Framework for Supporting Innovation Strategy Implementation and Measurement Master’s Thesis Presentation, Author: Minh-Hai Nguyen Supervisor: Docent Timo O. Korhonen Instructor: Docent Marja Toivonen, MSc Juha Hulkkonen Case Organization: Local unit of Global IT Business Services Firm (Application Development&Management, Consultation and System Integration)

Contents Background Motivation Research Problem Research Approach and Methods Case Organization Results Conclusions

Background and Motivation Innovation is seen as the key strategic factor that enables success and competitive edge 95% of CEOs list innovation among their top 10 strategic priority Although companies pursue innovation, fewer company measures it based on the same study In case organization being innovative and prospector is highly valued and mentioned strategically, but.. There are no indicators on how the organization is performing from innovation perspective Measurement is seen as supportive guidance to implementing strategic plans Why isn’t innovation measured? Abstract and fuzzy concept… Lack of clear innovation measurement frameworks Number of studies for explicit innovation measurement models and frameworks in service organization is relatively small Most studies concentrate on clear R&D process (invention to be commercialized)

Research Questions Main Research Problem: How to measure implementation of strategy that pursues innovativeness and innovations in a service organization? Sub-questions: What is innovation and innovativeness in service organization and how are they managed? What are the factors that affect organization’s innovation activities? Research Output: Suggestion on Measurement Framework for Supporting Implementation of Innovation Focused Strategy

Research Framework

Research Method Theoretical Part Literature Review Definitions regarding innovation and innovation management State of the art of innovation performance measurements Empirical Part Case Study Observation of Local Unit of Global IT Business Services Firm (AD&M, C&SI) Survey conducted for the personnel of the case organization

Theoretical Framework Regarding Determinants Affecting Creativity and Innovation Organizational Determinants affecting creativity and innovation Source: Martins & Terblanche ()

Theoretical Framework Regarding Innovation Strategy Execution Strategy Execution Model Driving for Innovation

Results – Measuring Innovation Pulse Critical Areas Idea Implementation Support Risk Taking Mistake Handling Rewarding and Recognition Strategy Alignment

Results – How to foster innovation? Pay attention for creating environment where individuals can be creative Assure alignment with strategy and clear communicaton Encourage by providing right resources, motivate with right rewards and recognition Learn from mistakes Leadership commitment Communication and Networking Client intimacy Cross line innovating Innovative organizations can also be operative ones Structures and formalities support in larger organizations

Results – Measurements Proposed Lot of responses arguing the need for measuring innovativeness and innovation activities Proposed measurements linked to idea generation vs idea implementation Measurements need to be done for different levels In addition to input or output, the context and environment need to be measured

Conclusions Shift in business from products to services require different metrics for innovation, as the nature is more intangible Implementation of innovation focused strategy in services is difficult to be measured, for improving visibility, companies need to Define and frame what is innovation for them, align it with existing strategy, define goals and objectives Create portfolio and structures Create receptive and fertile ground for innovation and assuring involvement of management Measuring provides visibility and can help in management, but the basic building blocks need to done as well Organization needs to assure right conditions for innovating are provided and foster the culture

THANK YOU FOR YOUR TIME! Questions?