Incubating Innovation in the Enterprise


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A keynote talk that I gave to the Boston Chapter of the Society of Information Management.

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Incubating Innovation in the Enterprise

  1. 1. Incubating Innovation in the Enterprise: Harnessing Mindlessness and Mindfulness Larry Gioia, Director PwC IT Strategy & Enterprise Architecture Boston SIM March Monthly Meeting March 22, 2013 Cafe Escadrille Burlington, MA 7:00pm-8:00pm
  2. 2. The Candle Problem
  3. 3. The new age of innovation … • Innovation should extend throughout the enterprise – not limited to R&D, innovation should be part of everyone’s DNA • The challenge is enabling people to step outside their mindless jobs (e.g., functional fixedness) to engage in mindful innovation • Everyone can become more innovative if provided with the right leadership, tools, and support • Incubators provide an effective structure and process to harness creativity and drive mindful innovation Innovation is value-creating novelty; the creation and delivery of new value for customers, consumers, and the company
  4. 4. The rate of change continues to accelerate … Source:
  5. 5. Change advances at a double exponential rate We won’t experience 100 years of progress in the 21st century — it will be more like 20,000 years of progress (at today’s rate). – Ray Kurzweil Source: The Singularity is Near, Ray Kurzweil
  6. 6. The magnitude of this change is overwhelming Source:
  7. 7. Are you playing to win or playing not to lose? Play Not to Lose (Defensive) Protect and Maintain Learn and Prove Build High- Potential Brands Build New Growth Platforms/ Business Models Manage for Margin Play to Win (Offensive)
  8. 8. What’s your flavor of innovation? Process Service Product Business Model I IIncremental Radical • Typically focused around improving what is existing • Less disruptive • More “defensive” in nature • Typically focused around invention and creation • Higher potential for disruption • More “offensive” in nature
  9. 9. How can we measure the potential disruption? Cost Confidence Convenience Compensation C4 Innovation
  10. 10. Cost Genomics and the resulting disruption … Confidence Convenience CompensationSource: The Economist Source: Oxford Nanopore Source:` Source: Oxford Genomic Health
  11. 11. Mobility and the resulting disruption … Convenience Confidence Cost Compensation Source: http://www.huffingtonpos att-tmobile-debate- Source: The Economist Source: PwC analysis
  12. 12. Mindfulness vs. Mindlessness Exploiting today Organized Stability Incremental improvement Efficient 9.99999 success Predictable Hierarchical Exploring tomorrow Chaotic Change Radical invention Wasteful 10:3:1 failure Plausible Organic Mindlessness Mindfulness
  13. 13. 13 Mindfulness Mindlessness Source: PwC The paradox of mindfulness and mindlessness
  14. 14. Should all innovation be treated equally? Those who are leading the innovation game acknowledge that not all innovation is created equal and have adopted different op models Innovation Operational Model Incremental Innovation (2-5 years out) Radical (Disruptive) Innovation (5+ years out) Idea Generation Channels and Markets
  15. 15. Idea Generation Idea Management Execution Source Ideas Build on Ideas Record / Document Ideas Capture Ideas Evaluate Ideas Channel Ideas Experimentation Prototype Pilot Roll out / Commercialization StepsBuildingBlocks Required Tools: Learnings Capture, Communications, Documentation / Record Keeping Culture: Incentives / Rewards, Marketing Campaigns, Visible Leadership Support Support: Training on Processes / Available Resources, Clear Guidelines, Coaching / Mentoring, Funding Governance and Oversight: Roles / Responsibilities Development Filter Ideas With some common plumbing … Source: PwC Innovation Benchmarking Analysis
  16. 16. Incubators are a popular method to begin the innovation journey … Data mining Partner collaboration Innovation networks Innovation tournaments Rapid prototyping Breakthrough innovations Deep customer insights Constraint-based innovation New boundary conditions Early acquisition Companies Began Experimenting With Find New Ways to Grow Stage Gate Product Development Stage Gate Product Development Open Innovation Incubators Corporate Venture Capital Co- Creation Reverse Innovation Design Thinking Innovation generally requires and may draw from a mixture of operating models: A Number of New Operating Models Have Emerged … Frugal Innovation
  17. 17. A Case Study: How a Large Global Pharma is Incubating Innovation Shifting the cultural mindset away from the traditional (mindless) IT and focusing on understanding the potential for disruption and determining where to “place bets”
  18. 18. Building the Foundation … 1 IT Leadership Champions 2 Assimilation of Disruptive Ideas 3 Global Candidate Application Process 4 Selected Teams and Aligned to Topics 5 Lite-weight Innovation Orchestration Team 6 External Advisory Panel
  19. 19. A few final design considerations … 1. Show traceability of your innovation efforts to overall strategy 2. Get the right employees and partners engaged 3. Promote frequent interactions of disparate groups 4. Invest in the fundamental plumbing 5. Incubation requires dedicated staff – no “stretch” assignments 6. Have a bias towards a lean corporate innovation team 7. Create separate structures that support each innovation type 8. Identify champions and customers in the business 9. Learn how to run your businesses ambidextrously 10.Foster innovation as a discipline in your organization TacticalStrategic
  20. 20. Let’s Continue the Conversation … Larry Gioia Director PwC IT Strategy & Enterprise Architecture 412.916.9960