Innovation business architecture generic layers 1
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Collaborative Innovation Reference FrameworkThe Strategic Layers
The essential layers that support innovation
The first of the three integrated frameworks is the Innovation Business Architecture. It starts by “peeling” what we call as the innovation onion. We recommend starting at the highest level, at the strategic level, and working down through several other “layers”, including people and processes. The goal of this first model is to deconstruct the important drivers and influencers which will direct innovation activities. From this we identify a innovation framework.
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We are interested in explaining the many facets that make up a successful innovation endeavour. It can be extremely tough to capture and explain the complexity of innovation. We would like to see an emerging reference model for innovation from this starting point. The end result is to create a common innovation model or framework that accelerates acceptance, reduces mystery and rework and simplifies innovation efforts. Innovation is dynamic. Opening this set of models allows for it to be constantly improved for all to benefit - this is our stated aim in publishing these models.
We submit these suggested models as a starting point to deconstruct how innovation works and to encourage a “common” innovation model across all geographies, industries and markets. Developing a common innovation model and approach reduces confusion and simplifies innovation work. We believe we can remove a lot of the mystique around innovation and help accelerate its adoption and implementation by firms everywhere if we can agree on basic models and principles.
We would encourage you to feel free to send commentary, corrections, additions or changes to the models or types to Paul Hobcraft or Jeffrey Phillips. We in turn will re-publish the model as necessary under a Creative Commons License, so that anyone who cares can use it and adopt the innovation model. We want this to be open and a transparent process but we will retain copyright while allowing others to copy, distribute, and make some uses of their work as long as we are credited for the original creation.
These are collaborative work-in-progress to achieve a common position for understanding innovation
► Go to the Wiki on http://cirf.pbworks.com
Our intention behind these different models of Innovation
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Goals/Purpose
• In the following set of slides we intend to outline an innovation model from the most “abstract” and philosophical perspective to the most tactical skills and processes you will need.
• We layer this because each successive layer of strategy, skills, approaches and processes uncovers new thinking that requires a deeper understanding for building and sustaining innovation.
• It sets about to resolve misunderstanding, it seeks to replaces myths with a practical, detailed understanding of innovation and all its ‘potential’ complexity.
• We provide a structured business architecture for innovation choice
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Multiple Layers
• We propose a model for innovation that consists of multiple layers• All of these layers must be fully considered in a systematic way.• These layers are called:
– Strategic Needs– People, Skills & Culture– Processes & Platforms– Approach types
• We recommend working from the “outside-in” for best results
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Strategic Needs
People, Skills & Culture
Approach Type
Processes & Platforms
The Multi-LayersBuilding an Innovation Business Architecture
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Strategic Needs
• We start at the most primary layer- the strategic considerations. – At this level we concern ourselves with the strategic issues that must be in
place before innovation can be attempted successfully.– We focus on the key core capabilities and place them into context that must
all exist and ‘reside’ before innovation can be attempted successfully. This is the ‘decision point’ to clarify and identify these
• The considerations need to cover the critical issues of – Strategic Intent– The culture & climate- past, existing and future– The value creation needs– Resource allocation & ongoing funding– Communication actions– Dynamics & Intensity clarification
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Strategic Needs
We move from the fundamentals to the critical enablers to make innovation happen. For example:
• Corporate Strategy– Where do we want to be as a company?– What role does innovation play in this vision?– What is our present status on innovation, what needs to change
• Enabling Innovation within the organization– What key core capabilities do we need?– How do we align them into the appropriate corporate context – What must exist and ‘reside’, what can be outsourced?
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Screen & Rationalize
Identify Potential
The value of consistently mapping back to these four reference points is important to gain consistency and validation of return on innovation investment
Evaluate
Establish
The four orientation points are briefly explained
Existing Portfolio and
Capabilities
OrganizationalReadiness,
Motivation & Desire
Align Market & Customer
Environment
Understand markets and customer needs and aligning your products & services to meet these needs.
Understand existing competitors and new entrants to exploit gaps and white space opportunities
Establish corporate strategies and where innovation links
Establish and align the vision, mission, objectives, strategy and tactics for realization,
Clarify the desire and motivation of the organization to innovate.
Ensure that business leaders are prepared to innovate.
Align compensation and evaluation to innovation activity
Existing product and service portfolio and identified gaps resolution.
Existing capabilities and capacity.
Strategic Alignment to Vision & MOST
(Mission, Objectives, Strategies & Tactics)
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Innovation Management Universal Need Environment
Strategic Intent
Innovation Funding
Communications
Strategic Leadership & Direction
Thinking through the Strategic and Organizational Issues
Culture & Climate
Customer needs / wants
Foresight, Scenarios Context & Visioning
Identify Potential Establish
Strategy
Screen & Rationalize Evaluate Skills
Likely new entrants and competitive challenges
Changing environmental conditions
(legal, regulatory, etc)
Clarify the Innovation Dynamics Needed
Value creation objectives
Considerations for Time
Resource Allocation & People Considerations
Capability & Competency Build
Training
Strategic Needs
Critical Strategic Questions and Considerations
Alignment & Orientation of Product & Services
Align Market & Customer
Environment
Existing Portfolio and
Capabilities
Strategic Alignment to Vision & MOST
(Mission, Objectives, Strategies & Tactics)
OrganizationalReadiness.
Motivation & Desire
Capability gaps
Ability to deliver
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Strategic & Organizational IssuesIf you move too quickly through this stage you will NEVER get the results you want.
Each of these strategic “considerations” is important and must be addressed prior tobuilding about any innovation effort.
• You need to have clear strategic goals and innovative strategies and communicate these effectively to provide direction and scope for the innovators.
• You must establish clear links between Strategic goals and innovations contribution
• This needs to be robust, well considered and well resourced
• You must account for the customer needs and market realities within this review
• You must understand your existing innovation activities, what they provide and where the limitations are so as to be clear on the gaps you need to address/ change.
If you proceed without addressing all the strategic consideration, your team will struggle by having a poorly understood strategic framework to work within
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Strategy
People, Skills & Culture
Approach Types
Processes & PlatformsIncentives
Creativity
No fear of riskOpen communication
Trust
People, Skills & Culture
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People, Culture, Skills & Structures to promote a winning solution
People are the “active ingredients” in innovation, they are the catalysts that turn novelty into real benefit.
• The pivotal role of people to act as innovation carriers- their networks and engagement, their collaboration skills, the way that their knowledge flows
• Developing a climate where people are openly encouraged to have consistent interactions encouraging their tacit knowledge to flow
• Seek to provide a clear understanding of how innovation itself is a potent competitive force that drives economic wealth, productivity and growth needs harnessing.
Innovation above all is a social process and not a technical one. Establishing the ‘sense of shared purpose’ in spirit, ideas, culture and innovation is a MUST
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People, skills, competencies
Creativity Invention & Innovation
Culture & Climate forInnovation
Relationship Building
InnovationTechniques
TrainingReward &
Recognition
Capability Building
Identify Potential
Screen & Rationalize
People, Skills & Structures
Recruitingnew Skills Encouraging
Leadership & Knowledge
Thinking through the People, skills & competencies
Existing Portfolio and Capabilities
Strategic Alignment &
Validation
Operational Readiness,
Motivation & Desire
Align Market & Customer
Environment
Establish
Strategy
Evaluate Skills
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InnovationTechniques &
Training
Relationship & Trust Building
Capability & Capacity Building
Addressing the People,
Culture, Skills & Structure
Governance & Managing Risk
Communicating Listening & Feedback
Broad Leadership Facilitation
Value of networks, teams
and the individual
Building ‘thinking time’ into the
process
Accumulating Tacit Knowledge and putting it to
different use
Building that sense of
community purpose.
Encouraging Diversity &
Creative TensionChallenging the status quo and
inertia
Exposure to new
perspectives
Emotional Equity needs to be
forward focused
Internal markets for ideas, talent and resources
Depoliticize decision-making
and personal bias
Find new ways to ‘unleash’ human
imagination
Achieve a sense of identity and
passion
Buildingnew
Skills & habits
Encourage Creativity
Invention & Innovation
Culture & Climate forInnovation
Recruitingnew Skills
Relationship Building
Reward & Recognition
Encouraging Leadership & Knowledge
Capability Building
Dealing with Fear & Change
Strive to humanize the
process-people are the active
ingredient
Resolving Barriers & Constraints
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Strategy
People, Skills & Culture
Approaches
Processes & Platforms
Processes & Platforms
InnovationPipeline
InformationGathering
Idea to Commericalisation
5 Focal Areas
LifecycleManagement
4 P‘s
Complete view
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Processes & Platforms• Finally, you need a clear process that is…
– actively managed– able to deal with different approaches to and types of innovation– be sustainable and totally visible.
• In particular, the process needs to manage within the "4 Ps"– Pipeline– Platforms– Portfolio– Product Lifecyle Management
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Providing Feedback
Generate Incubate Filter Evaluate Select Prototype
Platform, Pipeline & Portfolio ManagementRegular Innovation Development Program is Established
Synchronize Build Manage Monitor Measure
Process & Platforms
Strategic Considerations
People and Skills
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Detailed Innovation Process
• The need for a consistent innovation process is composed of a number of steps or phases which need to be defined
• To be consistent you need to have a vigorous, consistent idea management process that moves through its different stages
• We “drill down” here as it is important to expose all of the underlying steps and assumptions. These need capturing, constantly evaluating and deciding upon to ‘kill or progress’
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Providing Feedback
Generate Incubate Filter Evaluate Select Prototype
Platform, Pipeline & Portfolio Management
Synchronize Build Manage Monitor Measure
Generate Incubate Filter Evaluate Select PrototypeGenerate ideasabout a specificproblem or opportunity usingidea generationtechniques suchas brainstormingor a distributedcommunity
Capture the ideasin a public forum orapplicable application to allow team membersto comment on,review and rank ideas.Tag and categorizeideas for easy searching andfiltering.
Filter all ideas to find the ones thatare relevant toa specific need,challenge or opportunity
Using establishedtransparentcriteria, evaluateall ideas that address a specificchallenge or problem
Once the evaluationis complete, rankthe ideas that arerelevant to a problemor challenge and select the ideasaccording to theirranking, evaluation,ability to address theproblem or challenge.
Develop roughrapid prototypesthat demonstratethe main conceptsof the idea andgain feedbackfrom potentialcustomers
A Consistent Innovation Process Needs to Be In Place
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The essential ‘4 P’s within the process
Portfolio management A portfolio tracks all of a firm’s existing products and concepts to identify where the firm is placing its investments and prioritize multiple competing objectives so as to align these behind the most effective strategy for the goal of finding value and optimal growth.
An innovation portfolio will indicate where the firm has its innovation investments and expose gaps or opportunities for new innovation efforts.
Pipeline managementMuch like a sales pipeline is made up of prospects, opportunities and finally closed deals; innovation requires an innovation pipeline which needs constant monitoring to ensure there is a systematic movement of ideas from generation to evaluation and selection.
The innovation pipeline must be constantly refreshed with new ideas, and each phase follows a type of “stage”/”gate” model requiring that the idea meet conditions or criteria for advancement
This needs to be systematic and sustainable in its application of process, evaluation and methodology.
Platform ManagementThis is the connecting point between strategic need and innovation activity where you establish broad strategic themes that are potentially more profitable
Product Lifecycle ManagementA Product Lifecycle Management software solution offers one ‘version of truth’ for all existing product iterations.
PLM can overcome potential isolated activities, islands of information and disconnected systems and poor cross-functional co-ordination and often a lack of innovation visibility for critical activity.
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Finally within Process & Platforms
Stepping back and viewing the approach so far
We establish a more ‘holistic’ view of building an innovation business architecture and the four alignment points.
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Approach TypeTo be discussed in next presentations
Align Market & Customer
Environment
Strategic Alignment &
Validation
Existing Portfolio and Capabilities
Organizational Readiness,
Motivation & Desire
Identify Potential
Screen & Rationalize
Strategic Considerations
Processes & Platforms
The Innovation Business Architecture Layered Process and the 4 Orientation Points
People , Skills & Culture
Establish
Strategy
Evaluate Skills
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.
4.Go-to-market
execution
5. Enabling Infrastructure
Common Environment, Networking & Collaboration-Building Tools
3. Systematic Innovation Process
2. Front End
Strategic Alignment &
Validation
Align Market & Customer
Environment
Existing Product & Service
Management
New idea Generation & Opportunity Identification
Identify Potential
Screen & Rationalize
1. Strategic Context
Desire & Motivation for innovation
Existing Capabilities & Skills
Strategies, Strategic Intent
Resources and funding
Trend Spotting
Scenario Planning
Product Development
Launch
Execution
Software Infrastructure
Scouting
Voice of Customer
Moving to the Mapping the 4 orientations within the 5 focal points (next deck).
Establish
Strategy
Evaluate Skills
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Paul Hobcraft• Email :
[email protected]• Phone Number
+65 91 751 4350
Jeffrey Philips
• Email: [email protected]
• Phone Number+01 919-844-5644
For Europe, Africa, Middle East & Asia For North & South America
Contact Details Collaborative Innovation Reference Framework
►Go to the Wiki on http://cirf.pbworks.com