all the right experts “Think if… were gathered in one all project place” participants were motivated and ti t d d engaged in the work” “Think if… the analysis phase “Think if... only took 8 weeks” l t k k ” “Think if… you always had decisions could be answers to questions taken continuously to from the steering secure progress in committee” the th project” j t” “Think if… there was a methodology that could solve all this” © 2009 Capgemini – All rights reserved
  • 18. Fast Lane is a collaborative workshop model consisting of four key components together building an accelerated experience The Fast Lane methodology consists of 4 main components: A rigorous facilitation process Improved quality of content Concept design including Use Cases & B i C Business R Requirements i t The Fast Lane concept consists of a Week 1 Week 3 Week 4 Week 5 Event 1 Event 2 Gallery Event 3 Event 4 Specify Scan Act Sign off - sequence of facilitated events which scope 4 hours 6 hours 6 hours 2 hours process work in parallel IS Representatives from different Technical Architecture Design do a s o domains working together in eac g toget e each event drives the quality of content and secures speed and direction in Process Content the process Process Content Environ Securing that all the right people are People ment Environ involved at the same time enables People mentt the team to focus on the right People things, and kill ‘bad’ ideas early Collaborative Highly configurable environment The environment can be developed over time, in the beginning it is phone lines and network ports for project team MAP KEY important to have a dedicated 5’ Round Table Seats 5 – 8 Participants, easily 4’ Si Single Panel Mov eable l P lM bl bl d/ t assembled/stowed d Workstation Workstation Whiteboard Wall Power points 8’ Double Panel Moveable around Workstation Workstation Whiteboard Wall Alternative arc formation the walls of chairs T /C ffe ea o e/ C environment with flexibility to re- Project Team Workstation area) atering workstation Small waste Plant P oto op h c ier bin /P ters rin 2x Entrance organize between different events Plenary Area PRODUCTION Used by Facilitation Team (sits 30) PRODUCTION © 2009 Capgemini – All rights reserved
  • 19. The Fast Lane process is a collaborative event model which seeks to do activities in parallel rather than in sequence Fast Lane is a collaborative workshop methodology based on Telenor’s project model: The Fast Lane design -model consists of a sequence Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 of facilitated events in Event 1 Event 2 Event 3 Event 4 an 8 week period, reducing the analysis d i th l i phase significantly The Fast Lane process seeks to scan the opportunity area early in order to focus right: Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 A rigorous facilitation process Event 1 Event 2 Event 3 Event 4 Scan area of opportunity S f t it Focus on the best ideas Act on the right solutions Bespoke design for every event Scan Focus Act Highly experienced facilitators © 2009 Capgemini – All rights reserved
  • 20. Fast Lane is an iterative process, involving and challenging different domains of the organization by breaking up ‘silo’s’ Concept design including use cases & The approach to Collaboration is iterative business requirements Each Event in the NPD process covers: Business requirements Technical design IS architecture Representatives from different domains working together in each event drives the quality of content and secures speed and direction in the process IS Technical Architecture design Conceptual illustration of involvement from different domains: IS architecture volvement Technical design Business Inv requirements (sub event) (sub event) (sub event) Time Event 1 Event 2 Event 3 Event 4 EXPLORE SPECIFY DESIGN SIGN-OFF SIGN OFF © 2009 Capgemini – All rights reserved
  • 21. Innhold 1. Capgemini Consulting 2. Innovation introduction 3. Norwegian CEO’ s on Innovation 4. Learning from others 5. A new Innovation approach emerges 6. Getting innovation right © 2009 Capgemini – All rights reserved 20
  • 22. Innovation success today requires a marked departure from traditional principles The Innovation Value Chain Idea generation Conversion Diffusion Cross- In House In-House External Selection Development Spread Pollination Prime Source Limited, Partner to Financing Linear Limited to of Ideas is the through Create Dependant on process market onal R&D formal Proprietary Organisation segments or Department D t t Channels Ch l IPR Priorities P i iti Disjoint delivery d li Traditio Ownership platforms Across Teams Ideas can Emerge Collaboration Open Innovation - Financing Based Iterative process Rapid diffusion Anywhere in the across diciplines source ideas on Merit of the Idea across markets Organization externally Prototyping and and platforms Structured ach Adequate, through beta-testing prioritising and Consumer New Approa Provide individual Web 2.0 tools Collaborate freedom to pursue to Evolve Common portfolio End-to-end involvement and management Ownership with fast upgrades own ideas Establish Standards incentives for Single Team Balance Openness to collaboration exploration and Strong consumer encourage exploitation involvement complementary l t projects products Source: Capgemini C4 Lab analysis. Harvard Business Review, “The Innovation Value Chain”, 2007 © 2009 Capgemini – All rights reserved 21
  • 23. Innhold 1. Capgemini Consulting 2. Innovation introduction 3. Norwegian CEO’ s on Innovation 4. Learning from others 5. A new Innovation approach emerges 6. Getting innovation right © 2009 Capgemini – All rights reserved 22
  • 24. Getting innovation right, organisations have to master seven different, but certainly interlinked, dimensions Seven dimensions of innovation success 1 Select the right people to fuel the organisation’s innovative capabilities 2 Apply appropriate organisational levers to develop a culture of innovation 3 Foster creativity and collaboration across divisions and functional silos 4 Bring structure and discipline to all phases in the innovation value chain 5 Leverage data to prioritise projects and maintain a balanced project portfolio 6 Ensure resources and infrastructure to get speed into project execution and project upgrades based on customer feedback 7 Track innovation performance, learn quickly and continuously upgrade practices The road to innovation leadership is demanding, but rewarding ! © 2009 Capgemini – All rights reserved 23
  • 25. Backup Bernt Kristian Jensen Capgemini Consulting Tore Hundsnes Capgemini Consulting Principal | Chief of Staff Managing Consultant | Telecom Media Entertainment Mobile: +47 41 43 18 29 Mobile: +47 46 42 57 78 be t je se @capge bernt.jensen@capgemini.com co to e u ds es@capge tore.hundsnes@capgemini.com co

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