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8 steps to innovation: in action


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Anyone interested in making his team / organization more innovative needs to find out answers to 2 questions: (1) Where do we stand? (2) What to do next? This presentation shows how "8 steps to innovation" approach can be used to do this systematically.

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8 steps to innovation: in action

  1. 1. “8 steps to innovation” in actionVinay Dabholkar, Ph.D.President, Catalign Innovation, 99457-57913www.catalign.comMay 08, 2013Rishikesha T. KrishnanProfessor of Strategy & Corporate PolicyIndian Institute of Management,
  2. 2. What “8 steps” doesn’t advocateFollow step-1 to 8 and you geta ready-to-use culture of innovationBasket of techniquesPick the one you like
  3. 3. “8 steps” approach & 2 questionsWhere do we stand? What to do next?Use one or more steps and Iterate
  4. 4. Where do we stand?Question #1
  5. 5. Don’t trackideapipelineLevel-1:Ad HocIdea MgmtBuzz creationL&DParticipation>10%2Level-2:Foundation(of 3 keyprocesses)8 steps assessment framework1Prototypes>10%(ideas)Response time<1monthParticipation>30%Incubation pipelineReview: QuarterlyLevel-3: Engaged(In Experiments/Reviews)3Idea/person/yr >1Big idea pipeline>10% of revenue# of sandboxes>1Dedicated team(s)SpecialistsLevel-4: Aligned(with strategy)4Success of imple-mented ideas>50%% of rev from innov>20%Level-5: High BattingAverage5
  6. 6. 1How to build anidea pipeline?2 How to improve idea velocity?3How to improvebatting average?
  7. 7. Measuring idea pipelineSmallideasPatentableideasNew productideasNew businessideasID/person/yrPatents/yrPotential biz impact / % of rev100 ideas, $1 B eachMachine tools:100 Cr Rev, 2 Cr each ideaIdea/person/yrTVS Motors: 44Tata Motors: 22Cognizant: 1
  8. 8. Measuring idea velocityExperiments ReviewsResponseTimeIdeas withchampionsShell Gamechanger< 48 hrToyota < 1month% of ideas#of expQuarterly
  9. 9. Measuring batting averageSuccess rate Biz impactSandbox PartnershipNetwork# of activepartnersP&G: 15%->50%Cognizant:$550M/yrAvg responsetime to achallenge# ofsandboxes# oftechnologyplatforms3M: 45
  10. 10. Question #2What to do next?
  11. 11. Build Pipeline Improve velocity Enhance batting averageWhat to improve?Howtosustainthechange?
  12. 12. The Elephant and the Rider modelRider ElephantEffortful EffortlessSlow FastAnalytical IntuitiveSnoozeSet alarmEmotional
  13. 13. To sustain a change:Get Elephant and Rider to go togetherRider: Needs direction(goal, guideline, plan, framework)Elephant: Needs motivation(passion, fun, recognition, pride)Elephant: Will follow a changed path(process change – ATM card removal)
  14. 14. Build Pipeline Improve velocity Enhance batting averageHowtosustainthechange? What to improve?DirecttheRiderMotivatetheElephantShapethePath
  15. 15. Situation #1: Pipeline “uninteresting”• Innovation program launched in Dec 2010• Within a month 40 ideas came from 25 people• None of the ideas was “interesting enough”Is it an Elephant problem or a Rider problem?• A challenge book was created: 20 problems• President’s challenge was launched• 20 responses came – Many were “interesting”It is a Rider problem: Don’t know which problem to solve
  16. 16. Build Pipeline Improve velocity Enhance batting averageHowtosustainthechange? What to improve?DirecttheRiderMotivatetheElephantShapethePathChallengeCampaign (step-2)
  17. 17. Situation #2: Pipeline drying up• Portal phobia – Not interested in one more log-in• Innovation council members felt portal is the only way?Is it an Elephant problem or a Rider problem?It is an Elephant problem: resistance for one more loginAn experiment: Put up a challenge next to cafeteriaWow! A number of responses in a couple of daysAnd everybody passing by is stopping by to read!
  18. 18. In two months, 100+ ideas!Generated gossip around ideas as wellLaunched an “idea wall” on every floor
  19. 19. Build Pipeline Improve velocity Enhance batting averageHowtosustainthechange? What to improve?DirecttheRiderMotivatetheElephantShapethePathIdea Wall (step-1)
  20. 20. Situation #3: Avg response time high• Average response time > 4 months• Dept / Brand heads were not reviewing ideas (online)Is it an Elephant problem or a Rider problem?• Not sure… May be Elephant• Experiment: Took approver’s appointment• Took printouts of 10 ideas to him• In 15 minutes all reviews were done!• Looks like an Elephant problem!• Idea review not getting a priority
  21. 21. Shape the path: Review by walking around3 Reviewers50 ideas, 1 poster / ideaPrototypes if availableIdea authors in the roomReview done in less than an hour!Some idea authors got opportunity to explainOutcomes: Direct implementation, PoC, Parked
  22. 22. Build Pipeline Improve velocity Enhance batting averageHowtosustainthechange? What to improve?DirecttheRiderMotivatetheElephantShapethePathReview by walkingAround (step-5)
  23. 23. Situation #4:Lack of collaboration in group companies• Group Chairman felt there was possible synergy• Nothing was movingIs it an Elephant problem or a Rider problem?100 prototypes on display in 3 months!Group Chairman visitedA mini-sandbox
  24. 24. Build Pipeline Improve velocity Enhance batting averageHowtosustainthechange? What to improve?DirecttheRiderMotivatetheElephantShapethePathSandbox + Chairmanvisit (step-7)
  25. 25. The book has many more options!
  26. 26. Build Pipeline Improve velocity Enhance batting averageHowtosustainthechange? What to improve?DirecttheRiderMotivatetheElephantShapethePathPain-Wave-WasteCatalyst/MentorsDomains of actionInternal role modelCommunity ofpracticeEmotional appealIdea mgmt processBuzz creationL&DLow-cost High-speedExperimentationMake idea stickyReward failuresCreate a LabChampion ideasDefine reviewchecklistEffective reviewInternal venturefundBuild a sandboxBaseline rateLast experiment firstConduct pre-mortemAffordable lossCreate a platformBalance portfolio
  27. 27. SummaryPipelineVelocityBatting avgDirect RiderMotivate ElephantShape the PathLeve-1 to 5Where do we stand? What to do next?PipelineVelocityBattingavg
  28. 28. Thank You related links: site:Vinay’s blog:Rishi’s blog: you read the book  article relatedto this presentation: