This document introduces the Innovation Health Check tool developed by Enterprise Ireland to assess innovation management capabilities in small and medium enterprises. It describes the tool's development process, which involved benchmarking and business experts, and aimed to create a simple, uncomplicated questionnaire. The tool is intended to facilitate a self-assessment by companies rather than an external evaluation. It incorporates both formal questionnaire responses and informal insights gained from facilitating discussions across different levels of a company. The document provides guidance on appropriately using the tool with both established companies and startups.

1. Introduction to the
Innovation health check tool
Colin Pope
Belfast OCT 2016

2. • Enterprise Ireland - Semi State company tasked with the
development of indigenous Irish Industry. Financial supports and
technical and business expertise provided to companies.
• Amalgamation of technical organisation and business organisations
• Long history of dealing with SMEs of all sizes.
• Host agency for EEN in Ireland
Enterprise Ireland - EEN

3. • Twenty years experience in benchmarking activities
• Enterprise Irelands Parent agencies in existence since the 1960’s
with SME focus
• In 2011 importance of innovation management recognised and the
decision was made to develop a tool specifically addressing
Innovation management capabilities.
Enterprise Ireland - EEN

4. • Development team consisting of three from the benchmarking
department, two client facing staff with innovation management
knowledge. (150 years combined experience)
• Two year development of tool and initial company pilots.
Enterprise Ireland - EEN

5. • Completion of tool coincided with introduction of KAM role by EEN and
Improve Tool presented as the only option available at that point in time.
• Offered IHC as alternative for KAM role (no licence, no charge, limited
conditions attached to its use to maintain integrity of system and
benchmarking element)
• Tool assessed and deemed suitable for use
• Tool access requested by various EEN groups
Innovation health check

6. Development of tool (aims)
• Simple uncomplicated language and questionnaire
• Appropriate for use with small SMEs and Start-ups
• Deliberate decision to avoid financial data
• Balance between formal and informal information collection
Innovation Health Check

7. COMPANY ENGAGEMENT

8. • Facilitated Self-assessment by the company (not an external
assessment by KAM)
• Diagonal CUT across company with input from all strata of staff.
NOT only a management viewpoint
• Incorporates formal response data and informal information gained
from the process
IHC – Key Crucial Principles behind tool

9. • Not an exam or a test. No right or wrong answers.
• It is a point in time snapshot of company.
• Review of innovation management and not a project review
IHC – Key Crucial Principles behind tool

10. • Remote ‘un-facilitated’ self assessment tool or facilitated tool?
• Facilitation results in acquisition of valuable information that would
not be gained in a remote approach (company dynamics,
personality conflicts etc)
• Management level or multilevel involvement?
• Multilevel involvement reduces management bias, unearths issues
management are unaware of, and stimulates in house conversation.
Comments on Innovation Assessment

11. • Application of common sense and not rocket science. This is
simply a discussion with the company to gain insight. Most KAMs
have been having these conversations for years and should not be
threatened by the KAM engagement.
• Various tools available. Tools simply add structure to the
conversation and they maximise the amount of information
transferred in the short time limit available.
Comments on Innovation Assessment

12. • The assessment is a structured conversation with the
company around the key areas influencing successful
innovation management within the company.
Comments on Innovation Assessment

13. • “Any tool is only as effective as the person using it”
• Rubbish in – Rubbish out
• The Facilitator / KAM must understand what they are trying to achieve
and should combine the formal tool (questionnaire) results with
information gained from facilitation, discussion and observation to
decide the coaching requirements.
Comments on Innovation Assessment

14. • A tick box approach / mentality will not produce effective
results.
• Flexibility in approach with very small companies is important.
KAM may need to rely more on discussion elements than
formal questionnaire approach!
Innovation Assessment

15. • More formal environment (often Hierarchical).
• Defined roles addressing all key business functions
• Formal systems or processes in place.
• Defined business model and business plan in place
• Relatively rigid environment
• Less flexible and slower response times
• Inter-department and up/down communication often
problematic. Formal decision making processes
• Silo mentality
Common Traits of Established company

16. • Chaotic and informal environment (sometimes
organised chaos).
• Undefined roles filled by inexperienced staff (eg
company comprised of technically gifted staff with no
business experience).
• Un-resourced roles and unaddressed issues
• No formal systems or processes in place.
• No business model or plan in place
• Rapidly evolving and changing environment
• Flexible responses possible / Rapid decision making
• Very good albeit informal communication
Common Traits of SME

17. • Learn to live with the chaos and gather information from
all avenues.
• Don’t just ask questions, seek justification of responses.
• Accept and understand rapidly evolving nature of SME
compared to the established company.
• Prioritise problems and address only the key issues as
the SME will probably be totally altered or have taken a
new direction within months.
• Remember development is a cyclical process(identify,
improve, repeat)
• Think “shorter term” with SME than with larger company
Facilitators mindset

18. Metric
Benchmarking
Process
Benchmarking
Best Practice
Benchmarking
(‘Diagnostic’)
Increasing
Knowledge
And Benefits
Increasing efforts/resources/costs
BenchmarkingApproaches
Innovation
Health Check

19. Process of Innovation Health Check

20. What is the Process?
Target
Innovation
Health Check
Process
The process is a virtuous circle, not unlike the Demming Model (Plan, Do, Check, Act)

21. Sample question Understanding the Business
2.04 Keeping Abreast of New Technologies / Developments in the Market
How do you make yourself aware of changing technologies within your sector? Do you look for the arrival of potentially
disruptive technologies and trends?
1 2 3 4 5
The company has established products and
markets with little focus on research.
The company uses industry support
bodies, periodicals and trade literature
to keep informed of new technologies
and developments.
The company regularly attends conferences,
industry specific seminars and networking
events. Industry experts are utilised. New
technologies are proactively sought and
evaluated.
NOTES SCORE

22. Sample question Strategy
3.06 Use of Strategic Tools in Innovation
The use of strategic tools in innovation helps companies to understand where they are positioned in the marketplace. This in
turn, helps them to identify their strategic direction.
1 2 3 4 5
Strategic tools are not used in our innovation
process.
Some of these strategic tools are used
from time to time to plan our innovation.
Tools such as SWOT, PESTLE, technology
watch systems and technology road maps are
used to plan the strategic direction of
innovation.
NOTES SCORE

23. Facilitated Workshop Process 2/2

24. Report Format
• Background information – automatic
• Summary charts – automatic
• Executive summary – to be inserted by you
• Segment scores – automatic
• Strengths – enter question number
• Focus on Improvement - enter question number

25. Final comments
• Benchmarking / Needs analysis
• Designed for SME companies
• Facilitation skills are important but can
be learned
• One on many possible tools that can be
used to achieve a result.