10 years of business engineeringINNOVATION STRATEGY TO EXECUTIONAprile point of view and approachMay 2013
Sustained innovation is keyfor prosperityTIME FROM NOW (YEARS, MONTHS)1 3 4 5 6 7 82 9The right mix balances initiatives for effectiveness.InideationIndevelopment orintroductionIn operationTheRightMix10VALUE
Innovationstrategytoexecution requires an holistic approachProgramsExecute with therightpractices, teamsand toolsProductsGenerate and pursuethe right ideasPortfolioBuild and select theright initiatives• Develop scenarios and roadmaps• Set and execute ideation and concept challenges• Develop inter-functional, collaborative and open networks• Adopt clear and manageable process, with timelybusiness decisions based on effective criteria• Allow visibility and link to portfolio objectives• Allow continuous feedback to be incorporatedinto decisions• Adopt leading practices for managingscope, uncertainties and other relevantdimensions• Develop leadership, culture and highperformance teams• Exploit the power of state-of-the-art tools
Innovationculture mattersCulture is what allows successful strategy to be created and executed.AlignmentAligning innovationwith theorganizationvision, mission andgoals.SpiritShapingmindset, risk takingattitude andbehavior.Leave no room for“not invented here”syndrome.MotivationBuildingdedication, passionand courage.Rewarding successand fast learningfrom failures.ConnectionsSearching andexploitingteamwork anddiversity.In innovation “culture doesn’t eat strategy for lunch”. They go together.
Informationtechnologytools areemergingas keyenablersProduct Lifecycle ManagementComprehensive Capabilities for Process, Data and Team CollaborationStrategic RoadmappingMarket, Product , Regulatory andTechnology RoadmappingSocial Product InnovationWeb 2.0 andEnterprise 2.0Ideation & CrowdsourcingIdeation Challenge LifecycleManagementPhase Gate OptimizationInnovation Process Model
Four interconnectedaspects arewhat makesdifficult tobecomea world-class leaderPeople &CultureProcesses,Practices& MethodsToolsData
A capabilityframeworkcan serve as referencetoengineerthe changeInnovation Process, Practices & MethodsCulture, People & OrganizationInnovation PortfolioProduct Lifecycle Data & TechnologyInnovation Metrics & IntelligenceTechnologyInsightsNew Product Development & IntroductionLaunchManagementBrandsResultsAnalysis
Integratedroadmapping explores scenariosfor gap&opportunity analysisCritical Market 1Critical Market 2Product 1Product 2Product 3Technology 1Technology 2UpgradeFull LaunchDevelopmentStabilize2013 2014 2015 20162012Begins Decline, X% annualGrowing X %Full LaunchDevelopment Full LaunchRetireDevelopment AvailableAvailable UpgradeDevelopmentTypical questions asked duringMarket, Product, Regulatory &Technology roadmapping:Will reallocating resources onTechnology 1 increase theprobability of releasing Product 1sooner before the value of themarket drops?Can the release of Product 1 allowfor an earlier retirement of Product3?How can the release of Product 2be moved ahead of schedule tocapture growing Market 2?What Product is planned to be usedwith Technology 2 since it impacts astrong, growing market?Which consequences the newincoming Regulations 1 will have onTechnology 2 and Product 1?
Open innovation allowscollaborationamongpartners in anecosystemSource: M. Docherty, Venture2 Inc. (with concepts adapted from the book by Henry Chesbrough, Open Innovation: The New Imperative for Creating and Profiting fromTechnology, Harvard Business School Press, 2003)Valuable ideas can come from inside or outside the company (industry) and can go tomarket from inside or outside the company (industry).
Ideasand concepts are pursued and alignedwith theportfolio“CreatingInsights”“CreatingReasons”Approval:Director InnovationDirector IdeationPortfolio LeaderApproval:CTODirector R&D“CreatingOpportunities”Idea GenerationEnrichment&AggregationOpportunityEvaluationOpportunitySelectionConceptSelection• Define and launchchallenges and what- ifscenarios• Conduct ideationworkshops andcollaboration exchange• Capture ideas andbuild repository• Adopt skunk works• Allow idea shapingand stretching• Disseminate ideasand build-up• Assess strategic fitand qualify broadly• Work with lead users• Conduct ideationevents and promoteVoC sessions forcustomer immersion• Manage ideasubmission• Score and prioritizeopportunities• Select concepts• Align portfolio &strategic fit• Investigate technologyreadiness andtechnical solutions• Describe and qualifymarket opportunity• Developopportunity case• Triage of opportunitiesfor further evaluation• Align portfolio &strategic fit
Portfolioallowsvisibility, alignmentwith business strategyand selectionof optionsAlign portfolio with strategyCreate scenariosand optionsDrive consistency ininitiatives evaluationEnable advancedvaluation techniquesCommunicateportfolio decisionsPre-configure chartsand reports forreviewsManage and smoothout resource loads
Phase-gatemakes the innovationprocess manageableandeffectivePhase 0ConceptPhase 1Feasibility &PlanningPhase 2DesignPhase 4LaunchPhase 3TestNo-GoRescopeGoKeep a history ofdecisions, rationalesand ownersFacilitate“closed-loop”assessmentsMake informed gatego/no go and resourcedecisionsMonitor phase activityprogress and projectstatusIntroduce flexibility ininnovation model with scalablephase-gate approach
PLM roadmap helps building a vision and implementpragmatically• Integration of all product-related informationsystems, “individuallysearchable”• Program for reuse ofexistingproducts, formulas, andother intellectual property• Detailed, automatedworkflows to acceleratecompletion of tasks on thecritical path• Use of systems forregulatory and compliance•Powerful “one-stop”search capability to findand retrieve informationfrom multiple sources•Product data isunified, reliable, andreadily accessible•Program and metrics foroptimization of company’sexperience, skills andexisting work•Advanced value and“what-if” analysis of newdevelopment projects•Internal collaborationcapability• Multiple independentand non-scalablesystems• No search andinformation retrievalcapability (paper-based)• Extensive manualprocessing of data• Knowledge leaks/lossCharacteristicsValue Drivers•Partial integration ofsystems (portals)•Some internal cross-functional collaboration•Automated and manualdata processing•Information silos•Basic Stage/Gate processbut not globally deployednor system-enabled4Advanced3Formal2Basic1DevelopingLevel 5World Class• Product developmentdriven by market needs• Development strategiesleverage productplatforms and corecompetencies• Advanced resourceplanning• Seamless integration ofinformation for designand production planning• “Virtual” collaborationwith key customers andsuppliers• Product developmentprojects linked toportfolio management• Gain market share• Acting as global company• Leverage commonality oftechnology/products• Time-to-market• Efficiency focus (limit re-work)• Document management• Regulatory andcompliance• Ability to act as separatebusiness units• Site-focus• Enhanced margin• Advanced regulatory andcompliance• Internal collaborationnetwork• Solution selling• Actions dictated by vision(roadmapping)• Internal and externalcollaboration network
Changeleadership addresses people’s adoptionApproach goes above and beyond role/responsibility definition, communication and training.Coach Change Leaders — Teaching project managers and executivesponsors to proactively engage, inspire and lead employees to willinglyadopt and advocateResistance Management — Addressing resistance openly and early byengaging employees to embrace new perspectives and possibilities for howinnovation and PLM initiatives can multiply their contribution to successLeadership Alignment & Advocacy — Establishing active,skillful executive championing by recruiting advocates, planningtheir activities, preparing their messaging and guiding them to be effective
Innovation Process, Practices & MethodsCulture, People & OrganizationInnovation PortfolioProduct Lifecycle Data & TechnologyInnovation Metrics & IntelligenceTechnologyInsightsNew Product Development & IntroductionLaunchManagementBrandsResultsAnalysisExamplesof transformationinitiativesBuild-up a bettervisibility of the entireportfolio of projectsDefine lean and effective new product developmentprocess , with focus on timing and resourceControl data andworkflows throughintegrated PLMInitiate ideationcontests
Typicalnext step focus on engineeringthe change• Get stakeholders support• Maintain alignment between vision, goals and approach• Assess current innovation results, culture, approach andpractices• Set desired change focus• Communicate consistently throughout the organization• Start mobilization and on boarding• Respond to stakeholder fears regarding changes• Detail and evaluate the proposed initiatives• Get approval and resourcesAlignExecutiveSet ScopePlan InitiativesInitiateChange
Summary messagesSustained innovation requires an holistic view and acomprehensive set of business and technology capabilities.The change journey starts with alignment, assessment anddetailed definition of initiatives.A framework sets a reference that can support innovationstrategy-to-execution approach and capability.Build a vision for innovation but execute the changepragmatically, incrementally and rapidly