This document provides an agenda and overview for a two-day workshop on leading research and innovation in expert organisations. Day one will cover topics such as culture and leadership, governance models, examples from other organisations, and new ways of working supported by social media. Day two focuses on managing innovation from idea to implementation, portfolio management, reward systems, and stakeholder relationships. Examples of innovative practices from companies like IBM, Google and Lego will be presented, as well as examples from universities and open source communities. The workshop aims to provide participants with tools and examples for enhancing innovation in research centres, governments and corporations.

1. Leading Research and Innovation
in Expert Organisations
Minna Takala - QIS
October 2010
Materials Day 2

2. Leading Research and Innovation
in Expert Organisations
Focused on innovation in governments, research centres,
corporations and universities
Content Themes
• Culture and leadership supporting open innovation
• Governance models and service
• Examples of companies, institutions and open source communities
• Stakeholders and relationship management
• Managing innovation from idea to innovation
• New ways of working supported by social media
• Portfolio management and projects management
• Reward and recognition
Selected examples from
IBM, Google, Lego, P&G, Toyota, Philips & Nokia,
research and govermental institutions, universities
open source communities and social media

3. AGENDA AT A GLANCE
1st Day 2nd Day
09:00 OPENING 09:00 Opening of the day
& review of previous days results
09:15 INTRODUCTION AND KICKOFF
• Agenda review
• Introduction to facilitators & participants
• Expected outcome of the workshop
09:15 FROM IDEA TO INNOVATION
ECOSYSTEM VIEW TO INNOVATION
10:30 – Coffee break – 10.45 10:30 – Coffee break – 10.45
CULTURE & LEADERSHIP
GOVERNANCE MODELS & SERVICES
WORK GROUP SESSION
NEW WAYS OF WORKING
SUPPORTED BY SOCIAL MEDIA
12:30 – Lunch – 13:30 12:30 – Lunch – 13:30
WHAT OTHERS ARE DOING
• Examples from companies
• Examples from institutions & universities
• Examples from open source communities
PORTFOLIO MANAGEMENT &
PROJECT MANAGEMENT
REWARD & RECOGNITION
- HOW TO ENHANCE PASSION FOR INNOVATION
14:45 – Coffee break – 15:00 14:45 – Coffee break – 15:00
WORK GROUP SESSION
STAKEHOLDERS &
RELATIONSHIP MGMT
CLOSING
• Summary
• Feedback
16:00 16:00

4. Theme 4
From Ideas to Innovations
Classic traps
Idea & innovation definitions
Success or failure
Roles

5. Leading Research and Innovation
in Expert Organisations
Focused on innovation in governments, research centres,
corporations and universities
Content Themes
• Culture and leadership supporting open innovation
• Governance models and service
• Examples of companies, institutions and open source communities
• Stakeholders and relationship management
• Managing innovation from idea to innovation
• New ways of working supported by social media
• Portfolio management and projects management
• Reward and recognition
Selected examples from
IBM, Google, Lego, P&G, Toyota, Philips & Nokia,
research and govermental institutions, universities
open source communities and social media

6. Innovation: The Classic Traps
Description
Strategy
lessons
• Small or incremental innovations can lead to big profits.
• Don’t focus just on new product development. Innovations occur also in marketing,
production, finance and distribution.
• Application of “innovation pyramid” – selected portfolio – top initiatives , most of the
funding – ideas and influence can flow up and down the pyramid.
Process
lessons
• Tight controls strangle innovation. The planning, budgeting and reviews applied
to exiting businesses will squeezed the life out of an innovation effort.
• Reward practices – emergent rewarding practices are required to enhance innovation.
Structure
lessons
• Importance of interpersonal connections between innovation efforts and business
• New combinations for innovations – cross channel, cross unit etc.
• Creating innovation friendly culture for all employees (not only ivory tower “innovators”)
Skills
lessons
• Technological innovations supported by great relationship and communication skills
• Sustainable innovation teams for ideas
• Innovation connectors – people who know how to find partners internally and externally
– supported by cultures that encourage collaboration
by Rosabeth Moss Kanter , HBR, November 2006

7. Trans-
formation
(Disruptive
innovation)
Radical
Innovation
(Breakthrough
innovation)
Incremental
Innovation
(Continuous
development)
Source: Applied
from vonStamn 2000
Product Service Process Business
Model
Levels and Categories for Innovation

8. 10 Types of Innovation:
moving beyond products
Business
model
Finance
Networking
2. Networking
enterprise’s structure/
value chain
1. Business model
how the enterprise makes money
Channel
Delivery
Brand Customer
experience
10. Customer
experience
how you create an overall
experience for customers
8. Channel
how you connect your offerings
to your customers
9. Brand
how you express your offering’s
benefit to customers
Core
process
Process.
Enabling
process
3. Enabling process
assembled capabilities
4. Core process
proprietary processes that add value
6. Product system
extended system that surrounds an offering
Product
performance
Offering
Product
system
Service
7. Service
how you service your customers
5. Product performance
basic features, performance and functionality

9. Business Trends
– Expanding Scope of Innovation
Sources:
IBM CEO Study 2006 (a)
Nokia Business Outlook 2006 (b)
Kanter 2006, HBR (c)
Consumers
• Raising meaning of
enabling consumer
creativity
• Fragmentation of
consumers and markets
Operators
• Tailored applications
and devices for niche
success
• Innovative services
and features with
partners
• Focus on cost
reduction
Technology
• Value of technology realizes through
innovation visible to end users
• Fragmenting technologies
(nanotechnology & miniaturization,
multimedia capabilities …)
• Open source software extension to new
areas
• Technologies enabling value added
services
• Grass roots level innovation – ideas
from anybody
Media
• Fragmentation of
media channels, complex
hybrid of alternative
channels
• Social media
interaction and
Consumer co-creation
Mega trends
• China approach – Self
Innovation focus on Chinese
technologies
• Social webs & 3D virtual
worlds for communication
Enterprise
• Social web practices (Skype,
wikis, blogs, tags … ) & 3D
virtual worlds utilization in
corporate environment
OPEN
INNOVATION
SERVICE
INNOVATION
BUSINESS
MODEL
INNOVATION
PRODUCT
INNOVATION
PROCESS
INNOVATION

10. Systemic View to Innovation Development
Process Management
• Ideation / exploration
phase
• Implementation /
exploitation phase
Leadership
• Executive owners
• Definition of innovation –
what is the meaning of
innovation
• Vision for the future
People
• Competence development
• Reward and recognition
• Tuning Employee surveys
Stakeholder and Resources
• Co-creation practices
• Consumer insight
• Enhanced visibility
Strategy and Policy
• Innovation focus in
strategies & goals
• Clear governance
model for innovation
Business Results
Operative Review
Measurement, Analysis, and Knowledge Management
• Measures and reporting system for innovation
• Innovation Portal to enhance visibility
• Alignment Innovation / idea databases & tools when possible

11. Roles in Innovation System
• Inventors (Innovators) – are people who create
original ideas. They can be experts, lead users or just
ordinary people, with creative mind.
• Promoters - are people who actively and
intensively support innovation.
– Expert promoters know the specific area and
critical details. Is able to develop alternatives,
solve problems and test prototypes.
– Power promoters have access to resources, and
act as investors. They can influence priorities
and schedules and protect expert promoters.
– Process promoters know internal process flows
and restrictions. Is able to steers the innovation
through the process stages.
– Relationship promoters actively advances
inter-organizational exchange processes with
their good personal relationships.
• Opponents argue against market potential,
strategic fit, timing, technological aspects, side
effects, cooperation etc. Also discover risks, point
out informational needs and anticipate causes of
resistance.
• Scouts are seeking for new ideas internally and
externally through various sources.
• Gatekeepers are making decisions in various
stages of innovation process. Their ability to face the
unknown and see the future potential is essential for
the innovation process.
• Formal roles – are responsible for
implementation of innovation projects.
– Project managers
– Project team members
– Steering group members
• Semi formal / informal roles
– Innovation Catalysts - people who are
willing to volunteer to get good ideas ahead.
Members of innovation network / innovation
community of interest.
– Lead users – consumers who are first to use
– Beta testers – consumers who testing out the
first versions / prototypes, and give feedback
for further development.
– Panel members – consumers who know the
application context and evaluate the
usefulness.
• Communities, social networks
– Communities of interest / practice – people
interested in / working together with specific
themes.
– Open source communities – source of new
ideas, features and applications.
– User communities – source for new ideas and
user needs. (Also crowdsourcing)
– Ideagoras - a places / communities on the
internet where large numbers of people and/or
businesses gather to exchange ideas and
solutions.

12. Crowdsourcing
Crowdsourcing
~ tapping of the latent talent
of the on-line crowd”
Crowdsourcing turns out tasks traditionally performed by employees to the
Internet multitude. It may produce solutions from amateurs or volunteers
working in their spare time, or from small businesses which were unknown to
the initiating organization.
The difference between crowdsourcing and ordinary outsourcing is that a task
or problem is outsourced to the public, rather than another body. In
crowdsourcing the activity is initiated by a client, and the work may be
undertaken on an individual, as well as a group.
Possible benefits of crowdsourcing include:
• Problems can be explored at comparatively little cost.
• Payment is by results.
• The organization can tap a wider range of talent than might be present in its
own organization.
7
IBM Software Group
© Copyright IBM Corporation 20077
It’s all about people … and the communities in which they are
involved…
MembershipstabilityLabileStable
Degree of Geographic DistributionSame place Everywhere
Communities of InterestCommunities of Interest
Local Users GroupLocal Users Group
PeersPeersCoworkersCoworkers
Social NetworksSocial Networks
Communities of PracticeCommunities of Practice
Collaboration & How People Work

13. Possible Innovation Measures
• There are several possible measures that address innovation capability. Some of them
can embedded into business scorecards or a special set can be followed in a separate
innovation scorecard.
Financials
Customer
People
Process
Financials People
• Comparison of old and new businesses: profitability ,
revenue structure , growth
• New product /service sales / profit
• R&D investment / new generation of new products
• ROI for old and new business
• Value of patents & IPR’s
Sources: F&C data bases, IPR statistics
• Perception of innovativeness by employees
• Innovation capability: social capital , networking with
externals
• Employee job satisfaction / job rotation
• # of patents, ideas etc. submitted / implemented internally
•Experience & capability in innovations, training available
• Achieved rewards / recognitions, degrees etc. internal /external
Sources: employee surveys , pulse surveys
Customers Process
• Collaborative customer innovation
• Perception of innovativeness and potential by
customer
• Value creation for the customer with new solutions
• Image and reputation, innovation awards
• Share of new customers
• Customer satisfaction / new products
Sources: Customer satisfaction surveys, internal data
sources
• # of explorative versus traditional projects/concepts
/products
• Usage of available innovation channels – activity of
channels (internal / external usage ), output, how many new
ideas /patents/business ideas/initiatives etc.
• Performance of innovation processes
(tracking, tracing, investing, transition etc. etc. )
• Risk profile / portfolio
• Time to market , survival rate

14. How to Innovate and
Enhance Innovativeness?
There are many question that managers
ask about innovation management
• How can I use innovation to enhance my
units activities in long time run?
-> Implications to strategy creation
• How can I help my people to be more
innovative?
-> Enabling innovativeness
• What are the obstacles to innovation,
and how do I remove them?
-> Removing obstacles
• How do I / should I optimize innovation
process and how to measure it?
-> Enabling the flow – idea creation
and implementation, assessments &
measures
• How do I help everyone in my
organization participate in innovation or
can organization be too innovative??
-> Enhancing innovative organizational
culture

15. Theme 4 – From Idea to Innovation
Group Work options & Examples
Group Work
• Innovation
accelleration from idea
to reality
• What is valued &
valuable for
stakeholders?
Examples
• Philips – InnoHub
• P&G – moving focus from
internal to scouting for external
• Yle & Bambuser
• Ireland Idea Challenge
• Aalto University
• Open Ideo
• Kaipaus
• Patients Like Me

16. Theme 5
New Ways of Working
Supported by Social Media
New channels for communication,
working & learning
Examples
7
IBM Software Group
© Copyright IBM Corporation 20077
It’s all about people … and the communities in which they are
involved…
MembershipstabilityLabileStable
Degree of Geographic DistributionSame place Everywhere
Communities of InterestCommunities of Interest
Local Users GroupLocal Users Group
PeersPeersCoworkersCoworkers
Social NetworksSocial Networks
Communities of PracticeCommunities of Practice
Collaboration & How People Work

17. 17

18. 18
Do you
use
Social
Media?
Challenge !!!!!
EFQM 2009
- Quality & Web 2.0
Session in Paris

19. Examples of new ways
of working
Google Marketing
–
a business book
within 30 hour
Publishing
Revolution
by MIT & Wharton
www.wearesmarter
thanme.com

20. Otetsudai – Networks from Japan ...
Open Source SW development...
20
New approaches
to work and
to ways of working
are emerging ...
...

21. One person &
One day
A World’s
Record:
• 14 jobs /day
- Fish handler
- Dog walker
- Car watcher
- Substitute player
- Restaurant helper
- Passing out flyers
- Personal car washer
- Personal shopping
- Haircut model
- Store employee
- Gathering golf balls
• 39.6 Km
• 35 900 Yens
• ~ 220 €/day
http://lovejobs.jp/

22. Rendez –project –
Virtual working & sharing environment

23. Www.openideo.com

24. Examples of new ways of working –
at personal level
• Jeremiah Owang
– Social Media
Analyst – Forrester
• Sacha Chua
– IBM open source
developer & geek
• Luis Suarez
- IBM Social Media
Evangelist
24

25. 25

26. The 12 Principles of Web 2.0 Collaboration
Description How this can be enhanced ?
Purpose We have a shared goal or interest. -> network intent clearly defined
-> ability to discuss the intent with other members
Identity We know who’s who. -> personal social network – better access to people you already know
-> social phonebook – enabling new contacts
Reputation We recognize and build status on our actions. -> votes , tags etc.
-> social network analysis, connections and contacts made visible
Governance We agree that our behavior can be regulated
according to shared or stated values.
-> commonly agreed values (relates to purpose)
- > agreed WOW - ways of working (e.g. blog guidelines)
Communication We have ways to share information and ideas. - > possibility to easily share and search
Groups We relate to each other in smaller numbers -> core teams
-> task forces, ad hoc projects
Environment We interact in a shared space that is
appropriate to our goals.
-> virtual environment - easy access to different elements
-> context awareness
Boundaries We know who belongs and who does not. -> stakeholder roles & expectations
-> visibility to members of groups and to their roles
relates to social phonebook)
Trust We know with whom we’re dealing and that it’s
safe to do so.
-> references (social network analysis) visibility to who knows who
-> quick trust (favor for a favor)
Exchange We can trade knowledge, support, goods,
services, and ideas.
-> attitude: willingness to openly share in agreed context
Expression We have a group identity and know what other
members are doing. We can easily indicate our
preferences and opinions.
-> social phonebook (personalization)
-> information about availability, location, activities
-> voting, tags, emoticons
History We look back over our history and track our
evolution.
-> visibility to development / activities over the time

27. © 2008 Nokia V1-
Filename.ppt / YYYY-
Company Confidential 27

28. Project Wonderland
- Chemistry Department, UWI-Mona
• ... Educators are increasingly looking to
technology to support teaching and
learning. Sun's Open Source Project
Wonderland creates a virtual environment
that was originally implemented to support
business collaboration, in particular for
their own staff, where on any given day
many were telecommuting or absent from
office yet needed to actively participate in
meetings, etc.
28Sources:
http://wwwchem.uwimona.edu.jm/WL/
https://wonderland.dev.java.net/index.html

29. Theme 5 – New Ways of Working Supported
by Social Media
Group Work
• Identification of new
& meaningful
channels
• Looking into new
working styles
Examples
• IBM - support for global
communities & use of social
media - Sasha Chua
• Nokia use of social media for
employees & consumers
• Aalto Entrepreneurial Society
• Tekes Tori
• F-Secure
• Lulu Lemon

30. Theme 6
Portfolio Management &
Project Management
Varius views to portfolio
Back to basics

31. 31
General good practices in
Portfolio Management 1(4)

32. 32
General good practices in
Portfolio Management 2 (4)

33. 33
General good practices in
Portfolio Management 3(4)

34. 34
General good practices in
Portfolio Management 4(4)

35. 35
Overview of Reward & Recognition practices
Nokia
Design contests for consumers
Nokia Sphere points & prizes
TRUE ideas points & prizes Nokia Beta Labs – awards
Nokia Alpha Labs – awards
Nokia Foundation scholarships
Inventor and Designer Awards IPR Nokia Quality Awards
Innovations awards
Venture Innovation Partnership VIP
(Growth Partners)
Crowd-
sourcing
& lead-user
co-creation
Peer-
production
ExtCo
Extended
Enterprise
Idea generation Conversion & Development Diffusion
In-unit / cross-unit / external From idea to results GTM and Bring to ScaleScreening & initial
funding
Internal and external co-creation – from ”crowd-sourcing to peer-production”
Internal and external collaboration – from extended enterprise to incubation
NRC hubs
– grants for universities
Apple’s iFund, Cisco’s I-Prize
Android Developer Challenge
Facebook – prizes in developer camps & user tests
Dell’s Ideastorm
~ Hotspots: special places, special prices,
Forum Nokia PRO Awards
Nokia Foundation Award for MySQL
IBM Innovation Jam
Google’s predictive markets
SUN Virtual Wall of Fame

36. 36
Reward & Recognition practices
for enhancing innovation
One of the kind / Ad hoc practices … Special Programs … Systematic & Regular Practices
Continuous Rewarding … Rewards based on special campaigns
Regular allocation of Investment & resources … Special funds & resources
NO financial rewards … X0 000 000 € rewards
No rewards … Points systems … Tangible rewards
No celebration … hand shake … Open ceremonies, big scale events
Rewards from innovations in the field … Rewards from potential ideas
… Nominations & special roles as rewards

37. Theme 6 –
Portfolio Management & Project management
Group Work options & Examples
Group Work
• Dimension of portfolio
management – which
views are important?
• How to enhance
visibility & save time
in porfolio & project
mgmt?
Examples
• Toyota – A3 reporting practices
• Google – creating space for
experimentention
• P&G – using portfolios to
enhance external approach
• Tekes portfolio
• Finninsh Map Portal
• Safipa portfolio
• Innotiimi

38. Closing up
The next steps
• Quick wins
next week
• Sort term option
1-3 months
• Long term
1-3 years
Comments & Feedback

39. Minna Takala
www.minnatakala.com -
Twitter/@MinLii & @LinnaBikeShop
SlideShare/MinLii, Delicious/MinLii, SecondLife/ MinLii Hanson