Leading Research and Innovation in Expert Organisations

Minna Takala - QISOctober 2010Materials Day 1

Leading Research and Innovation in Expert Organisations

Focused on innovation in governments, research centres, corporations and universities

Content Themes• Culture and leadership supporting open innovation• Governance models and service• Examples of companies, institutions and open source communities• Stakeholders and relationship management• Managing innovation from idea to innovation• New ways of working supported by social media• Portfolio management and projects management• Reward and recognition

Selected examples from IBM, Google, Lego, P&G, Toyota, Philips & Nokia, research and govermental institutions, universitiesopen source communities and social media

Minna Takalawww.minnatakala.com -

Twitter/@MinLii & @LinnaBikeShop SlideShare/MinLii, Delicious/MinLii, SecondLife/ MinLii Hanson

AGENDA AT A GLANCE 1st Day 2nd Day

09:00 OPENING 09:00 Opening of the day & review of previous days results

09:15 INTRODUCTION AND KICKOFF• Agenda review• Introduction to facilitators & participants • Expected outcome of the workshop

09:15 FROM IDEA TO INNOVATION

ECOSYSTEM VIEW TO INNOVATION

10:30 – Coffee break – 10.45 10:30 – Coffee break – 10.45

CULTURE & LEADERSHIP

GOVERNANCE MODELS & SERVICES

WORK GROUP SESSION

NEW WAYS OF WORKING SUPPORTED BY SOCIAL MEDIA

12:30 – Lunch – 13:30 12:30 – Lunch – 13:30

WHAT OTHERS ARE DOING• Examples from companies• Examples from institutions & universities• Examples from open source communities

PORTFOLIO MANAGEMENT &PROJECT MANAGEMENT

REWARD & RECOGNITION- HOW TO ENHANCE PASSION FOR INNOVATION

14:45 – Coffee break – 15:00 14:45 – Coffee break – 15:00

WORK GROUP SESSION

STAKEHOLDERS &RELATIONSHIP MGMT

CLOSING• Summary• Feedback

16:00 16:00

Theme 1Leadership & Culture

Views of the Future

Trust & Attitude

Creating conditions fos success

Leadership & Management

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Images of Innovation

”IMAGES OF CHANGE” Spatial image - the picture of the individual's location in the space around him.

Temporal image - an individual's picture of stream of time and his place in time.

Relational image - the picture of the universe as a system of regularities.

Personal image - the picture of an individual in the midst of the universe of persons, roles and organizations around him.

Value image - the ordering of the scale of better and worse of the various parts of the whole image.

Emotional image - various items in the rest of the image are imbued with feeling or affect

Conscious, unconscious & subconscious image

- an individual is capable being conscious of all parts of the image with the same degree of intensity, ability to perceive varies, a very small part of an image is exposed to our internal view at the same time.

Certain / uncertain, clear / vague images

- every aspect of a image is tinged with some degree of certainty and uncertainty.

Real / unreal image

- an image of the correspondence of the image "itself" with some "outside" reality.

Public / private image

- whether the image is shared by others or is peculiar to the individual.

Source: Kenneth Boulding (1956)

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Right balance between values based leadership and fact based

management is crucial

Fact-Based Management

Values-Based Leadership

• Clear targets • Common Management principles and tools• Common modular processes

• Achieving Together• Passion for Innovation• Engaging You • Very Human

Nokia Values

Leadership Role in Innovation System • Providing a long-term view for innovation via strategy,

target setting and portfolio

• Enhancing integrated view of key leaders and manager to the dynamics of innovation

• Nurturing key creation programs

• Managing relationships with key external stakeholders

• Assessing innovation implications of corporate, strategic initiatives

• Providing an expert opinion and crucial judgment

• Managing the balance between business and technology innovation such as organizational dynamics, portfolio, resources and processes.

Theme 1 – Leadership & CultureGroup Work options & Examples

Group Work• Values Exercise –

TOP 3 values for innovation work

• Leadership versus Management

Examples • IBM – Values for innovation

• P&G – Connect & Develop

• Nokia – ”Passion for Innovation”

• Aalto University Design Factory

• User driven innovation in Finnish context

• Reaktori

• Lulu Lemon

Theme 2Governance Models & Services

Structure

Decision making

Processes

Products, services & solutions

Operational model defines organization, processes and information system needs that are needed to implement strategies

and operationalize the business model

Beyond products and services

Product

Solution

Outsourcing

Service

Experience Trans-formation

“Increased demand for advice and support drives value from products, to services to solutions and outsourcing.”(Slywotzky, 1996)

“Progression of economic value:make goods -> deliver services -> stage experiences -> facilitate transformations “

( Pine et all, 1999)

I SYSTEMS VIEW:Services within and between different systems

Socialsystem

People & High - touch

Physicalsystem

Atoms& High tech

Informationsystems

Bits& High tech

People OrganizationsStakeholders

Socialenvironment

People <->

People

People <->

Machines

People <->IT

MachinesBuildings

Physicalenvironment

People <->

Machines

Machine<->

Machine

Machine<->IT

InformationTechnologyNetwork

Virtualenvironment

People <->IT

IT<->

Machine

IT<->IT

People <->

People

People <->

Machine

People <->IT

Machine<->IT

IT<->IT

Machine<->

People

IT<->

People

Machine<->

Machine

IT<->

Machine

Theme 2 – Governance Models & ServicesGroup Work options & Examples

Group Work• Reality process – what

are desired outcomes?• Governance model

basics

Examples • IBM – innovation activities

across the company and with customers

• Toyota – lean mgmt principles

• Tekes – program portfolio

• SITRA – orchestrating societal change

• Hub Helsinki

IBM’s Approach to Innovation

Challenge /Opportunity Idea

GenerationIncubation Validation Value realized

Research, Corporate

IBM Lines of Business

GTO / GIO /IBV

Client (and IBM) Challenges

ClientChallenges

InnovationJam

ThinkPlace

Communities of Practice

Extreme Blue

Biz Tech

Emerging Business

Opportunities

TAP

Alpha Works –LOB with developer

community

IBM Internal

IBM Offerings

Partners

Clients

Clients

IBM innovation programs

Joint Innovation Partnerships

First of a Kind

Strong governance

is crucial

Theme 3Stakeholders & Relationships

Who are your stakeholders?

Value adding relationships

Infinite & Finite games

Stakeholders & Relationships

• Customers

• Suppliers

• Employees

• Shareholders

• Government

• 3rd sector organizations …

• Stakeholders !!!

• Friends• Partners• Enemies• Competitors• Family members• Strangers, VIPs • Guests, visitors…• Associates...

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Co-operation in Service Research Stakeholders in Finland

Governmental Institutions & Industry Associations

• The Federation of Finnish Technology Industries

• TEKES - Finnish Funding Agency for Technology and Innovation

• SITRA – The Finnish Innovation Fund

• The Academy of Finland

• VTT - The Finnish Research Center

Universities & Polytechnics

• Helsinki University of Technology TKK

• Lappeenranta University of Technology LUT

• Tampere University of Technology TUT

• Oulu University

• Stadia Polytechnic

• ...

The Federation of Technology Industries activates stakeholders with BestServ Forum

• Joint collaborative network, funded by Technology Industries & members

• The vision: World Class industrial service business is a competitive advantage of Finnish Companies in Global Markets. Services boost industries’ international growth and success.

• Collaborative working practices & WebPortal for sharing information

• Focus on service business research

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SITRA – the Finnish Innovation Fundpromotes service research for Finnish government and provides support with programs

• On-going innovation policy work for Finnish Society – one of the themes service business

• The report will be given to Finnish Government in March 2008

• On–going program on network-based operating models 2008 - 2010

• Mikko Kosonen (ex- Nokia executive) heading SITRA

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TEKES - Finnish Funding Agency for Technology and Innovationsupports service research with collaborative programs

Collaborative research and development programs

with companies, research centers and universities

Examples of programs enhancing service research :

New Industrial Paradigm program (UTT - Uusi Teollinen Toimintatapa)

• 2000 - 2004

Innovative business Competence and Management

( LIITO Uudistuva liiketoiminta ja johtaminen)

• 2006 - 2010

Nokia participation in Liito projects - examples• Innovation Practices in New Business Creation in Nokia Research Center – ONIONS• Knowledge creation in Collaborative Innovation and Networked R&D - INNOSPRING ACCESS • Renewal and Redirection- New Management Models for Supporting Innovation Implementation - RENDEZ

Examples of Innovation practicesCompany Example

IBM Innovation with clients, use of social media to support communities, facilitated innovation community, “Technology Adaption Program” and “First of the Kind” projects

P&G Focus on involving external stakeholder into innovation activities, global 50% target set for new products

Philips InnoHubs (Singapore & Espoo, Finland) – places for innovation accelleration and early user co-operation

F-Secure Encouraging employees and linking innovation champaigns with agile/lean SW development

Lego Co-creation with users & developers, transformation of R&D / innovation practices

Dell Using user feedback extensily, crowd sourcing with Dell Idea Storm

Google Innovation practices integrated in R&D ways of working , systematic mechanisms for ideation,validation, investment & rewarding

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23Source – P&G

© 2009 Noki 24

Stakeholder view:Relationship with whom ?

Company

Financiers

Suppliers

Partners

Society

Employees

Customers

Finite and Infinite Games...

Finite Games• The purpose is to win

• Improves by fittest surviving

• Winners exclude losers

• Winner takes all

• Aims are identical

• Relative simplicity

• Rules fixed in advance

• Rules resemble debating contests

• Compete for mature markets

• Short term decisive contests

• Externally defined

Infinite Games• The purpose is to improve the game

• Improves by game evolving

• Winners teach losers better plays

• Winning widely shared

• Aims are diverse

• Relatively complexity

• Rules changed by agreement

• Rules resemble grammar of original utterances

• Grow new markets

• Long term

• Internally defined

“A finite game is played for the purpose

of winning, the infinite game for

the purpose of continuing the game …” (Carse, 1986)

Integration possibilities- co-creation ??

From Value Adding to Value Co-creation 1 (2)

• Industrial view

• Value creation is sequential, unidirectionally transitive, best

described in “value chains”• All managed values can be

measured in monetary terms• Value is added

• Value is a function of utility and rarity

• Values are “objective” (exchange) and

“subjective” (utility)• Customers destroy value

• Co-productive view

• Value creation is synchronic, interactive, best described in “value constellations”

• Some managed values cannot be measured or monetized

• Values are co-invented, combined and reconciled

• Exchange the source of utility and rarity

• Values are”contingent” and “actual” established interactively

• Customers and suppliers co-create value

From Value Adding to Value Co-creation 2 (2)

• Industrial view• Value is “realized” in transaction,

only for supplier (event)

• Three sector statistical models applicable

• Services are a “separate” activity

• Consumption not a factor of production

• Economic actors analyzed holding one primary role at a time

• Firm and activity are units of analysis

• Co-productive view• Value is co-produced, with

customers and suppliers over time - for both co-producers (relationship)

• Three sector statistical models no longer applicable

• Services a framework for all activities considered co-produced

• Consumers managed as factors of production (assets)

• Economic actors analyzed as holding several roles simultaneously

• Interactions (offerings) are units of analysis (Raminez , 1999)

Options in relationships...

• Design TO - >or WITH <-> ?

• Inactive ?• Proactive ?• Reactive ?• Interactive ?• … postactive...

?EXIT

LOYALTY

VOICE

(Hirchman, Albert, 1970)(Ackoff, Russel )

Life cycle of a relationship

Time aspects ?• Short term / long term

• Continuous / discontinuous …

• Temporary / permanent

Phases ?• In the beginning… during …

at the end

Crisis ?• Mergers & acquisitions

• Intensive growth / decline

• Transformation

Theme 3 – Stakeholders & RelationshipsGroup Work options & Examples

Group Work• Stakeholder

identification• Role analysis

Examples • Nokia – co-creation with lead

users

• Philips – opening up & InnoHub

• University -Industy Collaboration

• Rendez research project

• Hub Helsinki

• Friendpreneurs