The thin line between success and failure within innovation

1. The thin line between success and failure within innovation Koen Klokgieters Business Innovation Officer Capgemini CS TU Delft, 19 November 2007

3. There are a countless number of articles which handle all sorts of success and failure factors Bron: HBR, Innovation the classic traps, R. Moss Kanter (2006) Executives say innovation is a top priority for driving growth but getting it right is hard as ever . They flaw in how their companies manage and govern innovation. (2007 McKinsey survey on innovation ) A lack of methodologies, a systematic approach and a low innovation presence might be what are keeping corporations from fully capitalizing on their innovative capabilities (Capgemini, 2006) A risk-averse corporate culture, lengthy product-development times, and a lack of internal coordination are the three biggest stumbling blocks facing companies seeking to improve their return on innovation (BCG, 2007)

8. It is not only a matter of people but also about management, processes and tools … Source: Morten T. Hansen and Julian Birkinshaw, HBR, June 2007 DIFFUSION CONVERSION IDEA GENERATION SPREAD D issemination across the organization Do people in our unit create good ideas on their own? Do we create good ideas by working across the company? Do we source enough good ideas from outside the firm? Are we good at screening and funding new ideas? Are we good at diffusing developed ideas across the company? Are we good at turning ideas into viable products, businesses, and best practices? Number of high-quality ideas generated within a unit. Number of high-quality ideas generated across units. Number of high-quality ideas generated from outside the firm. Percentage of all ideas generated that end up being selected and funded. Percentage of penetration in desired markets, channels, cust. groups; number of months to full diffusion. Percentage of funded ideas that lead to revenues; number of months to first sale. KEY PERFORMANCE INDICATORS KEY QUESTIONS SELECTION Screening and initial funding DEVELOPMENT Movement from idea to first result The Innovation Value Chain: An Integrated Flow IN-HOUSE Creation within a unit CROSS- POLLINATION EXTERNAL Collaboration with parties outside the firm Collaboration across units

9. Success requires a marked departure from traditional principles … Idea generation New Approach The Innovation Value Chain Conversion In-House Cross-Pollination External Selection Spread Development Diffusion Traditional Prime Source of Ideas is the R&D Department Limited, through formal Channels Partner to Create Proprietary IPR Financing Dependant on Organization Priorities Linear process Disjoint Ownership Across Teams Limited to market segments or delivery platforms Ideas can Emerge Anywhere in the Organization Adequate, through Web 2.0 tools Collaborate to Evolve Common Standards Consumer Involvement Financing Based on Merit of the Idea Iterative process End-to-end Ownership with Single Team Rapid diffusion across markets and platforms Source: Capgemini C4 Lab analysis. Harvard Business Review, “The Innovation Value Chain”, 2007

10. Some established companies give early examples of radical innovation practices Early Adopters of New Approaches to Innovation Players ?? Initiatives Source: Capgemini C4 Lab analysis. Harvard Business Review, “The Innovation Value Chain”, 2007. Company Websites. Idea generation Conversion In-House Cross-Pollination External Selection Spread Development Diffusion Allows Employees to spent 15% time on own projects Internal Explorers, Incubators and Partners work with business engineers Developed Innocentive, an online IPR Trading Forum Launched “Game Changer” for Financing Employee Ideas Over 80% of employee ideas implemented Free Minitel Terminals Revenue share with application providers

11. How does Capgemini work with innovation: we integrate our sustainable innovation capabilities and offers a full service package … Concept & Solution Creation Program Design Program Execution Innovation Strategy Eco System Innovation Radar Screen Blue Ocean Strategy Workshop New Business Concept creation TechnoVision Innovation Research Program Rapid Innovation (RAIN) Accelerated Business Innovation Innovation Program Management Systematic Innovation (TRIZ) Technology Enabled Innovation (BIS) Customer Centric Innovation Global Industry Trends Innovation Service Chain Capgemini Global Client Business Network

12. There are four key problems for realizing innovation when your innovation management growth process finds itself at the co-creation stage or up. Motivation Free-riding Efficiency Boundary- crossing How to motivate partners to share Knowledge? How to ensure the right knowledge ends up with the right partner quickly? How to overcome cultural, time, knowledge gaps? How to prevent companies learning but not sharing? Source: A.P. de Man, adapted from Dyer and Nobeoka

13. The ‘Innovation Platform’, a practical approach to bring the right people together and to improve the innovation capability within an organization and with outside stakeholders … Preparation & mobilisation “ MyInnovation” “ Networking” Event Phase 2 Phase 1 Phase 3 Phase 4 Mobilisation meeting Scan Focus Act Digital portal Innovation room “ Execution power” Event Event innovation day innovation day innovation day

15. www.capgemini.com /consulting Koen Klokgieters/ Capgemini / Utrecht BUSINESS INNOVATION OFFICER Consulting Services http://koenklokgieters-english.blogspot.com/ http://koenklokgieters.blogspot.com/ T: +31 30 689 7312 | M: +31 6 51123259 [email_address] www.capgemini.com Papendorpseweg 100, Postbus 2575, 3500 GN UTRECHT