Public Sector Innovation Management

Public Sector Innovation Management
Dr. Enrico Ferro
www.enricoferro.com
Technology Intelligence for Government, Business & Society

Setting the Stage for Successful Learning
• Let’s not take language for granted
• Getting the fundamentals right
• Starting from the same page: shared definitions
• Your input is vital
2Technology Intelligence for Government, Business & Society

Examples Innovation
We call “innovation” many different things.
Floating pool tableGNSS system

How to Define Innovation?
Innovation is a new way of doing things that is
commercialized. The process of innovation cannot be
separated from a firm’s strategic and competitive context.
Michael Eugene Porter

Two Aspects to Keep in Mind
What is a technological trajectory?
– The path a technology follows through time is termed its
technological trajectory. Many consistent patterns have
been observed in technological trajectories, helping to
understand how technologies improve and diffuse.
Not only one type of innovation
– Several dimensions are used to categorize innovations.
These dimensions help clarify how diverse innovations
offer different opportunities (and pose different
requirements) on producers, users, and regulators.

Product vs. Process
Process innovationProduct innovation
Innovation which is embodied in
the outputs of an organization, i.e.,
its goods or services.
Implementation of a new or
significantly improved production or
delivery method.

Radical vs. Incremental
Incremental innovationRadical innovation
Exploration of new technologies
with a high level of uncertainty due
to sporadic and discontinuous
trajectories.
Exploration of existing technologies
with a low level of uncertainty due
to linear and continuous
trajectories.

C. Enhancing Vs. C. Destroying
Competence destroyingCompetence enhancing
Innovation built on the firm’s
existing knowledge base.
Innovation that renders a firm’s
existing competencies obsolete.

Modular vs. Architectural
Architectural innovationModular innovation
Replacement of a core component
which leaves the overarching
architecture untouched.
Changing in the overall design of
the system or in the way
components interact.

Dimensions of Innovation
How to categorize innovation?
– Modality of change (product vs. process)
– Extent of change (radical vs. incremental)
– Relationship among capabilities and innovation
(competence enhancing vs. competence destroying)
– Innovation impact on the system (modular vs.
architectural)

Is this Enough?
Does innovation always
focus on hard aspects?

The Soft Side of Innovation
Not always innovation has its focus on “hard”
aspects!
Packaged gift experiencesNo-frills flights

The Soft Side of Innovation II
aspects!
Deal-of-the-day couponing1-click on-line ordering

The Soft Side of Innovation
aspects!
Music servitizationSocial product development

To Sum up
Product/Service innovation
• Doing new things.
Process innovation
• Doing things differently.
Business model innovation
• Create and extract value from things in different
ways.

What about the Public Sector?
Successful innovation is the creation and implementation
of new processes, products, services and methods of
delivery which result in significant improvements in
outcomes efficiency, effectiveness or quality.
Mulgan & Albury (2003)

Public Sector Innovation Taxonomy
• 1. Service innovation (the introduction of a new service or an
improvement to the quality of an existing service);
• 2. Service delivery innovation (new or altered ways of supplying
public services);
• 3. Administrative and organisational innovation (changes in
organisational structures and routines – Admin Integration);
• 4. Conceptual innovation (the development of new views that
challenge existing assumptions – Waste to Value);
• 5. Policy innovation (changes to thinking or behavioural intentions-
Social media); and
• 6. Systemic innovation (new or improved ways of interacting with
other organisations and sources of knowledge -OpenData).

Some Aspects to Keep in Mind
• Administartive fulfillment vs. value orientation
• Internal vs. external orientation
• A semantic pitfall:
– Digialization vs. innovation of public services

Prominent Hurdles
• Delivery pressure & administrative burden
• Short-term budgets & planning horizons
• Poor rewards & incentives
• Culture of risk aversion
• Poor skills in active risk or change management
• Reluctance to close down failing programs or
organisations

Understanding ICT Driven Innovation
Policy
ManagementTechnology
Complexity of the World
vs
Silos Organization of Science
Need for Multidisciplinarity
vs
Educational Biases
Plenty of
Time & Money
Wasted
+
=
Innovation

Common Result
• Why does this happen?
er.reichstaedter@cio.gv.at / Christian.Rupp@bka.gv.at
agoza - 30.08.2004

Underlying Paradigm

A Smart Way to Look at Technology
Policy, program &
economic contextOrganizational
setting
Tools
Work processes &
practices

What about Evolution?
• So far we presented a static view of the
relationship between IT and Organizations
• What do you think may happen when we
consider time?

What About Evolution? (II)
Technology
Social and
Organizational
Structures
Social and
Organizational
Structures
Technology
Technology
Impacts
Shape
Mutual
Influence
Social and
Organizational
Structures
Transformational
Approach
Contingent
Approach
Emergent
Approach

And the Outside World?
%ofAdopters
Time
eReadiness Diffusion Impact

ICTs & Smart Cities Governance
How is the transition
process that cities will
have to undertake
going to be governed?
What role will ICT play
in the governance of
the transition process?
Research QuestionsFerro E.et al (2013) "The Role of ICT in Smart City Governance" International
Conference for E-Democracy and Open Government, Krems, Austria.

Literature Strands
Smart Cities
Governance
Value
Smart City
Governance
ICTs, human and social
capital fuelling
sustainable economic
growth and high quality
of life, with a wise
management of natural
resources, through
participatory governance
Gradual shift in focus
from a mere application
of administrative and
political authority
towards a bidirectional
discourse with a
diversified constituency
Value in use vs. value in
exchange, intrinsic value vs.
instrumental value, good
simpliciter vs. perspective-
dependent good, value and
societal needs

From Tech to Value Creation
Number of complementary
investments required to fruitfully
exploit ICT potential
ICT as a means to an end since it
does not possess an intrinsic
value
Incremental product innovation
characterized by a decreasing
marginal utility
Iterative influence between
technological solutions and
social ecosystems

The Smart City House Model
INPUTS
OUTPUTS
OUTCOMES

What Value Should be Produced?
Democracy
Personal freedom
Fair employment, affordable
healthcare, education and mobility
Clean air and water, healthy food, affordable and
sustainable energy and housing
Misalignment of priorities may only be
considered a temporary solution.
Global economy
over the 20th century
Physiological
hierarchy
Highest priority
Before
After

Looking at the Future
The real smart city will have to learn how to
reconcile individual aspirations and collective needs.

Thank You
Enrico Ferro
Head of Innovation Development Dept.
ferro@ismb.it
@egferro
www.enricoferro.com
CONTACTS

Public Sector Innovation Management

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