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BUSINESS INNOVATION
A sustainable way to create value

January, 2010
Contents


 Introduction
 Business Innovation Framework
  I.     Innovation Strategy
  II.    Business Model Innovation
  III.   Operating Model Innovation
  IV.    Innovation Management




                                                          Business Innovation Services
                                      Copyright © 2009 Capgemini. All rights reserved.   2
Introduction to Business Innovation
Introduction



                          Business Innovation
                          Over the past years, innovation has become one of the core strategic levers a company can
                          pull to improve its business performance and competitive positioning. Business Innovation
                          helps you to improve and enhance your innovation capabilities and to create value in a
                          sustainable way.
     Koen Klokgieters
        Vice President,   Being at the forefront of Innovation
    Business Innovation
                          Business Innovation is developed by our team that works daily with the frontrunners of
                          innovation to further improve or enhance their corporate capabilities in this area. We have
                          worked with clients from all types of industries enabling us to keep a broad perspective,
                          expand our thinking and cross-fertilize in the search for innovative solutions.
                          The Business Innovation area of expertise covers the full innovation value chain, ranging from
                          innovation strategy development up to the actual implementation of innovation projects.




                                                                                                                          Business Innovation Services
                                                                                                      Copyright © 2009 Capgemini. All rights reserved.   3
Contents


 Introduction
 Business Innovation Framework
  I.     Innovation Strategy
  II.    Business Model Innovation
  III.   Operating Model Innovation
  IV.    Innovation Management
 Appendix




                                                          Business Innovation Services
                                      Copyright © 2009 Capgemini. All rights reserved.   4
Business Innovation leverages your expertise in the following key areas to
develop and deploy strong innovation capabilities
Business Innovation Framework

                            Framework                                                Key Areas                                               Outcome

     A       Capability                    Client        B
                                                                I.    Innovation Strategy:
              Centric                      Centric                                                                                        THE FUTURE
                                                                      Where to allocate organizational resources for
                                                                      future return on innovation investments.                               VALUE
                               Strategy                               Identification of trends and scenarios to provide                   PROPOSITION
                                                                      direction for the long-term innovation strategy.
                                                                II.   Business Model Innovation:
                          Business Model                              A business model describes the rationale of how                     HOW IT WILL
                                                                      an organization creates, delivers, and captures
                            Innovation                                value. We help to develop effective, game-                          EARN MONEY
                                                                      changing business models.
                                                                III. Operating Model Innovation:
                         Operating Model                              Defines how an organization aligns its assets                      HOW IT COULD
                                                                      and capabilities to deliver the future value
                           Innovation                                 proposition. Detailed design of the required                       BE DELIVERED
                                                                      changes to the current organization.
                                                                IV. Innovation Management:
                                                                      To maximize the outcome of your innovation                           IMPROVED
                    Innovation Management                             efforts, proper innovation management is                            INNOVATION
                                                                      imperative; i.e. governance, processes, metrics,                    CAPABILITIES
                                                                      portfolio mgt, idea generation and enablement.



   R&D                                      Marketing & Sales

   Source: Capgemini Consulting.
                                                                                                                                              Business Innovation Services
                                                                                                                          Copyright © 2009 Capgemini. All rights reserved.   5
The innovation strategy defines where to allocate innovation resources for
future return on innovation investments
I. Innovation Strategy

                  Key Area                                                      Description


                                                                      Strategy – the intentional choice of where, how and
    A    Capability                Client         B    METHODOLOGY     when to compete. The innovation strategy is based on
          Centric
                      I.           Centric                             an assessment of the external and internal corporate
                       Strategy
                                                                       environment. It contains the desirable future state the
                                                                       company aspires to be.

                 Business Model                                       Trend analysis – Assessment of trends with different
                   Innovation                                          aggregation levels; macro, consumer, industry,
                                                                       technology, and their relevance for the current
                                                        SOLUTION       business. Based on likelihood, timing and impact the
                 Operating Model                                       trends are categorized by innovation focus areas.
                   Innovation                           ELEMENTS
                                                                      Strategic scenarios – Combining business critical
                                                                       trends and uncertainties results in multiple two-by-two
             Innovation Management                                     matrices. Description of the quadrants provides insight
                                                                       in the company’s key future opportunities and threats.


   R&D                             Marketing & Sales
                                                           KEY
                                                       REFERENCES
                                                                       Corp. Innovation Strategy   BU. Innovation Strategy     Corp. R&D Effectiveness




                                                                                                                                    Business Innovation Services
                                                                                                                Copyright © 2009 Capgemini. All rights reserved.   6
A business model describes the rationale of how an organization creates,
delivers, and captures value
II. Business Model Innovation

                    Key Area                                                     Description


                                                                         A business model can be described through nine
    A    Capability                   Client         B    METHODOLOGY     building blocks that cover the four main areas of a
          Centric                     Centric                             business: customers, offer, infrastructure, and finances.
                       Strategy
                                                                          It is like a blueprint for strategy, to be implemented
                                                                          through organizational structures, processes and
              II.                                                         systems.
                    Business Model
                      Innovation                                         As-is business model analysis – Analysis of current
                                                                          business models as a baseline for innovation.
                                                           SOLUTION      To-be business model development – Definition of new
                    Operating Model
                      Innovation                           ELEMENTS       business models that will satisfy future needs, in line
                                                                          with the strategic scenarios. Analysis of underlying
                                                                          components of the business model that will affect the
             Innovation Management                                        operating model requirements.



   R&D                                Marketing & Sales
                                                              KEY
                                                          REFERENCES
                                                                          eHealthcare Benchmark   Corp. BM Development              BM Design




                                                                                                                                 Business Innovation Services
                                                                                                             Copyright © 2009 Capgemini. All rights reserved.   7
An operating model defines how an organization aligns its assets and
capabilities to deliver the corporate strategy
III. Operating Model Innovation

                     Key Area                                                     Description


                                                                         Operating model innovation aims at translating the
    A       Capability                Client         B    METHODOLOGY     corporate strategy into a practical, high-level target
             Centric                  Centric                             operating model that can deliver the future value
                         Strategy
                                                                          proposition. It reflects the to-be ambitions coming from
                                                                          an assessment of the external dynamics and internal
                                                                          capabilities of the company.
                    Business Model
                      Innovation                                         Establish operating model requirements - Assess
                                                                          where the existing operating model is unable to deliver
         III.                                                             the future value proposition.
                                                           SOLUTION
                    Operating Model
                      Innovation                           ELEMENTS      Identify solutions – For each area of operational
                                                                          underperformance, identify solutions based on leading
                                                                          practice (top-down) and re-engineering (bottom-up).
                Innovation Management                                    Design target operating model - design a model that
                                                                          incorporates all changes and can deliver the strategy.


   R&D                                Marketing & Sales
                                                              KEY
                                                          REFERENCES
                                                                            Corp. OM Innovation   Corp. IT OM Design          Corp. IT OM Trans.




                                                                                                                                Business Innovation Services
                                                                                                            Copyright © 2009 Capgemini. All rights reserved.   8
To maximize the outcome of your innovation efforts, a solid innovation
management foundation is imperative
IV. Innovation Management

                  Key Area                                                      Description


                                                                      Management of the innovation value chain and
    A    Capability                Client         B    METHODOLOGY     provision of an innovation infrastructure. Methodology
          Centric                  Centric                             covers all essential innovation management elements.
                      Strategy
                                                                      Governance – Setting of roles & responsibility, target
                                                                       and scope, management involvement.
                 Business Model                                       Processes – Provision of time & funding, rejoice
                   Innovation
                                                                       successes, communication.
                                                                      Metrics – Performance measurement, rewarding.
                                                        SOLUTION
                 Operating Model
                   Innovation                           ELEMENTS      Portfolio management – Analysis, ranking, prioritize.
                                                                      New product development – Project management, go-
  IV.                                                                  to-market and launch.
             Innovation Management                                    Idea generation & enablement – Innovation culture,
                                                                       ecosystem, platform, methods & tools, workspaces.

   R&D                             Marketing & Sales
                                                           KEY
                                                       REFERENCES
                                                                        Innovation Partnerships   New Product Launch         New Product Launch




                                                                                                                                Business Innovation Services
                                                                                                            Copyright © 2009 Capgemini. All rights reserved.   9
Koen Klokgieters
                   Vice President – Business Innovation Consulting

                   Mob: +31 6 51 123 259
                   koen.klokgieters@capgemini.com
                   www.koenklokgieters-english.blogspot.com
                   http://www.slideshare.net/koen.klokgieters




www.capgemini.com/consulting



Capgemini Consulting is the strategy and transformation consulting brand of Capgemini Group   Copyright © 2009 Capgemini. All rights reserved.

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Business Innovation

  • 1. BUSINESS INNOVATION A sustainable way to create value January, 2010
  • 2. Contents  Introduction  Business Innovation Framework I. Innovation Strategy II. Business Model Innovation III. Operating Model Innovation IV. Innovation Management Business Innovation Services Copyright © 2009 Capgemini. All rights reserved. 2
  • 3. Introduction to Business Innovation Introduction Business Innovation Over the past years, innovation has become one of the core strategic levers a company can pull to improve its business performance and competitive positioning. Business Innovation helps you to improve and enhance your innovation capabilities and to create value in a sustainable way. Koen Klokgieters Vice President, Being at the forefront of Innovation Business Innovation Business Innovation is developed by our team that works daily with the frontrunners of innovation to further improve or enhance their corporate capabilities in this area. We have worked with clients from all types of industries enabling us to keep a broad perspective, expand our thinking and cross-fertilize in the search for innovative solutions. The Business Innovation area of expertise covers the full innovation value chain, ranging from innovation strategy development up to the actual implementation of innovation projects. Business Innovation Services Copyright © 2009 Capgemini. All rights reserved. 3
  • 4. Contents  Introduction  Business Innovation Framework I. Innovation Strategy II. Business Model Innovation III. Operating Model Innovation IV. Innovation Management  Appendix Business Innovation Services Copyright © 2009 Capgemini. All rights reserved. 4
  • 5. Business Innovation leverages your expertise in the following key areas to develop and deploy strong innovation capabilities Business Innovation Framework Framework Key Areas Outcome A Capability Client B I. Innovation Strategy: Centric Centric THE FUTURE Where to allocate organizational resources for future return on innovation investments. VALUE Strategy Identification of trends and scenarios to provide PROPOSITION direction for the long-term innovation strategy. II. Business Model Innovation: Business Model A business model describes the rationale of how HOW IT WILL an organization creates, delivers, and captures Innovation value. We help to develop effective, game- EARN MONEY changing business models. III. Operating Model Innovation: Operating Model Defines how an organization aligns its assets HOW IT COULD and capabilities to deliver the future value Innovation proposition. Detailed design of the required BE DELIVERED changes to the current organization. IV. Innovation Management: To maximize the outcome of your innovation IMPROVED Innovation Management efforts, proper innovation management is INNOVATION imperative; i.e. governance, processes, metrics, CAPABILITIES portfolio mgt, idea generation and enablement. R&D Marketing & Sales Source: Capgemini Consulting. Business Innovation Services Copyright © 2009 Capgemini. All rights reserved. 5
  • 6. The innovation strategy defines where to allocate innovation resources for future return on innovation investments I. Innovation Strategy Key Area Description  Strategy – the intentional choice of where, how and A Capability Client B METHODOLOGY when to compete. The innovation strategy is based on Centric I. Centric an assessment of the external and internal corporate Strategy environment. It contains the desirable future state the company aspires to be. Business Model  Trend analysis – Assessment of trends with different Innovation aggregation levels; macro, consumer, industry, technology, and their relevance for the current SOLUTION business. Based on likelihood, timing and impact the Operating Model trends are categorized by innovation focus areas. Innovation ELEMENTS  Strategic scenarios – Combining business critical trends and uncertainties results in multiple two-by-two Innovation Management matrices. Description of the quadrants provides insight in the company’s key future opportunities and threats. R&D Marketing & Sales KEY REFERENCES Corp. Innovation Strategy BU. Innovation Strategy Corp. R&D Effectiveness Business Innovation Services Copyright © 2009 Capgemini. All rights reserved. 6
  • 7. A business model describes the rationale of how an organization creates, delivers, and captures value II. Business Model Innovation Key Area Description  A business model can be described through nine A Capability Client B METHODOLOGY building blocks that cover the four main areas of a Centric Centric business: customers, offer, infrastructure, and finances. Strategy It is like a blueprint for strategy, to be implemented through organizational structures, processes and II. systems. Business Model Innovation  As-is business model analysis – Analysis of current business models as a baseline for innovation. SOLUTION  To-be business model development – Definition of new Operating Model Innovation ELEMENTS business models that will satisfy future needs, in line with the strategic scenarios. Analysis of underlying components of the business model that will affect the Innovation Management operating model requirements. R&D Marketing & Sales KEY REFERENCES eHealthcare Benchmark Corp. BM Development BM Design Business Innovation Services Copyright © 2009 Capgemini. All rights reserved. 7
  • 8. An operating model defines how an organization aligns its assets and capabilities to deliver the corporate strategy III. Operating Model Innovation Key Area Description  Operating model innovation aims at translating the A Capability Client B METHODOLOGY corporate strategy into a practical, high-level target Centric Centric operating model that can deliver the future value Strategy proposition. It reflects the to-be ambitions coming from an assessment of the external dynamics and internal capabilities of the company. Business Model Innovation  Establish operating model requirements - Assess where the existing operating model is unable to deliver III. the future value proposition. SOLUTION Operating Model Innovation ELEMENTS  Identify solutions – For each area of operational underperformance, identify solutions based on leading practice (top-down) and re-engineering (bottom-up). Innovation Management  Design target operating model - design a model that incorporates all changes and can deliver the strategy. R&D Marketing & Sales KEY REFERENCES Corp. OM Innovation Corp. IT OM Design Corp. IT OM Trans. Business Innovation Services Copyright © 2009 Capgemini. All rights reserved. 8
  • 9. To maximize the outcome of your innovation efforts, a solid innovation management foundation is imperative IV. Innovation Management Key Area Description  Management of the innovation value chain and A Capability Client B METHODOLOGY provision of an innovation infrastructure. Methodology Centric Centric covers all essential innovation management elements. Strategy  Governance – Setting of roles & responsibility, target and scope, management involvement. Business Model  Processes – Provision of time & funding, rejoice Innovation successes, communication.  Metrics – Performance measurement, rewarding. SOLUTION Operating Model Innovation ELEMENTS  Portfolio management – Analysis, ranking, prioritize.  New product development – Project management, go- IV. to-market and launch. Innovation Management  Idea generation & enablement – Innovation culture, ecosystem, platform, methods & tools, workspaces. R&D Marketing & Sales KEY REFERENCES Innovation Partnerships New Product Launch New Product Launch Business Innovation Services Copyright © 2009 Capgemini. All rights reserved. 9
  • 10. Koen Klokgieters Vice President – Business Innovation Consulting Mob: +31 6 51 123 259 koen.klokgieters@capgemini.com www.koenklokgieters-english.blogspot.com http://www.slideshare.net/koen.klokgieters www.capgemini.com/consulting Capgemini Consulting is the strategy and transformation consulting brand of Capgemini Group Copyright © 2009 Capgemini. All rights reserved.