This is the presentation made by me along with another team member. We presented it in AIMA competition. The presentations focuses on how should organizations go about weaving innovation into the day to day activities of an organization.

1. Unleashing INNOVATION across the
VALUE CHAIN
Presenters:
Tarun Gupta, IIM Ranchi
Jubin Goyal, IIM Ranchi

2. INNOVATION
What
Innovation isn’t about great
ideas. Innovation is a chain
that requires strength at every
link to succeed.
Incremental Improvement:
Net Books Context
Radical Breakthroughs : LG Fridge/Washing Machine
Toyota Battery powered Prius FlipKart
SarvaJal
Creative Destruction
Shaadi.com

3. Is Innovation Growth ?

4. Gains of Innovation
Product Outcome Process Outcome Other Outcome
Source: NISTADS February’12 Bulletin

5. Scope of Innovation
Innovations are mostly adoption of the market trend in terms of product quality, machine
etc. Himachal Pradesh scores better in every aspect of innovation mainly due to the presence
of pharmaceutical and electric goods industry and also due to the presence of PSUs.
Source: NISTADS February’12 Bulletin

6. Culture of Innovation
Case Study: Tata Group Innovation Forum (TGIF)
• Leadership Lays the Foundation: Senior Management’s Priority
• Build Innovation Into the Organization: Clear system of approving & Funding,
Innovation built into the annual review process
• Hire the Right People: PHD Graduates
• Celebrate Innovators: Weekly slack time of 5 hours is provided for personal projects
• Use Social Media to Tap ideas: A social network called IdeaMax, lets people submit idea,
where other people can comment or vote for it.
Products out of TGIF:
• Discovery of Microbe that helps plants grow in saline soil.
• The use of Super computer for drug discovery Eka
• mKrishi, a database on 5 crops – to provide information to farmers about when
and which seeds to sow.
TCS Chief Technology Officer Ananth Krishnan, coins that 10% of revenues of TCS are directly traceable to innovation activity.
Source: Bloomberg Business Week

7. Weaving Innovation in day-to-day activities
Case Study: North Delhi Power Ltd. (NDPL)
Problem: Shortage of Power supply
I want power when I need it the most.
• Induced Demand side Management
to reduce Peak-hour demand.
• Supply of 2 MW to Delhi Jal Board was
shifted to Off-peak hours, thereby
reducing peak hour demand.
• A first of its kind initiative in India,
where electricity board and water
board have joined hands.
Source: http://www.tata.com/innovation/articles

8. Managers’ role in Creating a Learning
Organization
- Stability: Consistent commitment to
change, innovation.
- Reduce power distance: Flattened
organizations, cross- functional teams
- Disagreement is good: teach
people to give up having to be in agreement with
everything.
- Judicious Slack of resources: allows room
for innovation.
- Celebrate Effort: rewarding successes &
failures both, it helps in fostering trust.
- Organic Organization: flexibility,
value external knowledge
P&G (Wrinkle free Shirts)
Source: Harvard Business School Publications

9. ‘Top-down’ Vs ‘Bottom-Up’
Source: Tata innometer

10. Takeaways
Impact of Organizational environment on creativity:
Source: Prof. Teresa Amabile, HBS; creativity & innovation in organizations.

11. Measuring Innovation
Percentage of
Respondents a) Only 35% of the Senior Executives
are satisfied with their company’s
innovation measurement practices.
b) 43% of the Senior Executives feel
that the innovation initiatives are
not held to the same level of rigor
as company’s core businesses.
Revenue Projected Vs Total funds Allocation of Average Number of Number of Percentage of Cannibalization
realized from Actual invested in investments development projects that projects killed ideas funded of existing
offerings performance growth across time of each meet the or tabled at product sales
launched in the projects. projects. project planned each milestone by new
past 3 years targets. offerings.
Source: BCG Senior Management Innovation Metrics Survey

12. Improving company measurement practices
All components of the Cash Curve should be measured :
Innovation effectiveness:
1. Only 20% companies consistently tie incentives to innovations.
2. Tie medium or long-term compensation to innovation metrics .
Source: James P. Andrew & Harold L. Sirkin, Payback: Reaping the rewards of Innovation (Boston: Harvard Business School press.)

13. Role of Educational Institutions
Sources of process & product innovation by firms in India:
Source: ASCI Journal of Management

14. Role of Educational Institutions
Annual Graduate Production:
• Total size of India’s R&D talent pool is three times smaller than that of China.
• PhDs account for less than 2 per cent of post graduates in India .
• India produces three times as many postgraduates as the UK, but the
UK produces 1.5 times more PhDs than India.
Source: ASCI Journal of Management

15. Role of Educational Institutions
Access
Concepts
Services
Application Creation
Source: http://knowledgecommission.gov.in/

16. Words of Wisdom
There is a way to do it better, find it.
Thomas Edison
Thank you
We are open to questions now …