Innovation In The Downturn
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Transcript of Innovation In The Downturn
Innovation in the Downturn
Afrivate26 March 2009
Looking at the Landscape
How do you expect the economy to look at end of 1st quarter 2009?
McKinsey Global Survey : Economic Condition Snapshot (February 2009)
*Compared to September 2008
How active should government’s role be in the
economy, since the start of the downturn.
McKinsey Global Survey : Economic Condition Snapshot (February 2009)
Where should government focus their efforts ?
McKinsey Global Survey : Economic Condition Snapshot (February 2009)
What steps has your company taken to face the
downturn?
McKinsey Global Survey : Economic Condition Snapshot (February 2009)
What is Innovation?
Innovation is therefore much more than invention
Need to successfully commercialize the invention
Trott 2005
New Idea Invention Innovation
Invention Process
Innovation Process
Idea to Tangible Exploit to Commercial Success
Why is Innovation important?
product Innovation Funnel
William B. Rouse, “Improvement & Innovation Improvement & Innovation” 2007
Simulation session Debriefing
workshop
Modeling phase
Ideas
Focussed process
development
projects
Next simulations
Duration ca 3 months
process Innovation Funnel
Innovation funnel across extended enterprise
ProductInnovation
ProcessInnovation
TechnologyInnovation
Op
erat
e
Op
tim
ise
Co
nti
nu
ou
s Im
pro
vem
ent
Rad
ical
In
no
vati
on
Gre
en F
ield
s In
no
vati
on
Incr
emen
tal
Inn
ova
tio
n
Com
petit
ive
Ent
erpr
ise
Operate
InnovateInnovate
Blending Innovation and Operation
The Competitiveness Challenge
Operate
InnovateInnovate
The Innovation Capability Dilemma
Strategy & Objectives
Function & Processes
Organisation &
Management
Data & Information
Customer & Suppliers
Organisational Construct
Inn
ova
tion
P
roce
ss
Kn
ow
led
ge
&
C
om
pe
ten
cy
Org
an
isa
tion
al S
up
po
rt
Inn
ova
tio
n C
apab
ility
Co
nst
ruct
A More Competitive Enterprise
ICMA 2 3 4 51
Innovation has finally Arrived
of 3000 global executives consider Innovation top 3 priority
Less than
of executives feel ROI is sufficient 50%
66%
Source: BCG Senior management innovation survey 2008
Currently,
Strengths |• Understand the customer
• Executive Level Support
| Weakness• Speed of delivery
• Discipline of Delivery
• Managing Risk
• Partnering with Others
• Earmarking sufficient funds
Source: BCG Senior management innovation survey 2008
Currently,
Types of Innovation
• 3 Life Cycles– Product Life Cycle
– Technology Life Cycle
– Enterprise Life Cycle
• Dealing with Darwin – 15 Types of Innovation
Geoffrey Moore’s 15 Innovation Categories
The Economic Good Times Scenario
OperationsGenerating revenues and funding innovation
Continuous monitoring and improvement of operations
Portfolio Management
Deploy, refine, formalise and exploit opportunities
Identify opportunities, generate ideas and
concepts, and determine feasibility
Executing Innovation Initiatives
Improving Innovation Capability
Ass
essm
ent
Infr
astr
uctu
re A
naly
sis
Re-
asse
ssm
ent
Innovation Process
Knowledge & Competency
Organisational Support
Impr
ovem
ent
Pro
gram
mes
The Economic Bad Times Scenario
OperationsGenerating revenues and funding innovation
Continuous monitoring and improvement of operations
Portfolio Management
Deploy, refine, formalise and exploit opportunities
Identify opportunities, generate ideas and
concepts, and determine feasibility
Executing Innovation Initiatives
Improving Innovation Capability
Ass
essm
ent
Infr
astr
uctu
re A
naly
sis
Re-
asse
ssm
ent
Innovation Process
Knowledge & Competency
Organisational Support
Impr
ovem
ent
Pro
gram
mes
How innovation fit are you?
Innovation Maturity Fitness?
• 5 Levels of Innovation Maturity Fitness
3Practices, procedures and tools formalisedConsistent outputs maintain market share
SupportedInnovation
4Integrated and aligned activities and resourcesOutputs are a source of consistent differentiation
AlignedInnovation
Synchronisation of activities and resourcesOutputs provide sustained competitive advantage
5SynergisedInnovation
Consumed with day-to-day operationsOutputs are inconsistent and unpredictable
Ad-Hoc Innovation 1
Need to innovate identified and definedOutputs are inconsistent, but traceable
DefinedInnovation 2
What to do in the Downturn?
If you are at maturity
• No way of rapid recovery
– Get expertise’s help in
Ad-Hoc Innovation 1
If you are at maturity
• Obtain partial help from experts
3SupportedInnovation
If you are at maturity
• Adjust your idea filter
• Harvest ideas to solve problems related to the downturn
– How to cut costs
– Hire better people for less
• Adjust your feasibility filters
• Go to portfolio and re-align– Reposition for when market turns
5SynergisedInnovation
• Keep expertise• Cut costs
• Negotiate with suppliers
• Find shortest route to new ways to do business
– Different products
– Cheaper processes
– New markets
If you are at maturity?unknown
Innovation Capability Assessment
•Assess to determine maturity level, • Identifies best innovation improvement activities
Improvement ActivitiesInitial Assessment
Innovation Process
Knowledge & Competency
Organisational Support
Imp
rov
ing
In
no
va
tio
n C
ap
ab
ilit
ies
(W
ed
ne
sd
ay
Fit
ne
ss
)
Infrastructure Analysis
PD, ED, IM, etc
Processes
IKN, BI, etc
Strat, Culture, Org struct, etc.
Sp
ec
ific
In
no
va
tio
n
Imp
lem
en
tati
on
s
(Sa
turd
ay
Ga
me
)
Analysis/ Idea
Generation
Concept Definitio
n
Concept Feasibili
ty
Develop &
Implement
Measure &
Optimise
Exploit
Business Unit A
Business Unit B
Business Unit C
Value
Chain
Measure, Optimise, Assess
Innovation Process
Knowledge & Competency
Organisational Support
Innovation Process Improvement Roadmap(s)
Knowledge & Competency Improvement Roadmap(s)
Organisational Support Improvement Roadmap(s)
Identifying Immediate Pains
Identifying Immediate
Opportunities
Identifying Current
Innovation Projects
Identifying Prototype Innovation Project(s)
Portfolio
Mngment
Indutech’s innovation improvement lifecycle
Thank you