1.
Issues in Public Sector Innovation 19 January 2010 DIISR Tim Kastelle

6.
Innovation – some definitions <ul><li>Creating something with economic value </li></ul><ul><li>Putting a new idea into use </li></ul><ul><li>Converting an idea into revenue </li></ul><ul><li>Configuring an idea so that it can be replicated </li></ul>

7.
Innovation is More than Just New Products <ul><li>“ (Economic) development in our sense is then defined by the carrying out of new combinations” </li></ul><ul><ul><li>J.A. Schumpeter (1912) The Theory of Economic Development </li></ul></ul>

8.
Schumpeter’s Forms of Innovation <ul><li>The introduction of a new good, or a new quality of good (or service) </li></ul><ul><li>Introduction of a new method of production </li></ul><ul><li>The opening of a new market </li></ul><ul><li>Developing a new source of supply </li></ul><ul><li>Changing the structure of an industry </li></ul>

9.
The Business Model translates inputs into outputs Source: Open Innovation by Henry Chesbrough

10.
Why this …

11.
… not this? (photo: flickr/Martin Charbonneau Photographe

12.
<1> Ideas are cheap

13.
(photo: flickr/ARKTINA)

14.
(photo: flickr/johnkoetsier)

15.
<2> Invention is not Innovation

16.
Invented: 1823 Built: 1998 Sold: Never

17.
Invented: 1968 Built: 1974 Sold: 1981

18.
Invented: 23 times before Edison!

19.
So why do we say that Edison invented the light bulb?

21.
<3> Innovation is Evolutionary

22.
(photo: flickr/johnkoetsier) Variety

23.
Selection

24.
(photo: flickr/deVos) Replication

25.
Innovation is Evolutionary <ul><li>Invention is the creation of variety </li></ul><ul><li>Innovation is a process that includes all three steps: </li></ul><ul><ul><li>Variety: creating new ideas </li></ul></ul><ul><ul><li>Selection: choosing the best ones </li></ul></ul><ul><ul><li>Replication: getting them to spread </li></ul></ul>

26.
Innovation Problems

27.
<1> Our Problem is Getting Ideas To Spread

28.
The Innovation Value Chain

31.
Actual Organisations

32.
<2> Poor Fit Between Innovation & Strategy

33.
Example Firm – Value Statement <ul><li>Success is built on our values of </li></ul><ul><ul><li>Professionalism </li></ul></ul><ul><ul><li>Integrity </li></ul></ul><ul><ul><li>Respect </li></ul></ul><ul><ul><li>Innovation , and </li></ul></ul><ul><ul><li>Teamwork </li></ul></ul>

34.
Interview with Manager of Corporate Strategy <ul><li>“ So I want to get to a spot where the strategic plan is short and concise and pretty much future proof, it doesn’t necessarily change, we continually test it, but it’s there and provides that beacon towards the future and then we continue working towards delivering it. The process will be about testing it and the assumptions behind it and making sure it’s robust and we haven’t quite got there we’re just moving to that sort of space now.” </li></ul>

35.
<ul><li>Manager: Yes, so – but I must admit I haven’t been really close to the innovation stuff. </li></ul><ul><li>John: I was wondering to what extent you could see innovation playing a role in delivering strategy. How would that work? </li></ul><ul><li>Manager: Yes, but I haven’t thought through that. </li></ul><ul><li>John: Okay. </li></ul><ul><li>Manager: No I haven’t thought through that, so I think yes there is a – [us] saying we will be an innovative company, what is the... (starts mumbling – can’t be transcribed) </li></ul>

36.
Summary of Interviews with 12 top level managers

37.
<3> Short-Term Focus

38.
The three horizons: a portfolio approach to strategy

39.
Balancing the 3 horizons

40.
What is an Innovation Culture?

41.
Shares a language

42.
Generates ideas, not too attached to them

43.
<ul><li>Has good </li></ul><ul><li>selection processes </li></ul><ul><ul><li>Identifies best ideas </li></ul></ul><ul><ul><li>quickly & cheaply </li></ul></ul><ul><ul><li>Learns from failures </li></ul></ul>

44.
Can get ideas to spread

45.
Links Innovation to Strategy

46.
Develops an Innovation Portfolio

47.
Thank you! timkastelle.org/blog/