issues in public sector innovation
DESCRIPTION
A talk that I gave for the Public Sector Innovation Network in Canberra at the Department of Innovation, Industry, Science and ResearchTRANSCRIPT
DAY:
SESSION:
PRESENTER:
Issues in Public Sector Innovation
19 January 2010DIISR
Tim Kastelle
Innovation – some definitions
• Creating something with economic value
• Putting a new idea into use
• Converting an idea into revenue
• Configuring an idea so that it can be replicated
Innovation is More than Just New Products
• “(Economic) development in our sense is then defined by the carrying out of new combinations”– J.A. Schumpeter
(1912) The Theory of Economic Development
Schumpeter’s Forms of Innovation
1. The introduction of a new good, or a new quality of good (or service)
2. Introduction of a new method of production
3. The opening of a new market
4. Developing a new source of supply
5. Changing the structure of an industry
The Business Model translates inputs into outputs
Source: Open Innovation by Henry Chesbrough
Why this…
… not this?
(photo: flickr/Martin Charbonneau Photographe
<1>
Ideas are cheap
(photo: flickr/ARKTINA)
(photo: flickr/johnkoetsier)
<2>
Invention is not Innovation
Invented: 1823Built: 1998Sold: Never
Invented: 1968Built: 1974Sold: 1981
Invented: 23 times before Edison!
So why do we say that Edison invented the light bulb?
<3>
Innovation is Evolutionary
(photo: flickr/johnkoetsier)
Variety
Selection
(photo: flickr/deVos)
Replication
Innovation is Evolutionary
• Invention is the creation of variety
• Innovation is a process that includes all three steps:– Variety: creating new ideas– Selection: choosing the best ones– Replication: getting them to spread
InnovationProblems
<1>
Our Problem is Getting Ideas
To Spread
The Innovation Value Chain
Actual Organisations
Idea Poor
Selection & Diffusion Poor
<2>
Poor Fit BetweenInnovation &
Strategy
Example Firm – Value Statement
• Success is built on our values of– Professionalism– Integrity– Respect– Innovation, and– Teamwork
Interview with Manager of Corporate Strategy
“So I want to get to a spot where the strategic plan is short and concise and pretty much future proof, it doesn’t necessarily change, we continually test it, but it’s there and provides that beacon towards the future and then we continue working towards delivering it. The process will be about testing it and the assumptions behind it and making sure it’s robust and we haven’t quite got there we’re just moving to that sort of space now.”
• Manager: Yes, so – but I must admit I haven’t been really close to the innovation stuff.
• John: I was wondering to what extent you could see innovation playing a role in delivering strategy. How would that work?
• Manager: Yes, but I haven’t thought through that.
• John: Okay.• Manager: No I haven’t thought through that,
so I think yes there is a – [us] saying we will be an innovative company, what is the... (starts mumbling – can’t be transcribed)
Summary of Interviews with12 top levelmanagers
<3>
Short-Term Focus
The three horizons: a portfolio approach to strategy
Balancing the 3 horizons
What is an InnovationCulture?
Shares a language
Generates ideas, not too
attached to them
Has good selection processes
Identifies best ideas quickly & cheaply
Learns from failures
Can get ideas
to spread
Links Innovationto Strategy
Develops anInnovationPortfolio
Thank you!
timkastelle.org/blog/