The Leading Authority on Innovation Management. A Framework to manage Innovation Paul Mugge, Michelle Grainger

1. A Global, Virtual, Industry-University Research Center,
Located at NC State University
1
The Center for Innovation
Management Studies
(CIMS)
The Leading Authority on
Innovation Management

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CIMS Mission =
Industry Solutions
•Research business
problems
•Convert findings:
 Processes
 Tools
 Information
Assist firms who are in
need of improving their
capacity to manage
innovation
•Listen to companies
APPROACH
Is your company’s growth
propelled by INNOVATION?
 INNOVATION IS EMBRACED BEYOND R&D.
 INNOVATION IS MANAGED ACROSSED ALL
FUNCTIONS.
 INNOVATION IS TAUGHT AT ALL LEVELS.
 INNOVATION IS MEASURED ON A REGULAR
BASIS.
The leading authority on innovation management.
The Center for Innovation Management
Studies (CIMS) is the nation's leading
authority for innovation management. Over
31+ years of research and proven tools for
how innovation can be learned, managed
and measured in your company.
See why some of the largest companies in
the world are CIMS members.
How does your company measure up?
Find out be contacting CIMS to take the
FREE assessment.
On the web: cims.ncsu.edu
Call us: 919.513.0166
By email: mgrainger@ncsu.edu

3. A Framework to
Manage Innovation
(A Quick Review – For More Information, see CIMS – ISSIP
Webinar from September 16th)
CIMS Innovation
Management Framework
“The Cube”

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NEWS FLASH: Innovation Can Be…
Some feel ‘Innovation’ is just an
idea and that it cannot actually
be achieved, but is rather a
stroke of luck.
Stated differently,
‘It’s a pie in the sky ideal…’
Taught Learned
Practiced Measured
And…

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Innovation
can be
Managed!
But Managing innovation isn’t easy, it takes work and
dedication and a fundamental understanding of
what it is that one is managing.

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Enter the CIMS IM Framework
Management Dimensions:
• Strategy
• Organization & Culture
• Process
• Techniques & Tools
• Metrics
Core Competences:
• Idea Management
• Market Management
• Portfolio Management
• Platform Management
• Project Management
Levels:
• Firm
• Industry
• Macro-environment
Levels: Areas which innovation takes place. CIMS primary research focus has
historically been at the ‘Firm’ Level.
Core Competences: Competences are NOT processes. They are the basic
capabilities of innovation. It is management’s job to ensure an organization
learn and master each of these.
Management Dimensions: Management activities required to build strong,
durable innovation management capabilities. Each dimension cross-cuts
each IM Competence.
Note: Competences & Dimensions, when considered holistically, provide a
complete and integrated system for helping organizations get results. Improve
and Manage their Innovation.

7. The IMMA
Innovation Management
Maturity Assessment
From the Foundation of the “Cube”,
a Capability Maturity Model
was Developed

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Quick Facts: CIMS IMMA
• Provides an education of ‘What is Innovation Management’, enables firm’s
innovation strategy to be communicated and shared across entire
organization
• Multiple CIMS members are committed to an annual review using the IMMA
• IMMA is available to and has been used by non-members for a fee
• Initial results provided via graphical heat map display
• Participation To date:
 70+ firms & divisions with global representation
 10,000+ individual responses captured
 Both general and industry-sector customized tool versions available
 Robust demographic capabilities
 Delivered in numerous languages

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Maturity Models Defined
• A maturity model can be viewed as a set of structured levels that
describe how well the behaviors, practices and processes of an
organization can reliably and sustainably produce required outcomes.
OR
• A maturity model can be used as a benchmark for comparison and as
an aid to understanding.
In the case of the CMM, for example, the basis for comparison would be the organizations' software
development processes.
For additional information: http://en.wikipedia.org/wiki/Capability_Maturity_Model#Overview

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Maturity Model Definitions
Level 1
Ad Hoc
Level 2
Defined
Level 3
Managed
Level 4
Leveraged
Level 5
Optimized
Represents the initial state. This results from organizations having no concerted focus on innovation
When the organization makes innovation a strategic imperative and resources are dedicated
to improving the firm’s practice of innovation management
When managers’ actions reinforce the desired new behavior and their goal is to
institutionalize the new innovation business model
When synergies occur. The company seeks the input of people and
ideas outside the boundary of the firm
When the new innovation model is fully internalized;
business results are repeatable and predictable
*Based on Carnegie Mellon Maturity Model
Five levels of maturity separate ‘Ad
hoc’ companies from those that are
‘Optimized’:

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Ad Hoc
• Ideas about new breakthrough products and services is thought to be the domain of R&D. When employees are encouraged to submit their
ideas, they often do not receive relief from their ‘day jobs’ to pursue them.
• Project ‘champions’ are often required to persevere and drive promising ideas to commercialization.
• Employees may be cynical and question the importance management places on innovation.
Defined
• The R&D portfolio is segmented into ‘Phases’ (e.g. Opportunity field and business cases) to ensure adequate investments and talents, are
allocated to the early identification and maturation of new, promising technologies.
• Ideas are sought that address the full range of strategic issues, such as sustainability, services and solutions, etc.
• Employees are presented with idea generation tools and encouraged to formally submit ideas.
Managed
• Management presides over the organization’s ‘innovation board’ (e.g. IM Team, Portfolio Team, Steering Committee); new ideas are
systematically reviewed and employees provided ‘space’ (time and resources) to develop their ideas (before entering the formal project
development process).
• Cross-functional project teams (e.g. R&D, Manufacturing, Sales & Marketing, Business Development, Finance, etc.), using standard decision
support tools, evaluate the commercial potential of the idea before substantial investments of time and capital are made.
Leveraged
• The organization realizes that breakthrough ideas typically come from outside the company; it openly invites key business partners, suppliers,
and academics to participate in the innovation process; organization actively ‘in licenses’ novel new technologies to complement its existing
pipeline.
• Creative and flexible IP policies are employed to motivate open and collaborative innovation.
• Management challenges this ‘extended’ organization with the toughest business problems facing the organization; people are recognized for
ideas leading to their solution.
Optimized
• The organization is ‘ambidextrous’. Separate and distinct idea management capabilities - i.e. with different project sponsors, financial metrics,
and risk management techniques - are established at the ‘front end’ of the organization’s innovation model to manage incremental and
radical ideas.
• A formal Alliance Management System is in place; all associates are treated as peers.
Idea Management
Idea Management is the ability of a firm to effectively identify, assimilate, and qualify information regarding new technologies, or ideas, that can lead to highly
differentiated, breakthrough products and services.
Activities Include: Boundary Spanning, Technology Scanning and Evaluation, Applied Research, Collaboration with Early Adopters/Scientific Centers, etc.
Idea Management begins to answer the question of competitive advantage by simultaneously examining technology and market factors. Ideas about possible market
opportunities made feasible by new technologies is often the point where innovation begins.
CIMS Description of Core Competence: Idea Management

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Heat Map Results
are calculated using
Mathematical Mode
--- The MOST popular
response.
How the heat map is calculated and understanding
the significance of the colors
Calculating a cell’s color:
• The 1st number in each cell
represents the level of maturity for
that specific dimension/row
• The 2nd number in the cell
represents the level of maturity for
that specific
competency/column
• Add the two numbers together to
get the total ‘color’ along the
color gradient
Example:
Strategy/Idea Management 1, 2
Count 3 spaces along gradient to
reach the color depicted within the
heat map
1 2 3 4 5 6 7 8 9 10

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How to interpret MMA results
Common IM patterns:
• “Root Cause can be elusive”
• “Confusing activity for results”
• “Perceptions are often
skewed”
Going deeper into the cube…
“The best thing about the IMMA is it provides the organization with
a common language about how to manage innovation”
Professor Richard Kouri

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“We have a portfolio management problem!”
• When we look at our portfolio of projects they are all
incremental innovations – there are no true winners!
• Top management is losing faith in us; they tell us “quick, do
this project” – but we never stop any projects.
• It seems like we are working harder than ever…
• We think they are pursuing an acquisition to immediately
shore up our pipeline
A. Root cause of IM problems can be elusive
Case study #1
Symptoms:
IM Diagnostic > Why companies struggle

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“Ship without a rudder”
• Little or no market orientation
• No strategic planning
• Portfolio Management and Org &
Culture suffer as a result
• Employees watch how senior
management allocate resources
A. Root cause of IM problems can be elusive
Case study #1
Facts:
IM Diagnostic > Why companies struggle
One of many common themes CIMS sees in IMMA results

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“We have a time-to-market problem!”
• Decisions, when made, take too long
• We seem to always be behind our competitors
• By the time we get our product/service launched all the
profits have been made and we are left to compete on
price
• Our employees are really disheartened; they read the trade
press – some of them are leaving and going to smaller
companies
Case study #2
Symptoms:
B. Strengths sometimes hide a gaping hole
IM Diagnostic > Why companies struggle

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“One trick pony”
• Caused by a breakdown in Platform
Management and Strategy
• Everything is a “one off”
• Ability to quickly address niche market
cells is severely limited.
• Very costly and inefficient business
model
• Impacts Organization & Culture (of
course, everything does!)
Case study #2
Facts:
B. Strengths sometimes hide a gaping hole
IM Diagnostic > Why companies struggle
One of many common themes CIMS sees in IMMA results

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“Our products don’t excite our new customers!”
• Work is no fun anymore; its not the company I remember
• I really don’t know what our strategy is?
• Management seems averse to taking any risk
• Heavy focus on making quarterly results – and not much
else
• Our products and services are just “Me too”
C. Some factors count more than others
Case study #3
Symptoms:
IM Diagnostic > Why companies struggle

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“Stuck in Incrementalism”
• No capability… no will(?) to identify
and develop ideas
• Organization lacks an entrepreneurial
spirit and drive
• Combined with no strategy and a
weak / non-existent Idea
Management capability can be life
threatening
Facts:
IM Diagnostic > Why companies struggle
One of many common themes CIMS sees in IMMA results
C. Some factors count more than others
Case study #3

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D. Innovation must be led from the top
General rule #1
• Only top management can set
strategy, allocate resources and affect
the culture of the organization through
their actions
• Its middle management’s job to
amplify on these directions and put
them into operation
Facts:
“Top management sweet spot”
IM Diagnostic > Why companies struggle

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E. Don’t confuse activity with results
• Scorecard is dominated by 2’s
(“Defined” level of maturity)
• Organization may have hired
consultants; done some initial
benchmarking; even documented
their “to be” process”…
• Until all the competencies are
“Managed” (Level 3 maturity) there
can be no change in performance
Facts:
General rule #2 “Wake up call!”
IM Diagnostic > Why companies struggle

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F. Caution: Perceptions are often skewed
“Rose-colored glasses”
• “We’re OK!”; [you are not OK?]
• Often the response given by:
• Senior Management
• ‘Longer tenured’ people
• The R&D Function!
• Very common – why taking
demographic ‘slices’ is important
before launching any improvement
program
Facts:
General rule #3
IM Diagnostic > Why companies struggle

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“The Tool” is not just a
diagnostic, but also a
roadmap for remedy!

24. From a diagnostic tool to a…
Roadmap for Remedy!

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1
Ad hoc
 Ideas about new breakthrough products and services is thought to be the domain of R&D. When employees are
encouraged to submit their ideas, they often do not receive relief from their ‘day jobs’ to pursue them.
 Project ‘champions’ are often required to persevere and drive promising ideas to commercialization.
 Employees may be cynical and question the importance management places on innovation.
2
Defined
 The R&D portfolio is segmented into ‘horizons’ (e.g.H1,H2, and H3) to ensure adequate investments and talents, are
allocated to the early identification and maturation of new, promising technologies.
 Ideas are sought that address the full range of strategic issues, such as sustainability, services and solutions, etc.
 Employees are presented with idea generation tools and encouraged to formally submit ideas.
3 Managed
 Management presides over the organization’s ‘innovation board’; new ideas are systematically reviewed and
employees provided ‘space’ (time and resources) to develop their ideas (before entering the formal project
development process).
 Cross-functional project teams (e.g. R&D, Manufacturing, Sales & Marketing, Business Development, Finance, etc.), using
standard decision support tools, evaluate the commercial potential of the idea before substantial investments of time
and capital are made.
4 Leveraged
 The organization realizes that breakthrough ideas typically come from outside the company; it openly invites key business
partners, suppliers, and academics to participate in the innovation process; organization actively ‘in licenses’ novel new
technologies to complement its existing pipeline.
 Creative and flexible IP policies are employed to motivate open and collaborative innovation.
 Management challenges this ‘extended’ organization with the toughest business problems facing the organization;
people are recognized for ideas leading to their solution.
5 Optimized
 The organization is ‘ambidextrous’. Separate and distinct idea management capabilities - i.e. with different project
sponsors, financial metrics, and risk management techniques - are established at the ‘front end’ of the organization’s
innovation model to manage incremental and radical ideas.
 A formal Alliance Management System is in place; all associates are treated as peers.
Competence: Idea Management
TODAY
2015
TARGET
GOAL
Actions:
2016
TARGET

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Just a Few Firms Who Have Used IMMA

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CIMS IMMA and VIQ used in the
Kelly Services Innovation Journey
http://cims.ncsu.edu/wp-content/uploads/2015/01/Kelly_CIMS-Innovation-White-Paper.pdf

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Articles on the IMMA found
in the CIMS IMR Newsletter
• Innovation Officers: Let CIMS Help You
Shape Your Firm’s Strategy (Spring 2012)
• Driving Culture Change at BASF (Spring
2012)
• Updating Our Tools for Competing in the
Information Age (Spring 2011)

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Join Us… CIMS Conference:
Open Innovation - Revisited
October 26th & 27th
The Frontier @ RTP
Keynote by Dr. Terri Griffith, Santa
Clara University and one of Silicon
Valley’s top 100 women! Griffith’s
talk is titled; Lead by Letting Go:
Are 20th Century Constraints
Holding Open Innovation Back?
Additional presenters from Industry,
IAIOP, NC State University’s Poole
College of Management and
College of Design, plus more!
Complete Details:
cims.ncsu.edu/events

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Apply the CIMS IM Framework and
check out the CIMS IMMA at the
same time!
• Go to: http://cimscsa.com
• Username: ISSIP2015 (case sensitive)
• Password: cims-issip (case sensitive)
• Enter Captcha Code Provided
If you would like to further explore the IMMA, we will leave the
assessment open through November 2015.