Driving sustainable growth comes from embracing a systems perspective to our innovation activities. Because studies show that how you organize can make the difference between average performance from stand out performance. I’ve found that innovation is not an event and that businesses who create an innovation habit get better results. You will discover that How you innovate is as important as What you innovate.

1. The Growth Engine is a trading name of © System Growth Consulting Ltd 2015
Rob Munro
Principal Consultant
The Growth Engine
@RobMunro4

2. • The Top 7 Reasons for the an Innovation Performance Gap
The State of The Innovation Nation
• What it means to Companies and for Economies
Why Innovation Matters
• Key Lessons from Real World Concerns
What Can We Learn from The Great and the Good?
• Lead + Strategy + Tools + Collaborate + Culture + Governance
The 6 Keys to High Performance Innovation
• What You Can Do to Improve
Call to Action
© System Growth Consulting Ltd 2015

3. What is Innovation, Anyway? The Innovative Opportunity…
The word Innovation seems to be
everywhere and we all want it.
But there is also a lot of confusion about
what innovation is and how to do it!
We need to go deeper.
Very simply, innovation renews businesses
(and economies) and keeps them healthy
over the long term.
Recent keys findings…
» 85% of CEOs ranked innovation a
top-three concern (BCG).
» CTOs expect revenues from
innovation to double by 2020 (ADL).
» UK firms are not investing enough –
and only 31% of firms are active on
innovation (BIS).
Top innovators reap the rewards –
6mpa more for a 100mpa company.
“The OECD estimates that $1trillion is spent yearly on the creation of new knowledge.”
© System Growth Consulting Ltd 2015

4. 7 Current Issues Innovation Management
» Do you seek transformation, growth and
greater ROI? After years of the squeeze is
your new product line is running on empty?
» Do your strategies pull in different
directions, give mixed signals, or exist in
open conflict?
» How is your Innovation Culture? Does it
work for or against the organisations
mission?
» Do Innovation projects go wrong?
How are you managing risk (which
comes with the territory)? Do new
offerings fail to deliver the promise?
» Are your staff skilled with Innovation
Tools and Techniques? Write this
down – it’s an essential foundation
of great performance!
» In the era of collaboration, are your
open innovation projects delivering?
» Is creative leadership something you
do round here? It’s a key skill for the
New Leader.
Innovation can be a
risky business and
needs to be
carefully managed.
© System Growth Consulting Ltd 2015

5. • “The process for creating something new
and valuable”
• Latin, Innovare – “to make something new”
Innovation
• “The process of finding information, a place,
or an object, especially for the first time, or
the thing that is found”, (Cambridge
Dictionary)
Discovery
• “something that has never been made
before, or the process of creating something
that has never been made before”,
(Cambridge Dictionary)
Invention
Innovation is…
A high level business process
critical to the enduring existence
of a company.
Innovation Management is…
“disciplines, tools and
approaches that create new
growth and maximize the
productivity and predictability in
investments in innovation“,
Scott Anthony, CEO Innosight
© System Growth Consulting Ltd 2015

6. Type of Innovation(1) What is it? Example
Product Performance The incremental or radical improvement
of products
Johnson Matthey reducing platinum in a car
catalytic convert by 100 times (1970- date)
Product System Building “externalities” to the product:
add-ons and networks
Apple created the iPod + iTunes “ecosystem”
(2003)
Process The way in which something is
manufactured
Pilkington’s Float Glass manufacturing
technology (1950)
Service How a service is delivered or
experienced.
First Direct’s radical change to telephone-
only banking (1990)
Business (profit)
model
The way in which a company creates and
captures value
Rolls Royce Aero engines shift from only
making to service “Power-by-the-Hour”
Network Creating and harnessing massive
consumer networks
Google – “organization the world’s
information” And, Don’t be Evil.
Structure How you align your talent and your
assets
MacDonalds develop a unique and long
lasting delivery system
Channel How you connect offerings to your
customers
Dell Direct PCs cut out the middle man –
disintermediation (1990s)
Brand How you express offerings to your
customers
Virgin Group brings difference to existing
industries
Customer
Engagement
How you create an overall experience for
your customers
Harley Davison’s created a club for riders -
the “Hogs”
© System Growth Consulting Ltd 2015

7. » What is Driving Your Innovation Agenda?
» Which of the Top 7 innovation problems apply to you?
» What Types of Innovation Matter to You?
» And, could you apply other types of innovation?
» What could do superbly well and consistently to make a
dramatic difference to your innovation ROI?
© System Growth Consulting Ltd 2015

8. In 2012 we conducted research at
Manchester Business School; the
world’s largest business research
unit.
From examining the innovation
performance of leading companies,
we identified the key to higher than
average returns on innovation
investment.
THE IDEA: Innovation Performance
comes from the individual quality and
interaction of Six Key Elements of any
innovation system.
1. Innovation Strategy that aligns
activities.
2. Leadership that creates a climate
of performance.
3. Organization that makes
innovation flow.
4. Competent use of Tools &
Techniques.
5. Fruitful collaborations with
Partners.
6. Supportive Innovation Culture.
© System Growth Consulting Ltd 2015

9. © System Growth Consulting Ltd 2015
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Sales
Strategy
Organize
Lead
Tools
Partner
Culture

10. THE IDEA - Companies whose purpose and
activities are aligned outperform those
who are not.
The innovation strategy of a business is a
crucial integrating plan that harnesses
commercial, operation and development
activities.
» Strategy is not an optional extra.
» Know Where to Play, How to Play,
Why to play? And Play to Win – the
company’s Innovation Mission.
» Crucially, to guide people about
what they do every day.
» Companies need to operate for both
efficiency today and for growth
tomorrow - becoming both creative
and disciplined.
StrategyJam Today? Overcome
the tyranny of success
© System Growth Consulting Ltd 2015

11. THE IDEA: Organization structure and
routines makes innovation flow.
» Build an innovation ecosystem
» Build teams with the skills and
behaviours for Innovation.
» Be smart about Collaboration
» Build systems for creating,
retaining and disseminating
knowledge.
» Build routines for decision-
making, Project GO/KILL,
Resource deployment, strategy
refresh.
So, how can businesses
optimise organization?
© System Growth Consulting Ltd 2015
Organize
The organization helps decisions,
resources and knowledge flow
effectively; it’s both formal and informal.
Your innovation organization,
» The Board, R&D, Marketing,
Operations
» Suppliers and Customers
» RTOs, Universities
» Systems, IT, Financial
» Formal and Informal

12. THE IDEA: Leadership provides the
conditions, permission and incentives
for innovation.
We’re talking about Leadership at all
levels: industry, organization, work team,
individual and personal. And it’s the
most pressing talent management
concern for the next decade.
Above all else, Creative Leadership is the
differentiator - Jim Collins calls it Level 5
Leadership.
» Create favourable working
conditions –not only buildings but
places to interact and to think.
» Know your people – profile and
provide means to exercise the
creativity muscle.
» Change the Language: from “that
won’t work!” to “What will it
take…?”
» Break the creative jam by using
techniques to think differently
and bigger.
LeadQ: So, what can Innovation
Leaders do to tip the odds?
© System Growth Consulting Ltd 2015

13. THE IDEA: The use of innovation tools
and techniques are an essential
foundation of good innovation
performance.
Have you seen those F1 garages where
the floors are super shiny and the walls
adorned with all manner of tools on
shadow boards?
Key foundation  organizations who
actively use tools, techniques and
processes outperform those who do
not.
There are many – but you need to know
about them and use them.
» Scanning - be active in seeking to
understand the external world.
» Absorb - Interpret that knowledge
to feed your strategy.
» Create more and better ideas and
rigorously back the most
promising.
» The right kinds of collaborations
and manage them well.
» Effectively manage your resources
and projects – ROI comes from
delivering the right things, right!
ToolsQ: What can you do to
perform well?
© System Growth Consulting Ltd 2015

14. THE IDEA: We live in a world where
innovation is increasingly done through
collaborations between the best providers.
We’d better become savvy.
Henry Chesbrough popularized Open
Innovation in his 2003 book (though it’s
been around for a long time).
And it’s become a mainstream reality in
virtually all industrial sectors and in
companies of different shapes and sizes.
Companies openly innovate to
» To use facilities, access knowledge,
resources.
» To increase the speed of innovation.
» Reduce risk between partners.
» To share costs and rewards.
» Maybe, to enter new markets.
Our advice to would-be Open Innovators…
» Make a deliberate choice to become
Open.
» Invest in the unique skills to innovate,
openly.
» Create an Open Innovation
infrastructure in your company.
» Manage the changes to shift the
company to an open-style.
» Know that it needs some patience?
Test-Learn-Improve – it’ll take at least
3 years.
» Invest in your supplier and user
networks – your ecosystem.
Partner
OI is good for firms wishing
to break new ground, or
undertake radical
innovation.
© System Growth Consulting Ltd 2015

15. THE IDEA: The key job that leaders can do is
to provide a framework of incentives for
people throughout the organization.
Innovation is a fundamentally a team sport
played by people.
And, when people get together, they
develop patterns for “how we do things
round here.”
Innovation culture is the patterns, traits and
behaviours involved in how a company
innovates.
As an innovation leader, work to build the
positive and erode the negative aspects of
your company culture.
» Get the right people on board.
» Being open to & acting on new
ideas is a strong predictor of
innovation performance.
» Introduce appropriate risk-taking
» Create both a supportive and
challenging working environment.
» Systems Thinking encourages
personal mastery, team-based
learning, the creation of shared
vision and models of how the
world and your business works
within it.
CultureQ: What can you do to
perform well?
© System Growth Consulting Ltd 2015

16. » What is holding you back in achieving growth?
» Are your strategies aligned – do people know what they are doing,
every day?
» Are you effectively using the innovation tool kit?
» Is your innovation culture working for you or against you?
» Are you winning for your business when you collaborate?
» Do you have the right leadership behaviours and are you organized
for effective delivery?
© System Growth Consulting Ltd 2015

17. The Growth Engine
» Coaching, consultancy and training
» Funded Start-ups, Growth SMEs, Mid
Sized
» Commercialization, New Technology,
Strategic Change
Selected Services
» Innovation & Growth Strategy
» Opening Innovation
» New Technology Acquisition
» Technology Risk Assessment
» Innovation Audit
Contact Details
The Growth Engine is based in Manchester, UK
(W) www.systemgrowthconsulting.com
(E) rob.munro@systemgrowthconsulting.com
@RobMunro4
© System Growth Consulting Ltd 2014© System Growth Consulting Ltd 2015
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