Only 20% of innovation management suitable for digitalization. Find out what key success factors drive those disciplines and what tools are possible options. The case dives deeper into digital idea management (the tool shown live is viima) and InnoSurvey, a 360 degree innovation assessment built on proven metrics. Slides are from a lecture on Digital Industry (Certificate of Advanced Studies at FHNW). The lecture is min. 1 hr plus practical parts provided as preparation or exercises. Get German language support and more material here: https://www.sensaco.com/digital-innovation-management/

1. Digital Innovation Management Systems
George Fankhauser | Sensaco GmbH
8.11.2019, FHNW CAS Digital Industry

2. About me
§ Academic Research,
Education &Teaching
§ Corporate Life § Consulting & Startups

3. Agenda and Learning Objectives
§ Introduction to innovation management systems: the WHY, WHAT and HOW
§ Remember learnings from agile, design thinking and other methods
§ Principles of digitalization
§ Efficiency/automation, new insights and strategies in real-time, new business models and information products
§ Innovation process and activities
§ Directing: insights, analysis, reporting, measurement, feedback, benchmark
§ Thinking: ideation, selection, improving
§ Doing: prototyping, solving puzzles, crowd-sourcing
§ Key questions in innovation processes
§ Are there frequent, collaborative processes?
§ Is a large amount of data collected/available to be processed and analyzed?
§ Digitizing the innovation process to foster methodology and a systematic approach to each project
3W
80/20
rule

4. Principles of Digitization: Profit vs Growth
§ Pressure on prices and margins (efficiency, automation)
§ Converging global supply and demand (platforms, systems)
§ Competition from unexpected angles (start-ups and side-businesses)
§ Winner-takes-it-all dynamics (network effects)
§ Plug-and-play business models and business process elements (aggregation and gap filling)
§ Growing talent mismatches (automation vs specialists)
§ Evolving business models (delivery, digitized goods, information aggregation)
(Source and further reading: Strategic principles for competing in the digital age, McKinsey)
EfficiencyInnovation

5. Innovation System and Process
WHAT? Problem-oriented work: pains/gains,
value creation, problem discovery,
definition, shaping, re-framing, ...
HOW? Solution-oriented work:
customer & competitive advantage,
usability, feasabiulity, sustainability, ...
WHY? Strategy-oriented work: purpose, win/lose,
value creation/capture/share, competitive
positions, priorities, focus, investments, ...
1 2 3

6. Innovation System and Process
Source: Design Thinking as a methodology for solving problems:
contributions from academia to society.
January 2017
DOI: 10.18687/LACCEI2017.1.1.256
Conference: The 15th LACCEI International Multi-Conference for
Engineering, Education, and Technology: “Global Partnership for
Development and Engineering Education”

7. WHAT?
Problem-oriented work
HOW?
Solution-oriented work
WHY?
Strategy-oriented work
1 2 3
Immersion and creation, empathizing,
hands-on, interaction, testing, provoking
Crafting, testing, refining, design,
selling, supporting
Face-to-face interaction, discussion, writing and
reasoning, common-sense
Idea collection and selection, decision
support, rating, voting, crowd sourcing
Digital design (twins), hi-fi prototyping
and simulation, test automation,
project management (e.g. DevOps)
Methods, simulations, analytics, benchmarks,
surveys
80% non-
digital tasks
20% digital
tasks
4
5

8. Innovation in the Digital Age
Process
• Strategy
updates
• Dashboards
Data
• Business
intelligence
• Assessments,
surveys
Process
• Lo-Fi
Prototyping
Data
• Crowdsourcing
• Marketing
feedback
Process
• Idea selection
• Continuous
improvement
Data
• Idea collection
• IP
management
Thinking:
Doing things rightDirecting:
Do the right things
Just Doing:
Action bias
Creativity
•Design
•User insights,
empathy maps
Informal
Collaboration
•f2f meetings
•Agile / standups
Lo-to-Hi-fidelity
prototyping
•Cardboard, tape, ...
•Laboratory
approach
Formal teams
•Workshop/creative
session
•On/offsite
Customer centric
•Interview
•Shadow
•...
...
Strengths of
traditional, face-to-
face innovation
80% non-
digital
tasks
20%
digital
tasks

9. Examples: Innovation System and
Process
Mobile Ideation
«Digital CIP (KVP)» viima
Idea Clustering
Experiments: ideation360
Innovation Campaigns:
ideation360
Low-Fi Prototypes:
Marvelapp
High-Fi Prototypes
Kyub lasercut / 3D
Innovation Challenges:
innocentive
Crowd Sourcing: Aha
customer ideas
innovation360
InnoSurvey
StrategyTools
Business Model Canvas and
Kit, other method tools:
https://www.creatlr.com
Growth hacking,
AI in Marketing
Overviews,
dashboards

10. Doing3

11. Low-Fi Prototypes: Clickable Paper, Marvelapp
§ https://marvelapp.com/c18049a/screen/60216082
Draw, copy, paste screens
Define workflow
Go to user testing, get
feedback within hours

12. 3D Digital Prototyping: Printing, Cutting, Folding, ...

13. Digital Prototyping Software

14. Trying to be creative…
§ Random input words on a list vs generated online («Reizwortmethode»)

15. Thinking2

16. Digital Idea Management
WhichTools FitWhich Purpose?
§ Brainstorming and simple collaboration
§ Tools centered around methods
§ Employee feedback, engagement and surveys
§ Customer feedback
§ Idea collection in continuous improvements
§ Crowd sourcing tools
§ Related to project and product management:
roadmapping and more
§ Co-existence with intellectual property (IP)
and knowledge management
§ Related to strategic initiatives, selection and
analytics
§ Further Reading:WhyWe Need Idea
Management Systems

17. Digital Idea Management
§ Strategy and management
§ Inititatives
§ Roles
§ Idea collection
§ Intra-company
§ Crowd (customers, suppliers, ...)
§ Social collaboration
§ Likes, comments, ...
§ Idea selection
§ Scores, metrics
§ Example: viima https://app.viima.com/viima/viima/

18. viima screenshots (1)

19. viima screenshots (2)

20. Innovation Challenges & Solution Crowd Sourcing
§ Challenge description and expectation is key
§ Paper, formula, mockup, demonstrator...
§ Addresses typically “solution domain” à specific
metrics
§ “Problem definition domain” à qualitative
assessment
§ Intra-company vs public
§ Integral part of inno-projects, e.g. “pre-study”
§ Direct approach of experts, up to 80% return rate
§ Bounties
§ Money, time, exposure, career, ...
§ Example: innocentive
§ Access to 20’000 solvers, e.g. 1’600 in robotics
§ Unexpected, cross-disciplinary solutions (e.g.
bioinformatics, quantum optimizations, ...)

21. Directing1

22. Management Dashboards
§ Digitized whiteboards at project and/or
portfolio level à closed loop at business and
portfolio level
§ Live-view and accessible from anywhere à
collaborative/social
§ Method support, e.g. design thinking
§ Dashboard elements beyond innovation
§ Simple web and office technologies used, e.g.
google sheets
Business Model Canvas
The Business Model Canvas is a template
for developing a new business model or
clarifying the elements of an existing
business model. It is a “canvas” or chart
that describes a firm’s value proposition,
infrastructure, partnerships, value
proposition, customers, finances and other
strategic and operational dimensions of
the business.Learn More »
Concept Development
Concept Development is the starting point
for a business idea. It includes the type of
service or product, the target customer
demographic, and describes what is
unique about it that will give this idea a
competitive advantage. The process of
Concept Development results in a portfolio
of business concepts that can be
prioritized and then used to develop a
business plan.Learn More »
Concept Testing
Concept Testing is the process of using
surveys, interviews, or other means to test
consumer acceptance of a new product
idea prior to introducing a new product to
the market.Learn More »
Customer Problem Statements
A Customer Problem Statement is a
detailed description of an issue that needs
to be addressed by a problem-solving
team. It is written to focus the team at the
beginning, keep the team on track during
the innovation project, and to confirm that
the team delivered an appropriate solution
that addresses a real customer need at the
end of the project.Learn More »
Design Thinking
Design Thinking is a human-centered
approach to problem-solving used to
create new and innovative ideas for
business. Design Thinking includes a
mindset focused on discovering people’s
problems and challenges, and then using
those to develop practical solutions to
address them.Learn More »
Discovery Driven Planning
Discovery Driven Planning is a business
process tool that distinguishes between
traditional business planning and the
planning required for new business
ventures. Whereas traditional planning
processes focus on clear goals with
specific projections, Discovery Driven
Planning can be used for internal
corporate ventures and start-ups where
the future is highly uncertain and contains
many assumptions.Learn More »
Jobs to be Done
Jobs to be Done is best described as a
perspective through which new product
ideas can be evaluated for usefulness and
viability. Understanding your customers’
Jobs to be Done helps determine what
specific needs, pain points, or problems to
focus on during the innovation
process.Learn More »
Lean Startup
Lean Startup is a methodology for
developing new businesses and products
with the goal of shortening product
development cycles with frequent use of
prospective customer contact, learning,
and iteration. The Lean Start-up approach
is most often used by early-stage startups,
but more and more corporate ventures and
innovation teams use the approach, tools,
and templates to test and validate new
business concepts.Learn More »
Portfolio Management (Horizons
1, 2, & 3 Portfolios)
Horizons Portfolio Management
centralizes the management of all projects
across an organization and their
associated components, such as goals,
resources, staffing, timeline, and budgets.
Horizons Portfolio Management provides a
high-level overview of the business’
incremental, evolutionary, and disruptive
innovation projects and requirements,
which allows leaders to more effectively
prioritize and implement innovation
projects based on ROI, risk factors, and
strategic fit.Learn More »
Rapid Prototyping
Rapid Prototyping is a process for quickly
creating mock-ups, models, or renderings
of a product, service, process, or business
model.Learn More »
Stage Gate Innovation Pipeline
Management
The Stage Gate Process is a technique for
innovation management in which a new
initiative is divided into specific phases
separated by decision points along the
way.Learn More »
Source: https://upboard.io/innovation-management-software-platform-cloud-saas-dashboard/
Innovation Metrics Example
Manufacturing company with software solutions (9 focus metrics selected)
Sour
ce: Fank
haus
er (201
9). Base
d on the
work
of Penk
er et al. (201
6) and
surve
y of Napp
i (201
9). All data
is colle
cted
and
analy
zed
in vario
us tools
and
dash
boar
ds.
Copy
right
Sens
aco
Gmb
H, 2019
.
Innovation Horizons,
Aspects
Capabilities
Innovation process phase, product life cycle
Copyr
ight
Sensa
co GmbH
, 2019.
input
throughpu
t
output
outcom
e
Strategy
Sell bundles of machines,
accessories and
software
Accessories and
software
solutions proposed
(any relevant NPDI
metric
from DevOps or
other system
)
Products launched
with these features
Software
add
-on
sales as % of
topline
Development of strategic
options and
initatives
(H2/H3
)
Scenarios proposed
Strategic inititatives
launched
Option value of
selected initiatives
in $
Finance
Growth in H2 projects
H2 project investment in
R&D, R&I, product
management
Net Present Value (NPV)
based on prototyping
and
hypothesis in $
NPV of projects
under
development
% of sales, % of
profit of growth
projects
Margins related to H1 projects
# of continuous
improvem
ent
ideas
submitted
# of continuous
improvem
ent
ideas
tested
ROI of H1 projects
planned
Margins of H1
project portfolio
Knowledge manag
ement
Train sales and
service on
system
solutions
# of trainings provided
# of staff trained
# of sales/service
touch points with
system
solutions
(bookings
of
custom
er
training)
Technology manag
ement
Supply, platform,
custom
er engag
ement
R&D, R&I rate (% of
sales)
Tech ideas submitted
Sprints, stage gates
com
pleted
Patents filed
Projects com
pleted
Patents granted
% sales of new
ly
introduced
products
Comm
ercialisation
Brand, channel, custom
er
experience and
insights
R&I rate (% of sales)
Product / service ideas
submitted
Experiments, insight
sessions, co-creations
performed
insight to project
conversion
Collaboration
Linkages, openness, R&I
projects
% budget of external
collaboration projects
# touch points with
academ
ia, suppliers, ...
ppt-template

24. Innovation Assessment and Benchmark
§ Data-driven 360-degree assessment based on
survey and interviews
§ Relative result
§ Strategy choices
§ Organizational fit/gap
§ Innovation system, process and tools
§ Benchmark with 1000’s of peer orgs.
§ Capabilities, competence
§ Culture, leadership styles
§ Goal: find opportunities, gaps and define
change
§ ISO56002: Standards Guidance
§ Innovation-assessment with built-in “Readiness”
check
§ Standard chapters on strategy, IP, ideation,
open innovation tools and methods, and
assessment
ISO 9001 - doing
things better
ISO 56002
- do better
things

25. Innovation Framework and Assessment Structure

26. Example: CAS Digital Industry Class Results
§ Aspects
§ E.g. value capture includes all aspects of
business model innovation and its
necessary capabilities

27. Example: CAS Digital Industry Class Results
§ Innovation Roles, Personas

28. Example: CAS Digital Industry Class Results
§ Detect blind spots, strengths
§ Balance the innovation approach

29. Example: CAS Digital Industry Class Results
§ Culture mapping and innovation
horizons

30. Innovation Strategy
§ Horizon 1 focus: iterative development
(«spiral staircase»)
§ Level of experimentation (cauldron,
reactor)
§ Adjacent markets: Fertile field
§ Mergers & acquisitions
§ Moonshots, explorations

31. Innovation process
§ Overall, project selection is the hardest
part

32. Specific Benchmarks
§ Top 25% innovators from industry and
region, company size etc.

33. Drilling Down
§ Capability analyzer gives insights into
outstanding aspects

34. Example: CAS Digital Industry Class Results
§ ISO 56002 (base system) readiness
quick check
§ Not a necessity, rather a pre-requisite
§ No certifications (yet)
ISO 9001 - doing
things better
ISO 56002
- do better
things

35. Conclusion
§ Innovation management is about
execution in a structured framework of
why, what and how
§ to deliver and share additional value with
customers
§ Strategy, discovery and development
process must be coupled
§ Innovation and innovation systems will
become digital
§ For effciency gains, keeping oversight,
being quicker
§ To grasp amounts of data, models,
insights previously not possible
§ Human interaction, creativity and
communication is still the driver
§ Original strategy development
§ Discovery of unmet customer needs
§ Fine-tuned solutions, “WOW”-products
WHAT? Problem-oriented work: pains/gains,
value creation, problem discovery,
definition, shaping, re-framing, ...
HOW? Solution-oriented work:
customer & competitive advantage,
usability, feasabiulity, sustainability, ...
WHY? Strategy-oriented work: purpose, win/lose,
value creation/capture/share, competitive
positions, priorities, focus, investments, ...
3W
80/20
rule

36. Questions, Answers & Discussion

37. Backups

38. Innovation Framework and Assessment Structure
innovation360
InnoSurvey
StrategyTools
Business Model
Canvas and Kit
Method tools, creatlr

39. Horizons, simplified
Aspect Horizon 1 Horizon 2 Horizon 3
Scope Core Business Growth business Future business
Strategic
Focus
Enhance and optimize,
low-risk, sequential
execution
Expanding existing and
building new business,
probing
Explore options, radical
innovation
Innovation
Strategy
Market Reader,
Technology Drivers
(incremental)
Technology Drivers (partly
radical) and Need Seeker
(adjacent innovations)
Technology Drivers
(Radical) and Need Seeker
Leadership
Style
Step-by-step / Spiral
Staircase
Experimenter, Cauldron,
Fertile Field, Pacman
Explorer
Capabilities
ClearVision , Goal
Orientation, Core
Focus, Market Insights
Platform, Prototyping,
Speed to market, Project
Selection, Ideation
Co-Creation, Open
Innovation, Social
Science,Technology
Watch
Competencies Fully assembled To be acquired or developed Requirements uncertain
Metrics Return On Investment
Net PresentValue based on
prototyping and hypothesis
Strategic OptionValue
based on scenarios
(c)2019sensacogmbh

40. Idea Management Systems
§ Bring strategic initatives to life
§ Run challenges and campaigns
§ Involve the “crowd”
§ Support long-term improvements
§ Make facilitation a standard process
§ A basic instrument for innovation
boards
§ to kickoff campaigns
§ to select from experiments, results
§ to cluster new ideas
§ Process and software implementation
§ General criteria catalog
§ Purpose-driven selection
https://medium.com/@gfa_784/good-idea-management-systems-501a56019720
https://medium.com/@gfa_784/why-we-need-idea-management-systems-497aa73e48bc

41. Innovation Metrics Example
Manufacturing company with software solutions (9 focus metrics selected)
Source: Fankhauser (2019). Based on the work of Penker et al. (2016) and survey of Nappi (2019). All data is collected and analyzed in various tools and dashboards.
Copyright Sensaco GmbH, 2019.
Innovation Horizons,
Aspects
Capabilities
Innovation process phase, product life cycle
Copyright Sensaco GmbH, 2019.
input throughput output outcome
Strategy Sell bundles of machines,
accessories and software
Accessories and software
solutions proposed
(any relevant NPDI
metric from DevOps or
other system)
Products launched
with these features
Software add-on
sales as % of
topline
Development of strategic
options and initatives (H2/H3)
Scenarios proposed Strategic inititatives
launched
Option value of
selected initiatives
in $
Finance Growth in H2 projects H2 project investment in
R&D, R&I, product
management
Net Present Value (NPV)
based on prototyping
and hypothesis in $
NPV of projects
under
development
% of sales, % of
profit of growth
projects
Margins related to H1 projects # of continuous
improvement ideas
submitted
# of continuous
improvement ideas
tested
ROI of H1 projects
planned
Margins of H1
project portfolio
Knowledge management Train sales and service on
system solutions
# of trainings provided # of staff trained # of sales/service
touch points with
system solutions
(bookings of
customer
training)
Technology management Supply, platform,
customer engagement
R&D, R&I rate (% of
sales)
Tech ideas submitted
Sprints, stage gates
completed
Patents filed
Projects completed
Patents granted
% sales of newly
introduced
products
Commercialisation Brand, channel, customer
experience and insights
R&I rate (% of sales)
Product / service ideas
submitted
Experiments, insight
sessions, co-creations
performed
insight to project
conversion
Collaboration Linkages, openness, R&I
projects
% budget of external
collaboration projects
# touch points with
academia, suppliers, ...

42. Innovation MetricsTemplate
<< your company with ... solutions >>
Source: Fankhauser (2019). Based on the work of Penker et al. (2016) and survey of Nappi (2019). All data is collected and analyzed in various tools and dashboards.
Copyright Sensaco GmbH, 2019.
Innovation Horizons,
Aspects
Capabilities
Innovation process phase, product life cycle
Copyright Sensaco GmbH, 2019.
input throughput output outcome
Strategy, finance business model / value
capture, process
Knowledge management learning capabilities, rewards,
document, show & tell
Culture, team management Organizational KPIs, HR
Portfolio management Products, services, value
proposition
Technology management Supply, platform,
customer engagement
Commercialisation Brand, channel, customer
experience and insights
Collaboration Linkages, openness, R&I
projects

43. ISO56000
§ Guidance document to be
released spring/mid-2019
§ Developed byTC279
“Innovation
Management”, 43
members, 16 observers,
§ National representatives,
e.g. SNV in Switzerland,
ANSI in United States
§ Partly based on CEN/TS
16555-1:2013 - Innovation
Management, integrates
in ISO9001/14001
§ Innovation Assessment
§ Technical report ISO/TR
56004, Innovation
Management
Assessment – Guidance
§ Open Innovation
§ ISO 56003, Innovation
management –Tools and
methods for innovation
partnership – Guidance
§ 56000/56002: Base system
§ 56005: Strategic intelligence
§ 56006: IP management
§ 56007: Idea management
https://www.iso.org/search.html?q=56000
Alice de Casanove, Chair of the ISO TC: “Innovation is not just ‘big inventions’, it is the capability
of an organization to detect and respond to changing conditions in its environment, to respond
to new opportunities and to make the most of the resources it already has...”.
CEN/TS relying on stage-gate ISO 9001 - doing
things better
ISO 56002
- do better
things