Innovation In The Downturn

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The economic downturn provides an excellent opportunity for organisations to exploit their idle resources to maximise their innovation efforts.

This is the time for an organisation to assess their innovation capabilities and to reposition them for when the economic tides will change.

This slideshow shares how to determine your innovation capability, and what to do in these times with regards to being innovative.

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Innovation In The Downturn

  1. 1. Innovation in the Downturn Afrivate 26 March 2009
  2. 2. Looking at the Landscape
  3. 3. How do you expect the economyto look at end of 1st quarter 2009? *Compared to September 2008 McKinsey Global Survey : Economic Condition Snapshot (February 2009)
  4. 4. How active shouldgovernment’srole be in the economy, since the startof the downturn. McKinsey Global Survey : Economic Condition Snapshot (February 2009)
  5. 5. Where shouldgovernmentfocus their efforts ? McKinsey Global Survey : Economic Condition Snapshot (February 2009)
  6. 6. What stepshas your company taken to face the downturn? McKinsey Global Survey : Economic Condition Snapshot (February 2009)
  7. 7. What is Innovation?
  8. 8. Idea to Tangible Exploit to Commercial Success New Idea Invention Innovation Invention Process Innovation Process Innovation is therefore much morethan invention Need to successfullycommercialize the invention Trott2005
  9. 9. Why is Innovation important?
  10. 10. productInnovation Funnel William B. Rouse, “Improvement & Innovation Improvement & Innovation” 2007
  11. 11. processInnovation Funnel Simulation Modeling phase Debriefing session workshop Next simulations Idea Focussed s process development projects Duration ca 3 months
  12. 12. Innovation funnel across extended enterprise
  13. 13. The Competitiveness Challenge Competitive Enterprise Continuous Improvement Green Fields Innovation Product Incremental Innovation Innovation Radical Innovation Operate Optimise Process Innovation Technology Innovation Blending Innovation and Operation Innovate Operate Innovate
  14. 14. The Innovation Capability Dilemma Innovation Capability Construct Innovation Process Knowledge & Competency Organisation al Support Organisation Strategy & Function & Data & Customer & & Objectives Processes Information Suppliers Management Organisational Construct Innovate Operate ICMA 1 2 Innovate 4 3 5 A More Competitive Enterprise
  15. 15. Innovation has finallyArrived
  16. 16. Currently, 66% of 3000 global executives considerInnovation top 3 priority Less than 50% of executives feel ROIis sufficient Source: BCG Senior management innovation survey 2008
  17. 17. Currently, • Understand the customer Strengths | • Executive LevelSupport • Speed of delivery • Discipline of Delivery | Weakness • Managing Risk • Partnering with Others • Earmarking sufficient funds Source: BCG Senior management innovation survey 2008
  18. 18. Types of Innovation • 3 Life Cycles – ProductLife Cycle – TechnologyLife Cycle – EnterpriseLife Cycle • Dealing with Darwin – 15 Types of Innovation
  19. 19. Geoffrey Moore’s 15 Innovation Categories
  20. 20. The Economic Good Times Scenario Improvement Programmes Infrastructure Analysis Innovation Process Re-assessment Assessment Knowledge & Competency Improving Innovation Capability Organisational Support Identify opportunities, Deploy, refine, generate ideas and Portfolio Executing Innovation Initiatives formalise and exploit concepts, and Management opportunities determine feasibility Continuous monitoring and improvement of operations Operations Generating revenues and funding innovation
  21. 21. The Economic Bad Times Scenario Improvement Programmes Infrastructure Analysis Innovation Process Re-assessment Assessment Knowledge & Competency Improving Innovation Capability Organisational Support Identify opportunities, Deploy, refine, generate ideas and Portfolio Executing Innovation Initiatives formalise and exploit concepts, and Management opportunities determine feasibility Continuous monitoring and improvement of operations Operations Generating revenues and funding innovation
  22. 22. How innovation fit are you?
  23. 23. Innovation Maturity Fitness? • 5 Levels of Innovation Maturity Fitness Synchronisation of activities and resources Outputs provide sustained competitive advantage Synergised 5 Innovation Aligned 4 Innovation Integrated and aligned activities and resources Outputs are a source of consistent differentiation Supported 3 Innovation Practices, procedures and tools formalised Consistent outputs maintain market share Defined 2 Innovation Need to innovate identified and defined Outputs are inconsistent, but traceable Ad-Hoc 1 Innovation Consumed with day-to-day operations Outputs are inconsistent and unpredictable
  24. 24. What to do in the Downturn?
  25. 25. Ad-Hoc If you are at 1 maturity Innovation • No way of rapidrecovery – Get expertise’s help in
  26. 26. Supported If you are at 3 maturity Innovation • Obtain partialhelp from experts
  27. 27. Synergised If you are at 5 maturity Innovation • Adjust your ideafilter • Harvest ideas to solve problemsrelatedto the downturn – How to cut costs – Hire better people for less • Adjustyour feasibility filters • Go to portfolio and re-align – Reposition for when market turns
  28. 28. If you are at ? maturity unknown • Keep expertise • Cut costs • Negotiate with suppliers • Find shortest route to new ways to do business – Different products – Cheaper processes – New markets
  29. 29. Innovation Capability Assessment •Assess to determine maturity level, • Identifies best innovation improvement activities
  30. 30. Indutech’s innovation improvement lifecycle Business Unit C Business Unit B Business Unit A Improving Innovation Capabilities Initial Infrastructure Improvement Activities Measure, Assessment Analysis Optimise, Assess (Wednesday Fitness) Innovation Innovation PD, ED, IM, etc Innovation Process Improvement Roadmap(s) Processes Process Process Knowledge & Knowledge & IKN, BI, etc Knowledge & Competency Improvement Roadmap(s) Competency Competency Organisational Organisational Support Organisational Strat, Culture, Org struct, etc. Support Improvement Roadmap(s) Support Specific Innovation (Saturday Game) Implementations Identifying Immediate Pains Identifying Identifying Portfo Analysis/ Measure Current Prototype Concept Concept Develop & lio Exploit Idea &Optimis Innovation Innovation Definition Feasibility Implement Mngm Generation e Projects Project(s) ent Identifying Immediate Opportunities
  31. 31. Thank you

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