Unleashing innovation across the value chain


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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.

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Unleashing innovation across the value chain

  1. 1. Unleashing INNOVATION across theVALUE CHAINPresenters: Tarun Gupta, IIM Ranchi Jubin Goyal, IIM Ranchi
  2. 2. INNOVATION WhatInnovation isn’t about greatideas. Innovation is a chainthat requires strength at everylink to succeed.Incremental Improvement:Net Books ContextRadical Breakthroughs : LG Fridge/Washing MachineToyota Battery powered Prius FlipKart SarvaJalCreative Destruction Shaadi.com
  3. 3. Is Innovation Growth ?
  4. 4. Gains of Innovation Product Outcome Process Outcome Other OutcomeSource: NISTADS February’12 Bulletin
  5. 5. Scope of InnovationInnovations are mostly adoption of the market trend in terms of product quality, machineetc. Himachal Pradesh scores better in every aspect of innovation mainly due to the presenceof pharmaceutical and electric goods industry and also due to the presence of PSUs.Source: NISTADS February’12 Bulletin
  6. 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. 7. Weaving Innovation in day-to-day activitiesCase Study: North Delhi Power Ltd. (NDPL)Problem: Shortage of Power supplyI 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. 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. 9. ‘Top-down’ Vs ‘Bottom-Up’Source: Tata innometer
  10. 10. TakeawaysImpact of Organizational environment on creativity:Source: Prof. Teresa Amabile, HBS; creativity & innovation in organizations.
  11. 11. Measuring InnovationPercentage ofRespondents 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. 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. 13. Role of Educational InstitutionsSources of process & product innovation by firms in India:Source: ASCI Journal of Management
  14. 14. Role of Educational InstitutionsAnnual 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. 15. Role of Educational Institutions Access Concepts Services Application CreationSource: http://knowledgecommission.gov.in/
  16. 16. Words of WisdomThere is a way to do it better, find it.Thomas EdisonThank youWe are open to questions now …