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8 steps to innovation: in action
- 1. “8 steps toinnovation” in action Vinay Dabholkar, Ph.D. President, Catalign Innovation Consulting vinay@catalign.com, 99457-57913 www.catalign.com May 08, 2013 Rishikesha T. Krishnan Professor of Strategy & Corporate Policy Indian Institute of Management, Bangalore rishi@iimb.ernet.in
- 2. What “8 steps”doesn’t advocate Follow step-1 to 8 and you get a ready-to-use culture of innovation Basket of techniques Pick the one you like
- 3. “8 steps” approach& 2 questions Where do we stand? What to do next? Use one or more steps and Iterate
- 4. Where do westand? Question #1
- 5. Don’t track idea pipeline Level-1: Ad Hoc IdeaMgmt Buzz creation L&D Participation >10% 2 Level-2: Foundation (of 3 key processes) 8 steps assessment framework 1 Prototypes>10%(ideas) Response time<1month Participation>30% Incubation pipeline Review: Quarterly Level-3: Engaged (In Experiments/Reviews) 3 Idea/person/yr >1 Big idea pipeline> 10% of revenue # of sandboxes>1 Dedicated team(s) Specialists Level-4: Aligned (with strategy) 4 Success of imple- mented ideas>50% % of rev from innov >20% Level-5: High Batting Average 5
- 6. 1 How to buildan idea pipeline? 2 How to improve idea velocity? 3 How to improve batting average?
- 7. Measuring idea pipeline Small ideas Patentable ideas Newproduct ideas New business ideas ID/person/yr Patents/yr Potential biz impact / % of rev 100 ideas, $1 B each Machine tools: 100 Cr Rev, 2 Cr each idea Idea/person/yr TVS Motors: 44 Tata Motors: 22 Cognizant: 1
- 8. Measuring idea velocity ExperimentsReviewsResponse Time Ideas with champions Shell Gamechanger < 48 hr Toyota < 1month % of ideas #of exp Quarterly
- 9. Measuring batting average Successrate Biz impactSandbox Partnership Network # of active partners P&G: 15%->50% Cognizant: $550M/yr Avg response time to a challenge # of sandboxes # of technology platforms 3M: 45
- 10. Question #2 What todo next?
- 11. Build Pipeline Improvevelocity Enhance batting average What to improve?Howtosustainthechange?
- 12. The Elephant andthe Rider model Rider Elephant Effortful Effortless Slow Fast Analytical Intuitive SnoozeSet alarm Emotional
- 13. To sustain achange: Get Elephant and Rider to go together Rider: Needs direction (goal, guideline, plan, framework) Elephant: Needs motivation (passion, fun, recognition, pride) Elephant: Will follow a changed path (process change – ATM card removal)
- 14. Build Pipeline Improvevelocity Enhance batting average Howtosustainthechange? What to improve? DirecttheRider Motivatethe Elephant Shapethe Path
- 15. Situation #1: Pipeline“uninteresting” • Innovation program launched in Dec 2010 • Within a month 40 ideas came from 25 people • None of the ideas was “interesting enough” Is it an Elephant problem or a Rider problem? • A challenge book was created: 20 problems • President’s challenge was launched • 20 responses came – Many were “interesting” It is a Rider problem: Don’t know which problem to solve
- 16. Build Pipeline Improvevelocity Enhance batting average Howtosustainthechange? What to improve? DirecttheRider Motivatethe Elephant Shapethe Path Challenge Campaign (step-2)
- 17. Situation #2: Pipelinedrying up • Portal phobia – Not interested in one more log-in • Innovation council members felt portal is the only way ? Is it an Elephant problem or a Rider problem? It is an Elephant problem: resistance for one more login An experiment: Put up a challenge next to cafeteria Wow! A number of responses in a couple of days And everybody passing by is stopping by to read!
- 18. In two months,100+ ideas! Generated gossip around ideas as well Launched an “idea wall” on every floor
- 19. Build Pipeline Improvevelocity Enhance batting average Howtosustainthechange? What to improve? DirecttheRider Motivatethe Elephant Shapethe Path Idea Wall (step-1)
- 20. Situation #3: Avgresponse time high • Average response time > 4 months • Dept / Brand heads were not reviewing ideas (online) Is it an Elephant problem or a Rider problem? • Not sure… May be Elephant • Experiment: Took approver’s appointment • Took printouts of 10 ideas to him • In 15 minutes all reviews were done! • Looks like an Elephant problem! • Idea review not getting a priority
- 21. Shape the path:Review by walking around 3 Reviewers 50 ideas, 1 poster / idea Prototypes if available Idea authors in the room Review done in less than an hour! Some idea authors got opportunity to explain Outcomes: Direct implementation, PoC, Parked
- 22. Build Pipeline Improvevelocity Enhance batting average Howtosustainthechange? What to improve? DirecttheRider Motivatethe Elephant Shapethe Path Review by walking Around (step-5)
- 23. Situation #4: Lack ofcollaboration in group companies • Group Chairman felt there was possible synergy • Nothing was moving Is it an Elephant problem or a Rider problem? 100 prototypes on display in 3 months! Group Chairman visited A mini-sandbox
- 24. Build Pipeline Improvevelocity Enhance batting average Howtosustainthechange? What to improve? DirecttheRider Motivatethe Elephant Shapethe Path Sandbox + Chairman visit (step-7)
- 25. The book hasmany more options!
- 26. Build Pipeline Improvevelocity Enhance batting average Howtosustainthechange? What to improve? DirecttheRider Motivatethe Elephant Shapethe Path Pain-Wave-Waste Catalyst/Mentors Domains of action Internal role model Community of practice Emotional appeal Idea mgmt process Buzz creation L&D Low-cost High-speed Experimentation Make idea sticky Reward failures Create a Lab Champion ideas Define review checklist Effective review Internal venture fund Build a sandbox Baseline rate Last experiment first Conduct pre-mortem Affordable loss Create a platform Balance portfolio
- 27. Summary Pipeline Velocity Batting avg Direct Rider MotivateElephant Shape the Path Leve-1 to 5 Where do we stand? What to do next? Pipeline Velocity Battingavg
- 28. Thank You http://www.8stepstoinnovation.com/ Other relatedlinks: http://catalign.in/index.html 8-stps site: Vinay’s blog: Rishi’s blog: http://jugaadtoinnovation.blogspot.in/ Hope you read the book http://www.catalign.in/2013/05/using- navigation-matrix-in-innovation.html An article related to this presentation: