The document summarizes a two-day workshop on innovation led by Cheryl Perkins and Patrick Clusman at the CII Innovation Center in Shanghai on February 27-28, 2012. Cheryl Perkins is the president of Innovationedge and former Chief Innovation Officer of Kimberly-Clark. Patrick Clusman is the COO of Innovationedge and formerly held leadership roles at Kimberly-Clark. The workshop aims to help participants make innovation work within and outside their organizations through discussions on linking innovation strategies to business, leading for innovation, creating an innovative culture, and conquering innovation fatigue.
What is the Benefit of an Open Innovation Process?Jose Briones
Open Innovation is now a very fashionable term and many companies are rushing to implement an open innovation process without fully understanding its value nor how it fits within their existing product development process. In this Chapter of the “Beyond Stage Gate” series we will discuss the different definitions of Open Innovation, where does it fit in the development cycle, software tools available and a case study. We will show how Smarty Ears, a developer of iPad apps for Speech Therapy and Communication, has used open innovation to greatly increase the number of ideas to market, as well as accelerate the product development cycle.
This document discusses Procter & Gamble's shift from an "invent-it-ourselves" closed innovation model to an open innovation "Connect & Develop" strategy in response to stagnating innovation success rates and declining market performance. The new strategy aims to acquire 50% of innovations from outside the company by transforming R&D processes to engage over 1 million external innovators through proprietary and open innovation networks. This represents a strategic shift beyond optimization to engaging the company's management in an open, crowdsourced model focused on customer needs to sustain growth in a changing innovation landscape.
Dr. Sabine Brunswicker's presentation about the future of open innovation as presented at the 7th European Innovation Summit of the European Parliament: A Pact for Innovation. December 7th, 2015 in Brussels, Belgium.
This document summarizes a two-day workshop on lean innovation to be held on April 28-29, 2011 at the CII Innovation Center in Shanghai. The workshop will provide an overview of lean innovation principles and techniques to help participants increase innovation success rates. It will cover topics like managing the innovation process and flow, idea generation and assessment methods, and case studies of successful innovation practices at companies like 3M, GE, and Ingersoll Rand. Attendees will learn how to apply lean tools to reduce innovation costs and cycle times. The goal is to equip executives and product developers with skills for planning, designing, and implementing new products and services more efficiently.
Open Source and Open Innovation - Dr. Sabine Brunswicker - Red Hat Summit 2016Purdue RCODI
From Open Source Towards Open Innovation: Fostering Corporate Innovation with Open Source Software (OSS) Communities presented by Dr. Sabine Brunswicker.
Dr. Sabine Brunswicker presented the latest work on how firms and individuals collaborate in an open source software community in the Red Hat Summit 2016. In particular, she highlighted how firms, whether they are OSS vendors or OSS uses, and also the individual developer, can support each other in order to successfully integrating new features in the software. Red Hat Summit is the premier open source technology event to showcase the latest and greatest in cloud computing, platform, virtualization, middleware, storage, and systems management technologies.
Open source software (OSS) is booming. Working the OSS way has become the new standard of software development. This trend has also changed the nature of OSS communities. While originally the domain of hobbyists and hackers, OSS communities are now attracting the participation of firms, both small and large ones. Indeed, OSS communities offer firms the opportunities to engage in what experts call ‘open innovation’. They open up to OSS communities and participate in OSS communities in order to create direct and indirect corporate innovation benefits. This presentation will focus on open innovation for new ‘industrial’ OSS communities, which bring together OSS vendors, OSS customers, as well as independent developers. One of the prominent examples of these new OSS communities is the OpenStack community in the area of cloud computing. These communities create unique opportunities not only for vendor but also for OSS customers to actively shape the agenda of the development activities and also implement this agenda. At the same time, these communities also expose firms to new management challenges given the size and diversity of the actors involved. In my talk I will provide very recent insights gained from a big data analysis focused on the ‘inner working mechanism’ of the OpenStack community. A deep dive into the contribution behavior of different vendors and OSS customers suggest that firms need to align their open innovation strategy with their idiosyncratic innovation interest, the development capabilities of their own employees, and their role in the community. For example, firms that seek to drive more radical changes in the OSS software should behave differently than those firms that are more focused on immediate quality improvements. In sum, the presentation will give those firms, which already participate in new ‘industrial’ OSS communities, as well as those ones, that only use OSS products, practical guidelines in how to use open innovation for the new ‘breed’ of OSS communities. Concrete examples will depict what kinds of features contributors suggested and how OSS vendors, OSS customers and independent developers collaborate in implementing those features.
Prof. Henry Chesbrough's speech at the Open Innovation Seminar 2008, the first event about the subject in Brazil, promoted by Allagi. The event took place at the World Trade Center São Paulo in June 16, 2008.
The document summarizes a two-day workshop on innovation led by Cheryl Perkins and Patrick Clusman at the CII Innovation Center in Shanghai on February 27-28, 2012. Cheryl Perkins is the president of Innovationedge and former Chief Innovation Officer of Kimberly-Clark. Patrick Clusman is the COO of Innovationedge and formerly held leadership roles at Kimberly-Clark. The workshop aims to help participants make innovation work within and outside their organizations through discussions on linking innovation strategies to business, leading for innovation, creating an innovative culture, and conquering innovation fatigue.
What is the Benefit of an Open Innovation Process?Jose Briones
Open Innovation is now a very fashionable term and many companies are rushing to implement an open innovation process without fully understanding its value nor how it fits within their existing product development process. In this Chapter of the “Beyond Stage Gate” series we will discuss the different definitions of Open Innovation, where does it fit in the development cycle, software tools available and a case study. We will show how Smarty Ears, a developer of iPad apps for Speech Therapy and Communication, has used open innovation to greatly increase the number of ideas to market, as well as accelerate the product development cycle.
This document discusses Procter & Gamble's shift from an "invent-it-ourselves" closed innovation model to an open innovation "Connect & Develop" strategy in response to stagnating innovation success rates and declining market performance. The new strategy aims to acquire 50% of innovations from outside the company by transforming R&D processes to engage over 1 million external innovators through proprietary and open innovation networks. This represents a strategic shift beyond optimization to engaging the company's management in an open, crowdsourced model focused on customer needs to sustain growth in a changing innovation landscape.
Dr. Sabine Brunswicker's presentation about the future of open innovation as presented at the 7th European Innovation Summit of the European Parliament: A Pact for Innovation. December 7th, 2015 in Brussels, Belgium.
This document summarizes a two-day workshop on lean innovation to be held on April 28-29, 2011 at the CII Innovation Center in Shanghai. The workshop will provide an overview of lean innovation principles and techniques to help participants increase innovation success rates. It will cover topics like managing the innovation process and flow, idea generation and assessment methods, and case studies of successful innovation practices at companies like 3M, GE, and Ingersoll Rand. Attendees will learn how to apply lean tools to reduce innovation costs and cycle times. The goal is to equip executives and product developers with skills for planning, designing, and implementing new products and services more efficiently.
Open Source and Open Innovation - Dr. Sabine Brunswicker - Red Hat Summit 2016Purdue RCODI
From Open Source Towards Open Innovation: Fostering Corporate Innovation with Open Source Software (OSS) Communities presented by Dr. Sabine Brunswicker.
Dr. Sabine Brunswicker presented the latest work on how firms and individuals collaborate in an open source software community in the Red Hat Summit 2016. In particular, she highlighted how firms, whether they are OSS vendors or OSS uses, and also the individual developer, can support each other in order to successfully integrating new features in the software. Red Hat Summit is the premier open source technology event to showcase the latest and greatest in cloud computing, platform, virtualization, middleware, storage, and systems management technologies.
Open source software (OSS) is booming. Working the OSS way has become the new standard of software development. This trend has also changed the nature of OSS communities. While originally the domain of hobbyists and hackers, OSS communities are now attracting the participation of firms, both small and large ones. Indeed, OSS communities offer firms the opportunities to engage in what experts call ‘open innovation’. They open up to OSS communities and participate in OSS communities in order to create direct and indirect corporate innovation benefits. This presentation will focus on open innovation for new ‘industrial’ OSS communities, which bring together OSS vendors, OSS customers, as well as independent developers. One of the prominent examples of these new OSS communities is the OpenStack community in the area of cloud computing. These communities create unique opportunities not only for vendor but also for OSS customers to actively shape the agenda of the development activities and also implement this agenda. At the same time, these communities also expose firms to new management challenges given the size and diversity of the actors involved. In my talk I will provide very recent insights gained from a big data analysis focused on the ‘inner working mechanism’ of the OpenStack community. A deep dive into the contribution behavior of different vendors and OSS customers suggest that firms need to align their open innovation strategy with their idiosyncratic innovation interest, the development capabilities of their own employees, and their role in the community. For example, firms that seek to drive more radical changes in the OSS software should behave differently than those firms that are more focused on immediate quality improvements. In sum, the presentation will give those firms, which already participate in new ‘industrial’ OSS communities, as well as those ones, that only use OSS products, practical guidelines in how to use open innovation for the new ‘breed’ of OSS communities. Concrete examples will depict what kinds of features contributors suggested and how OSS vendors, OSS customers and independent developers collaborate in implementing those features.
Prof. Henry Chesbrough's speech at the Open Innovation Seminar 2008, the first event about the subject in Brazil, promoted by Allagi. The event took place at the World Trade Center São Paulo in June 16, 2008.
Why innovation is important to business successFrank Reynold
Innovation is coming up with a new idea and turning it into an effective process, a new product or service. The implementation of creativity and innovation in business is likely to incorporate success and help you stand competitiveness in the market. Innovation can be referred to as something new or introduced differently and has impact on market or society.
Open Innovation: An Paradigm Shift for Sustainable Brand Pioneers - Henry Che...Sustainable Brands
Open innovation is the use of purposive inflows and outflows of knowledge to accelerate internal value creation, and expand the markets for external use of innovation. The paradigm assumes that for invention and scientific advancement, firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as they look to advance their technology. Dr. Henry Chesborough provides a look at the idea of open innovation as a backdrop to this year's launch of GreenXChange, an open sustainable intellectual property platform and coalition launched at Davos in January.
This document proposes a model for structuring innovation within companies. It summarizes research on how companies approach innovation and highlights some key insights. The model suggests that companies structure innovation around the phases of identification, development and commercialization, as the skill sets needed for each differ. It also recommends separating radical and incremental innovation efforts, as the sources and risks involved are very different. Establishing spin off or isolated groups may help identify disruptive innovations that challenge a company's existing competencies.
This document discusses global trends in open innovation. It defines open innovation as using external ideas as well as internal ideas, and internal and external paths to market, to advance internal innovation and expand markets. The document outlines best practices companies use in open innovation, including Philips' high tech campus partnership network. It also discusses how companies are using web 2.0 tools like IdeaStorm, Innocentive, and Threadless to engage customers in innovation.
Open Innovation: What's behind the buzzword?SAP Ariba
The document discusses open innovation and its growing adoption by companies. It provides 3 key takeaways from the document:
1. Open innovation is a structured approach to bringing outside ideas and partnerships inside a company to aid innovation.
2. Open innovation adoption has increased rapidly over the past 10 years, moving from early adopters to wide adoption.
3. While open innovation provides access to more external ideas and partnerships, it also requires internal investments in capabilities, management processes, and cultural changes to successfully implement.
The Market for Open Innovation Platforms: Deciding If and Where to Invest - J...Jose Briones
Open innovation became a key success factor for many companies today. But which is the right method for open innovation? Which are the criteria to plan an open innovation project? Which intermediary or service provider has specific knowledge and expertise in, e.g., crowdsourcing, the lead user method, Netnography, idea contests, technology scouting, or broadcast search? This interactive debate will analyze different platforms that are meant to accelerate innovation. You will leave with a better understanding of the options that are out there and whether it makes sense for you to invest in a certain platform. In reaching their conclusion, innovation professionals must:
Weigh the pros and cons of turning to a technology provider to help solve your OI needs
Understand the landscape of open innovation intermediaries and platforms
Make the most of your investment in an OI platform
Beautiful beginning for open innovationAditya Pawar
This document provides an overview of Document Services Valley, an open innovation initiative located in Venlo, Netherlands. It was created in 2011 by Canon-Océ, Maastricht University, and Exser to facilitate innovation in document and information services. The summary is as follows:
1) Canon-Océ faces declining printing volumes and needs to innovate in services to remain competitive. Document Services Valley was created to spur such service innovation.
2) After 1.5 years of operation, the report evaluates the achievements and learnings of Document Services Valley to determine its future.
3) The report guides the reader through Document Services Valley's journey and research on how to create a sustainable environment for open
Anne Carullo is the SVP of Corporate Product Innovation at Estée Lauder. She discusses how Estée Lauder innovates differently than other companies by having a Product Development team that works across brands and focuses on both exploratory concepts and driving existing product development. She emphasizes the importance of building an infrastructure that supports innovation through resources, flexibility, and recruiting diverse talent. Carullo believes that maintaining a pipeline of 5-8 in-development ideas is key to a healthy innovation program. While consumer feedback is important, she also believes in pursuing "high concept" ideas that test poorly but could be big successes. Carullo advises looking to other industries for inspiration and starting small with innovation efforts
This document discusses the findings of a survey on innovation efforts at organizations. It finds that while organizations are talking more about innovation, their actual innovation scores remain quite low, averaging only 42% overall. While idea generation and culture-building activities have increased, scores around innovation strategy and processes have declined. This indicates that many organizations are focusing on quick "smoke and mirrors" activities rather than developing a sustainable innovation program with a clear strategy and processes. Without addressing strategy and processes first, innovation efforts risk wasting resources and confusing employees over the long run.
Tony Tomazic is the Director of Consumer Innovations at Humana, a large health insurance company. He leads the Humana Innovation Center in developing programs to engage consumers in their health. Some key innovations include:
1) Freewheelin, a bicycle sharing program that was spun off into its own company, B-cycle, to sell bike sharing systems to communities.
2) The Horsepower Challenge, a health game for schools that uses pedometers and virtual currencies to motivate physical activity by gamifying steps taken each day.
3) The Smart Summary health statement that simplified insurance communications using photos and discounts to encourage healthier behaviors.
Tomazic emphasizes understanding consumer needs, seeking new adj
The document summarizes lessons on innovation from interviews with 12 global innovators. It finds that defining innovation, embracing internal innovation to cut costs, shifting from problem-solving to problem-defining, and having an innovation team play facilitator and incubator roles are keys to success. The innovation team's role varies by organization, from facilitating others' innovation to incubating ideas themselves. Innovators need creativity, open-mindedness, and teamwork skills.
Innovation Leadership Study: Managing Innovation - An Insider PerspectiveCapgemini
The study, which surveyed over 260 innovation executives globally, suggests that while innovation is an emerging functional area within organizations, limited organizational strategies for driving innovation are impairing growth.
The document discusses factors for success and failure in innovation. It outlines an innovation growth model with 5 phases (adhoc, program, co-creation, eco-innovation, value chain innovation) and the challenges of moving between each phase. Key success factors discussed are people, management processes, tools, and opening innovation processes to external partners through co-creation.
This document discusses the importance of innovation and creativity for engineers. It explores how engineers can innovate through taking risks, making mistakes, arguing with diverse perspectives, and overcoming challenges in the idea generation, development, and application stages of innovation. Examples of both successful (Beats by Dr. Dre headphones) and unsuccessful (Breastlight cancer detection device) innovations are provided. The document concludes by considering whether innovation is still driving growth and thoughts for the future of innovation.
Open Innovation: an approach - speech miac 2019Antonio Mosca
This document discusses open innovation and digital transformation opportunities in the tissue industry. It notes that by 2025, digital technologies will have an $11.1 trillion global economic impact. Open innovation allows companies to search for innovative ideas, learn how to openly innovate, and boost innovation through partnerships. The document proposes that Fabio Perini, as a leader in the tissue industry, is well-positioned to be a digital innovation partner and help its customers benefit from digital technologies through solutions like servitization, connected factories, and smart lines. It recommends customers visit Fabio Perini's innovation centers, workshops, and define a custom digital roadmap to create value through open innovation.
Open Innovation with an example from P&GFahad Abbasi
Open innovation involves sharing risks and rewards of the innovation process with external partners. This document discusses Procter & Gamble's adoption of open innovation. P&G found that in-house R&D success rates were low and external ideas were underutilized. They launched external connections programs to source ideas from entrepreneurs. P&G evaluates ideas for alignment with business goals and technical feasibility before collaborating on cocreation. Key factors in P&G's open innovation success include culture change to accept external ideas and leadership support for external connections programs.
Siemens adopted an open innovation initiative to address problems stemming from its decentralized structure, including siloed information and a lack of cross-company communication. The initiative was intended to break down internal barriers and identify experts within the company, but later expanded to include collaborations with universities and other organizations. While open innovation provided benefits like new ideas, it also introduced risks around intellectual property exposure and disruption to company culture.
This document provides biographical information about Kenneth Rohde Christiansen, who works for Nokia Danmark and previously worked for Nokia Technology Institute in Brazil. It discusses his accomplishments working on touch-based designs in Brazil and porting WebKit to EFL libraries. It also summarizes his current work on browsers, W3C standards, and integrating Qt WebKit into Qt5.
The document contains a quiz with multiple choice questions about cricket players, technology companies, historical figures, movies, songs, and more. Each question has 2-4 subparts to be answered. The questions cover a wide range of topics from sports to history to pop culture.
The document provides information about an upcoming quiz being hosted by Aditya Sriram Sankaran at the CQC. The 20 question quiz will cover various topics and include a theme round and potential A-Z round. Questions will have multiple choice answers and prizes of 10 points will be awarded for each correct response. The host emphasizes the quiz is meant to be fun and their judgement on answers will be final.
Why innovation is important to business successFrank Reynold
Innovation is coming up with a new idea and turning it into an effective process, a new product or service. The implementation of creativity and innovation in business is likely to incorporate success and help you stand competitiveness in the market. Innovation can be referred to as something new or introduced differently and has impact on market or society.
Open Innovation: An Paradigm Shift for Sustainable Brand Pioneers - Henry Che...Sustainable Brands
Open innovation is the use of purposive inflows and outflows of knowledge to accelerate internal value creation, and expand the markets for external use of innovation. The paradigm assumes that for invention and scientific advancement, firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as they look to advance their technology. Dr. Henry Chesborough provides a look at the idea of open innovation as a backdrop to this year's launch of GreenXChange, an open sustainable intellectual property platform and coalition launched at Davos in January.
This document proposes a model for structuring innovation within companies. It summarizes research on how companies approach innovation and highlights some key insights. The model suggests that companies structure innovation around the phases of identification, development and commercialization, as the skill sets needed for each differ. It also recommends separating radical and incremental innovation efforts, as the sources and risks involved are very different. Establishing spin off or isolated groups may help identify disruptive innovations that challenge a company's existing competencies.
This document discusses global trends in open innovation. It defines open innovation as using external ideas as well as internal ideas, and internal and external paths to market, to advance internal innovation and expand markets. The document outlines best practices companies use in open innovation, including Philips' high tech campus partnership network. It also discusses how companies are using web 2.0 tools like IdeaStorm, Innocentive, and Threadless to engage customers in innovation.
Open Innovation: What's behind the buzzword?SAP Ariba
The document discusses open innovation and its growing adoption by companies. It provides 3 key takeaways from the document:
1. Open innovation is a structured approach to bringing outside ideas and partnerships inside a company to aid innovation.
2. Open innovation adoption has increased rapidly over the past 10 years, moving from early adopters to wide adoption.
3. While open innovation provides access to more external ideas and partnerships, it also requires internal investments in capabilities, management processes, and cultural changes to successfully implement.
The Market for Open Innovation Platforms: Deciding If and Where to Invest - J...Jose Briones
Open innovation became a key success factor for many companies today. But which is the right method for open innovation? Which are the criteria to plan an open innovation project? Which intermediary or service provider has specific knowledge and expertise in, e.g., crowdsourcing, the lead user method, Netnography, idea contests, technology scouting, or broadcast search? This interactive debate will analyze different platforms that are meant to accelerate innovation. You will leave with a better understanding of the options that are out there and whether it makes sense for you to invest in a certain platform. In reaching their conclusion, innovation professionals must:
Weigh the pros and cons of turning to a technology provider to help solve your OI needs
Understand the landscape of open innovation intermediaries and platforms
Make the most of your investment in an OI platform
Beautiful beginning for open innovationAditya Pawar
This document provides an overview of Document Services Valley, an open innovation initiative located in Venlo, Netherlands. It was created in 2011 by Canon-Océ, Maastricht University, and Exser to facilitate innovation in document and information services. The summary is as follows:
1) Canon-Océ faces declining printing volumes and needs to innovate in services to remain competitive. Document Services Valley was created to spur such service innovation.
2) After 1.5 years of operation, the report evaluates the achievements and learnings of Document Services Valley to determine its future.
3) The report guides the reader through Document Services Valley's journey and research on how to create a sustainable environment for open
Anne Carullo is the SVP of Corporate Product Innovation at Estée Lauder. She discusses how Estée Lauder innovates differently than other companies by having a Product Development team that works across brands and focuses on both exploratory concepts and driving existing product development. She emphasizes the importance of building an infrastructure that supports innovation through resources, flexibility, and recruiting diverse talent. Carullo believes that maintaining a pipeline of 5-8 in-development ideas is key to a healthy innovation program. While consumer feedback is important, she also believes in pursuing "high concept" ideas that test poorly but could be big successes. Carullo advises looking to other industries for inspiration and starting small with innovation efforts
This document discusses the findings of a survey on innovation efforts at organizations. It finds that while organizations are talking more about innovation, their actual innovation scores remain quite low, averaging only 42% overall. While idea generation and culture-building activities have increased, scores around innovation strategy and processes have declined. This indicates that many organizations are focusing on quick "smoke and mirrors" activities rather than developing a sustainable innovation program with a clear strategy and processes. Without addressing strategy and processes first, innovation efforts risk wasting resources and confusing employees over the long run.
Tony Tomazic is the Director of Consumer Innovations at Humana, a large health insurance company. He leads the Humana Innovation Center in developing programs to engage consumers in their health. Some key innovations include:
1) Freewheelin, a bicycle sharing program that was spun off into its own company, B-cycle, to sell bike sharing systems to communities.
2) The Horsepower Challenge, a health game for schools that uses pedometers and virtual currencies to motivate physical activity by gamifying steps taken each day.
3) The Smart Summary health statement that simplified insurance communications using photos and discounts to encourage healthier behaviors.
Tomazic emphasizes understanding consumer needs, seeking new adj
The document summarizes lessons on innovation from interviews with 12 global innovators. It finds that defining innovation, embracing internal innovation to cut costs, shifting from problem-solving to problem-defining, and having an innovation team play facilitator and incubator roles are keys to success. The innovation team's role varies by organization, from facilitating others' innovation to incubating ideas themselves. Innovators need creativity, open-mindedness, and teamwork skills.
Innovation Leadership Study: Managing Innovation - An Insider PerspectiveCapgemini
The study, which surveyed over 260 innovation executives globally, suggests that while innovation is an emerging functional area within organizations, limited organizational strategies for driving innovation are impairing growth.
The document discusses factors for success and failure in innovation. It outlines an innovation growth model with 5 phases (adhoc, program, co-creation, eco-innovation, value chain innovation) and the challenges of moving between each phase. Key success factors discussed are people, management processes, tools, and opening innovation processes to external partners through co-creation.
This document discusses the importance of innovation and creativity for engineers. It explores how engineers can innovate through taking risks, making mistakes, arguing with diverse perspectives, and overcoming challenges in the idea generation, development, and application stages of innovation. Examples of both successful (Beats by Dr. Dre headphones) and unsuccessful (Breastlight cancer detection device) innovations are provided. The document concludes by considering whether innovation is still driving growth and thoughts for the future of innovation.
Open Innovation: an approach - speech miac 2019Antonio Mosca
This document discusses open innovation and digital transformation opportunities in the tissue industry. It notes that by 2025, digital technologies will have an $11.1 trillion global economic impact. Open innovation allows companies to search for innovative ideas, learn how to openly innovate, and boost innovation through partnerships. The document proposes that Fabio Perini, as a leader in the tissue industry, is well-positioned to be a digital innovation partner and help its customers benefit from digital technologies through solutions like servitization, connected factories, and smart lines. It recommends customers visit Fabio Perini's innovation centers, workshops, and define a custom digital roadmap to create value through open innovation.
Open Innovation with an example from P&GFahad Abbasi
Open innovation involves sharing risks and rewards of the innovation process with external partners. This document discusses Procter & Gamble's adoption of open innovation. P&G found that in-house R&D success rates were low and external ideas were underutilized. They launched external connections programs to source ideas from entrepreneurs. P&G evaluates ideas for alignment with business goals and technical feasibility before collaborating on cocreation. Key factors in P&G's open innovation success include culture change to accept external ideas and leadership support for external connections programs.
Siemens adopted an open innovation initiative to address problems stemming from its decentralized structure, including siloed information and a lack of cross-company communication. The initiative was intended to break down internal barriers and identify experts within the company, but later expanded to include collaborations with universities and other organizations. While open innovation provided benefits like new ideas, it also introduced risks around intellectual property exposure and disruption to company culture.
This document provides biographical information about Kenneth Rohde Christiansen, who works for Nokia Danmark and previously worked for Nokia Technology Institute in Brazil. It discusses his accomplishments working on touch-based designs in Brazil and porting WebKit to EFL libraries. It also summarizes his current work on browsers, W3C standards, and integrating Qt WebKit into Qt5.
The document contains a quiz with multiple choice questions about cricket players, technology companies, historical figures, movies, songs, and more. Each question has 2-4 subparts to be answered. The questions cover a wide range of topics from sports to history to pop culture.
The document provides information about an upcoming quiz being hosted by Aditya Sriram Sankaran at the CQC. The 20 question quiz will cover various topics and include a theme round and potential A-Z round. Questions will have multiple choice answers and prizes of 10 points will be awarded for each correct response. The host emphasizes the quiz is meant to be fun and their judgement on answers will be final.
The document discusses two approaches to outsourced recruitment process (RPO) solutions: an HR back-office solution and an end-to-end solution. While both can increase hiring, the study found that the end-to-end solution yielded twice as many hires as the back-office solution due to the back-office model's tendency to replicate steps already completed by the provider. This replication confuses candidates and adds unnecessary time to the process, reducing hires compared to the seamless end-to-end model. The document recommends an end-to-end solution for maximizing hiring outcomes from outsourced recruitment.
The report finds that based on current trends, by 2030 there could be significant gaps between the skills workers have and the skills employers need globally. There may be a shortage of 38-40 million college-educated workers, especially in advanced economies and China. Developing economies could face a shortage of 45 million medium-skilled workers and a surplus of 90-95 million low-skilled workers. If unaddressed, these imbalances could slow economic growth and increase inequality and unemployment around the world. Major policy efforts are needed to improve education and training systems to develop needed skills.
Stanford Hospital & Clinics engaged Adecco to serve as a single managed service provider and vendor management system to centralize its contingent workforce in order to reduce costs by at least $500k annually while ensuring regulatory compliance and quality of talent; since implementing Adecco's program in 2009, it has provided over $1.5 million in savings for Stanford through centralized processes, compliance management, and performance tracking.
The document provides an overview of the human cloud landscape in 2015, including key findings and estimates of spend processed through various human cloud models and platforms. It defines the human cloud as online/digital platforms that enable work arrangements to be established and completed through an entirely digital process. The human cloud is estimated to have processed between $8.9-11.1 billion in transactions in 2014, with online work services accounting for over half of the total spend. The largest human cloud companies by estimated 2014 spend are listed.
The document is a report by the McKinsey Global Institute published in July 2012 titled "The social economy: Unlocking value and productivity through social technologies". It examines the economic impact of social technologies and identifies ten value-creating levers that can be used across industries from product development to customer service. The report estimates that social technologies could contribute $900 billion to $1.3 trillion in value creation across four commercial sectors, with improved internal communication and collaboration accounting for two-thirds of that value. However, capturing this value poses challenges as organizations will need to transform how they operate and collaborate both internally and externally.
Travel & living quiz october2013 for uploadAditya S
Travel & Living quiz - questions provided by me & conducted by Arul Saravanan with more questions of his own at the Coimbatore Quiz Circle in October 2013
Booz co global-innovation-1000-2011-culture-keyAlex Krol
This document summarizes a study on corporate innovation. The study found that simply spending more on research and development does not necessarily drive better business results. Rather, the most important factors are having an innovation strategy that is well aligned with the overall business strategy, and having a corporate culture that strongly supports innovation. While many executives say these are important, about half of companies surveyed for the study reported that their innovation strategy was not well aligned with business strategy and that their culture did not robustly support innovation. Developing better strategic alignment and cultural support for innovation could significantly improve business performance and economic growth overall.
Futurethink Innovators Interview Randy Vossrandyvoss
Randy Voss, Senior Manager of Global Strategy and Business Development at Whirlpool, discusses Whirlpool's approach to innovation. He notes that balancing incremental and breakthrough innovation is challenging due to corporations' focus on short-term action over long-term opportunities. Whirlpool manages this balance through a rigorous innovation pipeline and metrics system that evaluates projects on factors like financial requirements. Voss also emphasizes the importance of clearly defining innovation goals and metrics in order to build a successful innovation program.
"Nurturing The Next Big Thing" from the March 2013 Issue of PM NetworkThink For A Change
1) Organizations must not only continuously develop new ideas, but also implement projects that deliver value from those ideas.
2) To succeed, companies must blend cutting-edge concepts with traditional project governance approaches to bring prototypes to market.
3) Aligning innovation strategies and projects closely with overall business strategies is key to effectively translating ideas into successful initiatives.
This document discusses how to develop an innovative corporate culture. It presents a model of the key elements of an innovative culture, which are organized into six building blocks: resources, processes, values, behaviors, climate, and success. These building blocks are interrelated and impact each other. The document then describes several companies that exemplify different building blocks, such as IDEO's emphasis on values and behaviors that promote creativity. It also introduces an assessment tool that can evaluate an organization's innovation culture based on the six building blocks and identify strengths and weaknesses. Applying this tool helped one company recognize it needed to develop stronger creative leadership to expand successfully.
Best Practices In Collaborative Innovation: How CPG Manufacturers & Retailers...Jenna Dudevoir
This white paper is based on a research study with thirty global consumer goods manufacturers, retailers, and brokers to better understand how manufacturers and retailers are working together to drive profitability and deliver innovative products.
The document discusses the evolution of innovation models from closed to open. It explains that in the past, companies relied solely on internal research and development, but that open innovation has become more important. Open innovation involves collaborating with external partners such as suppliers, customers, universities and more. This allows companies to access a wider range of ideas and expertise beyond their own walls. Some challenges of open innovation mentioned include changing company culture, managing partnerships and intellectual property issues. Overall open innovation is seen as key to innovation in many industries like food and drink where collaborations with suppliers, customers and consumers dominate the ecosystem.
The document discusses how manufacturing companies are increasingly integrating innovation into their corporate strategies and collaborating across organizational boundaries to drive innovation. Some key findings include:
1) Innovation is becoming a more integral part of corporate growth strategies and is embedded in more functions beyond just R&D.
2) Companies are looking at innovation as an important lever for improving business performance and top-line growth, in addition to developing new products.
3) R&D collaboration, customer collaboration, and supplier collaboration are seen as key ways to support localized products while leveraging synergies globally. However, challenges remain in capitalizing on customer insights and shifting supplier relationships from cost reduction to shared value creation.
Creating the Conditions for Sustainable Innovation The Leadership Imperative ...Meghan Daily
Leaders are not actively engaged in driving innovation according to a study of leadership behaviors that support innovation. The study found that leaders more frequently demonstrated passive behaviors that accept ideas rather than active behaviors that challenge the status quo, prioritize time for ideation, or encourage information gathering over daily tasks. This indicates that leaders are not personally invested in innovation and do not make it a priority through their own active engagement.
This document discusses integrating intellectual property (IP) protection with open innovation business practices. It provides an overview of an event on this topic, including presentations from Bob Ford on open innovation business practices and John Harris from Gowlings law firm on protecting and licensing IP in open innovation models. The document also includes background information on open innovation, describing it as using internal and external ideas to accelerate innovation. It discusses expectations businesses have of institutional partners in open innovation clusters.
The 6P Model for Making Innovation a Core CapabilityGreg Verdino
If innovation is so important for business growth, why do so many companies get it wrong? The 6P Model for Making Innovation a Core Capability provides an overview of they elements any organization should have in place to support always-on, sustained innovation that delivers positive business outcomes.
The original blog post for this content can be found at http://gregverdino.com/innovation-capability.
1. Successful product innovation requires dynamic communication and idea sharing between engineers, marketers, and customers. However, few companies are good at incorporating customer insights into product development.
2. Barriers like siloed engineering teams that are detached from customers often limit innovation. Successful innovators conduct extensive market research and customer observations to understand needs.
3. Levers for innovation include having employees use products, seeking feedback from dissatisfied customers, and maintaining close involvement with customers through activities like focus groups and observation.
briefing Innovation Compass (by Guy Bauwen)Ernst Phaff
This document summarizes a presentation on developing successful businesses through innovation. It discusses key aspects of innovation such as ideation, new product development, commercialization challenges, and common reasons why most new ventures fail. It also outlines market development models and "diamonds of success" including sensing opportunities, monitoring progress, scaling capabilities, and maintaining strategic focus. The overall focus is on providing frameworks to help innovators and entrepreneurs overcome challenges and achieve desired outcomes in bringing innovations to market.
This document discusses balancing creativity and business needs in managing research and development (R&D) projects. It proposes a six-step project management framework to effectively manage innovation given practical constraints of time and budget. While innovation is important for business success, creative ideas must be developed and commercialized through a structured process to realize benefits. The framework includes phases for concept generation, implementation and testing, and socialization and marketing to convert inventions into innovations. Managing innovation poses challenges as researchers prioritize novelty over processes, and their goals differ from engineers and marketers. An effective process acknowledges ideas evolve through an "innovation funnel" from unclear concepts to clear, commercialized products.
This document discusses balancing creativity and business needs in managing research and development (R&D) projects. It proposes a six-step project management framework to effectively manage innovation given practical constraints of time and budget. While creativity thrives on uncertainty and freedom, some process is needed to move ideas through an "innovation funnel" toward commercialization. Adopting project management practices can help accelerate the innovation process if the processes acknowledge differences between researchers focused on novelty and engineers focused on prototypes and pilots.
This document is a corporate innovation playbook published by RevelX in 2021. It aims to demystify corporate innovation and the challenges of innovating within an established company. The playbook covers topics such as why corporate innovation is important, why it often fails, the four fundamental innovation methods of design thinking, lean startup, agile and go-to-market strategies. It also details the three main innovation challenges of ideation, validation and scale-up, and provides frameworks and tools to help innovators succeed.
An innovation leaders fund modeling the link to growth - feb 2013Tim Jones
The document details an analysis of over 1,500 companies over 10 years to identify innovation leaders. It found a clear link between effective innovation capabilities and sustained stock growth. The analysis models how an innovation leaders portfolio would have outperformed major indices as an investment fund. If created, the fund would provide compelling outperformance, liquidity and low risk.
We are proud to announce our fifth Innovation Excellence Weekly for Slideshare. Inside you'll find ten of the best innovation-related articles from the past week on Innovation Excellence - the world's most popular innovation web site and home to nearly 5,000 innovation-related articles.
This document discusses global trends in open innovation and best practices for open innovation systems. It describes open innovation as using external knowledge to accelerate internal innovation and expand markets. Companies are creating open innovation systems with processes, partner networks, infrastructure, and organizational structures. The document analyzes best practices like Philips' High Tech Campus, which offers infrastructure and services to partners to stimulate collaboration. It also mentions Telefonica's network of over 1,000 partners and Nokia's discussions of technology trends with partners.
This document discusses global trends in open innovation. It defines open innovation as using external ideas as well as internal ideas, and internal and external paths to market, to advance internal innovation and expand markets. The document outlines best practices companies use in open innovation systems, including Philips' high tech campus network. It also discusses how companies are using web 2.0 tools like IdeaStorm, Innocentive, and Threadless to engage customers in innovation.
This document discusses global trends in open innovation. It defines open innovation as using external ideas as well as internal ideas, and internal and external paths to market, to advance internal innovation and expand markets. The document outlines best practices of companies that have successful open innovation systems, including Philips' research campus and Telefonica's large partner network. It also discusses how companies are using web 2.0 tools like IdeaStorm, Innocentive, and Threadless to engage customers and partners in open innovation.
Similar to The 2012 Global Innovation 1000 Study (20)
1. strategy+business
forthcoming in issue 69 WINTER 2012
THE GLOBAL INNOVATION 1000
Making Ideas Work
The early stages of innovation can be challenging. But
Booz & Company’s annual study of R&D spending
reveals that successful innovators bring clarity
to a process often described as fuzzy and vague.
by Barry jaruzelski, john loehr,
and richard holman
preprint
3. THE GLOBAL
INNOVATION
1000:
MAKING
feature innovation
IDEAS WORK
The early stages of innovation can be challenging. But
Booz & Company’s annual study of R&D spending
reveals that successful innovators bring clarity to a
process often described as fuzzy and vague.
2
by Barry Jaruzelski, John Loehr, and Richard Holman
Every economic downturn comes with the same Those companies are the quiet stars of our annual
Illustration by Francesco Bongiorni
refrain: The world, we’re told, is losing its creative ca- Global Innovation 1000 study of R&D spending. As
pacity, hurting our chances for a speedy recovery. Yet our study has consistently shown over the past eight
inevitably, when worries about innovation erosion sur- years, there is no long-term correlation between the
face, some company rises up with a great new product, amount of money a company spends on its innovation
technology, or service to prove the naysayers wrong. And efforts and its overall financial performance; instead,
all too often, observers simply fail to pay attention to the what matters is how companies use that money and
many companies that make successful innovation part other resources, as well as the quality of their talent,
of their regular practice — indeed, their operating mod- processes, and decision making. Those are the things
el — in ways that don’t necessarily make big headlines. that determine their ability to execute their innova-
4. Barry Jaruzelski John Loehr Richard Holman Also contributing to this article
barry.jaruzelski@booz.com john.loehr@booz.com richard.holman@booz.com were s+b contributing editor
is a senior partner with Booz is a partner with Booz & is a partner with Booz & Edward H. Baker and Booz
& Company in Florham Park, Company based in Chicago, Company based in Florham & Company senior associate
N.J., and the global leader of and is the global leader of Park, N.J. As a senior leader of Marc Johnson and senior
the firm’s engineered products the firm’s innovation practice. the firm’s innovation practice, consultant Jane Kim.
and services business. He He works with automotive, he works with clients in highly
created the Global Innovation industrial, and technology engineered products sectors
1000 study in 2005, and companies to help them such as aerospace, industrials,
continues to lead the research. build competitive innovation high tech, and healthcare on
He works with high-tech and capabilities and to resolve innovation capability building,
industrial clients on corporate critical decisions in their new product development
and product strategy and product and market strategies. efficiency and effectiveness,
the transformation of core and product management.
innovation processes.
tion agendas. In 2011, corporate spending among the ing Company, “it’s not technology. It’s art. If you’re all
Global Innovation 1000 increased 9.6 percent over the about value creation with no creativity, the accountants
previous year, slightly faster than the 9.3 percent gain in are going to take over. You need to prime the pump
feature innovation
2010. But because corporate revenues grew by a robust with creative ideas, and then you need to have rigorous
13 percent last year — even faster than the year before processes in place to turn those ideas into dollars.”
— R&D intensity, or the percentage of sales that com- The second critical finding calls into question a
panies spend on innovation, actually declined to tradi- common assumption about innovation. It’s often said
tional pre-recession levels. that the means by which companies seek out and find
Of course, some companies get more bang for their good ideas tend to be vague, or fuzzy, or highly vari-
innovation investment buck than others. Over the past able from one company to another. Yet according to
few years, we have carefully analyzed the innovation our survey, the most successful innovators in all indus-
strategies, capabilities, and cultural factors that enable tries have developed a variety of consistent, manage-
some companies to consistently achieve superior finan-
cial results. This year, to further clarify those perfor- Exhibit 1: Measuring Front-End Effectiveness
mance drivers, we surveyed nearly 700 companies and When asked to evaluate their success with idea generation and
idea conversion, only one-quarter of our respondents claimed to be
interviewed 12 senior innovation executives and chief highly effective at both.
technology officers at leading companies. Our goal was
3
4
to gain insights into the early stages of innovation —
when companies generate ideas and then decide which
HIGHLY EFFECTIVE
ones to develop.
11% 25%
The Up-Front Process Revealed
Perhaps the most surprising result of our study of the
Idea Conversion
up-front innovation process is how many companies
say they simply aren’t very good at it. Just 43 percent
of participants said their efforts to generate new ideas
MARGINALLY EFFECTIVE
were highly effective, and only 36 percent felt the same
way about their efforts to convert ideas to product de- 46% 18%
velopment projects. Altogether, only a quarter of all re-
strategy+business issue 69
spondents indicated that their organizations were highly
effective at both. (See Exhibit 1.) MARGINALLY EFFECTIVE HIGHLY EFFECTIVE
“If you have a creative idea and it doesn’t create Idea Generation
value,” says Matthew Ganz, vice president and gen-
eral manager of research and technology at the Boe- Source: Booz & Company
5. able ideation practices that are well aligned with their
innovation strategies. And when moving ideas into the
development stage, they tend to depend on an equally
consistent set of principles and processes. Indeed, any
company in any industry can take advantage of these
tools and processes to get the most out of the money
they spend on innovation.
The types of techniques and tools they employ,
however, depend in large part on each company’s fa-
vored innovation strategy (although these distinctions
are more pronounced in the ideation stage). A great
deal of the work we have done in the annual Global
Innovation 1000 studies over the past several years has
involved teasing out the different ways companies
approach innovation, and the implications of those
approaches. Five years ago, our research showed that Readers and 20 percent of Technology Drivers. These
nearly every company follows one of three fundamental are the same companies, by and large, that consistently
innovation strategies, each of which has its own distinct outperform financially.
feature innovation
way of managing the innovation process and its re- It is critical to remember, however, that compa-
lationship to customers and markets. We thus catego- nies can significantly outperform their peers no mat-
rize companies as Need Seekers, Market Readers, or ter which of the three strategies they follow. A far more
Technology Drivers. critical factor is how well they follow their chosen in-
Need Seekers, such as Apple and Procter & Gam- novation strategy: Is it tightly aligned with their overall
ble, make a point of engaging customers directly to gen- business strategy? Have they put in place the innova-
erate new ideas. They develop new products and services tion capabilities needed to support their strategy? Do
based on superior end-user understanding. Their goal: they have the right corporate culture needed to make
to seek out both articulated and unarticulated needs, that strategy work? And are they using the tools and
and then to try to get their new products to market first. processes that will yield the best new ideas and develop-
Market Readers, such as Hyundai and Caterpillar, ment projects, consistent with their innovation model?
use a variety of means to generate ideas by closely moni- Companies that can coherently align all these aspects
toring their markets, customers, and competitors, focus- of the innovation process, and execute them well, have
ing largely on creating value through incremental inno- a distinct advantage in the race for new ideas, products,
4
5
vations to their products. This implies a more cautious and services.
approach, one that depends on being a “fast follower” in
the marketplace. The Lightbulb Moment
Technology Drivers, such as Google and Bosch, Where do ideas come from? That seemingly simple
depend heavily on their internal technological capabili- question is at the heart of the initial phase of innova-
ties to develop new products and services. They leverage tion, when companies try to capture the best thinking
their R&D investments to drive both breakthrough in- about how to create breakthrough products and servic-
novation and incremental change, in hopes of meeting es that might transform their position in the market-
the known and unknown needs of their customers via place, as well as the incremental improvements to their
new technology. current product portfolios that can refresh tired brands.
As in the past, our results this year suggest that fol- Few companies succeed at innovation without ensur-
lowing a Need Seekers strategy, although difficult, of- ing that adequate processes are in place to generate
fers the greatest potential for superior performance in new ideas, and that those processes are followed in a
the long term. Fifty percent of respondents who defined disciplined fashion. Yes, serendipity will always play
their companies as Need Seekers said their companies some part in the effort, and we’ve heard plenty of sto-
were effective at both the ideation and conversion stages ries over the years about great ideas evolving out of
of innovation, compared with just 12 percent of Market (continued on page 7)
6. Profiling the the dot-com meltdown in 2000. In the Exhibit A: R&D and Sales
first three years following that col- Spending rose 9.6 percent in 2011, marking two
Global Innovation lapse, innovation spending increased
successive years of strong growth.
at an annual rate of 3.5 percent, com-
1000
1997 base year = 1.0
pared with 9.5 percent between 2009 3.0 R&D
Spending
and 2011. Yet despite this significant 2.5
W orldwide R&D spending
among the Global Innova-
tion 1000 increased 9.6 percent in
growth, average R&D intensity (in-
novation spending as a percentage of
sales) actually declined one-tenth of
2.0
1.5
Sales
2011, to US$603 billion. Coming on 1 percent in 2011, because the Global
1.0 R&D Spending
the heels of last year’s rise in spend- Innovation 1000 generated sales of as a % of Sales
ing, this makes it clear that we have a staggering $17.6 trillion last year. 0.5
emerged from the latest financial cri- (See Exhibit A.)
2000 2005 2010
sis with a stronger commitment to in- The top 100 companies ac-
novation investment than we did after counted for 50 percent of the growth Source: Bloomberg data, Booz & Company
feature innovation
Exhibit B: The Innovation Top 20
Toyota regained the number one spot among the top 20 spenders, reflecting the auto industry’s strong recovery. Of the eight healthcare companies
in the 2010 list, all but Novartis and Sanofi fell in the rankings.
Rank Company R&D Spending Headquarters Industry
2011, $US Change As a % Location
2011 2010 Billions from 2010 of Sales
1 6 Toyota $9.9 16.5% 4.2% Japan Auto
2 3 Novartis $9.6 5.5% 16.4% Europe Healthcare
3 1 Roche Holding $9.4 –2.1% 19.6% Europe Healthcare
4 2 Pfizer $9.1 –3.2% 13.5% North America Healthcare
5 4 Microsoft $9.0 3.4% 12.9% North America Software and Internet
6 7 Samsung $9.0 13.9% 6.0% Asia Computing and Electronics
7 5 Merck $8.5 –1.2% 17.6% North America Healthcare
5
6 8 11 Intel $8.4 27.3% 15.5% North America Computing and Electronics
9 9 General Motors $8.1 15.7% 5.4% North America Auto
10 8 Nokia $7.8 0% 14.5% Europe Computing and Electronics
11 14 Volkswagen $7.7 26.2% 3.5% Europe Auto
12 10 Johnson & Johnson $7.5 10.3% 11.6% North America Healthcare
13 16 Sanofi $6.7 15.5% 14.4% Europe Healthcare
14 12 Panasonic $6.6 6.5% 6.6% Japan Computing and Electronics
15 17 Honda $6.6 15.8% 6.5% Japan Auto
16 13 GlaxoSmithKline $6.3 3.3% 14.3% Europe Healthcare
17 15 IBM $6.3 5.0% 5.9% North America Computing and Electronics
18 19 Cisco Systems $5.8 9.4% 13.5% North America Computing and Electronics
strategy+business issue 69
19 26 Daimler $5.8 26.1% 3.9% Europe Auto
20 18 AstraZeneca $5.5 3.8% 16.4% Europe Healthcare
TOP 20 TOTAL: $153.6 9.9% 8.3%
Avg. Avg.
Source: Bloomberg data, Booz & Company
7. Exhibit C: Spending by Industry, creasing its R&D spending almost 14 sixth place in the overall rankings in
2011 percent, to $9 billion, and raising its 2010, Toyota increased its spending by
Computing and electronics remains the top
R&D spender, accounting for 28 percent of
ranking to number six in the list of the 16.5 percent and claimed the top spot.
spending worldwide. largest spenders overall. As comput- All the auto companies among the top
ing power moves into the cloud and 20 spenders in 2010 either moved up
Computing and Electronics 28% consumers turn to less-expensive in the rankings or stayed the same in
Other 2%
devices, sales of traditional electron- 2011, and Daimler entered the top 20
Telecom 2%
ics products such as PCs and digital for the first time. Innovation remains
Consumer 3%
cameras are slowing. It’s no surprise, critical for auto companies as they
Aerospace and Defense 4%
Software and Internet 7% then, that large, incumbent compa- seek to meet ever more stringent fuel
Chemicals and Energy 7% nies like Sony, Hewlett-Packard, and economy standards, boost the use
Texas Instruments have increased of electronics in their cars, develop
Industrials 10%
their R&D intensity in hopes of staying common platforms around the globe,
Auto 16%
relevant. and attract younger buyers.
Healthcare 21% Thanks largely to the auto sec- Meanwhile, as its increase in
tor’s strong recovery, spending on absolute spending slowed in 2011, the
Source: Bloomberg data, Booz & Company R&D in this industry increased by healthcare industry’s R&D intensity
feature innovation
15 percent, to a total of $96.5 billion, dropped by three-tenths of 1 per-
in R&D spending, and now repre- which was a far cry from the sector’s cent, to 12.2 percent, even though it
sent 62 percent of the total spent on 14 percent spending cut in 2009. R&D continues to spend significantly on
R&D by the Global Innovation 1000. intensity rose from 3.7 percent in 2010 R&D ($126 billion in 2011). Of the eight
Overall, three-quarters of companies to 3.8 percent in 2011. After falling to healthcare companies in the top 20
increased their spending, up from 68 spenders in 2010, all but Novartis and
percent in 2010, whereas just 19 per- Exhibit D: Change in R&D Sanofi fell in the rankings in 2011.
cent spent less. The top 20 spenders Spending by Industry, 2010–11 Given the recent dearth of successful
The nearly $53 billion increase in spending in
increased their innovation invest- 2011 was led by the computing and electronics, major pharmaceutical product intro-
ments by $5 billion, accounting for auto, and industrials sectors. ductions, many healthcare companies
just under 13 percent of the overall are hesitant to continue investing in
increase. (See Exhibit B.) innovation, choosing instead to steer
Together, the computing and $US billions
profits to shareholders. Regulatory
NET
electronics, healthcare, and auto Computing and $13.4
SPENDING
INCREASE
uncertainty has also taken its toll:
$52.6 6
7
sectors once again accounted for Electronics
Large pharma companies appear
the majority of overall spending — reluctant to invest in R&D without a
65 percent in 2011. (See Exhibit C.) Auto $13.2
clearer path to market.
Computing and electronics com- Every region where Global
panies continued their reign as the Innovation 1000 companies are
top R&D spenders, accounting for Industrials $7.9 headquartered increased spending
28 percent of spending worldwide in 2011, although the results varied
Software and
($167.2 billion), as well as the largest Internet
$6.2 considerably. (See Exhibit E, page 7.)
increase in spending during 2011. Healthcare $6.0 The biggest absolute gains were in
The industry increased its spending Chemicals North America, where companies
and Energy $3.6
by $13.4 billion last year. (See Exhibit Other $1.7 increased spending by 9.7 percent,
D.) This investment represents a 7.1 Consumer $1.7 significantly above their five-year
Telecom $0.4
percent increase, and with revenues average increase of 7 percent. Simi-
Aerospace –$1.5
up just 3.5 percent, the sector’s R&D and Defense larly, Japan increased spending by
intensity rose from 6.1 percent to 6.5 2.4 percent, well above its five-year
Source: Bloomberg data, Booz & Company
percent. Samsung led the way, in- (continued on page 7)
8. Exhibit E: Change in R&D (continued from page 6) more than 90 percent of the coun-
Spending by Region, 2010–11 average increase of 0.2 percent. Eu- tries’ combined spending. However,
Spending in North America increased by 9.7 rope, however, increased spending by it is worth noting that their combined
percent, significantly above its five-year
average, but China and India, once again, had just 5.4 percent, somewhat below its rate of growth was down from 38.5
the fastest growth rate.
6.8 percent average increase, likely percent in 2010, which may reflect the
a result of the region’s continued cooling down of the Chinese economy
27.2% economic woes. over the past year.
China and India (grouped to- With an increase in spending in
gether here) increased spending by nearly every industry and geographic
27.2 percent in 2011, to a total of $16.3 market, investment in R&D among
WEIGHTED
AVERAGE
billion — by far the greatest growth the Global Innovation 1000 is now
9.6%
12.2% in R&D spending across all regions, at an all-time high. Just a few years
9.7% albeit from a small base. Because after the financial crisis gripped the
China’s economy is much larger than world economy, today it is safe to say
5.4%
India’s, and far more of its companies that global innovation investment has
2.4%
China/ Rest of North Europe Japan
appear in the Global Innovation 1000 fully recovered — and is at a higher
India World America
(47 companies, compared with just level than ever.
feature innovation
Source: Bloomberg data, Booz & Company nine from India), China accounted for —B.J., J.L., and R.H.
(continued from page 4) them to product. There are always more ideas we want
chance meetings, sudden flashes of insight, and sheer to invest in than we can realistically move through the
luck. Large companies, however, simply can’t depend life cycle, but it is these fragile ideas that seed future
on happenstance, and the most successful ones under- breakthrough products.”
stand that clearly. Still, considering that 57 percent of respondents
In the past, large companies typically turned to say their company is just marginally effective at idea
a highly “vertically integrated” innovation model, in generation, and a similar proportion say their compa-
which most of their new ideas stemmed from inter- ny’s culture does not support efforts to come up with
nal sources; an archetypical example is the old AT&T, new ideas, it is clear that many companies have much
whose Bell Labs conducted groundbreaking research, to learn about the best processes for generating ideas.
and, together with Western Electric, developed many of Moreover, companies’ level of effectiveness at this early
7
the ideas and products that now define our networked stage of innovation turns out to be a strong predictor
world. (See “Innovation at Bell Labs,” by Edward H. of financial performance. The 25 percent of survey re-
Baker, page 13.) More recently, companies have turned spondents who said their company was highly effective
to a wider range of sources for ideas, from suppliers and at both ideation and conversion also reported outper-
customers to outright acquisition of companies with forming their industry peers on three important finan-
good ideas in their own pipeline. cial measures: revenue growth, market cap growth, and
All these laudable efforts have led many companies earnings as a percentage of revenue. The same held true
to say, at least anecdotally, that coming up with new for companies whose employees said their culture sup-
ideas is not as big a problem as selecting and convert- ported early-stage innovation efforts. (See Exhibit 2.)
ing them to development projects, and the survey re- However, our survey also revealed that there is no
sults and interviews validate this hypothesis. Darlene correlation between financial performance and the par-
Solomon, chief technology officer of measurement ticular processes companies use at the idea-generation
strategy+business issue 69
company Agilent Technologies, and CEO Bill Sullivan and idea-conversion phases. Overall, companies con-
use the term cloud of innovation to refer to the large tinue to depend on a set of long-standing, reliable meth-
number of early-stage ideas available for potential inves- ods for coming up with new ideas. The most common
tigation. Most of those ideas, Solomon says, “aren’t yet method, by a substantial margin, was “direct observa-
sufficiently formulated for businesses to decide to take tions of customers,” ranked number one by 42 percent
9. of all respondents. “Traditional market research” was a panies see value in the techniques while others are left
rather distant second, at 31 percent. We also looked at cold. Companies in more consumer-oriented industries,
the kinds of external networks companies turned to at including software and Internet, computing and elec-
the ideation stage; again, the most common was talking tronics, consumer, telecom, and some healthcare sec-
to customers, followed by working with channel part- tors, are twice as likely to employ social media in their
ners. Finally, when asked what internal mechanisms search for new ideas than are companies in sectors with
their company used, most respondents pointed to “in- more highly engineered products and services, such as
novation champions” people assigned to coordinate
— auto, industrials, aerospace, and chemicals and energy,
the capture, development, and internal promotion of where these methods seem to have less efficacy.
new ideas — followed by “cross-functional collabora-
tion” among different business units. Different Strategies, Different Tools
Another noteworthy survey finding is the limited In our survey, and in follow-up interviews, we asked
use of open innovation in idea generation. In the past respondents about the mechanisms and processes their
decade or so, the concept of open innovation has gen- company employed, as well as the degree to which they
erated a great deal of buzz, and a small but growing depended on both internal and external networks.
number of companies are seeking out new ideas from Clearly, several ideation techniques are common to all
a variety of sources outside their conventional domains, innovators, but by and large, companies seem to focus
including innovation contests and social networking. on the tools and processes that are most aligned with
feature innovation
However, less than 15 percent of all companies ranked their chosen innovation strategies. In each of the areas
mining social media for ideas and using open innova- critical to early-stage innovation, the initial capturing
tion as important. We see indications of why some com- of ideas and the process by which companies decide to
Exhibit 2: The Front End and Financial Performance
Most companies that described themselves as highly effective in the early stages of innovation reported that they outperformed on revenue
growth, market cap growth, and earnings as a percentage of revenue. The results also show that being highly effective at idea conversion is more
important to financial success than being highly skilled at generating ideas.
Idea Generation Idea Conversion
Highly
Effective 65%
Marginally 60% 8
9
Effective 58%
56%
54%
52%
50% 50%
Normalized
49%
performance 46% 45%
of industry 42%
peers = 50%
MARGINALLY EFFECTIVE
HIGHLY EFFECTIVE
Revenue EBITDA as a Market Cap Revenue EBITDA as a Market Cap
Growth % of Revenue Growth Growth % of Revenue Growth
5-yr. CAGR 5-yr. avg. 5-yr. CAGR 5-yr. CAGR 5-yr. avg. 5-yr. CAGR
Source: Booz & Company
10. Exhibit 3: Idea-Generation Tools by Strategy
In the earliest stage of innovation, companies focus on and disproportionately employ the tools that are more closely aligned to their chosen innovation
strategy, whether they are Need Seekers, Market Readers, or Technology Drivers.
End-User Insight Tools Market Insight Tools Technology Foresight Tools
• Idea workout sessions • Feedbackfrom customer • Periodic meetings of
• Social-network data mining support and sales technical community
• Traditional market research • Technology road mapping
• Focusgroups with customers
and end-users • Seedfunding for • External idea scouting and
Need Seekers • Direct customer observation exploratory research technology
Market Readers • Cross–business unit
communities of practice
Technology Drivers
1.21
1.17 1.16
Indexed average of all 0.96
0.92 0.91 0.91 0.90
respondents to the ranking
0.85
of idea-generation tools in
this category = 1.00
TECHNOLOGY DRIVERS
MARKET READERS
feature innovation
NEED SEEKERS
Source: Booz & Company
move their good ideas into the product development practice are also popular among them; in fact, compa-
process, we find considerable variation. (See Exhibit 3.) nies classified as Need Seekers use all these internal net-
Need Seekers. These companies understand the work structures at higher rates, and view them as more
importance of developing strong relationships with effective as well.
customers — they rely more heavily on customer ob- Externally, Need Seekers tend to rely on networks
servation than do companies that follow either of the of customers, followed by their channel partners and
9
other two strategies, and less on pure market research. suppliers. Again, Need Seekers use these networks
Indeed, Need Seekers’ reliance on mechanisms that can more consistently than the other two groups and also
provide deep insights into the end-users of their prod- see the networks as being more effective. Says Tom Ka-
ucts goes beyond their willingness to observe custom- vassalis, vice president of strategy and alliances at the
ers directly; they also depend more on customer focus Xerox Corporation, “We call what we do customer-led
groups and “idea workout” sessions than do Market innovation, and its whole purpose is to make sure that
Readers or Technology Drivers. Further, they are more our innovation process is really relevant to customers.
likely to leverage social networking (10 percent say they We frequently host customers at our R&D centers and
use it) and deep analytics involving customer data. have them talk about what keeps them up at night,
According to the survey, Need Seekers also make and where they think technology might be helpful. We
avid use of internal networks — especially those involv- look for customers who are risk takers, willing to be the
ing innovation champions. Indeed, on an indexed basis, guinea pig in the deployment of a new solution. In ex-
strategy+business issue 69
Need Seekers are much more likely than companies fol- change for them giving their insights into their needs,
lowing the other two strategies to put people into this we give them the opportunity to be an early adopter of
role, and even more likely to see such champions as an something really new.”
effective element of their ideation processes. Cross-unit In their search for new ideas, Need Seekers fre-
staffing, formal idea conferences, and communities of quently cast their nets wide. Douglas Smith, chief tech-
11. “As we develop projects, especially areas of new
technology, we engage customers,” says Tana Utley
of Caterpillar. “And by the time we get the product
out to them, it’s something that they can use in
their business.”
nology officer at the Timken Company, notes that for
its first 100 years, this machine components manu-
facturer “was a closed innovation shop. If the research
feature innovation
didn’t happen inside our four walls, then it didn’t hap-
pen in any of our plants or in any of our engineering
areas. Over the past decade, we’ve come to appreciate
that there are lots of other good, smart companies and
exceptional talent out there. We’re developing new ways
to tap into other pools of knowledge — from custom-
ers and suppliers to universities and third-party com-
panies. We find that we can create the best value when
we complement our internal scientific knowledge with company’s ability to carry it out as efficiently as possible.
external perspectives and approaches. Having an oper- Market Readers depend less on networks of every
ating model that aligns the right access to new ideas at kind than do either Need Seekers or Technology Driv-
the right cost and the right risk creates a win-win situa- ers — which may be a further effect of the sales/R&D
tion for both parties.” feedback loop. As a rule, they tend to find communities
Market Readers. These companies face a different of practice and focused innovation networks effective in
10
11
strategic challenge. Their goal is to find ideas that lie generating ideas, which is perhaps symptomatic of their
within their business expertise, which they can then determination to ensure rapid delivery of new products
develop into incrementally improved products to take into the market. And when going outside the company
to market quickly and efficiently. They thus tend to fo- for ideas, they are more likely than Technology Driv-
cus on the further development of products that have ers to depend on their customer and supplier networks,
already been introduced by competitors. Market Read- but less likely to depend on universities and government
ers are the most likely of the three to rely on traditional agencies for new ideas, than companies following either
market research to understand better what is already of the other innovation models.
working in their markets. And they are significantly Tana Utley, chief technology officer of Caterpil-
more likely than the others to turn to their customer lar Inc., underscores why engagement with customers
support and sales teams for ideas about how they can is crucial: “I’ve seen organizations let their engineers
improve the products they already have. This feedback showcase technology ideas and develop some of them,
loop between sales and R&D is critical for Market but the innovation that results is often not directed to
Readers, but companies that rely too much on it may solving customers’ most pressing problems. If it doesn’t
find themselves with a new-product portfolio heavily relieve a particular customer pain point, then there’s no
weighted toward incremental improvements — a strat- compelling case to pull it through all the gates into pro-
egy that can work, although it depends greatly on the duction. As we develop projects, especially areas of new
12. The 10 Most 3M also maintained its position of Exhibit F: The Most Innovative
Companies
high regard among respondents. It
Innovative may not make headlines often, but
Apple retained the top spot in 2011, as ranked
by the executives we surveyed, and Amazon
the company again took third place, entered the top 10 for the first time — edging
Companies capturing the votes of just more
out Facebook.
than 15 percent of respondents. (See
F
Company R&D Spending
or the third year in a row, we Exhibit F.) 2011, As % of Sales
$US Bil. Rank (Intensity)
asked our survey participants Apple’s unchallenged position
1 Apple $2.4 53 2.2%
to name the companies they thought comes in a year marked by the death
2 Google $5.2 26 13.6%
were the world’s most innova- of the company’s founder and chair-
3 3M $1.6 86 5.3%
tive. This year, Apple didn’t just top man, Steve Jobs, and by the absence
4 Samsung $9.0 6 6.0%
the rankings (as it did the past two of any truly new product introduc-
5 GE $4.6 30 3.2%
years); it increased its lead substan- tions. Although the company’s abso-
6 Microsoft $9.0 5 12.9%
tially. The company — which in Au- lute spending on R&D over the past
7 Toyota $9.9 1 4.2%
gust 2012 became the most valuable three years has nearly doubled, to
in history, measured by market capi- 8 P&G $2.0 72 2.4%
US$2.4 billion, it still spends just 2.2 TIE
talization — was named by almost percent of its sales on its innovation 8 IBM $6.3 17 5.9%
feature innovation
80 percent of respondents as one of efforts, well below the average of 6.5 10 Amazon $2.9 48 6.1%
the three most innovative companies percent for the computing and elec- Source: Bloomberg data, Booz & Company
in the world, up from 70 percent last tronics sector. And despite being one
year. Google held steady at num- of the 2011 industry sales leaders overall within the Global Innovation
ber two; 43 percent of respondents in 2011, with $108 billion in revenue, 1000. In contrast, Apple’s longtime
included it among the top three, Apple’s absolute R&D spend ranks rival Microsoft was the top spender in
essentially unchanged from last year. only 16th within its industry and 53rd the software and Internet sector, and
technology, we engage customers. And by the time we ogy can do changes rapidly. You have to create it, show
get the product out to them, it’s something that they that it can be done, and then iterate.”
can use in their business.” The risk for Technology Drivers is that their ideas
Technology Drivers. These companies take a gen- and products, which reflect a highly technological im-
erally more self-reliant, inward-looking approach, im- perative, may not be fully attuned to markets and cus-
11
pelled largely by their desire to develop new products tomers. According to the survey, many of them do little
based on the latest advances in technology. The key is to mitigate this risk in their use of ideation tools. In-
to gain a broad understanding of what’s possible, and to deed, like Need Seekers, they rank innovation cham-
use that understanding to direct their own R&D. pions as the most common and effective internal net-
Technology Drivers’ forays into the market also working mechanism. But Technology Drivers use such
include regular external idea and technology scouting. champions at a considerably lower rate. They also turn
These companies depend to a greater extent on inter- less frequently to the top outside networks — custom-
nal mechanisms such as regular meetings of their own ers, channel partners, and suppliers — than do either
experts, communities of practice across company busi- Need Seekers or Market Readers.
ness units, and technology road mapping, to develop
far-reaching ideas that go beyond anything the market From Ideas to Products
could suggest. The process of choosing which ideas to convert to full-
strategy+business issue 69
“Consumers don’t always know what is possible,” scale product development is perhaps even more critical
says Girish Nair, senior vice president of corporate strat- to a company’s innovation success than is the ideation
egy and alliances at Hewlett-Packard. “They can de- stage. The conversion stage is the point at which com-
scribe what they want, but they can’t know what the panies use all the processes and tools at their command
technology can do, especially because what the technol- to decide whether a given idea in the pipeline is a “go” or
13. was ranked by respondents as the Exhibit G: Top 10 Innovators vs. revenue growth, and earnings as a
sixth most innovative company. Top 10 R&D Spenders percentage of revenues (after nor-
Last year’s sole newcomer to the The top innovators led on all three financial malizing for industry variations). (See
metrics, and in fact, the top spenders
list was Facebook. But that was back underperformed their industry peers on both Exhibit G.) Indeed, this year’s top 10
market cap and revenue growth.
when the company was still rapidly spenders actually underperformed
growing its user base, and before in terms of both market cap and rev-
HIGHEST
its ill-fated initial public offering. POSSIBLE
SCORE: 100
enue growth, compared with their in-
The bloom may be off the rose for dustry peers. And were it not for new
NORMALIZED
this erstwhile social media darling. PERFORMANCE entrant Amazon’s slim margins, the
OF INDUSTRY 68
Amazon has replaced Facebook in PEERS = 50 65 top innovators would have vastly out-
62
the number 10 position on the most 54 performed their peers on earnings as
45
innovative list. It’s about time that the 40 a percentage of revenues. This only
INNOVATORS
online retailer appeared; although confirms our long-standing finding
SPENDERS
Amazon makes few products of its that a company’s financial perfor-
own, it consistently develops innova- LOWEST mance and innovativeness do not
POSSIBLE Revenue EBITDA Market Cap
tive retail strategies and services. SCORE: 0 Growth
5-yr. CAGR
as a % of
Revenue
Growth
5-yr. CAGR
correlate with how much it spends
5-yr. Avg.
The Kindle was the first breakthrough on R&D, but rather with how well it
feature innovation
e-reader, but what made it truly inno- Source: Bloomberg data, Booz & Company executes its innovation strategy.
vative was Amazon’s decision to link —B.J., J.L., and R.H.
it so tightly to its e-book business, increase revenues.
effectively cutting out the competi- The 10 most innovative compa-
tion. And Amazon’s foray into cloud nies handily outperformed the top 10
computing, despite a few setbacks, spenders on R&D on several financial
continues to attract customers and metrics — market cap growth,
a “no go.” In the view of many innovation experts, this smaller companies in the Global Innovation 1000 (the
is where the most value is added. Says John Evans, cor- companies ranked 101 to 1,000) report themselves to be
porate vice president for technology and innovation at twice as effective at the conversion stage as their largest
the Lockheed Martin Corporation: “The conventional peers (the companies ranked in the top 100), no doubt
financial metrics appear to say that most of the value is because the organizational issues are less complex, and
12
created in the last steps of a project: development and ultimately less bureaucratic.
commercialization. But those steps are the most expen- Compared with the processes and tools used at the
sive and risky. I believe that it’s this middle conversion ideation stage, those used at the conversion stage do not
phase, which we call investigation, where the value of a vary much among the three strategies. Three-quarters
project can go up by a factor of 10.” of all companies, for instance, depend on internal net-
Most companies maintain data on their conversion works for help in vetting ideas for further development
rates, and on the rate at which products in development — an unsurprising result given that most companies,
ultimately find their way into the marketplace. Overall, even Need Seekers, simply do not go far afield for con-
43 percent of survey respondents said their company version of their ideas, and some might even see going
converted fewer than 20 percent of its ideas to devel- afield as a risk. The only external mechanism that many
opment projects, and just 12 percent reported moving companies report using is “leading customer reviews,”
more than 60 percent into development. in which top customers are given an early glimpse into
These numbers, however, don’t really reflect the at- the development pipeline. This tool is most popular
titudes of innovators toward the number of ideas that among Market Readers, perhaps because their general
ought to be generated, and the percentage of projects cautiousness prompts them to double-check whether
that should not be further developed. In this regard, their products will succeed in the marketplace given ex-
company size matters. Our survey results show that the isting alternatives.
14. “In managing the research portfolio,” says
Darlene Solomon of Agilent, “we constantly ask
ourselves, ‘What have we learned about the
technology that makes it more or less attractive
than [it was] six months ago?’”
Innovation at continually improve in quality and re- Bell Labs was connected to the phone
Bell Labs duce costs, research would be an es- company, and it was understood that
sential component. So for them, R&D the phone company would have a
by Edward H. Baker
was a huge money-saving, profitable never-ending stream of problems,
endeavor, and a path to a sustainable both technological and economic, that
T oday we think of innovation as business, if done correctly. needed solving.
feature innovation
what happens in Silicon Valley, The people running the labs In a way, this is what successful
where the young and ambitious cre- in the early years were scientists: companies still do. They look ahead
ate clever new businesses based on Putting dollars into research was and say, “What happens when we
the latest Internet technologies. But something that made enormous can’t make transistors and silicon
this model is actually quite recent. sense to them. The idea that you chips any smaller or they’re using so
For much of the 20th century, in- could create a technology that would much energy that it becomes incred-
novation was virtually synonymous save hundreds of millions of dollars ibly burdensome for companies to pay
with Bell Telephone Laboratories, on phone service was very much in for them?”
the AT&T research subsidiary where the minds of some of these research-
many of the technologies on which ers and engineers. S+B: We often view competition as
our world depends were pioneered. a critical component of innovation.
Jon Gertner recently published a S+B: Yet now we think of Bell What does the Bell Labs story tell us
fascinating history of the institution, Labs as almost purely a research about that notion?
called The Idea Factory: Bell Labs and organization. GERTNER: There’s no doubt that
13
the Great Age of American Innovation GERTNER: Yes, but there was a busi- incremental innovation is stimulated
(Penguin Press, 2012). He spoke with ness rationale, too. The people who by competition, as companies vie to
strategy+business in September 2012 ran the labs thought deeply about win in the marketplace. Is disruptive
about the way Bell Labs fostered the what would happen if telephone innovation stimulated by competi-
generation of ideas, and the role it traffic or switching grew increasingly tion? Sometimes. But, generally, the
played in AT&T’s commercial suc- complex, and they regularly asked, idea that the big leaps in science and
cess. The two were aligned around a “Do we have the capacity or abil- technology come from competition is
coherent business system and inno- ity to handle that?” It was essential misplaced, and I think history shows
vation strategy, creating the greatest to AT&T’s survival to keep looking us that. Instead, I think they usually
Technology Driver of its time. ahead at broad technological trends, come from curious scientists and
knowing that they would need some- technologists working in a creative
S+B: What was the genesis of Bell thing as disruptive as the transistor atmosphere with a rich exchange of
strategy+business issue 69
Labs’ research agenda? to continue to manage the system’s ideas, often with an understanding
GERTNER: It was essentially a busi- complexity. So was the transistor a that what their work is doing will have
ness decision. AT&T knew that, in basic research endeavor or an ap- practical applications. Even in a pre-
order to run a complex business like plied research effort? It’s hard to say. cubicle culture, all doors were open
telecommunications, which had to What was crucial was the fact that at Bell Labs.
15. Yet the true key to success at the conversion stage As the business environment becomes ever more
isn’t the specific tools and mechanisms used — after all, competitive, the need to innovate successfully becomes
companies report that, by and large, they all use quite ever more acute. Says Utley of Caterpillar: “There is
similar processes. The key to success is for companies nothing like a powerful external market force to really
to have the right people in place to manage the process, drive an intense innovative environment. And there is
using experience and judgment to rigorously make nothing that drives creative energy like that feeling in
the needed decisions. Says Solomon of Agilent: “Our the pit of your stomach when you have a goal that you
pipeline is about how much we think a technology have to achieve and it’s still pretty far away.” Harness
can move the needle in creating value for our custom- that energy as you move forward with your innovation
ers, and usually, that’s not a numbers question when efforts, taking comfort in the fact that your perfor-
you are assessing a disruptive technology. It’s easy to mance during the crucial front end can be much more
make anything look good. [What matters is] the judg- consistent and manageable than you thought possible. +
ment of people who are very experienced in leading re-
feature innovation
Reprint No. 00140
search, and we are fortunate to have really smart people
who have a good combination of technology and busi-
ness sense.”
Resources
That combination is critical when deciding which
ideas to carry through to commercialization and which To read about the Methodology behind the 2011 Global Innovation 1000
to kill. As ideas and projects move down the pipeline, study, see strategy-business.com/article/00140m.
business considerations become increasingly impor- Jon Gertner, The Idea Factory: Bell Labs and the Great Age of American
Innovation (Penguin Press, 2012): A history of Bell Labs, a hotbed of
tant. “In managing the research portfolio that is in the
innovation in the 20th century.
labs’ funnel,” says Solomon, “we constantly ask our-
Barry Jaruzelski, John Loehr, and Richard Holman, “The Global
selves, ‘What have we learned about the technology Innovation 1000: Why Culture Is Key,” s+b, Winter 2011, strategy-
that makes it more or less attractive than [it was] six business.com/article/11404: The most successful innovators ensure that
months ago? What have we learned about the market, their company’s culture not only supports innovation, but actually ac-
celerates its execution.
the competitive technologies — and what’s going on in
Barry Jaruzelski and Kevin Dehoff, “The Global Innovation 1000: How
the world that might help us decide whether the tech- the Top Innovators Keep Winning,” s+b, Winter 2010, strategy-business 14
15
nology is now even more valuable or perhaps becom- .com/article/10408: Highly innovative companies outperform by focus-
ing a “me-too” technology? What has changed within ing on critical capabilities aligned with their overall business strategy.
Agilent in terms of our business priorities?’ All of these Barry Jaruzelski and Kevin Dehoff, “The Customer Connection: The
perspectives evolve over the course of our longer-range Global Innovation 1000,” s+b, Winter 2007, strategy-business.com/
article/07407: This study first identified the three distinct innovation
research, and influence our decision whether or not to strategies: Need Seekers, Market Readers, and Technology Drivers.
continue to invest in a particular project.” Steven Veldhoen et al., “Innovation: China’s Next Advantage?” Benelux
Chamber of Commerce, China Europe International Business School,
Achieving R&D Success Wenzhou Chamber of Commerce, and Booz & Company, 2012,
booz.com/media/uploads/BoozCo_2012-China-Innovation-Survey.pdf:
Of course, even the best business management cannot Chinese companies are growing more innovative — competing
overcome poor decisions about which ideas to move with multinationals at home and, increasingly, abroad.
into development, or add significantly to value if the Booz & Company’s Global Innovation 1000 Study microsite,
idea itself isn’t strong. Thus, the quality of those early booz.com/innovation1000.
ideas, and of the ones pushed past the conversion stage, Booz & Company’s online innovation strategy profiler, booz.com/
is critical. To ensure good decision making, executives innovation-profiler: Evaluate your company’s R&D strategy and the
capabilities it requires.
need to make use of the processes and techniques best
For more thought leadership on this topic, see the s+b website at:
suited to their chosen innovation strategy, and put the strategy-business.com/innovation.
right people in place to execute on them.