Leading Research and Innovation in Expert Organisations

Minna Takala - QISOctober 2010Materials Day 2

Leading Research and Innovation in Expert Organisations

Focused on innovation in governments, research centres, corporations and universities

Content Themes• Culture and leadership supporting open innovation• Governance models and service• Examples of companies, institutions and open source communities• Stakeholders and relationship management• Managing innovation from idea to innovation• New ways of working supported by social media• Portfolio management and projects management• Reward and recognition

Selected examples from IBM, Google, Lego, P&G, Toyota, Philips & Nokia, research and govermental institutions, universitiesopen source communities and social media

AGENDA AT A GLANCE 1st Day 2nd Day

09:00 OPENING 09:00 Opening of the day & review of previous days results

09:15 INTRODUCTION AND KICKOFF• Agenda review• Introduction to facilitators & participants • Expected outcome of the workshop

09:15 FROM IDEA TO INNOVATION

ECOSYSTEM VIEW TO INNOVATION

10:30 – Coffee break – 10.45 10:30 – Coffee break – 10.45

CULTURE & LEADERSHIP

GOVERNANCE MODELS & SERVICES

WORK GROUP SESSION

NEW WAYS OF WORKING SUPPORTED BY SOCIAL MEDIA

12:30 – Lunch – 13:30 12:30 – Lunch – 13:30

WHAT OTHERS ARE DOING• Examples from companies• Examples from institutions & universities• Examples from open source communities

PORTFOLIO MANAGEMENT &PROJECT MANAGEMENT

REWARD & RECOGNITION- HOW TO ENHANCE PASSION FOR INNOVATION

14:45 – Coffee break – 15:00 14:45 – Coffee break – 15:00

WORK GROUP SESSION

STAKEHOLDERS &RELATIONSHIP MGMT

CLOSING• Summary• Feedback

16:00 16:00

Theme 4From Ideas to Innovations

Classic traps

Idea & innovation definitions

Success or failure

Roles

Leading Research and Innovation in Expert Organisations

Focused on innovation in governments, research centres, corporations and universities

Content Themes• Culture and leadership supporting open innovation• Governance models and service• Examples of companies, institutions and open source communities• Stakeholders and relationship management• Managing innovation from idea to innovation• New ways of working supported by social media• Portfolio management and projects management• Reward and recognition

Selected examples from IBM, Google, Lego, P&G, Toyota, Philips & Nokia, research and govermental institutions, universitiesopen source communities and social media

Innovation: The Classic Traps

Description

Strategy lessons

• Small or incremental innovations can lead to big profits.• Don’t focus just on new product development. Innovations occur also in marketing, production, finance and distribution.• Application of “innovation pyramid” – selected portfolio – top initiatives , most of the funding – ideas and influence can flow up and down the pyramid.

Process lessons

• Tight controls strangle innovation. The planning, budgeting and reviews applied to exiting businesses will squeezed the life out of an innovation effort.• Reward practices – emergent rewarding practices are required to enhance innovation.

Structure lessons

• Importance of interpersonal connections between innovation efforts and business• New combinations for innovations – cross channel, cross unit etc.• Creating innovation friendly culture for all employees (not only ivory tower “innovators”)

Skills lessons

• Technological innovations supported by great relationship and communication skills• Sustainable innovation teams for ideas• Innovation connectors – people who know how to find partners internally and externally – supported by cultures that encourage collaborationby Rosabeth Moss Kanter , HBR, November 2006

Trans-formation

(Disruptiveinnovation)

Radical Innovation(Breakthrough

innovation)

IncrementalInnovation

(Continuous development)

Source: Applied from vonStamn 2000

Product Service Process Business Model

Levels and Categories for Innovation

10 Types of Innovation: moving beyond products

Business

model

FinanceNetworking

2. Networkingenterprise’s structure/value chain

1. Business modelhow the enterprise makes money

Channel

DeliveryBrand Customer

experience

10. Customer experiencehow you create an overall experience for customers

8. Channelhow you connect your offerings to your customers

9. Brandhow you express your offering’s benefit to customers

Core process

Process.

Enabling process

3. Enabling processassembled capabilities

4. Core processproprietary processes that add value

6. Product systemextended system that surrounds an offering

Product performance

OfferingProduct system

Service

7. Servicehow you service your customers

5. Product performancebasic features, performance and functionality

Business Trends – Expanding Scope of Innovation

Sources:IBM CEO Study 2006 (a)Nokia Business Outlook 2006 (b) Kanter 2006, HBR (c)

Consumers • Raising meaning of enabling consumer creativity • Fragmentation of consumers and markets

Operators• Tailored applications and devices for niche success • Innovative services and features with partners • Focus on cost reduction

Technology • Value of technology realizes through innovation visible to end users • Fragmenting technologies (nanotechnology & miniaturization, multimedia capabilities …)• Open source software extension to new areas• Technologies enabling value added services• Grass roots level innovation – ideas from anybody

Media • Fragmentation of media channels, complex hybrid of alternative channels • Social media interaction and

Consumer co-creation

Mega trends • China approach – Self

Innovation focus on Chinese technologies

• Social webs & 3D virtual worlds for communication

Enterprise• Social web practices (Skype, wikis, blogs, tags … ) & 3D virtual worlds utilization in corporate environment

OPEN INNOVATION

SERVICE INNOVATION

BUSINESSMODEL

INNOVATION

PRODUCT INNOVATION

PROCESS INNOVATION

Systemic View to Innovation Development

Process Management

• Ideation / exploration phase

• Implementation / exploitation phase

Process Management

• Ideation / exploration phase

• Implementation / exploitation phase

Leadership

• Executive owners• Definition of innovation –

what is the meaning of innovation

• Vision for the future

Leadership

• Executive owners• Definition of innovation –

what is the meaning of innovation

• Vision for the future

People

• Competence development • Reward and recognition• Tuning Employee surveys

People

• Competence development • Reward and recognition• Tuning Employee surveys

Stakeholder and Resources

• Co-creation practices • Consumer insight• Enhanced visibility

Stakeholder and Resources

• Co-creation practices • Consumer insight• Enhanced visibility

Strategy and Policy

• Innovation focus in strategies & goals

• Clear governance model for innovation

Strategy and Policy

• Innovation focus in strategies & goals

• Clear governance model for innovation

Business Results

Operative Review

Business Results

Operative Review

Measurement, Analysis, and Knowledge Management

• Measures and reporting system for innovation • Innovation Portal to enhance visibility • Alignment Innovation / idea databases & tools when possible

Measurement, Analysis, and Knowledge Management

• Measures and reporting system for innovation • Innovation Portal to enhance visibility • Alignment Innovation / idea databases & tools when possible

Roles in Innovation System • Inventors (Innovators) – are people who create

original ideas. They can be experts, lead users or just ordinary people, with creative mind.

• Promoters - are people who actively and intensively support innovation.

– Expert promoters know the specific area and critical details. Is able to develop alternatives, solve problems and test prototypes.

– Power promoters have access to resources, and act as investors. They can influence priorities and schedules and protect expert promoters.

– Process promoters know internal process flows and restrictions. Is able to steers the innovation through the process stages.

– Relationship promoters actively advances inter-organizational exchange processes with their good personal relationships.

• Opponents argue against market potential, strategic fit, timing, technological aspects, side effects, cooperation etc. Also discover risks, point out informational needs and anticipate causes of resistance.

• Scouts are seeking for new ideas internally and externally through various sources.

• Gatekeepers are making decisions in various stages of innovation process. Their ability to face the unknown and see the future potential is essential for the innovation process.

• Formal roles – are responsible for implementation of innovation projects.

– Project managers– Project team members– Steering group members

• Semi formal / informal roles – Innovation Catalysts - people who are

willing to volunteer to get good ideas ahead. Members of innovation network / innovation community of interest.

– Lead users – consumers who are first to use – Beta testers – consumers who testing out the

first versions / prototypes, and give feedback for further development.

– Panel members – consumers who know the application context and evaluate the usefulness.

• Communities, social networks – Communities of interest / practice – people

interested in / working together with specific themes.

– Open source communities – source of new ideas, features and applications.

– User communities – source for new ideas and user needs. (Also crowdsourcing)

– Ideagoras - a places / communities on the internet where large numbers of people and/or businesses gather to exchange ideas and solutions.

Crowdsourcing

Crowdsourcing ~ tapping of the latent talent of the on-line crowd”

Crowdsourcing turns out tasks traditionally performed by employees to the Internet multitude. It may produce solutions from amateurs or volunteers working in their spare time, or from small businesses which were unknown to the initiating organization.The difference between crowdsourcing and ordinary outsourcing is that a task or problem is outsourced to the public, rather than another body. In crowdsourcing the activity is initiated by a client, and the work may be undertaken on an individual, as well as a group.

Possible benefits of crowdsourcing include:• Problems can be explored at comparatively little cost. • Payment is by results. • The organization can tap a wider range of talent than might be present in its

own organization.

7

IBM Software Group

© Copyright IBM Corporation 20077

It’s all about people … and the communities in which they are involved…

Mem

bers

hip

stab

ility

Labi

leS

tabl

e

Degree of Geographic DistributionSame place Everywhere

Communities of InterestCommunities of Interest

Local Users GroupLocal Users Group

PeersPeersCoworkersCoworkers

Social NetworksSocial Networks

Communities of PracticeCommunities of Practice

Collaboration & How People Work

Possible Innovation Measures • There are several possible measures that address innovation capability. Some of them

can embedded into business scorecards or a special set can be followed in a separate innovation scorecard.

Financials

Customer

People

Process

Financials People• Comparison of old and new businesses: profitability , revenue structure , growth• New product /service sales / profit• R&D investment / new generation of new products• ROI for old and new business• Value of patents & IPR’sSources: F&C data bases, IPR statistics

• Perception of innovativeness by employees• Innovation capability: social capital , networking with externals• Employee job satisfaction / job rotation• # of patents, ideas etc. submitted / implemented internally•Experience & capability in innovations, training available• Achieved rewards / recognitions, degrees etc. internal /externalSources: employee surveys , pulse surveys

Customers Process• Collaborative customer innovation • Perception of innovativeness and potential by customer• Value creation for the customer with new solutions• Image and reputation, innovation awards• Share of new customers • Customer satisfaction / new productsSources: Customer satisfaction surveys, internal data sources

• # of explorative versus traditional projects/concepts /products• Usage of available innovation channels – activity of channels (internal / external usage ), output, how many new ideas /patents/business ideas/initiatives etc. • Performance of innovation processes (tracking, tracing, investing, transition etc. etc. )• Risk profile / portfolio • Time to market , survival rate

How to Innovate and Enhance Innovativeness?

There are many question that managers ask about innovation management

• How can I use innovation to enhance my units activities in long time run? -> Implications to strategy creation

• How can I help my people to be more innovative? -> Enabling innovativeness

• What are the obstacles to innovation, and how do I remove them? -> Removing obstacles

• How do I / should I optimize innovation process and how to measure it? -> Enabling the flow – idea creation and implementation, assessments & measures

• How do I help everyone in my organization participate in innovation or can organization be too innovative?? -> Enhancing innovative organizational culture

Theme 4 – From Idea to InnovationGroup Work options & Examples

Group Work• Innovation

accelleration from idea to reality

• What is valued & valuable for stakeholders?

Examples • Philips – InnoHub

• P&G – moving focus from internal to scouting for external

• Yle & Bambuser

• Ireland Idea Challenge

• Aalto University

• Open Ideo

• Kaipaus

• Patients Like Me

Theme 5New Ways of Working Supported by Social Media

New channels for communication, working & learning

Examples

7

IBM Software Group

© Copyright IBM Corporation 20077

It’s all about people … and the communities in which they are involved…

Mem

bers

hip

stab

ility

Labi

leS

tabl

e

Degree of Geographic DistributionSame place Everywhere

Communities of InterestCommunities of Interest

Local Users GroupLocal Users Group

PeersPeersCoworkersCoworkers

Social NetworksSocial Networks

Communities of PracticeCommunities of Practice

Collaboration & How People Work

17

18

Do you use

Social Media?

Challenge !!!!!

EFQM 2009- Quality & Web 2.0Session in Paris

Examples of new ways of working

Google Marketing – a business book within 30 hour

Publishing Revolution by MIT & Wharton

www.wearesmarterthanme.com

Otetsudai – Networks from Japan ... Open Source SW development...

20

New approaches to work and

to ways of working are emerging ...

...

One person & One day

A World’s Record:• 14 jobs /day- Fish handler- Dog walker- Car watcher- Substitute player- Restaurant helper- Passing out flyers- Personal car

washer- Personal shopping- Haircut model- Store employee- Gathering golf

balls• 39.6 Km • 35 900 Yens• ~ 220 €/day

http://lovejobs.jp/

Rendez –project –Virtual working & sharing environment

Www.openideo.com

Examples of new ways of working –at personal level

• Jeremiah Owang – Social Media Analyst – Forrester

• Sacha Chua – IBM open source developer & geek

• Luis Suarez- IBM Social Media Evangelist

24

25

The 12 Principles of Web 2.0 Collaboration

Description How this can be enhanced ?

Purpose We have a shared goal or interest. -> network intent clearly defined-> ability to discuss the intent with other members

Identity We know who’s who. -> personal social network – better access to people you already know-> social phonebook – enabling new contacts

Reputation We recognize and build status on our actions.

-> votes , tags etc. -> social network analysis, connections and contacts made visible

Governance We agree that our behavior can be regulated according to shared or stated values.

-> commonly agreed values (relates to purpose)- > agreed WOW - ways of working (e.g. blog guidelines)

Communication

We have ways to share information and ideas.

- > possibility to easily share and search

Groups We relate to each other in smaller numbers

-> core teams -> task forces, ad hoc projects

Environment We interact in a shared space that is appropriate to our goals.

-> virtual environment - easy access to different elements -> context awareness

Boundaries We know who belongs and who does not. -> stakeholder roles & expectations-> visibility to members of groups and to their roles relates to social phonebook)

Trust We know with whom we’re dealing and that it’s safe to do so.

-> references (social network analysis) visibility to who knows who -> quick trust (favor for a favor)

Exchange We can trade knowledge, support, goods, services, and ideas.

-> attitude: willingness to openly share in agreed context

Expression We have a group identity and know what other members are doing. We can easily indicate our preferences and opinions.

-> social phonebook (personalization) -> information about availability, location, activities-> voting, tags, emoticons

History We look back over our history and track our evolution.

-> visibility to development / activities over the time

© 2008 Nokia V1-Filename.ppt / YYYY-MM-DD / Initials

Company Confidential 27

Project Wonderland - Chemistry Department, UWI-Mona

• ... Educators are increasingly looking to technology to support teaching and learning. Sun's Open Source Project Wonderland creates a virtual environment that was originally implemented to support business collaboration, in particular for their own staff, where on any given day many were telecommuting or absent from office yet needed to actively participate in meetings, etc.

28Sources:http://wwwchem.uwimona.edu.jm/WL/https://wonderland.dev.java.net/index.html

Theme 5 – New Ways of Working Supported by Social Media

Group Work• Identification of new

& meaningful channels

• Looking into new working styles

Examples • IBM - support for global

communities & use of social media - Sasha Chua

• Nokia use of social media for employees & consumers

• Aalto Entrepreneurial Society

• Tekes Tori

• F-Secure

• Lulu Lemon

Theme 6Portfolio Management &

Project Management Varius views to portfolio

Back to basics

31

General good practices in Portfolio Management 1(4)

32

General good practices in Portfolio Management 2 (4)

33

General good practices in Portfolio Management 3(4)

34

General good practices in Portfolio Management 4(4)

35

Overview of Reward & Recognition practices

Nokia

Design contests for consumers

Nokia Sphere points & prizesTRUE ideas points & prizes Nokia Beta Labs – awards

Nokia Alpha Labs – awardsNokia Foundation scholarships

Inventor and Designer Awards IPR Nokia Quality Awards Innovations awards

Venture Innovation Partnership VIP (Growth Partners)

Crowd-sourcing& lead-userco-creation

Peer-production

ExtCo

Extended Enterprise

Idea generationIdea generation Conversion & DevelopmentConversion & Development DiffusionDiffusion

In-unit / cross-unit / external From idea to results GTM and Bring to ScaleScreening & initial funding

Internal and external co-creation – from ”crowd-sourcing to peer-production”

Internal and external collaboration – from extended enterprise to incubation

NRC hubs– grants for universities

Apple’s iFund, Cisco’s I-Prize

Android Developer Challenge

Facebook – prizes in developer camps & user tests

Dell’s Ideastorm

~ Hotspots: special places, special prices,

Forum Nokia PRO Awards

Nokia Foundation Award for MySQL

IBM Innovation Jam

Google’s predictive markets

SUN Virtual Wall of Fame

36

Reward & Recognition practices for enhancing innovation

One of the kind / Ad hoc practices … Special Programs … Systematic & Regular Practices

Continuous Rewarding … Rewards based on special campaigns

Regular allocation of Investment & resources … Special funds & resources

NO financial rewards … X0 000 000 € rewards

No rewards … Points systems … Tangible rewards

No celebration … hand shake … Open ceremonies, big scale events

Rewards from innovations in the field … Rewards from potential ideas

… Nominations & special roles as rewards

Theme 6 – Portfolio Management & Project management

Group Work options & Examples Group Work• Dimension of portfolio

management – which views are important?

• How to enhance visibility & save time in porfolio & project mgmt?

Examples • Toyota – A3 reporting practices

• Google – creating space for experimentention

• P&G – using portfolios to enhance external approach

• Tekes portfolio

• Finninsh Map Portal

• Safipa portfolio

• Innotiimi

Closing up

The next steps• Quick wins

next week• Sort term option

1-3 months• Long term

1-3 years

Comments & Feedback

Minna Takalawww.minnatakala.com -

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