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2.1 The Business of Innovation - Coggle Diagram
2.1
The Business of Innovation
Complexities of Innovation
Ryoji Kimura (BCG)
Innovation is challenging but a top three priority in their organizations
Bernie Meyerson Interview (IBM CIO)
Business innovation must be alive
Innovation is vital because all competitors are doing it, not doing it will leave you behind
Innovation is important for sustained growth and the creation of competitive advantage
The pace of innovation provides an uncertain where Change is the only certainty
BCG Innovation Survey
GE Innovation Barometer
Timeline
2010: What is innovation? what industries drive innovation? and what drives innovation in general?
2012: The impact of the financial crisis and the global innovation environment
2013: Innovation at a company level? country policy? Big data
2014:The pace of innovation
2016: Innovation optimism, innovation at a company and country level, human capital and start-ups
Innovation Business Executive
Responsible for innovation related decision-making, NPD, R&D, innovation management and policy
Fear of being obsolete (FOBO) is an innovation motivator
Ways innovation is changing (IBM)
Consumers have become an integral part of the innovation process
Technology is the heart of innovation (66% of executives agrees)
Ecosystems are defining new types of innovations
Organizations discover new ways to partner to create and capture value
Successful Innovations Strategies
Effective and sustained innovation drives value creation and competitiveness
Successful organizations combine many innovation typologies such as product, operational and business model innovations
Align business objectives with innovation activities
Key categories that separate outperformers (IBM reports)
Organizational structure and functions that enhance innovation
Align innovation with business goals
Align innovation goals to expansion of products / services
Align innovation goals to industry expansion
Structure open forms of innovation
Create specialized teams and most likely an innovation department
Innovation focus and corporate culture
Clear focus on innovation as a core business value
Encourage innovation behaviors
Incentives
High tolerance of failure
Engage employees in innovation activities
Sustain innovation momentum
Clear processes to convert ideas into innovation
Different source of new ideas
Competitions and contests
Leverage big data and analytics
R&D Labs
Customer surveys
Separate
funding
source
Dedicated funding
Sufficient
Measure Innovation Outcomes
Measure ROI from innovations
Measure its impact on the market
Number of successful innovations p.a
Four Innovation Pitfalls to avoid (BCG)
All torque, No traction
Everyone is busy, but no clear roles
Initiatives are not linked
Mistake activity for progress
Stuck in the Lab
Wasting time and resources on mediocre initiatives
Abstraction not action
Too high level strategies
Autoimmune reaction
Initiatives and strategies threatens the status quo
BCG innovation approach
A successful approach must be
Biased towards action
Agile
strategy-led
Central Elements
Innovation Strategy
Focus on key trend that shape customers economics and demand
Prioritize the most attractive domains for innovation investment
Innovation Sprints
Decisive and quick action is required under the recent constant change in the markets
Business Builds and Scale-ups
Innovation Enablement
Define critical capabilities for innovation
Corporate venturing
Partnership
Aquisitions
Internal Development
Innovation Commercial Impact
Innovation positively influence financial performance
Market capitalization of BCG top 25 most innovative organizations increased by more than 130% between 2008 and 2014 (source: BCG)
Innovative organizations outperform their less innovative competitors
Since 2005 the top 50 in BCG's most innovative companies have delivered a significantly higher TSR than global market companies (Source:
https://www.bcg.com/capabilities/innovation-strategy-delivery/overview
)
Innovation Lessons from the most successful performers
Innovation Organization
Use scarce innovation resources wisely in the most aligned initiatives to organizational objectives
encourage collaborative open form of innovations yet establish governance to protect IP
Form innovation Dedicated Teams
Innovation Culture
Place innovation as a core business value
Prepare the suitable environment to enhance innovation
Speed and flexibility are important features of successful innovations
Innovation Process
Build ideation platforms and competencies
Secure an innovation funding stream
Use quantitative metrics to evaluate innovations