1. INNOVATION Joe Messina, Director of Planning Marla Kouche,
VP-Strategic Program Office Innovations in New Product Development
& Marketing 2009 FROST & SULLIVAN EXECUTIVE MINDXCHANGE
June 7-10, 2009 / SAN FRANCISCO, CA
2. Lessons Learned 1. Insight on building pragmatic innovation
practicesthat are effective at creating ROI 2. Tools & methods
to change the engine while theairplane is in flight 3. Successful
factors for creating a corporate cultureof innovation 4. Best
practices gleaned from the 2008 MindXchangeapplied toward
innovation excellence 2
3. Quest Diagnostics and MedPlus Parent Company: Quest
Diagnostics (NYSE: DGX) Global leader in diagnostic laboratory
testing, information and services >$7B in annual revenue
Established business relationships with 300,000+ physicians, 3,000+
hospitals and 1,000 payers MedPlus, Inc. Healthcare information
technology subsidiary of Quest Diagnostics Headquartered in
Cincinnati, Ohio with operations serving North America Commercial
software provider responsible for 25-30% compound annual growth and
external IT strategy Create and deliver IT solutions to Hospitals,
Health Systems, RHIOs, and 140,000+ physicians3
4. Our Vision Dedicated people improving the health of patients
through unsurpassed diagnostic insights 45,000 employees and
innovation.Our Mission We will be the undisputed world leader in
diagnostic testing, information and services.450 employees4
5. Enabled by the MedPlus Solutions Clinical Portal Clinical
Catalyst ChartMaxx Seamless access to Bridge to a full EMR
Centralized electronic aggregated patient Point-of-care toolset for
the access to the complete clinical data creation, management
&legal medical record Driver of physician sharing of clinical
Preserves paper processes satisfaction and improved information for
the floor while clinical decision making Incremental functionality
toautomating work flows for the existing Care360HIM and back office
Data Exchange Physician Portal Fully supports HIM
Servicescompliance needs Facilitate the exchange ofPatient Portal
Improved data access information between sourcesupports
improvements systems and user systems Engage the patient in the
beginning with management of their careregistration through
Hybrid-federated data model On-ramp for the patient for delivery of
the final bill Enterprise Master Patient administrative and
clinical Index capabilities Record Locator Service5
6. Opportunity Right Place, Right TimeThe Healthcare IT
Outlook, spurred by the Economic Stimulus Package, directly aligns
to our core competencies Majority of records still Data resides in
Unconnected networks exist in paperdifferent silossuboptimal
business & clinical outcomes 6
7. Change ImperativeGetting to revenue in Emergent business
Employee attrition and a an opportunisticmodel and product drop in
satisfaction marketplatformscores7
8. discovery 8
9. Early Conversations 1. What is the mission what is our
change agenda? 2. What can we learn from other innovation models?
3. Why did it take so long for us to get this far? 4.How will we
resource/fund the program? 5.How does this pipeline connect to our
others? 6.How will we prioritize projects? 7.What kind of
innovation do we seek? 8.Are all innovations welcome? 9.What core
capabilities do we possess? 10. What core capabilities do we lack?
11. How wide/open is our community? 12. How will we engage people
over time? 9
10. Innovation Models RANKRANK COMPANY REVENUEMARGINKNOWN FOR
ITS MOST 20082007 GROWTH GROWTH INNOVATIVE2005-082005-08[% WHO
THINK SO]1 1 APPLE 30.4 15.8 Product (47%) 22 GOOGLE52.6 -8.2
Customer Experience (26%) 33 TOYOTA 4.2-35.9 Process (35%) 45
MICROSOFT 13.5 -1.3 Process (26%) 57 NINTENDO61.1 20.6 Product
(48%) 6 12 IBM4.4 14.3 Process (31%) 7 15 HP10.9 31.6 Process (39%)
8 13 RIM 74.1 11.2 Product (53%) 9 10 NOKIA 14.0-10.3 Product (38%)
1023 WAL-MART 9.1 -2.1 Process (49%) 1111 AMAZON.COM31.2 -4.8
Customer Experience (41%) 12 8 P&G 11.72.4 Process (27%) 13 6
TATA PrivatePrivate Product (44%) 14 9 SONY 3.1-41.1 Product (40%)
1519 RELIANCE28.5 11.9 Business Model (35%) 1626 SAMSUNG 10.5 -1.5
Product (41%) 17 4 GE10.1-12.2 Process (36%) 18NR VOLKSWAGEN 7.1
33.6 Customer Experience (38%) 1930 MCDONALDS7.29.5 Customer
Experience (55%) 2014 BMW6.9-14.6 Customer Experience (37%)
BusinessWeek: The 50 Most Innovative Companies 10
12. Innovation Strategies 1. Inspire: Provide an inspiring
vision; lead innovation; emphasizeopportunities, not problems;
trust your people. 2. Organize: Set rules; create a system, guiding
structures andprocesses supporting innovation and idea management.
3. Synergize: Leverage diversity; facilitate cross-pollination
ofideas; create and empower cross-functional teams. 4. Empower:
Create a culture of questioning; encourage risktaking; give your
people freedom to experiment, fail, andrestart. 5. Reward: Measure
progress; reward both individual andcollective contributions;
celebrate success, make business fun. 12
13. Change Agenda Hero-culture Mentoring-culture Formal and
closedInformal and open Command and controlConsensus-driven Fear of
making mistakesExplore and evaluate Local thinking Systems thinking
Redundancy Diversity 13
14. Challenges BUSINESS AND PROGRAM 14
15. BUSINESS CHALLENGE1 MILLION TRANSACTIONS PER DAY15
16. BUSINESS CHALLENGE non-traditional competitors$19.6
Stimulusbillion HIT LAND RUN 2009 16
17. BUSINESS CHALLENGEemergent standards and business
model17
18. PROGRAM CHALLENGEHIGH EXPECTATION low realization 18
19. PROGRAM CHALLENGEtask-tool mismatch 19
20. PROGRAM CHALLENGEcompeting priorities20
21. process PROGRAM CHALLENGE entrenched behaviors idea 21
22. PROGRAM CHALLENGEresource constraints 22
23. solution23
24. DEVELOP COMMUNITY VISIONbuyer-seller marketIDEAIDEA
IDEAIDEA 24
25. PROVOKE STRATEGIC CONVERSATION how big how open? 20092010
2011 MedPlus Employees MedPlus Employees MedPlus Employees Quest
Employees Quest Employees Quest Employees Advisory Customers
Advisory Customers Customers Partners Partners500 members500
members10,000 members10,000 members 100,000+ members100,000+
members25
26. ADOPT-ADAPT COMPLIMENTARYmanagement frameworks BOS Blue
Ocean Strategy BSC Balanced Scorecard SCRUM/Agile Six Sigma Carrots
26
27. INJECT DISCIPLINEinnovation program Articulate Mission,
Vision, Values and Change Agenda Install the Innovation Foundation
Team Process Funding Idea Management Technology Reward System
Cultivate community soil w/ challenges & content aligned to
strategic objectives Seed, Manage and Harvest27
29. CREATE INNOVATION PIPELINE VIEWSTomato garden Source:
Strategy as a Portfolio of Real Options, Timothy A. Luehrman,
Harvard Publishing29
30. PROVIDE A REVIEW PLATFORMfast-pitch spotlight30
31. GO I AM NOT SITI LIKELONGHORNS A CROOK NUTS GO AWAY I GOT
NO [regional dialects] MONEY crush kill destroy I SEE I PASS PAIN
passive consultative stern ILL TAKE __ BEERS DEVELOP SCREENS AND
DECISION RULEStribal voting gestures31
32. STAGE EVENTS mission impossible 50% short of MBO pipeline
target Have 250 ideasneed 250 more 15 days left350 Double our
pipeline produce at leastSweet250 sweet new new ideas Twas week
before Christmas ideas! 25% of staff stirring 1st Time Challenge
FUD 6 Teams 18 framed questions 90-minute team sessions 32
33. REDIRECT INVESTMENTSportfolio judo-flip Market Share Market
ShareHighLow10 % 20% Market Growth High Pearl OysterMarket Growth
LowCow Dog 70%33
34. iPhone App Spark: CTO Challenge to develop a robust
application that runs effectively on Apple iPhone platform.
Incubation Team: 4 Software Engineers, 1 Executive Sponsor Seed
Investment: