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Managing Innovation in any Market

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NC State's Poole College of Management presents the misconceptions of innovation's role in business and the benefits resulting from the effective implementation of innovation into your company.

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Managing Innovation in any Market

  1. 1. Managing INNOVATION In Any Market June 10, 2011
  2. 2. Welcome: Your Hosts & Presenters Dr. Richard Kouri Executive Director, Biosciences Management MBA Program, NC State University College of Management Ms. Lee Clark-Sellers Program Director, Executive Programs – Managing Disruptive Innovation CIMS Industrial Fellow Mr. Paul Mugge Innovation Professor, College of Management, and Executive Director, Center for Innovation Management Studies (CIMS) at NC State University Mr. Shawn Gallagher Sr. Director, Outsourcing Operations, Eisai, Inc.
  3. 3. Top Tier Research School • 5th for corporate research • 7th in Industry Research Funding (non-medical school) • 9th in Total Research Expenditures (non-medical schools) “Locally responsive… Globally engaged” Chancellor Randy Woodson NC State University
  4. 4. Why are we here?
  5. 5. TODAY IS ABOUT INNOVATION
  6. 6. Innovation Poll • How market aware is your company? oWe drive the market oWe are in touch with the market oWe are too busy and don’t have time
  7. 7. INNOVATION It’s thrown around often. The executive MANTRA Today’s HOT term Another NEWS story HR HIRING DIRECTIVE R&D’s CLAIM TO FAME
  8. 8. Why The Focus on INNOVATION? Executives fear their businesses becoming commoditized1 2Desperately seeking ways to distinguish products and services Cost Control is now a way of life – sustainable, profitable growth is a challenge3
  9. 9. A Common INNOVATION Problem • Innovation revolves around old concepts • Limited in risk • Close to today’s ways of doing business • Minimal impact.
  10. 10. – or They vanish from sight then return with big ideas. Common MISCONCEPTIONS
  11. 11. INNOVATION is not invention
  12. 12. .
  13. 13. $ Top Line Growth $ Innovation is the only business activity that can increase the size of the pie
  14. 14. SURPRISE! • Innovation is a deliberate process that combines resources – Ideas, people, products & services – Processes, tools, strategy and metrics – Defined activities that cross functional areas INNOVATION converts ideas into commercial successes
  15. 15. Not To Worry! • You can manage innovation and put your company on the path to leadership. • You can build a culture of innovation across the enterprise that sees no boundaries. • You can lead the innovation charge.
  16. 16. Managing INNOVATION requires specific tools, functions and expertise. •Recognize market signals •Create a culture of innovation •Cross business functions •Transform business models
  17. 17. The CIMS INNOVATION Management Framework™ A systematic way to manage innovation •Built upon an enormous body of knowledge •27 + years of research and proven applicability from the Center for Innovation Management Studies (CIMS) •Validated with leading global enterprises A Common Language A Common Platform
  18. 18. Levels ProjectManagement MarketManagement IdeaManagement PlatformManagement PortfolioManagement Industry Firm Macro-environment Competencies Dimensions The IM Framework – “The Cube”
  19. 19. ProjectManagement MarketManagement IdeaManagement PlatformManagement PortfolioManagement Industry Firm Macro-environment Levels Research dictates the need for market awareness at all levels. Competencies Levels Dimensions
  20. 20. ProjectManagement MarketManagement IdeaManagement PlatformManagement PortfolioManagement Industry Firm Macro-environment Competencies Capabilities that allow a company to produce differentiated products and services. Competencies Dimensions Levels
  21. 21. Dimensions Levers that managers can use to build repeatable, scalable organizational capabilities ProjectManagement MarketManagement IdeaManagement PlatformManagement PortfolioManagement Industry Firm Macro-environment Competencies Dimensions Levels
  22. 22. INNOVATION Can Be Managed Where do we begin ?
  23. 23. Recognizing MARKET SIGNALS How bad do you think the recession is gonna be? Will I have to trade my house for grain and move into my car?
  24. 24. Innovation management means being intensely market-driven. “Market-driven firms are, on average, 31% more profitable than self-centered firms.” 25 “The Market Driven Organization: Understanding, Attracting, and Keeping Valuable Customers” George S. Day, Wharton School, University of Pennsylvania
  25. 25. Market Awareness Signals Political, Economic, Societal, and Technological (termed P.E.S.T.) Trends Market influences informed by a set of signals Drivers Market trends matched with commercial opportunities
  26. 26. Not Planned Serendipity • Understand your position in the market • Read and bundle your market signals • Prioritize signals with greatest impact on your business EMPOWER your people to be TREND TRACKERS and OPPORTUNITY SEEKERS
  27. 27. Collecting Data Is Essential ….But the task is daunting
  28. 28. We are experiencing an information explosion 29 Volume 15 petabytes a day of new information Variety 80% of new data growth is unstructured content Velocity Every 1,000 employees $5.3 million a year is spent to find information stored on company servers. 42% of managers use wrong information at least once per week.
  29. 29. Current Approach • Buy market reports • Do it manually • Do nothing But…. • Out-of-date • Slow • Expensive • Generic So, what is the answer? Must access and manage “Big Data” The next frontier for managing innovation, gaining a competitive edge, and creating productive organizations This enables situational awareness and open collaboration across the enterprise
  30. 30. What have we learned so far? We can manage innovation We can recognize market signals We have the data SO WHAT’S NEXT?
  31. 31. INNOVATION Relies On Culture CEO
  32. 32. Culture Matters INNOVATIONis a mindset that can be taught and learned across the enterprise
  33. 33. Establish INNOVATIVE Behaviors • Being decision ready • Actively spanning boundaries • Knowing what’s on the fringe • Thinking out-of-the-office …. And guess what? new competencies will emerge
  34. 34. CULTURE WHEN IT COMES TO INNOVATION… EATS STRATEGY FOR BREAKFAST EVERY DAY
  35. 35. Now we understand the importance of culture WHERE DO WE GO from here?
  36. 36. When Market Signals Indicate Business Model Change
  37. 37. “Is THIS the line you’re telling me NOT to cross?”
  38. 38. Business Functions Must Adapt, But How? – Map drivers to business functions – Identify functions that need to adapt – Estimate resources and time needed – Prioritize business function changes - “Master” - “Partner” - “Maintain” - “Shed” Managing Disruptive Innovation http://execseries.mgt.ncsu.edu
  39. 39. This is not easy.
  40. 40. Business Model COMPLEXITY Technological advances Licensing, mergers & acquisitions New compliance requirements Global market factors Ownership of COGS R&D efficiency Competitive advancements
  41. 41. Build a bridge between existing “gaps” Current capabilities of the organization. Desired new state of a Business Function.
  42. 42. INNOVATION Management At Work SHAWN GALLAGHER, Eisai, Inc. Sr. Director Outsourcing Operations • The pharmaceutical industry is undergoing disruptive change • Eisai responded by embedding innovation across the enterprise • We started somewhere – a business function • Today we have a common language and plan • Building a culture of innovation • On the path to accessing and managing “Big Data”
  43. 43. POLL RESULTS Where do you stand? • % drive the market • % in touch with the market • % too busy and don’t have time
  44. 44. Harnessing INNOVATION • Innovation can be managed. – Taught, learned, measured, improved • Market signals must be addressed • A culture of innovation is essential • Innovation may mean business model transformation
  45. 45. INNOVATION Management: What We Know • Years of research and proven methodologies • Over 15 assessments that provide meaningful results • Managing innovation is a process you can control • Start somewhere – choose a business function Build a culture of INNOVATION everyone WINS!
  46. 46. Want More INFORMATION? Bring us your biggest business challenge. Put one of our assessments to work for you. Contact us: http://execed.mgt.ncsu.edu or 919-515-4445 Download free article on Big Data Analytics Platform Presentation available on trainingindustry.com Type in the search box: on demand Custom programs and Innovation Management Exec Series
  47. 47. Questions Dr. Richard Kouri richard_kouri@ncsu.edu Ms. Lee Clark-Sellers klclarks@ncsu.edu Mr. Paul Mugge paul_mugge@ncsu.edu Mr. Shawn Gallagher shawn_gallagher@eisai.com Contact us: http://execed.mgt.ncsu.edu or 919-515-4445ee

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