Innovation Blueprints: Building Sustainable
Transcription
Innovation Blueprints: Building Sustainable
ENGINEERS IRELAND CPD BEST-PRACTICE ROADSHOW in association with Johnson & Johnson Campus Ireland ‘Innovation Blueprints: Building Sustainable Innovation Cultures’ Friday, June 12th, 2015 WELCOME & AGENDA Mr. Kieran McSherry Engineering Director Vistakon DR. ANN LEDWITH Director Continuing & Professional Education University of Limerick THEME: Identifying Ideas for Radical Innovation Searching for & Selecting Radical Innovation Projects Dr Ann Ledwith, Enterprise Research Centre, University of Limerick June 2015 Transformational Degree of innovation Revolution “Innovation” (The business, but not as usual) Radical Quality Incremental Quality (the business (the business as usual) usual) as Deliverables (Products, Services, Market positioning)Business model Processes Dimension of innovation Jumping S-Curves • Exploit – Use currently available information to improve present returns • Exploration – Seek new information about alternative technologies and markets to improve future returns • Inattentional Blindness Innovation The Innovation Search Space Deep (radical) Shallow (incremental) Bounded Exploration Exploit Narrow (existing frame) Unbounded Exploration Reframe Broad (new frame) Environmental Complexity Adapted from Tidd and Bessant 2009, 271 ‘Its not big enough for us’ ‘Its not a business’ ‘Great minds think alike’ ‘(existing) customers won’t/don’t want it’ ‘Not invented here’ ‘Its not our business’ ‘Invented here’ ‘We’re not cannibals’ ‘It ain’t broke so why fix it’ ‘We’re doing OK as we are’ ‘Let’s set up a pilot’ ‘We’ve never done it before’ The Lamppost Problem The Messenger Problem The Rewiring Problem The Balancing Problem Search Strategies 1. Sending out scouts 2. Exploring multiple futures 3. Using the web 4. Working with active users 5. Deep diving 6. Probe and learn 7. Mobilise the mainstream 8. Corporate venturing 9. Corporate entrepreneuring and intrapreneuring 10.Use brokers and bridges 11.Deliberate diversity 12.Idea generators Bessant and von Stamm, 2007 Overall Sample Usage by key sample segments NonInnovators innovators n=52 n=55 Usage n=107 Importance n=107 Large n=52 SME n=55 53% 75% 60% 46% 69% 41% 50% 49% 46% 73% 72% 77% 57% 67% 55% 42% 31% 37% 69% 54% 56% 35% 45% 35% Deliberate diversity 29% 61% 42% 15% 40% 22% Exploring multiple futures 24% 59% 39% 8% 44% 4% Corporate venturing 25% 50% 38% 11% 38% 13% Idea generators Using the web Mobilize the mainstream 22% 17% 64% 52% 28% 17% 17% 17% 25% 19% 22% 16% 17% 60% 23% 17% 21% 12% Brokers and bridges 14% 53% 23% 6% 21% 7% Corporate intrapreneuring 13% 46% 21% 5% 27% 0% Strategy Working with active users Probe and learn Deep diving Sending out scouts Key Findings • Commonly used strategies: – Work with active users, Probe & Learn, and Deep Diving • Biggest difference between Large firms and SMEs in exploratory strategies: – Deliberate Diversity, Exploring Multiple Futures and Brokers & Bridges • Difference between Innovators and Non-Innovators: – Probe & Learn, Deliberate Diversity, Exploring Multiple Futures and Brokers & Bridges Barriers • Organisational Culture – ‘The way we do things’ – Corporate immune system • Resources – Management vs. availability • Knowledge – Absorptive capacity Selection Strategies 1. Building alternative visions 2. Prototyping to build bridges in the selection process 3. Using probe-and-learn methods 4. Using alternative evaluation and measurement criteria 5. Mobilizing sponsorship and championship 6. Using alternative decision-making pathways 7. Deploying alternative funding structures 8. Using alternative— dedicated/devolved/decentralize d—implementation structures 9. Mobilizing entrepreneurship inside and outside the firm Bessant et al. 2010 Selecting Ideas • Culture Challenging – Interpretation of market trends – Ideas that are foreign are rejected • ‘We are a product firm’ • Risk Reducing – Radical innovation is very high risk – Strategies to reduce risk help in introducing very new ideas Select Survey Total SME Large Medical devices Financial and other services Software Pharmaceutical Electronics Other manufacturing 20 13 7 8 13 5 15 5 NonInnovator 5 8 15 17 11 18 11 6 4 6 4 11 7 12 9 7 7 6 6 10 4 12 Total Innovator Non innovator 94 49 45 42 17 25 52 32 20 49 - 45 - Industry Innovator Overall Sample Strategy Building alternative visions Prototyping as a way of building bridges Probe and learn methods Using alternative evaluation and measurement criteria Mobilising sponsorship and championship Using alternative decision-making Deploying alternative funding structures Using alternative implementation structures Mobilising entrepreneurship Usage by key sample segments NonInnovators innovators n=49 n=45 Usage n=94 Importance n=94 Large n=52 SME n=42 71% 84% 77% 64% 86% 56% 59% 53% 76% 62% 60% 56% 57% 50% 65% 63% 51% 42% 45% 60% 50% 38% 57% 31% 60% 81% 65% 52% 71% 47% 26% 56% 25% 26% 33% 18% 34% 55% 44% 21% 53% 13% 24% 46% 31% 17% 33% 16% 39% 82% 35% 45% 51% 27% Key Findings • Commonly used strategies: – Building alternative visions, Mobilising sponsorship and championship, Prototyping as a way of building bridges and Probe and learn methods • Biggest difference between Large firms and SMEs in exploratory strategies: – Deploying alternative funding structures and Using alternative implementation structures • Difference between Innovators and Non-Innovators: – Deploying alternative funding structures References • Nicholas, N., Ledwith, A., and Bessant, J., 2015. ‘Selecting Early-Stage Ideas for Radical Innovation’, Research Technology Management, July-August, pp. 1-8 • Nicholas, N., Ledwith, A., and Bessant, J., 2013. ‘Reframing the Search Space for Radical Innovation’, Research Technology Management, March-May, pp. 27-35 • Bessant, J., Möslein, K., Neyer, A. N., and Piller, F., and Von Stamm, B. 2010. Radical innovation: Making the right bets. Executive Briefing. Advanced Institute of Management Research, London. http://www.aimresearch.org/uploads/File/Publications/Executive%20Briefings%2 02/Radical_Innovation_Making_the_right_bets.pdf • Bessant, J., and Von Stamm, B., 2007. Twelve search strategies that could save your organisation. Executive Briefing. Advanced Institute of Management Research, London. http://www.aimresearch.org/uploads/File/Publications/Executive%20Briefings%2 02/12_search_strategies.pdf • Prahalad, C. (2004). "The blinders of dominant logic." Long Range Planning 37(2): 171-179. Conclusions ‘The dominant logic of the company is, in essence, the DNA of the organisation. It reflects how managers are socialised. It manifests itself often, in an implicit theory of competition and value creation. It is embedded in standard operating procedures, shaping not only how the members of the organisation act but also how they think. Because it is the source of the company’s past success, it becomes the lens through which managers see all emerging opportunities. This makes it hard for incumbent companies to embrace a broader logic for competition and value creation.’ (Prahalad, 2004) References • Nicholas, N., Ledwith, A., and Bessant, J., 2015. ‘Selecting Early-Stage Ideas for Radical Innovation’, Research Technology Management, July-August, pp. 1-8 • Nicholas, N., Ledwith, A., and Bessant, J., 2013. ‘Reframing the Search Space for Radical Innovation’, Research Technology Management, March-May, pp. 27-35 • Bessant, J., Möslein, K., Neyer, A. N., and Piller, F., and Von Stamm, B. 2010. Radical innovation: Making the right bets. Executive Briefing. Advanced Institute of Management Research, London. http://www.aimresearch.org/uploads/File/Publications/Executive%20Briefings%2 02/Radical_Innovation_Making_the_right_bets.pdf • Bessant, J., and Von Stamm, B., 2007. Twelve search strategies that could save your organisation. Executive Briefing. Advanced Institute of Management Research, London. http://www.aimresearch.org/uploads/File/Publications/Executive%20Briefings%2 02/12_search_strategies.pdf • Prahalad, C. (2004). "The blinders of dominant logic." Long Range Planning 37(2): 171-179. Mr. Keith Finglas Managing Director Innovation Delivery Ltd. THEME: Managing Innovation Projects Innovation Blueprints: Building Sustainable Innovation Cultures Innovation Blueprints: Building Sustainable Innovation Cultures How do we develop a sustainable innovation competency among existing, busy teams? CIP NPI NPD Better Continuous Improvement Process makes for better New Product or Process Implementation. Better NPI (+ chutzpah and a few techniques) makes for better New Product Development. CIP NPI NPD Project? =Solution+Execution solution execution CIP NPI NPD Basic Approaches evaluate usable people technically desirable feasible viable business balanced approach 1 prototype 3 prioritise inspire inform distill 2 ideas innovation cycle CIP NPI NPD 1 1 3 3 2 3 2 design 1 2 3 1 2 3 1 2 implement 3 1 2 •Stakeholders •Users •Idea generation •Prototyping •Landing Zone •Portfolio Key techniques •Needs, desires, fears, forms, assumptions understanding stakeholders better •Onsite, x-dept •Other sites •Functions across the organisation users •Identify, engage •Good/Essential •Local, Up-, Downstream •Value rotations & immersion opportunities idea generation •Participants •Idea field •Golden moment team++ inputs •Obvious/not so obvious/on the edge •Cheap/safe/wow! prototyping •Answers!! •develop skills •several stages •build a local library landing zone •Min/Med/Max Scope •Teams •understand deeply •learn/choose/recommend • Managers •check – depth/risk novelty •decide •Large/Medium/Small portfolio management •range of items •small experiments •evaluating alternatives rather than failures •Everything? A big ask. How might you put this in place? Is that all…? •Connect existing processes •Create new links and parallel paths •Demand/Expect/Measure •Time? •The right? •Too busy? •No access? •We know what we need to do … •We have to appear certain… Reasons we might not do this …? COFFEE BREAK KEYNOTE SPEAKER: Mr. Darrell Mann CEO Systematic innovation Ltd. THEME: Innovation Blueprints: Building Sustainable Innovation Cultures Innovation Blueprints: Building Sustainable Innovation Cultures Darrell Mann ©2015 DLMann, all rights reserved 12 June 15 Systematic Innovation courses/education/certification strategic books/support tools forecasts software/intranet/web distance learning projects Problem Solving Consulting global benchmarking Systematic Innovation Methods Executive Coaching & Strategic Studies Research train-the-trainer innovation capability maturity Intellectual Property Generation/ Licensing PanSensics PRODUCTS patent analysis focus area research 40 full-time personnel + 250 network partners ©2015 DLMann, all rights reserved Some of our clients from the last 17 yrs: ©2015 DLMann, all rights reserved Death By A Million Tools Chaos Theory Axiomatic Design IBA VSM Design for Manf/Assy Osborn 6 T P M FMEA Buzan CAT WOE 5 F O R C E S GA Patterns CT Pareto F T ©2015 DLMann, all rights reserved Kansei PEST Analysis Simplex Spiral Dynamics Affinity Diagrams O A Biomim icry Split Half Ladder Of Abstraction Sun Tzu S W O T Taguchi Shainin Biases USP MeansEnd Analysis Value Engineering 5S Boyd OODA RPR Typhoon Function Analysis DeBono KepnerTregoe Hoshin Pahl/Beitz 8D Morphological Analysis QFD WOIS MA Blue Ocean Theory Of Constraints Oblique Strategies Lean NLP ZBB spc CPS TRIZ Pugh RCA P L O T S Fourth Turning Whack Pack SIT Fishbone Diagrams Open Inn. Thinker Toys AFD Trend Analysis OLV MCDA CBR Pattern Language Scenario Planning Innovation: What CEOs & Investors See 98% of innovation attempts will end in failure ©2015 DLMann, all rights reserved Innovation: What CEOs & Investors See ©2015 DLMann, all rights reserved Where Failures Happen Co-ordination Market Demand More Ideal Product/Service Means of Production Route to Market (The technical solution is < 20% of the problem) ©2015 DLMann, all rights reserved Where Failures Happen: MNC/Corporations Market Demand Co-ordination = business system innovation Means of Production More Ideal Product/Service Route to Market ©2015 DLMann, all rights reserved Innovation: a successful step change advance (nothing to do with ‘optimization’) ©2015 DLMann, all rights reserved Innovation Has Many Faces… 4. Leadership Innovation (‘work different’) 3. Strategy/Management Innovation (‘sell different’) 2. Technology/Offering Innovation (‘make different’) 1. Process Innovation (‘make better’) ©2015 DLMann, all rights reserved 197 Hand offs to discharge a patient ©2015 DLMann, all rights reserved Patient Pathway Trauma Bolton Hospitals NHS whenever anyone asked us “what is the best way to build an innovation culture?” our answer was always “it depends!” Now we know what it depends on ©2015 DLMann, all rights reserved Innovation Capability Maturity Model Innovation strategy depends on the capabilities of the organisation Innovation Capability Maturity Model: An Introduction SEEDING CHAMPIONING MANAGING STRATEGISING VENTURING SEEDING CHAMPIONING MANAGING STRATEGISING VENTURING Darrell Mann ©2015 DLMann, all rights reserved Innovation Capability Maturity Model ©2015 DLMann, all rights reserved Some Organisations Do Get It Right… The Steve Jobs Effect/’insanely great’ ‘Beat Sony’/Institutionalised Innovation Tools 40% product turn every 3 years Skunkworks ‘50% of innovations from the consumer’ Average 40 suggestions/employee/yr 90+% implementation rate Employees spend 30% of time on ‘non’Google’ ©2015 DLMann, all rights reserved ‘Self-organising’ teams Look Beneath The Noise…. SEEDING CHAMPIONING ©2015 DLMann, all rights reserved MANAGING STRATEGISING VENTURING The Hero’s (Start-Up) Journey – 0-1 “Business” “Tech/Ops” Learning & Innovation Cookie-Cutter Business & Operations Cookie-Cutter Business & Operations Local Flexibility ©2015 DLMann, all rights reserved Cookie-Cutter Business & Operations Co B O The Hero’s (Start-Up) Journey – 0-1 Stage 2 Professional Management ©2015 DLMann, all rights reserved Learning & Innovation The Hero’s (Start-Up) Journey – 0-1 Stage 3 “Business” “Tech/Ops” “Improve Performance” ©2015 DLMann, all rights reserved The Hero’s (Start-Up) Journey – 0-1 Stage 4 “Business” “Tech/Ops” “Efficiency Engine” ©2015 DLMann, all rights reserved The Hero’s (Start-Up) Journey – 0-1 Stage 5 “Business” “Tech/Ops” “Efficiency Engine” ©2015 DLMann, all rights reserved ICMM Level 1 “Business” “Tech/Ops” “Efficiency Engine” ©2015 DLMann, all rights reserved ICMM Level 2 “Business” “Tech/Ops” Learning & Innovation “Efficiency Engine” ©2015 DLMann, all rights reserved “Efficiency Engine” Everything’s working Feels good Clear rules Clear Direction (‘Progress’) Knowledge exists Routine Manage-able Controllable ordinary world ©2015 DLMann, all rights reserved Learning & Innovation Nothing seems to work Uncomfortable/horrible Confusion Find ‘new rules’ Challenge assumptions Knowledge has to be found Creativity Not manage-able ‘Out of control’ special world Why Is Innovation So Difficult? ‘VALUE’ = IDEALITY = Benefits/(Costs + Penalties) Oridnary World Special World TIME ©2015 DLMann, all rights reserved ICMM Level 3 “Business” “Tech/Ops” “Efficiency Engine” Learning & Innovation ©2015 DLMann, all rights reserved ICMM Level 4 “Business” “Tech/Ops” “Business” “Tech/Ops” Learning & Innovation “Efficiency Engine” “Efficiency Engine” “Business” Learning & Innovation “Improve Performance” Professional Management ©2015 DLMann, all rights reserved “Tech/Ops” Learning & Innovation ICMM Level 5 ©2015 DLMann, all rights reserved Level Of Capability Determines Level Of Focus SEEDING CHAMPIONING MANAGING STRATEGISING Societal - Live Different Societal - Live Different Societal - Live Different Societal - Live Different Societal - Live Different C-Suite - Work Different C-Suite - Work Different C-Suite - Work Different C-Suite - Work Different C-Suite - Work Different SBU/Division - Sell Different SBU/Division - Sell Different SBU/Division - Sell Different SBU/Division - Sell Different SBU/Division - Sell Different Product/Service Product/Service Product/Service Product/Service Product/Service - Do Different - Do Different - Do Different - Do Different - Do Different Processes – Do better Processes – Do better Processes – Do better Processes – Do better Processes – Do better ©2015 DLMann, all rights reserved VENTURING ICMM Journeys: Level2 – Level3 ICMM Journeys: Level1 – Level2 ICMM Journeys: Level3 – Level4 ICMM Journey Text Books ICMM Journeys: Level4 – Level5 ©2015 DLMann, all rights reserved Hero’s Journeys ©2015 DLMann, all rights reserved The Hero’s Journey ©2015 DLMann, all rights reserved Crossing The Threshold Act I Separation Meeting The Mentor Tests, Allies And Enemies Refusal Of The Call Act II-A Descent Approach The Inmost Cave Call To Adventure ORDINARY SPECIAL Ordinary World WORLD WORLD The Ordeal Return With Elixir Resurrection Act III Return ©2015 DLMann, all rights reserved Reward Road Back Act II-B Initiation Crossing The Threshold Meeting The Mentor Refusal Of The Call Tests, Allies And Enemies Call To Adventure Approach The Inmost Cave Ordinary World Ordinary World The Ordeal Return With Elixir Reward Road Back Resurrection ©2015 DLMann, all rights reserved Journey Ordeals ©2015 DLMann, all rights reserved Level 1-2 Ordeal 1 We need to demonstrate innovation success we have no innovation budget/time 60% of all L1-2 Ordeals ©2015 DLMann, all rights reserved Change/Innovation Myths: Change Requires More Resources ©2015 DLMann, all rights reserved Level 1-2 Ordeal 2 ‘failure is not permissible’/ no bravery/ no trust/ no leadership We need to demonstrate innovation success 30% of all L1-2 Ordeals ©2015 DLMann, all rights reserved What made Napoleon so successful?... ©2015 DLMann, all rights reserved … and then not? Austerlitz, Jena, Eylau, Friedland, Wagram Hubristic Goal “critical mass at the critical point” ©2015 DLMann, all rights reserved Level 1 Axiom “The greatest number of troops should be brought into action at the decisive point” ©2015 DLMann, all rights reserved Carl von Clausewitz “SENSE OF PROGRESS” ©2015 DLMann, all rights reserved Level 1-2 Ordeal 3 ‘wilful blindness’/ ‘plausible deniability’ We need to demonstrate innovation success 10% of all L1-2 Ordeals ©2015 DLMann, all rights reserved ©2015 DLMann, all rights reserved Level 2-3 Ordeal - 1 We need to innovate ©2015 DLMann, all rights reserved Work doesn’t fit in with ‘everyday’ production activities I want Creativity AND I don’t want Creativity ©2015 DLMann, all rights reserved I want Creativity AND I don’t want Creativity United 232 http://www.youtube.com/watch?v=W45wMs6jSUg ©2015 DLMann, all rights reserved Level 2-3 Main Contradiction - 2 We need to innovate ©2015 DLMann, all rights reserved we get stuck at internal silo walls Typical Roles Typical Success Metrics Typical Levers Hero’s Journey Ordeals Hype Cycle Ch’cs Management Texts Innovation Tools, Methods The successful innovator is most likely to be the sort of covert, troop-rallying, lower/mid-level manager rebel prepared to ‘ask for forgiveness rather than permission’. Level 1 innovation successes are most likely to be ‘pirates’, ‘privateers’ and people with the passion to do what they see is right despite the system Number of suggestions submitted. Number of suggestions where feedback has been provided (‘management is listening!’). Number of successfully implemented ideas. Money saved. ROI (bearing in mind there was very likely no allowable ‘cost’ to creating the solution) External grant funding. ‘Sabbatical’ time. Extra-curricular group meetings. How to create a track record of success stories with no formal budget or time. How to refuse to work on ‘no-win’ projects. Peak: Management expresses an interest in (technical) innovation (and probably does a big launch initiative to ‘kick start’) Trough: things go badly wrong when technical throws their solution over the wall to the marketers & business side of the organization. Orbiting The Giant Hairball, Cubicle Commando. Rules For Renegades, The Art Of War. How To Win Friends And Influence People, Seven Habits Of Highly Effective People. Shibumi Strategy, Chutzpah, How To Measure Anything. Function Analysis/Value-Stream-Mapping Kepner-Tregoe. DFMA/Trimming Six Thinking Hats Perception Mapping 9-Windows Why-What’s-Stopping? Subversion Analysis/AFD SCAMPER/Inventive Principles ©2015 DLMann, all rights reserved Putting It All Together ©2015 DLMann, all rights reserved Innovation Capability Maturity Model Innovation strategy depends on the capabilities of the organisation SEEDING CHAMPIONING MANAGING STRATEGISING VENTURING SEEDING CHAMPIONING MANAGING STRATEGISING VENTURING http://www.systematic-innovation.com/icmm-survey.html ©2015 DLMann, all rights reserved PanSensic: Automating ICMM Measurement 5 PERCEIVED ICMM Level 4 3 2 1 0 ©2015 DLMann, all rights reserved 1 2 3 4 5 ACTUAL ICMM Level PanSensic: Automating ICMM Measurement 5 Where we think we are Language used Inside The Organisation PERCEIVED ICMM Level 4 3 Where we need to be: Competitors + Problems Inside The Organisation 2 1 Where we actually are: Frustrations Inside The Organisation 0 ©2015 DLMann, all rights reserved 1 2 3 4 5 ACTUAL ICMM Level ICMM Assessment Programme Week 1 Week 2 Week 3 Short External Analysis Questionnaire/Interview Report Full Site visits Full Interviews Review Report ©2015 DLMann, all rights reserved Week 4 Week 5 Week 6 ICMM Detail Dashboard how capable how volatile are my transformation is my market? processes? ICMM Index how much more can I get from my solutions? how quickly can I respond? how transformation capable are my people? Disruption Index Evolution Index Agility Index Silo Index Risk Index For my current novation pipeline: ROI worst You TTP most likely Your current competitors Note: detailed analysis based on our findings…. ©2015 DLMann, all rights reserved best worst most likely best Your blackswan competitors Innovation Capability Maturity Model Innovation strategy depends on the capabilities of the organisation Innovation Capability Maturity Model: An Introduction SEEDING CHAMPIONING MANAGING STRATEGISING VENTURING SEEDING CHAMPIONING MANAGING STRATEGISING VENTURING Darrell Mann ©2015 DLMann, all rights reserved [email protected] PANEL DISCUSSION – PLEASE JOIN IN MR. JOHN GARRETT, VICE-CHAIRMAN, THOMOND REGION, ENGINEERS IRELAND PANEL: DR ANN LEDWITH, KEITH FINGLAS & DARRELL MANN ©2015 DLMann, all rights reserved ENGINEERS IRELAND UPDATE & CLOSING ADDRESS Caríosa Kelly CPD & HR Director Engineers Ireland 7 CRITERIA: 1 – CPD Policy, Committee and Strategy 2 – Adaptability through creativity and innovation 1. Best-practice modifications 3- Performance Management aligning CPD outcomes to national CPD standard 2. TODAY: CPD clearly 4- Mentoring during Key Transitions; Coaching conversations 5 – Competence maps and talent support programmes linked to organisational strategy 6 – Knowledge Sharing and Knowledge Management 7 – External ‘learning’ linkages THANK YOU TO: • Johnson & Johnson Campus Ireland • Dr. Ann Ledwith, Director, Continuing & Professional Education, UL • Mr. Keith Finglas, MD, Innovation Delivery Ltd • Mr. Darrell Mann, CEO, Systematic Innovation Ltd • Mr. John Garrett, Vice-Chairman, Thomond Region, Engineers Ireland MANDATORY CPD - 2017 CPD: PLAN DO RECORD COMPETENCE RECOGNITION PERSONAL & PROFESSIONAL DEVELOPMENT ELEARNING: CONNECT ANYTIME, ANYWHERE • 10 elearning courses for members – FREE www.engineersireland.ie • ‘Summer Specials’ – 50% reduction on selected CPD Courses • In-company training programmes available – tailored to suit your needs AND FINALLY…….. • Innovation Seminar = 1/2 Day CPD! • Next CPD Best Practice sharing event: CPD Employer of the Year Excellence Award Final – 7th October THANK YOU SAFE HOME PLEASE LEAVE YOUR EVALUATION FORM