leading to innovation
TRANSCRIPT
Leading To Creativity & Innovation
Innovation : Facts• Innovation is something new, something original out of
the existing resources. It may span over : product, process, services, business model, delivery model or thought process or organisational structure.
• Innovation is the specific instrument of entrepreneurship…The act that endows resources with new capacity to create wealth…..Peter Drucker. In fact both must go together for success.
• Innovation entails risk taking, pro-activeness & autonomy. Innovation needs domain knowledge. It is systematic, organized and a rational work requiring passion.
• Innovation needs out-of-the-box-thinking & is aimed at meeting challenges.
• Creativity is bedrock of Innovation
Ingredients : Individual Creativity…….• Creativity requires both sides of the brain,
passion, patience and optimism
Doing• Questioning
• Observing
• Experimenting
• Networking
Thinking• Associating
Example : Adhesive Tapes by 3M
Innovation : Various Aspects
Types•Incremental : Automobiles : Emission Standards
•Disruptive : PC•Architectural: iPhone, Auto
Impact•Technological: Automation
•Economic:Mobile Banking
•Social : Education, Healthcare, Communications : Scalability at Lower cost
Segment
•Generic : PC, Phone•Customised:Blackberry, Mercedes Benz
•MLM(More at Less for More) : Mobile Phone
Innovation Concepts
Paradigms• Closed / Strategic :
Military, R&D• Open : All from Open
Sources• Reverse : ECG MAC 400 • Crowd-sourcing / Web-
sourcing : Open Feed- back, Competition
• Co-Creation : Engagement with all Stakeholders
Innovation Concepts
Approaches• Top-Down : Directed by the leadership : Attitudes, expectations, policies, strategies : Apple, Google
• Bottom-Up : Emanating from the individual employees : Ideas, Experimentation from Employees : Toyota, Amazon
Reverse Innovation…….• Innovation in to exploit cheap
brainpower and costs
• Innovation in emerging economies
• Global marketing of product
• Scale and price advantage
Example : GE Healthcare : Mac400 ECG Scanner, MRI Scanner
Innovation : Culture and Teams
Building & Sustaining Innovation Culture• Empower employees and their creativity • Inculcate habit of risk-taking • Review constantly, eliminate what is not required / not relevant• Set stretched targets and give autonomy• Learn into the future• Build social forums• Have system of rewards & recognition• Celebrate success as well as failure• Build an ambience of free exchange of ideas, transparency & learning
Building a Lean & High Performance Innovation Team.......
• Build the right team• Articulate a Clear Vision• Build a Culture of Innovation• Set Inner Rebels Free• Trust me – You Need Trust• Stay Lean• Innovate at Speed• Stick to Values
Competitive Advantage Through Innovation
• New Market / Customer • Cost Reduction resulting in Better Pricing • Improvement in Productivity & RoI
– Improved Quality– Improved/ Additional Features– Shorter Turn-around Time
• Improvement in Culture• Improvement in Technology Threshold • Creating Barriers
• Which paradigm to you think was adopted? How did it gain the competitive edge?(Till 2000, R&D oriented, after that thrust on open innovation through Connect & Develop, Lower cost, Best Global Practices, Co-creation & Co-design) • Which do you think are the most important constituents of creative culture in P&G? (Free & open thinking for problems ,Networking & Associating, stretched targets)
• Does P&G follow top-down innovation? (Yes)• • Is bottom-up innovation followed in P&G? (Yes)
• What should be the approach of P&G to overcome the current threat? (Thrust on customer focused innovation, Great New Product Vitality Index, More thrust on open innovation)
Innovation Concepts & Culture : P&G
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up0
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45 42 42
29 29
2523 23 22 21 20 20
Start up Barriers
Eco-System To Foster Innovation
Govt•Policies•Regulations•Tax / Incentives•Laws(Bankruptcy)• IPR
Govt•Regulations•Tax / Incentives•Laws(Bankruptcy)
Demand•Economy•Big Companies•Other Companies
Linkages •Universities •Corporate R&D Labs•Open Innovation•Crowd/Web-Sourcing• Financial Institutions
Funding•Debt, Seed Fund •Equity•Full Range of Options• R&D Funds
Culture (People)• Empowerment• Risk Taking, Pro- activeness, Autonomy• Career advance vs Risk • Shared Passion• Reward Mechanism• Sharing / Discussion• Mentoring /Handholding• Diversity
Entreprenuership Development•Labour pool•Education•Networking
Infrastructure•Physical (Social, Technical)•Services•Forum for Ideas
Innovation Eco-System
Prime Differentiator
Innovation Process
Set Innovation Objective
Formulate Strategy
Define Execution & Monitoring Mechanism
Implementation Process Periodic Review
Allocate Resources & Define Organisational Structure
Boardroom Activities
Execution ProcessExecution Process
Execution
Environmental Scan
Create Real Values Create an
Enabling Environment
Empower & Ensure Support
Mechanism
Identify Good Ideas
Paint a Clear Picture : Set
Real Goals
Establish Ownership
Ensure Teamwork
Game Plan of the Organisations
Innovation Governance
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Successful Project
Unsuccessful Project
Innovation & Corporate Entrepreneurship : Risk - Internal……….
Demand Risk
Innovation Cost
Risk
Mark
et Risk
Informati
on Risk
Finan
ce Risk
Competition Risk
Brand Nam
e Risk
Trademark
Risk
Extrao
rdinary
Risk
Foreign
Regu
lation Risk
National
Regulati
on Risk0
1
2
3
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Weighted Mean
Innovation & Corporate Entrepreneurship : Risk - External……….
Innovation Governance Tools• Strategy Review
• Financial Involvement
• Review of Board Agenda • System of Rewards & Recognition
• Organisational Cultural Audit
• Engagement with the Stakeholders
• Integrating War Games into Innovation activities
Organisational Cultural Audit
Compe
titiv
enes
s
Socia
l Res
pons
ibili
ty
Cilent
/ Sta
keho
lder
Orie
ntat
ion
Chang
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ntat
ion
Team
work
Fun
Reson
sibili
ty &
Acc
ount
abili
tyTru
st
Learn
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nviro
nmen
t
Resul
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ntat
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Respe
ct fo
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Indi
vidu
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Entre
pren
eurs
hip &
Mot
ivat
ion
0
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ValuePractice
• How effective is the Innovation Governance? • How is the Innovation Pipeline maintained?
• How has the Eco-system has been created?
• What are the competitive advantages of Apple?
• What do you think are the most looming threats for Apple? How should it resolve them?
• What should be the role of BoD?
Innovation Eco-system & Governance : Apple
Case Study : 3M India: Innovation Driven Company
Vision : 3M ……
• 3M Technology Advancing Every Company• 3M Products Enhancing Every Home• 3M Innovation Improving Every Life
Company Values…. Act with uncompromising honesty and integrity in
everything we do.
Satisfy our customers with innovative technology and superior quality, value and service.
Provide our investors an attractive return through sustainable, global growth.
Respect our social and physical environment around the world.
Value and develop our employees’ diverse talents, initiative and leadership.
Earn the admiration of all those associated with 3M worldwide.
Company Values………
Consumer & Office Business
Business Verticals……
Display and Graphic Business
Industrial & Transportation
Business
Safety, Security & Protection Services
Business
Electro & Communication
Health Case Business
1
2
3
4
5
6
8 Pillars of Innovation
Quantify Efforts
63
4
Innovation is Not Possible Without
Broad Base of Technology
1
From the CEO on Down, the
Company must be committed to
Innovation
Set Individual Expectations &
Reward Employees for Outstanding
Work
52
Talk, Talk, Talk
7
Research Must be Tied to Customer
Corporate Culture Must be
Actively Maintained
8
Invest in People
1940s
Cellophane Tape
Overhead Transpa-
rency Film
Overhead Projector
Time
Roadmap : Products &
Technology: 3M
Pocket Projector
Overhead Video
1940s
1960s
1980s
2000s
Freedom to Experiment & Make Mistakes. Mistakes (Challenges) also
rewarded
Product Vitality Index (35-40% : New Products
Index)
2
3
6
Culture & Systems
1
15 / 85 Rule
Dual Ladder Career Track
73
65
Encourage to Do Things Differently
& Efficiently
Successful Idea Owner Becomes
Entrepreneur
8
Systematic Analysis of
Opportunities
4
New Products / Technology
Forum
Support for IP Registration
Complete Office Resources
15/85 Rule in the Lab (Respecting Initiative of an
Individual)
2
45
Allocation of Resources
1
Funds & Grants (Alpha Grant, Genesis Grant,
Incubator Fund)
6
Forum for Discussion of
Innovation Projects
3
Physical & Technical
Infrastructure
Lean Six Sigma
Total Customer Focus
Prototyping : A few Weeks only
2
45
Execution
1
6
High Impact Program (Marketing of Selected
Products I a Short Time-Frame)
Pollution Precaution Pays
Close Monitoring
3
7
Problem Solving Missions
Awards (Path Finder )
Lunch with CEO / MD
Factored in Career Progression
1
3
4
Recognition & Awards
5
Opportunity to be the Project
Director
Golden Step Award for those
successful in new venture
26
Technology Sharing Awards
Necessary Counsel /
Allocation of Resources
Review Product Vitality Targets
Review Successes /
Mistakes at All Stages
Discuss Successes / Failures in Forum
1
2
3
4
Periodic Review
Company Values…. The company is in the top 10 Innovators.
Almost 35-40 % and more of the turnover accounted for products innovated in the last 4-5 years.
15/85 Rule has resulted in killer products such as Post-it-Notes, Scotch-Brite, Road Dividers,etc.
Company has top retention ratio
Company always amongst the top admired companies.
Results………
Takeaways
Company Values…. Competitive advantage and sustainable growth requires
continuous innovation
Innovation should be central to vision & must stick to values without any compromise
Pro-active approach with autonomy pays
Set audacious targets and give op freedom
Set sound governance standards
Innovation begins with ideas & creativity. Bolster creativity in the enterprise
Have a sound eco-system in place for a sustainable and scalable innovation
It is people, people, people & culture
Lessons………
Thank You