This document summarizes a presentation by Michael de Paauw of Gartner on how to get innovation started in an organization. It discusses establishing an innovation culture with executive support, generating ideas, evaluating ideas, and developing the most promising ideas into innovations. It also covers organizing for innovation through teams and offices, and using tools to support the innovation process and track metrics. The key challenges addressed are setting the stage for innovation, organizing innovation in an existing business, and tools to support the process.

1. InnovationHow to get the ball rolling? Zeist, 18 February 2010 Michael de Paauw Gartner Executive Programs Module Technology Management Leergang 2009-2011, Kerndocent Dick Pouw MBA

2. Agenda Introduction 15 min Presentation 60 min Dinner 90 min Presentation 60 min Break 15 min Q&A – discussions 45 min About Gartner Gartner, Inc. is the world's leading information technology research and advisory company. We deliver the technology-related insights necessary for our clients to make the right decisions, every day. Research – Events – Consulting – Executive Programs

3. Today’s guest-speaker from Gartner: Michael De Paauw is an executive partner in Gartner Executive Programs and has an extensive background in IT. He is a coach and confidant to more than 35 CIOs in various industries (finance, professional services and higher education et cetera). His research focus is on innovation, emerging trends and technologies and the high-performance workplace. Mr. De Paauw has been working in the IT industry for more than 20 years, both nationally and internationally. Before joining Gartner, he was in the board of several IT companies, including Pearson VUE (Virtual University Enterprises), CompuTrain and Kender Thijssen. Earlier, he worked as the European IT director of the Bastion Hotels chain. He started his IT career with Apple. Mr. De Paauw holds a bachelor’s degree in Business Administration from H.H.M. University Publications, a.o.: Creating an anytime, anyplace communications platform with familiar existing technologies (MOD) Going Wireless with Existing PBXs Subject-Matter Expertise: Emerging technologies and innovation Enterprise architecture Governance Leadership Organizational models Sourcing Strategy

4. Innovation – A definition The successful realization of novel ideas that create value for an organization, its business and economic environment, and its stakeholders — employees, customers or constituents, and suppliers or business partners. Incremental Step change change

5. Dimensions of Innovation Innovation > R&D Product and/or Services Marketing & Sales Customers Operational Processes Strategy (Business Model) Managerial approaches Partnerships Suppliers 88

6. Despite economic slowdown Innovation remains in top 3 business priorities

7. The Bottleneck is at the Top of the Bottle

8. Key Issues How to set the stage for Innovation? How to organize Innovation in a running business? What tooling is available to support Innovation?

9. Where does innovation come from? Onder druk wordt alles vloeibaar “Necessity is the mother of invention” [Plato] “Invention arises from idleness” [Agatha Christie] Crisis forces you to make choices that you probably wouldn't have made otherwise. Extreme Stress Employees are expected to spend 20% of their time on innovation. Creativity features strongly in the recruiting process

10. Emulating Stress (+/-) to create a Sense of Urgency Instigate internal competition Set high (innovation) targets Award attractive incentives Individually assign innovation targets (and time) ‘Enemy at the gates’ Positively

11. Developing a culture of innovation Executive support of innovation is visible in talk, action and strategy. People at every level are willing to take risks. Managers and leaders reward risk taking and willingness to innovate. Managers and their teams are attentive to continuous innovation and improvement of processes and products (even if these processes and products are successful). People collaborate and cooperate with a sense of urgency to develop and implement innovations. Practices Actions speak louder than words.

13. Analyze or evaluate information and make viable, fast decisions

14. Develop and share ideasManagement Commitment:Important, influential people lead and manage innovation. They are committed to and accountable for making it work. Rewards:Creative thinking skills are developed and valued. Great ideas are encouraged, evaluated, funded and rewarded. Building on the ideas of others is rewarded.

15. Choose an Innovation Strategy that matches your competitive or organizational stance The degree to which idea generation is a core competency The willingness to fund and commit to pioneering innovation The adequacy of funding for innovation is within the boundaries of the organization's risk profile The organization's degree of influence or position in the industry or marketplace Most common 4 2 3 1

16. Focus Innovation on the Business: Five most common triggers Immediate business problems Disruptive Business Trends Value Discipline Persistent business needs Core competencies

17. Assess the Leadership Factors of the Innovation Culture 360º

18. Key Issues How to set the stage for Innovation? How to organize Innovation in a running business? What tooling is available to support Innovation?

19. Innovation process stages are not discrete nor sequential... ...but for the sake of this discussion

20. Process model for Innovation Recognition and Learning Generate Ideas Evaluate and Select Develop and Implement Access to information and ideas and innovations of others; Support collaboration and communities; Tap into ALL idea channels — employees, customers, partners and Idea Market Places; Keep bureaucracy low and assign inspirational leadership to the idea generation process; Use idea management technology to track, organize and administer ideas; Create the right environment and atmosphere for creativity. Set the Stage

21. Process model for Innovation Recognition and Learning Generate Ideas Evaluate and Select Develop and Implement Two types of evaluation tools: early-stage evaluation Quick analysis [Good/Promising/Bad] Build on/out [Improve/Backlog/Eliminate] Image Revenue Risk Market Share Scale Wallet Share Margin Set the Stage

22. Process model for Innovation Recognition and Learning Generate Ideas Evaluate and Select Develop and Implement Two types of evaluation tools: early-stage evaluation late-stage portfolio evaluation Score against objectives Score relative in portfolio Set the Stage

23. Process model for Innovation Recognition and Learning Generate Ideas Evaluate and Select Develop and Implement Development transforms ideas into innovations; Skilled project management is vital for success; A sense of urgency is critical; Innovation team hands over to project team. Set the Stage

24. Process model for Innovation Recognition and Learning Generate Ideas Evaluate and Select Develop and Implement Rewarding creator/initiator and contributors sends several messages: Efforts are appreciated and recognized; Creativity is important to the organization and its future; The organization is willing to share the value achieved with those who contributed.  Reward / recognition should be proportional to the value realized Continual learning and adapting is critical to sustained innovation. Set the Stage

25. Metrics to track, measure and understand the innovation program's performance Examples of Activity Metrics Idea flows (counts and trends): • Number of ideas proposed • Percent of ideas evaluated • Percent of ideas accepted for further development • Percent of ideas relevant to innovation focus • Aggressiveness: Percent of approved ideas funded vs. not yet funded • Responsiveness: Average time from submission to implementation Balance of idea portfolio: • Percent of incremental change vs. step change ("game changers“) • Percent of process vs. product or service • Percent of high-risk ideas vs. technically feasible ideas Sources of ideas: • Percent of business-initiated ideas • Percent of IT-initiated ideas • Percent of ideas from internal collaboration • Percent of ideas sourced externally Examples of Behavioral Metrics Behavior metrics: • Participants' overall rating of the behavior cycle (well-defined, usable, reliable) • Percent of team members contributing in all behaviors • Percent of teams participating in metrics usage • Percent of ideas improved through the behavior cycle • Percent of ideas rejected in the challenge phase Idea success metrics: • Percent of ideas surviving the challenge stage • Percent of ideas selected • Transition time from selection phase to cooperation phase • Percent of ideas discontinued after selection • Time to cooperation stage for ideas (by type or size)

26. Organize to Accomplish Innovation Incubator iOffice iTeam iTeam iTeam

27. Organize to Accomplish Innovation iTeam = Small, Focused Teams Are more committed, persistent and cooperative (nature of teams) Get past obstacles easier (usually more challenging and collaborative) Absorb some risk earlier and keep moving Continual testing, adaptation Faster decisions and less overhead Work "under the radar" more than a cross-organization team iOffice = Cross-Organizational Teams Manage an innovation portfolio view More nay-sayers to deal with because the team is organization-wide and visible More decision processes due to diversity and cross-organization ideas Actions under more scrutiny because team responsibility is centralized Incubator = Advance team Able to work outside day-to-day operations Less commitment by current operation managers, so acceptance will present obstacles Trust issues may be aggravated by an incubator; jealousy, territorialism, perception of elitists Individual innovators Suited for researching early-stage innovations, specific technology or project issues

29. Listens

30. Seeks to understand

31. Analyzes deeply

33. Think deeply and outside the box

34. Able to accept and process criticism

35. Someone owns and is responsible for project.

36. Others ease the way, provide resources & communicate what we're doing and why.Generate Ideas Evaluate/Select Develop/Implement Innovation Teaming: Match Behaviors to Activities

37. Characteristics Maturity Level The organization has an ongoing strategy for sustaining innovation processes and managing intellectual capital assets A budget and permanent resources are in place Innovation is integrated into core business processes Innovation is integrated into business strategy in key functions Innovation is supported with experts and best practices Business value tracking and performance monitoring are in place Corporate-level strategy defined and has executive support Standards defined for metrics and business case Organizational structure, funding and governance confirmed Initial successes can be duplicated in other functions Governance, processes and standards remain local Funding by project and with local approval Innovation opportunity is recognized but not broadly communicated Innovation emerges in pockets without standard processes or common infrastructure 5 5. Optimized Innovation Management Process 4. Managed Innovation Creates Discipline 3. Defined Innovation Standardizes Success 2. Repeatable Innovation Builds the Competency 1. Initial Innovation Emerges 4 Value 3 2 1 Innovation Process Maturity Model

38. Key Issues How to set the stage for Innovation? How to organize Innovation in a running business? What tooling is available to support Innovation?

39. Innovation Tooling

40. Ideation Application Options New Product Development Product Life Cycle Management Open Innovation Networks InnoCentive Invention Machine YourEncore General Ideas yet2.com NineSigma Tools Orientation Fellowforce Portfolio Analysis Sopheon Oracle SAP Idea Management SmartOrg Spigit Idea Champions BrainBank BrightIdea MindMatters Imaginatik General-Purpose Internal Tools Usage External

42. Focus on all dimensions of innovation;

43. Cultivator: Build out/on ideas;

44. Evaluate both evolution ideas and revolution ideas;

45. Dot on the horizon: Constantly on the lookout for changes.

46. Leadership fails to set the stage for the need to change;

47. Limit efforts to R&D (new Products & Services);

48. Gunslinger: settle on the first good idea;

49. Neglect new opportunities by selecting evolution ideas only;

51. Gartner Reading list Managing Innovation: A Primer Kathy Harris, Carol Rozwell, David Flint, Marc Halpern, Richard G. Harris - G00165374 Eight Ways IT Can Support Business Innovation Kathy Harris, Barbara Gomolski - G00146415 Q&A for 'How Do I Drive Innovation and Get My Real Work Done?' Susan Landry, Kathy Harris - G00155947 The Innovation Culture: Definition and Critical Success Factors Kathy Harris - G00156182 Five Pitfalls of Ideation and Best Practices for Avoiding Them Carol Rozwell - G00156071 Innovation and Idea Management: Make These Decisions First Kathy Harris - G00164929 Innovation in Government: What It Is, What It Takes to Succeed Richard G. Harris - G00154027

52. Gartner Hype Cycle for Contact Center Infrastructure, 2009 I = T

53. Gartner MQ for CC Infrastructure, Worldwide 2010

54. Blue Ocean™ Strategy: What is a Red Ocean? A market in which the competition have nothing left to compete on other than PRICE Examples –Telephony (Voice Services) –Air Travel –Managed Services What is a Blue Ocean? A competitive strategy in which the competition is made irrelevant (or much less relevant) through an approach that pursues differentiation AND low‐cost to open a previously un‐tapped or under‐served market Navigate to BIG Blue Oceans

55. The Four Actions Framework Reception Reservations dpt Parking Wasted space Living room Pre-config room Design interior Free wifi/video Blue Ocean™ Strategy:

57. Business Model Innovation – 4 AREAS

58. Business Model Innovation – 9 BLOCKS

59. Business Model Innovation – CANVAS

60. Taking the NO Out of InNOvation

61. Taking the NO Out of InNOvation (Mike Brown) Eight perspectives and approaches to enhance innovativeness in you and your team through being: Introspective – understanding your creative strengths Diverse – building a creative team with complementary strengths Forgetful – refreshing your perspective A Borrower – putting a twist on existing ideas Open to Possibilities – finding new ways to look at business and life situations Inquisitive – collecting and using great questions to see situations in new ways A Creator – prioritizing possibilities and getting started bringing them to fruition Persistent – tenaciously pursuing possibilities

62. Please share you opinion: www.surveymonkey.com/s/philipsebusinessschool Survey open ‘till Friday EOB

63. InnovationHow to get the ball rolling? Zeist, 18 February 2010 Michael.dePaauw@Gartner.com Gartner Executive Programs Module Technology Management