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"The arrogance of success is to think that what you did yesterday will be

sufficient for tomorrow.”

What is Innovation for you

It is not only about

• money on R&D• product itself• how different it is

It’s why they failed

Consistently winning awards

GpsDuct tapeMicrowaveJeepDigital Camera

It’s not about the product itself

It’s the process behind it

Al Qaeda

1st Step 2nd Step 3rd Step

Idea DiffusionIdea Generation Idea Conversion

Within unitAcross unitsOutside parties

ScreeningInitial Funding

Dissemination across and outside

organization

Crowd sourcingReal life Impact ResourcesStrategy

Middle managersMultiple participation

Innovation Value Chain

Idea DiffusionIdea Generation Idea Conversion

KPI’s

No. of high quality ideas Percentage of ideas• selected and funded• lead to revenues

Percentage of penetration• customers• markets• channels

Capacity to innovate is only as good as the weakest link

Scorecard

Idea-Poor Diffusion-PoorConversion-Poor

Australian Army

“armies don’t innovate unless by stimulating new ideas, incubate the best ones

and communicate them across the organization.”

Don’t Agree Partially Agree

AgreeActivity Phase

“Our culture makes it hard for people to put forward novel ideas

Agree

In-house

Idea-PoorFew of our innovation projects involve members from different units

Cross pollination Our people typically don’t collaborate

across units or businesses

We have a risk-averse attitude toward investing in novel ideas Selection

Conversion-PoorManagers have a hard time getting traction developing new businesses Development

We’re slow to roll out new products Diffusion Difusion-Poor

• Incentive to write ideas• Increase frequency of

publication

“Evangelists”

• U.S. Army - Rapid Innovation Fund

“Safe Haven”

• Create channels and encourage interaction between units

• Build relationships with allies

• Recognize and incentivize talent

“Cross Unit Networks”

“External Networks”

“Talent Management”

Recommendation

Idea DiffusionIdea Generation Idea Conversion

Critique

Can’t be standardized

• Subjective KPI’s(“No. of high quality ideas”)

• Screening Criteria

SequentialI f idea-poor - Cannot assess idea diffusion stage at fits full potential

Made for “big companies”Solutions don’t fit in “small companies"

Lack of a Lean Approach

• No incentive for MVP’s

• No opportunity to readjust the product to better meet customer needs

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Nerve Gas Sarin Gas

You are the key element - What impact will you have