1. 1
Managing Innovation Program in Large Organisations
Asoke Das Sarma,
Vice President, Transformation, TCS Business Process Services
27th Sep, 2103

2. 2
Agenda
Innovation – definition
Why Innovation is important but often ignored
Common Mistake in Implementing Innovation in
Large Organisations
Applying Five Phases of Project Management in
Innovation Program
Conclusion & Final Comments
Managing Innovation in Large Organisations

3. 3
Invention and Innovation …
Invention : the discovery or creation of
a new idea ( a material, a product , a
process , a law of physics or anything
new) .
Innovation : the successful
commercialization of an idea.
The idea may result in a new
product / service or a new
way to produce a product /
service.
So, Innovation = Invention + (successful) Commercialisation
Managing Innovation in Large Organisations

4. 4
Innovation … Types
a) Product or Service Innovation :
b) Process or Value Chain Innovation
Collectively,
these two
types covers
the universe
of Innovation
Managing Innovation in Large Organisations

5. 5
Innovation meant profitable growth…...
Managing Innovation in Large Organisations
62% 38%Revenue Impact
39% 61%Profit Impact
86% 14%
Product
Launches
Innovation :
14 : 38 : 61
Me-Too’s &
Value Improvement:
86 : 62 : 39
In a VUCA* World
it means survival…
* Abbreviation for Volatile, Uncertain, Complex, Ambiguous -
a term coined by US Military Academy
• Source : Professors W. Chan Kim & Renée
Mauborgne , Insead , 2004

6. 6
But Large companies are often focused on
current operations only… but
Why companies shun
Innovation* :
• Short term focus of the
management (next
quarter focus)
• Lack of time and
resource
• Fear of failure and
inability to manage the
“Innovation Program”
Managing Innovation in Large Organisations
Current
Competition
for the
present
Future
Competition
for the
future
Performance Gap
Optimisation
Opportunity Gap
Innovation
* Source : A Note on Corporate Entrepreneurship: Challenge or
Opportunity? | Bhaskar Chakravorti | Jun 25, 2010 U

7. 7
Three Deadly mistakes Organisations make
in Driving Innovation
Managing Innovation in Large Organisations
× Strategy Mistake :
Start Big Bang Innovation initiatives without clear strategic themes -
spreading innovation efforts too thinly.
× Structure/Process Mistake :
Expect (and Use) structure , organisation and processes that are
optimised for running BAU operations, to bring in radical Innovation
× Skill Mistake :
Place bright technical talent (who may lack leadership/business skills)
in-charge of Innovation. Innovation is fostered through collaboration
among cross functional teams.
How to avoid these traps during 5 phase of Innovation Cycle (initiation , planning,
execution , monitoring and control, closing) and succeed in “Managing Innovation”

8. 8
Phase 1 : Initiation
 Idea Collection is good but first thing is to
determine the Innovation Strategy and decide the
Innovation theme. Ideas to be collected across
these themes and not just random ideas
 Communicate adequately across the Organisation
on why Innovation is important and how each
employee can contribute. Train employees in
Innovation competency.
 Have an end ( goal / objective) in mind before
initiating the Innovation Program
Managing Innovation in Large Organisations
Avoid
Strategy
Trap

9. 9
Phase 2 : Planning
 There are four broad stages in Innovation Life Cycle
– Idea Generation
– Idea Assessment & Prioritization
– Feasibility test and Concept Development
– Launch and commercialization
 The Organization must have meticulous plan of
resources and ( broad) timelines for each of these
at the beginning of the journey .
 Typically an end to end cycle may last for 18 to 24
months while some projects will be faster
commercialized and others may get extended
Managing Innovation in Large Organisations
Avoid
process
& skill
Trap

10. 10
Phase 3 : Execution (1 of 3)
 Idea Generation
- Communicate key Innovation
themes
- Engage the whole
organisation
- Engage outside stakeholders
( customers , suppliers and others) in the
Idea generation exercise by using
appropriate (web) technology
Managing Innovation in Large Organisations
0% 50%
Employees
Business
Parters
Customers
Internal
Sales
Internal R &
D
% of useful ideas contributed
Source : Bearing point
Analysis, 2013
Avoid
Skill
Trap

11. 11
Phase 3 : Execution (2 of 3)
 Idea Assessment
and Prioritization
– It is important to acknowledge all
ideas but it is suicidal to work
with all of them
– Constitute an idea selection
board with cross functional
representatives
– Prioritize not only based on
financial metrics but also
consider non- financial metrics
- Pursue the “Question Marks”
Managing Innovation in Large Organisations
Non –financial Metrics :
 Does it create a new market space ?
 Does it create new rules for
competition ?
 What is the growth potential ?
 Does it overturn competition ?
 Does it exploit discontinuities ?
Avoid
Process
Trap

12. 12
Phase 3 : Execution (3 of 3)
 Concept Development, Launch
and Commercialization
– Use separate dedicated
Project team with some
shared staff
- Divide the labor and manage
the partnership effectively
- Do not use the same process
and metrics through which
the BAU team is measured to
evaluate the performance of “
Innovation team”
Managing Innovation in Large Organisations
Partner
ship
Dedic
ated
Staff
BAU Team
Shared
Staff
BAU : Business as usual
Avoid
Structure
and process
Trap

13. 13
Phase 4 : Monitoring & Control
Managing Innovation in Large Organisations
• Develop critical few metrics to measure the
program health for each phase ( 2-3
metrics)
(Langdon Morris, in his book, “Innovation Master Plan”
had outlined 92 metrics!)
• Investigate and take corrective actions if
metrics performance shows monotonously
negative trend
• Do not get impatient – be flexible and have
tolerance for failure.
“A majority of new ideas fail, but people shouldn’t fear for their jobs when that happens. We
estimate that 61percent of our formal, new product programs never make it, when this
happens, the important thing is not to punish the people involved
- . Gary Pint, retired Sr. VP of 3M
Avoid
Process
Trap

14. 14
Phase 5 : Closing
Managing Innovation in Large Organisations
• Celebrate success
• Give high visibility to winning teams
– who deliver . Reward team
appropriately commensurate to the
gains from the Innovation
• Document learning ( for individual
projects and overall program)
• Start the new cycle – Innovation is
a never ending pursuit – look for the
next big thing.
Avoid
Strategy
Trap

15. 15
Final comments …
Managing Innovation in Large Organisations
Some “common” challenges faced in
Large Organisations :
× Rigidity of structure
× Lack of freedom and flexibility
× Inertia to maintain status quo
× Constraint on external collaboration
(focus to protect existing IP)
× Not adequate management attention
due to insignificant revenue potential
of the new idea
Some “must do’s” for innovation
exercise to succeed :
 Separate dedicated project team ;
separate organisation if needed during
full fledged commercialisation
 Dedicated team must collaborate and
not compete with BAU team,
 Never measure performance of
Innovation team with the metrics used
for BAU team.
 Experiment & Learn –it’s OK to fail
Managing Innovation Program is difficult but companies can only ignore
“innovation” at its own peril.( “Learning is optional and so is survival” – Deming)

16. 16
Thank You
Managing Innovation in Large Organisations