Innovation Governance

Jan Lederman, December, 2014 1

The Board’s Role in Innovation

Jan [email protected]

mailto:[email protected]

OTOTYPING

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Agenda

What is innovation.

Innovation & commercialization.

Innovation as a system.

Role of the Board.

Questions the Board should ask.

Jan Lederman, November 19, 2014

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The New Economy

Knowledge

Dependent

Global

Entrepreneurial Rooted in IT

Driven by

Innovation


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What is “Innovation”?

…the design, development and/or

implementation of new or altered

products, services, processes,

systems, organizational structures

or business models for the

purpose of creating new value for

customers in a way that improves

the financial returns for the firm.

”

“

Innovation is new or better

ways of doing valued things.“”

Game-changers, like

the printing press,

transistors or vaccines

Making things bigger,

faster, better

INCREMENTAL INNOVATION

DISRUPTIVE INNOVATION


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Innovation & Commercialization

The process of

capturing the value,

by taking the

innovation to market

COMMERCIALIZATION

New or better ways of

doing valued things

INNOVATION


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What is Commercialization?

FROM MIND TO MARKET

…the means by which

an idea or prototype

is transformed into a

market-ready product.

Involves design, engineering, production

planning and related R&D…

… as well as capital investment, market

assessment and sales planning, &

financial and legal analysis.


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Innovation may be achieved

at all stages of the

commercialization cycle

Commercialization Cycle


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The Role of the Board

Role of the Board

in innovation

governance

Assess innovation opportunities.

Incent management towards innovation systems.

Educate itself on innovation

best practices.


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The Role of the Board

The Board approach

will depend on where

the company is on its

business cycle

Incent management towards innovation systems.

Classic Business Cycle

Momentum Growth Cost Cutting Decline

Adapted from Invison Business Edge

Innovation potential


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AgendaInnovation Systems

Design Thinking, Innovation

EngineeringIDEO, R. Martin

Not a substitute for foundational business

transformation processes, such as LEAN, 6

Sigma & ISO standards.

Best practices for innovation

systems are based on evidence

that 8 of 10 startups / products /

innovation initiatives fail.

The objective is to de-risk innovation.


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Innovation Systems


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Innovation Opportunities

How does the Board assess an innovative

opportunity?

Is there (really) an opportunity?

Can we win?

Is it worth it?


Compelling market need.

Significant value creation.

Differentiation and sustainable advantage.

Return and profit potential.

Good fit and timing.

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What are the anchors of a good opportunity?

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Board focus should be on

strategies to

de-risk the plan.

Not all certain at

outset.

Innovation Opportunities


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Agenda

8 Questions To Identify a Viable Plan

What is the market pain / opportunity?1

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What is the size of the opportunity?

What is your solution and is it meaningfully unique?

Who is your competition and how are you different?

Who is your target customer and how will you find them?


OTOTYPING

12/28/2014 16

Agenda

8 Questions To Identify a Viable Plan

How will you make money?6

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Who is on your team?

What is your plan (timelines / milestones / money)?

12/28/2014 17

For More Information

[email protected]

@JanLederman

Innovation Governance

Business

Transcript of Innovation Governance