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Driving Innovation Through Networks

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Presentation made at the ASQ World Conference on Quality and Improvement, at Anaheim, CA, on May 21st, 2012.

Presentation made at the ASQ World Conference on Quality and Improvement, at Anaheim, CA, on May 21st, 2012.

Published in: Business, Technology

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  • 1. M03Driving Innovation Through Networks WCQI Concurrent Session Monday, May 21st, 2012, 1:30pm – 2:30pm Mr. Mr Alexis Goncalves Director, Innovation Catalyst, Pfizer Inc. ASQ Fellow, ASQ Director at Large 2008-2012
  • 2. Session Objectives• Discuss four operating principles that enable Innovation Networks to prosper• Present the different roles necessary to ensure the success of Innovation Networks• Overview of the day-to-day operation of Pfizer’s Innovation Networks• Discuss how a company can establish a culture of knowledge sharing
  • 3. Innovation Communities (IC) at Pfizer  Internal platform launched by Pfizer in early 2009  20,000+ users visited  12,000+ ideas submitted  36,000+ comments on ideas  Operating principles: 1. The Wisdom of Crowds 2. The Medici Effect 3. The Long Tail of Innovation 4. Network Behaviors
  • 4. Four Operating Principles 1. The Wisdom of Crowds 2. The Medici Effect 3. The Long Tail of Innovation 4. Network Behaviors
  • 5. 1. The Wisdom of Crowds
  • 6. 2. The Medici Effect “In Italy for 30 years under the Borgias they had warfare, terror, murder, and bloodshed, but they produced Michelangelo, Leonardo da Vinci, and the Renaissance. In Switzerland they had brotherly The Third Man* on love - they had 500 years of Innovation democracy and peace, and what did that produce ? The cuckoo clock.”* Graham Greene wrote the book and screenplay. Orson Welles ad-libbed just one line -- this, the most memorable one of the film.
  • 7. 3. The Long Tail of InnovationThe Long Tail was popularized by Chris Anderson in an October 2004 Wired magazine article, in which he mentioned Amazon.com, Apple and Netflix asexamples of businesses applying this strategy. Anderson elaborated the concept in his book The Long Tail: Why the Future of Business Is Selling Less of More.
  • 8. 3. The Long Tail of Innovation The best sellers that Barnes & Nobles will have in stock. hundreds that sell many each weekly The “long tail” that only sales iTunes or A iT Amazon can afford to deliver. tens of thousands that sell a few each rank of song or book
  • 9. 3. The Long Tail of Innovation the Head is defined by the point where the revenue per book drops below the cost of carrying it. the Tail is made possible by dropping carrying costs 10x, 100x, or more. weekly Internet technology is the big sales enabler. cost of carrying a book rank of song or book
  • 10. 3. The Long Tail of Innovation • Someone has a business problem. • The people “nearby” are good & have useful ideas.
  • 11. 3. The Long Tail of Innovation • Someone has a business problem. • The people “nearby” are good & have useful ideas. • By reaching “farther out”, the density of people with useful ideas goes down…
  • 12. 3. The Long Tail of Innovation • Someone has a business problem. • The people “nearby” are good & have useful ideas. • By reaching “farther out”, the density of people with useful ideas goes down… • ..but the total number goes up. This is the long tail of new ideas. • It is the low cost, huge reach, and diversity of content that make the Long Tail practical and valuable.
  • 13. Not just more, but more diverseReaching out bringsmore, and more your localdiverse voices. team internal customers and stakeholders your sales forceScale and risk rise, but externalcan be readily customersmanaged.
  • 14. 3. The Long Tail of Innovation – Pfizer 3 Years Data Ideas + Comments Received, • It’s nothing like a Pfizer Idea Farm, 2006-2008 2,500 bell curve eople entering this many, in 5-idea bins) 2,000 • Classic statistics how often it occurs 1,500 is useless. • S Some people l(number of pe n n 1,000 enter no ideas, 500 some enter hundreds. The 0 0 100 200 300 range is huge. ideas per author
  • 15. 3. The Long Tail of Innovation – Pfizer 3 Years Data 200 challenges, 12,700 ideas, 3180 authors linear graph 1,000 log-log ideas per author 100Log-logLog log plots showthe tail clearly.A straight line on alog-log graph has the 10form y = Cx-b ,a power law. 1 1 10 100 1,000 10,000 author rank
  • 16. 3. The Long Tail of Innovation – Pfizer 3 Years Data 200 challenges, 12,700 ideas, 3180 authors 1,000 100%The “area under thecurve”, thecumulative total of all 80% cumulative perce of ideasentries, reminds us ideas per authorhow many people are 100in the tail. 60% ent r 40% 10 20% 1 0% 1 10 100 1,000 10,000 author rank
  • 17. 3. The Long Tail of Innovation – Pfizer 3 Years Data The people “in the challenges, 12,700 ideas, 3180 authors 200 1,000 100% tail” contribute 80% of all ideas and value. 80% cumulative perce of ideasThe top 1% ideas per author(30 of 3180) 100 60% entcontribute 20% of rall ideas. 40% 10 20% 1 0% 1 10 100 1,000 10,000 author rank
  • 18. 4. Network Behaviors Jane Pete Jane and Pete have the same number of colleagues in theirnetworks, but these colleagues are connected in different ways. Who is likely to have more good ideas? Why?
  • 19. Innovation Communities: Decentralizing Innovation + + Network Strategic Challenges Process and Support “White spaces” are best  Leaders can “pull” ideas by  Toolkits and templates to explored by networked linking challenges to assist in solution building communities strategic objectives  Learning and training to Bridging silos to leverage  Networks will mobilize in build individual capacity diversity promotes maximum areas of need performance  Visibility of activity with reporting and metrics
  • 20. What can you do on Innovation Communities?Network and Form Challenge for Suggest Ideas Communities Solutions Form Teams Sponsor Ideas Develop Business Cases
  • 21. The Different Roles Colleague Manager Senior Leader Engage with  Form high-performing  Gain visibility and colleagues teams quickly track ideas Learn about and  Help teams collaborate  “Pull” ideas for contribute to the and deliver value strategic challenges, business bridge white spaces  Be a more effective Be recognized for manager by knowing  Communicate strategic delivering value more about your team challenges to targeted to Pfizer members communities  Engage and award
  • 22. How Does “Pat” Use Innovation Communities?Pat is a Pfizer employee with lots of ideas,energy, and passion for PfizerShe logs ontoIC.Pfizer.comFills out her profile and e-Healthjoins thecommunity
  • 23. Pat networks and engages with otherse-Health community leaderposes a challenge tosolve patient complianceusing e-Health proposes anPatidea and discusses itwith community membersShe shares the discussion with her bossand network of contacts
  • 24. Pat assembles cross-functional teams Pat receives community encouragement to promote her idea into a project and form a team Recruits a colleague with finance experience and a market research expert i d k t h t to further develop the business case Pat’s team develops a compelling business case and a BU leader sponsors the team
  • 25. Pat finds sponsors to test her ideas The team receives some funding for primary research to validate the business plan The sponsor approves a pilot with additional funding, and directs Pat to more internal and external partners runs the pilot andThe teamreports the results to thesponsor through the platform
  • 26. Pat’s sponsor uses ICs to grow his businessThis is Pat’s sponsorHe uses a dashboard for visibilityand tracking status of the mostinteresting teamsWhen he finds a promising project likePat’s, he suggests improvementsto the team, connects the team toother experts, or funds pilotprograms
  • 27. Pat creates value for Pfizer using Innovation 2.0 The sponsor recommends the team for “Innovation the annual Excellence Award” presents the pilot Pat results with her team at the BU annual off-site and receives more positive responses to develop an operating business plan Pat, her team, the sponsor, and Pfizer are all winners!
  • 28. “Pat” Innovates Today for Pfizer’s Tomorrow1 Connect and engage2 Propose ideas3 Collaborate in teams and communities4 Launch projects, develop business cases, and seek sponsorship5 Innovate and be rewarded
  • 29. A Transparent Innovation Tracking Platform Staging Discovery Development Scale-up Transparent tracking along the  Minimize duplication of ideas and workflow stages projects Filtering by Business Unit,  Prioritize top opportunity areas Community, Geography  Encourage activity in addressed Visibility at Colleague, Manager and opportunities Senior Leader level
  • 30. Session Objectives• Discuss four operating principles that enable Innovation Networks to prosper• Present the different roles necessary to ensure the success of Innovation Networks• Overview of the day-to-day operation of Pfizer’s Innovation Networks• Discuss how a company can establish a culture of knowledge sharing
  • 31. Q&A
  • 32. SEE MORE INSIDE THIS BOOKBook “Innovation Hardwired”Available atAuthorAlexis P. GoncalvesJoin my Networkhttp://www.linkedin.com/in/goncalves
  • 33. M03Driving Innovation Through Networks WCQI Concurrent Session Monday, May 21st, 2012, 1:30pm – 2:30pm Mr. Mr Alexis Goncalves Director, Innovation Catalyst, Pfizer Inc. ASQ Fellow, ASQ Director at Large 2008-2012