1. A few of you might find some of the material disturbing
Viewer discretion is advised
2. "The arrogance of success is to think that what you did yesterday will be
sufficient for tomorrow.”
What is Innovation for you
3. It is not only about
• money on R&D
• product itself
• how different it is
It’s why they failed
Consistently winning awards
Gps
Duct tape
Microwave
Jeep
Digital Camera
It’s not about the product itself
It’s the process behind it
4. Al Qaeda
1st Step 2nd Step 3rd Step
Idea DiffusionIdea Generation Idea Conversion
Within unit
Across units
Outside parties
Screening
Initial Funding
Dissemination
across and outside
organization
Crowd sourcing
Real life Impact
Resources
Strategy
Middle managers
Multiple participation
5. InnovationValue Chain
Idea DiffusionIdea Generation Idea Conversion
KPI’s
No. of high quality ideas Percentage of ideas
• selected and funded
• lead to revenues
Percentage of penetration
• customers
• markets
• channels
Capacity to innovate is only as good as the weakest link
Scorecard
Idea-Poor Diffusion-PoorConversion-Poor
6. Australian Army
“armies don’t innovate unless by stimulating new ideas, incubate the best ones
and communicate them across the organization.”
Don’t Agree
Partially Agree
Agree
Activity Phase
“Our culture makes it hard for people
to put forward novel ideas
Agree
In-house
Idea-Poor
Few of our innovation projects involve
members from different units
Cross pollination
Our people typically don’t collaborate
across units or businesses
We have a risk-averse attitude toward
investing in novel ideas
Selection
Conversion-Poor
Managers have a hard time getting
traction developing new businesses
Development
We’re slow to roll out new products Diffusion Difusion-Poor
7. • Incentive to write ideas
• Increase frequency of
publication
“Evangelists”
• U.S. Army - Rapid Innovation
Fund
“Safe Haven”
• Create channels and encourage
interaction between units
• Build relationships with allies
• Recognize and incentivize talent
“Cross Unit Networks”
“External Networks”
“Talent Management”
Recommendation
Idea DiffusionIdea Generation Idea Conversion
8. Critique
Can’t be standardized
• Subjective KPI’s
(“No. of high quality ideas”)
• Screening Criteria
Sequential
If idea-poor - Cannot
assess idea diffusion stage
at fits full potential
Made for “big companies”
Solutions don’t fit in “small
companies"
Lack of a Lean Approach
• No incentive for MVP’s
• No opportunity to readjust the
product to better meet customer
needs
