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It enabled innovation cisco live latam, 20121108

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  • 1. IT Enabled Innovation Jožek Gruškovnjak Director, Service Provider Practice Internet Business Solutions Group Cancún, México – November 7th, 2012 © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1
  • 2. Network Readiness Index 6 Correlation coefficient: 0.95 5 4 3 2 2 3 4 5 Global Innovation Index © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Public 2
  • 3. Network Readiness Index 6 Correlation coefficient: 0.95 5 Chile Brazil Colombia 4 Costa Rica Peru Mexico Argentina Ecuador 3 Venezuela 2 2 3 4 5 Global Innovation Index NRI © 2010 Cisco and/or its affiliates. All rights reserved. OECD Comparison countries Internet Business Solutions Group Mexico Cisco Public 3
  • 4. 409,000,000 items 59,882 results in books © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Public 4
  • 5. “Innovation is the means by which the entrepreneur either creates new wealthproducing resources or endows existing resources with enhanced potential for creating wealth.” Peter F. Drucker “The Discipline Of Innovation,” Harvard Business Review, December 1998 © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Public 5
  • 6. Thomas A. Edison © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Public 6
  • 7. © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Public 7
  • 8. GOL-PACK Individually Quick Frozen Products Source: The National Provisioner, Jan. 2002 © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8
  • 9. Added-Value Products GOL-PACK Individually Quick Frozen Products © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 9
  • 10. Source: Geoffrey Moore, “Dealing with Darwin” © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Public 10
  • 11.   R&D in-house by specialists   Ivory tower model   Proprietary   Sharing little   Painstakingly slow to market   Out of touch with reality and the customer   Hierarchical information flow   Weak R&D pipelines   Rising R&D costs   Emergence of global low-cost imitators   Poor track record of M&A © 2010 Cisco and/or its affiliates. All rights reserved. “In the past, it seems that innovation was handled by the research folks, and it was a gigantic black box…This was a recipe for failure.” McKinsey 2007 Innovation Report Internet Business Solutions Group Cisco Public 11
  • 12. 250% Market Capitalization % Change 2006 / 2001 Negative correlation factor -0.63 200% 150% 100% 50% 0% 0% 2% 4% 6% 8% 10% 12% 14% -50% R&D Intensity (5-Year PV of R&D / LFY Sales) for companies reporting R&D expenditures Source: Reuters, Cisco IBSG Economics & Research Practice © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Public 12
  • 13. Source: “The Global Innovation 1000: Making Ideas Work” – Booz & Company, 2012 © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Public 13
  • 14. Source: IBM Global CEO Study 2006 © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Public 14
  • 15. Examples: Global   Research Suppliers Outside scientific net-works contribute 50% of innovations, up from < 15% in Partners National Regional Customers 2000 Sales per R&D person are up by 40%.   Exploration Intra-Organizational “Goldcorp Challenge” – opening Enterprise Innovation geological data to outsiders and soliciting ideas on where to search for Inter-Organizational gold – led to discovery of significant new deposits and shortened Open Innovation exploration time by 3 years Extra-Organizational Transformed Goldcorp from underEnvironmental Innovation performing 100 M$ company to 35B$ industry leader with Connecting for Innovation Sources: Business Week, “The Future of Tech, The Power of Us; Mass collaboration on the Internet is shaking up business,” June 2005 Wikipedia.org, www.goldcorp.com © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Public 15
  • 16. Invent new concept © 2010 Cisco and/or its affiliates. All rights reserved. Adopt idea Execute Internet Business Solutions Group Cisco Public 16
  • 17. Business Strategy Enables Innovation Strategy SENSE GENERATE SELECT DEVELOP COMMERCIALIZE Supported by Business Processes Applications and Services Networked Infrastructure © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Public 17
  • 18.   Innovation productivity is: Maintained or increased number of successes Increased number of big, breakthrough successes Reduced number of attempts   It is Invention + Execution + Adoption % YOY Incremental Revenue Growth Innovation Productivity IP = ( Brand/Category Corporate Creation Hurdle Rate IIRG * CC IC ) ) / HR * ISG Expected period sustained revenue growth % YOY Incremental Increase/Decrease of Innovation OPEX / CAPEX (incl. R&D) © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Public 18
  • 19. A clear innovation strategy A culture that encourages innovation Better management of the innovation pipeline © 2010 Cisco and/or its affiliates. All rights reserved. Business Strategy Brands Shareholder Business Models Process Connected People Communication Culture Compensation Talent Innovation Productivity Open Innovation DIFFERENTIATION GROWTH Technology Communication; Collaboration, Architectures Partnerships Customers Consumers Internet Business Solutions Group Cisco Public 19
  • 20. Business Strategy Connected People Brands Shareholder Business Models Process Communication Culture Compensation Talent   Do we have a portfolio management process?   How collaborative is my company?   What are our process weaknesses?   Do we reward risk-taking and teamwork?   How do our business models need to adapt?   How does our culture need to change / adapt? © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Public 20
  • 21. Technology Open Innovation Communication; Collaboration, Architectures Partnerships Customers Consumers   How “open” is our company?   How does Web 2.0 give us a competitive advantage?   What policies/governance need to change? © 2010 Cisco and/or its affiliates. All rights reserved.   Do our collaboration capabilities support our business needs?   Do we have the IT capabilities to take advantage of Web 2.0?   Do we have a roadmap for creation of a “borderless enterprise?” Internet Business Solutions Group Cisco Public 21
  • 22. Open Insight Consumer Behaviors, Attitudes, Opinions Now Transparent. Web Chat Blogs Wikis Virtual Living The World of Web 2.0 Mash-Ups Social Networks Podcasts Presence Digital Content Creation Open Collaboration Prosumption Peer 2 Peer Innovation Open Creativity Anytime. Anywhere. With Anyone. Channel It. Ideagoras Consumers Mashing Bits and Bytes. Mine It. Use It. TODAY’S CORPORATE OPPORTUNITY © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Public 22
  • 23. % YOY incremental revenue growth Category creation Web Chat Blogs Consumer Insight Network Podcasts SENSE $ YOY incremental increase / decrease of innovation OPEX / CAPEX Wikis Expected period sustained revenue growth Virtual Living Ideagoras Operational The World of Web 2.0 Open Innovation Agility Mash-Ups Prosumption Network Social Networks Network Presence GENERATE Digital Content Creation SELECT Peer 2 Peer Innovation DEVELOP COMMERCIALIZE Applications – Web Optimization * Digital Media * TelePresence * … C O LLAB O RAT I O N © 2010 Cisco and/or its affiliates. All rights reserved. & I N N O VATI O N Internet Business Solutions Group NETWORK Cisco Public 23
  • 24. Insight Capture and Mining Open Collaboration with Presence Digital Signage Site Innovation Room TelePresence Video WVLAN Corporate TALK BROWSE BLOG CHAT Voice Observation, Interaction, Advertising and Video Capture Video Data Mobile Partners & Third Parties Consumers Multi-mode interconnectivity of consumers, sites, and corporate locations Business Intelligence Pattern Mining Content Management Analytics & Reporting Digital Media Management Content Optimization © 2010 Cisco and/or its affiliates. All rights reserved. IP Video Virtual World Content Data Capture Virtual Reality Infrastructure Rich Internet Applications (RIA) Secure, Robust, Flexible, Virtualized Infrastructure Internet Business Solutions Group Collaboration Messaging Socializing Conferencing Expert Locator Service Informing Presence Existing Systems Storage Area Network Cisco Public 24
  • 25. Use It. Insight Capture and Mining Open Collaboration with Presence Digital Signage Site TelePresence Video WVLAN Corporate Business Intelligence Content Management BROWSE BLOG CHAT Video Data Mobile Partners & Third Parties Consumers Multi-mode interconnectivity of consumers, sites, and corporate locations Mine It. Pattern Mining Innovation Room TALK Voice Observation, Interaction, Advertising and Video Capture Analytics & Reporting Digital Media Management Content Optimization © 2010 Cisco and/or its affiliates. All rights reserved. IP Video Virtual World Content Data Capture Virtual Reality Infrastructure Rich Internet Applications (RIA) Secure, Robust, Flexible, Virtualized Infrastructure Internet Business Solutions Group Channel It. Collaboration Messaging Socializing Conferencing Expert Locator Service Informing Presence Existing Systems Storage Area Network Cisco Public 25
  • 26. Improving innovation management SENSE GENERATE What do my customers need? How can we meet those needs? Submission of ideas / observational studies Virtual, crossfunctional brainstorming SELECT Is the solution right? Rapid testing online involving end users DEVELOP I need to reach the right person right now Internal and external sources to verify and problem-solve COMMERCIALIZE Team needs to What can be work in and out improved/added? of organization Web-based workspace: platform for agile development Full and responsive ecosystem for feedback Source: Cisco IBSG, 2009 © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Public 26
  • 27. Find Graduate Filter Ideas Accelerate Incubate Initiate Business Unit Formed Vacate/ Abate “The absolute best-in-class implementation of innovation is what Cisco is doing with its emerging technologies group.” Forbes Magazine, Oct 23rd 2006 Geoffrey Moore, Managing Director, TCG Advisors © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Public 27
  • 28. I-Zone: internal wiki / blog I-Prize: external portal §  Open to all §  Collaborate to win §  Winner gets dobi $250K §  Cisco invests $10M+ to create new $1B+ business www.cisco.com/iprize Ideas 600 400 200 0 Web 2.0 Idea blog © 2010 Cisco and/or its affiliates. All rights reserved. Week 1 Week 2 Week 3 Week 4 WebEx Collaboration Telepresence Finalists Internet Business Solutions Group New Business Unit Cisco Public 28
  • 29. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 29
  • 30. Myth Reality Myth Reality Myth Reality Myth Reality Innovation just happens. Innovation requires an idea-to-execution process. Innovation is about good ideas. Innovation is about ideas, process, culture, and execution. Innovation comes from one lone genius. Innovation is a group activity. You need more new ideas. You need more homes for new ideas. © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Public 30
  • 31.   By employees, customers, partners, intermediaries and stakeholders in an always-on fashion, the true benefits of Open Innovation can be   Connected Innovation facilitates within the organisation, and   Connected Innovation’s success requires developing a , supported by © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Public 31
  • 32. Empowered Employees Customer Focus Culture of Collaboration Process for Implementing enabling based on facilitating allowing innovation to emerge from anywhere in the organisation a deep respect for the customers’ experience and ideas sharing of information, skills and perspectives within the organisation and with external partners innovations to be taken to market © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Public 32
  • 33. INNOVATION HAS CHANGED.   It is faster, more global, more open, and more complex THE NETWORK IS BECOMING MORE CRITICAL TO THE INNOVATION PROCESS.   Accelerates the process Companies with a connected process experience faster conversion rates   Connects a wide variety of innovation sources (networks) The best ideas come from groups, not individuals © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Public 33
  • 34. “The best ideas are common property.” SENECA, EPISTLES ROMAN DRAMATIST, PHILOSOPHER & POLITICIAN (5 BC – 65 AD) “Networks are becoming the locus for innovation. Firms are becoming much more porous and decentralized.” WALTER W. POWELL STANFORD UNIVERSITY PROFESSOR (2005) © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Public 34
  • 35.   Receive Passport points for each session evaluation you complete.   Gives your feedback and redeem your points @ the onsite Cisco Store.   Complete your session evaluation online now: Look for the QR and/ or URL outside the room © 2010 Cisco and/or its affiliates. All rights reserved. Don’t forget to activate your Cisco Live Virtual account for access to all session material, communities, and ondemand and live activities throughout the year. Activate your account at the Cisco booth in the World of Solutions or visit www.ciscolive.com. Internet Business Solutions Group Cisco Public 35
  • 36. Thank you. Follow Cisco IBSG for trends and updates: Flickr - http://www.flickr.com/photos/ciscoibsg YouTube - http://www.youtube.com/CiscoIBSG Slideshare - http://www.slideshare. Facebook - http://www.facebook.com/go.cisco.ibsg Twitter - httpnet/CiscoIBSG LinkedIn - http://www.linkedin.com/in/ciscoibsg