Examination of innovation types final split deck b
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7. Exploring and selecting innovation types, models & philosophies Service / Experience innovation Design Led Innovation Needs Based Innovation Open Innovation Technology Led Innovation Business Model Innovation Operational Innovation R&D Innovation Identify Potential Screen & Rationalize Management Innovation Approach Type Summary – Nine Strategic ‘Types’ of Innovation Models Establish Strategy Evaluate Skills
8. Innovation Management Universal Need Environment Stage Key Sub Anchor Capabilities & Competences (triggers) Service / Experience innovation Design Led Innovation Needs Based Innovation Open Innovation Technology Led Innovation Business Model Innovation Operational Innovation R&D Innovation Consideration Factors Strategies/ Design Essentials of the Types of Innovation Approach IP Aware & Sharing Trust & Relationships Problem Definition Wisdom of Many Structured Discovery Process Search for Unarticulated Needs Opportunity Landscape & Uncontested Market Space Needs first approach NOT ideas VP: Customer Segments & New Channels Clear Revenue Streams & Cost Structures Identify Key Partnerships & Relationships Key Resources & Activity Clarity designer attitude & philosophy Designing in novelty, function & aesthetics Integrated design in all considerations Context, visualizing and framing Relevant & Valuable to Client Lives Co-create & Co-design Front stage & back stage needs Turning Services into Tangibles Correlation & Convergence Point Unlock the Business Value Seeing beyond incremental to evolutionary Collaborative & Cross Functional Superior or Evolutionary Champion & Advocate for Change Clarity of Purpose & Potential Need Disruptive Potential ‘ Step’ change in performance Understand ‘points of pain’ Engage hearts & minds, sense of urgency New ways to work & behaviours Management innovation Unchallenged Orthodoxies/ Beliefs Unarticulated Needs of Customers Underleveraged Competencies Underappreciated Trends
9. Investigating “Types” using this framework Execution Strategic Alignment to Vision & MOST (Mission, Objectives, Strategies & Tactics) . 4.Go-to-market execution 5. Enabling and Scalable Infrastructure Common Environment, Networking & Collaboration-Building Tools 3. Systematic Innovation Process 2. Trajectories, Discovery, Insight Identify Potential Establish Strategy Screen & Rationalize Evaluate Skills 1. Strategic Context Desire & Motivation to Innovation Existing Capabilities & Skills Strategies, Strategic Intent Resources and funding Trend Spotting Scenario Planning Product Development Launch Software Infrastructure Scouting Voice of Customer Align Market & Customer Environment Existing Product/Service Portfolio and Capabilities Organizational Readiness
11. Open Innovation We believe these four critical factors are distinctive to this type to highlight and for you to consider carefully . Open Innovation Wisdom of Many Intellectual Property Problem Definition Building Trusted Relationships
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13. Resource Considerations : Finding the best partners, engaging the partners and customers, vetting ideas and intellectual property, abilities to make clear connections, networking emphasis. Culture & Climate : Establishing the value of an open collaborative model and its more different social practices Business Development/Partnering External Network & Collaborative Management & Protocols IP Transfer Social Media Application Strategic Development : Developing a partnering strategy and identifying the best possible innovation partners, concern for constant fit and relevance of propositions Software / Information Networks Outward facing collaboration & contribution positions Interactive Value Creation : Degree of Connectivity x Degree of Interactivity x Degree of Sharing Absorptive Capacity. Relationship Capacity & Multiplication Capacity Fast concept work Rigorous Business Case : factors for projected value captured, risks highlighted, licensing costs outlined, opportunity costs of use of key resources, likely impacts, need for ‘hard’ evidence Communications : Establishing the need for open innovation, creating channels and messages to third parties, clearly identifying innovation needs, conceptual thinking, clarifying value and need Legal : Establishing a rapid vetting process for the provenance of new ideas, reflecting on the sharing of IP, shared meaning & solutions. Shared market analysis and trend spotting/ evaluation Scouting Networking Crowd sourcing Market & Customer Related Research Open Innovation Contests Co-branding/Co-marketing Trajectories, Discovery and Insight How ideas are GENERATED changes: Crowdsourcing, etc but how ideas are managed remains the same Incorporate partner goals in evaluation and selection of ideas Distributed ‘Co-creation ‘in a web of networks to explore outside the boundaries of the Org. Incorporate legal and IP into the innovation team The growing role of the customer within the open collaboration process OI Readiness Strategic Context Trajectories, Discovery and Insight Go To Market Enabling and Scalable Infrastructure Systematic Innovation Process The consistent flow of knowledge to explore breaking opportunities Managing more on platforms and through ecosystems A clarity within the value proposition but flexible to explore alternatives The management of internal and collaborative tensions “ We use people to find content, we find content to find people”
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16. R&D Led Innovation We believe these four critical factors are distinctive to this type to highlight and for you to consider carefully . R& D Led Innovation Deep Technical Capabilities Collaborative and Cross-Functional Research and Methodologies Unlock Business Value
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18. Business Case: justify, validate, emerging metrics & measurement of returns Lifecycle Recognition Management- central and distributed timeline differences Common Environment, Networking & Collaboration-Building Environment Scouting Networking Trend Spotting Regular Innovation Development Program is Established Synthesize, theorize, explore, hypotheses, clarify, investigate, design, develop, test, implement and improve Scalable, repeatable, end-to-end need, relationship focused Strategic intent : Leadership in creating “new to the world “technology that create defensible intellectual property, and unlock value Communications: clear internal communications about targeted market opportunities. More restricted and limited external communication. Resource Considerations: Increase the stock of knowledge, broad & narrow ‘in-house’ expertise, responsiveness, commercially aware, experimental learning, profit-sharing view Capability & Competency : Creative thoughts, experimentation, selection, testing, market appraisal, resolution of scientific and technical uncertainty, to ‘see beyond’ for potential discovery Culture & Climate : Focus on investigation and research into critical problems. Careful to avoid “blockbuster” mentality. Reward mentality for orientation, project delivery emphasis and resolving roadblocks Metrics & ROI must be well articulated constantly for investments made Road mapping High Knowledge Acquisition Partnering with universities, independent research institutes, government labs, open market Seeing beyond Science & Technology shift “ Blue sky” & “White spaces” Carefully planned market launch Tight linkages with product Development and commercialization Granting ‘degrees’ of freedom to researchers Intellectual Property Mining Well-documented research methodologies Innovation internally driven by R&D Research &Development Innovation Strategic Context Trajectories, Discovery and Insight Go To Market Enabling and Scalable Infrastructure Systematic Innovation Process “ Recognition return “of positive results from enhanced R&D work Linkage to Growth strategy and business platforms Established levels of internal collaboration ‘ Controlled ‘risk taking End result orientation to market
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21. Operational Innovation We believe these four critical factors are distinctive to this type to highlight and for you to consider carefully . Operational Innovation Knowing Your Pain Points Step Change in Performance as Goal Current Sources of Inertia New Ways of Working& New Behaviours
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23. Business Case : justify, validate, emerging metrics & measurement of returns Lifecycle Management approach Primary Focus Time scale recognition & scalable considerations Areas of Operational Innovation opportunity : -Customer Loyalty -Cycle time reduction -Development process -Time to service initiation -Outsourcing -Shared Services -Integrated Global Delivery - Cost Drivers - Pain points for customers Clear Investigation & Validation methods Regular Innovation Development Program is Established and Separate from these more breakthrough initiatives Scalable, repeatable, well integrated end-to-end need. Strategic Intent : redesign of operational processes to achieve internal breakthroughs in innovation performance Communications need to articulate the problems and be disciplined Resource Considerations : This is not TQM/ Six Sigma, Incremental, it is thinking through a ‘step-change ‘and needs a high competency of change readiness, industry awareness, shared accountability, objectivity,, risk management Capability & Competency Build Elements : taking a more holistic approach to redesigning for breakthrough results as markets mature and change, products and processes shift and the result in performance diminishes . Strong positioning skills & business development process Culture & Climate ‘ must’ alter the ‘status quo, realign and commit fresh resources, HR reinforces new behaviors, watch for systemic inertia as trigger for change For operational innovation to succeed, the process must be persistent, constantly considering new ideas with clearly defined evaluation criteria Quick, accurate measurement of benefits and ROI impact ‘ The invention and deployment of new ways of doing work’ Ongoing targets: Achieve scale, breakthrough in efficiency , flexibility, effectiveness and agility Process expertise Engineering & Design Skills Operational innovation Rapid testing and deployment of new operational processes Strategic Context Trajectories, Discovery and Insight Go To Market Enabling and Scalable Infrastructure Systematic Innovation Process Degree of change and strategic need Change measurement criteria 1) cost drivers of the business, 2) competitive differentiation points, 3) problem areas for satisfaction points for customers. Exploring upstream and downstream potential & implication assessments Early warning systems awareness
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26. Technology-led Innovation We believe these four critical factors are distinctive to this type to highlight and for you to consider carefully . Technology-Led Innovation Clarity of Purpose & Potential Disruptive Potential Evolutionary or Superior to Existing Advocate of Change Leads
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28. Business Case : justify, validate, disruptive nature or supporting technology clarity/ role Lifecycle Management: links of technology to R&D Launch & Measure Impact & Effects Game changing or Incremental Time scale recognition & scalable considerations Common Environment Needs: Platforms, Networking & Collaboration-Building Environment Scouting Networking Trend Spotting Execution Management dependant on solution sought Synchronize Build Manage Monitor Measure Scalable, repeatable, end-to-end need, relationship focused Providing Consistent Feedback for updates, modification Strategic Position : Addresses the effective identification, selection, acquisition, development, exploitation and protection of technologies and their contribution to innovation. Resource Considerations : Does technology lead or support the application of concepts? Has it the potential for disruption or promoting/ supporting through technology change ? Is the technology superiority or evolutionary.? Does it advance a market position & extend business performance based on the innovation strategy to be taken? Capability & Competency Build : Curiosity, building of distinctive competencies, clarity of purpose., having a strong stable plan of advocacy if technology can ‘disrupt’ Piloting Prototype & Testing Environment Metrics & ROI: acceptable, feasible and enduring in value to customers Growth platform validation External supporting networks for application of concept Market ‘pull’ or technology ‘push’ Orientation- needs based diffusion strategies Synchronization & Visibility New or Unexpected markets to watch for Strong linkage to design innovation in synthesis potential, style and humanity considerations and science and technology ‘’ Crossing the technology chasm’’ for adoption success Pattern recognition Focus on cross development and integration skills Clear Links between engineering, research and design Value chain opportunities Adoption/ Diffusion understanding Culture & Climate: Highly skilled and focused competencies, open environment to explore and experiment, looking to extend beyond the existing Technology-led Innovation Strategic Context Trajectories, Discovery and Insight Go To Market Enabling and Scalable Infrastructure Systematic Innovation Process Utility or Mechanism decision for Competitive Advantage
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30. MI OI RDI SEI NBI DI BMI OpI TI Strategic Considerations : we’re really serious about innovation. In terms of the future of management, we’re at the beginning of what will be a fairly long journey where innovation lies at the very core Capability & Competency issues : In a company you often can't change what managers do in any direct way. You can only change it by changing the processes that govern their work that will allow organisations to reach new performance thresholds Strategic Development : Developing a partnering strategy and identifying the best possible innovation partners, concern for constant fit and relevance of propositions Capability & Competencies based upon ‘ Distributed’ Co-creation in a web of networks of suppliers and independent specialists Strategic Partner and Preferred Choice Clarity Strategic intent : Leadership in creating new to the world ideas that create defensible intellectual property, and unlock value Capability & Competency : Creative thoughts, experimentation, selection, testing, market appraisal, resolution of scientific and technical uncertainty, to ‘see beyond’ for potential discovery Strategic Understanding of Service Systems- language, taxonomy, value propositions, transition points to service value, the differences between product & service needs. Capability & Competency : High levels of ‘contact’ intensity and interactivity, empathic, discovering latent needs, invest in wider sources of knowledge for skilled, creative, open minded people Strategic Need : A rigorous controlled approach to collecting needs, to then formulating growth strategies and generating and validating breakthrough ideas. Ca pability & Competency to manage projects from discovery to delivery based on rules-based disciplines, turning job outcomes into fresh insight, emphasis on market research Design thinking can drive Strategy : visualize the future, create new markets, new offerings, different business models with new applications, new ways to connect with customers and in different collaborations Capability & Competency : understanding contexts, framing problems, exploring alternatives, envisioning solutions, listening, interpretation and addressing problems or concepts Strategic Considerations : BM are bound inextricably to the type of philosophy you want to pursue, it is a design process within its self, the heart of it is the value to the consumer and how it links to other strategic innovation initiatives. It is the point of departure where all else flows Capability & Competency issues : process tensions, content issues and context paradoxes, system design understandings Strategic Intent : redesign of operational processes to achieve internal breakthroughs in innovation performance Capability & Competency Build Elements : taking a more holistic approach to redesigning for breakthrough results as markets mature and change, products and processes shift and the result in performance diminishes. Urgency need Strategic Position : Addresses the effective identification, selection, acquisition, development, exploitation and protection of technologies and their contribution to innovation. Capability & Competency Build : Curiosity, building of distinctive competencies, clarity of purpose., having a strong stable plan of advocacy if technology can ‘disrupt’ Strategic statements Capability & Competency statements Summary
31. Cu lture & Climate: We need to change our orthodoxies that bound our thinking —the habits, dogmas, and conceits we have never taken the trouble to challenge Resource Considerations: We need to quickly discover that there is still a big gap between our rhetoric of innovation and the reality . Culture & Climate : Establishing the value of an open collaborative model and its more different social practices Resource Considerations : Finding the best partners, engaging the partners and customers, vetting ideas and intellectual property, abilities to make clear connections, networking emphasis. Culture & Climate : Focus on investigation and research into critical problems. Careful to avoid “blockbuster” mentality. Reward mentality for orientation, project delivery emphasis and resolving roadblocks Resource Considerations: Increase the stock of knowledge, broad & narrow ‘in-house’ expertise, responsiveness, commercially aware, experimental learning, profit-sharing view Culture & Climate is consistently on people issues: behaviors, service culture, deep insight methods, skill retention, thinking and service mindsets Resource Considerations : dynamic configurations that rapidly change and need to respond, that focus on solutions that people see compliment their lives, quick team assembly, diversity of views Resource Considerations : the structure for turning job outcomes into insight, insight into products that meet customer needs correctly through a very collaborative internal process Culture & Climate needs to provide a sequenced and focused idea generation environment based on customer expertise. Culture & Climate- people first, business second- the human side of innovation Resource Considerations : design treats innovation as holistic, synthesis, integrative, generative and optimistic in nature, it is visual and interactive Cu lture & Climate: Alignment to existing practices or degree of separation and the impact Resource Considerations: Knowledge of business resources available/ needed, supporting processes that can be different, the target groups and channels to focus upon. Strategic development , communications and broad negotiation experience. Resource Considerations : This is not TQM/ Six Sigma, Incremental, it is thinking through a ‘step-change ‘and needs a high competency of change readiness, industry awareness, shared accountability, objectivity,, risk management, shared reporting, engaging hearts and minds in the need for change Culture & Climate ‘ must’ alter the ‘status quo, realign and commit fresh resources, HR reinforces new behaviors, watch for systemic inertia as trigger for change Resource Considerations : Does technology lead or support the application of concepts? Has it the potential for disruption or promoting/ supporting through technology change ? Is the technology superiority or evolutionary.? Does it advance a market position & extend business performance based on the innovation strategy to be taken? MI OI RDI SEI NBI DI BMI OpI TI Culture & Climate: Highly skilled and focused competencies, open environment to explore and experiment, looking to extend beyond the existing Climate & Culture statements Resource Considerations statements