Business Innovation:
                                                   Portfolio Management & Execution Power



 Did you...
The key challenge regarding Business Innovation is:
“How to create a sustainable innovation environment?”
                ...
Do you really understand the Innovation Strategy of your
company?


Do you have a clear Vision on the Business Drivers and...
Can you optimize your Innovation Portfolio?


Do you design the necessary changes in the business model
and how it will be...
Can you manage successfully the implementation of the
innovation projects?



 Do you use a proven operational innovation ...
The answer to these questions is to use the right innovation frameworks and people
with experiences to work with you and y...
Business Innovation Concept is a standardised Capgemini
                   approach to manage your innovation in a systema...
Business Innovation Concept is a standardised Capgemini
        approach to manage your innovation in a systematic way (2)...
Koen Klokgieters/ Capgemini / Utrecht
                                    Vice President BUSINESS INNOVATION Consulting Se...
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Business Innovation Concept

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Approach to optimise your Innovation Portfolio and boost the Innovation initiatives

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Business Innovation Concept

  1. 1. Business Innovation: Portfolio Management & Execution Power Did you know that business model innovation is seen by most CEOs as the way to create future value but at the same time as very hard to implement? I will give you the insights how to realize sustainable profitable growth using our Business Innovation concept ! My name is Koen Klokgieters and I’m VP Business Innovation with more than 20 years of experiences in innovation. ‘Link to the Future’ Koen Klokgieters VP Business Innovation March 2008
  2. 2. The key challenge regarding Business Innovation is: “How to create a sustainable innovation environment?” Situation Situation You are responsible for the start of or running a complex and long term innovation program or portfolio with clear innovation objectives and targets This portfolio exits of more complex innovation projects The basics of project management of each separate project is well in place Each project works in parallel to deliver the innovation targets There are (strong or weak) interrelationships between these projects to manage There are different (internal and external) stakeholders to manage Complication Complication The Innovation Objectives and targets are defined in only financial terms: Revenue/Profit growth The Innovation Strategy doesn’t give directions for prioritizing and decision making processes There is not overall logic overview for the portfolio to ensure the overall targets There isn’t framework to oversee the impact of the portfolio on the current Business Model There isn’t framework to oversee the impact of the portfolio on the technology integration needs There isn’t a systematic way to manage the execution of the innovation projects successfully Key Questions Key Questions 1. Do I really understand the Innovation Strategy of my company? If not how can I? 2. Have I optimized our Innovation Portfolio to set the right priorities and the take the right decisions? If not how can I? 3. Am I able to mobilize and manage the execution power in my company? If not how can I? | Business Innovation In collaboration with [Client] Link to the Future 21 March 2008 1
  3. 3. Do you really understand the Innovation Strategy of your company? Do you have a clear Vision on the Business Drivers and the Technology Trends that founds the innovation Strategy? Global / Mega Trends Product / Service Technology Consumer / Client Trends Process Technology W Market Trends Enabling Technology e vi kno i m ew w pl o th Do you recognize the perceived Strategic Business Advantage em n at en Inn wi you will create with the innovation strategy? ta ov tho tio at u n i on t a w S s Product Advantage People Advantage ill tr ha Configuration Advantage be at re Politics Advantage ha egy d Presence Advantage Purpose Advantage rd ! Did you decide on the targets for change in proposition and value creation driven by the Innovation Strategy? New Revenues / Market share/ Profit New Customer experience Reputation | Business Innovation In collaboration with [Client] Link to the Future 21 March 2008 2
  4. 4. Can you optimize your Innovation Portfolio? Do you design the necessary changes in the business model and how it will be done? Value Proposition Core Capabilities An Client Segments Business Functions o th pt Distribution & Communication Channel Partners re e im Client Relationship Revenues & Cost Structure in so rig ise no ur ht d va ce pr po tio s t ior rtf n o e itie oli Do you develop the necessary changes in the technology and ob n s o je ab an wi how it can be integrated in existing technology? ct le d ll iv th se es e t ! Product / Service Technology Process Technology Enabling Technology Do you understand the Benefit Logic how these changes will deliver the innovation targets? Benefit Logic Business Case Decision Making Process | Business Innovation In collaboration with [Client] Link to the Future 21 March 2008 3
  5. 5. Can you manage successfully the implementation of the innovation projects? Do you use a proven operational innovation approach ? Innovation Process M Methodology an Tools fa ag bu cto ing si rs th ne w e ss ill ke va de y s Do you work with the right people and partners? lu liv uc e er c ! th ess e Leadership Experts Clients & Suppliers Do you communicate in the right way with your in- and external environment? Innovation measurements and reports Communities, events and communication channels Physical innovation spaces | Business Innovation In collaboration with [Client] Link to the Future 21 March 2008 4
  6. 6. The answer to these questions is to use the right innovation frameworks and people with experiences to work with you and your team on your concrete innovation projects The first step is to help you understanding the current Innovation Strategy of your company. So we don’t define a new strategy we simply give you insights of the completeness and level of detail. This is necessary to know if your portfolio will meet the targets and directions of innovation. The second step is to help you to recognize the level of optimization of your current portfolio. We do this by analysing a subset of individual projects: • For each project we show you the possible impact on the current business model(s) • For each project we show you the alignment with the strategic objectives and targets • For each project we show you the impact on technology integration issues The outcome from the subset of your portfolio will be plot in the Business Innovation Framework. This framework will give you an overview of the changes in the business model and technology for your company driven by the projects. We will show you how to set the right priorities and leading the decision making process in optimizing the portfolio. The third step is to do a detailed analysis for a selection of projects on managing the execution. For each project we deliver the current critical issues for successful execution. We will show you how to boost the execution power by managing these critical issues. The fourth step is to build a sustainable environment for systematic innovation and execution in your company. Our approach is a strong hands-on way of working with you and your team | Business Innovation In collaboration with [Client] Link to the Future 21 March 2008 5
  7. 7. Business Innovation Concept is a standardised Capgemini approach to manage your innovation in a systematic way (1) Initiatives Strategic Business Advantages Product roductionresence People {Politics} Purpose} P P { 0. Understanding the Innovation Strategy Determine the impact on Business Model & Technology Parameter Score Comments Business Model ? Degree of change Using the mill further down the chain as a point of contact # Business Model building blocks & impact Experience with new DRP has difficulties with ’sole (direct contact with Client r Internal vs. partner networks large mill) Transformation Capability Not yet experience with moving down the chain Old vs. new Technology ?Degree Change chain of (in ) Standard for Client Strategic Impact Experience with new technology (Client) All existing high OSB’s Business Model Initiatives Drivers Value Creation Integration with legacy / Transformation from legacy No legacy Growth market Market Share > 50% New revenue stream +X7 mio profit in 2012 Impact on Business Model and Technology desired Project x Formaldehyde Project 1 No Y M € NPV High Low high - License on technology (option license to Project 2 No equipment supplier) and license fee Impact medium Cocreation Project 3 No?? No MelasunMelam Proj.y Proj.C Partner Customer Proj. 1 Proj.S OSB Close 2 existing Product oriented Project 4 No?? < Z M € license fee Network Relationship Existing revenue stream will go up, higher Proj. M FR Melaglass Proj.V Technology Proj.2 Project 5 100% demand, S/D balance Duraclean Proj.M medium Project 6 100% No If no action, our market share will decline Proj.3 Core Close 2 existing Business Close 2 existing Value * Lower glue costs Distribution DRP Customer Mill (OSB) Project 7 50% No LEED Proj.N Capabilities Functions Proposition Channels Segment Proj.5 Proj. B Continuous Resin Project 8 No Z M € NPV Proj.8 low Project 9 100% Proj.4 PF Proj.L Plywood Cost Close 2 existing Structure PROFIT Revenue Volume Melamine Streams (Volume * Price) Project 10 No Proj.9 (On Hold) low Proj.7 low medium high Proj.6 Proj.10 The mill is DMM’s point of contact, where the DRP is DMM’s direct client The mill is DMM’s point of contact, where the DRP is DMM’s direct client High Low low medium Business Model high Challenge 1. Describe Business Model 2. Determine impact, alignment 3. Determine impact on 4. Optimise the portfolio per project with strategic goals business model & technology With this approach you will get Insights how to optimize your Innovation Portfolio and the Feasibility of the implementation success of Strategic Innovation Objectives | Business Innovation In collaboration with [Client] Link to the Future 21 March 2008 6
  8. 8. Business Innovation Concept is a standardised Capgemini approach to manage your innovation in a systematic way (2) high desired Formaldehyde Project x Impact medium MelasunMelam Proj.y Proj.C Proj.S OSB Proj. M FR Melaglass Proj.V Duraclean Proj.M Proj.N LEED Continuous Resin Proj. B low PF Proj.L Plywood (On Hold) 4. Optimize the portfolio low medium high Challenge Preparation Mobilisation “My & event Innovation” Mobilisation 1MOVE dag Digital portal Iteration 1 Accelerated Innovation Approach Iteration 2 Iteration 3 Iteration 4 70 Event Process Spaces Methods 2 wks 2 wks 2 2 wks wks 2 wks 2 wks 2 wks 2 wks 70 Event Reports Tools Innovation Project 1MOVE dag Innovatio Measurement Leaders space s 1MOVE dag Release #1 Release #2 Release #3 Release #4 70 Event “Execution Manager “Networks” Communication s Managing the Critical Success Factors: Time, Power” Experts Coordination, Integration and Measurements 5. Analyse max. three 6. Start boosting the innovation 7. Secure way of work in the innovation projects projects organisation in detail With this approach you will be able to boost your running innovation projects | Business Innovation In collaboration with [Client] Link to the Future 21 March 2008 7
  9. 9. Koen Klokgieters/ Capgemini / Utrecht Vice President BUSINESS INNOVATION Consulting Services http://koenklokgieters-english.blogspot.com/ http://koenklokgieters.blogspot.com/ T: +31 30 689 7312 | M: +31 6 51123259 koen.klokgieters@capgemini.com www.capgemini.com Papendorpseweg 100, Postbus 2575, 3500 GN UTRECHT Koen has more than 20 years (international) experience as a Management Consultant in 4 different roles (thought leader, program manager, interim executive and coach). He started at AT&T in EMEA-Headquarters and worked for two university spin-off consultancy organisations until he started in 1999 working for Capgemini. He has dealt with large (international) innovation programs with clients such as DSM, Essent, Nuon, NS and KLM/Air France. Key issues in these programs are enlarging innovation power. Aimed at implementation of innovation strategies: capabilities, organisation & process innovation. Besides management consulting he is connected to Post-academic training institutes as a trainer for management consultants and is a member of several non-executive boards for innovative organisations. In Capgemini, he is the thought leader in Business Innovation. Together with his team and international network, he improves the innovation capabilities of clients to ensure market success. He shares his vision, ideas, inspiration and experiences at congresses, guest lectures at universities and columns on the internet. With his current Business Innovation team he will bring Capgemini a boost in market growth in several industries and in leading business issues for major (global) accounts. | Business Innovation In collaboration with [Client] Link to the Future 21 March 2008 8

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