10 types of Innovation: Move Beyond Products to Win Business model Finance Networking 2. Networking enterprise’s structure/ value chain 1. Business model how the enterprise makes money Channel Delivery BrandCustomer experience 10. Customer experience how you create an overall experience for customers 8. Channel how you connect your offerings to your customers 9. Brand how you express your offering’s benefit to customers Core process Process. Enabling process 3. Enabling process assembled capabilities 4. Core process proprietary processes that add value 6. Product system extended system that surrounds an offering Product performance Offering Product system Service 7. Service how you service your customers 5. Product performance basic features, performance and functionality

Find Filter Business Unit Formed Graduate Eliminate Accelerate Ideas Incubate Initiate The Traditional Innovation Process

Where do we get ideas from? Where should we get ideas from? How will we capture these ideas? Ideas Find

The Old Innovation Paradigm - Innovation in-house by specialists -Ivory tower model -Proprietary -Sharing little -Painstakingly slow to market -Out of touch with reality and the customer -Hierarchical information flow -Weak R&D pipelines -Rising R&D costs -Emergence of global low-cost imitators -Poor track record of M&A “In the past, it seems that innovation was handled by the research folks, and it was a gigantic black box…This was a recipe for failure” McKinsey 2007 Innovation Report

What Works Better Than In-House Innovation? Source: IBM Global CEO Study 2006 Cultural change: 1.Empowered employees 2.Customer focus 3.Collaboration with external partners 4.A process for taking innovations to market

Innovation Is Occurring Everywhere Connecting For Innovation Global NationalRegional CustomersPartners Suppliers Intra-Organizational Enterprise Innovation Inter-Organizational Open Innovation Extra-Organizational Environmental Innovation Communities OfCreation InnovationNetworks Open MarketInnovation Crowdsourcing

Innovation requires an idea-to-execution processReality Innovation is about ideas, process, culture, action and executionReality Innovation is very often the result of collective intelligenceReality Several Innovation Myths Innovation is about good ideas Myth Innovation just happens Myth Innovation emanates from a lone genius Source: Cisco IBSG, 2008

Innovation Cycle: Underlying Drivers in Growth Markets Technology Adoption Strategies Techies: Just try it! Pragmatists: Stick with the herd! Conservatives: Stick with what’s proven! Skeptics: Just say No! Visionaries: Get ahead of the herd!

Collaborate To Innovate 5 Ways To Build A Culture Of Innovation

There are five unique qualities of innovation, and these are mapped to specific collaborative behaviors that support them.

Innovation is iterative

Supporting Behaviors Team members must truly hear one another’s perspectives to capture the innovative opportunities inherent in their collective ideas This requires team members to trust one another Be willing to be influenced by each other Sharing their ideas

Innovation can be creatively disruptive to team cohesion

Supporting Behaviors Teams who innovate must be able to disagree and then find ways to reconcile conflict in order for innovative ideas to surface and thrive Innovative teams are those that also tolerate temporary disharmony Also, exploring the non-perfect idea should be encouraged

Innovation can be unpredictable and inefficient.

Supporting Behaviors Team members must learn from and respond to important discoveries as they arise Facilitate the discovery process for the greatest balance between inclusion and business efficiencies, without over-controlling the outcome Build agreement from a variety of points of view in order to more forward

Innovation involves exploring and investigating

Supporting Behaviors Support a level of exploration and change, and tolerance of mistakes A team climate characterized by collaborative, mutually supportive relationships enables team members to explore and investigate to innovate People must feel EMPOWERED!!

Innovation is a group activity

Supporting Behaviors Share responsibility for the team’s process, climate and outcomes Asking for help, and being willing to accept it Build enough trust to be able and willing to relinquish ownership of ideas, while listening to ideas without cutting them down instantly