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A Programme by Ishmael Yamson & Associates

A Programme by Ishmael Yamson & Associates

Corporate Strategy Consultants & Brand and Channel Developers

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Innovating for Growth and Prosperity Innovating for Growth and Prosperity Presentation Transcript

  • Innovating for Growth and Prosperity A Programme by Ishmael Yamson & Associates Corporate Strategy Consultants, Advisors and Brand and Channel Developers
  • The Strategic Context of Innovation What is Innovation? The Role of Innovation Why Innovate? Where should Organisations Innovate? Getting The Most Out Of Innovation Seeing The Big Picture Risks and Challenges "You can only win the „war‟ with ideas, not with spending cuts." Klaus Kleinfeld, President and CEO, Siemens AG
  • Viewpoint Everyone knows that innovation is what drives (business) success in the 21st century, right? – Business Week, March 3, 2010
  • From Your Stand Point • How well do you know your organization? • Where will your organization be 5 years from now and what will take it there? • What do you think is being done right in your organization today? How is it impacting the organization? • What do you think is being done wrong in your organization today. How is it impacting the organization? • Is there a process for resolving what is not being done well? • What role do you have to play in resolving what is being done wrong? • What externalities are impacting on your organization and is there a clearly defined process? • How often do you spend time thinking about what you are doing? • Would you describe your organization as innovative
  • What Is Innovation? Some Perspectives Of Innovation •Survival and performance in an era of uncertainty & discontinuity •"Learning and innovation go hand in hand. The arrogance of success is to think that what you did yesterday will be sufficient for tomorrow." William Pollard •"The winner is the chef who takes the same ingredients as everyone else and produces the best results." Edward de Bono
  • What Is Innovation? The Changing Nature Of Innovation • Old View Innovation is a broad, pervasive – Individual originator/inventor phenomenon that goes on everywhere – Innovation was a specialized • Is primarily built on the infrastructure of the individual activity – Adoption of mass production – Business systems/models followed the innovation The critical constraining factor is not science – or R&D – but demand • 21st century: Today • Means to an end model- Democratizing demand – Partnerships for innovation – Shared responsibility for implementation – Stakeholders benefits Consequences for organisational • Tomorrow models? – Mass-customization, – Open -source communities
  • What Is Innovation? Strategy vs. Innovation • Strategy is about delivering the organization‟s • vision and goals, and • long term objectives • Innovation, is about how to maximise the • new opportunities, • new markets, • new products and services, • new operating models…. ……. defined in the strategy • There is really no such thing as innovation strategy, rather, innovation is a tool in the execution of strategy
  • What Is Innovation? Transformational Innovation: Examples 1. Green public transport - South Korea • Sensor-driven magnetic recharging strips embedded in roads 2.Charismatic churches in Ghana •Transformed the way church services are held
  • What Is Innovation? Radical Innovation: Business Examples 1. Google – an innovation engine • Mission: Organise all the world‟s information and make it universally accessible and useful by collaborating 2. Plastic Bottles for soft drinks • New business solution and a disruption in consumer accessibility
  • What Is Innovation? Incremental Innovation: Business Example 1. GINO range of products • Continuous introduction of new products in new categories
  • What Is Innovation? A Strategic Imperative for all Organisations • It is a key driver to Growth, Efficiency, Productivity and Prosperity “A package should save more than it costs.” Dr Ruben Rausing - Tetrapak
  • The Role Of Innovation Enabler • Innovation is an ENABLER to the delivery of corporate strategy and plans. • Innovation enhances • goal delivery, • achievement of differentiation, • discovery of new markets or needs and • Discovery of different ways of doing things
  • The Role Of Innovation Driver of Competitiveness & Prosperity Prosperity Competitiveness & Productivity Innovative Capacity Endowments Resources and Capabilities
  • The Role Of Innovation Redefines Competition • “Capability destroying “ – Disruptive innovation Build new capabilities – KAIST‟s car will change road-building Increase capabilities in pace, • “Capability enhancing“ and scale and – Collaborative Inter- impact of Organizational Networks innovations Make – Hydrogen cars require a competitors‟ capabilities new value chain irrelevant
  • Seeing The Big Picture Proactive vs. Reactive Stage 3 Denial of risks & Peril Stage 2 Constructive Destruction Undisciplined Stage 4 pursuit of Grasping for • Proactively reconstruct the more Salvation competitive context Stage 1 Strategic Inflection Hubris born Stage 5 out of Capitulation to • Failure to see the perils of a success Irrelevance or death dynamic Environment Barbarian Effects • Making the competition irrelevant Source: How the Mighty Fall – Jim Collins Different stages on the Growth Cycle can be triggered by these 3 effects
  • The Role Of Innovation An Instrument Of Good Corporate Citizenship Improve Expand Quality Prosperity of Life • Creates a ring of GOODWILL around Innovation the organisation Protect the Eliminate Environment poverty
  • Why Innovate? Organisational Benefits • Securing current & future growth and prosperity • Leading the cycle of competitive advantage • Driving productivity and efficiency • Remaining relevant • Ensuring long-term survival These benefits apply to Commercial, Non-profit and Public sector organisations in different ways
  • Why Innovate? Building to Last • Deliver Sustainable Growth, through • Policy • Processes • Products/Services
  • Where Should Organisations Innovate? Think „Value-Chain‟ Structure • Organisations must recognize the value- Value END-USER delivery chain Processes Chain VALUE requires innovation at every link to Systems succeed
  • Where Should Organisations Innovate? Focus on the Value-Chain • Managing the delivery of more value with decreased cost, while protecting competitive positioning • Applies to all strategy – Cost: Lowest costs – Service: Added-value – Niche: Proprietary solutions
  • Critical Success Factors In Getting The Most Out Of Innovation Managing the Associated Factors Impacting Success Internal Environment Organisational Culture Organisational Structure Enabling Technology People Management Implementation Strategic Innovation Competencies Focus Management of Leadership Innovation Market Interface Speed Strategy and Vision Commercialisation Process Quality Future Scenarios Innovation Management Commitment Competency Innovation Capability Management Technology Management Resource Management Idea and Creativity Management Alliances and Intellectual Property Networks
  • Critical Success Factors In Getting The Most Out Of Innovation Internal Environment • Collaborative • Strategy Assessment • Structure & Organization – Consumer Knowledge • Financial Resources – Market Knowledge • Human Resources Innovation Capability Improved • Managing Externalities • Innovation Culture – Open Innovation • Information & Technology Partners • Idea Generation/Creativity Process – Competitive Forces • Implementation of Innovation • Managing for Continuity • Market Orientation & Operation – Innovation Cycles • Exploitation of the Innovation – Innovation Portfolios
  • Seeing The Big Picture Proactive vs.. Reactive • Constructive Destruction Proactively reconstructing the competitive context • Strategic Inflection Failure to see the perils in a dynamic environment • Barbarian Effects The curse of lethargy
  • Seeing The Big Picture Scalability and Multiplier Effects • Ability to Exploit Benefits – Longer – Over more applications – Greater value creation • Expand Process efficiency – Agile structures – New opportunities from established lines of business • Improved Operations – Better – Coordination across firms – Diffusion of best practices – Performance benchmarking
  • Risks and Challenges The Wrong Culture  Excessive focus on the short-term  Lack of exposure to innovation  Discomfort with innovation, especially open innovation  Cocooning:  Not appreciating discontinuity as fundamental  Not seeing why a culture of networking is important for open innovation  Being too far away from the action  Rewarding people for getting stuff done  Risk-averse top executives  The threat of uncertainty to individuals
  • Risks and Challenges Innovator‟s Dilemma • Bunker mentality • Tunnel vision • „New toy‟ syndrome
  • The Concepts of Innovation Innovation – The Full Scope The Principles of Innovation The Elements of Innovation Drivers of Innovation Types of Innovation Managing the Innovation Process
  • The Full Definition The Concepts of Innovation CONCEIVING THE PROMISE •Ideas •Benefits BETTER & DELIVERING CORE ORGANISATIONAL PROCESSES/SYSTEMS THE DIFFERENT, PROMISE •Implementation CONTINUOUSLY •Delivery of Goals Incremental vs. Radical Evolutionary vs. Revolutionary Product & Service vs.. Process & Systems New ways of doing things vs. Better ways of doing old things
  • The Full Definition The Innovation Canvas: The Value Chain GOVERNMENT A TYPICAL COMPANY ORGANIZATION • Map out the full value chain that uniquely drives HUMAN RESOURCE PROCESSES MANAGEMENT growth and prosperity - it PROCESSES AND SYSTEMS is not a “one size fits all” TECHNOLOGY DEVELOPMENT • It defines the boundaries of the “how” of the innovation • It must “captivate” the whole organization and FUNCTIONS & CORE ACTIVITIES not just a team or department
  • The Principles of Innovation The Principles at Core of work Corporate Strategy Embedded in Goal • These principles of Organization's Culture Driven innovation are time tested and durable Consumer & • They should underpin Sustainable Customer Oriented PRINCIPLES Innovation in the OF INNOVATION organization • How the principles are Simplicity Measurable Impact applied is dependent on what the organization wishes to achieve Inward & Outward Balanced Innovation through innovation. Looking Portfolio
  • The Elements of Innovation The Interdependent Elements Leadership • The elements in Completion/ and Fruition Environment Innovation are interlinked • Leadership, People and Ideas are central to the Teamwork & Buy-in People success of innovation Structured Approach Ideas Creativity
  • The Drivers of Innovation Corporate Strategic Agenda - Defines the “why” of the innovation Leadership - Develops and owns the strategic context for innovation Desire to Excel - The ambitions of the organization - Out-performing competition - Cultures & Values Capabilities - People to mine for and implement ideas - Competences - Resources to fund Innovation Consumers & Customers - The “mining field” for ideas that work - The “demanders” of ideas that work
  • Types of Innovation Different Areas Marketing Structure •What is changed? •What is the scope of Change? •Incremental Product/ •Radical Business Strategy Service Process Technology
  • Types of Innovation The Conclusion Different Approaches Kweku needs a ladder Technological solution The Challenge Kweku has difficulty getting to the boxes on the high selves How can we make it easier for Kweku to get to the boxes? Organizational solution Another Conclusion Lower the selves & re- arrange the boxes
  • Types of Innovation Extending the horizon of the Problem Radical Standing in a different place How can I effectively and efficiently supply electricity to consumers? Incremental The Immediate Problem How can I make payment for electricity easier for consumers? Now Future
  • Types of Innovation Different Ways Organizational Capabilities Vs. Strategic Scope Improve the core activities - Develop New Capacities Create Revolutionary Change Take something that works and add a new wrinkle to it •New Capabilities •New Capabilities Organizational Capabilities Develop new capabilities - Find •Limited Strategic Scope •Unlimited Strategic Scope a new way to do something e.g. GPHA with inland ports within an existing marketplace or network in W Africa service area. Improve Core Activates Exploit Strategic Advantage Exploit strategic advantage - Extend a competitive advantage into a new market or service area •Existing Capabilities •Existing Capabilities •Limited Strategic Scope •Unlimited Strategic Scope Create revolutionary change – e.g. VAS to mobile phone users (data) Create new organizational capability and use to Strategic Scope fundamentally change how organization operates
  • Mining IDEAS SELECTING The Basic Ideas Innovation Process VALIDATIN G the Innovation CONSTRUCTI NG the Innovation IMPLEMENTIN G the Innovation Sharing the LEARNING’S Managing the Innovation Process ROLLING OUT the Innovation
  • Managing the Innovation Process • What will be the decision points (GATES) in the Innovation Process? • What PRINCIPLES will apply at each stage? ROLLING OUT the Innovation LEARNING’S Sharing the SELECTIN IMPLEM ENTING Innovati Innovati ATING VALID CONST Innova • HOW will decisions be made? Mining NG the IDEAS RUCTI Ideas tion the the on on G • WHO will be RESPONSIBLE for WHAT? (Gate Keepers) • What ROLES will the rest of the organization play at each stage?
  • Managing the Innovation Process MINING For Ideas Needs WHAT could be done? • Ideas can come from anywhere in the organization • Consumer/Customer needs Problems • Organizational Opportunities • Operational Excellence • What the tools should help do • Deep Consumer/Customer Understanding Opportunities • Review Organizational & Strategy • Review Process & Systems • Outcome • Lots of raw, unrefined ideas
  • Managing the Innovation Process SELECTING the Ideas What SHOULD be done? • Ideas must be sieved and the best ones selected • Relevance • Impact • Resources to explore • What the tools should help do • Logic Framework • Outcome • Nuggets of great Ideas that “fit” the organization
  • Managing the Innovation Process VALIDATING the Innovation CAN IT be done? • This is about • Impact • Viability, Scalability & Risks • Capability/Capacity • Resources to Implement • What the tools should help do • Value Creation Analyses • The level of interest (internal & external) • Outcome • Ideas/Innovation that the organization has capacity to develop and implement
  • Managing the Innovation Process CONSTRUCTING the Innovation HOW will it be done? • The Innovation refined and developed • Allocation of Resources • Action Standards • Organizational Readiness • Innovation ready for Implementation • What the tools should help do • Management of the project • Team Operating Framework • Outcome • An Innovation that is ready for implementation
  • Managing the Innovation Process IMPLEMENTING the Innovation DO it • The Innovation implemented and supported for success • Core to the Organization • Embedded in the organization • What the tools should help do • Monitoring & Evaluation • Measure against Scorecard • Rewards Systems • Outcome • A new addition to the organization's portfolio & activities
  • Managing the Innovation Process Sharing the LEARNING‟S Has it been SUCCESSFUL? • Post-implementation lessons • For both failures & successes • What the tools should help do • Evaluate Performance • Evaluate Project • Monitoring & Evaluation • Measure against Scorecard • Outcomes • A set of lessons that will inform future Innovations
  • Managing the Innovation Process ROLLING OUT the Innovation Can we apply it elsewhere? • Demand • “Willing” takers • “Ready” takers • What the tools should help do • Rollout a toolkit
  • Managing the Innovation Process MIX of Balanced Innovations Hi Impact A Balanced Portfolio of Innovations is an important outcome of a good management of the innovation process • Allocation of Resources • Cross-functional cohesion • Delivery of Strategic Goals • Continuous feed-stock of Lo Impact ideas Low Resource Hi Resource
  • Managing the Innovation Process Remember ... • The Innovation Process is not a “one size fits all” • It begins with Creative Ideas • Creative Ideas are just a starting point for innovation • Ideas must be transformed into something useful • There must be an Organizational Alignment to Innovation • There must be a Management balance • Managing the Innovation Process vs. Being managed by it • Too much creativity vs. too much structure
  • Using the Tools Generating & Prioritizing Ideas Process Toolkit Innovation Management Tools Designing and Using Innovation Management Process Putting Innovation Management Processes Into Action Into Action
  • Generating & Prioritising Ideas Idea Generation and Validation Simple Questions Answered Product or Who Service Innovation What When WHAT IS THE RIGHT TOOL? Process Supply Where How Innovation Chain Innovation Why Why Fit with Will Should Strategy Anyone We Do & Want This Principles This
  • Generating & Prioritising Ideas The Listening and Exploration Tool Adds to what I know Observations and Ideas Search Personal experience Personal experience Direct Consumer/Customer Contact Direct Consumer/Customer Contact In-situation observations In-situation observations External expert collaboration External expert collaboration Evidence hunting Evidence hunting Reviewing commissioned market research Reviewing commissioned market research Confirms what I know In-situation External expert Personal experience observations collaboration Direct Consumer/Customer Contact Direct In-situation observations Consumer - Evidence External expert collaboration Customer hunting Contact Evidence hunting Reviewing commissioned market research Personal Surprising Commissioned experience or weird market research
  • Generating & Prioritising Ideas Turning Ideas Into Write down the Innovation Challenges problem, need • Why is this real? issue or 1. Avoid opportunity ambiguity What is causing • Why has this occurred? • Ask "why?“ this? • What is behind this? until you can no longer • Burning platforms: answer yourself What other • how urgent is the solution issues are at needed? stake? • what are „others‟ doing 2. Turn ideas about this need? into short, What solutions • Brainstorm ideas to simple can be created to respond to pursue • Generate lots of ideas challenges the need? first – no criticism
  • Generating & Prioritising Ideas CLARIFYING THE CHALLENGE AND THE POSSIBLE SOLUTIONS
  • Process Toolkit Desired Outcomes • Successful Innovation: – Responsive to consumer/user needs, within a clear strategic context – Scalable, Replicable and Effective • Effective Organization – Climate and culture that embraces innovation – Commitment to implementation
  • Process Toolkit The Idea Brief Use the BOSCARD Project Name Constraints Clear expectations of end-users Clear expectations of the business Internal and external limiting factors Background Assumptions What is the end-user need? Of end-users to satisfy or over-deliver on Of the organization to manage Of partners to manage Opportunity: Resources Why innovate to address this need? Core Project Team Sponsor - Stakeholders - Gatekeeper Other resources Within Scope Deliverables Different products, services, processes and other Analysis of Ideas; Qualitative research; Simulated-Test- innovations required to fully address the end-users‟ Market needs? Outside Scope What will you not do or address by implementing the idea?
  • Process Toolkit Stakeholder Management • Dynamic Procedure – This is a dynamic process from project definition through planning and execution of the project. – Identify and analyze stakeholders (customers, consumers, suppliers, investors, community & society and our people) Application • Define stakeholder questions •To identify the • Prepare interview checklists stakeholders and their needs and expectations • Interview stakeholders • Most useful to • Prepare reports and get feedback build relationships with key stakeholders and to • Resolve potential conflicts identify scope, • Keep stakeholder analysis confidential to the team priorities and key risks for the project. • Finalize the innovation brief with stakeholders • Ensure consistency with organizational strategy
  • Process Toolkit Stakeholder Interviews Power Influence • Objectives What are stakeholders‟ goals? Referees Players What do they want to achieve in relation to this particular project Keep Satisfied Manage expectations • Past reactions Reports Actively involve How have they reacted to this Visits Invest time project (or similar projects) in the past? Stake • Impact Benefits Do the changes generated by this Victims & project impact the stakeholder Bystanders Beneficiaries positively or negatively? Keep Informed • Future Minimal effort How are they likely to react in the Reports and Reports only future? Guest member follow up Contact
  • Process Toolkit Feedback and Conflict Resolution • Request feedback • Provide progress Summaries to Stakeholders • Address apparently differing views & clarify misunderstandings • Manage conflicting expectations • Provide appropriate data • Develop options for resolution • Take responsibility for resolving issues with stakeholders
  • Process Toolkit The Innovation Brief Project Name Constraints Clear expectations of end-users and the business Internal and external limiting factors Outside the team‟s direct influence. Background Assumptions A few lines describing the context of the project .e.g. Of end-users to satisfy or over-deliver on strategic fit, starting point, opportunities Of the organization and partners to manage To help maintain focus when facing (a lot of) uncertainty Objective: Risks A statement of business goals to be achieved AND a Brainstorm the uncertainties that may make the project statement of the result for the project team fail to proactively create solutions to deliver the objective Within Scope Deliverables The team‟s own choice of different products, services, Concrete outputs, tangible and measurable that will lead processes and other innovations required to fully address to the desired objective the end-users‟ needs (empowered by the gate keepers) Outside Scope Analysis of Ideas; Qualitative research; Simulated-Test- What externalities must be managed?. Market
  • Sample Innovation Brief Project Name: Best-Veg Background Constraints • Opportunity to make claims on •Launch timings must align with the lean season for “the Goodness of Vegetables” vegetables • Claims must comply with local regulations for food Objective safety and claims. •Establish the ultimate “Goodness Assumptions of Vegetables” platform by We can find compelling & internally/externally launching a premium range of approved claims for at least three vegetables in order packed vegetable with specific to justify the platform health claims in Q2 2011 SMART Risk Within Scope Inability to source/secure commercial quantities of organic vegetables • We will start by developing five standard packs. Deliverables • We will test packs and claims for • Develop five recipes on pilot scale, ready for five single and mixed veg packs. consumer testing by Q2 2010 • We will conduct a critical path test • Conduct claims workshop Q3 2010 and achieve with one variant only. claims approval by Q3 2010 • We will source organic vegetables • Conduct consumer testing of recipes & claims, and Outside Scope select winning variants by Q1 2011 • We will not conduct clinical trials – • Confirm commercial feasibility of organic vegetable claims will be based on existing sourcing by Q1 2011 evidence. •Develop communication & prepare hand-over to launch countries by Q2 2011. • On shelf Q2 2011. SMART
  • Innovation Management Tools ABC Innovation Implementation Plans List your ideas Evidence of Consumer Risks & Obstructions The Idea - Trade - All ideas are equal before you start rating Organisational Need To Manage WHY DON‟T WE … / WHAT IF WE … Select key criteria for evaluating Authorisations the ideas Team Resources Resources Creative (People, Time) Implementation Plan Exit Plan Money Weight the criteria – to reflect importance Milestones Communication Plan Action Plan Agree on what is the outcome after rating
  • Innovation Management Tools EZI Stage-Gate Decisions Gate 1 – Initial trigger: A typical stage gate model An idea for an innovation crystallizes. This is the „gleam in the eye‟ which starts the process off. Gate 5 - Launch ready: Go-to-Market Plans Finalized Decision: whether or not to explore this a bit If the go-ahead is given then the innovation further. moves into implementation across the organization. Gate 2 – Charter Decision: Go – No go Early information on assumptions and capacity to implement is confirmed. Gate 4 – Capability: Decision: whether there is a business case for Detailed design and market taking this idea further – or not. development The innovation is definitely in the Gate 3 – Feasibility Studies development programme and consuming Before committed resources the technology and resources as it is progressed through a innovation idea needs testing. project management system. Conduct surveys to confirm insights and Information about technical and market assumptions. feasibility is now analyzed. Decision: commit resources to full scale Decision: whether or not to proceed with full development – or not. scale production.
  • Designing and Using Innovation Management Process The Key Objectives • Identify ideas with potential • Align value creation to strategy • Ensure design expectations are met • Optimize routes to idea implementation • Assure profitable and sustainable implementation • Accurately identify replicable innovations with multiplier effects
  • Designing and Using Innovation Management Process Guidelines For the Design of Stages And Gates I. Process Credibility – Objective cross-functional project team develops the process – Clear mandate to develop a process capable of driving better performance. – Set benchmarks and KPIs for the innovation – Critically assess the process strengths and weakness – Avoid making internal compromises or succumbing to internal politics II. Visible and Meaningful Leadership Support – Explain why it is critical to the future of the company – Senior executive sponsor to publicly support the initiative and project leaders – Regular executive team updates to match present to organisational memory – Senior execs to champion the impact of change throughout the organization
  • Designing and Using Innovation Management Process Guidelines For the Design of Stages And Gates III. Sufficient and Appropriate Resources – Executives and team agree on and commit necessary resources in people, skills, funds and time, Passionate people IV.Defined Roles and Responsibilities – Implementation Champions - Executive Sponsor and Process Manager – Innovators - Project Leaders and Team Members – Gatekeepers - The decision makers V. Strategic Implementation Approach – Chose an approach that fits the organisational strategy – The greater the change, the higher the risk of failure
  • Designing and Using Innovation Management Process Guidelines For the Design of Stages And Gates VI. Effective Communication for Buy-In – Progress meetings with senior executives – Answer the “so what?” and “why?” questions clearly and concisely – Available and easily accessible documentation – Listen to the feedback you receive VII.Performance Tracking of specific innovations – Concise, SMART metrics aligned with mandate – Measure process effectiveness: projects enrolled in the Stage-Gate process; adoption rates; gate meeting frequency and quality – Measure innovation performance: time-to-profit; new product success rates VIII.Sharing the effectiveness of the framework – Avoid too many metrics and – Avoid teams that are not aligned on key outcomes
  • Designing and Using Innovation Management Process Guidelines For the Design of Stages And Gates IX. Managing potential conflicts between the framework and Organizational Culture – Conduct risk and barrier analysis of key stakeholders – Assess impact on processes that will be affected – Assess how new process will work with old processes – Enablers for the types of behavioural change required – Who will be responsible for managing the change – Know the differing views at all levels and functional areas X. Effective Change Management – Innovation involves change management – Communicate widely the importance to continually aspire – Reward people and behaviours that support the change – Manage tradeoffs – Don‟t underestimate the scale of the change; adjust plans as needed
  • Designing and Using Innovation Management Process Mandatory Elements • Cross-functional management (2X) • Manage all procedures, from I2I, via the agreed process • Ensure every innovation justification is aligned with strategy • Agree a single point of responsibility for all innovation decisions • Mandate a cross-functional oversight team for Risk Management
  • Putting Innovation Management Processes Into Action Project Planning Qu(s) • What do we want to accomplish? • What specifically are we delivering at the end of this effort? • Who takes responsibility for what we are delivering once this effort is over? • What key deliverables must we accomplish to reach our end goal? • Who do we need to define, sequence and complete the tasks needed to meet those key deliverables? • How much time do we need to meet those key deliverables? • How much money do we need to meet those key deliverables? • What are the risks we can anticipate that might keep us from meeting those key deliverables? • How will we react to any risks if they occur?
  • Putting Innovation Management Processes Into Action Approval Meeting Preparation Qu(s) • What are we tracking to know we are ; • on schedule? • on budget? • making progress on completing our key deliverables? • How will we identify risks and/or issues? • What will be our responses to the previously identified risks and/or issues? • Who else needs to know the answers to these questions and what is their preferred communication channel? • Do we have the appropriate amount of • resources (human, budget, etc) necessary to execute the estimated work effort? • leadership commitment and oversight to ensure a quality project delivery? • Does our effort have any dependencies or conflicts with any other efforts currently being conducted within the organization? • Have we identified any other “part-time” or transient resources required for project delivery?
  • Putting Innovation Management Processes Into Action Gatekeepers Project Status Qu(s) • Are we • on schedule? • on budget? • making progress on completing our key deliverables? • confident the key deliverables meet our strategic requirements? • Are there any risks and/or issues that have come up since the last time we met? • What is our response to the risks and/or issues? • Do we still have enough time, money and resources to complete our key deliverables? • Are there any changes required to ensure we have enough time, money and resources to complete our key deliverables? • Is there any opportunity to speed up the schedule, reduce cost, free-up resources or deliver additional tasks without negative impact? • Are the right people being informed of our progress and status?
  • Putting Innovation Management Processes Into Action Project Closure Qu(s) • Did we achieve … • what we promised at the beginning of the project? • successfully the key deliverables promised at the beginning of the project? • Did we deliver our effort • on time (within acceptable variance)? • on budget (within acceptable variance)? • Were the deliverables of acceptable quality? • Were there any significant risks and/or issues that caused us to stray outside the acceptable boundaries set for the effort? • Were the right people communicated with regarding the completion of the effort and the results? • Have the resources (human, remaining budget, space, etc.) been released for other use? • What are the lessons learned from this effort that may benefit future innovation efforts?
  • Embedding Innovation Culture In The Organisation Developing and Living the Right Culture and Behaviours Measuring Success Managing Failure
  • Developing and Living the Right Culture and Behaviours Living The Innovation Culture: • Every voice heard must be heard “The • Senior management sponsorship system” • Inspire/promote idea champions must be • Freedom to experiment - with balanced responsibility by • Make room for failure “the • Reward sensible risk-taking person”
  • Measuring Success Leadership Metrics • stimulate the innovation dynamics • motivate risks-taking to receive rewards • develop a culture of entrepreneurial leadership • balance incremental vs. discontinuous innovation • align organizational processes, metrics to growth • create an environment conducive to new business creation
  • Measuring Success Organizational Metrics • Objectively identify and define Optimization Focused opportunities (Stable Environment) • Meet current customer • Rapid development and/or commercialization of innovation needs • Exploit what you know • Maximization of profit/targets from “mature” market/objectives Innovation Focused • Revamp internal processes to drive (Dynamic Environment) innovation (Structure/Systems) • Anticipate future needs • Increase revenues, profits and growth • Explore what you don‟t rates from specific innovations know • Create and own the “highest standard”
  • Measuring Success Innovation Metrics • Acceptance of and Demand for the innovation • Segment, Market & Revenue Based on Shares the goals • Incremental innovation opportunities set for the • Ability to support growth of new innovation opportunities • etc, etc
  • Managing Failure Unacceptable Failures • Lack of Foresight, end-user insight, or the organizational support and processes • Not effectively understanding the existing context • Not aligning innovation to strategy • Cultural inertia that hinders the ability to play two games at once • managing the existing business while investing in and driving the new • Not focusing on or investing in the right resources or infrastructure • Not effectively creating the right environment • Lack of commitment to implementation • Loosing sight of the original values, principles and objectives: the WHY of INNOVATION
  • Managing Failure Positive Examples: Drug Failed … Successfully The Stories of Eli Lily Marketed for Strattera in Attention • “People learn by failing.” depression deficit • even if the risks are well studies calculated Evista as birth Osteoporosis • Encourages scientists to look for control new uses for drugs that don‟t work Alimta in trials Mesothelioma out • Lesson learnt at „failure parties‟ Cymbalta at lower Depression to understand good work that dose results in failure MEPM for prosaris Cancer • The Results … Gemzar as antiviral Cancer agent • In 2003, Eli Lily had 6 patents with 2 more expected before end 2004 PPAR in asthma Cardiovascula trials r disease • Average is 2/year for the big Gherlin in frailty Obesity players blocker study