This document provides an overview of key reasons for failure to innovate within organizations. It identifies the top ten causes of failure to innovate as: confusing the role of innovation, failing to clarify innovation goals, not recognizing innovation barriers, failing to engage the entire organization, lack of recognition of the importance of communication, underestimating the need for innovation resources, having an unclear process for selecting innovation projects, failure to create an innovation culture, and treating innovation as a destination rather than a journey. The document stresses that innovation is essential for success and provides frameworks to help organizations better foster innovation.

1. Innovate to succeed Innovate to fail Introduction to Foundations of Business Innovation September 8, 2011 It’s about balancing the risk of innovating against the risk of not innovating

3. Ten key causes of failure: Confuse the role of innovation Fail to clarify innovation goals Don’t recognize innovation barriers Fail to engage entire organization Lack of recognition of importance of communication Underestimate need for innovation resources Unclear process for selecting innovation projects Recognize the importance of change management Failure to create an innovation culture Recognize innovation is a journey not a destination

4. 1. Confuse the role of innovation Innovation is: Introduction of a new good, or a new quality of a good Introduction of a new method of production (need not need include new technologies) The opening of a new market The securing of a new source of supply The creation of a new organization Joseph Schumpeter

5. Identify Innovation Drivers Internal drivers Unexpected event Contradiction Change of work process Change in industry structure External Drivers Socio-economic changes Political changes Technology changes Drucker‘sInnovation Framework

7. Process Innovation

8. Service Innovation

9. Business model Innovation……….. Greatest opportunities seen in business model innovation. Can be applied to both private and public organizations If your organization doesn’t innovate, someone else will..

11. Process innovation involves implementation ofnew or improved production or delivery method.

13. Even where people work in manufacturing, many of these individuals providesupport services

14. Service innovation isbiggest opportunity to increase competitiveness

16. Requires specific social and technical skills

17. Involves development and new technology application

18. Costly to develop needed specialist and generalist skills

19. Requires integrated thinking and agile environment

20. Can be implemented in all service areas

22. Creating enhanced utility for the customer

23. Enabling a different pricing strategy

24. Providing alternate purchasing options

26. Improve bottom line (profit/cost effectiveness)

27. Strengthen brand/reputation

28. Improve shareholder/stakeholder perceived value "Would you tell me, please, which way I ought to go from here?""That depends a good deal on where you want to get to," said the Cat."I don’t much care where--" said Alice."Then it doesn’t matter which way you go," said the Cat."--so long as I get SOMEWHERE," Alice added as an explanation."Oh, you’re sure to do that," said the Cat, "if you only walk long enough." Lewis Carroll

29. Organic Renewal Acquisition Renewal Renewal Innovation Recognize different types of innovation Enhancement Innovation Experiential Innovation Marketing Innovation Line Extension Innovation Platform Innovation Product Innovation Harvest & Exit Disruptive Innovation Application Innovation Integration Innovation Process Innovation Value Migration Innovation Value Engineering Innovation Geoffrey Moore Dealing with Darwin

31. Management and leadership styles

32. Organizational structures and charts

33. Customer relationships and partners

34. Compensation and recruitment policies“Organizations, by their very nature are designed to promote order and routine. They are inhospitable environments for innovation” Ted Levitt

36. Has strict guidelines & control

37. Has a hierarchical structure

38. Has multiple bosses & “dotted lines”

39. Fosters attitude of “Everyone is for himself”

40. Embraces and learns from failure

41. Fosters high energy activities

42. Create a “Can do” environment

43. Develop support & trust

45. Architecting an Innovative Environment

47. Potential

49. Operations

51. Process innovations

53. Indirect

55. Process technologies

57. Distributors

59. Stimulate creativity and idea generation

60. Develop decision-making process that communicates how:

61. Decisions are made

62. Resources are allocated

63. Create a feedback loop that updates status of innovation projects and encourages accountability“The greatest barrier to communication is believing that it has occurred” Oscar Wilde

65. Many ideas are not implemented without clarity or feedback as to why not

66. Implemented ideas are not successful because of:

67. Insufficient clarity of outcomes and expectations

68. Lack of required resource commitment (money, people, time)

70. Innovation involves thedevelopment of organizational processes and procedures for generating, considering and acting on innovative ideas

72. Create innovation framework

73. Assess current resources (Business Analysis)

74. Analyze current environment and external trends

75. Source and capture innovative ideas

76. Create an innovation decision system

77. Compare each opportunity to agreed criteria

78. Implement pilot project

79. Measure performance

80. Scale up or cancelImplementing The Innovation Process

81. The Inno-Gate Innovation Process

82. Ideation Evaluation Realization Implement process in organization’s context Innovation Outputs Resources Strategy Innovation Inputs Product Innovation Service Innovation Process Innovation Business Model Innovation Employees Suppliers & Partners Customers Competitors Processes Culture Creating the environment and processes to support innovation

83. 8. Recognize the importance of change management Change through Leadership Create a Shared Need Shape a Vision Mobilize Commitment Make Change Last Monitor Progress Change Systems and Structures Change Culture from Control to Trust Communicate Incentivize ”If you always do what you always did, you will always get what you always got” Albert Einstein

85. Lead by example

86. Learn from failure

87. Make resources for innovation available

88. Encourage / incent team rather than individual performance

90. Develop a project and portfolio managementapproach to innovation

91. Create opendecision-making processes and focus on timely implementation

92. Develop cross functional teams to embrace innovation across organization

94. Common Causes of Innovation Failure Organizational Causes Process Causes Poor leadership Poor organization Poor communication Lack of empowerment of stakeholders Poor knowledge management Resource limitations Poor goal definition Poor alignments of goals and actions Poor team effort Poor monitoring of results Poor communication and access to information Inappropriate decision making

96. Monitor innovation projects and review perfromance

97. Review innovation process and identify opportunities for improvement

98. Use projects and process to build awareness

99. Review and reduce innovation constraints

101. Innovate or die

102. See You in SCS 2539 Foundations of Business Innovation Starts Monday 19th in Mississauga and Tuesday 20th in Toronto http://innovationcentre.ca/learning-centre/education-partners/ “Well, in our country," said Alice, still panting a little, "you'd generally get to somewhere else — if you run very fast for a long time, as we've been doing.” “A slow sort of country!" said the Queen. "Now, here, you see, it takes all the running you can do, to keep in the same place. If you want to get somewhere else, you must run at least twice as fast as that!” Lewis Carroll