Improving the innovation process with informal networks
1. Organizational X-Ray
Improving the innovation process with
informal networks
London, 8.7.2011
Andrea Pesoli @anpesoli
andrea.pesoli@open-knowledge.it
2. Agenda
• Overview & Methodology
• Key findings
• Next steps
Open Knowledge srl – Organizational X-Ray: improving the innovation processs 07/2011 (p. 1)
3. Project overview
• Organizational network analysis was used to study knowledge and
innovation flow in a leading domestic appliances manufacturer and
distributor (with operations in 26 countries)
• The ONA was conducted across across selected parts of the
company to principally identify target communities to
support the implementation of an Idea Management
platform and - ultimately - the achievement of superior
innovation performance
• A secondary objective was to identify opportunities for improved
communication and engagement across the organisation
Open Knowledge srl – Organizational X-Ray: improving the innovation processs 07/2011 (p. 2)
4. Innovation from a network perspective
Explore Evaluate Engage Exploit
Broad based scanning of the New ideas or inventions necessarily need to Finally, for those chosen
environment, looking for new progress through an acceptance filter which initiatives the task is then to
innovation opportunities is usually in the form of management convert the ideas into a
acceptance and approval to invest in an deliverable solution or
idea’s progression product from which a
business benefit is gained.
Lock Lee L., Kjaer C., “The 3 E’s of Innovation: A
Networking Perspective”, 2007
Open Knowledge srl – Organizational X-Ray: improving the innovation processs 07/2011 (p. 3)
5. ONA Demographics
• Number of nodes: 3397
• Overall response rate: 59% (1988 respondents)
Age Tenure
Open Knowledge srl – Organizational X-Ray: improving the innovation processs 07/2011 (p. 4)
6. Target population by Country
10
250
500
1500
Open Knowledge srl – Organizational X-Ray: improving the innovation processs 07/2011 (p. 5)
8. The 5 proposed survey questions
• These five questions are aimed at identifying people that you believe play strong
innovation roles.
Relationship Survey Intensity/Frequency
1. From time to time
Of all of your contacts, who do you think is a source of 2. Good source
Explore
new ideas? 3. Prolific source
4. Outstanding source
1. Fair judge
2. Insightful judge
Evaluate Who could be a good judge of the potential of an idea?
3. Good judge
4. Excellent judge
1. Rarely consider
Who could help you influence management to support 2. Might consider
Engage
or invest in a new idea? 3. Likely choiche
4. Definite choice
1. Rarely consider
When an idea has gained management approval, who
2. Might consider
Exploit would you choose to be involved in its execution/
3. Likely choiche
making sure it works?
4. Definite choice
1. Rarely consider
Of all of your contacts, which ones tend to energise
2. Might consider
Energise and motivate you most? (in terms of coming up with
3. Likely choiche
new ideas and implementing them)
4. Definite choice
Open Knowledge srl – Organizational X-Ray: improving the innovation processs 07/2011 (p. 7)
9. Agenda
• Overview & Methodology
• Key findings
• Next steps
Open Knowledge srl – Organizational X-Ray: improving the innovation processs 07/2011 (p. 8)
10. Network overview
Evaluate
Explore
Engage
Density Ties Average Compactness Density Ties Average Compactness Density Ties Average Compactness
(0-1) distance (0-1) distance (0-1) distance
0.0012 9657 8.446 0.030 0.0011 6614 9.053 0.012 0.0010 5749 8.433 0.008
Energise
Exploit
Density Ties Average Compactness Density Ties Average Compactness
(0-1) distance (0-1) distance
0.0014 7859 9.463 0.030 0.0010 5303 11.553 0.007
Open Knowledge srl – Organizational X-Ray: improving the innovation processs 07/2011 (p. 9)
11. Network overview – Unit contribution for each network
Filtered networks: as presented below
Open Knowledge srl – Organizational X-Ray: improving the innovation processs 07/2011 (p. 10)
12. Explore Network Of all of your contacts, who do you think is a
source of new ideas?
Tie strenght: > 2
Indegree: > 10
UK
Russia
Turkey
France
Portugal
Italy Italy
AFC
2%
Head
0%
HR
1%
Industrial
13%
Marketing
6%
R&D
29%
Sales
35%
France
Service
3%
Supply Chain & IT
9%
Poland
Open Knowledge srl – Organizational X-Ray: improving the innovation processs 07/2011 (p. 11)
13. Engage Network Who could help you influence management to
support or invest in a new idea?
Tie strenght: > 2
Indegree: > 7
Russia
Turkey
Spain
Italy
UK
Poland
AFC
4%
Head
1%
UK
HR
2%
Industrial
17%
Marketing
6%
R&D
27%
Sales
32%
Service
3%
Supply Chain & IT
8%
Open Knowledge srl – Organizational X-Ray: improving the innovation processs 07/2011 (p. 12)
14. When an idea has gained management approval,
Exploit Network who would you choose to be involved in its
execution/making sure it works?
Tie strenght: > 2
Indegree: > 8
Italy
Poland
France
Italy
UK
Turkey
UK
AFC
2%
Russia
Head
1%
HR
2%
Industrial
13%
Marketing
4%
R&D
41%
Portugal
Sales
26%
Service
2%
Supply Chain & IT
8%
Open Knowledge srl – Organizational X-Ray: improving the innovation processs 07/2011 (p. 13)
15. Focus Explore on IDD, Marketing and Product Technical
Tie strenght: > 2
Indegree: > 3
Poland Russia
Italy
Turkey
Poland
Italy
Italy
Italy
UK
Open Knowledge srl – Organizational X-Ray: improving the innovation processs 07/2011 (p. 14)
16. Exchange Analysis: identify potential Demand vs Supply gaps
“A” nominates “B”, who provides A with
critical information
A B
Demand Supply
“A” creates a demand for “B” supplies value to “A”
value on “B”
Open Knowledge srl – Organizational X-Ray: improving the innovation processs 07/2011 (p. 15)
17. Supply/Demand – Explore (unit)
Open Knowledge srl – Organizational X-Ray: improving the innovation processs 07/2011 (p. 16)
20. Key player for the “explore” and the “engage” phase
Mencarini Adriano
Dag Turgay
Dalla Torre Barbara
40
50
Meloni Maria Grazia
unitAg
40 35 a AFC
unitAg Faraon Diego
a Head
AFC
Head
Farinelli Gianluca a HR
Faraldi Paolo
evaluate
30
HR a Industrial
explore
Industrial
Marketing
Perticaroli Cristina a Marketing
R&D
20 Sales 30 a R&D
Service
Supply Chain & IT Frattesi Stefano a Sales
a Service
10
Pracchi Pier Andrea a Supply Chain & IT
Sablin Sergey Nikolaevich
Praolini Paolo
Pecci Laura
0
25Mazzucato Franco
0 10 20 30 40
Golecki Pawel
evaluate
Santarelli Enrico
Milone Davide Dobson Alistair
Goldsmith James
Bartocci Luigino
Bartocci Massimo
20 Bartoccetti Pietro
Colciago Luca
25 30 35 40 45 50
explore
Open Knowledge srl – Organizational X-Ray: improving the innovation processs 07/2011 (p. 23)
21. Selecting the best people
Explorers
Evaluators
Engagers
Energisers
Leader
Broker
Leader
Broker
Leader
Leader
100 25 25 25 50 25
We look at the Explore phase in Evaluators help validate The ‘Engage’ phase is the
two ways. early stage ideas. critical phase where
promising ideas need to
The first is looking at how well the The look both for the engage management
ideas people are connected key evaluators (leaders) support for progression. All
(leaders). and at those who can countries/BUs must be
“bridge” this network present.
We also look for people that (brokers).
“bridge” diverse communities and Energisers encourage
are therefore best placed to others by strength of their
facilitate breakthrough innovation character or achievements
(brokers).
All countries/BUs must be present.
Open Knowledge srl – Organizational X-Ray: improving the innovation processs 07/2011 (p. 24)
22. Agenda
• Overview & Methodology
• Key findings
• Next steps
Open Knowledge srl – Organizational X-Ray: improving the innovation processs 07/2011 (p. 25)
23. Wrapping up
• The ONA has been able to identify key roles and individuals that
are best placed to facilitate a significant improvement in
innovation success
• Together with the upcoming implementation of the Idea
Management platform, we believe that this community of
innovation brokers and proponents can bridge the Explore/Exploit
divide to ensure future innovation success
• The analysis also succeeded in providing insights on how
performance improvement can be achieved through targeted
efforts to align the actual organization with the informal
collaboration networks.
Open Knowledge srl – Organizational X-Ray: improving the innovation processs 07/2011 (p. 26)
24. Innovation can be “social” too!
Ideas are posted on the
community, get
commented and voted
Open Knowledge srl – Organizational X-Ray: improving the innovation processs 07/2011 (p. 27)
25. Next steps
• Compare the results of this analysis with other companies
• Refine the “ROI” model of such a project, with specific metrics to
assess the improvement of a company innovation capabilities
• Develop a sound innovation leadership model, as the “Energise”
network seems not really effective
• Develop a “social analytics” (software) module that can
automatically present a network view of the interaction that are
happening on (internal) communities
Open Knowledge srl – Organizational X-Ray: improving the innovation processs 07/2011 (p. 28)
26. People connections from discussion threads
Nodes are sized by activity (posts
made or received)
This map can be used to assess how and where executive engagement is
happening
Open Knowledge srl – Organizational X-Ray: improving the innovation processs 07/2011 (p. 29)
27. Idea Affinities
Maps like this can
characterise the ‘crowd’
effect. Which cluster of
ideas are getting a
quorum of support.
The map shows how ideas are connected based on the number of common people
commenting on the idea
Open Knowledge srl – Organizational X-Ray: improving the innovation processs 07/2011 (p. 30)
28. Organizational X-Ray
Improving the innovation process with
informal networks
London, 8.7.2011
Andrea Pesoli @anpesoli
andrea.pesoli@open-knowledge.it
29. Open Knowledge
Our mission
Bringing the enterprise 2.0 paradigm and
technologies inside the organization to accelerate
performance
Improving the business potential by nurturing
employee participation, customer engagement, open
innovation
Open Knowledge srl – Organizational X-Ray: improving the innovation processs 07/2011 (p. 32)