capabilities-driven innovation management - konwledge contributions 2015 - linkedin
TRANSCRIPT
All Rights Reserved. Copyright © Louis Bouwer 2015.
Slide #1
Capabilities-Driven Innovation ManagementTM Framework
Research Working PaperSlides
Louis [email protected]
All Rights Reserved. Copyright © Louis Bouwer 2015.
Slide #2
OVO Innovation : Innovation and the Gartner Hype Cycle
Jeffrey Phillips
• “innovation as a
theory” is very mature
concept.
• The emergence of
“innovation as a
competency” is till on
the positive slope of
the Hype Curve.
http://innovateonpurpose.blogspot.com/2014/05/innovation-and-hype-cycle.html
All Rights Reserved. Copyright © Louis Bouwer 2015.
Slide #3
Research Strategy – Theory Construction
Objective #1: “Dumpster Diving”• Being Curious• Observe• Question• Listen
• What does innovation looks like within corporations?• Current state of innovation management?• Observe what top innovators do differently?
Objective #2: “Empirical Theories”• Associations• Connections
• Suggest new definitions.• Develop new models and frameworks.
Objective #3: “Academic Construct”• Idea Experimentation and Testing• Theoretical Explanation or Solution
• Construct theories to explain a phenomenon.
All Rights Reserved. Copyright © Louis Bouwer 2015.
Slide #4
Model for Corporate Innovation Management Knowledge
Industrial Engineering
Systems Engineering
EnterpriseEngineering
OperationsManagement
InnovationManagement
Business ProcessRe-Engineering
EngineeringCorporate Innovation Ecosystem Management
Product
Enterprise Innovation Ecosystem Management EngineeringManagement Innovation for Product Innovation ManagementManagement Innovation for Total Innovation Management
Total
Experience
All Rights Reserved. Copyright © Louis Bouwer 2015.
Slide #5
Process to Develop Corporate Innovation Management Capabilities
Business Systems:Complex & Integrated
Technologies, Processes, Services, Etc.
Automation Optimization
Holistic Approach:Natural Sciences
Business SciencesSocial Sciences
Engineering
Activities:EvaluateSpecifyDevelopImproveDesignPredict
ImplementResources:
People, Money, Knowledge, Information,
Equipment, Energy, Materials, Etc.
Operations Management
Business Process Reengineering
Basic ScienceApplied Science
Capabilities:EfficientEffective
Productive
Technology Management
Increased Competitiveness:Lower Costs
Improve QualityCustomer Satisfaction
Wealth &Brand Recognition
OutputCreative Science
All Rights Reserved. Copyright © Louis Bouwer 2015.
Slide #6
4 Rules - Corporate Survival and Sustainable Growth
#4 Increase Shareholder ReturnMarket Capitalization and Dividends
#3 Increase GrowthMarket, Revenue or Profit Margin Growth
#1 InnovateOrganization, Offering and Experience
#2 Competitive AdvantageGenerate Brand Recognition and Profits
All Rights Reserved. Copyright © Louis Bouwer 2015.
Slide #7
The Challenge – Implementation of Innovation Management
Middle-Class Innovators, stuck in the
Innovator’s Chasm70%
Non Innovators10%
Top Innovators20%
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Slide #8
Crossing the Innovator’s Chasm
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0 1 2 3 4 5 6 7 8 9 10
Acc
um
ula
tive
Gro
wth
Crossing the Innovator's Chasm
Top Innovators
Bottom Innovators
Innovator’s Chasm
Find a simple framework that will enable the development of theories how corporations can cross the innovator’s chasm.
All Rights Reserved. Copyright © Louis Bouwer 2015.
Slide #9
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R&D Operations Management
IPStrategy
R&D ProjectManagement
Engineering ProjectManagement
Engineering OperationsManagement
IP Prosecution Management
Concept PortfolioManagement
BusinessStrategy
IP OperationsManagement
MarketingManagement
Product PortfolioManagement
Sales & SupportManagement
InnovationStrategy
Tech PortfolioManagement
Innovation System – R&NPD LPM Ecosystem
Tacit Knowledge Consumer ProductExplicit Knowledge
Front End of Innovation (FEI) Back End of Innovation (BEI)Technology Portfolio Development (NPD & PLM)
Ideation Implementation ForresterIncubation AccelerationSelection
Discover Deliver PDMADevelopment
Ideation Post Launch EveleensDevelopment ImplementationSelection
Define CommercializeDevelop Design BMGIDiscover Demonstrate
Outcome-Driven Innovation (ODI)(Anthony Ulwick)
Product Management Framework
Open Innovation Model(Prof Chesbrough)
Spiro-LevelTM 3-D Innovation Process Model (Dr Briones)
Launch into the MarketStage-Gate Product
Innovation System(Dr Cooper & Dr Edgett)
All Rights Reserved. Copyright © Louis Bouwer 2015.
Slide #10
Wikipedia : Innovation Process
The innovation process (or system) inside the organization that identifies strategies, business opportunities and new technologies and then develops new capabilities and architectures with partners, new business models and new industry structures to serve those opportunities.
» Anonymous @ http://en.wikipedia.org/wiki/Chief_innovation_officer
• Phases identified from the innovation models:– Phase 1: idea generation or searching for ideas for innovation.
– Phase 2: Selection should be based on both the organisational strategy and on the existing portfolio of projects to spread risks
– Phase 3: Development, turn the (selected) idea into some tangible product, process or service, development and testing.
– Phase 4: Implementation in “the real world”, preparing for customers and marketing activities.
– Phase 5: Post Launch support, this entails the sustaining and supporting of the innovation or even re-innovating it and scaling it up.
– Phase 6: Learning, how the innovation process delivered a new idea.» Eveleens, C. 2010. Innovation management; a literature review of innovation process models and their
implications. Science, 800:900.
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Slide #11
Definition of Innovation
An innovation is the implementation of a new or significantly improved
product (good or service), or process, a new marketing method, or a
new organisational method in business practices, workplace
organisation or external relations.
• The ultimate reason is to improve firm performance, for example by
increasing demand or reducing costs.• OECD, Oslo Manual 2005
Guidelines for collecting and interpreting innovation data, p46
http://www.oecd.org/innovation/inno/oslomanualguidelinesforcollectingandinterpretinginnovationdata3rdedition.htmhttp://www.econ-it2.eu/en/training/5-innovation-management/5-2-types-of-innovation
All Rights Reserved. Copyright © Louis Bouwer 2015.
Slide #12
Proposed Definition for Innovation @ Corporate Level
Innovation is a system that delivers new ideas as unique
solutions (for customers and consumer) in such a way that
the company will generate brand recognition in the market
and wealth for employees and stakeholders.
Where:
New ideas may require sustainable, disruptive or breakthrough
innovation efforts[1] to deliver new improved profit models,
networks, structures, processes, products, services, channels,
brands or customer engagement innovation types[2].
[1] Christensen and Bever, 2014[2] Keeley et al., 2013
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Slide #13
Model for the Diffusion of Product Innovation Knowledge
Education Knowledge
Development Technology
Entrepreneurship Sales
Research Invention
Commercialization Product
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Slide #14
Innovation Effort Classification & Categorization Framework
Class (Christensen) Category Innovation Strategy (PWC) Target Market Outcome (Christensen)
Breakthrough Revolutionary Technology Drivers New Markets Offensive GrowthDefensive Re-PositioningEfficiency Improvements
Disruptive Evolutionary Need Seekers Adjacent Markets
Sustainable Incremental Market Followers Core Market
Organization (Oslo Types) / Configuration
Process Product / Offering Marketing / Experience
Profit Model Process Performance Service
Network System Channel
Structure Brand
Customer Engagement
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Slide #15
Ideation
Tony Swartz Richard St John iDNA (Christensen)
Saturation Curious
Observe Observe
Question Question
Listen
Incubation Connections Associate
Illumination
Verification Solve Problem Experiment
http://brightlifeforall.blogspot.com/2011/11/8-things-for-success.html
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Slide #16
Managing Innovation
Corporate Innovation Management Product Innovation Management
Ecosystem Focus Process Focus
Manage Innovation Process Drive Innovation Process
Strategic Tactical / Operational
Growth P&L
Change Management Project Management
Capabilities Management Commercialization Management
Competitive Intelligence Best Practices
Strategic Alignment (BU & Strategy) Develop Skills
IT Systems & Big Data Support Business Units
Culture Development Identify Mew Markets
Collaboration & Networking Idea Generation
Benchmarking Seed Funding
Governance (Org, Promotions, Careers, Rewards, Decisions etc.) Shelter Promising Projects
Innovation Strategy Technology Management
Leadership Resource Management
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Slide #17
Corporate Functions Supporting Innovation
Management Function (Highest Rank) Management Role Outcome
Innovation Management (CINO) Innovation Revenue Growth & Cost Reduction
R&NPD and PLM Management (CTO) PDM / PLM Product Innovation
Project Management (VP) PPM Complete projects on time, under budget.
Marketing Management (VP) Branding, Promotion, PR Company & Product perception development
IT Management (CIO) IT Infrastructure & Systems Automate & Optimize organization processes
Product Management (VP) Brand, Promote etc. Industry, market & consumer intelligence leaders
Supply Chain Management (CSCO) SCM Support Operations
Logistics Management (Director) Distribution Deliver product to customers or consumers
Operations Management (COO) Operations Manufactured products or services
Finance Management (CFO) Finance Finance Compliance
Human Resource Management (Director) HR Employee Support
Sales Management (VP) CRM Business Development
Executive Management (CEO)(CSO) Strategy Define future vision, goals and objectives
Legal Management (Director) Legal Functions Ensure legal requirements are met
All Rights Reserved. Copyright © Louis Bouwer 2015.
Slide #18
Chief Innovation Officer’s Responsibilities
Wikipedia Mark Johnson - Innosight Alessandro Di Fiore - ECSI Bill Poston - Kalypso
Managing the process of innovation Defining a language for innovation Supporting best practices. Improve and deliver business results from innovation
Originates or recognizes new innovative ideas
Learning assumptions with prototypes Developing skills Formulate and communicate innovation strategy
Focuses on radical or breakthrough innovation
Long-term repeatable process creating structure
Supporting BUs in new product and service initiatives
Identify disruptive threats and opportunities based on trends
Focus on key principles behind innovation
Identifying new market spaces Shape and manage the corporate innovation portfolio
Helping people generate ideas Cultivate and sponsor breakthrough innovation initiatives
Directing seed funding Evolve innovation business disciplines and competencies
Designing shelter for promising projects Create and nurture a culture conducive to innovation
Develop innovation roles, talents, and career paths
Lead the measurement and analysis of innovation results
Define and monitor innovation metrics and measures
All Rights Reserved. Copyright © Louis Bouwer 2015.
Slide #19
Motivation Drivers for Innovation
Hypercompetitive Industries
Demanding Shareholders and Employees
Demanding Customers and Consumers
Turbulent and dynamic markets
Fast paced changing world
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Slide #20
Motivational Drivers for Innovation
1. Hypercompetitive industries.– Globalization.
– Barriers of entry are getting smaller and lesser.
– Increase in disruptive and breakthrough innovations.
– Product innovation alone is insufficient.
– Business model and systems oriented solutions is required.
2. Turbulent and dynamic markets.– Increased influence by the Internet, social media and digital devices.
– Fast-moving, uncertain markets with new entrants and solution offerings.
3. Fast paced changing world.– Increased pace to get idea-to-market.
– Shorter product life cycles.
4. Demanding shareholders and employees for growth and wealth.– Market capitalization and dividends requires increased revenues and profits.
5. Demanding customer and consumers.– Cheaper and better solutions to help get the job done.
– More individualized products or service solutions.
All Rights Reserved. Copyright © Louis Bouwer 2015.
Slide #21
Motivational Drivers for Innovation Management
1. Increased collaboration and larger networks across and outside
the corporation.
2. Increased complexity of solutions with high tech integrations and
new business models.
3. Increased disruptive and breakthrough innovation efforts.
4. Increased pace with product research, development and
commercialization.
5. Increased financial investments required.
6. Increased risks for technological and commercial success.
All Rights Reserved. Copyright © Louis Bouwer 2015.
Slide #22
Challenges for Managing Innovation within a Corporation
1. Corporate commitment and support.
2. Integration of product data, technology forecasts, consumer analyses and market insights.
3. Alignment of technical capabilities with turbulent and dynamic market insights.
4. Transformation of tacit knowledge (intangible assets) into products (tangible assets) via a complex innovation system.
5. Complex organization structures, organizational behaviour and culture.
6. Establishment and development of new innovation management capabilities.
7. Internal and external stakeholder management.
All Rights Reserved. Copyright © Louis Bouwer 2015.
Slide #23
Proposed Definition for Innovation Management at Corporate Level
Innovation Management is holistic operational business function with the responsibility to automate, optimize and coherently align the multidisciplinary and multi-functional innovation capabilities of a corporation to ensure good ideas (as unique solutions) can get through the innovation system fast, effective and efficiently through proper coordination, collaboration and communication across the organization.
It has to enable the innovation system to be: – Repeatable
– Predictable
– Consistent
– Sustainable (imbedded in procedures and values)
– Scalable (according to market size)
– Tolerable (less risk)
– Profitable (revenue & growth)
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Slide #24
Product Management [VP] = Product Market, Focus, Portfolio, Business, Planning, Program, Readiness and Support Pragmatic Marketing
Executive Management [CEO] = Strategy, vision, direction, leadership, goals, objectives
Innovation System – Corporate Ecosystem
Phases
Innovation Activities“Product” Innovation ManagementR&NPD PLM Capabilities
Enterprise FunctionsInnovation “Ecosystem” ManagementBusiness Support Capabilities
Innovation Management [CINO] = Innovation Strategy, Intelligence, Governance, Processes, Values and Culture CINO
Operations Management [COO] = Enterprise Innovation Management, Manufacturing, Quality, Scheduling, Maintenance, etc.
R&NPD and PL Management [CTO] = Product Innovation Management
Supply Chain Management [CSCO] = Sourcing, Negotiations, Collaborations, Coordination, etc.
Marketing Management [VP] = Brand Development, Product Promotion, Public Relations, Public Perception
Finance Management [CFO] = Accounting, Reporting, Budgeting, Investments, Compliance, etc.
Sales Management [VP] = Customer Relations Management (CRM)
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Tacit Knowledge Consumer ProductExplicit Knowledge
Front End of Innovation (FEI) Back End of Innovation (BEI)Technology Portfolio Development (NPD & PLM)
Ideation Implementation ForresterIncubation AccelerationSelection
Discover Deliver PDMADevelopment
Ideation Post Launch EveleensDevelopment ImplementationSelection
Define CommercializeDevelop Design BMGIDiscover Demonstrate Launch into the Market
All Rights Reserved. Copyright © Louis Bouwer 2015.
Slide #25
Innovation Ecosystems
Federal Government EcosystemNational Innovation System (NIS) @ Government Policy Level
Corporate EcosystemProf Clayton M Christensen
Prof Jean-Philippe DeschampsScott D Anthony
R&NPD PLM Team• Technology Management (CTO)• Research Management• Engineering Management• Product Management• Project Management• Intellectual Property (IP) Management
Industry EcosystemProf Ron Adner
Prof Michael Porter
R&NPD PLM EcosystemDr Scott J. Edgett & Dr Robert G. Cooper
Corporate Team• Executive Management (CEO)• Innovation Management (CINO)• Information Management(CIO)• Finance Management (CFO)• Operations Management (COO)• Supply Chain Management (CSCO)• Logistics Management• Human Resource Management• Marketing Management• Sales Management
All Rights Reserved. Copyright © Louis Bouwer 2015.
Slide #26
Capabilities-Driven Innovation ManagementTM Framework
Strategy
Competitive Intelligence
Governance R&NPD PLM Operations (FEI)
IT Systems & Data Analytics
Leadership & Culture
Collaboration & NetworkingCommercialization
Operations (BEI)
Benchmarking
Intellectual Property
2. Info TechnologyResource Management
4. Human ResourcesValue Management
3. Current EcosystemOperations Management
1. Plan the FutureResource Management
DynamicInvisible
Capabilities
StableVisible
Capabilities
Directio
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f Influ
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Direction of Influence
Co
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lignm
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All Rights Reserved. Copyright © Louis Bouwer 2014.
Capabilities-Driven Innovation ManagementTM Framework
Capabilities-Driven Innovation ManagementTM is a
framework for Corporate-Level Innovation Management,
guiding corporations with management capabilities that
needs to be in place to drive innovation to generate
brand recognition and growth.
All Rights Reserved. Copyright © Louis Bouwer 2015.
Slide #28
Attributes - Capabilities-Driven Innovation ManagementTM
1. Framework is only concerned with innovation management
capabilities.
2. Influence is from top-to-bottom and from left-to-right.
3. Coherency must exist between the top and bottom capabilities.
4. Bottom operational capabilities seek to be stable.
5. Top capabilities needs to be dynamic.
6. Bottom capabilities are visible as processes and values.
7. Top capabilities are invisibly imbedded in specific resources.
All Rights Reserved. Copyright © Louis Bouwer 2015.
Slide #29
Theories - Capabilities-Driven Innovation ManagementTM
Theory #1: Implementation of Capabilities starts with Strategy.
– Currently corporations start at the bottom with culture and ideation.
– “Passing the buck” in responsibility for innovation, the easy way out.
Theory #2: Innovation System Capabilities are Interlinked.
– Innovation Management capabilities are interlinked with critical dependencies.
– Innovation system is only as good the weakest capability.
All Rights Reserved. Copyright © Louis Bouwer 2015.
Slide #30
Hubbart, Leiwand & Mainardi : Supercompetitors 2014
A capability in this context, is the:
1. Ability to consistently deliver a specified outcome relevant to the
business.
2. This takes place through the right combination of processes, tools,
knowledge, skills, and organization.
3. Generally developed across functional boundaries.
All Rights Reserved. Copyright © Louis Bouwer 2015.
Slide #31
Capabilities-Driven Innovation Management Defined vX.1
1. Competitive Intelligence - Management
2. Strategy – Management
– Portfolio Management
– Roadmap Management
3. Intellectual Property – Management
4. IT Systems & Data Analytics – Management
– Knowledge Management
All Rights Reserved. Copyright © Louis Bouwer 2015.
Slide #32
Capabilities-Driven Innovation ManagementTM Defined vX.1
5. Governance1. Why innovate?
2. Where do you look for innovation?
3. How much innovation do you want?
4. How can you innovate more effectively?
5. With whom should you innovate?
6. Who is going to be responsible for what regarding innovation?
7. Organization design
8. Delegation - Decision making responsibilities
9. Selection – prioritize research and development projects
10. Funding – Manage the acquisition and distribution of funding
All Rights Reserved. Copyright © Louis Bouwer 2015.
Slide #33
Capabilities-Driven Innovation ManagementTM Defined vX.1
6. R&NPD PLM Operations (FEI) – Management
7. Commercialization Operations (BEI) – Management1. Comm/Product Management
2. Marketing
3. Sales
8. Benchmarking - Management1. Metrics
All Rights Reserved. Copyright © Louis Bouwer 2015.
Slide #34
Capabilities-Driven Innovation ManagementTM Defined vX.1
9. Leadership & Culture – Management1. Strategic Leadership
– Corporate Focus on Strategic Products
– Cultural motivation is a pull, not a push with ideation
2. Customer Connection
– Employee’s role and contribution to products
– Employee’s role to make customers and consumers happy
3. Have Products and a Brand to be Proud of
– Employee loyalty and enthusiasm
4. Human Resources Management
– Hiring employees with passion
– Inventor Career Path
• An IBM Fellow is an innovator, inventor, visionary, and strategist with an established reputation both inside IBM and externally in the industry and/or academia. An IBM Fellow defines future directions in his or her area of expertise, engages in activities to support business initiatives, and actively leads and nurtures technical communities.
– Invention recognition + rewards
– Hands-on in process innovation training and education
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Slide #35
Capabilities-Driven Innovation ManagementTM Defined vX.1
10.Collaboration & Networking - Management
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Slide #36
Evolution of Innovation Management Theories (1/3)
1921/34/42 1975 1979 1986
Prof Joseph Schumpeter (Harvard)
InnovationEconomic CyclesCreative Destruction
Dr Robert Cooper & Dr Scott Edgett
Stage-Gate ProcessInnovation Performance Framework 2014
Dominant DesignDynamics of Innovation
Prof James M. Utterback (MIT)Prof William J. Abernathy (Harvard)
Prof Michael Porter (Harvard)
How Competitive Forces Shape StrategyCompetitive Advantage
All Rights Reserved. Copyright © Louis Bouwer 2015.
Slide #37
Evolution of Innovation Management Theories (2/3)
1992 1997 2002 2003 2005
Prof Clayton Christensen (Harvard)
Disruptive Innovation(The Attacker’s Advantage)
Prof Henry Chesbrough (Berkley)
Open Innovation
Prof Rita Gunther McGrath
Innovation Strategy & Growth
Prof Steven C. Wheelwright (Harvard+BYU) &Prof Kim B. Clark (Harvard+BYU)
Innovation Funnel
Xu, QR ; Zheng, G (Zhejiang Univ)
Total Innovation Management (TIM)
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Slide #38
Evolution of Innovation Management Theories (3/3)
2008 2011 2012 2014
Eric Ries
The Lean Start-upMinimum Viable Product (MVP)
(Continuous Innovation) Prof Jean-Philippe Deschamps (IMD)
Innovation Governance
Building a Growth Factory (2013)The Innovator's Guide to Growth (2008)
Scott D. Anthony (Innosight)
Prof Ron Adner (Dartmouth)
Innovation Ecosystem
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Slide #39
Evolution of Product Management Theories (1/2)
1930 1962 1981 1991 1993
Diffusion of Innovations Theory(Technology Adoption Lifecycle)
(Technology Diffusion)
Prof Everett Rogers
Crossing the Chasm
Geoffrey Moore
Product Management Framework
Jack Trout
Positioning Theory(Marketing Warfare Theory)
Neil McElroy @ P&G
Brand/ProductManagement
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Slide #40
Evolution of Product Management Theories (2/2)
1994 2005
TechnologyHype Cycle
Outcome-Driven Innovation (ODI)(Customer-Driven Innovation, HBR 2009)
Theodore Levitt’s Marketing Myopia article appeared in Harvard Business Review, the notion that people buy products and services to help them execute a task or to get a job done.
Anthony Ulwick
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Slide #41
Evolution of Innovation Methodology Theories (1/2)
“organic innovation” [Moore, 2005].
“blue ocean innovation”[Kim and Mauborgne, 2005],
“frugal innovation” [Tiwari and Herstatt, 2011]
Pentathlon Innovation Management Framework
Reverse Innovation(Vijay Govindarajan & Chris Trimble)
Jugaad Innovation (Navi Radjou, JaideepPrabhu, Simone Ahuja, Kevin Roberts : 2012)
Product Management
Conjoint Innovation (Prof Joe Tidd)
Co-create Innovation
Mass-customization
Crowdsourcing Innovation
Open Innovation
Customer-Driven Innovation(Robert W Ulwich)
Co-funding Innovation
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Slide #42
Evolution of Innovation Methodology Theories (2/2)
19 2008 2012 2015
Reverse Innovation (2012)
Jugaad Innovation (2012)Co-create Innovation (2008)
C. K. PrahaladM. S. KrishnanGary HamelProf Venkat Ramaswamy (Michigan)
Vijay GovindarajanChris Trimble
Navi RadjouJaideep PrabhuSimone Ahuja
Frugal Innovation (2015)
Navi RadjouJaideep Prabhu
All Rights Reserved. Copyright © Louis Bouwer 2015.
Slide #43
Evolution of Innovation Management Capabilities Theory
2013 2014 2015
Prof Charles H. Matthews (Cincinnati)Ralph Brueggemann (Cincinnati)
Building a Growth Factory (2013)Build innovation capabilities for
repeatable growth
Scott D. Anthony (Innosight)
1. A growth blueprint that details the types of innovation you are pursuing, along with goals and guidelines for getting there.2. Production systems that transform the raw materials of innovation—ideas—into tangible new products and services.3. Governance and controls that enable the management structure to scale innovations to deliver impact and growth.4. Leadership, talent, and culture that feature the right people, in the right roles, doing and saying the right things.
Innovation and Entrepreneurship:A Competency Framework (2015)
Dr Robert Cooper & Dr Scott Edgett
Innovation Performance FrameworkTM (2014) Drivers for Innovation Performance
1. Product Innovation & Technology Strategy. Driven by your leadership team, this sets out the strategic areas where your innovation efforts will be focused (the products, technologies, and platforms that will advance the business).
2. New Product Portfolio Management. Portfolio management systems help the leadership team to effectively focus their resources on the right strategic arenas and to a short list of high-value projects
3. A Stage-Gate® Idea-to-Launch Process. The gates in your Stage-Gate® process offer rigorous evaluations of each new project forcing tough Go/Kill decisions.
4. Culture & Leadership. People, culture, and leadership are behind the sustainable success of top performing companies.
All Rights Reserved. Copyright © Louis Bouwer 2015.
Slide #44
Evolution of Innovation Theory
Porter, M.E. 1979. How competitive forces shape strategy. Harvard Business Review, 57 (2):137-145.Porter, M.E. 1987. From competitive advantage to corporate strategy. Harvard Business Review:43.Leinwand, P. & Mainardi, C. 2010. The coherence premium. Harvard Business Review, 88 (6):86-92.Leinwand, P. & Mainardi, C. 2011. The essential advantage : how to win with a capabilities-driven strategy / Paul Leinwand, Cesare Mainardi. Boston, Mass. : Harvard Business Review Press, c2011.
1979Competitive Advantage
Christensen, C.M. 1992. Exploring the limits of the technology S‐curve. Part I: component technologies. Production and Operations Management, 1 (4):334-357.Christensen, C.M. 1992. Exploring the limits of the technology S‐curve. Part II: Architectural technologies. Production and Operations Management, 1 (4):358-366.Christensen, C.M., Suárez, F.F. & Utterback, J.M. 1998. Strategies for Survival in Fast-Changing Industries. Management Science, 44 (12):S207-S220.Christensen, C.M., Cook, S. & Hall, T. 2005. Marketing Malpractice. Harvard Business Review, 83 (12):74-83.Wessel, M. & Christensen, C.M. 2012. Surviving Disruption. Harvard Business Review, 90 (12):56-64.Christensen, C.M. & Bever, D.v. 2014. The Capitalist's Dilemma. Harvard Business Review, 92 (6):60-68.
Peters, T. 1979, Beyond the Matrix Organization. McKinsey Quarterly.Drucker, P.F. 1985. The discipline of innovation. Harvard Business Review, 63 (3):67-72.
Deschamps, J.P. & Nelson, B. 2014. Innovation Governance: How Top Management Organizes and Mobilizes for Innovation. Wiley.Adner, R. & Kapoor, R. 2014. Innovation Ecosystems and the Pace of Substitution: Re‐examining Technology S‐curves. Strategic Management Journal.
Gunther McGrath, R. 2013. Transient advantage. Harvard Business Review, 91 (6):1-10, 06 / 01 /.
Keeley, L., Walters, H., Pikkel, R. & Quinn, B. 2013. Ten types of innovation: The discipline of building breakthroughs. John Wiley & Sons.
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Slide #45
Evolution of Innovation Process Theory
Rothwell, R. 1994. Towards the Fifth‐generation Innovation Process. International Marketing Review, 11 (1):7-31.Hobday, M. 2005. Firm-Level Innovation Models: Perspectives on Research in Developed and Developing Countries. Technology Analysis and Strategic Management, 17 (2):121-146.Ortt, J.R. & Van Der Duin, P.A. 2008. The evolution of innovation management towards contextual innovation. European Journal of Innovation Management, 11 (4):522-538, 01 / 01 /.Eveleens, C. 2010. Innovation management; a literature review of innovation process models and their implications. Science, 800:900.
1994Innovation Process
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Slide #46
Evolution of Innovation Management Capabilities Theory
Prahalad, C.K. & Hamel, G. 1990. The Core Competence of the Corporation. Harvard Business Review, 68 (3):79-91.Leonard-Barton, D. 1992. Core capabilities and core rigidities: A paradox in managing new product development. Strategic Management Journal, 13 (S1):111-125.Srivastava, S.C. 2005. Managing Core Competence of the Organization. Vikalpa: The Journal for Decision Makers, 30 (4):49-63.Smith, R. 2008. Harnessing competencies, capabilities and resources. Research Technology Management, 51 (5):47, 09//Sep/Oct2008.
Xu, Q., Yu, Z., Zheng, G. & Zhou, Z. 2002. Towards Capability-based Total Innovation Management (TIM). International Conference on Management of Innovation and Technology (ICMIT’02 & ISMOT'02). Zheng, G., Yang, Z., Xie, Z. & Bao, G. 2003. Total Innovation Management: A New Emerging Paradigm of Innovation Management. (Inorganised by IEEE.Xu, Q.R., Liang, X.R. & Zhu, L. 2004. The Evolution of Three Generations Innovation Management -From Event View, Process View to Capability View. (InInternational Engineering Management Conference organised by IEEE.
1990Core Competencies
2002Total Innovation
Management
Teece, D. & Pisano, G. 1994. The dynamic capabilities of firms: An introduction. Industrial and Corporate Change, 3 (3):537-556, 01 / 01 /.Teece, D.J., Pisano, G. & Shuen, A. 1997. Dynamic capabilities and strategic management. Strategic Management Journal, 18 (7):509-533.Lee, H. & Kelley, D. 2008. Building dynamic capabilities for innovation: An exploratory study of key management practices. R and D Management, 38 (2):155-168, 03 / 01 /.Newey, L.R. & Zahra, S.A. 2009. The Evolving Firm: How Dynamic and Operating Capabilities Interact to Enable Entrepreneurship. British Journal of Management, 20:S81-S100.
1994Dynamic Capabilities
Stalk, G., Evans, P. & Shulman, L.E. 1992. Competing on capabilities: the new rules of corporate strategy. Harvard Business Review, 70 (2):57-69, 03 / 01 /.
1992Capabilities
Xu, Q., Chen, J., Xie, Z., Liu, J., Zheng, G. & Wang, Y. 2007. Total Innovation Management: a novel paradigm of innovation management in the 21st century. The Journal of Technology Transfer, 32 (1-2):9-25.Hajikarimi, A., Hamidizadeh, M.R., Jazani, N. & Hashemi, S.M.G. 2012. Comprehensive Systemic Model of Innovation Management : Total Innovation Management ( TIM ). Interdisciplinary Journal of Contemporary Research in Business, 4 (9):1078 - 1088, January, 2013.
All Rights Reserved. Copyright © Louis Bouwer 2015.
Slide #47
Warning on the Institutionalization of Innovation Management
• In our experience, too many companies have very detailed and refined
“funnel” processes with elaborate stage gates and committees that
together ensure any innovation is completely watered down by the time
customers or end-users interact with it.» ???
• But long-used innovation models no longer keep up. Processes are
too slow, dragged out by too many rigid stages and gates to clear.
Decision making has become overly complicated and consensus
based, resulting in compromised, incremental solutions with little
chance for a big impact.» Taylor, A. & Wagner, K. 2014. Rethinking you innovation system. BCG Perspectives: BCG.
All Rights Reserved. Copyright © Louis Bouwer 2015.
Slide #48
Steps How to develop an Innovative Culture
1. Strategic Leadership– Corporate Focus on Strategic Products
– Cultural motivation is a pull, not a push with ideation
2. Customer Connection– Employee’s role and contribution to products
– Employee’s role to make customers and consumers happy
3. Have Products and a Brand to be Proud of– Employee loyalty and enthusiasm
4. Human Resources Management– Hiring employees with passion
– Inventor Career Path– An IBM Fellow is an innovator, inventor, visionary, and strategist with an established reputation both inside IBM and
externally in the industry and/or academia. An IBM Fellow defines future directions in his or her area of expertise, engages in activities to support business initiatives, and actively leads and nurtures technical communities.
– Invention recognition + rewards
– Hands-on in process innovation training and education
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Slide #49
Steps How to develop an Innovative Culture
• Hence, the factors that define an organization’s capabilities and
disabilities evolve over time. They start in resources; then move to
visible, articulated processes and values; and migrate finally to culture.» Christensen, C.M. & Overdorf, M. 2000. Meeting the Challenge of Disruptive Change. Harvard
Business Review, 78 (2):66-76.
• developing and retaining people with the right technical knowledge» Jaruzelski, B., Jaruzelski, V. & Goehle, B. 2014, The Global Innovation 1000: Proven Paths to
Innovation Success. strategy+business magazine: Winter 2014, 1-18 Winter 2014.
All Rights Reserved. Copyright © Louis Bouwer 2015.
Slide #50
Culture: PwC Strategy 2011
Why Culture is Key: Top Culture Attributes
More than 60% cited “strong identification with the customer” and
50% chose “passion for and pride in products” as the top 2 cultural
attributes that are most prevalent at their companies.
Poor innovation performance is usually not caused by a lack of ideas or
lack of aspirations. What some companies lack is the structure needed to
effectively dedicate resources to innovation. It’s the lack of will to develop
a strategy that can balance today’s need versus tomorrow’s.
http://www.booz.com/global/home/what-we-think/global-innovation-1000http://www.strategyand.pwc.com/global/home/what-we-think/global-innovation-1000/past-year-studies/display/2011-why-culture-is-key
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Slide #51
APQC & Stage-Gate Int: Critical Drivers Innovation Performance.
• The study results indicate that portfolio management is
the key driver of innovation performance.
• Essential elements of portfolio management are:
– Selection and prioritization of projects
– Balance and mix of project types
– Balance of resources
– Pipeline of projects matches strategic objectives
https://www.apqc.org/knowledge-base/download/323486/K05464_Top%20Driver%20of%20Innovation%20Performance%20Infographic.pdf
All Rights Reserved. Copyright © Louis Bouwer 2015.
Slide #52
Innovation Performance
http://www.stage-gate.com/publications_innovationperformance.php