Six hints for building an effective business innovation system

Six Hints for Building an
Effective Business Innovation System

Miguel Sáenz de Viguera Aizpurua
2007 PMI Distinguished Contribution Award
msaenzdeviguera@hotmail.com

November 2010
“Six Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua

Introduction: The Shift of the Economic Paradigm

On August 6, 1991, Tim
On August 6, 1991, Tim The “New Economy”
Berners-Lee (CERN) posted
Berners-Lee (CERN) posted
a summary of the World
a summary of the World • On 1991 the humanity entered in a new era of
Wide Web project on the
Wide Web project on the instantaneous, global diffusion of information
alt.hypertext newsgroup.
alt.hypertext newsgroup. and knowledge at practically no cost, the era of
This date marked the debut
This date marked the debut Internet
of the Web as a publicly
of the Web as a publicly • The “WWW” is the main responsible of the
available service on the
available service on the
Internet.
Internet.
dramatically fast globalization of the economy
and of the appearance of an increasingly wild
He wrote:
He wrote: competition at any industry during the last years.
“The WorldWideWeb
“The WorldWideWeb The main responsible too of the economical
(WWW) project aims to
(WWW) project aims to growth of the emergent countries that ten years
allow all links to be made to
allow all links to be made to ago, practically, didn’t count in the economic
any information anywhere.
any information anywhere. arena and now are in the way of becoming the
[...] The WWW project was
[...] The WWW project was
started to allow high energy winners
started to allow high energy
physicists to share data,
physicists to share data, • In the New Economy, for the Companies of the
news, and documentation.
news, and documentation. EU and USA, from now and for the future, it is
We are very interested in
We are very interested in not possible competing by cost. Competing by
spreading the web to other
spreading the web to other quality becomes more and more difficult each
areas, and having gateway
areas, and having gateway day for them. Business Innovation is, the only
servers for other data.
servers for other data.
Collaborators welcome!"
Collaborators welcome!"
way that they have to get a sustainable
competitiveness
“Six Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua 1/30

What are we speaking about when we mention Business Innovation?

When Speaking about Business Innovation, we
refer ourselves to Product Innovation, Innovation
of Processes and Innovation of the Business
Model, all together

The Innovation of the Business Model, many
times the most critical Innovation, also called
Business Transformation, demands transforming
the Key Processes of the Organization and/or its
Primary Infrastructure

Most of these Transformations are Enabled by
the Efficient Use of the New Technologies


Why Companies Need Innovation Management Systems?
Managing the Paradox between Creative Improvisation and Discipline

“I define creativity as the entire process by which ideas
“I define creativity as the entire process by which ideas
are generated, developed, and transformed into value.
are generated, developed, and transformed into value.
Since it is a process, it can be planned and managed”
Since it is a process, it can be planned and managed”
“Moreover, when we add information technology to the
“Moreover, when we add information technology to the
mix of creativity and knowledge, we get a particularly
mix of creativity and knowledge, we get a particularly
potent combination: capabilities to represent, deploy and
potent combination: capabilities to represent, deploy and
track knowledge coupled with technologies to promote
track knowledge coupled with technologies to promote
Professor John Kao
Harvard Business School
collaboration across divergent disciplines and
collaboration across divergent disciplines and
MIT Media Lab. perspectives. When properly managed, the combination
perspectives. When properly managed, the combination
results in creative combustion”
results in creative combustion”
“Innovation is about implementation. Being creative and
“Innovation is about implementation. Being creative and
maybe even radical does not necessarily mean success”
maybe even radical does not necessarily mean success”
“The ambiguity, complexity and improvisation of creative
“The ambiguity, complexity and improvisation of creative
organizations require specially tailored managerial
organizations require specially tailored managerial
systems and processes, to transform creative ideas into
systems and processes, to transform creative ideas into
value and discipline for its implementation”
value and discipline for its implementation”

Professor John Kao
Professor John Kao


First Hint: “Innovate your Business Strategy”

Strategy Innovation is about
challenging existing industry methods
of creating customer value, in order to
meet newly emerging customer needs,
add additional value, and create new
markets and new customer groups for
the organization


Why Innovating the Business Strategy?

• All countries and industries are now suffering the “New
Economy” of wild, global competition
• Changes of the business environment and the competition are
dramatically deeper and faster each day
• In the New Economy, the new paradigm, the old models for
business strategic analysis and planning are not more valid
• But… Business Strategy should drive the Business Innovation
Effort

In the new economy, business strategy should be defined,
evaluated and refined frequently, through the application of the
last best proven models, tools and techniques for business
strategic analysis and planning


Focus your innovation strategy on the new strategic options for your business

1980 2001
Michael Porter Arnoldo C. Hax Dean L. Wilde II
Harvard Business School MIT Sloan School of Management
“Competitive Strategy” “The Delta Project”
The New
Strategic System
Lock-In

Options
Distinct
Strategic
Positions
Total
Customer Best
Solutions Product

Generic Strategies The “Delta Model”

Traditional Economy The “New Economy”
The “New Economy”
Traditional Economy Three Distinct Strategic Options
Three Distinct Strategic Options
Two Generic Competitive Strategies
Two Generic Competitive Strategies Best Product
Best Product
Cost Leadership
Cost Leadership Total Customer Solutions
Total Customer Solutions
Product Differentiation
Product Differentiation System Lock-in
System Lock-in


The Delta Model: The Three New Distinct Strategic Positions
(Arnoldo C. Hax & Dean L. Wilde II, MIT Sloan School of Management)
Management)

System Lock-In
Based on: System Economics
Strategy: Market Dominance
Objective: Achieving Complementors Share

Mostly Enabled
through Effective
Use of Technology

Total Customer Solutions Best Product
Based on: Customer Economics Based on: Product Economics
Strategy: Cooperation Strategy: Best than Competitors
Objective: Achieving Customer Share Objective: Achieving Product Share


The Three New Distinct Strategic Positions,
Main Features and Compared Sustainability

System
Focus on the “Full System”
Lock-In as the Relevant Scope to get Power
(The Business, Customers, Suppliers and
Complementors)
Key Strategic Driving Force
Gaining Complementors Shared as the
main objective because they are the
Increased Basis for the Consolidation of the Power
Sustainability
Total
Customer Best
Solutions Product
Its Aim is a Unique Value Proposition to Emphasize Product Orientation
Individualized Customers by means of a
Customized Portfolio of Products and Services Key Driving Forces
• Supply Chain Efficiency (Cost & Quality)
Key Driving Forces • New Product Development Capability
• Careful Segmentation of the Customers’ Base • Securing of Distribution Channels
• Joint Development Efforts with Customers and Key
Suppliers guided by the Individual Customer Threat
Expectations Commodization


Some Strategies towards the New Strategic Positions

System Most of the
Most of the
Lock-In organizations have
organizations have
Dominant Proprietary not a dominant
not a dominant
Exchange
Yellow Pages
Standard
Microsoft exchange position,
exchange position,
eBay Intel cannot get the
cannot get the
Exclusive exclusivity of the
exclusivity of the
Channel
Telefónica channels of
channels of
Nespresso distribution that
distribution that
Increased customers use to
customers use to
Strategy avail themselves of
avail themselves of
Horizontal Sustainability their products and
their products and
Low Cost
Breadth
Fidelity Easy Jet, Clickiair either, not have
either, not have
Total Air Berlin the possibility to
the possibility to
Customer Best develop and get
develop and get
Solutions Product the ownership of
the ownership of
the standards of
Redefining the Customer Differentiation
Customer Integration Bang & Olufsen the standards of
Relationship Indra, EDS Sony Wega the industry
the industry
MCI Accenture

Not Every organization has the possibility to reach the
strategic position of “System Lock-In”
“System Lock-In”

“MCI”, an Example of Strategy for Redefining the Customer Relationship


“Fidelity”, an Example of Strategy for Expanding the
Breadth of Products and Services provided to the Customer


Business Strategy for the New Economy, Conclusions

The competencies required to successfully perform in the Best Product
Strategy…
• A Strong Product Base
• A Solid Supply Chain Infrastructure
• Strong Internal Innovation Capabilities…
very often are not enough to create or defend sustainable competitive
advantages in the new economy

“The transformation that any company should undertake to
“The
move away from a Product-Centered Mentality towards a Total
Product-Centered Mentality towards a Total
Customer Solutions Position, and towards a System Lock-In
Solutions Position, Lock-In
Position, if it has possibilities, is a mandatory challenge for all
executives”
executives”
Professor Arnold C. Hax (MIT)
Professor Arnold C. Hax (MIT)

CAF, DANOBAT RAILWAY SYSTEMS and the recent announcement of the
CAF, DANOBAT RAILWAY SYSTEMS and the recent announcement of the
strategic alliance between IKUSI and ORMAZABAL are examples of Basque
strategic alliance between IKUSI and ORMAZABAL are examples of Basque
Companies, strategically trying to move from a position of "Best Product" towards
Companies, strategically trying to move from a position of "Best Product" towards
another one of "Total Customer Solutions", an intelligent strategic movement
another one of "Total Customer Solutions", an intelligent strategic movement


Second Hint: “Implement an Efficient, Idea Management Process”

Implement an Efficient, Structured Process for:
for:

I II III
Encouraging the
Encouraging the Evaluating, Prioritizing
Evaluating, Prioritizing Building an Efficient
Building an Efficient
Generation, Capture and
Generation, Capture and and Selecting the ideas
and Selecting the ideas Development Process that
Development Process that
Refinement of Ideas for
Refinement of Ideas for that have the greatest
that have the greatest Provides Excellence in the
Provides Excellence in the
Innovation from
Innovation from potential to add value to
potential to add value to Development and
Development and
Customers, Employees
Customers, Employees the Business
the Business Implementation of the
Implementation of the
and other Stakeholders of
and other Stakeholders of Selected Innovations
Selected Innovations
your Organization
your Organization Proposals
Proposals


Second Hint: “Implement an Efficient Idea Management Process”
Keys for Boosting the Generation of Innovation Ideas

• Communicate that creativity and innovation have high
priority in the organization. The High Management
demonstrably should boost innovation

If no one believes
• Provide free education and training on creativity and
creative problem solving
that your firm is
serious about • Give to the people free time and other resources
innovation, few (mentoring, space, tools,...) to refine, test, developing the
people will take it concept and presentation for creative ideas
seriously • Reward rather than discourage creative thinking. Show that
If no one knows failures are tolerated, indeed they are seen as valuable
about your ideas learning opportunities.
campaign, no one will • Set aside some additional budget for refining and testing
participate the more radical ideas
Small rewards for • Implement and communicate a system to gather and
ideas can be a process the innovation ideas. The goal: not one idea
remarkably powerful without answer from management
means of promoting • Communicate your process, for assessing, filtering ideas
participation and deciding which ones to invest in


Example of Practices for Boosting the Generation of Innovation Ideas

IN-HOUSE ENTREPRENEURSHIP PROGRAMMMES


What are doing the Innovation Champions to Select which ones are the
Innovation Proposals to be Developed?

Rejected The Most Innovative Companies, have a
Initiatives multifunctional, Innovation Steering Committee (“ISC”)
Initiatives
Portfolio composed by members of the top management with the
mission of assessing, prioritizing and selecting the
innovation ideas
The ISC meets periodically (monthly in most of the
All Selected
cases) to select the innovation proposals
Initiatives The ISC establishes and publishes, within the
Initiative
Ideas organization, the scoring system applied, that takes
Development into account, at least the following criteria to evaluate
Funnel the innovation proposals
• Their Strategic Fit
Once one innovation initiative has
• The Estimation and Availability of Investment
Once one innovation initiative has Funds, Human and other Resources required
been approved by the Innovation
been approved by the Innovation
Steering Committee, an initial for their development and implementation
Steering Committee, an initial
budget for its development is
budget for its development is • A Qualitative and Quantitative (IRR, NPV, Pay
assigned
assigned Back,...) Estimation of their Adding Value to
The rejected ideas are recorded
The rejected ideas are recorded the Business
in an innovation ideas repository
in an innovation ideas repository
where they can be revisited to be
where they can be revisited to be • Their Risks Evaluation
combined with other ideas or
combined with other ideas or • The Sustainability Analysis of the Advantage
being applied for different
being applied for different
purposes than the original one
purposes than the original one
Acquired by the implementation of the idea


A Model for Analyzing the Sustainability of Innovation Initiatives

Co
er
s m The sustainability of the advantage
m is An pe
to s al tit achieved by an innovation depends on
us aly
C n As
ys or
is s
A y The Replication Time
of Ba m m
rs ce
rie n rri etr • Its assessment requires an analysis of the
ar fere er i c innovation project itself and the changes
B e s
Pr required in the infrastructure of the business.
Some WEB-based innovations can be replicated in
Sustainability weeks but the changes in the primary infrastructure
of the Advantage achieved of the business required for its implementation can
by an Innovation take years. Example Compaq against Dell
The Asymmetric Barriers
• Their identification requires analyzing if our
advantage will be cancelled, when a competitor
Replication replicates our innovation.
Time
The cost of suppliers substitution is an example of
asymmetric barrier
Project The Barriers of Preference
Analysis
• Their identification requires assessing if our
customers will remain loyal to our organization
A Model for Sustainability unless a competitor offers to them a better
Assessment of Innovation alternative.
Investments Example: Amazon has built up high barriers of
preference


How is the Development Process of the Innovation Leaders?

The “Development Funnel”
Innovation
Innovation Development
Development The “Development Funnel” is the graphical
Steering
Steering Steering
Steering representation of the Development Process
Committee Committee Program and
Program and
Committee Committee
Project
Project A Development Steering Committee, (“DSC”) that
Managers
Managers can be the same or another committee, than the
“ISC”, is responsible for:
Multifunctional
Multifunctional
• Providing Guidance during the whole
Project Teams
Project Teams Development Process
• Assigning Program Managers, Project
Managers, Project Teams, budgets and other
Phase I Phase II Phase III Phase IV resources
• Approving Cycles Life for each Development
Project, the Results to be Achieved at the
End of Each one of their Phases, and the
Project Plans
Frequent Prototyping
• Establishing and Leading the Phase
Verification and Validation Meetings (Gates)
Management of the Development Funnel
Management of the Development Funnel
• Supervising the Management and
Administration of the Resources and
Project Management Professionalism and
Project Management Professionalism and Program's Budgets
Frequent Prototyping are Key Success
Frequent Prototyping are Key Success • Making Recommendations to the Top
Drivers for the Process of Development
Drivers for the Process of Development Management, Including Proposals for
Program and Project Changes or its
Termination


Example: The Model of WINNING BOOST

In the Model of “Winning
Program and Innovation Boost”, Business Strategy is
Project Programs/Projects driving:
• The Management of the
Management
I II III IV
Multifunctional
Project Teams Portfolio of Innovation
Innovation Proposals
Steering
Committee • The Management of the
Development Process
Innovation
• The Internal R&D
Implemented
Proposals Innovations
• The HHRR Development
Programs
Development
New
Competencies Funnel • The Acquisition of External
Technology and Know How
Business
Strategy
Technology
and Know There is a unique, Innovation
How Steering Committee,
New
Technologies
Acquisition responsible for Managing the
In-Company R&D
In- Portfolio of Innovation Ideas
and HHRR and its Development Process
Development Strategy
WB Innovation Development Model © 2007 Winning Boost


Apply Frequent Prototyping for Faster and Reliable Development

When Frequent Prototyping of Products and Processes, is
applied, the feedback from the end users results in an iterative
refinement of the model until it finally meets the user's needs
and expectations.
Phase I Phase II Phase III Phase IV Advantages of Frequent Prototyping of Products and
Processes
• User requirements easier to determine
• The development’s result, more closely meets the needs and
expectations of the end users
Frequent Prototyping
• Changes identified earlier in the development process
• Development costs are reduced
• Faster development
• Stopping development on an unworkable product or process
Advantages of Frequent Prototyping of Processes and
Business Models
• Involvement of the personnel working for the process
• Easier for the personnel to learn how to operate in the
process before its implementation
• Employees know what to expect at the implementation of the
new process

Fast Prototyping applyingPrototyping
Applying CAD/CAM for Fast CAD/CAM
• Fewer changes needed after implementation
• Employees’ resistance to change reduced.
The application of IT enable prototyping products, processes and
The application of IT enable prototyping products, processes and
business models, fast and cost efficiently
business models, fast and cost efficiently


Improve the Competency for Project Management of your Organization

Development, the final Stage for Successful
Implementation of Innovative Ideas is mainly a task of
performing projects
Project Management Professionalism is Key for:
• Ensuring that the deliverables will meet the needs and
expectations of the project’s stakeholders and the
Company’s quality standards
• Identifying early the project's risks and defining and
implementing properly the adequate risk response
• Managing properly the unavoidable project changes while
ensuring the achievement of the goals of the organization
and stakeholders satisfaction
• Tracking and Controlling adequately the project's progress
• Taking advantage of the opportunities to speed up the
schedule, reduce cost and improve the deliverables features
• Completing the projects within the optimal period of time and
the most efficient use of the budget and resources available

Provide to your Employees Education and Training for Project Management
Provide to your Employees Education and Training for Project Management
Assign to the Most Competent, Project Managers the Responsibility for Managing
Assign to the Most Competent, Project Managers the Responsibility for Managing
your Key Innovation Projects
your Key Innovation Projects


Third Hint: “Make an Intelligent Use of the Information Technologies”

• The use of new Information technology
enables most innovations of the business
Order Do you need it? processes. ("I-Innovations")
Order Do you need it?
Specification
Specification How is it?
How is it?
• Analysis of opportunities of "I-Operations"
"and" I-Marketing " , enable identifying
Distribution
Distribution Who distributes it?
Who distributes it? pragmatic paths to increase sales and
competitiveness of the organization
Availability
Availability Who has it?
Who has it?
• New business models and most radical
Price
Price How much does ititcost?
How much does cost? innovations are most often identified,
looking for opportunities of "I-Service“
Payment
Payment Credit?
Credit?
When do you want it?
Delivery
Delivery When do you want it? At the selection of the technological
At the selection of the technological
Acceptance
Acceptance Fully received, satisfied?
Fully received, satisfied? platform to support the innovation of
platform to support the innovation of
Installation Ready to work?
your processes or business model
your processes or business model
• Don’t rely totally on advice from
Installation Ready to work?
Performance How does ititwork?
How does work?
Don’t rely totally on advice from
Performance
System Suppliers. Many times their
System Suppliers. Many times their
Improvement
Improvement Anything else needed?
Anything else needed? advice is not free of conflicts of
advice is not free of conflicts of
Maintenance Maintenance, repair required?
Maintenance, repair required?
interest
interest
• Ask for references of success,
Maintenance
Return
Return Sale Finished?
Sale Finished? Ask for references of success,
check and analyze them personally
check and analyze them personally
• Apply, proven decision models, to
Assessment
Assessment Provided Value ??
Provided Value
Apply, proven decision models, to
facilitate your decision
facilitate your decision
I-Service – Opportunities Model
I-Service – Opportunities Model


Third Hint: “Make an Intelligent Use of the Information Technologies”
A Model of Web-Based Transformations of Business Processes
David Feeny (Oxford University) ...

Process Transformations
Enabled by WEB-Based Technologies High Reengineering of
Reengineering of
the Primary Banking, Insurance,
the Primary
“E-Operations – Opportunity Model” Infrastructure and
Infrastructure and
Pharmaceutical,
David Feeny, Oxford University Publishing Companies...

Information Content
Key Business
Key Business
Processes

in the Product
Processes
To improve
• Product Availability
and Functionality
• Development Time
• Cost Structure
Intensity of Information
along the Extended
High Supply Chain (ESC)
Low
In
fo Dis Companies with
rm pe
Va atio rsio geographically
Virtual Integration
Virtual Integration Companies with
lue n a n dispersed
of the ESC Ch lon of homogeneous activities.
of the ESC products including ain g t
hundreds or he Example: McDonald's
To improve thousands of
• Product Availability components Reinforcing the
Reinforcing the
and Functionality (Automotive, “Parenting Value”
“Parenting Value”
• Development Time Aerospace,
• Cost Structure Appliances, To improve
Hardware ...) and • Sharing Learning
companies of "Build High and Best Practices.
to Order " • Economies of Scale
• Cultural Consistency


Fourth Hint: “Adopt the Open Innovation”
Open versus Closed Innovation

Boundary The Closed Innovation Model
of the Firm
• The Company generates, develop and
commercializes its own ideas.
The
• This philosophy of self-reliance dominated
Market the innovation processes and R&D
operations of many leading industrial
corporations for most of the 20th century

Innovation
Development
Proposals
Closed Innovation Model
Boundary The Open Innovation Model
of the Firm
New • The Company commercializes both its own
Market ideas as innovations from other firms
Current
• The Organization seeks ways, to bring its
Market
in-house ideas to the market, by deploying
pathways outside its current business
• The boundary between the Company and its
surrounding environment is porous,
enabling innovations to move between the
Innovation Development two
Proposals
Open Innovation Model Henry W. Chesbrough (HBS)


Why Adopting Open Innovation?

False Beliefs for Closed Innovation Realities to adopt Open Innovation
• The talented people in our industry • Not all of the smart people work for us, so
work for our organization we must find and tap into the knowledge
and expertise of bright individuals outside
our company
• To profit from R&D, we must discover, • External R&D can create significant
develop and commercialize it value. Internal R&D is needed to claim
ourselves some portion of that value
• If we discover it ourselves, we will get • We don’t have to originate the research in
to the market first order to profit from it
• If we are the first to commercialize an • Building a better business model is better
innovation, we will win than getting to market first
• If we create the most and best ideas in • If we make the best use of internal and
our industry, we will win external ideas, we will win
• We should control our intellectual • We should profit from others’ use of our
property (IP) so that our competitors IP, and we should buy others’ IP if it
don’t profit from our ideas advances our own business model

Open innovation represents, in part, a reinvention of the organizational models that we
Open innovation represents, in part, a reinvention of the organizational models that we
have come to take for granted.
have come to take for granted.
In the next few years, as connectivity becomes ubiquitous, the shift to more
In the next few years, as connectivity becomes ubiquitous, the shift to more
distributed, more networked and more open organizational models will become
distributed, more networked and more open organizational models will become
commonplace and those not willing or unable to make the change will be left behind
commonplace and those not willing or unable to make the change will be left behind


How to Start Open Innovation? Some Key Issues

Two key questions to start the Implementation of Open Innovation
• What are the kind of ideas we need?
• Who are the potential collaborators that we can work with to
greatest effect?
An early, clear answer to these questions could inhibit the creative freedom
• Open Innovation is needed to create the desired new markets, radical innovations and fresh
still young business models.
• Companies like
Orange, Philips and A recommendable path to start Open Innovation
A recommendable path to start Open Innovation
• Start small, with no more than two or three organizations. Some of your suppliers
Hewlett Packard are
making of it a Start small, with no more than two or three organizations. Some of your suppliers
strategic priority or clients can be good candidates to start with
or clients can be good candidates to start with
• Virgin Atlantic, and
Procter & Gamble • Create a conjoint multifunctional committee with each one of these organizations,
Create a conjoint multifunctional committee with each one of these organizations,
reported great reporting to the top management of both organizations.
reporting to the top management of both organizations.
benefits from their
Open Innovation • The aim of these committees is to extract investable propositions for the
The aim of these committees is to extract investable propositions for the
Programs participant organisations that will share the value chain and benefits of the
participant organisations that will share the value chain and benefits of the
developed proposal
developed proposal
• But still there are
not enough • Emphasize more on valuable delivery partnerships than on passive ownership of IP
Emphasize more on valuable delivery partnerships than on passive ownership of IP
• Periodically use the lessons learnt to refine the process and extend it to other
experiences to
extract common Periodically use the lessons learnt to refine the process and extend it to other
good practices for collaborating organizations
collaborating organizations
• The process, matures when both organizations find several opportunities to make
its implementation
• The experiences of The process, matures when both organizations find several opportunities to make
success are not investments or partnership decisions in collaborative business models like joint
investments or partnership decisions in collaborative business models like joint
consistent, because ventures or delivery partnerships
ventures or delivery partnerships
each company has
started Open • A welcome by-product of these programmes is that the communities stay active
A welcome by-product of these programmes is that the communities stay active
Innovation in its long after the programme has ended, keeping the conversations going, and value
long after the programme has ended, keeping the conversations going, and value
own way flowing
flowing


Fifth Hint: "Apply Change Management to get an Innovative Organization”

To succeed on business innovation, especially for effectively implementing new
To succeed on business innovation, especially for effectively implementing new
business models, processes and systems, organizations must quickly get the entire
business models, processes and systems, organizations must quickly get the entire
organization' support to change.
organization' support to change.
Many change initiatives fail victim to employees' resistance mainly because their
Many change initiatives fail victim to employees' resistance mainly because their
fears for their personal future
fears for their personal future

Five basic tools to
Five basic tools to Key Features on Change Management
overcome the employees'
overcome the employees' Enrolling
resistance to change
resistance to change
•
• The commitment and
Making the people conscious of the the need for change
The commitment and • Helping the people to see a future they want to be a part
example of the leaders
example of the leaders • Requesting commitment
• Education and training
Education and training Enabling
• Coaching
Coaching
•
•
Challenging people’s self-limiting beliefs

• Recognition to effort
Providing education and training, for the required
Recognition to effort knowledge, skills and behaviors
and celebration of
and celebration of • Building self-esteem and trust
successes
successes Energizing, to sustain the change
• Communication,
Communication, • Building and sustaining people’s energy
Communication,
Communication, • Celebrating successes
Communication…!
Communication…! • Giving recognition

1/30 “Six Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua 27/30

Fifth Hint: "Apply Change Management to get an Innovative Organization”
Example of a Communication Tool: Map of the Innovation System of SIEMENS

“The Innovation System at SIEMENS: Taking inputs from technology,
competitors, and market intelligence and driving these into the planning
for new product and new processes development”
1/30 “Six Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua 28/30

Sixth Hint: “Continuously Update your Professional Competence”

A plan with six activities to sustain your
A plan with six activities to sustain your
professional competence throughout life
professional competence throughout life
• Read, quarterly, a book recently published about
Read, quarterly, a book recently published about
Innovation Management
Innovation Management
• Subscribe and read, at least three prestigious
Subscribe and read, at least three prestigious
management magazines ("Harvard Business Review",
management magazines ("Harvard Business Review",
"MIT Sloan Management Review" and the online
"MIT Sloan Management Review" and the online
The current changes of the magazine "www.innovationmanagement.se" are
magazine "www.innovationmanagement.se" are
business environment, recommendable)
recommendable)
deeper and faster each • Participate, at least a week per year, in continuing
Participate, at least a week per year, in continuing
day, are making challenging education programs of prestigious academic institutions
education programs of prestigious academic institutions
for managers, sustaining • Actively participate in the professional experience
Actively participate in the professional experience
their professional sharing programs of the alumni of the academic
sharing programs of the alumni of the academic
competence, if they don't institutions where you studied and the professional
institutions where you studied and the professional
work every day to update associations where you are member
associations where you are member
the knowledge and skills
required for performing
• Make a public presentation to a professional audience
Make a public presentation to a professional audience
and/or write, and get published in a professional
and/or write, and get published in a professional
their profession magazine, an article about Innovation Management at
magazine, an article about Innovation Management at
least once a year
least once a year
• Build and sustain a network of prestigious management
Build and sustain a network of prestigious management
professionals and experts on innovation management
professionals and experts on innovation management
from different industries, for sharing knowledge and
from different industries, for sharing knowledge and
experiences
experiences

What says about these issues a Global Innovation Champion?

Successfully Managing Innovation requires:
• Implementing collaborative and social networks for
capturing requirements and ideas, from colleagues,
customers and partners, into products and processes
• Establishing consistent, repeatable processes for translating
concepts into products.

The final stage of • Making role-based data available to all stakeholders during
any each stage of the product development process.
effective idea • Standardizing the data captured about each project, such as
management strategic alignment, financials, and risk levels.
approach, is
the successful • Managing intellectual property including patent assets and
implementation of the protection of specialized proprietary knowledge.
innovative • Managing the project portfolio, tracking execution and
ideas alignment with corporate mission and competitive goals, and
making time-to-market decisions via flexible scheduling.
• Maintaining effective communications across multiple sites
and organizations.


“Six Hints for Building an
Effective Business Innovation System”
The author authorizes the integral reproduction of this presentation

Miguel Sáenz de Viguera Aizpurua
2007 PMI Distinguished Contribution Award
msaenzdeviguera@hotmail.com

November 2010
“Six Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua

Six hints for building an effective business innovation system

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