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Business Model Innovation, the Nordic innovation programme Measured and Managed Innovation - Jorn Bang Andersen

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Largest business model innovation programme in the Nordic region. Jorn Bang Andersen gives a background to the Nordic business innovation model programme measured and managed innovation programme MMI. The programme involves 100 Nordic companies and innovation agencies from the five Nordic countries.

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Business Model Innovation, the Nordic innovation programme Measured and Managed Innovation - Jorn Bang Andersen

  1. 1. Measured and Managed Innovation – MMI A Nordic Innovation Centre Programme Nordic National MMI Workshops November 2010 Iceland 12 Nov., Norway 15 Nov., Denmark 17 Nov. and Finland 29 Nov 2010 Jørn Bang Andersen, Senior Innovation Advisor, Nordic Innovation Centre 1
  2. 2. The Agenda  If it ain’t broken why do we need a new model for innovation?  Measured and Managed Innovation  New tools, differentiation and change of mindset 2© Jørn Bang Andersen 2010
  3. 3. “If it ain’t broken, why do we need anew model for Innovation”? 3 © Jørn Bang Andersen 2010
  4. 4. “No Battle Plan Survives Contact With the Enemy” General Colin Powell Charles Joseph Minard: Mapping Napoleon’s March, 1861 4 © Jørn Bang Andersen 2010
  5. 5. …. And Few Innovation Plans Survive Contact With Market Realities The global innovation success 4% average, across all geographies and all industries… Imagine… what if we could reach…40% in the Nordic region 5 © Jørn Bang Andersen 2010
  6. 6. “…US today is more than 75% wealthier than 30 years ago, primarily due to productivity gains driven by innovation. “However, until now, few steps have been in place to allow the US to measure and understand innovation.” US Department of Commerce, 2008 6© Jørn Bang Andersen 2010
  7. 7. “Every CEO will at least give lip service to theidea that the world is moving faster and that weneed to do a better job at innovation.But if you go into an organization and askpeople to describe their innovation system,you get blank looks...They have none...” Gary Hamel Harvard University 7
  8. 8. 8© Jørn Bang Andersen 2010
  9. 9. Measured and Managed Innovation New Tool + Differentiation + Change of Mindset = Successful Innovation 9© Jørn Bang Andersen 2010
  10. 10. The Results New Tools Differentiate Changed Mindset New Business More New Value More Models Competitive Creation Innovative New Markets Growth Profit 10© Jørn Bang Andersen 2010
  11. 11. New Tool 11© Jørn Bang Andersen 2010
  12. 12. Innovation Radar v. 2.0 Offering (What) Ecosystem Platform Solution Channel Supply Customer Chain Customers Needs (Where) (WHO) (Who) Management Customer Experience Value Capture Communication Process (How) 12
  13. 13. Innovation Radar 2.0 - Examples Offering Ecosystem Platform Channel Solution Supply Chain Customer Need Customer Management Experience Value Capture Communication Process 13
  14. 14. Food Products Firms’ Radar Profiles Firm: A Firm: B Offerings Offerings 7 7 Brand Platform Brand Platform 6 6 5 5 4 Networking Solutions Networking Solutions 4 3 3 2 2 1 Presence 0 Customer Presence 1 Customers Supply Chain Customer Experie Supply Chain Customer Experience Organization Value Capture Organization Value Capture Process ProcessAll Rights Reserved, Robert C. Wolcott, 2003 - 2007
  15. 15. Divergent Opinions Firm: A Firm: B Offerings Offerings 7 7 Brand Platform Brand Platform 6 6 5 5 4 Networking Solutions Networking 4 Solutions 3 3 2 2 1Presence 0 Presence Customers 1 Customers Supply Chain Customer Experience Chain Supply Customer Experien Organization Value Capture Organization Value Capture Process ProcessAll Rights Reserved, Robert C. Wolcott, 2003 - 2007
  16. 16. Divergence of Opinion l Substantial disagreements exists, though the strength areas are mostly agree upon l The areas that have the most measured disagreement are Process, Supply Chain, Channel, and Ecosystem l A discussion regarding the areas with most diver- gence could be fruitfulAll Rights Reserved, Robert C. Wolcott, 2003 - 2007
  17. 17. Tying Innovation to Corporate Strategyl Select 2 - 5 dimensions to get a clear focus in your innovation effortsl Look for dimensions that differentiate your company from its competitors: Dimensions of Differentiation & Dimensions of Parityl Coordinate all internal functions and external partners to innovate around these differentiating dimensions of your business system 17
  18. 18. APPLICATIONS OF THE INNOVATION RADARl Detailed strategic understanding: Explore dimensions of innovation in a strategic, systematic & holistic mannerl Diagnosis: Identify your company’s current innovation efforts and strategyl Benchmarking: Benchmark your company’s innovation efforts within & across industries, and take look into the future for each dimensionl Ongoing alignment of strategy: Track and adjust your company’s complete business system & strategyl Management across portfolio of projects/ventures: Enable a holistic view across your company’s innovation projects 18
  19. 19. Differentiate and Change Tracks 19© Jørn Bang Andersen 2010
  20. 20. Three Ways to Look at it…1. The same as the industry– but a lot better.2. Turn a dimension on its head.3. Look across other industries for new solutions. 20
  21. 21. The Same as the Industry 21 © Jørn Bang Andersen 2010
  22. 22. …but a lot Better… 22
  23. 23. Turn a Dimension on its HeadRackspace Hosting Fanatical Support® Premium price 10% plus… Ten years and industry leader 23© Jørn Bang Andersen 2010
  24. 24. Look Across Industries for New Solutions Tetette Toyota Textiles Ford Slaugther house Fischer Violin builder Ski Nike Formula 1 24© Jørn Bang Andersen 2010
  25. 25. And Three Attributes to Compete on… FunctionalityPartnership/Management? Price Experience 25© Jørn Bang Andersen 2010
  26. 26. Mindset: Present and Future 26© Jørn Bang Andersen 2010
  27. 27. Settlers versus Pioneers 27© Jørn Bang Andersen 2010
  28. 28. What business What is our are we in? business? Are we in the Who is the right business? customer? How do we Business Model Who is our what we do? customer? Innovation to the Core What will our What does the business be? customer buy? What solutions What is the do we provide? value to the© Jørn Bang Andersen 2010 customer? 28
  29. 29. Plus a Few Simple Steps… • Visualize and brainstorm • Differentiate on maximum 3-5 dimensions • Prototype small scale and develop • Communicate and align • Review 29© Jørn Bang Andersen 2010
  30. 30. Sum up the Innovation Radar Applied… 2. Envision - Strategic Dimensions - Desired Future State 1. Profile 3. Enable - Current State - Communicate - Competition - Educate - Diverse Perspectives - Empower 4. Track - Progress - Performance 30
  31. 31. End Note: From Failure to SuccessБыстро = bystro (quickly)Changed mindset – Russian Cossack soldiersDifferentiate – quick cookingNew business – Bistro concept Thus the French Bistro was borne. 31© Jørn Bang Andersen 2010
  32. 32. Many thanks Jørn Bang AndersenNordic Innovation Centre j.andersen@nordicinnovation.net Mobile +47 975 40 408

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