1. Innovation and change efforts are very high on senior executive's agenda yet most companies fail in their efforts
2. Building a capability to constantly adapt to changing circumstances through innovation leads to continuous transformation
3. The social web with its ability to engage people, facilitate idea creation and aid collaboration is a key catalyst
3. Likewise, change is a
critical success factor
and most companies
fail at managing
change successfully
http://www.flickr.com/photos/redvers/532076662/
4. Source: Gary Hamel, Aug 2009
Pace of Change
past century past decades today
Deming
McGregor
Source: Gary Hamel, Aug 2009
Inflection point
Sloan
for
much needed
boost?
Rate of
McCollum Taylor Innovation
1860 1890 1920 1950 1980 2010
http://www.flickr.com/photos/jurvetson/17095584/
5. With mostly failures,
something needs to
change :)
Change is the only
constant - constantly
changing is key
Constant innovation -
good way of coping
with change
http://www.flickr.com/photos/kiwinz/3386588455/
7. The key new catalyst: Social Web
Facilitating ideas and serendipity
Engaging people and encouraging participation
Collaborating and listening
8. Social
Wikis and
networking Blogs
tools collaborative
Mashups
profiling and visualization and data authoring /
connecting integration
storytelling
Prediction markets
forecasting and identifying risks
Hyperlinks, tags,
bookmarks, forms
folksonomies
Idea banks
ideation (idea
Peer-based generation)
project RSS and
management microblogging
Task Delivery signalling
9. Internal wikis and micro/blogs
“Live-Intranets”
Communication 1
Knowledge & information
exchange
Collaboration - activity
centered
Finding expertise
12. Innovation requires
experimenting and
prototyping
Innovation arises from
knowledge creation in
firm
Innovation on a regular
basis can prevent
inertia
Innovation relies on
recognition of
opportunities
Leonard-Barton, 1995; Nonaka & Takeuchi, 1995;
http://www.flickr.com/photos/arenamontanus/2849737658/
O'Connor & Rice, 2001; Tushman & O'Reilly, 1997
13. Idea source and success
factor
Trend following and mental
inventions
3 failures for every success
Congratulations!
Need spotting
You and your friend have
2 successes for every failure just come up with the next
multi million Pound
company!
Market research
4 successes for every failure
Solution spotting
7 successes for every failure
Taking advantage of random events
13 successes for every failure
Goldenberg, Lehmann and Mazursky, 2001
14. Serendipity
and social software
a heady mix...
http://www.flickr.com/photos/shanta/3031425568/
16. Engaging for Change
personally committed
reformers
Co-creation: adding value if included
in front end decision forming and
change/strategy
versus
hooligans or spectators
Telling the many what has been
decided by the few (instructional
with little sell)
Source: McKinsey 2005 http://infinityoneironaut.deviantart.com/art/People-I-met-139085271
17. http://www.flickr.com/photos/honan/3972478030/
Kotter’s change model with a social twist
Communicate early, frequently, directly - Bring more on board and empower to act
build urgency through immediacy
Short-term wins, share, build momentum
Source team by expertise and participation
Don’t stop with the short-term wins
Co-create vision, strategy
Create new culture - inculcate learning in new
Start without perfect plan, iterate fast way of work
18. The S Curve - Adoption
Internalisation
Commitment
Institutionalisation
Adoption
Trial Use
Understanding
Awareness
Contact Time http://www.seefloridago.com/Photos/Detail.aspx?pid=2664
19. The more > Corporate Interaction
The greater > Product Suitability
The greater > Product Evaluation
The greater > Corporate Evaluation
http://www.flickr.com/photos/consumerist/411352724/
Study carried out by Stephen Danelutti 1996
20. Use technology to
“listen”, understand,
quickly respond to
preferences
Integrate marketing
with design/
manufacturing -
involve customers
early in development
Customer becomes
“co-producer” and Corporate
loyal
Interaction
Study carried out by Stephen Danelutti 1996
21. Corporate Initiatives
ES
Product Ideas crowdsourcing
P&G Open Innovation Challenge
Ideas4Unilever
Dell IdeaStorm
PL
My Startbucks Idea
Branding & Design crowdsourcing
LEGO Factory
Peer Production
Peugeot
Muji
Electrolux Design Lab
Creative
M CrowdSpirit
Linux
Wikipedia
XA
Co-creation Public
Crowdsourcing
Spreadshirt
zazzle
iBridge Network
Quirky
Science Commons
Eureke medical
22. Intermediary Platforms
ES
Research & Development platforms
Innocentive
TekScout
Innoget
PL
Marketing & Design platforms
RedesignMe HR & Freelancers platforms
crowdSPRING TopCoder
LeadVine Spudaroo
M
Collective Intelligence &
Prediction platforms
HumanGrid
Open innovation software
Inkling Markets spigit
XA
Intrade Imaginatik
NewsFutures Fellowforce
Intermediary open innovation services
Big Idea Group
Idea Crossing
Pharmalicensing
Start at Home, step by step emphasise:
- They are platforms that grow - grass roots adoption is BEST start small think big
- Initial outlay cf large enterprise tools
- Simplicity for users
- Flexibility - you don’t need to know exactly what you want cf KM tools folksonomy va taxonomy
- Risk Reduction - start with departments, pilot programmes, grow rapidly.
- Risk Reduction honeycomb model - everyone’s jobs touch each other in some way - people understand the context under which they do their job and therefore makes people better at doing it.
Reduced risk in the supply chain - everyone understand the business better
Example
- Working together on a problem on a project
- Building expertise networks
- Knowledge sharing in informal forums Q@A
- Social networks - shared interested OTHER than their job expertise - motivation
Mention the IdeaStorm - the know this one.
- Transparency
- Engaging your customers in your business
- Give them better service
- Customer Loyalty and confidence
Straight to this is frightening for a culture that is not prepared and also very risky.
sources of new technological knowledge
play an important role in shaping innovation systems. Science-based technologies are increasing in importance. New products and services tend to embody a wider range of technologies, increasing the complexity faced by individual firms. UK-based firms make extensive use of customers and suppliers as knowledge sources. The UK Science, Engineering and Technology (SET) base is highly productive and the UK has world class design expertise. Relatively low levels of innovation spend mean that UK-based firms are less well placed to benefit from these or from comparable sources internationally;
the capacity to absorb and exploit knowledge
defines a firm’s ability to turn knowledge into new products, processes or services. Fundamentally it is people who create knowledge, manage businesses and innovate. Poor skills amongst managers and the workforce more generally have hindered performance. The culture within UK owned firms appears to place less emphasis on creativity. Few firms show evidence of systematic adoption of the human resource management practices typically associated with effective employee relations and a workplace culture supportive of innovation;
all investments in innovation need
access to finance
. Relatively lower levels of innovation spend are probably more due to a lack of incentives and capacity than a shortage of funds, although some financing gaps exist. A past history of macro-economic instability, weaknesses in skills and corporate strategies have all contributed to lower levels of spend;
competition
provides a stimulus to innovation and helps determine the intensity of competition and the ability of firms to spot opportunities and manage risks. Weak competition policies in the past have reduced incentives to innovate; and
entrepreneurship
rates are, at best, moderate;
customers and suppliers
put pressure on firms to deliver better quality goods and services and provide opportunities for innovation. Many UK-based firms compete in global markets and the UK is an attractive market for innovative firms from abroad. The public sector purchased £109 billion of goods and services in 2001-0212. There are major opportunities to make public sector procurement more effective in stimulating innovation while achieving spending objectives and value for money;
the regulatory environment
affects the possibilities and incentive structures for innovation. OECD comparisons show the UK to be relatively lightly regulated, although there are continuing business concerns about the impact of new regulations. Some firms appear to lack awareness of Intellectual Property Rights (IPR); and
networks and collaboration
are important means of accessing knowledge. Businesses are increasingly looking outside their sectors for opportunities to collaborate. UK-based firms appear to have many, varied network relationships, but the infrastructure is patchy and relationships appear to be largely driven by short-term decisions.