IT Enabling Innovation Across The Corporate Enterprise

How IT can Enable
Innovation across the
Corporate Enterprise

Author: Richard Platt
Former Intel Corporate Innovation Program Manager

Difference between Surviving
and Thriving
Evolutionary and Darwinian
– Survival of Fittest, Fastest and most Cunning

Change and the Rate of Change are the Evolutionary drivers
“Survivors” know how to consistently
find growth opportunities and deliver value
to their customers & stakeholders
“Non-survivors” compete on previous
business models that miss adding value in
increasing degrees
“Thrivers” beyond the above survivor
traits, adapt using tools and speed to
achieve gains

10/23/2007 AUTHOR: RICHARD PLATT | ALL RIGHTS RESERVED 2

Recent Comments from CIO’s
about IT and Innovation
“Technology innovations must be a
partnership between IT, marketing,
sales, product development and other
business stakeholders. To think that
meaningful tech innovation can thrive
within pockets of an IT organization is
naïve.”

-- Leigh Davis (electric utility Southern Co.)
-- Ben Holder (textile manufacturer Unifi Inc)
-- Jerry Johnson (Pacific Northwest National Laboratory)

www.informationweek.com reported in the CIO’s uncensored blog (8/2/2007)

Unmet Challenge:
Cooperative Hunting
Can IT become a “Profit Center”? YES
BMW Manufacturing story related to Author in 2000

IT Metrics are subordinate to the
BU’s goals for innovation
Insure what you deliver is what BU’s want
Map what your IT investments deliver in the
way of enabling what wasn’t present before
the tools, network, etc was in place.
Use BU metrics for innovation as a starting
point and derive the IT metrics from those.
(reduction in innovation cycle time)
Animals can do it why can’t humans
Cooperative hunting between Groupers and
Moray Eels
Humans and Orca’s hunting Baleen Whales in
New South Wales, Australia


Analogous Examples
Fraunhoffer Institute (Germany)
– Network of German Universities and Dept.
heads collaborating and using PhD students
to work on problems brought to the institute
for $.
Hired guns for technical problem solving
– Fraunhoffer is the current owner of MP3
technology and who Apple and others now
have to pay big $$$ for the IP
IBM (USA)
– Went from a semiconductor and main frame
manufacturer to provider of IP and consulting
services.
– Currently far more profitable with less capital
than before the change

KEY POINT: They Re-Evaluated their resources and began using
them in new ways to create new business models and revenue

How do you do this?
“Put your people on dangerous ground”
1. Use a Vision + Fear as a motivator the same
way as BMW senior management did with its
factories
2. Take Stock of ALL of your BU and operational
partners, including sales and marketing
3. Determine IT Core Competencies and your
resources
4. Now Find Key Innovation Elements that
are not being served by the current network,
tools, etc…these are OPPORTUNITIES
5. Team up and Pilot with 1-2 BU’s to address
their needs and to find revenue opportunities
for IT to get $$ into the enterprise
6. Refine and Reiterate across other BU’s,
expanding the capabilities. Show them that
you provide value.

Repeatable and Reliable
Innovation consists of…
Innovation Innovation
Management Risk Analysis

Multiple
& Mgmt
Innovation

Elements Infrastructure
Rapid
Innovation Prototyping /
Strategy New Prod.
Dev Skills
Innovation
Methods /
Tools
Innovation Innovation
Metrics Training

Innovation
Incentives


Requirements Driven Approach:
Management Tasks
Idea Management: development of organization-
specific methods for managing idea generation
processes.
Product Development Management: realization of
ideas in form of commercial products and technologies.
Environmental Innovation Management: constant
monitoring “scanning” of environment to forecast
future innovations and threats.
Enterprise-Wide "Outside-the-box" Innovation
Management: creation of organizational culture that
stimulates creative thinking
Innovation Life Cycle Management: coordinating
entire innovation life cycle from envisioning stage
through measuring results and rewarding individual
innovators or innovation workgroups


Key Elements for Innovation
Infrastructure
Senior Manager Strategic link
Involvement to corporate
and Support objectives

Customized Infrastructure
training for Innov. Manager & Supporting
all employees Support Team Innovation

Clearly defined Tools to provide
criteria / goals for efficient, effective
adoption decision making


Key Requirements for a
Supportive Innovation
Infrastructure
Supportive Tools and process for
Culture requires Evaluating concepts
training particularly (Rapid Prototyping)
for ALL levels of enterprise

Rewards and
Recognition
Align the Engineers Program
culture and Management Supporting areas of
Innovation

Measure Capture the key
performance learning’s
along the journey and share them


Minimizing Risk and
Shortening Life Cycles
Rapid proto-typing does a # of things:
Minimizes Risk of Uncertainty
Shortens Time-To-Sale, Time-To-Market, Innovation Life
Cycle and NPD Life Cycle
Provides ability to Rapidly Innovate concepts and do it
more frequently than competitors
Examples: Minimizing Risk of Uncertainty in Design:
“Fly Through” Tool (Boeing – 777 Program)
CAD tool checks form, fit and function of parts PRIOR to
manufacturing and assembly
Valor® DFM Tool (Intel – Complex Servers)
CAD tool for manufacturing designs assessing compatibility
with mfg constraints and Design For Mfg Rule adherence
Spreadsheets (Wall Street)
Spreadsheets enabled asking questions that firms were
unable to ask themselves before.

Importance of Rapid Prototyping
Virtual prototype models cost less than physical prototypes
and can be created in a fraction of the time
RULE: more prototypes and prototyping cycles / unit time =
more technically polished final product
“Quick and Dirty” proto-types turn clients into partners
Prototypes save $$ over the length of a project, CRITICAL tool
set to have widely used across an enterprise

VERY STRONG RECOMMENDATION:
“Serious Play: How The Worlds Best
Companies Simulate to Innovate”
by Michael Schrage
– Exceptional reference on the Value of Rapid
Prototyping and How to Manage it


IT: Enabling Partners
Knowledge overflow problem
Knowledge search problem
“Lost” knowledge problem
Miscommunication problem
“Invisibility” problem: where we
are, what was done, what should
be done with respect to a particular
task
Lack of Technology Intelligence
Lack of metrics to measure success
of innovation over the whole
innovation life-cycle
Source: “Skills and Tools to Support Productivity in Creative Work” by Valeri Souchkov presented at the Club of Amsterdam: Summit for the Future, January 26 – 28, 05

IT support for Innovation
External Enterprise IT infrastructure
Sources

Specialists
External
Knowledge Core Team
Core Team
Repository

Communication Experts
Experts
Internal Environment
Knowledge Decision Makers
Decision Makers
Repository Suppliers
Suppliers
Data & Knowledge
Bases Retailers
Retailers

Supporting Process Manager
Methods
& Tools
Situation Idea …
Mapping Management

Sustainable Innovation System
Working Environment
Vision & Culture
Strategy for Top Supporting
Innovation Management Innovation
TOC / Lean / 6 Ω Team Tech MRC + Site Innv.
Analysis + High ROI Leading Innovation WG + 1st & 2nd level
projects + manager support.
VP/GM, Finance, Factory Management &
Developing IP on Surveys and metrics
Champions + site level experts
Equipment, Tooling implemented
& Materials
People
Finance + Q&R + Adv & Basic Professionalized instructors w/ support infrastructure.
trained engineers + Legal Real problems in training + annual review
X-Functional Teams Empowered Employees
Mapping Innovation Path Driving Innovation
Processes, Practices, Tools, Methods & Systems

Biz processes that drive / enable innovation. Screening for advanced students, Budget set aside for
DOE’s & proto-types and for legal to submit more patents for a specific group

Conclusions: 2 Things for IT To Do
1. Support & Enable your BU’s
and Ops partners
– Combining knowledge and
process management solve
problems of knowledge overflow, as
well as external/internal
communications

2. Develop Profit Center focus
and mentality in IT

RECOMMENDATION: Build infrastructure architecture based on
requirements, inputs and feedback from actual users

BACKUP


Corporate Innovation System
5+1 Core Elements – “Innovation by Design”

Leadership &
Management

Strategic Organization
Metrics
Alignment & People

Process

CULTURE

Innovative Organization
Challenges
Innovation programs won’t
be successful, UNLESS Skill Development Community of
In Innovation Practice,
there is a strategy focusing Tools &
innovation activities Methods $ Shared
Processes
& BKM’s

Innovation
Infrastructure
Strategy, & Metrics

Read: “Can Corporate Innovation Champions
Survive?” http://pubs.acs.org/subscribe/journals/ci/31/i11/html/11hipple.html

KEY MESSAGE: Innovation Centers do NOT have a track record of
success in geographically dispersed groups

Infrastructure for Innovation
Management:
Corporate Innovation Manager

Core Innovation Team: Internal and External
Methods, techniques Knowledge Sources:
and tools for Databases, Science &
Innovation Technology companies
Systematic Innovation, Infrastructure
Consulting & Training Consulting companies,
Platform R&D centers,
Universities, etc.

IT Support for Life-Cycle Innovation
Management:
IT platform for knowledge gathering, storage
and exchange; communication, knowledge and
process management; decision making; bridge
to other infrastructure components


Application Areas
Map, analyze, decompose Solve a specific
and structure complex immediate problem
problem situations

Innovatively Solve business
optimize SYSTEMATIC & management
a technology/ INNOVATION conflicts
product

Generate new
Forecast future business concepts and
technology/product optimize existing
evolution business systems

IT Enabling Innovation Across The Corporate Enterprise

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