Innovation In Government


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A presentation to the UAE 2015 Strategy conference, March 2009, on Innovation in Government

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Innovation In Government

  1. 1. Innovation in Government Challenges & Opportunities UAE 2015 Government Organizations Strategy Development Conference March 11 – Burj Al Arab – Dubai Christian De Neef Fast Track Consulting – Brussels biznessence – Brussels & Sao Paulo b biznessence e
  2. 2. Who was leading the market in “smart phones” in 1998? smart phones Then why didn’t Nokia bring the ydd o g 1st Blackberry to market? b e 2009-03-11 2 biznessence
  3. 3. Who was leading the market in “personal music players” in 2001? personal players Then why didn’t Sony develop & ydd o yd op market the iPod? b e 2009-03-11 3 biznessence
  4. 4. Who was leading the market in “stunning skylines” 25 years ago? stunning skylines Then why isn’t the Dubai s y ys u skyline located on a US Coast? b e 2009-03-11 4 biznessence
  5. 5. The Right Behavior, Mindset h h h d Vision Leadership Startup mentality Professional approach The right timing ight b e 2009-03-11 5 biznessence
  6. 6. Innovation & Government Drive/Encourage Innovative Innovation Government Hub Creating the right conditions b e 2009-03-11 6 biznessence
  7. 7. Understanding Innovation… d d Every solution to a problem has already been found/applied elsewhere! Possibly in another context, industry, or even context industry scientific discipline… Innovation is happening/can happen anywhere Organizations that are “open” to innovation will ultimately reap the benefits y p b e biznessence
  8. 8. Understanding Innovation… d d Let’s look at the “invention” of the Light Bulb! First electric light: Humphry Davy (1800) English scientist connected wires to a battery and a piece of carbon, the carbon glowed, producing light (an electric arc) Carbon paper filament: Sir Joseph Wilson Swan (1860) worked well, but burned up quickly Carbon fil Cb filament i an oxygen-free bulb: Th t in f b lb Thomas Alva Al Edison (1879) experimented with thousands of different filaments 40 hours 1500 hours! Tungsten filament: William David Coolidge (1910) lasted even longer than the older filaments… until? b e biznessence
  9. 9. Understanding Innovation… d d requires Knowledge Successful a vast amount Innovation of the right Domain Specific detailed, focused, precise , ,p Other Knowledge broad, open, and… often surprising! Is there any good reason to believe that this Knowledge would be available “in” your Gov’t organizations, rather than “outside”? y g , b e biznessence
  10. 10. Innovation Levels l Invention A new, so far inexistent scientific concept/creation “Researchling” A solution found in another discipline of science p “Borderling” A solution found IN ANOTHER sector or industry “Knowling” A solution found WITHIN the sector or industry “Actling” Actling A simple, easily found and almost standard solution… i l il f d dl tt dd l ti True Invention represents only a fraction of a % of Innovation… b e biznessence
  11. 11. Some Key Principles l Solution Driven Few tools/techniques exist that deliver solution direction, most of them only analyze problems… Customer Driven Organizations must listen to “the voice of the customer” Innovation that is not adopted, is not innovation! p , Focus on Function In-depth understanding of “function” allows us to find fundamentally different solutions, not incremental y , change, but… change of paradigm! Systems evolve towards “ideality” “function without resource” b e biznessence
  12. 12. The Innovation Paradox… h d The greater the potential of an idea, the harder it will be to find anyone willing to try (and adopt) it! Rejecting new ideas is mostly unrelated to their potential Samuel Morse vs. Alexander Graham Bell Sony's B t S ' Betamax vs. JVC's VHS JVC' So it’s not about Knowledge… Is it about Culture & Change? b e biznessence
  13. 13. “If HP only knew what HP knows, we would be much more profitable” (former CEO Lew Platt) b e 2009-03-11 13 biznessence
  14. 14. Knowledge & Innovation Levels ld l Invention “Researchling” “If we only knew what Academics & Science know…” Cross-scientific collaboration, etc. C i tifi ll b ti t “Borderling” “If we only knew what Organizations Worldwide know…” Multi-sectoral collaboration, technology databases, etc. “Knowling” “If we only knew what Our Industry knows…” Benchmarking, professional associations, certification, etc. “Actling” Actling “If we only knew what Our Organization knows…” lk h tO O i ti k ” Norms, standards, common knowledge, reuse, etc. b e biznessence
  15. 15. A New Innovation Paradigm… d Traditional Innovation The New Paradigm g Inside the organization Open and collaborative R&D is confined to a Everyone can have a specialized department brilliant new idea Patents keep ideas from Pt t k id f Ideas are shared, Id h d spreading/being applied challenged, tested Knowledge is power Knowledge is opportunity Up to recently, more than In 2005, IBM made 500 90% of Procter & Gamble’s Linux related patents 27000 patents remained available to the community unused… for free… Traditionally, organizations protected ideas that they had y, g p y developed but did not market… b e biznessence
  16. 16. A New Innovation Paradigm… d How does Open Innovation work? Networks of organizations Extended to users/clients Unique complementary capabilities Working in collaboration This requires different skills, different culture from protecting to… Sharing from isolation to Collaboration to… These are the new sources of competitive advantage! b e biznessence
  17. 17. A New Innovation Paradigm… d Why this (r)evolution? We live in an exponential world The complexity of products & services is increasing It is no longer possible to master all skills and competencies There is a new supply of low-cost high-capability labor pp y g p y New economies develop unique skills and capabilities Today’s technology is a facilitator for Collaboration The new philosophy - Winning by sharing! p py gy g b e biznessence
  18. 18. A New Innovation Paradigm… d What is Collaboration? NOT subcontracting These work for Production, NOT outsourcing not for Innovation NOT offshoring Collaboration in Innovation means… Sharing globally dispersed knowledge Acknowledging strengths and weaknesses of each partner Accessing distant capability Leveraging new capabilities Sharing risks and b Sh i ik d benefits fit Rewarding the ideas, not just the effort... b e biznessence
  19. 19. A New Innovation Paradigm… d Critical Mass More ideas - Crowdsourcing Integrated capability Influence User base Lower R&D Costs Labor Materials More/Better Collaboration Ideas Innovation Infrastructure Superior Capability Agility Skills Competencies Skill & C t i Process/Product Expertise Conversation Contextual Knowledge g Market knowledge & access b Partners and Suppliers e Local Networks Government Connections biznessence
  20. 20. Innovative Government A New Innovation Paradigm… d (P)eople Communication and motivation Recognition and rewards Managing different cultures Working in distributed teams (B)usiness (T)echnology (P)rocesses Outcomes! KM Platform An Innovation “methodology” Distributed development Distribute work - integrate Standardization – interfaces components Traceability Capture best practices (O)rganization Standardization Centralized/Distributed Management Support Structure/Team Principles & Policies Developing new competencies… b e biznessence
  21. 21. A New Innovation Paradigm… d Eli Lilly Procter & Gamble Launched Innocentive (2001) Launched InnovationNet Focus on Pharmaceutical Internal network for Innovation Industry Management Open to all scientists to Focus on P&G’s 7 500 scientists P&G s contribute (solvers) Open to 18 000 users worldwide Open to all companies to buy Cross functional, cross (seekers) organizational Functioning in a very 10 million documents online competitive landscape Focus on KM & (i t F (internal) Social l) S i l Establishes anonymous Media connections 30 000 patents searchable Focus on Crowdsourcing The Success Story Not sharing participants’ IP When searching for ways to control The S h Success S Story water hardness and improve Eli Lilly found a new way to detergent performance, P&G mass produce butanoic acid in developed a metal ion control 7 months - it might have technology it has reapplied to taken two years in their own toothpaste, calcium-enhanced fruit labs! drinks and bone strengthening bone-strengthening pharmaceuticals! b e biznessence
  22. 22. Innovative Government A New Innovation Paradigm… d US Government UK Government Unofficial “Wisdom of the “Power of Information” Crowds” sites: Taskforce Fix This, Barack “Show Us a Better Way Show Way” White House 2 Competition (2008) Etc. Focus on access to Gov’t Official site on policy making information Open to all to contribute Focus on participation Focus on Crowdsourcing No IP but a changing democracy No IP but ideas, projects The Success Story The Success Story y Initial tt I iti l attempt at participative tt ti i ti 1000’s of ideas submitted, gov’t: a discussion about 10’s prototypes funded healthcare where some of the ideas raised will be 5 projects to be implemented implemented by the new administration… d i i t ti b e biznessence
  23. 23. In a New World, New Questions arise… If we want anyone to submit ideas, how do we reach the crowd? Look for a concept: Who else is asking questions about this? - social networking, C P etc. il t ki CoP, t If “anyone” can submit ideas, how do we deal with the information overflow? Sort through the answers - Analytics (BI), Semantic Search (BI) Should we select an innovative idea, how would we compensate its author? Marketplaces (Innocentive), shared benefit, royalties In a collaborative environment, who actually “owns” the Innovation? Shared ownership = shared benefit Other models possible… b e biznessence
  24. 24. Innovative Government Promoting Open Innovation… Find the right partner(s) Must be WIN-WIN relationship in terms of capability, potential benefits, sharing risks, etc. Think PPP (public-private partnerships) Define specific (smart) objectives Open Innovation is not open-ended… Establish l E t bli h clear roles and responsibilities l d ibiliti Attract/secure the best people Manage expectations and avoid conflict Clear rules of engagement Cl l f Focus on people, not technology Know what you will do with the resulting IP Own it jointly or not? Keep, sell, or publish? b e biznessence
  25. 25. Innovative Government Being Open f Innovation… for Attract Innovation to the Promote Innovation Gov’t from the Inside Invite citizens, partners, Invite public servants entrepreneurs to submit to submit ideas ideas Reward initiative, Organize competitions innovation, entrepreneurship Promote discussion Promote discussion Social media Knowledge Transparency Management Allow the crowd to vote Communities of Practice b e biznessence
  26. 26. Innovation Hub The Innovation Marketplace h k l There is a Global Marketplace for Innovation! Today, there is more... demand from companies regions competing mobility of talent ... th than there has ever been before in history! th h b bf i hi t ! And... … every region wants to b i t t become THE Innovation Hub I ti Hb But... … getting there is more challenging than ever! b e 2009-03-11 26 biznessence
  27. 27. Innovation Hub Becoming THE Innovation Hub b Build a demand-driven system Universities should be aligned with business needs Remove hurdles Funding available (before the VCs kick in) No red tape Improve attractiveness Quality of life Availability of resources Manage your region as a Product! Create a platform for collaboration Enable consortia of academics, private research labs, consultants, gov t, industry, etc consultants gov’t industry etc. b e 2009-03-11 27 biznessence
  28. 28. Innovation Hub Becoming THE Innovation Hub b Strong institutions, clear vision Openness to global competition Incentives for new entrants Long-term support & nurturing Measurement & analysis Tolerance to f l l failure & l lessons l learned d Collaboration between clusters/neighbors Dialogue with industry and with all partners involved Quality of Life - education, healthcare & coverage, leisure, etc. Never forget - Companies do NOT Innovate People Innovate! Innovate, b e 2009-03-11 28 biznessence
  29. 29. Innovative Government Government 2.0 The conditions for change The (new) rules of the game Wide adoption of internet Authenticity technology Humaneness, not marketing messages Social media Mistakes are allowed Web 2.0 Collaboration New governance models Crowds, not gurus C d t Not top-down anymore d Community Bottom-up = grassroots A shift in values Joint success, not individually Entrepreneurship Gen X and Milennials Independence Trust and openness b e biznessence
  30. 30. Innovative Government Government 2.0 Citizens and their government will share the same community tools Citizens will have access to all their data, online Governments will poll citizens for opinion, idea, innovation! Long-term strategies should remain (vision) short-term small-scale plans will emerge (agility) Overall, participation will increase, citizens will get involved Trust will prevail control over conversations (informal) will be low, but control over information (formal/official) will be tight This is much more than just... Government on-line (push) It’s moving from Communication to Conversation! g b e biznessence
  31. 31. Innovative Government The keys to Government 2.0 hk Trust Comm Identity unity Citizen Conver Collabo sation ration Particip ation b e biznessence
  32. 32. If you want to know more… f k Christian De Neef Seasoned business consultant, project director, working at the crossroads of innovation management, knowledge management & learning organizations Former Di t at F jit Consulting (2005) F Director t Fujitsu C lti Fast Track Consulting – Brussels biznessence – Brussels & Sao Paulo b e 2009-03-11 32 biznessence
  33. 33. THANK YOU! b biznessence e 33