Toward Innovation Capability Maturity

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The seemingly ambiguous title of this presentation – use of the terms maturity and innovation in concord – signifies the imperative of every organisation within the competitive domain. Where organisational maturity and innovativeness were traditionally considered antonymous, the assimilation of these two seemingly contradictory notions is fundamental to the assurance of long-term organisational prosperity. Organisations are required, now more than ever, to grow and mature their innovation capability – rending consistent innovative outputs. The presentation describes research conducted to consolidate the principles of innovation and identify the fundamental components that constitute organisational innovation capability. The process of developing an Innovation Capability Maturity Model is discussed. A brief description is provided of the basic components of the model, followed by the case studies that were conducted to evaluate the model. The presentation concludes with a summary of the findings and potential future research.

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Toward Innovation Capability Maturity

  1. 1. H E Essmann Study Leader: Prof. Niek du Preez
  2. 2. • Complex environment • Conflicting process requirements • Conflicting/diverse competencies • Conflicting ways of thinking • High levels of uncertainty • Measuring the intangible/inconceivable • etc.
  3. 3. • Develop a framework for organisational Innovation Capability – Clarify complexities and conflicts – Identify the requirements – Describe progressive levels of capability – Enable the assessment of innovation capability – Provide basis for an improvement methodology
  4. 4. Product Innovation Incremental Radical & Innovation & Process Green Fields Operate Optimise Disruptive Continuous Innovation Innovation Improvement Competitive Strategy Enterprise Innovation Operate EFQM, CMMI, 6σ, TQM, TOC, ICMM & Innovate JIT, Lean Principles, etc. Improvement Methodology Innovate
  5. 5. • ICMM v1 Case Study findings: – Comprehensive content – Relevant representation of innovation capability maturity progression – But, assessment procedure laborious and impractical (239 detailed questions) – And improvement methodology based on assessment results still required
  6. 6. ± 650 Documents 91 Core documents 81 Critical Documents 10 Frameworks • Objective: Innovation Capability Corpus Innovativeness Constructs – Improve ability to utilise model Innovativeness Construct Corpus Analysis with CAT Mapping – Collocations expressions LDA Maintain comprehensiveness Regular Construct items Set ICMM v1 stop list & Total: 8193 Total: 3567 # topics Freq. > 30 & Freq. > 4 & IC Mapping IC relevance relevance Evaluate Manual Interpretation process LDA output Identified Filtered: Filtered: “Innovation 202 216 Core “Innovation Evaluate Capabilities” Capabilities” & topics potential gaps Categorisation Categorisation Consolidation Themes, correlations & structure ICMM v2 of Activities of innovation capabilities
  7. 7. • LDA-based topic modelling of corpus – Provide impartial perspective of the Innovation Capability landscape – Describe different themes/topics – Describe interrelations and hierarchy – Comparison with ICMM v1 & other refinement activities
  8. 8. 5. Integration, Synergy & Autonomy 3. Formalisation & Predictability 1. Ad hoc & Limited Internal External Explore & Converge Portfolio Management Innovation Process Consolidate & Exploit Innovation Capability Construct Process Control & Risk Management Discover & Absorb Knowledge & Consolidate Competency Core Competency & Technology Innovation Strategy & Leadership Structure & Infrastructure Organisational Environment & Climate Support Resources & Measurement Organisational Construct
  9. 9. • Example: IP/SO1: Scanning & exploring for latent opportunities Level 1: Level 3: Level 5: Extrapolation of past Formalised practices for Future-oriented and scanning institutional
  10. 10. 5. Integration, Synergy & Autonomy IP/SO1 L5 3. Formalisation & Predictability IP/SO1 L3 1. Ad hoc & Limited IP/SO1 Internal External L1 Explore & Converge Portfolio Management Innovation Process Consolidate & Exploit Innovation Capability Construct Process Control & Risk Management Discover & Absorb Knowledge & Consolidate Competency Core Competency & Technology Innovation Strategy & Leadership Structure & Infrastructure Organisational Environment & Climate Support Resources & Measurement Organisational Construct
  11. 11. 5. Integration, Synergy & Autonomy 3. Formalisation & Predictability 1. Ad hoc & Limited Internal External Explore & Converge Portfolio Management Innovation Process Consolidate & Exploit Innovation Capability Construct Process Control & Risk Management Discover & Absorb Knowledge & Consolidate Competency Core Competency & Technology Innovation Strategy & Leadership Structure & Infrastructure Organisational Environment & Climate Support Resources & Measurement Organisational Construct
  12. 12. • Networker • Coordinator • Builder • Anthropologist • Leader
  13. 13. 5. Integration, Synergy & Autonomy IP/SO1 L5 NETWORKER & LEADER 3. Formalisation & Predictability IP/SO1 ANTHROPOLOGIST BUILDER & L3 1. Ad hoc & Limited COORDINATOR IP/SO1 Internal External L1 Explore & Converge Portfolio Management Innovation Process Consolidate & Exploit Innovation Capability Construct Process Control & Risk Management Discover & Absorb Knowledge & Consolidate Competency Core Competency & Technology Innovation Strategy & Leadership Structure & Infrastructure Organisational Environment & Climate Support Resources & Measurement Organisational Construct
  14. 14. Gap Results Analysis workshop Analysis & Processing verification of of responses findings Evaluate Plan Development of Evaluation improvement workshop plan Project Evaluation portfolio planning workshop Improve Portfolio & project management Ad hoc  Formalise  Institutionalise “Practice and Play”
  15. 15. • Facilitated session • Questionnaire-based – General information – Role – Once-off maturity rating – 42 requirements • Workshop-type discussion after completion
  16. 16. Overall Innovation Capability Maturity Levels of aggregation Innovation Capability Areas (3) Innovation Capability and Organisational Construct Items (11 + 6) Innovation Capability Requirements (42) Other Participant-based Role-based (management, no. years, etc.) Perspectives
  17. 17. • Roles-based & aggregated normalisation Parameter Parameter Parameter Set 1 Set 2 Set 3 Capability Participants Roles Constructs Requirements
  18. 18. • 5 Case Studies – Innovation Management consultancy – Innovative insurance products – Underwriting consultants for Financial Services – Client Services of major insurance provider – Public relations and communications provider
  19. 19. Understanding the market Involving customers & suppliers in the innovation process Identifying opportunities 5 Developing concepts Scanning & exploring for latent opportunities Contextualising opportunities & concepts Testing, screening & prioritising opportunities & concepts Substantiating, implementing & exploiting opportunities Planning & coordinating the innovation portfolio Allocating resources appropriately Balancing the innovation portfolio 4 Using appropriate project management techniques Innovation Capability maturity rating Identifying and planning for key decision points Using fundamental principles to guide process & make decisions Reducing uncertainty & mitigating risk Establishing knowledge, competency & technology development & acquisition strategy Continuous research Identifying & extracting relevant information Capturing, storing & retrieving data & information 3 Managing core competency & technology Developing & acquiring the required competencies & technologies Establishing intellectual property management & sharing policy Managing intellectual property Ensuring supplier competency & technology supports requirements Managing tacit knowledge Formal & informal internal networking & collaboration Formal & informal external networking & collaboration 2 Developing & conveying innovation strategy & objectives Organisational values & policies Organisational practices & procedures Championing & encouraging innovation Investment in innovation & sourcing of capital Providing the necessary resources Infrastructure, systems & tools to support process & management requirements Developing flexible & adaptable organisational structure & infrastructure 1 Creating cross-functional & multidisciplinary teams Communication & the flow of information 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 Motivating, rewarding & celebrating success Hiring & aligning people's values & skills with organisation & task Std. dev. between respondents Measuring innovation Meta-Innovation Benchmarking innovation
  20. 20. 5 Non-consensus Communication & the flow of information Hiring & aligning people's values & skills with organisation & task Continuous research Innovation Capability maturity rating LEVERAGE 4 Managing tacit knowledge Identifying opportunities Organisational values & policies Creating cross-functional & multidisciplinary teams Understanding the market Strengths CLARIFY 3 2 Organisational practices & Weaknesses Allocating resources procedures appropriately WEAKNESSES Testing, screening & prioritising Developing & conveying innovation opportunities & concepts strategy & objectives Investment in innovation & sourcing of capital Managing intellectual property 1 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 Std. dev. between respondents
  21. 21. Role-based normalised Participant perspective perspective
  22. 22. 3.3 3.1 2.9 Weighted average maturity level 2.7 2.5 2.3 2.1 1.9 1.7 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 Difference from organisational roles profile Overall average rating Innovation Process rating Knowledge & Competency rating Organisational Support rating Original overall weighted average rating Original Innovation Process rating Original Knowledge & Competency rating Original Organisational Support rating
  23. 23. 3.5 CS2: Innovation management 3.0 consulting firm - small Overall average rating 2.5 CS3: Basic, convenient and innovative insurance products 2.0 - small CS4: Underwriting 1.5 Consultants for Financial Services - small 1.0 CS5: Insurance provider - large 0.5 CS6: Public relations and 0.0 communications - small 0.0 1.0 2.0 3.0 4.0 Once-off overall rating
  24. 24. 1.20 Std. dev. between requirements (weighted CS2: Innovation management consulting firm - small 1.00 CS3: Basic, convenient and 0.80 innovative insurance products - small ave.) 0.60 CS4: Underwriting Consultants for Financial Services - small 0.40 CS5: Insurance provider - large 0.20 CS6: Public relations and 0.00 communications - small 0 50 100 150 200 Organisation/business unit size
  25. 25. Understanding the market Involving customers & suppliers in the innovation process Identifying opportunities 5 Developing concepts 5 Scanning & exploring for latent opportunities Contextualising opportunities & concepts Testing, screening & prioritising opportunities & concepts Substantiating, implementing & exploiting opportunities Innovation Capability maturity rating Planning & coordinating the innovation portfolio Allocating resources appropriately Balancing the innovation portfolio Innovation Capability maturity rating 4 Using appropriate project management techniques 4 Identifying and planning for key decision points Using fundamental principles to guide process & make decisions Reducing uncertainty & mitigating risk Establishing knowledge, competency & technology development & acquisition strategy Continuous research Identifying & extracting relevant information Capturing, storing & retrieving data & information 3 Managing core competency & technology 3 Developing & acquiring the required competencies & technologies Establishing intellectual property management & sharing policy Managing intellectual property Ensuring supplier competency & technology supports requirements Managing tacit knowledge Formal & informal internal networking & collaboration Formal & informal external networking & collaboration 2 Developing & conveying innovation strategy & objectives 2 Organisational values & policies Organisational practices & procedures Championing & encouraging innovation Investment in innovation & sourcing of capital Providing the necessary resources Infrastructure, systems & tools to support process & management requirements Developing flexible & adaptable organisational structure & infrastructure 1 Creating cross-functional & multidisciplinary teams 1 Communication & the flow of information 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 Motivating, rewarding & celebrating success Std. dev. between respondents Hiring & aligning people's values & skills with organisation & task Measuring innovation Std. dev. between respondents Meta-Innovation Benchmarking innovation • Public Relations & Communications • Client Services of Major Insurer • 13 Employees • 160 Employees (in business unit)
  26. 26. • Model validity – Strengths and weaknesses confirmed as accurate – Respondents confident in pursuing recommendations • Identified benefits – Discussion between participants – Clarify different perspectives – Common understanding of strengths and opportunities – Relevant and prioritised plan for improvement – Achieve buy-in
  27. 27. • Qualitative vs. quantitative (mechanistic) • Future collaboration • Future research

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