Leading Research and Innovation
in Expert Organisations
Minna Takala - QIS
October 2010
Materials Day 1
Leading Research and Innovation
in Expert Organisations
Focused on innovation in governments, research centres,
corporatio...
Minna Takala
www.minnatakala.com -
Twitter/@MinLii & @LinnaBikeShop
SlideShare/MinLii, Delicious/MinLii, SecondLife/ MinLi...
AGENDA AT A GLANCE
1st
Day 2nd
Day
09:00 OPENING 09:00 Opening of the day
& review of previous days results
09:15 INTRODUC...
Theme 1
Leadership & Culture
Views of the Future
Trust & Attitude
Creating conditions fos success
Leadership & Management
6
Images of Innovation
”IMAGES OF CHANGE”
Spatial image - the picture of the individual's location in the space around him...
7
Right balance between values based
leadership and fact based
management is crucial
Fact-Based Management
Values-Based Le...
Leadership Role in Innovation System
• Providing a long-term view for innovation via strategy,
target setting and portfoli...
Theme 1 – Leadership & Culture
Group Work options & Examples
Group Work
• Values Exercise –
TOP 3 values for
innovation wo...
Theme 2
Governance Models & Services
Structure
Decision making
Processes
Products, services & solutions
Operational model defines organization, processes and
information system needs that are needed to implement strategies
and...
Beyond products and services
Product
Solution
Outsourcing
Service
Experience Trans-
formation
“Increased demand for advice...
I SYSTEMS VIEW:
Services within and between
different systems
Social
system
People 
& High - touch
Physical
system
Atoms
...
Theme 2 – Governance Models & Services
Group Work options & Examples
Group Work
• Reality process – what
are desired outco...
IBM’s Approach to Innovation
Challenge /
Opportunity
Idea Generation Incubation Validation Value realized
Research,
Corpor...
Theme 3
Stakeholders & Relationships
Who are your stakeholders?
Value adding relationships
Infinite & Finite games
Stakeholders & Relationships
• Customers
• Suppliers
• Employees
• Shareholders
• Government
• 3rd sector organizations
…
...
18
Co-operation in Service Research
Stakeholders in Finland
Governmental Institutions &
Industry Associations
• The Federa...
The Federation of Technology Industries
activates stakeholders with
BestServ Forum
• Joint collaborative network, funded
b...
20
SITRA – the Finnish Innovation Fund
promotes service research for
Finnish government
and provides support with programs...
21
TEKES - Finnish Funding Agency for Technology and Innovation
supports service research with collaborative programs
Coll...
Examples of Innovation practices
Company Example
IBM Innovation with clients, use of social media to support communities,
...
23
Source – P&G
© 2009 Noki 24
Stakeholder view:
Relationship with whom ?
Company
Financiers
Suppliers
Partners
Society
Employees
Customers
Finite and
Infinite
Games...
Finite Games
• The purpose is to win
• Improves by fittest surviving
• Winners exclude losers...
Integration possibilities
- co-creation ??
From Value Adding
to Value Co-creation 1 (2)
• Industrial view
• Value creation is sequential,
unidirectionally transitive...
From Value Adding
to Value Co-creation 2 (2)
• Industrial view
• Value is “realized” in transaction,
only for supplier (ev...
Options in relationships...
• Design
TO - >or WITH <-> ?
• Inactive ?
• Proactive ?
• Reactive ?
• Interactive ?
• … posta...
Life cycle of a relationship
Time aspects ?
• Short term / long term
• Continuous / discontinuous …
• Temporary / permanen...
Theme 3 – Stakeholders & Relationships
Group Work options & Examples
Group Work
• Stakeholder
identification
• Role analys...
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Material for innovation workshop in Oct 2010, in South Africa - Day 1

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  • Here the main stakeholders in Finnish “services” research – from the technical perspective.
    Technology Industries and TEKES have been very actively promoting development of industrial services and related research as well.
    Also SITRA has been active in the area.
    The Academy of Finland seems to be following behind this development. In their programs services research in embedded into other themes.
    Universities and Polytechnics have been active in this area – but due to time constrains examples will not be given in this presentation separately, but linked with Nokia examples. That also illustrates the co-operation in this arena.
  • Technology Industries has been very actively promoting the service business development in Finland among different stakeholders.
    Their main approach has been BestServ Forum, which has been organizing events, collaborative research projects, and contacts among people working in the area.
    Activities also include industrial visits, workshops and seminars, and promotion of international events related to services research.
    BestServ Forum has been able to promote both service business development and related reaserch in Finland.
    Nokia is the member of BestServ and we have been benefited from these joint activities. Meetings provide good possibilities for exchanging experiences among industry members and it gives opportunity to steer related research to commonly interesting and meaningful themes.
  • SITRA’s role is different – SITRA works closely with Finnish Government and it influences to the future development directions of Finnish Society.
    Esko Aho wil shortly give a report on innovation policy to Finnish Government. During the autumn 2007 there were 11 discussion thematic discussion workshops relate to this work- and one of the themes was service business.
    Service business was identified to be one of the problem/ focus areas – at it is recommended that even more emphasis should be paid into services research and business development. The work continues.
    http://www.innovaatiostrategia.fi/files/download/Summaryoftheexpertworkshops-20080128.pdf
    From the Nokia perspective – collaboration with SITRA is well established, in March 2007 Mikko Kosonen moved from Nokia to steer SITRA’s innovation activities.
  • TEKES role has been fundamentally important for service development and research.
    Here are only few examples of TEKES co-ordinated activities in this arena.
    Already UTT – program in 2000 – 2004 – was addressing the fundamental changes of the industrial companies.
    Currently LIITO program has intensive focus on business renewal , innovation and services.
    Nokia is a co-ordinator of one LIITO project and a participating member of many LIITO projects.
    TEKES has for years provided a collaborative space for Finnish Universities and companies – this same approach is applied also in service research. But in this arena it is fundamentally important.
    Services development often happen in co-creative relationships – and TEKES principles enable this.
    However, there are still very many challenges how to make this even better.
    One challenge is the linkage between research and education - also in the company context.
    Service business management challenges some old traditional management practices, and companies aiming to transform their business models , have to transform competences of their managers and employees as well.
  • - mention Life cycle &amp; time presentation …
  • Leading expert organizations materials handout_day1_v1_open

    1. 1. Leading Research and Innovation in Expert Organisations Minna Takala - QIS October 2010 Materials Day 1
    2. 2. Leading Research and Innovation in Expert Organisations Focused on innovation in governments, research centres, corporations and universities Content Themes • Culture and leadership supporting open innovation • Governance models and service • Examples of companies, institutions and open source communities • Stakeholders and relationship management • Managing innovation from idea to innovation • New ways of working supported by social media • Portfolio management and projects management • Reward and recognition Selected examples from IBM, Google, Lego, P&G, Toyota, Philips & Nokia, research and govermental institutions, universities open source communities and social media
    3. 3. Minna Takala www.minnatakala.com - Twitter/@MinLii & @LinnaBikeShop SlideShare/MinLii, Delicious/MinLii, SecondLife/ MinLii Hanson
    4. 4. AGENDA AT A GLANCE 1st Day 2nd Day 09:00 OPENING 09:00 Opening of the day & review of previous days results 09:15 INTRODUCTION AND KICKOFF • Agenda review • Introduction to facilitators & participants • Expected outcome of the workshop 09:15 FROM IDEA TO INNOVATION ECOSYSTEM VIEW TO INNOVATION 10:30 – Coffee break – 10.45 10:30 – Coffee break – 10.45 CULTURE & LEADERSHIP GOVERNANCE MODELS & SERVICES WORK GROUP SESSION NEW WAYS OF WORKING SUPPORTED BY SOCIAL MEDIA 12:30 – Lunch – 13:30 12:30 – Lunch – 13:30 WHAT OTHERS ARE DOING • Examples from companies • Examples from institutions & universities • Examples from open source communities PORTFOLIO MANAGEMENT & PROJECT MANAGEMENT REWARD & RECOGNITION - HOW TO ENHANCE PASSION FOR INNOVATION 14:45 – Coffee break – 15:00 14:45 – Coffee break – 15:00 WORK GROUP SESSION STAKEHOLDERS & RELATIONSHIP MGMT CLOSING • Summary • Feedback 16:00 16:00
    5. 5. Theme 1 Leadership & Culture Views of the Future Trust & Attitude Creating conditions fos success Leadership & Management
    6. 6. 6 Images of Innovation ”IMAGES OF CHANGE” Spatial image - the picture of the individual's location in the space around him. Temporal image - an individual's picture of stream of time and his place in time. Relational image - the picture of the universe as a system of regularities. Personal image - the picture of an individual in the midst of the universe of persons, roles and organizations around him. Value image - the ordering of the scale of better and worse of the various parts of the whole image. Emotional image - various items in the rest of the image are imbued with feeling or affect Conscious, unconscious & subconscious image - an individual is capable being conscious of all parts of the image with the same degree of intensity, ability to perceive varies, a very small part of an image is exposed to our internal view at the same time. Certain / uncertain, clear / vague images - every aspect of a image is tinged with some degree of certainty and uncertainty. Real / unreal image - an image of the correspondence of the image "itself" with some "outside" reality. Public / private image - whether the image is shared by others or is peculiar to the individual. Source: Kenneth Boulding (1956)
    7. 7. 7 Right balance between values based leadership and fact based management is crucial Fact-Based Management Values-Based Leadership • Clear targets • Common Management principles and tools • Common modular processes • Achieving Together • Passion for Innovation • Engaging You • Very Human Nokia Values
    8. 8. Leadership Role in Innovation System • Providing a long-term view for innovation via strategy, target setting and portfolio • Enhancing integrated view of key leaders and manager to the dynamics of innovation • Nurturing key creation programs • Managing relationships with key external stakeholders • Assessing innovation implications of corporate, strategic initiatives • Providing an expert opinion and crucial judgment • Managing the balance between business and technology innovation such as organizational dynamics, portfolio, resources and processes.
    9. 9. Theme 1 – Leadership & Culture Group Work options & Examples Group Work • Values Exercise – TOP 3 values for innovation work • Leadership versus Management Examples • IBM – Values for innovation • P&G – Connect & Develop • Nokia – ”Passion for Innovation” • Aalto University Design Factory • User driven innovation in Finnish context • Reaktori • Lulu Lemon
    10. 10. Theme 2 Governance Models & Services Structure Decision making Processes Products, services & solutions
    11. 11. Operational model defines organization, processes and information system needs that are needed to implement strategies and operationalize the business model
    12. 12. Beyond products and services Product Solution Outsourcing Service Experience Trans- formation “Increased demand for advice and support drives value from products, to services to solutions and outsourcing.” (Slywotzky, 1996) “Progression of economic value: make goods -> deliver services -> stage experiences -> facilitate transformations “ ( Pine et all, 1999)
    13. 13. I SYSTEMS VIEW: Services within and between different systems Social system People  & High - touch Physical system Atoms & High tech Information systems Bits & High tech People  Organizations Stakeholders Social environment People  <-> People  People  <-> Machines People  <-> IT Machines Buildings Physical environment People  <-> Machines Machine <-> Machine Machine <-> IT Information Technology Network Virtual environment People  <-> IT IT <-> Machine IT <-> IT People  <-> People  People  <-> Machine People  <-> IT Machine <-> IT IT <-> IT Machine <-> People  IT <-> People  Machine <-> Machine IT <-> Machine
    14. 14. Theme 2 – Governance Models & Services Group Work options & Examples Group Work • Reality process – what are desired outcomes? • Governance model basics Examples • IBM – innovation activities across the company and with customers • Toyota – lean mgmt principles • Tekes – program portfolio • SITRA – orchestrating societal change • Hub Helsinki
    15. 15. IBM’s Approach to Innovation Challenge / Opportunity Idea Generation Incubation Validation Value realized Research, Corporate IBM Lines of Business GTO / GIO / IBV Client (and IBM) Challenges Client Challenges InnovationJam ThinkPlace Communities of Practice Extreme Blue Biz Tech Emerging Business Opportunities TAP Alpha Works –LOB with developer community IBM Internal IBM Offerings Partners Clients Clients IBM innovation programs Joint Innovation Partnerships First of a Kind Strong governance is crucial
    16. 16. Theme 3 Stakeholders & Relationships Who are your stakeholders? Value adding relationships Infinite & Finite games
    17. 17. Stakeholders & Relationships • Customers • Suppliers • Employees • Shareholders • Government • 3rd sector organizations … • Stakeholders !!! • Friends • Partners • Enemies • Competitors • Family members • Strangers, VIPs • Guests, visitors… • Associates...
    18. 18. 18 Co-operation in Service Research Stakeholders in Finland Governmental Institutions & Industry Associations • The Federation of Finnish Technology Industries • TEKES - Finnish Funding Agency for Technology and Innovation • SITRA – The Finnish Innovation Fund • The Academy of Finland • VTT - The Finnish Research Center Universities & Polytechnics • Helsinki University of Technology TKK • Lappeenranta University of Technology LUT • Tampere University of Technology TUT • Oulu University • Stadia Polytechnic • ...
    19. 19. The Federation of Technology Industries activates stakeholders with BestServ Forum • Joint collaborative network, funded by Technology Industries & members • The vision: World Class industrial service business is a competitive advantage of Finnish Companies in Global Markets. Services boost industries’ international growth and success. • Collaborative working practices & WebPortal for sharing information • Focus on service business research
    20. 20. 20 SITRA – the Finnish Innovation Fund promotes service research for Finnish government and provides support with programs • On-going innovation policy work for Finnish Society – one of the themes service business • The report will be given to Finnish Government in March 2008 • On–going program on network- based operating models 2008 - 2010 • Mikko Kosonen (ex- Nokia executive) heading SITRA
    21. 21. 21 TEKES - Finnish Funding Agency for Technology and Innovation supports service research with collaborative programs Collaborative research and development programs with companies, research centers and universities Examples of programs enhancing service research : New Industrial Paradigm program (UTT - Uusi Teollinen Toimintatapa) • 2000 - 2004 Innovative business Competence and Management ( LIITO Uudistuva liiketoiminta ja johtaminen) • 2006 - 2010 Nokia participation in Liito projects - examples • Innovation Practices in New Business Creation in Nokia Research Center – ONIONS • Knowledge creation in Collaborative Innovation and Networked R&D - INNOSPRING ACCESS • Renewal and Redirection- New Management Models for Supporting Innovation Implementation - RENDEZ
    22. 22. Examples of Innovation practices Company Example IBM Innovation with clients, use of social media to support communities, facilitated innovation community, “Technology Adaption Program” and “First of the Kind” projects P&G Focus on involving external stakeholder into innovation activities, global 50% target set for new products Philips InnoHubs (Singapore & Espoo, Finland) – places for innovation accelleration and early user co-operation F-Secure Encouraging employees and linking innovation champaigns with agile/lean SW development Lego Co-creation with users & developers, transformation of R&D / innovation practices Dell Using user feedback extensily, crowd sourcing with Dell Idea Storm Google Innovation practices integrated in R&D ways of working , systematic mechanisms for ideation,validation, investment & rewarding 22
    23. 23. 23 Source – P&G
    24. 24. © 2009 Noki 24
    25. 25. Stakeholder view: Relationship with whom ? Company Financiers Suppliers Partners Society Employees Customers
    26. 26. Finite and Infinite Games... Finite Games • The purpose is to win • Improves by fittest surviving • Winners exclude losers • Winner takes all • Aims are identical • Relative simplicity • Rules fixed in advance • Rules resemble debating contests • Compete for mature markets • Short term decisive contests • Externally defined Infinite Games • The purpose is to improve the game • Improves by game evolving • Winners teach losers better plays • Winning widely shared • Aims are diverse • Relatively complexity • Rules changed by agreement • Rules resemble grammar of original utterances • Grow new markets • Long term • Internally defined “A finite game is played for the purpose of winning, the infinite game for the purpose of continuing the game …” (Carse, 1986)
    27. 27. Integration possibilities - co-creation ??
    28. 28. From Value Adding to Value Co-creation 1 (2) • Industrial view • Value creation is sequential, unidirectionally transitive, best described in “value chains” • All managed values can be measured in monetary terms • Value is added • Value is a function of utility and rarity • Values are “objective” (exchange) and “subjective” (utility) • Customers destroy value • Co-productive view • Value creation is synchronic, interactive, best described in “value constellations” • Some managed values cannot be measured or monetized • Values are co-invented, combined and reconciled • Exchange the source of utility and rarity • Values are”contingent” and “actual” established interactively • Customers and suppliers co- create value
    29. 29. From Value Adding to Value Co-creation 2 (2) • Industrial view • Value is “realized” in transaction, only for supplier (event) • Three sector statistical models applicable • Services are a “separate” activity • Consumption not a factor of production • Economic actors analyzed holding one primary role at a time • Firm and activity are units of analysis • Co-productive view • Value is co-produced, with customers and suppliers over time - for both co-producers (relationship) • Three sector statistical models no longer applicable • Services a framework for all activities considered co-produced • Consumers managed as factors of production (assets) • Economic actors analyzed as holding several roles simultaneously • Interactions (offerings) are units of analysis (Raminez , 1999)
    30. 30. Options in relationships... • Design TO - >or WITH <-> ? • Inactive ? • Proactive ? • Reactive ? • Interactive ? • … postactive... ? EXIT LOYALTY VOICE (Hirchman, Albert, 1970) (Ackoff, Russel )
    31. 31. Life cycle of a relationship Time aspects ? • Short term / long term • Continuous / discontinuous … • Temporary / permanent Phases ? • In the beginning… during … at the end Crisis ? • Mergers & acquisitions • Intensive growth / decline • Transformation
    32. 32. Theme 3 – Stakeholders & Relationships Group Work options & Examples Group Work • Stakeholder identification • Role analysis Examples • Nokia – co-creation with lead users • Philips – opening up & InnoHub • University -Industy Collaboration • Rendez research project • Hub Helsinki • Friendpreneurs

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