ibm iforum 2007 - joint innovation with clients by tony morgan
DESCRIPTION
Slide deck courtesy from Tony Morgan on recent IBM's iForum event in Zurich about "Capitalising on Innovation".TRANSCRIPT
Joint Innovation with ClientsNovember 2007
Tony Morgan - IBMSenior IT Architect
1Tuesday, December 4, 2007
2
Agenda
Innovation and Collaboration
IBM’s Approach to Innovation
Joint Innovation Partnership/Value Creation Centre
Factors for Success
2Tuesday, December 4, 2007
3
Innovation – One Definition is… The use of new ideas or current
thinking applied in fundamentally different ways that result in significant change
Covering a broad scope including:
– Products, Services, and Markets
– Business Models
– Operations
3Tuesday, December 4, 2007
4
The Global CEO Study 2006: InnovationInterviewed 765 CEO’s - across the globe, 5 sectors, 21 industries, large and SMB enterprises
4Tuesday, December 4, 2007
4
The Global CEO Study 2006: Innovation
Interviewed 765 CEO’s - across the globe, 5 sectors, 21 industries, large and SMB enterprises
65%13%
22%
A lot
Moderate
Little or no
CEOs: Extent of fundamentalchange needed over next two years
4Tuesday, December 4, 2007
4
The Global CEO Study 2006: Innovation
CEOs are looking to use Innovation to
drive fundamental change to enable sustainable growth
Interviewed 765 CEO’s - across the globe, 5 sectors, 21 industries, large and SMB enterprises
65%13%
22%
A lot
Moderate
Little or no
CEOs: Extent of fundamentalchange needed over next two years
4Tuesday, December 4, 2007
4
The Global CEO Study 2006: Innovation
CEOs are looking to use Innovation to
drive fundamental change to enable sustainable growth
Business model innovation is now nearly as important as more traditional innovation around products/services
Interviewed 765 CEO’s - across the globe, 5 sectors, 21 industries, large and SMB enterprises
65%13%
22%
A lot
Moderate
Little or no
CEOs: Extent of fundamentalchange needed over next two years
4Tuesday, December 4, 2007
4
The Global CEO Study 2006: Innovation
CEOs are looking to use Innovation to
drive fundamental change to enable sustainable growth
Business model innovation is now nearly as important as more traditional innovation around products/services
CEOs believe that integrating business insight and technology capabilities enables the organization to “stay ahead of the curve”
Interviewed 765 CEO’s - across the globe, 5 sectors, 21 industries, large and SMB enterprises
65%13%
22%
A lot
Moderate
Little or no
CEOs: Extent of fundamentalchange needed over next two years
4Tuesday, December 4, 2007
4
The Global CEO Study 2006: Innovation
CEOs are looking to use Innovation to
drive fundamental change to enable sustainable growth
Business model innovation is now nearly as important as more traditional innovation around products/services
CEOs believe that integrating business insight and technology capabilities enables the organization to “stay ahead of the curve”
CEOs agree that internal and external collaboration is key to innovation, but many are slow to actually practice it
Interviewed 765 CEO’s - across the globe, 5 sectors, 21 industries, large and SMB enterprises
65%13%
22%
A lot
Moderate
Little or no
CEOs: Extent of fundamentalchange needed over next two years
4Tuesday, December 4, 2007
5
Sources of New Ideas and Innovation
IBM Institute for Business Value, CEO Study 2006
Academia
Associations
Business partners
Competitors
Think-tanks
Consultants
Customers directly
Employees
Labs and/or other institutions
Internal R&D
Internal Sales & Service Units
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
5Tuesday, December 4, 2007Interestingly…What we found was more and more CEOs looking outside the organization for fresh ideas and innovation
Look at this…external sources mentioned twice as often as internal sources
Look at this…R&D mentioned by just over 15% …. a few years ago this would not have been the case
There’s a real shift underway to collaborative innovation…
5
Sources of New Ideas and Innovation
IBM Institute for Business Value, CEO Study 2006
Academia
Associations
Business partners
Competitors
Think-tanks
Consultants
Customers directly
Employees
Labs and/or other institutions
Internal R&D
Internal Sales & Service Units
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
McKinsey Innovation SurveyOctober 2007
5Tuesday, December 4, 2007Interestingly…What we found was more and more CEOs looking outside the organization for fresh ideas and innovation
Look at this…external sources mentioned twice as often as internal sources
Look at this…R&D mentioned by just over 15% …. a few years ago this would not have been the case
There’s a real shift underway to collaborative innovation…
6
Mechanisms for Innovation
IBM CEO Study2006
6Tuesday, December 4, 2007
6
Mechanisms for Innovation
McKinsey Innovation SurveyOctober 2007
IBM CEO Study2006
6Tuesday, December 4, 2007
7
Delivering on Innovation Opportunities
McKinsey Innovation SurveyOctober 2007
7Tuesday, December 4, 2007
8
Agenda
Innovation and Collaboration
IBM’s Approach to Innovation
Joint Innovation Partnership/Value Creation Centre
Factors for Success
8Tuesday, December 4, 2007
9
IBM’s Approach to Innovation
Challenge /Opportunity Idea Generation Incubation Validation Value realized
Alpha Works –LOB with developer
community
9Tuesday, December 4, 2007
9
IBM’s Approach to Innovation
Challenge /Opportunity Idea Generation Incubation Validation Value realized
Alpha Works –LOB with developer
community
Strong governanceis crucial
9Tuesday, December 4, 2007
9
IBM’s Approach to Innovation
Challenge /Opportunity Idea Generation Incubation Validation Value realized
Research, Corporate
IBM Lines of Business
GTO / GIO /IBVClient (and IBM) Challenges
Alpha Works –LOB with developer
community
IBM innovation programs
Strong governanceis crucial
9Tuesday, December 4, 2007
9
IBM’s Approach to Innovation
Challenge /Opportunity Idea Generation Incubation Validation Value realized
Research, Corporate
IBM Lines of Business
GTO / GIO /IBVClient (and IBM) Challenges
InnovationJam
ThinkPlace
Communities of Practice
Alpha Works –LOB with developer
community
IBM innovation programs
Strong governanceis crucial
9Tuesday, December 4, 2007
9
IBM’s Approach to Innovation
Challenge /Opportunity Idea Generation Incubation Validation Value realized
Research, Corporate
IBM Lines of Business
GTO / GIO /IBVClient (and IBM) Challenges
InnovationJam
ThinkPlace
Communities of Practice
Extreme Blue
Biz Tech
Emerging Business
Opportunities
Alpha Works –LOB with developer
community
IBM innovation programs
Strong governanceis crucial
9Tuesday, December 4, 2007
9
IBM’s Approach to Innovation
Challenge /Opportunity Idea Generation Incubation Validation Value realized
Research, Corporate
IBM Lines of Business
GTO / GIO /IBVClient (and IBM) Challenges
InnovationJam
ThinkPlace
Communities of Practice
Extreme Blue
Biz Tech
Emerging Business
Opportunities
TAP
Alpha Works –LOB with developer
community
IBM innovation programs
First of a Kind
Strong governanceis crucial
9Tuesday, December 4, 2007
9
IBM’s Approach to Innovation
Challenge /Opportunity Idea Generation Incubation Validation Value realized
Research, Corporate
IBM Lines of Business
GTO / GIO /IBVClient (and IBM) Challenges
InnovationJam
ThinkPlace
Communities of Practice
Extreme Blue
Biz Tech
Emerging Business
Opportunities
TAP
Alpha Works –LOB with developer
community
IBM Internal
IBM Offerings
Partners
Clients
IBM innovation programs
First of a Kind
Strong governanceis crucial
9Tuesday, December 4, 2007
9
IBM’s Approach to Innovation
Challenge /Opportunity Idea Generation Incubation Validation Value realized
Research, Corporate
IBM Lines of Business
GTO / GIO /IBVClient (and IBM) Challenges
ClientChallenges
InnovationJam
ThinkPlace
Communities of Practice
Extreme Blue
Biz Tech
Emerging Business
Opportunities
TAP
Alpha Works –LOB with developer
community
IBM Internal
IBM Offerings
Partners
Clients
Clients
IBM innovation programs
Joint Innovation Partnerships
First of a Kind
Strong governanceis crucial
9Tuesday, December 4, 2007
10
Agenda
Innovation and Collaboration
IBM’s Approach to Innovation
Joint Innovation Partnership/Value Creation Centre
Factors for Success
10Tuesday, December 4, 2007
11
Through the VCC, IBM can share the technology vision, knowledge, best
practices, and solutions gained from IBM’s research, development and worldwide customer experience
VCC works withthe Client to conduct research and shape
propositions
A B C D
Value Creation Centre
IBM ResearchCentres
IBM Industryand technology
expertise
IBM Leader: XXXXXClient Leader: XXXXX
Client Business / CIO Teams
Client Strategy & Global / Regional Teams
Other IBMInnovationSources
A business-led governance process sets Strategic Direction &Priorities
Joint Innovation PartnershipClient and IBM Value
Creation Centre
11Tuesday, December 4, 2007Interestingly…What we found was more and more CEOs looking outside the organization for fresh ideas and innovation
Look at this…external sources mentioned twice as often as internal sources
Look at this…R&D mentioned by just over 15% …. a few years ago this would not have been the case
There’s a real shift underway to collaborative innovation…
12
Building a Joint Innovation Partnership
Mission Scope People Process Tools Support and Governance
12Tuesday, December 4, 2007
13
Building an Innovation Partnership 1/4 Mission
– Create a set of objectives along with measurable success criteria for the innovation partnership
– Review these on a regular basis
Scope– Define scope - areas of the business and technology functions that
the innovation partnership should focus on– On occasion there may be a reason to go beyond this scope or to
handover an identified idea to a function in another part of the business
13Tuesday, December 4, 2007
14
Building an Innovation Partnership 2/4 People
– Dedicate core resource and leadership – with clearly set objectives
– Ensure the right skills – not just gadget people!– Assign virtual resources per project– Ensure the right resources – IBM, IT, business units
Process– Use a “process” to identify and evaluate ideas (and collaborate on
if possible)– Use a “process” to develop ideas into real initiatives and projects
14Tuesday, December 4, 2007
15
Building an Innovation Partnership 3/4 Tools
– Formal or informal tools– At the minimum a tool for rating ideas against business objectives
and priorities and a tool for running, tracking and reporting on the overall Innovation portfolio
– Formal tools can be used – alternatively informal tools such as spreadsheets and project management tools may be an option
15Tuesday, December 4, 2007
16
Building an Innovation Partnership 4/4 Support and Governance
– Exec level sponsorship – IBM and client– Strong focussed Steering Committee – IBM and client– Hook the innovation system into the wider organisation– Potential role of Innovation Catalysts– Clear funding model – core budget, process to get project specific
funding
16Tuesday, December 4, 2007
17
Innovation Process, What Process?
17Tuesday, December 4, 2007
17
Innovation Process, What Process? “Innovation process” – isn’t that an oxymoron?
Example oxymorons – – “new improved”– “numbing sensation”– “partial silence”
17Tuesday, December 4, 2007
18
Running the Innovation Process Generating and identifying ideas
Evaluating ideas
Developing innovation initiatives
Reporting the Innovation portfolio
18Tuesday, December 4, 2007
19
Generating and Identifying Ideas How are you are going to generate and identify ideas?
– Initial ideas set by Steering Committee?– Ideas input formally or informally from internal employees,
business partners, customers, R&D department etc?– Both?
IBM Institute for Business Value, CEO Study 2006
Academia
Associations
Business partners
Competitors
Think-tanks
ConsultantsCustomers directly
Employees
Labs and/or other institutions
Internal R&DInternal Sales & Service Units
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
19Tuesday, December 4, 2007
20
Evaluating Ideas Once you have an idea how it will be evaluated?
– Set criteria and a scoring mechanism – Sometimes temper with a level of pragmatism and experience!
20Tuesday, December 4, 2007
21
Innovation Initiative Process Once you have accepted an idea, what process will you follow? The VCC follows a structured gated innovation process
Discussions Initiatives Ideas Delivery Themes
21Tuesday, December 4, 2007
21
Innovation Initiative Process Once you have accepted an idea, what process will you follow? The VCC follows a structured gated innovation process
Discussions Initiatives Ideas Delivery Themes
Example Project Walkthrough
21Tuesday, December 4, 2007
22
Innovation Portfolio Reporting – Example ViewInnovation Portfolio Reporting
22Tuesday, December 4, 2007
23
The Importance of Governance Strong governance means strong support and commitment for
the Innovation partnership and the innovation agenda
23Tuesday, December 4, 2007
24
Steering Committee A strong joint executive level Steering Committee is key to
delivering a strong innovation partnership
The role of the Steering Committee, like the role of the Innovation Team, should be clearly defined
Example responsibilities include:– Review Innovation Team progress– Review Innovation Team requests and priorities– Confirm selection of current Innovation Team activities– Review Innovation Team Governance – making Exec level
decisions where required e.g. on funding priorities– Set strategic directions and focus for coming period
24Tuesday, December 4, 2007
25
Steering Committee Membership The Steering Committee membership should include executive
management from both organisations covering the main scope areas of the innovation partnership, including an overall chair, plus empowered reps from related organisations, e.g. Strategy and Architecture teams
The Steering Committee should sit quarterly at a minimum and perhaps more often, especially in early days
25Tuesday, December 4, 2007
26
Agenda
Innovation and Collaboration
IBM’s Approach to Innovation
Joint Innovation Partnership/Value Creation Centre
Factors for Success
26Tuesday, December 4, 2007
27
Factors for Success
27Tuesday, December 4, 2007
27
Factors for Success Work as a Joint IBM / Client Team
– Effective / Staffed Core Team– Appropriate IBM, IT & Business Unit Involvement for each initiative– Working with the Strategy & Architecture Teams
Select the right ideas– Strategic for client and IBM – Valuable from a client business perspective– Balanced portfolio – quick wins as well as longer term strategic projects
27Tuesday, December 4, 2007
27
Factors for Success Work as a Joint IBM / Client Team
– Effective / Staffed Core Team– Appropriate IBM, IT & Business Unit Involvement for each initiative– Working with the Strategy & Architecture Teams
Select the right ideas– Strategic for client and IBM – Valuable from a client business perspective– Balanced portfolio – quick wins as well as longer term strategic projects
Governance and Sponsorship– Effective overall joint governance and decision making – Clear business unit sponsorship for the specific initiatives to be progressed– A clear agreed funding model
Effective Communication within Client and IBM
27Tuesday, December 4, 2007
28
Summary
28Tuesday, December 4, 2007
28
Summary
28Tuesday, December 4, 2007
28
Summary A Value Creation Centre will provide
28Tuesday, December 4, 2007
28
Summary A Value Creation Centre will provide
– A proven structured mechanism for driving innovation with an assigned IBM owner who will manage the process
28Tuesday, December 4, 2007
28
Summary A Value Creation Centre will provide
– A proven structured mechanism for driving innovation with an assigned IBM owner who will manage the process
– Ongoing improvement over time - lessons learned and knowledge shared - e.g. 2007 IBM Academy of Technology Study, IBM Global Innovation Community, the iForum event
28Tuesday, December 4, 2007
28
Summary A Value Creation Centre will provide
– A proven structured mechanism for driving innovation with an assigned IBM owner who will manage the process
– Ongoing improvement over time - lessons learned and knowledge shared - e.g. 2007 IBM Academy of Technology Study, IBM Global Innovation Community, the iForum event
– Access to a wide range of IBM resources and capabilities
28Tuesday, December 4, 2007
28
Summary A Value Creation Centre will provide
– A proven structured mechanism for driving innovation with an assigned IBM owner who will manage the process
– Ongoing improvement over time - lessons learned and knowledge shared - e.g. 2007 IBM Academy of Technology Study, IBM Global Innovation Community, the iForum event
– Access to a wide range of IBM resources and capabilities– IBM focus on a set of jointly agreed innovation initiatives that will
add value to the client’s business
28Tuesday, December 4, 2007