1. Developing Innovation Talent: New Designs for Career and Technical Education Programs by Bob Sheets Business and Industry Services University of Illinois at Urbana-Champaign May 2008

2. Presentation Overview American businesses will increasingly compete on innovation in the global economy--the key factor will be innovation talent American businesses will increasingly compete on innovation in the global economy--the key factor will be innovation talent Building innovation talent will require major changes in not only what and how we teach but how we organize and manage learning through public-private partnerships Building innovation talent will require major changes in not only what and how we teach but how we organize and manage learning through public-private partnerships Building innovation talent is best done through the performance and simulation of innovation work— focusing on problem-based, cross-functional projects throughout the P-20 pipeline Building innovation talent is best done through the performance and simulation of innovation work— focusing on problem-based, cross-functional projects throughout the P-20 pipeline This will require new designs for career and technical education and new thinking on how states implement career clusters. This will require new designs for career and technical education and new thinking on how states implement career clusters.

3. Global Business Environment Globalization and trade policies Globalization and trade policies Domestic and international deregulation Domestic and international deregulation Global flow of business investment Global flow of business investment Lower entry costs for business formation Lower entry costs for business formation New business (e.g., supply-chain management, sourcing) platforms New business (e.g., supply-chain management, sourcing) platforms New information technology platforms New information technology platforms Rapid science and technological advances Rapid science and technological advances Increased global business and state and regional transparency Increased global business and state and regional transparency

4. Defining Innovation Development and application of new ideas and ways of doing things that create social value Key Points: Not just about business and the private sector—applies to government, non-profit sector, and education as well Not just about business and the private sector—applies to government, non-profit sector, and education as well Not just about business entrepreneurship or science, technology, engineering and mathematics---applies to all disciplines and fields Not just about business entrepreneurship or science, technology, engineering and mathematics---applies to all disciplines and fields Not just about creativity and imagination—also about risk taking and value creation Not just about creativity and imagination—also about risk taking and value creation

5. Defining Business Innovation “ The development and implementation of new ideas and new ways of doing things (business models, products and services, markets, processes) to create customer value and drive business growth. It includes both incremental improvements and breakthrough developments. It is the interface between business entrepreneurship and science and technology discovery as well as other types of creativity and discovery beyond the physical sciences and engineering, including art and design and the social sciences. It requires the effective management of the natural tension between promoting creativity and discovery and capturing economic value for businesses and their partners.“ Source: Illinois Innovate Now Initiative

6. Innovation Movement First wave—process innovation focused on operational performance First wave—process innovation focused on operational performance  Improving core business processes  Improvement methods and tools Second wave---business model innovation focused on top-line growth Second wave---business model innovation focused on top-line growth  Balancing incremental and disruptive and game-changing innovation  Products/services and markets as well as business model innovation  Comprehensive and coordinated innovation across the business model

7. Defining Business Models “ A conceptual framework that describes how a company creates, delivers, and extracts value.”  Who do we serve (customer segments and geographies)?  What do we provide (products/services)?  How do we provide it (value chain)?  How do we make money (value creation, pricing and costs)?  How do we differentiate and sustain an advantage (differences, core competencies)? Source: Skarzynski and Gibson, Innovation to the Core, 2008)

8. Businesses Competing on Innovation Businesses will compete on doing it faster, cheaper, and better Businesses will compete on doing it faster, cheaper, and better Achieving world-class innovation capacity in core, specialized competencies and leveraging the broad innovation capabilities of a network or ecosystem Achieving world-class innovation capacity in core, specialized competencies and leveraging the broad innovation capabilities of a network or ecosystem Innovation occurs at the edges and intersections of functions, disciplines, and markets Innovation occurs at the edges and intersections of functions, disciplines, and markets Customer-centered and open and collaborative organizations within value network Customer-centered and open and collaborative organizations within value network Rewiring the organization to build the capacity for continuous innovation (Figure 1) Rewiring the organization to build the capacity for continuous innovation (Figure 1)

9. Figure 1: Transition to 21 st Century Workplaces From: To: Management Centralized Decentralized Functions Separated Shared Professional/Technical Centralized Decentralized Knowledge Specialized Integrated Some Workers All Workers Work Design Jobs Functional/ Cross-functional Teams Organizational Structure Vertical Customer-Supplier Hierarchies Networks Employee Job Task Work Unit Performance Responsibility Performance Business Process Management Career Progression Vertical Vertical and Horizontal Limited Range Full Range Source: Adapted from Schray and Sheets (2002)

10. Innovation Talent Customer Focus—understanding needs and what the customer is trying to get done Customer Focus—understanding needs and what the customer is trying to get done Business Entrepreneurship—thinking like a business in fast-paced, changing environment Business Entrepreneurship—thinking like a business in fast-paced, changing environment Innovation Mind-Set and Tools—driving incremental and disruptive change Innovation Mind-Set and Tools—driving incremental and disruptive change Both Specialized and Multidisciplinary and Cross- Functional Skills—innovation occurs at the edges and intersections of different fields and functions Both Specialized and Multidisciplinary and Cross- Functional Skills—innovation occurs at the edges and intersections of different fields and functions Collaboration Skills—working with customers and internal and external team members Collaboration Skills—working with customers and internal and external team members Global and Cross-Cultural Orientation---open to different cultures and diverse perspectives Global and Cross-Cultural Orientation---open to different cultures and diverse perspectives Information Technology Skills—new platform for for work and learning Information Technology Skills—new platform for for work and learning

11. Building Innovation Talent: Balancing Depth and Breadth Depth: Expert Role Performers Depth: Expert Role Performers  Beyond routine job performance  Strengthening academic/technical knowledge and skills Breadth: Career Entrepreneurs Breadth: Career Entrepreneurs  Business entrepreneurship  Business process management  Career and learning management

12. Building Innovation Talent: Maintaining the Line of Sight Business Entrepreneur—understanding the business model and how game-changing business model innovations and incremental and disruptive innovation in core business processes maintain sustainable competitive advantages Business Entrepreneur—understanding the business model and how game-changing business model innovations and incremental and disruptive innovation in core business processes maintain sustainable competitive advantages Business Process Manager—understanding how to manage continuous and rapid innovation in the most critical business processes Business Process Manager—understanding how to manage continuous and rapid innovation in the most critical business processes Team Leader---understanding how the work team can best drive and support innovation in the most critical business processes Team Leader---understanding how the work team can best drive and support innovation in the most critical business processes Expert Role Performer---understanding how you can best add value to the work team in ways that add value to the core business processes and the business as a whole Expert Role Performer---understanding how you can best add value to the work team in ways that add value to the core business processes and the business as a whole

13. Building Innovation Talent: The Future of Routine Work Businesses constantly fight commoditization and price competition Businesses constantly fight commoditization and price competition Workers must constantly drive and support innovation or face the future of routine work: Workers must constantly drive and support innovation or face the future of routine work:  Automation---growing capabilities of technology to perform routine work  Outsourcing—sourcing globally on price  Devaluation—wage competition among growing global workforce with rising general skill levels

14. Building Innovation Talent: Key Requirements Building innovation talent will require major changes in not only what and how we teach but how we organize and manage learning through public-private partnerships Building innovation talent will require major changes in not only what and how we teach but how we organize and manage learning through public-private partnerships Building innovation talent requires a focus on problem-based, cross-functional, and collaborative innovation projects that simulate innovation in the workplace throughout the P-20 workforce pipeline Building innovation talent requires a focus on problem-based, cross-functional, and collaborative innovation projects that simulate innovation in the workplace throughout the P-20 workforce pipeline This requires a new curriculum platform that allows the balancing between depth and breadth in talent development This requires a new curriculum platform that allows the balancing between depth and breadth in talent development

15. Platform for Organizing and Managing Talent Development Career Cluster curriculum frameworks provide a promising platform: Depth: Career Specialties Depth: Career Specialties  Connecting to degrees/certificates and industry certifications with market value Breadth: Foundations and Pathways Breadth: Foundations and Pathways  Foundations—career management, business entrepreneurship and management, new workplace basics, information technology skills, academic and technical knowledge and skills  Pathways—managing and improving business processes and more focused and integrated skill applications

16. Focusing Career Pathways on Critical Business Processes Critical to innovation capacity in businesses Critical to innovation capacity in businesses Managing and improving critical end-to-end business processes and functions Managing and improving critical end-to-end business processes and functions  Product realization  IT system life cycle  Logistics planning  Merchandise planning Must move to higher-level and broader applications (Figure 2) Must move to higher-level and broader applications (Figure 2)

17. Example Core Business Processes for Career Pathways Manufacturing Manufacturing  Product realization  Process improvement Transportation, Distribution, and Logistics Transportation, Distribution, and Logistics  Logistics planning Information Technology Information Technology  IT system development and management (life cycle) Finance Finance  Financial planning Marketing, Sales and Service Marketing, Sales and Service  Merchandise planning and management

18. Key Foundation Components Innovation Methods/ Tools Entrepreneurship STEM Foundations and Leading Technologies New Workplace Skills

19. Key Foundation Components Entrepreneurship—taking risks and creating and capturing value Entrepreneurship—taking risks and creating and capturing value  Understanding central role of business models in creating and capturing value  Managing business processes—Adding value to core business processes STEM Foundations and Leading Technology STEM Foundations and Leading Technology  Strong interdisciplinary foundations and related fields (e.g., design, social sciences)  Working knowledge of critical technologies within career cluster/pathway

20. Key Foundation Components Innovation Methods and Tools—Discipline of Innovation Innovation Methods and Tools—Discipline of Innovation  Innovation is not just creativity  Tension between generating new ideas and creating and capturing value better, cheaper and faster than others  Learning the general methods and tools of innovation (e.g., Lean Six Sigma) New Workplace Skills—Global Collaboration New Workplace Skills—Global Collaboration  New workplace basics (e.g., critical thinking)  Global and cross-cultural orientation  Customer and cross-functional team member collaboration  New mass collaboration platform skills

21. New Public and Private Roles Business and Industry Business and Industry  Develop and validate career cluster curriculum frameworks including core business processes  Identify innovation problems that are critical to future growth and competitiveness  Develop and manage problem-based learning projects that simulate critical innovation work and build breadth  Sponsor additional individual/small group project opportunities that help build specialty skill depth Education Education  Establish career cluster curriculum frameworks  Move problem-based learning projects to center of curriculum and play new role in student learning  Develop problem-based learning templates for engaging business and industry partners

22. How To Get Started Establish state/regional industry consortia with economic and workforce development partners in key career clusters (e.g., manufacturing, transportation and logistics) Establish state/regional industry consortia with economic and workforce development partners in key career clusters (e.g., manufacturing, transportation and logistics) Develop and validate core business processes with industry partners for each pathway in the selected career clusters Develop and validate core business processes with industry partners for each pathway in the selected career clusters Determine academic, workplace, and technical foundations including innovation skills and business process management tools—new foundations Determine academic, workplace, and technical foundations including innovation skills and business process management tools—new foundations Align/develop specialty programs off the business process platform Align/develop specialty programs off the business process platform Develop problem-based learning templates and examples that address innovation skills and business processes. Develop problem-based learning templates and examples that address innovation skills and business processes. Develop templates and examples at multiple levels—career exploration, career preparation and advanced preparation. Develop templates and examples at multiple levels—career exploration, career preparation and advanced preparation.

23. Example Problem-based Projects Manufacturing Manufacturing  Product realization--going green  Process improvement Transportation and Logistics Transportation and Logistics  Logistics planning Biotech/Healthcare Biotech/Healthcare  Healthcare program participation  Preventive care  Product/treatment development

24. Final Remarks: Innovating Education Where we are at now--sustaining innovations in: Where we are at now--sustaining innovations in:  Content--What we teach (e.g., leading technologies)  Methods--How we teach (e.g., problem-based learning)  Organization—How we organize education (e.g., cluster-based programs of study) Where we need to be—disruptive educational innovations to produce innovation talent better, cheaper and faster than anywhere else in the world Where we need to be—disruptive educational innovations to produce innovation talent better, cheaper and faster than anywhere else in the world

25. For More Information Bob Sheets Director of Research and Development Business and Industry Services University of Illinois at Urbana-Champaign 1100 E. Warrenville Rd. Naperville, IL 60563 rsheets@uiuc.edu 630-505-0500 x 229