towards global innovation management principles€¦ · innovation management principles should be...
TRANSCRIPT
Towards global
Innovation Management Principles
International standardization
ICIS 2018 [updated 2019] • Magnus Karlsson
Background
Develop a guiding framework for top management to manage innovation
activities.
What are the fundamental innovation management principles?
ISO
Why now?
Lack of credible and
common framework
Lack of common
definitions and language
What is standardization?
4
Voluntary process of developing specifications
based on consensus among all interested parties
Carried out by independent standards bodies, at national,
regional (e.g. CEN) and international (ISO) level
International standardization
CEN/TC 389 started in 2008, by Spain
First publication 2013: CEN/TS 16555-1 Innovation Management System
Work started in ISO/TC 279 in 2013, by France
Publications during 2019: ISO 56000-series
52countries
OECDWIPOWTO
World BankISPIMEtc.
Participation
Deliverables
ISO 56000
Fundamentals & vocabulary
+
Innovation Management
Principles
ISO 56002
Innovation Management
System
ISO 56003—Innovation Management
Assessment
Innovation Collaboration
Strategic Intelligence Management
Intellectual Property Management
Idea Management
Innovation Management Principles
Realization of value
Exploiting insights
Future-focused leaders
Strategic direction
Managing uncertaintyInnovation
cultureAdaptable structures
Systems approach
1 Realization of value
Definition of innovation
new or changed
product, service, process, model, method, etc.
realizing or redistributing value
R&D is not enough
NO correlation between R&D spending and
business performance
Bo
oz
& C
om
pan
y
Example of action
• Evaluate innovation initiatives on a broad understanding of value, including social and economic value, competence building etc.
2 Exploiting insights
Innovation processes
Insights
Ideate
Validate
Develop
DeployIntent Value
Challenged by competition…
“Electrolux should develop its offerings based on a profound understanding of the consumers’ needs, instead of taking off from our technical skills and capabilities.”
Hans Stråberg, Fmr Group CEO, Electrolux
Example of action
• Engage with users, customers, partners, and other interested parties to develop unique and insightful knowledge
3 Future-focused leaders
Leadership challenge
Delivery - short term
Exploration - long term
Different leadership styles
Example of action
• Recognize and reward leaders that challenge the status quo, and share stories of successes and failures
4 Strategic direction
Innovation strategy & culture key
▪ 30% higher enterprise value growth
▪ 17% higher profit growth
R&D
investment
Innovation
strategy &
cultue
Business
performanceX =
Companies with a highly aligned innovation strategy and a culture that supports innovation significantly outperform peers
Bo
oz
& C
om
pan
y
Successful teams spend 54% more time first setting direction that serves as a guiding light
for resources allocation.
Wiita & Leonard, HBR 2017
Successful teams
Example of action
• Communicate the strategic direction by providing examples of opportunity areas and types of innovations to focus on
5 Managing uncertainty
Learning
Discovery-driven planning, McGrath & MacMillan 1995
Convert assumptionsinto knowledge
Innovation processes
Insights
Ideate
Validate
Develop
DeployIntent Value
“Build-measure-learn”
Example of action
• Support experimentation and risk taking, and establish a balanced portfolio of innovation initiatives
6 Innovation culture
Recognition
Risk-taking
Openness Commitment
Collaboration ParticipationDiversity
Incentives
Supporting innovation activities
Example of action
• Promote diversity to encourage different perspectives, and encourage open networks for finding opportunities and solutions
7 Adaptable structures
Incorrect performance metrics
Organizational design
Board inaction
Talent bench shortfall 9%
Strategic diffusionAdjacency failures
Voluntary growth slowdown
Customer dependencyFailed acquisition
Premature core abandonment 10%
13%Inability to respond to new challenges 23%
Organizational Factors – 17%
Strategic Factors – 70%
Unable to innovate (new products/services)
Within management control 87%
Outside management control 13%
Co
rpo
rate
Exe
cuti
ve B
oar
d
Why companies stop growing
Des
cham
ps
Adapt processes to opportunity
Example of action
• Create future scenarios and determine the transformations they imply, and the structures and resources needed
8 Systems approach
Innovation support
Innovation processesINTENT VALUE
Leadership
Planning Evaluation
Improvement
Context of the organization
Innovation Management System
Example of action
• Ensure that all relevant functions are represented to enable the organization to operate an effective management system
Innovation Management Principles
1 Realization of value
2 Exploiting insights
3 Future-focused leaders
4 Strategic direction
5 Managing uncertainty6 Innovation
culture7 Adaptable structures
8 Systems approach
Companies still confused
What it is
What it can do
Weather it can or should be formally managed
Innovation Management Principles
Should be revised based on further research and
practical experience
Common start for a conversation on effective innovation management
in organizations
The basis for an international guiding
framework: Innovation Management System
