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Measured and Managed Innovation – MMI

A Nordic Innovation Centre Programme

Nordic National MMI Workshops November 2010

Jørn Bang Andersen, Senior Innovation Advisor,

Nordic Innovation Centre

1

Iceland 12 Nov., Norway 15 Nov., Denmark 17 Nov. and

Finland 29 Nov 2010

The Agenda

If it ain’t broken why do we need a new model

for innovation?

Measured and Managed Innovation

New tools, differentiation and change of

mindset

© Jørn Bang Andersen 20102

“If it ain’t broken, why do we need a

new model for Innovation”?

© Jørn Bang Andersen 20103

“No Battle Plan Survives Contact With the Enemy”

General Colin Powell

Charles Joseph Minard: Mapping Napoleon’s March, 1861

© Jørn Bang Andersen 20104

…. And Few Innovation Plans Survive Contact

With Market Realities

© Jørn Bang Andersen 2010

The global innovation success

average, across all geographies and

all industries…

Imagine… what if we could

reach…40%

4%

in the Nordic region

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“…US today is more than 75%

wealthier than 30 years ago,

primarily due to productivity

gains driven by innovation.

“However, until now, few steps

have been in place to allow the

US to measure and

understand innovation.”

US Department of Commerce, 2008

© Jørn Bang Andersen 20106

“Every CEO will at least give lip service to the

idea that the world is moving faster and that we

need to do a better job at innovation.

But if you go into an organization and ask

people to describe their innovation system,

you get blank looks...

They have none...”

Gary Hamel

Harvard University7

© Jørn Bang Andersen 20108

Change of Mindset

Differentiation

New Tool

+

= Successful Innovation

Measured and Managed Innovation

© Jørn Bang Andersen 2010

+

9

The Results

New Business

Models

New Value Creation

More

Competitive

New Tools Differentiate Changed Mindset

New Markets Growth Profit

More

Innovative

© Jørn Bang Andersen 201010

New Tool

© Jørn Bang Andersen 201011

Innovation Radar v. 2.0

Value Capture

Customer

Experience

Solution

PlatformEcosystem

Management

Offering (What)

Process(How)

Channel

Communication

Customers

(WHO)

Customer

Needs(Who)

Supply

Chain(Where)

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Value Capture

Customer

Experience

Solution

PlatformEcosystem

Supply Chain

Management

Offering

Process

Channel

Customer Need

Communication

Innovation Radar 2.0 - Examples

13

All Rights Reserved, Robert C. Wolcott, 2003 - 2007

1

2

3

4

5

6

7

Offerings

Platform

Solutions

Customers

Customer Experience

Value Capture

Process

Organization

Supply Chain

Presence

Networking

Brand

Food Products Firms’ Radar Profiles

Firm: A

0

1

2

3

4

5

6

7

Offerings

Platform

Solutions

Customers

Customer Experience

Value Capture

Process

Organization

Supply Chain

Presence

Networking

Brand

Firm: B

All Rights Reserved, Robert C. Wolcott, 2003 - 2007

Divergent Opinions

Firm: A

0

1

2

3

4

5

6

7

Offerings

Platform

Solutions

Customers

Customer Experience

Value Capture

Process

Organization

Supply Chain

Presence

Networking

Brand

1

2

3

4

5

6

7

Offerings

Platform

Solutions

Customers

Customer Experience

Value Capture

Process

Organization

Supply Chain

Presence

Networking

Brand

Firm: B

All Rights Reserved, Robert C. Wolcott, 2003 - 2007

Divergence of Opinion

l Substantial disagreements exists, though the strength areas are mostly agree upon

l The areas that have the most measured disagreement are Process, Supply Chain, Channel, and Ecosystem

l A discussion regarding the areas with most diver-gence could be fruitful

l Select 2 - 5 dimensions to get a clear focus in your innovation efforts

l Look for dimensions that differentiate your company from its competitors: Dimensions of Differentiation & Dimensions of Parity

l Coordinate all internal functionsand external partners to innovatearound these differentiating dimensions of your business system

Tying Innovation to Corporate

Strategy

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APPLICATIONS OF THE INNOVATION RADAR

l Detailed strategic understanding:

Explore dimensions of innovation in a strategic, systematic & holistic manner

l Diagnosis:

Identify your company’s current innovation efforts and strategy

l Benchmarking:

Benchmark your company’s innovation efforts within & across industries, and take look into the future for each dimension

l Ongoing alignment of strategy:

Track and adjust your company’s complete business system & strategy

l Management across portfolio of projects/ventures:

Enable a holistic view across your company’s innovation projects

18

Differentiate and Change Tracks

© Jørn Bang Andersen 201019

Three Ways to Look at it…

1. The same as the industry– but a lot better.

2. Turn a dimension on its head.

3. Look across other industries for new solutions.

20

The Same as the Industry

© Jørn Bang Andersen 201021

22

…but a lot Better…

Turn a Dimension on its Head

Rackspace Hosting

Fanatical Support®

Premium price 10%

plus…

Ten years and industry

leader

© Jørn Bang Andersen 201023

Look Across Industries for New Solutions

Tetette

© Jørn Bang Andersen 2010

Toyota

Ford

Fischer

Ski

Nike

Textiles

Slaugther house

Violin builder

Formula 1

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And Three Attributes to Compete on…

Functionality

Price Experience

© Jørn Bang Andersen 2010

Partnership/Management?

25

© Jørn Bang Andersen 2010

Mindset: Present and Future

26

© Jørn Bang Andersen 2010

Settlers versus Pioneers

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What business are we in?

Who is our customer?

What solutions do we provide?

How do we what we do?

What is our

business?

Who is the

customer?

What does the

customer buy?

What is the

value to the

customer?

Business Model

Innovation to

the CoreWhat will our

business be?

Are we in the

right business?

© Jørn Bang Andersen 201028

Plus a Few Simple Steps…

• Visualize and brainstorm

• Differentiate on maximum 3-5 dimensions

• Prototype small scale and develop

• Communicate and align

• Review

© Jørn Bang Andersen 201029

1. Profile- Current State- Competition- Diverse Perspectives

4. Track- Progress- Performance

3. Enable- Communicate- Educate- Empower

2. Envision- Strategic Dimensions- Desired Future State

Sum up the Innovation Radar Applied…

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Быстро = bystro (quickly)

Changed mindset – Russian

Cossack soldiers

Differentiate – quick cooking

New business – Bistro concept

End Note: From Failure to Success

Thus the French Bistro was borne.© Jørn Bang Andersen 2010

31

Many thanks

Jørn Bang Andersen

Nordic Innovation Centre

j.andersen@nordicinnovation.net

Mobile +47 975 40 408