driving innovation through networks
DESCRIPTION
Presentation made at the ASQ World Conference on Quality and Improvement, at Anaheim, CA, on May 21st, 2012.TRANSCRIPT
M03Driving Innovation Through Networks
WCQI Concurrent SessionMonday, May 21st, 2012, 1:30pm – 2:30pm
Mr Alexis GoncalvesMr. Alexis GoncalvesDirector, Innovation Catalyst, Pfizer Inc.
ASQ Fellow, ASQ Director at Large 2008-2012
• Discuss four operating principles that enable Innovation Networks to prosper
• Present the different roles necessary to ensure the success of Innovation Networks
Session Objectives
• Overview of the day-to-day operation of Pfizer’s Innovation Networks
• Discuss how a company can establish a culture of knowledge sharing
Internal platform launched by Pfizer in early 2009
20,000+ users visited
12,000+ ideas submitted
Innovation Communities (IC) at Pfizer
36,000+ comments on ideas
Operating principles:1. The Wisdom of Crowds2. The Medici Effect3. The Long Tail of Innovation4. Network Behaviors
1. The Wisdom of Crowds
2. The Medici Effect
3. The Long Tail of Innovation
Four Operating Principles
4. Network Behaviors
1. The Wisdom of Crowds
2. The Medici Effect
“In Italy for 30 years under the Borgias they had warfare, terror, murder, and bloodshed, but they produced Michelangelo, Leonardo da Vinci, and the Renaissance.
* Graham Greene wrote the book and screenplay. Orson Welles ad-libbed just one line -- this, the most memorable one of the film.
In Switzerland they had brotherly love - they had 500 years of democracy and peace, and what did that produce ?
The cuckoo clock.”
The Third Man* on
Innovation
3. The Long Tail of Innovation
The Long Tail was popularized by Chris Anderson in an October 2004 Wired magazine article, in which he mentioned Amazon.com, Apple and Netflix as examples of businesses applying this strategy. Anderson elaborated the concept in his book The Long Tail: Why the Future of Business Is Selling Less of More.
weekly sales
The best sellers that Barnes & Nobles will have in stock.
hundreds that sell many each
The “long tail” that only iT A
3. The Long Tail of Innovation
rank of song or book
sales iTunes or Amazon can afford to deliver.tens of thousands that sell a few each
the Tail is made possible by dropping carrying costs 10x,
the Head is defined by the point where the revenue per book drops below the cost of carrying it.
3. The Long Tail of Innovation
rank of song or book
weekly sales
cost of carrying a
book
100x, or more.
Internet technology is the big enabler.
• Someone has a business problem.
• The people “nearby” are good & have useful ideas.
3. The Long Tail of Innovation
• Someone has a business problem.
• The people “nearby” are good & have useful ideas.
• By reaching “farther out”, the density of people with useful
3. The Long Tail of Innovation
ideas goes down…
• Someone has a business problem.
• The people “nearby” are good & have useful ideas.
• By reaching “farther out”, the density of people with useful
3. The Long Tail of Innovation
ideas goes down…
• ..but the total numbergoes up. This is the long tail of new ideas.
• It is the low cost, huge reach, and diversity of content that make the Long Tail practical and valuable.
Reaching out brings more, and more diverse voices.
your local team
internal customers and
Not just more, but more diverse
Scale and risk rise, but can be readily managed.
stakeholders
your sales force
external customers
• It’s nothing like a bell curve
• Classic statistics is useless.
S l
3. The Long Tail of Innovation – Pfizer 3 Years Data
1,500
2,000
2,500
n it
occu
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ple
ente
ring
n 5-
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Ideas + Comments Received,Pfizer Idea Farm, 2006-2008
1,500
2,000
2,500
1,500
2,000
2,500
n it
occu
rseo
ple
ente
ring
n 5-
idea
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Ideas + Comments Received,Pfizer Idea Farm, 2006-2008
• Some people enter no ideas, some enter hundreds. The range is huge.0
500
1,000
0 100 200 300
ideas per author
how
ofte
n(n
umbe
r of p
eth
is m
any,
in
0
500
1,000
0 100 200 300
ideas per author
0
500
1,000
0 100 200 300
ideas per author
how
ofte
n(n
umbe
r of p
eth
is m
any,
in
linear graph
Log log plots show
log-log
100
1,000
r aut
hor
200 challenges, 12,700 ideas, 3180 authors
100
1,000
r aut
hor
200 challenges, 12,700 ideas, 3180 authors
3. The Long Tail of Innovation – Pfizer 3 Years Data
Log-log plots show the tail clearly.
A straight line on a log-log graph has the form y = Cx-b , a power law.
1
10
1 10 100 1,000 10,000
author rank
idea
s pe
1
10
1 10 100 1,000 10,000
author rank
idea
s pe
The “area under the curve”, the cumulative total of all entries, reminds us how many people are in the tail.
100
1,000
r aut
hor
60%
80%
100%
ent o
f ide
as
200 challenges, 12,700 ideas, 3180 authors
100
1,000
r aut
hor
60%
80%
100%
ent o
f ide
as
200 challenges, 12,700 ideas, 3180 authors
3. The Long Tail of Innovation – Pfizer 3 Years Data
1
10
1 10 100 1,000 10,000
author rank
idea
s pe
r
0%
20%
40%
cum
ulat
ive
perc
e
1
10
1 10 100 1,000 10,000
author rank
idea
s pe
r
0%
20%
40%
cum
ulat
ive
perc
e
100
1,000
r aut
hor
60%
80%
100%
ent o
f ide
as
200 challenges, 12,700 ideas, 3180 authors
100
1,000
r aut
hor
60%
80%
100%
ent o
f ide
as
200 challenges, 12,700 ideas, 3180 authorsThe people “in the tail” contribute 80% of all ideas and value.
The top 1%(30 of 3180) contribute 20% of
3. The Long Tail of Innovation – Pfizer 3 Years Data
1
10
1 10 100 1,000 10,000
author rank
idea
s pe
r
0%
20%
40%
cum
ulat
ive
perc
e
1
10
1 10 100 1,000 10,000
author rank
idea
s pe
r
0%
20%
40%
cum
ulat
ive
perc
econtribute 20% of all ideas.
Jane Pete
4. Network Behaviors
Jane and Pete have the same number of colleagues in their networks, but these colleagues are connected in different ways.
Who is likely to have more good ideas? Why?
++
Innovation Communities: Decentralizing Innovation
“White spaces” are best explored by networked communities
Bridging silos to leverage diversity promotes maximum performance
Network
Leaders can “pull” ideas by linking challenges to strategic objectives
Networks will mobilize in areas of need
Strategic Challenges
Toolkits and templates to assist in solution building
Learning and training to build individual capacity
Visibility of activity with reporting and metrics
Process and Support
Network and Form Communities
Challenge for Solutions
Suggest Ideas
What can you do on Innovation Communities?
Sponsor Ideas DevelopBusiness Cases
Form Teams
The Different Roles
Engage with colleagues
Learn about and contribute to the business
Be recognized for delivering value to Pfizer
Colleague
Form high-performing teams quickly
Help teams collaborate and deliver value
Be a more effective manager by knowing more about your team members
Manager
Gain visibility and track ideas
“Pull” ideas for strategic challenges, bridge white spaces
Communicate strategic challenges to targeted communities
Engage and award
Senior Leader
How Does “Pat” Use Innovation Communities?
Pat is a Pfizer employee with lots of ideas,
energy, and passion for Pfizer
She logs onto
IC.Pfizer.com
Fills out her profile and
joins the e-Health community
Pat networks and engages with others
e-Health community leader
poses a challenge to solve patient compliance
using e-Health
Pat proposes an
idea and discusses it with community members
She shares the discussion with her boss and network of contacts
Pat assembles cross-functional teams
Pat receives community encouragement to
promote her idea into a project and form a team
Recruits a colleague with finance i d k t h texperience and a market research expert
to further develop the business case
Pat’s team develops a compelling business case and a BU leader
sponsors the team
Pat finds sponsors to test her ideas
The team receives some funding for
primary research to validate the
business plan
The sponsor approves a pilot with additional funding, and directs Pat to more
internal and external partners
The team runs the pilot and
reports the results to the sponsor through the platform
Pat’s sponsor uses ICs to grow his business
This is Pat’s sponsor
He uses a dashboard for visibility and tracking status of the most interesting teams
When he finds a promising project like
Pat’s, he suggests improvements
to the team, connects the team to
other experts, or funds pilot programs
Pat creates value for Pfizer using Innovation 2.0
The sponsor recommends the team for
the annual “Innovation Excellence Award”
Pat presents the pilot results with her team at the BUresults with her team at the BU annual off-site and receives more positive responses to develop an operating business plan
Pat, her team, the sponsor, and Pfizer
are all winners!
“Pat” Innovates Today for Pfizer’s Tomorrow
1
2
3
Connect and engage
Propose ideas
Collaborate in teams and communities
4
5
communities
Launch projects, develop business cases, and seek sponsorship
Innovate and be rewarded
A Transparent Innovation Tracking Platform
Staging Discovery Scale-upDevelopment
Minimize duplication of ideas and projects
Prioritize top opportunity areas
Encourage activity in addressed opportunities
Transparent tracking along the workflow stages
Filtering by Business Unit, Community, Geography
Visibility at Colleague, Manager and Senior Leader level
• Discuss four operating principles that enable Innovation Networks to prosper
• Present the different roles necessary to ensure the success of Innovation Networks
Session Objectives
• Overview of the day-to-day operation of Pfizer’s Innovation Networks
• Discuss how a company can establish a culture of knowledge sharing
Q&AQ&A
SEE MORE INSIDE THIS BOOK
Book “Innovation Hardwired”Available at
AuthorAlexis P. Goncalves
Join my Networkhttp://www.linkedin.com/in/goncalves
M03Driving Innovation Through Networks
WCQI Concurrent SessionMonday, May 21st, 2012, 1:30pm – 2:30pm
Mr Alexis GoncalvesMr. Alexis GoncalvesDirector, Innovation Catalyst, Pfizer Inc.
ASQ Fellow, ASQ Director at Large 2008-2012