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“Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua
Some Hints for Buildi...
“Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua
On August 6, 1991, Ti...
“Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua
When Speaking about B...
“Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua 3/30
“I define creati...
“Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua
Strategy Innovation i...
“Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua
• All countries and i...
“Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua
Arnoldo C. Hax Dean L...
“Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua 7/30
First Hint:First...
“Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua 8/30
SystemSystem
Loc...
“Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua
Not Every organizatio...
“Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua 10/30
First Hint:Firs...
“Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua 11/30
First Hint:Firs...
“Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua
The competencies requ...
“Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua 13/30
Implement an Ef...
“Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua
If no one believes
th...
“Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua
Second Hint:Second Hi...
“Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua
The Most Innovative C...
“Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua
The sustainability of...
“Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua
Management of the Dev...
“Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua
In the Model of “Winn...
“Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua
The application of IT...
“Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua
Second Hint:Second Hi...
“Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua
Third Hint:Third Hint...
“Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua
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Intensity of Info...
“Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua
Innovation
Proposals
...
“Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua
Fourth Hint:Fourth Hi...
“Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua 26/30
Two key questio...
“Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua1/30
Fifth Hint: "Appl...
“Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua1/30
“The Innovation S...
“Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua 29/30
Sixth Hint:Sixt...
“Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua 30/30
Successfully Ma...
“Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua
“Some Hints for Build...
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Some Hints for Building an Effective Business Innovation System

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Six Key Hints to Transform a Company into an Innovating Organization

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  1. 1. “Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua Some Hints for Building an Effective Business Innovation System Miguel Sáenz de Viguera Aizpurua 2007 PMI Distinguished Contribution Award msaenzdeviguera@hotmail.com November 2010
  2. 2. “Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua On August 6, 1991, Tim Berners-Lee (CERN) posted a summary of the World Wide Web project on the alt.hypertext newsgroup. This date marked the debut of the Web as a publicly available service on the Internet. He wrote: “The WorldWideWeb (WWW) project aims to allow all links to be made to any information anywhere. [...] The WWW project was started to allow high energy physicists to share data, news, and documentation. We are very interested in spreading the web to other areas, and having gateway servers for other data. Collaborators welcome!" On August 6, 1991, TimOn August 6, 1991, Tim BernersBerners--Lee (CERN) postedLee (CERN) posted a summary of the Worlda summary of the World Wide Web project on theWide Web project on the alt.hypertext newsgroup.alt.hypertext newsgroup. This date marked the debutThis date marked the debut of the Web as a publiclyof the Web as a publicly available service on theavailable service on the Internet.Internet. He wrote:He wrote: ““The WorldWideWebThe WorldWideWeb (WWW) project aims to(WWW) project aims to allow all links to be made toallow all links to be made to any information anywhere.any information anywhere. [...] The WWW project was[...] The WWW project was started to allow high energystarted to allow high energy physicists to share data,physicists to share data, news, and documentation.news, and documentation. We are very interested inWe are very interested in spreading the web to otherspreading the web to other areas, and having gatewayareas, and having gateway servers for other data.servers for other data. Collaborators welcome!"Collaborators welcome!" The “New Economy” • On 1991 the humanity entered in a new era of instantaneous, global diffusion of information and knowledge at practically no cost, the era of Internet • The “WWW” is the main responsible of the dramatically fast globalization of the economy and of the appearance of an increasingly wild competition at any industry during the last years. The main responsible too of the economical growth of the emergent countries that ten years ago, practically, didn’t count in the economic arena and now are in the way of becoming the winners • In the New Economy, for the Companies of the EU and USA, from now and for the future, it is not possible competing by cost. Competing by quality becomes more and more difficult each day for them. Business Innovation is, the only way that they have to get a sustainable competitiveness 1/30 Introduction: The Shift of the Economic ParadigmIntroduction: The Shift of the Economic Paradigm
  3. 3. “Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua When Speaking about Business Innovation, we refer ourselves to Product Innovation, Innovation of Processes and Innovation of the Business Model, all together The Innovation of the Business Model, many times the most critical Innovation, also called Business Transformation, demands transforming the Key Processes of the Organization and/or its Primary Infrastructure Most of these Transformations are Enabled by the Efficient Use of the New Technologies When Speaking about Business Innovation, weWhen Speaking about Business Innovation, we refer ourselves to Product Innovation, Innovationrefer ourselves to Product Innovation, Innovation of Processes and Innovation of the Businessof Processes and Innovation of the Business Model, all togetherModel, all together The Innovation of the Business Model, manyThe Innovation of the Business Model, many times the most critical Innovation, also calledtimes the most critical Innovation, also called Business Transformation, demands transformingBusiness Transformation, demands transforming the Key Processes of the Organization and/or itsthe Key Processes of the Organization and/or its Primary InfrastructurePrimary Infrastructure Most of these Transformations are Enabled byMost of these Transformations are Enabled by the Efficient Use of the New Technologiesthe Efficient Use of the New Technologies 2/30 What are we speaking about when we mention Business Innovation?What are we speaking about when we mention Business Innovation?
  4. 4. “Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua 3/30 “I define creativity as the entire process by which ideas are generated, developed, and transformed into value. Since it is a process, it can be planned and managed” “Moreover, when we add information technology to the mix of creativity and knowledge, we get a particularly potent combination: capabilities to represent, deploy and track knowledge coupled with technologies to promote collaboration across divergent disciplines and perspectives. When properly managed, the combination results in creative combustion” “Innovation is about implementation. Being creative and maybe even radical does not necessarily mean success” “The ambiguity, complexity and improvisation of creative organizations require specially tailored managerial systems and processes, to transform creative ideas into value and discipline for its implementation” Professor John Kao ““I define creativity as the entire process by which ideasI define creativity as the entire process by which ideas are generated, developed, and transformed into value.are generated, developed, and transformed into value. Since it is a process, it can be planned and managedSince it is a process, it can be planned and managed”” ““Moreover, when we add information technology to theMoreover, when we add information technology to the mix of creativity and knowledge, we get a particularlymix of creativity and knowledge, we get a particularly potent combination: capabilities to represent, deploy andpotent combination: capabilities to represent, deploy and track knowledge coupled with technologies to promotetrack knowledge coupled with technologies to promote collaboration across divergent disciplines andcollaboration across divergent disciplines and perspectives. When properly managed, the combinationperspectives. When properly managed, the combination results in creative combustionresults in creative combustion”” ““Innovation is about implementationInnovation is about implementation.. Being creative andBeing creative and maybe even radical does not necessarily mean successmaybe even radical does not necessarily mean success”” ““The ambiguity, complexity and improvisation of creativeThe ambiguity, complexity and improvisation of creative organizations require specially tailored managerialorganizations require specially tailored managerial systems and processes, to transform creative ideas intosystems and processes, to transform creative ideas into value and discipline for its implementationvalue and discipline for its implementation”” Professor John KaoProfessor John Kao Professor John KaoProfessor John Kao Harvard Business SchoolHarvard Business School MIT Media Lab.MIT Media Lab. Professor John KaoProfessor John Kao Harvard Business SchoolHarvard Business School MIT Media Lab.MIT Media Lab. Why Companies Need Innovation Management Systems?Why Companies Need Innovation Management Systems? Managing the Paradox between Creative Improvisation and DiscipliManaging the Paradox between Creative Improvisation and Disciplinene
  5. 5. “Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua Strategy Innovation is about challenging existing industry methods of creating customer value, in order to meet newly emerging customer needs, add additional value, and create new markets and new customer groups for the organization Strategy Innovation is aboutStrategy Innovation is about challenging existing industry methodschallenging existing industry methods of creating customer value, in order toof creating customer value, in order to meet newly emerging customer needs,meet newly emerging customer needs, add additional value, and create newadd additional value, and create new markets and new customer groups formarkets and new customer groups for the organizationthe organization 4/30 First Hint:First Hint: ““Innovate your Business StrategyInnovate your Business Strategy””
  6. 6. “Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua • All countries and industries are now suffering the “New Economy” of wild, global competition • Changes of the business environment and the competition are dramatically deeper and faster each day • In the New Economy, the new paradigm, the old models for business strategic analysis and planning are not more valid • But… Business Strategy should drive the Business Innovation Effort 5/30 First Hint:First Hint: ““Innovate your Business StrategyInnovate your Business Strategy”” Why Innovating the Business Strategy?Why Innovating the Business Strategy? In the new economy, business strategy should be defined, evaluated and refined frequently, through the application of the last best proven models, tools and techniques for business strategic analysis and planning In the new economy, business strategy should be defined,In the new economy, business strategy should be defined, evaluated and refined frequently, through the application of theevaluated and refined frequently, through the application of the last best proven models, tools and techniques for businesslast best proven models, tools and techniques for business strategic analysis and planningstrategic analysis and planning
  7. 7. “Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua Arnoldo C. Hax Dean L. Wilde II MIT Sloan School of Management “The Delta Project” The “New Economy” Three Distinct Strategic Options Best Product Total Customer Solutions System Lock-in TheThe ““New EconomyNew Economy”” Three Distinct Strategic OptionsThree Distinct Strategic Options Best ProductBest Product Total Customer SolutionsTotal Customer Solutions System LockSystem Lock--inin Michael Porter Harvard Business School “Competitive Strategy” Traditional Economy Two Generic Competitive Strategies Cost Leadership Product Differentiation Traditional EconomyTraditional Economy Two Generic Competitive StrategiesTwo Generic Competitive Strategies Cost LeadershipCost Leadership Product DifferentiationProduct Differentiation Generic Strategies The NewThe New StrategicStrategic OptionsOptions The “Delta Model” System Lock-In Best Product Total Customer Solutions DistinctDistinct StrategicStrategic PositionsPositions System Lock-In Best Product Total Customer Solutions DistinctDistinct StrategicStrategic PositionsPositions 1980 2001 6/30 First Hint:First Hint: ““Innovate your Business StrategyInnovate your Business Strategy”” Focus your innovation strategy on the new strategic options forFocus your innovation strategy on the new strategic options for your businessyour business
  8. 8. “Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua 7/30 First Hint:First Hint: ““Innovate your Business StrategyInnovate your Business Strategy”” The Delta Model: The Three New Distinct Strategic PositionsThe Delta Model: The Three New Distinct Strategic Positions (Arnoldo C. Hax & Dean L. Wilde II, MIT Sloan School of Manageme(Arnoldo C. Hax & Dean L. Wilde II, MIT Sloan School of Management)nt) System Lock-In Based on: System Economics Strategy: Market Dominance Objective: Achieving Complementors Share Best Product Based on: Product Economics Strategy: Best than Competitors Objective: Achieving Product Share Total Customer Solutions Based on: Customer Economics Strategy: Cooperation Objective: Achieving Customer Share Mostly EnabledMostly Enabled through Effectivethrough Effective Use of TechnologyUse of Technology
  9. 9. “Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua 8/30 SystemSystem LockLock--InIn BestBest ProductProduct TotalTotal CustomerCustomer SolutionsSolutions Emphasize Product Orientation Key Driving Forces • Supply Chain Efficiency (Cost & Quality) • New Product Development Capability • Securing of Distribution Channels Threat Commodization Its Aim is a Unique Value Proposition to Individualized Customers by means of a Customized Portfolio of Products and Services Key Driving Forces • Careful Segmentation of the Customers’ Base • Joint Development Efforts with Customers and Key Suppliers guided by the Individual Customer Expectations Focus on the “Full System” as the Relevant Scope to get Power (The Business, Customers, Suppliers and Complementors) Key Strategic Driving Force Gaining Complementors Shared as the main objective because they are the Basis for the Consolidation of the PowerIncreased Sustainability First Hint:First Hint: ““Innovate your Business StrategyInnovate your Business Strategy”” The Three New Distinct Strategic Positions,The Three New Distinct Strategic Positions, Main Features and Compared SustainabilityMain Features and Compared Sustainability
  10. 10. “Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua Not Every organization has the possibility to reach the strategic position of “System Lock-In” Not Every organization has the possibility to reach theNot Every organization has the possibility to reach the strategic positionstrategic position of “System LockSystem Lock--InIn”” Proprietary Standard Microsoft Intel SystemSystem LockLock--InIn BestBest ProductProduct TotalTotal CustomerCustomer SolutionsSolutions Low Cost Easy Jet, Clickiair Air Berlin Differentiation Bang & Olufsen Sony Wega Customer Integration Indra, EDS Accenture Redefining the Customer Relationship MCI Dominant Exchange Yellow Pages eBay Exclusive Channel Telefónica Nespresso Horizontal Breadth Fidelity IncreasedIncreased StrategyStrategy SustainabilitySustainability Proprietary Standard Microsoft Intel SystemSystem LockLock--InIn BestBest ProductProduct TotalTotal CustomerCustomer SolutionsSolutions Low Cost Easy Jet, Clickiair Air Berlin Differentiation Bang & Olufsen Sony Wega Customer Integration Indra, EDS Accenture Redefining the Customer Relationship MCI Dominant Exchange Yellow Pages eBay Exclusive Channel Telefónica Nespresso Horizontal Breadth Fidelity IncreasedIncreased StrategyStrategy SustainabilitySustainability Most of the organizations have not a dominant exchange position, cannot get the exclusivity of the channels of distribution that customers use to avail themselves of their products and either, not have the possibility to develop and get the ownership of the standards of the industry Most of theMost of the organizations haveorganizations have not a dominantnot a dominant exchange position,exchange position, cannot get thecannot get the exclusivity of theexclusivity of the channels ofchannels of distribution thatdistribution that customers use tocustomers use to avail themselves ofavail themselves of their products andtheir products and either, not haveeither, not have the possibility tothe possibility to develop and getdevelop and get the ownership ofthe ownership of the standards ofthe standards of the industrythe industry 9/30 First Hint:First Hint: ““Innovate your Business StrategyInnovate your Business Strategy”” Some Strategies towards the New Strategic PositionsSome Strategies towards the New Strategic Positions
  11. 11. “Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua 10/30 First Hint:First Hint: ““Innovate your Business StrategyInnovate your Business Strategy”” ““MCIMCI””, an Example of Strategy for Redefining the Customer Relationshi, an Example of Strategy for Redefining the Customer Relationshipp
  12. 12. “Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua 11/30 First Hint:First Hint: ““Innovate your Business StrategyInnovate your Business Strategy”” ““FidelityFidelity””, an Example of Strategy for Expanding the, an Example of Strategy for Expanding the Breadth of Products and Services provided to the CustomerBreadth of Products and Services provided to the Customer
  13. 13. “Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua The competencies required to successfully perform in the Best Product Strategy… • A Strong Product Base • A Solid Supply Chain Infrastructure • Strong Internal Innovation Capabilities… very often are not enough to create or defend sustainable competitive advantages in the new economy “The transformation that any company should undertake to move away from a Product-Centered Mentality towards a Total Customer Solutions Position, and towards a System Lock-In Position, if it has possibilities, is a mandatory challenge for all executives” Professor Arnold C. Hax (MIT) ““The transformation that any company should undertake toThe transformation that any company should undertake to move away from a Productmove away from a Product--Centered Mentality towards a TotalCentered Mentality towards a Total Customer Solutions Position, and towards a System LockCustomer Solutions Position, and towards a System Lock--InIn Position, if it has possibilities, is a mandatory challenge forPosition, if it has possibilities, is a mandatory challenge for allall executivesexecutives”” Professor Arnold C. Hax (MIT)Professor Arnold C. Hax (MIT) CAF, DANOBAT RAILWAY SYSTEMS and the recent announcement of the strategic alliance between IKUSI and ORMAZABAL are examples of Basque Companies, strategically trying to move from a position of "Best Product" towards another one of "Total Customer Solutions", an intelligent strategic movement CAF, DANOBAT RAILWAY SYSTEMS and the recent announcement of theCAF, DANOBAT RAILWAY SYSTEMS and the recent announcement of the strategic alliance between IKUSI and ORMAZABAL are examples of Bstrategic alliance between IKUSI and ORMAZABAL are examples of Basqueasque Companies, strategically trying to move from a position of "BestCompanies, strategically trying to move from a position of "Best Product" towardsProduct" towards another one of "Total Customer Solutions", an intelligent stranother one of "Total Customer Solutions", an intelligent strategic movementategic movement 12/30 First Hint:First Hint: ““Innovate your Business StrategyInnovate your Business Strategy”” Business Strategy for the New Economy, ConclusionsBusiness Strategy for the New Economy, Conclusions
  14. 14. “Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua 13/30 Implement an Efficient, Structured Process for:Implement an Efficient, Structured Process forImplement an Efficient, Structured Process for:: I Encouraging the Generation, Capture and Refinement of Ideas for Innovation from Customers, Employees and other Stakeholders of your Organization II Encouraging theEncouraging the Generation, Capture andGeneration, Capture and Refinement of Ideas forRefinement of Ideas for Innovation fromInnovation from Customers, EmployeesCustomers, Employees and other Stakeholders ofand other Stakeholders of your Organizationyour Organization III Building an Efficient Development Process that Provides Excellence in the Development and Implementation of the Selected Innovations Proposals IIIIII Building an EfficientBuilding an Efficient Development Process thatDevelopment Process that Provides Excellence in theProvides Excellence in the Development andDevelopment and Implementation of theImplementation of the Selected InnovationsSelected Innovations ProposalsProposals II Evaluating, Prioritizing and Selecting the ideas that have the greatest potential to add value to the Business IIII Evaluating, PrioritizingEvaluating, Prioritizing and Selecting the ideasand Selecting the ideas that have the greatestthat have the greatest potential to add value topotential to add value to the Businessthe Business Second Hint:Second Hint: ““Implement an Efficient, Idea Management ProcessImplement an Efficient, Idea Management Process””
  15. 15. “Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua If no one believes that your firm is serious about innovation, few people will take it seriously If no one knows about your ideas campaign, no one will participate Small rewards for ideas can be a remarkably powerful means of promoting participation • Communicate that creativity and innovation have high priority in the organization. The High Management demonstrably should boost innovation • Provide free education and training on creativity and creative problem solving • Give to the people free time and other resources (mentoring, space, tools,...) to refine, test, developing the concept and presentation for creative ideas • Reward rather than discourage creative thinking. Show that failures are tolerated, indeed they are seen as valuable learning opportunities. • Set aside some additional budget for refining and testing the more radical ideas • Implement and communicate a system to gather and process the innovation ideas. The goal: not one idea without answer from management • Communicate your process, for assessing, filtering ideas and deciding which ones to invest in 14/30 Second Hint:Second Hint: ““Implement an Efficient Idea Management ProcessImplement an Efficient Idea Management Process”” Keys for Boosting the Generation of Innovation IdeasKeys for Boosting the Generation of Innovation Ideas
  16. 16. “Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua Second Hint:Second Hint: ““Implement an Efficient Idea Management ProcessImplement an Efficient Idea Management Process”” Example of Practices for Boosting the Generation of Innovation IExample of Practices for Boosting the Generation of Innovation Ideasdeas IN-HOUSE ENTREPRENEURSHIP PROGRAMMMESIN-HOUSE ENTREPRENEURSHIP PROGRAMMMES 15/30
  17. 17. “Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua The Most Innovative Companies, have a multifunctional, Innovation Steering Committee (“ISC”) composed by members of the top management with the mission of assessing, prioritizing and selecting the innovation ideas The ISC meets periodically (monthly in most of the cases) to select the innovation proposals The ISC establishes and publishes, within the organization, the scoring system applied, that takes into account, at least the following criteria to evaluate the innovation proposals • Their Strategic Fit • The Estimation and Availability of Investment Funds, Human and other Resources required for their development and implementation • A Qualitative and Quantitative (IRR, NPV, Pay Back,...) Estimation of their Adding Value to the Business • Their Risks Evaluation • The Sustainability Analysis of the Advantage Acquired by the implementation of the idea Selected Initiatives Rejected Initiatives Initiatives Portfolio All Initiative Ideas Selected Initiatives Rejected Initiatives Initiatives Portfolio All Initiative Ideas Selected Initiatives Rejected Initiatives Initiatives Portfolio All Initiative Ideas Once one innovation initiative has been approved by the Innovation Steering Committee, an initial budget for its development is assigned The rejected ideas are recorded in an innovation ideas repository where they can be revisited to be combined with other ideas or being applied for different purposes than the original one Once one innovation initiative hasOnce one innovation initiative has been approved by the Innovationbeen approved by the Innovation Steering Committee, an initialSteering Committee, an initial budget for its development isbudget for its development is assignedassigned The rejected ideas are recordedThe rejected ideas are recorded in an innovation ideas repositoryin an innovation ideas repository where they can be revisited to bewhere they can be revisited to be combined with other ideas orcombined with other ideas or being applied for differentbeing applied for different purposes than the original onepurposes than the original one Development Funnel 16/30 Second Hint:Second Hint: ““Implement an Efficient Idea Management ProcessImplement an Efficient Idea Management Process”” What are doing the Innovation Champions to Select which ones arWhat are doing the Innovation Champions to Select which ones are thee the Innovation Proposals to be Developed?Innovation Proposals to be Developed?
  18. 18. “Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua The sustainability of the advantage achieved by an innovation depends on The Replication Time • Its assessment requires an analysis of the innovation project itself and the changes required in the infrastructure of the business. Some WEB-based innovations can be replicated in weeks but the changes in the primary infrastructure of the business required for its implementation can take years. Example Compaq against Dell The Asymmetric Barriers • Their identification requires analyzing if our advantage will be cancelled, when a competitor replicates our innovation. The cost of suppliers substitution is an example of asymmetric barrier The Barriers of Preference • Their identification requires assessing if our customers will remain loyal to our organization unless a competitor offers to them a better alternative. Example: Amazon has built up high barriers of preference SustainabilitySustainability of the Advantage achievedof the Advantage achieved by an Innovationby an Innovation ReplicationReplication TimeTime Barriers of Barriers of Preference Preference Asym m etric Asym m etric Barriers Barriers ProjectProject AnalysisAnalysis Custom ers Custom ers Analysis Analysis Com petitors Com petitors Analysis Analysis SustainabilitySustainability of the Advantage achievedof the Advantage achieved by an Innovationby an Innovation ReplicationReplication TimeTime Barriers of Barriers of Preference Preference Barriers of Barriers of Preference Preference Asym m etric Asym m etric Barriers Barriers Asym m etric Asym m etric Barriers Barriers ProjectProject AnalysisAnalysis Custom ers Custom ers Analysis Analysis Com petitors Com petitors Analysis Analysis 17/30 Second Hint:Second Hint: ““Implement an Efficient Idea Management ProcessImplement an Efficient Idea Management Process”” A Model for Analyzing the Sustainability of Innovation InitiativA Model for Analyzing the Sustainability of Innovation Initiativeses A Model for SustainabilityA Model for Sustainability Assessment of InnovationAssessment of Innovation InvestmentsInvestments
  19. 19. “Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua Management of the Development FunnelManagement of the Development Funnel Development Steering Committee DevelopmentDevelopment SteeringSteering CommitteeCommittee Innovation Steering Committee InnovationInnovation SteeringSteering CommitteeCommittee Phase I Phase II Phase III Phase IV Frequent Prototyping Multifunctional Project Teams MultifunctionalMultifunctional Project TeamsProject Teams Program and Project Managers Program andProgram and ProjectProject ManagersManagers Management of the Development FunnelManagement of the Development Funnel Development Steering Committee DevelopmentDevelopment SteeringSteering CommitteeCommittee Innovation Steering Committee InnovationInnovation SteeringSteering CommitteeCommittee Phase I Phase II Phase III Phase IV Frequent Prototyping Multifunctional Project Teams MultifunctionalMultifunctional Project TeamsProject Teams Program and Project Managers Program andProgram and ProjectProject ManagersManagers The “Development Funnel” The “Development Funnel” is the graphical representation of the Development Process A Development Steering Committee, (“DSC”) that can be the same or another committee, than the “ISC”, is responsible for: • Providing Guidance during the whole Development Process • Assigning Program Managers, Project Managers, Project Teams, budgets and other resources • Approving Cycles Life for each Development Project, the Results to be Achieved at the End of Each one of their Phases, and the Project Plans • Establishing and Leading the Phase Verification and Validation Meetings (Gates) • Supervising the Management and Administration of the Resources and Program's Budgets • Making Recommendations to the Top Management, Including Proposals for Program and Project Changes or its Termination Project Management Professionalism and Frequent Prototyping are Key Success Drivers for the Process of Development Project Management Professionalism andProject Management Professionalism and Frequent Prototyping are Key SuccessFrequent Prototyping are Key Success Drivers for the Process of DevelopmentDrivers for the Process of Development 18/30 Second Hint:Second Hint: ““Implement an Efficient Idea Management ProcessImplement an Efficient Idea Management Process”” How is the Development Process of the Innovation Leaders?How is the Development Process of the Innovation Leaders?
  20. 20. “Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua In the Model of “Winning Boost”, Business Strategy is driving: • The Management of the Portfolio of Innovation Proposals • The Management of the Development Process • The Internal R&D • The HHRR Development Programs • The Acquisition of External Technology and Know How There is a unique, Innovation Steering Committee, responsible for Managing the Portfolio of Innovation Ideas and its Development Process IIIIII IIIIII IVIV ImplementedImplemented InnovationsInnovations DevelopmentDevelopment FunnelFunnel New Competencies InIn--Company R&DCompany R&D and HHRRand HHRR Development StrategyDevelopment Strategy TechnologyTechnology and Knowand Know HowHow AcquisitionAcquisitionNew Technologies WB Innovation Development Model © 2007 Winning Boost Program andProgram and ProjectProject ManagementManagement MultifunctionalMultifunctional Project TeamsProject Teams InnovationInnovation Programs/ProjectsPrograms/Projects InnovationInnovation ProposalsProposals BusinessBusiness StrategyStrategy InnovationInnovation SteeringSteering CommitteeCommittee 19/30 Second Hint:Second Hint: ““Implement an Efficient Idea Management ProcessImplement an Efficient Idea Management Process”” Example: The Model of WINNING BOOSTExample: The Model of WINNING BOOST
  21. 21. “Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua The application of IT enable prototyping products, processes and business models, fast and cost efficiently The application of IT enable prototyping products, processes andThe application of IT enable prototyping products, processes and business models, fast and cost efficientlybusiness models, fast and cost efficiently 20/30 When Frequent Prototyping of Products and Processes, is applied, the feedback from the end users results in an iterative refinement of the model until it finally meets the user's needs and expectations. Advantages of Frequent Prototyping of Products and Processes • User requirements easier to determine • The development’s result, more closely meets the needs and expectations of the end users • Changes identified earlier in the development process • Development costs are reduced • Faster development • Stopping development on an unworkable product or process Advantages of Frequent Prototyping of Processes and Business Models • Involvement of the personnel working for the process • Easier for the personnel to learn how to operate in the process before its implementation • Employees know what to expect at the implementation of the new process • Fewer changes needed after implementation • Employees’ resistance to change reduced. Phase I Phase II Phase III Phase IVPhase I Phase II Phase III Phase IV Frequent Prototyping Fast Prototyping applying CAD/CAM Phase I Phase II Phase III Phase IVPhase I Phase II Phase III Phase IV Frequent Prototyping Phase I Phase II Phase III Phase IVPhase I Phase II Phase III Phase IV Frequent Prototyping Fast Prototyping applying CAD/CAMApplying CAD/CAM for Fast Prototyping Phase I Phase II Phase III Phase IVPhase I Phase II Phase III Phase IV Frequent Prototyping Fast Prototyping applying CAD/CAM Phase I Phase II Phase III Phase IVPhase I Phase II Phase III Phase IV Frequent Prototyping Phase I Phase II Phase III Phase IVPhase I Phase II Phase III Phase IV Frequent Prototyping Fast Prototyping applying CAD/CAMApplying CAD/CAM for Fast Prototyping Second Hint:Second Hint: ““Implement an Efficient Idea Management ProcessImplement an Efficient Idea Management Process”” Apply Frequent Prototyping for Faster and Reliable DevelopmentApply Frequent Prototyping for Faster and Reliable Development
  22. 22. “Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua Second Hint:Second Hint: ““Implement an Efficient Idea Management ProcessImplement an Efficient Idea Management Process”” Improve the Competency for Project Management of your OrganizatiImprove the Competency for Project Management of your Organizationon Development, the final Stage for Successful Implementation of Innovative Ideas is mainly a task of performing projects Project Management Professionalism is Key for: • Ensuring that the deliverables will meet the needs and expectations of the project’s stakeholders and the Company’s quality standards • Identifying early the project's risks and defining and implementing properly the adequate risk response • Managing properly the unavoidable project changes while ensuring the achievement of the goals of the organization and stakeholders satisfaction • Tracking and Controlling adequately the project's progress • Taking advantage of the opportunities to speed up the schedule, reduce cost and improve the deliverables features • Completing the projects within the optimal period of time and the most efficient use of the budget and resources available Provide to your Employees Education and Training for Project Management Assign to the Most Competent, Project Managers the Responsibility for Managing your Key Innovation Projects Provide to your Employees Education and Training for Project ManProvide to your Employees Education and Training for Project Managementagement Assign to the Most Competent, Project Managers the ResponsibilitAssign to the Most Competent, Project Managers the Responsibility for Managingy for Managing your Key Innovation Projectsyour Key Innovation Projects 21/30
  23. 23. “Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua Third Hint:Third Hint: ““Make an Intelligent Use of the Information TechnologiesMake an Intelligent Use of the Information Technologies”” 22/30 I-Service – Opportunities Model Do you need it? How is it? Who distributes it? Who has it? How much does it cost? Credit? When do you want it? Fully received, satisfied? Ready to work? How does it work? Anything else needed? Maintenance, repair required? Sale Finished? Provided Value ? Order Specification Distribution Availability Price Payment Delivery Acceptance Installation Performance Improvement Maintenance Return Assessment I-Service – Opportunities Model Do you need it? How is it? Who distributes it? Who has it? How much does it cost? Credit? When do you want it? Fully received, satisfied? Ready to work? How does it work? Anything else needed? Maintenance, repair required? Sale Finished? Provided Value ? Order Specification Distribution Availability Price Payment Delivery Acceptance Installation Performance Improvement Maintenance Return Assessment Do you need it? How is it? Who distributes it? Who has it? How much does it cost? Credit? When do you want it? Fully received, satisfied? Ready to work? How does it work? Anything else needed? Maintenance, repair required? Sale Finished? Provided Value ? Order Specification Distribution Availability Price Payment Delivery Acceptance Installation Performance Improvement Maintenance Return Assessment I-Service – Opportunities Model Do you need it? How is it? Who distributes it? Who has it? How much does it cost? Credit? When do you want it? Fully received, satisfied? Ready to work? How does it work? Anything else needed? Maintenance, repair required? Sale Finished? Provided Value ? Order Specification Distribution Availability Price Payment Delivery Acceptance Installation Performance Improvement Maintenance Return Assessment I-Service – Opportunities Model Do you need it? How is it? Who distributes it? Who has it? How much does it cost? Credit? When do you want it? Fully received, satisfied? Ready to work? How does it work? Anything else needed? Maintenance, repair required? Sale Finished? Provided Value ? Order Specification Distribution Availability Price Payment Delivery Acceptance Installation Performance Improvement Maintenance Return Assessment Do you need it? How is it? Who distributes it? Who has it? How much does it cost? Credit? When do you want it? Fully received, satisfied? Ready to work? How does it work? Anything else needed? Maintenance, repair required? Sale Finished? Provided Value ? Order Specification Distribution Availability Price Payment Delivery Acceptance Installation Performance Improvement Maintenance Return Assessment • The use of new Information technology enables most innovations of the business processes. ("I-Innovations") • Analysis of opportunities of "I-Operations" "and" I-Marketing " , enable identifying pragmatic paths to increase sales and competitiveness of the organization • New business models and most radical innovations are most often identified, looking for opportunities of "I-Service“ At the selection of the technological platform to support the innovation of your processes or business model • Don’t rely totally on advice from System Suppliers. Many times their advice is not free of conflicts of interest • Ask for references of success, check and analyze them personally • Apply, proven decision models, to facilitate your decision At the selection of the technologicalAt the selection of the technological platform to support the innovation ofplatform to support the innovation of your processes or business modelyour processes or business model •• DonDon’’t rely totally on advice fromt rely totally on advice from System Suppliers. Many times theirSystem Suppliers. Many times their advice is not free of conflicts ofadvice is not free of conflicts of interestinterest •• Ask for references of success,Ask for references of success, check and analyze them personallycheck and analyze them personally •• Apply, proven decision models, toApply, proven decision models, to facilitate your decisionfacilitate your decision
  24. 24. “Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua ... Intensity of Information along the Extended Supply Chain (ESC)High High High Dispersion of Inform ation along the Value Chain Low InformationContent intheProduct ““EE--OperationsOperations –– Opportunity ModelOpportunity Model”” David Feeny, Oxford UniversityDavid Feeny, Oxford University Banking, Insurance, Pharmaceutical, Publishing Companies... To improveTo improve •• Product AvailabilityProduct Availability and Functionalityand Functionality •• Development TimeDevelopment Time •• Cost StructureCost Structure Reengineering of the Primary Infrastructure and Key Business Processes Reengineering of the Primary Infrastructure and Key Business Processes Companies with geographically dispersed homogeneous activities. Example: McDonald's To improveTo improve •• Sharing LearningSharing Learning and Best Practices.and Best Practices. •• Economies of ScaleEconomies of Scale •• Cultural ConsistencyCultural Consistency Reinforcing the “Parenting Value” Reinforcing the “Parenting Value” Companies with products including hundreds or thousands of components (Automotive, Aerospace, Appliances, Hardware ...) and companies of "Build to Order " To improveTo improve •• Product AvailabilityProduct Availability and Functionalityand Functionality •• Development TimeDevelopment Time •• Cost StructureCost Structure Virtual Integration of the ESC Virtual Integration of the ESC Process Transformations Enabled by WEB-Based Technologies Third Hint:Third Hint: ““Make an Intelligent Use of the Information TechnologiesMake an Intelligent Use of the Information Technologies”” A Model of WebA Model of Web--Based Transformations of Business ProcessesBased Transformations of Business Processes David Feeny (Oxford University)David Feeny (Oxford University) 23/30
  25. 25. “Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua Innovation Proposals Development New Market Boundary of the Firm Current Market Boundary of the Firm Innovation Proposals Development The Market Closed Innovation Model Open Innovation Model Innovation Proposals DevelopmentInnovation Proposals Development New Market Boundary of the Firm Current Market Boundary of the Firm Innovation Proposals Development The Market Boundary of the Firm Innovation Proposals Development Innovation Proposals Development The Market Closed Innovation Model Open Innovation Model The Open Innovation Model • The Company commercializes both its own ideas as innovations from other firms • The Organization seeks ways, to bring its in-house ideas to the market, by deploying pathways outside its current business • The boundary between the Company and its surrounding environment is porous, enabling innovations to move between the two Henry W. Chesbrough (HBS) The Closed Innovation Model • The Company generates, develop and commercializes its own ideas. • This philosophy of self-reliance dominated the innovation processes and R&D operations of many leading industrial corporations for most of the 20th century Fourth Hint:Fourth Hint: ““Adopt the Open InnovationAdopt the Open Innovation”” Open versus Closed InnovationOpen versus Closed Innovation 24/30
  26. 26. “Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua Fourth Hint:Fourth Hint: ““Adopt the Open InnovationAdopt the Open Innovation”” Why Adopting Open Innovation?Why Adopting Open Innovation? 25/30 Open innovation represents, in part, a reinvention of the organizational models that we have come to take for granted. In the next few years, as connectivity becomes ubiquitous, the shift to more distributed, more networked and more open organizational models will become commonplace and those not willing or unable to make the change will be left behind Open innovation represents, in part, a reinvention of the organiOpen innovation represents, in part, a reinvention of the organizational models that wezational models that we have come to take for granted.have come to take for granted. In the next few years, as connectivity becomes ubiquitous, the sIn the next few years, as connectivity becomes ubiquitous, the shift to morehift to more distributed, more networked and more open organizational modelsdistributed, more networked and more open organizational models will becomewill become commonplace and those not willing or unable to make the change wcommonplace and those not willing or unable to make the change will be left behindill be left behind False Beliefs for Closed Innovation • The talented people in our industry work for our organization • To profit from R&D, we must discover, develop and commercialize it ourselves • If we discover it ourselves, we will get to the market first • If we are the first to commercialize an innovation, we will win • If we create the most and best ideas in our industry, we will win • We should control our intellectual property (IP) so that our competitors don’t profit from our ideas Realities to adopt Open Innovation • Not all of the smart people work for us, so we must find and tap into the knowledge and expertise of bright individuals outside our company • External R&D can create significant value. Internal R&D is needed to claim some portion of that value • We don’t have to originate the research in order to profit from it • Building a better business model is better than getting to market first • If we make the best use of internal and external ideas, we will win • We should profit from others’ use of our IP, and we should buy others’ IP if it advances our own business model False Beliefs for Closed Innovation • The talented people in our industry work for our organization • To profit from R&D, we must discover, develop and commercialize it ourselves • If we discover it ourselves, we will get to the market first • If we are the first to commercialize an innovation, we will win • If we create the most and best ideas in our industry, we will win • We should control our intellectual property (IP) so that our competitors don’t profit from our ideas Realities to adopt Open Innovation • Not all of the smart people work for us, so we must find and tap into the knowledge and expertise of bright individuals outside our company • External R&D can create significant value. Internal R&D is needed to claim some portion of that value • We don’t have to originate the research in order to profit from it • Building a better business model is better than getting to market first • If we make the best use of internal and external ideas, we will win • We should profit from others’ use of our IP, and we should buy others’ IP if it advances our own business model False Beliefs for Closed Innovation • The talented people in our industry work for our organization • To profit from R&D, we must discover, develop and commercialize it ourselves • If we discover it ourselves, we will get to the market first • If we are the first to commercialize an innovation, we will win • If we create the most and best ideas in our industry, we will win • We should control our intellectual property (IP) so that our competitors don’t profit from our ideas Realities to adopt Open Innovation • Not all of the smart people work for us, so we must find and tap into the knowledge and expertise of bright individuals outside our company • External R&D can create significant value. Internal R&D is needed to claim some portion of that value • We don’t have to originate the research in order to profit from it • Building a better business model is better than getting to market first • If we make the best use of internal and external ideas, we will win • We should profit from others’ use of our IP, and we should buy others’ IP if it advances our own business model False Beliefs for Closed Innovation • The talented people in our industry work for our organization • To profit from R&D, we must discover, develop and commercialize it ourselves • If we discover it ourselves, we will get to the market first • If we are the first to commercialize an innovation, we will win • If we create the most and best ideas in our industry, we will win • We should control our intellectual property (IP) so that our competitors don’t profit from our ideas Realities to adopt Open Innovation • Not all of the smart people work for us, so we must find and tap into the knowledge and expertise of bright individuals outside our company • External R&D can create significant value. Internal R&D is needed to claim some portion of that value • We don’t have to originate the research in order to profit from it • Building a better business model is better than getting to market first • If we make the best use of internal and external ideas, we will win • We should profit from others’ use of our IP, and we should buy others’ IP if it advances our own business model False Beliefs for Closed Innovation • The talented people in our industry work for our organization • To profit from R&D, we must discover, develop and commercialize it ourselves • If we discover it ourselves, we will get to the market first • If we are the first to commercialize an innovation, we will win • If we create the most and best ideas in our industry, we will win • We should control our intellectual property (IP) so that our competitors don’t profit from our ideas Realities to adopt Open Innovation • Not all of the smart people work for us, so we must find and tap into the knowledge and expertise of bright individuals outside our company • External R&D can create significant value. Internal R&D is needed to claim some portion of that value • We don’t have to originate the research in order to profit from it • Building a better business model is better than getting to market first • If we make the best use of internal and external ideas, we will win • We should profit from others’ use of our IP, and we should buy others’ IP if it advances our own business model
  27. 27. “Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua 26/30 Two key questions to start the Implementation of Open Innovation • What are the kind of ideas we need? • Who are the potential collaborators that we can work with to greatest effect? An early, clear answer to these questions could inhibit the creative freedom needed to create the desired new markets, radical innovations and fresh business models. A recommendable path to start Open Innovation • Start small, with no more than two or three organizations. Some of your suppliers or clients can be good candidates to start with • Create a conjoint multifunctional committee with each one of these organizations, reporting to the top management of both organizations. • The aim of these committees is to extract investable propositions for the participant organisations that will share the value chain and benefits of the developed proposal • Emphasize more on valuable delivery partnerships than on passive ownership of IP • Periodically use the lessons learnt to refine the process and extend it to other collaborating organizations • The process, matures when both organizations find several opportunities to make investments or partnership decisions in collaborative business models like joint ventures or delivery partnerships • A welcome by-product of these programmes is that the communities stay active long after the programme has ended, keeping the conversations going, and value flowing A recommendable path to start Open InnovationA recommendable path to start Open Innovation •• Start small, with no more than two or three organizations. SomeStart small, with no more than two or three organizations. Some of your suppliersof your suppliers or clients can be good candidates to start withor clients can be good candidates to start with •• Create a conjoint multifunctional committee with each one of theCreate a conjoint multifunctional committee with each one of these organizations,se organizations, reporting to the top management of both organizations.reporting to the top management of both organizations. •• The aim of these committees is to extract investable propositionThe aim of these committees is to extract investable propositions for thes for the participant organisations that will share the value chain and beparticipant organisations that will share the value chain and benefits of thenefits of the developed proposaldeveloped proposal •• Emphasize more on valuable delivery partnerships than on passiveEmphasize more on valuable delivery partnerships than on passive ownership of IPownership of IP •• Periodically use the lessons learnt to refine the process and exPeriodically use the lessons learnt to refine the process and extend it to othertend it to other collaborating organizationscollaborating organizations •• The process, matures when both organizations find several opporThe process, matures when both organizations find several opportunities to maketunities to make investments or partnership decisions in collaborative business minvestments or partnership decisions in collaborative business models like jointodels like joint ventures or delivery partnershipsventures or delivery partnerships •• A welcome byA welcome by--product of these programmes is that the communities stay activeproduct of these programmes is that the communities stay active long after the programme has ended, keeping the conversations golong after the programme has ended, keeping the conversations going, and valueing, and value flowingflowing •• Open Innovation isOpen Innovation is still youngstill young •• Companies likeCompanies like Orange, Philips andOrange, Philips and Hewlett Packard areHewlett Packard are making of it amaking of it a strategic prioritystrategic priority •• Virgin Atlantic, andVirgin Atlantic, and Procter & GambleProcter & Gamble reported greatreported great benefits from theirbenefits from their Open InnovationOpen Innovation ProgramsPrograms •• But still there areBut still there are not enoughnot enough experiences toexperiences to extract commonextract common good practices forgood practices for its implementationits implementation •• The experiences ofThe experiences of success are notsuccess are not consistent, becauseconsistent, because each company haseach company has started Openstarted Open Innovation in itsInnovation in its own wayown way •• Open Innovation isOpen Innovation is still youngstill young •• Companies likeCompanies like Orange, Philips andOrange, Philips and Hewlett Packard areHewlett Packard are making of it amaking of it a strategic prioritystrategic priority •• Virgin Atlantic, andVirgin Atlantic, and Procter & GambleProcter & Gamble reported greatreported great benefits from theirbenefits from their Open InnovationOpen Innovation ProgramsPrograms •• But still there areBut still there are not enoughnot enough experiences toexperiences to extract commonextract common good practices forgood practices for its implementationits implementation •• The experiences ofThe experiences of success are notsuccess are not consistent, becauseconsistent, because each company haseach company has started Openstarted Open Innovation in itsInnovation in its own wayown way Fourth Hint:Fourth Hint: ““Adopt the Open InnovationAdopt the Open Innovation”” How to Start Open Innovation? Some Key IssuesHow to Start Open Innovation? Some Key Issues
  28. 28. “Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua1/30 Fifth Hint: "Apply Change Management to get an Innovative OrganiFifth Hint: "Apply Change Management to get an Innovative Organizationzation”” 27/30 To succeed on business innovation, especially for effectively implementing new business models, processes and systems, organizations must quickly get the entire organization' support to change. Many change initiatives fail victim to employees' resistance mainly because their fears for their personal future To succeed on business innovation, especially for effectively imTo succeed on business innovation, especially for effectively implementing newplementing new business models, processes and systems, organizations must quickbusiness models, processes and systems, organizations must quickly get the entirely get the entire organization' support to change.organization' support to change. Many change initiatives fail victim to employees' resistance maiMany change initiatives fail victim to employees' resistance mainly because theirnly because their fears for their personal futurefears for their personal future Key Features on Change Management Enrolling • Making the people conscious of the the need for change • Helping the people to see a future they want to be a part • Requesting commitment Enabling • Challenging people’s self-limiting beliefs • Providing education and training, for the required knowledge, skills and behaviors • Building self-esteem and trust Energizing, to sustain the change • Building and sustaining people’s energy • Celebrating successes • Giving recognition Five basic tools to overcome the employees' resistance to change • The commitment and example of the leaders • Education and training • Coaching • Recognition to effort and celebration of successes •Communication, Communication, Communication…! Five basic tools toFive basic tools to overcome the employees'overcome the employees' resistance to changeresistance to change •• The commitment andThe commitment and example of the leadersexample of the leaders •• Education and trainingEducation and training •• CoachingCoaching •• Recognition to effortRecognition to effort and celebration ofand celebration of successessuccesses •• Communication,Communication, Communication,Communication, CommunicationCommunication……!!
  29. 29. “Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua1/30 “The Innovation System at SIEMENS: Taking inputs from technology, competitors, and market intelligence and driving these into the planning for new product and new processes development” Fifth Hint: "Apply Change Management to get an Innovative OrganiFifth Hint: "Apply Change Management to get an Innovative Organizationzation”” Example of a Communication Tool: Map of the Innovation System ofExample of a Communication Tool: Map of the Innovation System of SIEMENSSIEMENS 28/30
  30. 30. “Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua 29/30 Sixth Hint:Sixth Hint: ““Continuously Update your Professional CompetenceContinuously Update your Professional Competence”” A plan with six activities to sustain your professional competence throughout life • Read, quarterly, a book recently published about Innovation Management • Subscribe and read, at least three prestigious management magazines ("Harvard Business Review", "MIT Sloan Management Review" and the online magazine "www.innovationmanagement.se" are recommendable) • Participate, at least a week per year, in continuing education programs of prestigious academic institutions • Actively participate in the professional experience sharing programs of the alumni of the academic institutions where you studied and the professional associations where you are member • Make a public presentation to a professional audience and/or write, and get published in a professional magazine, an article about Innovation Management at least once a year • Build and sustain a network of prestigious management professionals and experts on innovation management from different industries, for sharing knowledge and experiences A plan with six activities to sustain yourA plan with six activities to sustain your professional competence throughout lifeprofessional competence throughout life •• Read, quarterly, a book recently published aboutRead, quarterly, a book recently published about Innovation ManagementInnovation Management •• Subscribe and read, at least three prestigiousSubscribe and read, at least three prestigious management magazines ("Harvard Business Review",management magazines ("Harvard Business Review", "MIT Sloan Management Review" and the online"MIT Sloan Management Review" and the online magazine "www.innovationmanagement.se" aremagazine "www.innovationmanagement.se" are recommendable)recommendable) •• Participate, at least a week per year, in continuingParticipate, at least a week per year, in continuing education programs of prestigious academic institutionseducation programs of prestigious academic institutions •• Actively participate in the professional experienceActively participate in the professional experience sharing programs of the alumni of the academicsharing programs of the alumni of the academic institutions where you studied and the professionalinstitutions where you studied and the professional associations where you are memberassociations where you are member •• Make a public presentation to a professional audienceMake a public presentation to a professional audience and/or write, and get published in a professionaland/or write, and get published in a professional magazine, an articlemagazine, an article about Innovation Management atabout Innovation Management at least once a yearleast once a year •• Build and sustain a network of prestigious managementBuild and sustain a network of prestigious management professionals and experts on innovation managementprofessionals and experts on innovation management from different industries, for sharing knowledge andfrom different industries, for sharing knowledge and experiencesexperiences The current changes of theThe current changes of the business environment,business environment, deeper and faster eachdeeper and faster each day, are making challengingday, are making challenging for managers, sustainingfor managers, sustaining their professionaltheir professional competence, if they don'tcompetence, if they don't work every day to updatework every day to update the knowledge and skillsthe knowledge and skills required for performingrequired for performing their professiontheir profession The current changes of theThe current changes of the business environment,business environment, deeper and faster eachdeeper and faster each day, are making challengingday, are making challenging for managers, sustainingfor managers, sustaining their professionaltheir professional competence, if they don'tcompetence, if they don't work every day to updatework every day to update the knowledge and skillsthe knowledge and skills required for performingrequired for performing their professiontheir profession
  31. 31. “Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua 30/30 Successfully Managing Innovation requires: • Implementing collaborative and social networks for capturing requirements and ideas, from colleagues, customers and partners, into products and processes • Establishing consistent, repeatable processes for translating concepts into products. • Making role-based data available to all stakeholders during each stage of the product development process. • Standardizing the data captured about each project, such as strategic alignment, financials, and risk levels. • Managing intellectual property including patent assets and the protection of specialized proprietary knowledge. • Managing the project portfolio, tracking execution and alignment with corporate mission and competitive goals, and making time-to-market decisions via flexible scheduling. • Maintaining effective communications across multiple sites and organizations. The final stage ofThe final stage of anyany effective ideaeffective idea managementmanagement approach, isapproach, is the successfulthe successful implementation ofimplementation of innovativeinnovative ideasideas What says about these issues a Global Innovation Champion?What says about these issues a Global Innovation Champion?
  32. 32. “Some Hints for Building an Effective Business Innovation System” - Miguel Sáenz de Viguera Aizpurua “Some Hints for Building an Effective Business Innovation System” The author authorizes the integral reproduction of this presentation Miguel Sáenz de Viguera Aizpurua 2007 PMI Distinguished Contribution Award msaenzdeviguera@hotmail.com November 2010
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