Innovation in Hard Times

Dr Chris YappChris_yapp@hotmail.co.uk

ThemesWhat is innovation?Where are we now?Key ideasLeadershipPolicy Innovation

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Innovation =newMiranda“Brave new world that has such people in it”Prospero“’Tis new to thee”

• The Tempest: W Shakespeare

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Charles Handy on Change..Performance

Time

A

B

C

D

E

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Key role of Innovation

Invention Innovation Diffusion

Necessity is the Mother of Invention

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Innovation

Generating value from ideasThe intersection of invention with insightA Process of Social Change

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Wikipedia’s list of Innovation TypesBusiness ModelMarketingOrganisationalProcessProductServiceSupply ChainSubstantialFinancialIncrementalBreakthrough, disruptive or radical New technological systems (systemic ) Social

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Rules for Stifling InnovationRegard any new idea with suspicion - because it's new,

and because it's from below. Insist that people who need your approval to act first

go through several other layers of management to get their signatures.

Ask departments or individuals to challenge or criticise each other's proposals. (That saves you the trouble of deciding - you just pick the survivor.)

Express your criticisms freely, and withhold your praise. (That keeps people on their toes.) Let them know they can be fired at any time.

Treat identification of problems as signs of failure, to discourage people from letting you know when something in their area isn't working.

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Stifling Innovation…Control everything, carefully. Make sure that people count

everything that can be counted, frequently. Make decisions to reorganize or change policies in secret,

and spring them on people unexpectedly. (That also keeps people on their toes.)

Make sure that requests for information are fully justified, and make sure that it is not given out to managers freely. (You don't want data to fall into the wrong hands.)

Assign to lower-level managers, in the name of delegation and participation, responsibility for figuring out how to cut back, lay off, move people around, or otherwise implement threatening decisions that you have made. And get them to do it quickly.

And above all, never forget that you, the higher-ups, already know everything important about this Rosabeth Moss Kanter; Change Masters

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The Public Sector doesn’t innovate because....It can’t go out of businessExceptionalismIt’s a monopoly or pseudo-competitionLack of competitionLack of skills..RegulationTargetsPoliticsLeadershipCultureTrade Unions.......YAWN

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Great Ormond Street

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Dimensions of the Current ChallengeEconomicChange

Strategic Response

cyclical

structural

Reactive Proactive

Market Step Change

Sitting Tight Mopping up

Niche Portfolio

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Dynamics of the Current ChallengeEconomicChange

Strategic Response

cyclical

structural

Reactive Proactive

Market Step Change

Sitting Tight Mopping up

Niche Portfolio

New Entrant

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Problem TypesDo we know whereWe are going?

Do we knowHow to getThere?

NO YES

NO

YES

TASK:OperationalManagement

TASK:DirectionSetting

TASK:ProcessDevelopment

TASK:ConceptCreation

After Eddie Obeng

Best practice

Next practice Emerging practice

Scaling practice

Whose problem?

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Low

Low

High

HighUncertainty

Co

mp

lexi

ty

Academic/Expert

Consultant

PoliticalSystem

Wisdom ofThe Crowds

ThinkTank

What value?

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Low

Low

High

HighUncertainty

Co

mp

lexi

ty

Academic/Expert

Consultant

PoliticalSystem

Wisdom ofThe Crowds

ThinkTank

IdeasTrack record

Knowledge

During Step Change?

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Low

Low

High

HighUncertainty

Co

mp

lexi

ty

Academic/Expert

Consultant

PoliticalSystem

Wisdom ofThe Crowds

ThinkTank

Consultancy squeezed as limited track

record

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Wisdom of the Crowds

“In the Future blind People willBe able to drive cars”

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Results

Probability 0.9 with some 0.2Today with Resources: 1-3 yearsIn practice: 3-10 yearsIn reality: 10-100 years

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Drucker: Innovation and Entrepreneurship

IncongruitiesThe UnexpectedDemographicsProcess needIndustry and Market

StructuresChanges in

PerceptionNew Knowledge

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Sources of Innovation

Manufacturer Active Process

User Active process

Source: Eric Von Hippel, MIT

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Diffusion of Innovations

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Why do some Innovations take longer to diffuse?

HomophilyHeterophily

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Open InnovationInnovating with lead usersCo-design, co-creation and co-delivery“Open source”Creative CommonsBattle over “digital rights”

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Organisational culture

Specialists and generalistsPersonal credibilityTolerance of uncertaintyStory tellingLeadership

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Organisational Roles in Innovation

SponsorProduct ChampionOrganisational Champion

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Public Policy Challenge

Speed

UniversalAccess

LocalDetermination

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The death of “the death of distance”Smart technologies need smart peopleSmart people thrive on other smart peopleSmart communities thrive on diversity,

openness and toleranceSmart communities need infrastructure

and supportClusters rule!!!!

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The New Renaissance

Information explosionCity stateBlurring of

arts/humanities/science/technologyNew conceptsLeading to a new enlightenment?

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Challenges for Public Sector InnovationScaleInclusionComplexityBest Practice?Social InnovationTime ScalesInnovation ProcessDiffusion of

Innovations

NOT It can’t go out of business Exceptionalism It’s a monopoly or pseudo-

competition Lack of competition Lack of skills.. Regulation Targets Politics Leadership Culture Trade Unions....

Thank You