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Innovation & Change Management

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This presentation outlines our research and concept of introducing 'change management services' within a design consultancies service offerings. ...

This presentation outlines our research and concept of introducing 'change management services' within a design consultancies service offerings.

We chose Hot Studio as the consultancy because of their unique position within the marketplace, a studio who offers strategy and digital design services as well as a small bridge into the physical design realm. This is a class project and is in no way professionally affiliated with Hot Studio.

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    Innovation & Change Management Innovation & Change Management Presentation Transcript

    • Innovation & Change ManagementSCAD SERV753 - Service, Innovation, and Enterprises | February 24, 2013Prepared for Hot Studio by Play Nice Service Design / Richard Ekelman, Lauren Peters, Lindsay Vetell-and professor Robert Bau Innovation & Change Management | SERV753 Service, Innovation & Enterprises | February 24, 2013 1
    • Contents“The element of leadership, culture, and business strategy sets the environment for successfulinnovation. Proficiency in this element distinguishes highly innovative companies from lessinnovative ones.” - KoenWHO IS HOT STUDIO? WHAT IS INNOVATION? WHAT IS INNOVATION @ HOT? Intro Slide............................................. 4 Innovation Glossary............................. 16 Hot’s Current Services........................ 45 Quick Facts........................................... 5 Readings Intro...................................... 17 Expanding Hot’s Services................... 46 Capabilities.......................................... 6 Research Articles............................. 18-32 Co-creating Some Pie......................... 47 Service Package.................................. 7 SERV753 Innovation Intro................... 33 Tomorrow’s Value Proposition............ 48 Case Studies........................................ 8 SERV753 IPO Strategy Map................ 34 Hot’s New Innovation Offerings.......... 49 Value Proposition................................. 9 Inputs............................................... 35 Hot’s Innovation Process.................... 50 Design Consultancies..................... 10 Process............................................. 36 Diagnose.......................................... 51 Creative Agencies............................ 11 Outputs............................................ 37 Co-create......................................... 52 Innovation Consultancies............... 12 Success Factors.............................. 38 Train to Sustain................................ 53 Management Consultancies........... 13 Roadblocks to Innovation............... 39 Adapt & Maintain............................. 54Competitive Landscape Overview.......... 14 Questions to Ask our Clients.......... 40 Application: Diagnose......................... 55 IPO Breakdowns.............................. 41 Application: Co-create......................... 56 Core Problems..................................... 42 Application: Train to Sustain................ 57 Core Building Blocks........................... 43 Application: Adapt & Maintain............. 58 References........................................... 60 Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 2
    • Who is Hot Studio?Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 3
    • Hot StudioAn experience design company Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 4
    • Quick FactsHot Studio is a people-centered experiencedesign company founded in 1997.“We collaborate with business leaders, innovativeorganizations, and emerging companies tocreate breakthrough products and services thathave global reach and local impact. “CLIENT LIST EXPERTISEAOL BrandingAncestry.com Digital StrategyEbay ContentCisco ResearchDwell Systems DesignElectronic Arts EngineeringGap, Inc. User ExperienceGuggenheim Visual DesignNikeSalesforcehotstudio.com Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 5
    • CapabilitiesSTRATEGY DESIGN TECHNOLOGYCustomer experience Brand identity Analytics & measurementProduct innovation Data visualization Content management solutionExperience mapping Information architecture Implementation managementBrand strategy User-interface design Mobile & multi-touchContent strategy Application design application developmentCompetitive analysis Website design PrototypingResearch Mobile & multi-touch devices Web applicationTechnology assessment Print communications development& roadmapping Game design Motion designhotstudio.com Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 6
    • Service Package DELIVERY SYSTEM ENHANCING SERVICES FACILITATING SERVICES Hot OfficesCORE PRODUCT Pro-bono Consulting Website / Blog Website Facebook PageUser Experience Design Case Studies Twitter PageBranding Design Workshops Pinterest PageDesign StrategyImplementation Word of MouthCo-creation Conference Talks Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 7
    • Case StudiesANCESTRY.COM POPTECH! APP KIVA.COM“The goal was to enhance the site experience “Blending geography, history, and ethnography “The goal was to improve Kiva’s online lendingfor loyal contributors and rigorous researchers across multi-layered, dynamic graphics, the experience. Redesigning the site also meantwhile delivering an intriguing, intuitive PopTech app lets users discover surprising the opportunity to better connect lendersexperience for the hobbyist newly acquainting information whose implications are paving the with borrowers, articulate Kiva’s mission andthemselves to the world of genealogy.” way for how we live and how we can live.” purpose, and provide better education to the lending community.”hotstudio.com Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 8
    • Value Proposition HOT STUDIO For companies that need people-centric design solutions, Hot Studio is an experience design consultancy that delivers digital user-experience and visual design expertise. Unlike other creative companies, our service is highly collaborative because of cultivated trust and long-term relationships with our co-conspirators. Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 9
    • The Competitive Landscape / Design Consultancies HOT STUDIO HUGE INC. Physical Portfolio “Create a cross-platform “We work to understand and experience that leverages the translate user behavior into strengths of each platform.” solutions that meet business Portfolio reflects strictly digital work. and brand objectives. “ Integrates marketing strategy unlike competitors. ADAPTIVE PATH Portfolio reflects strictly digital work. “We help companies create products and services that REBOOT deliver great experiences for their “We help the world’s leading customers.“Portfolio reflects strictly organizations become more digital work. responsive to the communitiesSmall Business Clients they serve. “ Strictly social Fortune 500 Clients innovation and policy reform. FJORD “We don’t just create breakthrough digital services for VERY DAY our clients; we redesign people’s “We passionately believe that relationships with the world user-centric solutions based around them. “ Expertise in service on genuine user insights can design. Portfolio reflects strictly digital empower, enrich and energize work. both people and brands. “ Expertise in service design. FROG DESIGN “frog works with leading ZIBA DESIGN “Obsessive love for the beautiful companies...design, engineer, experience: that moment when and bring to market meaningful products and services. “ an object, space or event makes a powerful connection with the Digital Portfolio person experiencing it.” Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 10 Portfolio reflects strictly physical work.* comapnay’s webpage
    • The Competitive Landscape / Creative Agencies TOMORROW’S HOT STUDIO BBDO High internal collaboration Will take branding and strategy to “Our mission is to create another level, instilling branding and deliver the world’s most values throughout the entire compelling commercial content organization. across all mediums and screens. “ Portfolio focuses on commercial content. CRISPIN PORTER + BOGUSKY “Our focus is on solving business WIEDEN KENNEDY challenges first, not making ads, and we have a media- “As advertisers, our job is neutral creative approach with a generally to communicate – to particular strength in interactive. tell stories that can motivate people to do something. “ Partners “ with NGOs to help improve the world. Designs withconsumers ConsumersDesigns at Also is an incubator. RAZORFISH “Razorfish is a full-service digital J WALTER THOMPSON agency at the intersection of “JWT is the world’s best-known creativity, marketing communications media and technology.” brand. “ More traditional than competitors. R/GA “The Agency for the Digital Age.” Ad agency transforming offerings into designing more for the experience economy. Siloed work habits Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 11 * comapnay’s webpage
    • The Competitive Landscape / Innovation Consultancies TOMORROW’S HOT STUDIO DOBLIN GROUP Will be actively involved in helping “We use a range of proprietary Organizational Innovation clients solve organizational methods and tools that problems that will best support generate sophisticated insights their customer’s experience. and increase your innovation effectiveness. “ ARICENT GROUP “The Aricent Group provides INNOSIGHT consulting, design, and “We work with companies around engineering services that help the world to develop and bring to companies innovate better.” market simple, convenient, low- They own Frog Design cost solutions that change the game—and even change lives. “Small business Fortune 500 AT KEARNY Focus on portfolio management. “We are a global team of forward- thinking, collaborative partners INNOVATION LABS that delivers immediate results “InnovationLabs is recognized and a long-term transformational as one of the world’s leading advantage.“ innovation consulting firms offering a complete suite of CONTINUUM innovation services. “ “focus has been to help organizations drive business OVO INNOVATION innovation through the design “Our goal is help every company of products, services and we work with define and build experiences .“ Very close to a innovation capabilities, leading creative consultancy. to the concept of innovation as a business discipline.” Product & Service Innovation Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 12 * comapnay’s webpage
    • The Competitive Landscape / Management Consultancies TOMORROW’S HOT STUDIO BOSTON CONSULTING GROUP Front-stage Focused Services Will combine their design skills “BCG is a global management with business skills and be able consulting firm and the world’s fill the gap between management leading advisor on business and creative consulting. strategy. “ ACCENTURE MCKINSEY & COMPANY “Using our industry knowledge, “Knowledge development occurs service-offering expertise and within our eighteen industry tech capabilities, we identify new practices, eight functional business and technology trends practices, and the McKinsey and develop solutions to help Global Institute. “ Focuses more on Sector Generalists clients around the world.“Sector Specialist exploring and solving problems than Focused on technology innovation. on performance and results. ARTHUR D LITTLE SDG GROUP “We are acknowledged as a “Global management consulting thought leader in linking strategy, firm, leadership in the technology and innovation.” practices of Business Process Focused on technology innovation. Reengineering, Corporate Performance Management BAIN & COMPANY and Collaborative Business “On a mission to redefine the Intelligence. “ management consulting industry to focus on delivering client results not just producing report.“ Back-stage Focused Services Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 13 * comapnay’s webpage
    • Tomorrow’s Competitive LandscapeDESIGN CONSULTANCIES CREATIVE AGENCIES INNOVATION CONSULTANCIES MANAGEMENT CONSULTANCIESHot’s biggest competitor Tomorrow’s agencies are Hot could position While we don’t have towould be VeryDay who caught-up in connecting themselves as a design compete with the bigfocuses their efforts on with the experience consultancy focused boys here, there is ancreating products and economy. Because Hot on providing the right opportunity to becomeservices with people is already doing this, we organizational tools to a smaller managementin mind, but also work can move on to bigger support good design, consultancy focused onto help organizations and better things. resulting in a culture good design and greatgrow within to provide that supports the best results.the right foundation for customer experience.innovation. Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 14
    • What is Innovation?Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 15
    • Innovation GlossaryCHANGE MANAGEMENT INNOVATION CO-CREATION SERVICE DESIGNManaging a company or A new idea, product, process, An approach that aims to A design discipline thatorganization’s shift, in part of or concept that creates a serve the interests of all combines research, strategy,in whole, from one industry competitive advantage or stakeholders by focusing and design to co-createposition to another. improves one already in on their experiences and innovations that are viable for existence. how they interact with one the client, desirable to the endChange Management is another. user, and delivered reliably.closely associated with a shift Innovation is closelyin strategic direction. associated with competitive Co-Creation is closely Service Design is closely advantage. associated with lowering associated with both costs and employee turnover incremental and radical while raising customer value.* innovation.Ramaswamy(2010) Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 16
    • Innovation & Change Management ReadingsThe next 16 pages are overviews of research that was conducted to familiarizeourselves with the historical and current state of innovation and changemanagement from several author viewpoints.ARTICLESInnovation: The Classic Traps The Holy Grail of Design MeasurementBreathing Life into Delicate Ideas Help Wanted 2.0: Engaging Other to Tackle WickedInnovation Metrics ProblemsOrganizing to Innovate Manging Your Innovation PortfolioDoing it Right Building the Co-Creative EnterpriseTen Faces of Innovation Innovating a Turnaround at LEGOFuzzy Front End: Effective methods, Tools, and Techniques Customer Intimacy and other Value DisciplinesLeading Change: Why Transformation Efforts FailMcKinsey Global Survey Results: Assessing Innovation Metrics Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 17
    • “Innovation: The Classic Traps” Kanter(2006) “Every few years, innovation resurfaces as a prime focus of growth strategies. And when it does, companies repeat the mistakes they made the last time.””KEY CONCEPT INNOVATION BUILD THE RIGHT TEAM DON’T STRANGLE INNOVATIONCompanies repeat the “Too often grand “Groups that are “Classic mistakes liesmistakes that fall into four declarations about convened without in process; specifically,categories; innovation are followed by attention to interpersonal the impulse to strangle mediocre execution that skills find it difficult innovation with tight• Strategy(Culture) produces anemic results, to embrace collective controls—the same• Process (Flexibility) and innovation groups are goals, take advantage of planning, budgeting, and• Structure(Connection) quietly disbanded in cost- the different strengths reviews applied to existing• Skills(Team Leaders) cutting drives.” various members bring, businesses.” or communicate well enough to share the tacit knowledge that is still unformed...” Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 18
    • “Breathing Life Into Delicate Ideas” Gardien(2006) “An often-heard statement in the innovation discussion is that companies need more ideas, where in fact they are in need of better ideas and they are in need of a more disciplined implementation.”KEY CONCEPTS INNOVATION INNOVATOR’S DILEMMA DESIGN PROBES “Innovation often has a “Innovator’s Dilemma “The probe comes fromGrowing complexities higher chance of success describes the familiar the world of conversationaround innovation require if it is considered as a scenario whereby products and dialogue; it is non-wider integration of network of options that have established linear and adapted todifferent stakeholders. that can be explored to find themselves on the market discovery and illuminating the best route to market.” attempt to maintain situations.”Companies must manage their position by dinttheir core business, new of a succession of newbusiness, and creating features.”viable options for thefuture all at once tosuccessfully Innovate. Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 19
    • “Innovation Metrics” Scott Et Al(2008) “Metrics that seem to make sense can actually lead to behavior that is antithetical to the long-term pursuit of profitable growth.”KEY CONCEPTS FOCUS FOCUS FOCUS CONSTANTLY REVIEW METRICS ACCURATE MEASUREMENTSCompanies need to be “To determine the metrics “Often, the right metrics “Organizations trying tomindful of metrics traps, that should be on every are available only in improve the internal flowsuch as focusing on too executive’s dashboard, a hindsight, so senior of innovative ideas mightfew metrics, funneling company needs to come management should measure the numberactivities toward low-risk to a consensus with regard always be ready to add, of employee-submittedor low-reward activities, to its innovation strategy drop, or change any metric ideas.”& biasing inputs over and identify the company- adopted.”outputs. specific barriers that inhibit its ability to create growth Continually refresh their through innovation.”list of metrics to maintaingain alignment aroundselected metrics. Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 20
    • “Organizing to Innovate” Scott Et al (2008) “Success ... requires going beyond winning once to developing deep capabilities that allow a company repeatedly to disarm disruptive threats and seize new oportunities.”KEY CONCEPTS TAKE ON INNOVATION INNOVATION TRAINING UNITS INNOVATION ADVISORY BOARDSCompanies need to “Companies need to “Training unit may reside “An ideal advisory boardorganize in ways that ensure that the structures within an established includes representativesmaximize their ability to they create are appropriate training infrastructure or that can provide input intoleverage individual wins given the innovation exist as an autonomous the full range of innovationand churn out successful challenges they face.” group of specialized, levers— business models,growth businesses year innovation-focused management approaches,after year. resources.” and technology—making it distinctly different fromCommon language helps groups commonly formedavoid many mind-set traps as a means to enhancethat make innovation R&D.”difficult, Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 21
    • “Doing It Right” Cooper(2000) “An estimated 46 percent of the resources that companies devote to the conception, development and launch of new products go to ventures that don’t succeed—they fail in the marketplace or never even make it to market.”KEY CONCEPTS INNOVATION KNOW YOUR CUSTOMER CROSS FUNCTIONAL TEAMSSeek differentiated, “Product innovation is now “The voice of the customer Move to team approachessuperior products. the No. 1 plank in many must be an integral part of that cut across functional companies’ strategic plat- your new-product process. lines. Functional managersMore time and resources forms.” This begins with idea must increasingly play themust be devoted to the generation. Use market role of resource providersactivities that precede the research and customers to project teams anddesign and development of as input into the product’s team advisers, rather thanthe product. design, not just as a bosses. confirmation of it.”The voice of the customermust be an integral part ofyour new-product process. Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 22
    • “The Ten Faces of Innovation” Kelly(2006) “The right project at the right time can spark a culture of innovation that takes on a life of its own ... these ten types of innovators that can make it happen.””KEY CONCEPTS LEARNING PERSONAS BUILDING PERSONAS THE TEAMRecognition that fostering These “personas are driven These personas build “Make sure these tena culture of innovation is by the idea that no matter “roles that apply insights personas have a place incritical to success, how successful a company from the learning roles and your organization. Together currently is, no one can channel the empowerment you can do extraordinaryThere are ten personas afford to be complacent.” from the organizing roles to things.”that each team needs to make innovation happen.”facilitate innovation.These personas areabout being innovation,rather than merely doinginnovation. Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 23
    • “Fuzzy Front End: Effective methods, Tools, and Techniques” Koen(2002) “Lack of research into best practices made the FFE one of the most promising ways to improve the innovation process. ””KEY CONCEPTS CULTURE OF INNOVATION PLANNING OPPORTUNITY ANALYSISThere must be a culture “The element of “Scenario planning “Roadmapping, technologythat encourages innovation leadership, culture, and provides a disciplined trend analysis, competitiveand creativity. business strategy sets the approach for imagining intelligence analysis, environment for successful and preparing for the customer trend analysis,Companies need a innovation. Proficiency in future. It stimulates and scenario planningcollaborative culture that this element distinguishes decisions that one would are all employed in thisencourages knowledge highly innovative otherwise ignore, and it element. In opportunitycreation. companies from less confronts the prevailing identification, these tools innovative ones” mind-set. The challenge were used to determine ifOpportunity analysis for the company is to use an opportunity existed.”should be built into the scenario developmentinnovation process.. methods to create multiple views of the future.” Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 24
    • “Leading Change: Why Transformation Efforts Fail” Koetter (1995) “Every few years, innovation resurfaces as a prime focus of growth strategies. And when it does, companies repeat the mistakes they made the last time.””KEY CONCEPTS INNOVATION LESSONS ABOUT CHANGE A GUIDING COALITION“A successful change Successful innovation and “The most general lesson “Major renewal programsprocess goes through a change is the long process to be learned from the often start with just oneseries of eight distinct that should be done in more successful cases is or two people. In cases ofstages. These stages specific steps that must be that the change process successful transformationshould be worked through done in sequence for long goes through a series of efforts, the leadershipin sequence. Skipping term success. phases that, in total, usual- coalition grows and growssteps to try to accelerate ly require a considerable over time. But wheneverthe process invariably length of time. Skipping some minimum masscauses problems.” steps creates only the is not achieved early in illusion of speed and never the effort, nothing much produces a satisfying worthwhile happens.” result.” Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 25
    • “McKinsey Global Survey Results: Assessing Innovation Metrics” “A recent McKinsey Global Survey shows that companies are satisfied, overall, with their use of metrics to assess innovation ... many findings suggest that they shouldn’t be.””KEY CONCEPTS METRICS CAN SHAPE INNOVATION POORLY CHOSEN METRICS METRICS NEED ALIGNMENTCompanies use innovation “The many companies “Many companies Although executives aremetrics to provide that don’t track their would gain a deeper on the whole satisfied withstrategic direction for innovations can probably understanding of their the way their companiesinnovation projects, gain innovation performance use in- novation metrics,and to diagnose and a better understanding if they paid more the findings indicateimprove overall innovation of their innovation attention to input significant room forperformance. performance just by metrics as well as output improvement in many introducing some of these metrics, benchmarked individual applications—Metrics are important for metrics.” themselves against their most notably, aligningevaluating both input and competitors, and dug into metrics with individualoutput metrics. the relationship between performance incentives innovation spending and and using them to shareholder value.” communicate effectively with investors.” Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 26
    • “The Holy Grail of Design Measurement” Mrazek (2011) “To get a better handle on innovation, some companies have attempted to constrict the process with existing measurement techniques.””KEY CONCEPTS STAY FOCUSED ON GOALS METRICS HELP INNOVATION TEAMS SHOW YOUR STORY“While companies continue “If the company “To help demystify design “Metrics shouldn’t beto innovate through is currently focused on and innovation, a metrics opaque figures they shouldtechnology, it’s important cutting out inefficiencies system should reassure its show how your actions linkthat they innovate through from the organization to stake- holders by providing to the outcomes you’veother means, as well.” better compete with more- structure for an otherwise achieved. By documenting efficient rivals, the team nebulous process.” assumptions and clearly“A good metrics system may want to focus on stating the methodologyshould also add value to driving either supply chain behind your results, you’llthe project work itself.”. or product development make the numbers more efficiencies.” meaningful, win credibility along the way, and help your organization learn.” Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 27
    • “Managing Your Innovation Portfolio” Nagji &Tuff (2012) “Every few years, innovation resurfaces as a prime focus of growth strategies. And when it does, companies repeat the mistakes they made the last time.””KEY CONCEPTS MAINTAIN THE RIGHT BALANCE TOTAL INNOVATION SHARE THE ROLE OF INNOVATIONTransformational “Firms that outperform “Targeting a healthy “Managing total innovationinitiatives require a unique their peers tend to allocate balance of core, adjacent, will require a significantmanagement approach. their investments in a and transformational shift for most companies, certain ratio: 70% to safe innovation is a vital step which are used to a lessFunding should come bets in the core, 20% to toward managing a total orderly approach. But thefrom outside of the normal less sure things in adjacent innovation portfolio, but pathway to such disciplinebudget. spaces, and 10% to high- it immediately raises is clear. The first step is to risk transformational an issue: To realize the develop a shared senseManagement should focus initiatives.”. promise of that balance, a of the role innovationon a few promising ideas, company must be able to plays in driving thenot the ruthless filtering of execute at all levels.” organization’s growth andmany. competitiveness.” Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 28
    • “Help Wanted 2.0: Engaging Other to Tackle Wicked Problems” “Every organization has the capacity to attack the world’s wicked problems – or their own complicated, intractable challenges – by welcoming collaborators.”KEY CONCEPTS ATTACH WICKED PROBLEMS THE RIGHT PEOPLE ARE CRITICAL LAUNCH A JOINT VENTURECompanies need to know “Tackling the wicked “As he put it in a recent “Joint ventures are nothingwhen to ask to help. problems of our age is not interview, “In effect, people new, but the way in which optional. We will have to should only be paid to executives have begun toFinding the right help face up to them eventually solve wicked problems. approach them to tackleis critical to successful – or we will pay the price Others can be solved complex challenges hasinnovation. for ignoring them.” by robots.” In practice, evolved to become less executives urgently need to about ‘command andCompanies can get help focus on finding the right control’ and more aboutby Sourcing the crowd, ask people to tackle the right ‘watch and learn.”experts, or create a joint tasks at the right time.”adventure. Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 29
    • “Building the Co- Creative Enterprise” Ramaswamy & Gouillart (2010) “Realizing that interactive technologies have changed people’s behavior, a small but growing number of companies have invited customers to participate directly in the design of products and services.”KEY CONCEPTS CO-CREATIVE FOCUS WHY CO-CREATE? QUOTE SUBJECTGive stakeholders the Co-creation “Focuses New business insights, In most organizations,opportunity to manage on the interests of all new sources of revenue work is hierarchical &their own work experiences stakeholders and how the and profit, lower costs and sequential ... What getsand solve problems ecosystem can maximize risks. lost is the ability of multiple the size of the pie; individuals to have aCo-creative companies maximizing the share of dialogue. And that’s a bigbenefit from lower costs value captured by the firm loss. Business problemsand less exposure to risk. is secondary” are complex... a wide range of expertise and perspectives are often need to come together to hear and see the issues firsthand and work on a resolution.” Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 30
    • “Innovating a Turnaround at LEGO” Robertson & Hijuler (2009) “Today, as the overall toy market declines, LEGO’s revenues and profits are climbing, up 19% and 30% respectively in 2008..””KEY CONCEPTS THE VALUE OF LEADERSHIP HOW LEGO MANAGES INNOVATION ENGAGE CUSTOMERSInnovation radiates from “Central to LEGO’s “LEGO managers take a “Drawing on input fromleadership. turnaround is a new broad view customer communities structure for strategically of innovation that includes supported by cED, theDistribute innovation coordinating innovation not only new products concept Lab invents LEGOacross a range of activities, led by but pricing plans, com- games, a new productdepartments. a cross-functional team: munity building, business category. Though most the Executive Innovation processes, and channels to LEGO products are boughtSupport customer Governance Group.” market, all of which can be by fathers for their sons,communities and support powerful business drivers.” games are purchasedthem for product ideas and more often by mothers andcreating games. played by the whole family.” Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 31
    • “Customer intamacy and Other Value Disciplines” “Every few years, innovation resurfaces as a prime focus of growth strategies. And when it does, companies repeat the mistakes they made the last time.”KEY CONCEPTS ACHIEVING CUSTOMER INTIMACY PRODUCT LEADERSHIP QUOTE SUBJECTEvery company must This discipline is reached “Companies in this “Companies that sustainunderstand and strive to by “continually tailoring discipline seek to value leadership withinreach their Value Discipline. and shaping products continuously stream their industries will beThere are three types of and services to fit an state-of-the-art products run by executives thatvalue discipline increasingly fine definition and services. These focus the business on- Customer Intimacy of the customer.” companies must be its value discipline. They- Operational Excellence Creative. They must able will personally lead the- Product Leadership to commercialize their company’s drive to develop products quickly, and new capabilities and to they must be relentless in change the embedded pursuing new solutions to work habits, processes, the problems that their and attitudes that do not latest product just solved.” align with the discipline they have chosen.” Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 32
    • “SERV-753” Innovation ProcessThroughout our research, our team affinitized key concepts into astrategic flow map that represents a holistic view of all articles. Inorder to create a sustainable and viable organizational culture andbusiness that result in the best innovative prodcuts and services,companies must take into consideration the following slides... Inputs Process Company’s Vision Sustainable & Viable Outcomes Outcomes Organizational Culture & Business Company’s Goals Outputs Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 33
    • “SERV-753” Innovation Process Inputs Process Company’s Vision Sustainable & Viable Outcomes Outcomes Organizational Culture & Business Company’s Goals OutputsKoen et al. (2002) Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 34
    • “SERV-753” Innovation Process INPUTS • Proper input metrics to ensure innovation Inputs culture, avoid fear of innovation. Process • Innovation requires real commitment of resources. • It is critical that an organization focus not merely on the innovation, but also; hiring Company’s the right team components. Vision • Allocate specific funding while diversifying their portfolio against excess Sustainable & Viable risk that may stifle future innovation. Outcomes Outcomes Organizational Culture & Business Company’s Goals Outputs Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 35
    • “SERV-753” Innovation Process PROCESS • Ideas should be generated and quickly brought to critical decision points that either move the project forward or kills it. • Ideas should come from a broad range of Inputs Process stakeholders close to the product or idea. • The gap between strategic objectives and an outcome should be updated regularly and adjusted for risk or new opportunities. • Process stage should indicate whether Company’s a cultural shift is taking hold.. Vision Sustainable & Viable Outcomes Outcomes Organizational Culture & Business Company’s Goals Outputs Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 36
    • “SERV-753” Innovation Process Inputs Process Company’s Vision Sustainable & Viable Outcomes Outcomes Organizational Culture & Business Company’s Goals OUTPUT • Where innovation process will begin to bare fruit. Organizations should be able to identify new customers and profit growth as innovations come to test. • ROI must be combined with other metrics such as number of percentage of profits from new products in an industry. Outputs • Metrics should tell an accurate story about how effectively the organizations innovation process has been implemented. Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 37
    • Success Factors of Innovation INPUT PROCESS • Culture • Allocated Financial • Speed/Turnover • Outside-in Inputs Assessment Tools Resources Process • Co-creation • Growth Gap • Allocating • Diverse Portfolio; HR Focused Core, Adjacent, Resources Transformative Company’s Vision Sustainable & Viable Outcomes Outcomes Organizational OUTCOMES Culture & Business • ROI • Reform Culture Company’s • % of Profits From • # New Patents Goals New Customers • % of Profits in New Categories OUTPUT • Better Hiring • External Metrics Techniques System • Internal Metrics • Positioning Transparency Outputs Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 38
    • Roadblocks to Innovation PROCESS • Arbitrary • Broken/ Metrics Wasteful Processes Inputs • Micromanaging Process INPUT • Un-user- • Unclear Mission centered Design • Poor Hiring • Fear Failure Procedures • Poor Organizational • Poor Culture Communication Company’s Vision Sustainable & Viable Outcomes Outcomes Organizational OUTCOMES Culture & Business • The need to show success Company’s early on in the Goals process. OUTPUT • No Organization/Vision Alignment • Fear of Risk • Unbalanced Portfolio Outputs Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 39
    • Questions to Ask Clients PROCESS How can we INPUT work together to Inputs Process How do you innovate better? innovate now? Company’s Vision Sustainable & Viable Outcomes Outcomes Organizational OUTCOMES Culture & Business How can we Company’s Goals help you sustain innovation? OUTPUTS How can we help you create a successful Outputs product, service, and business? Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 40
    • Review of Innovation Problems & Breakdowns “A mistake is to act as if only products count, even though transformative new ideas can come from a range of functions, such as production and marketing.” INPUT BREAKDOWNS PROCESS BREAKDOWNS OUTPUT BREAKDOWNS • Poor Hiring Procedures • Arbitrary Metrics • No Organization/Vision Alignment • Poor Communication • Micromanaging • Fear of Risk • Fear Failure • Unclear Mission • Unbalanced Portfolio • Poor Organizational Culture • Broken/Wasteful Processes • Un-user-centered DesignKanter. (2006), Koen (2002) Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 41
    • Core Problems of InnovationLACK OF ALIGNMENT OF POOR UNDERSTANDING OF POORLY ASSEMBLED TEAMS POORLY CHOSEN METRICSVISION/PROJECTS EMPLOYEES & CUSTOMERS Companies do not Companies often useExisting companies only Employees are not apart of strategize their hirees, their metrics improperlyfocus on a handful of the internal decision making resulting in the lack of key by overemphasizingdeliverables; which ensures processes. This prevents thinkers and doers to fit output results rather thanthe success of only one area employee buy-in. their profile for innovation. applying them to the entireof expertise. innovation process. Companies are removed Internal culture isThis leaves company’s from the customer uncondusive when teams Sometimes they alsowith a fragmented mission and frontline employee are micromanaged and lack choose inadequate metricsfor employees and an experience, due to the trust for their employers. that don’t suit their specificinconsistent experience for misuse of customer needs or company goals.customers. research. Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 42
    • Core Innovation Building BlocksALIGNMENT OF THOUROUGH UNDERSTANDING OF PROPERLY ASSEMBLED TEAMS APTLY CHOSEN METRICSVISION/PROJECTS EMPLOYEES & CUSTOMERS Service designers Service designers useService design thinking Empathy is an integral have multidisciplinary methods to create wellprovides the foundation part of a service design backgrounds which allow balanced metrics that gothat allows for a holistic approach. Understanding them to assemble great beyond ROI and holisticallyexpression of the customers and employees teams. They understand align with company vision.company’s vision and and the context in which team dynamics and how Oftentimes, companies onlygoals which permeates they operate is essential to skillsets are best utilized. focus on output metricsthroughout all products and creating buy-in. rather than metrics thatservices. They also create and support the front-end This deep understanding facilitate executive training process of innovation. ensures a holistic vision programs that are inline throughout the entire brand with desired culture. ecosystems. Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 43
    • What is Innovation @ Hot? Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 44
    • Hot’s ServicesHot currently helps clients define what they need designed and thencollaboratively executes that design as needed. Often times, issueswithin the client’s organization can hinder Hot’s progress... What Hot controls now What the client controls Strategy/ Branding/ Product/Service Delivery Systems UX/Visual Vision/Goals Customer Relationship Management Internal Company Culture Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 45
    • Extending Hot’s ServicesIf Hot can reach beyond their current portfolio of digital designand development, they can co-create more efficient systems thatsupport holistic innovation within their client’s organizations. Poor delivery systems can affect What Hot the entire customer controls now experience. What the client controls Strategy/ Service does Branding/ Product/Service not stop at the If the company’s Delivery Systems purchase-point. UX/Visual vision is not clear, this may negate all If not recognized, it project work. can be detrimental to previously Vision/Goals designed work. Customer Relationship Management Internal Poor internal culture Company can hinder project Culture progress. Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 46
    • Co-Creating the Whole PieSuccess is magnified when Hot and their clientscan begin holistically creating company value. What Hot & the client control together Strategy/ Product/Service Branding/ Delivery Systems UX/Visual Mission/Vision Customer Relationship Management Internal “Give all your stakeholders a Company Culture bigger say, and they’ll lead you to better insights, revenues, and profits.”Ramaswamy(2010) Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 47
    • Tomorrow’s Value Proposition HOT STUDIO For organizations looking for holistic innovation , Hot Studio is an experience design and innovation consultancy that works with you to create products and services that resonate throughout your company’s culture and customer experiences. Unlike other creative companies, we reach beyond aesthetic design to co-create building blocks that cultivate innovation. Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 48
    • Innovation & Change Management @ HOTInnovation takes place within three areas of your organization: organizationalarchitecture, the inner workings of your product and service offerings, andthe elements that influence your customers’ experience.At Hot, we take a detailed look at each of these areas to diagnose thebreakdowns of your company’s highest potential.INNOVATION PACKAGEAdapted from Ten Types of Innovation - DoblinORGANIZATIONAL ARCHITECTURE PRODUCT & SERVICE OFFERINGS CUSTOMER EXPERIENCEProfit Models Brand Back-stage ServicesNetworking Product Performance Distribution ChannelsStructure Product Systems Customer EngagementProcesses Front-stage Services Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 49
    • High-level ProcessDIAGNOSE CO-CREATE TRAIN TO SUSTAIN ADAPT & MAINTAINFirst-and-foremost, Every company is Once a strategy is in Since innovation iswe have to figure different, with no one- place, we give you the forever evolving, weout the source of the size-fits-all solution. tools to sustain and want to make sure yourroadblock or breakdown. That’s why we would cultivate the system. innovation strategyOnce inspected and work with your company Whether it be through stays alive. On-goingdiagnosed, we can to develop an innovation a personalized metrics redefinition andisolate and design strategy that will work system, hiring process, maintenance will providearound it. just for you. or executive training the basis for a long- program, we want to lasting partnership. make sure it lasts. Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 50
    • Our Process DIAGNOSE GOAL Pinpoint and isolate roadblocks and breakdowns in any/all of the three innovation categories. This way we can find what’s working, what isn’t, and where to go from there. HOW Business mapping, journey mapping, blueprinting, contextual research, culture assessment surveys, employee tree analysis, metrics assessment tools, portfolio audits. Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 51
    • Our Process CO-CREATE GOAL To tap into the inner-workings of your organizations current dynamic and processes. By understanding all the stakeholders in your organization, we can tap into the collective genius that already exists within your organization, as well as finding a solution that works for your unique organization. HOW Innovation agenda, scenario planning, opportunity mapping, contextual research, customer needs assessments, innovation labs, mind-mapping, business model innovation, cultural probes, system models, innovation portfolio balancing. Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 52
    • Our Process TRAIN TO SUSTAIN GOAL After diagnosing and creating an innovation strategy that works for you, we have to make sure it’s sustainable! In this phase, we transmit our tacit knowledge and skills to you. HOW Innovation metrics, process metrics, output metrics, executive and leadership training programs, hiring strategies, portfolio metrics. Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 53
    • Our Process ADAPT & MAINTAIN GOAL Just like life, innovation is always evolving! What works for you today, might not tomorrow. For this reason, an established, open-dialogue will help us to maintain a long-lasting relationship, to help your company keeping growing. HOW Adapting custom metrics, quarterly audits, ongoing workshops, resident facilitators. Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 54
    • Applying our Process DIAGNOSE ORGANIZATIONAL ARCHITECTURE Organization cultivates a micromanagement culture that stunts innovation PRODUCT & SERVICE OFFERINGS Company’s has an unbalanced portfolio that results in marginal profits CUSTOMER EXPERIENCE Fragmented experience across various touchpoints Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 55
    • Applying our Process CO-CREATE ORGANIZATIONAL ARCHITECTURE Conduct workshops to isolate culture problem PRODUCT & SERVICE OFFERINGS Develop innovation metrics that align with company voice & mission CUSTOMER EXPERIENCE Survey / research customers to pinpoint, resolve, and transcend existing offerings Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 56
    • Applying our Process TRAIN TO SUSTAIN ORGANIZATIONAL ARCHITECTURE Develop executive training and leadership programs to instill brand management techniques PRODUCT & SERVICE OFFERINGS Workshops encouraging all employees to collaboratively generate innovative ideas CUSTOMER EXPERIENCE Corporate research excursions allow employees to experience the front-stage of service Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 57
    • Applying our Process ADAPT & MAINTAIN ORGANIZATIONAL ARCHITECTURE Quarterly culture audits to determine employee satisfaction PRODUCT & SERVICE OFFERINGS Re-approach metrics to ensure relevance to changing economy CUSTOMER EXPERIENCE Periodically evaluate customer satisfaction with surveys and metrics Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 58
    • “Engaging the whole organization in understanding that innovation is the fundamental way that the company brings value to its customers.”Koen et al. (2002) Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 59
    • ReferencesAnthony, S. D., Johnson, M.W., Sinfield, J.V., Altman, E.J. (2008). Innovation Metrics Innovator’s Guide to growth: Putting Disruptive Innovation to Work Harvard Business Review, 1-14.Anthony, S.D., Johnson, M.W., Sinfield, J.V., Altman, E.J. (2008). Organizing to Innovate Innovator’s Guide to Growth: Putting Disruptive Innovation to Work: Harvard Business Press.Cooper, R.G. (2000). Doing it Right: Winning with New Products. Product Innovation Best Practices Series (pp. 1-11). Review: Harvard Business Press.Gardien, P. (2006). Breathing Life into Delicate Ideas (pp. 1-20): Koninklijke Phillips Electronics N.V.www.hotstudio.com Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 60
    • References cont.’dKanter, R.M. (2006). Innovation The Classic Traps. Harvard Business Review(November 2006), 1-13.Kelly, D.. (2006). The Ten Faces of Innovation. Rotman, Spring/Summer, 30-33.Kim, W. C., & Mauborgne, R. (2005). Blue ocean strategy: How to create uncontested market space and make competitioni rrelevant. Harvard Business Press.Koetter, J.P. (2000). Leading Change: Why Transformation Efforts Fail. Harvard Business Review, 59-67.McKinsey. (2008). Assessing Innovation Metrics. The McKinsey Quarterly.Mrazek, D., Lucente, S., Wakid, K., Sato,S., Wai, C., Menter, A., Hartley, P. (2001). The Holy Grail of Design Measurement. The Design Management Institute(Reprint #11222WAK06), 6-16. Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 61
    • References cont.’dNagji, B , Tuff, G. (2012). Managing Your Innovation Portfolio. Harvard Business Review(Mayb 2012), 3-11.Nagji, B. , Walters, H. (2012). Help Wanted 2.0: Engaging Others to Tackle Wicked Problems. Rotman(Spring 2012), 73-76.Koen, P.K. , Ajamin, G.M. , Boyce, S. , Clamen, A. , Fisher, E. ,Fountoulakis, S. , Johnson,A. , Puri,P. Seibert,R. (2002). Fuzzy Front End: Effective Methods, Tools, and Techniques. The PDMA Toolbook for New Product Development, 5-32.Ramaswamy, V. Gouillart, F. (2010). Building the Co-Creative Enterprise. Harvard Business Revie2002&w(October 2010), 1-9.Treacy,M. ,Wiersema,F.(1992). Customer Intimacy and Other Value Disciplines. Harvard Business Review(January- February 1993), 84-93. Innovation & Change Management | SERV753 - Service, Innovation & Enterprises | February 24, 2013 62
    • Thank YouSCAD SERV753 - Service, Innovation, and Enterprises | February 24, 2013Prepared for Hot Studio by Play Nice Service Design / Richard Ekelman, Lauren Peters, Lindsay Vetell-and professor Robert Bau Innovation & Change Management | SERV753 Service, Innovation & Enterprises | February 24, 2013 63