The Connected Art of Selling Outcome-Based Solutions

Outcomes ROI neededThe typical linear and often siloed mindset that we have for much of our innovation thinking within our business organizations, has to rapidly fall away. We are in the ‘cusp’ of a fundamental change that technology, platforms and connected ecosystems will bring into the mix for connecting and collaborating in dramatically different ways than the past.

One of the implications will be our need in measuring and the metrics within companies. The measurement of inputs, throughout and outputs need to become far more focused on delivering speed and scale potential as the critical points. We are far more needing to focus on the outcomes as our primary point of measurement.

This is a further post on discussing outcomes as the focal point of our innovation measurements, following my recent one of “Shifting to Ultimate Outcomes”

Recognizing the emergence of the outcome economy

The outcome economy which is emerging has many implications within it and how we measure and value these will become increasingly important. Companies will need better data to calculate costs, evaluate its potential value and will be modelling far more the risks and tracking the factors required to deliver within any outcome-based value promised.

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Shifting to Ultimate Outcomes

OutcomesMany organizations are struggling with their metrics and ways to measure the progress and success of their business. From this writer’s point of view their innovation activity gets caught up in plenty of unintended consequences, to put it mildly, in wasted debate, discussion & bad decisions through wrong measurement criteria.

Firstly, we are still locked in the old paradigm of thinking this is an industrial economy where we set about measuring inputs to innovation (R&D expenditure, capital investment) and then focused on the intermediate step of throughput and then outputs (publications, production units, patent filing, end products).

We also perceive innovation far too much still as an activity within just one company – viewed as linear, with considerations for services more of an after thought (like ‘bolt-ons’). Production systems still remain far too often the driving force of performance judgement.

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Innovation is like a tropical rainforest

Innovation is like a tropical rainforest

Innovation is like a tropical rainforest

Recently I have been asked about my innovation activity ‘going forward’ and I described it like a forest needing some fresh attention. There is my need to cut down certain trees, clear away a lot of the floor covering to allow the sunlight in and permit those ‘selected innovation tree’s’ to be allowed to grow stronger.

We all have those times where we need to choose, to pursue clearer pathways we believe are better for us. To be more selective in what we do, to be more focused and hopefully achieve a better, lasting result that hopefully offers a more satisfying set of outcomes, to both clients and to ourselves.

Within this comparison I am presently making of innovation being like a forest, I really began to see so much more of a connection in what is happening around in innovation that it can be compared to understanding a tropical rainforest. There are many comparisons, let me outline some of these here.

The ecosystem within the rainforest is also needed for innovation to work effectively  

Firstly I would argue that innovation, to be managed well, needs to operate like an ecosystem, the same as a tropical rainforest. Ecosystems to flourish need to experience critical feeds, in the rainforest this is high average temperatures and significant rainfall. Well innovation to thrive needs equal attention; it needs a real focus, above average and significant attention to be well maintained.

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Designing appropriate tension into the innovation process.

I’ve always loved this: “appropriate adaptiveness is not a natural tension- it has to be designed.” OK, I can hear you quietly sniggering.

When you are dealing with the innovation process you naturally have tension. Often if you have no tension or simply too much slack built into the process, you don’t end up in achieving a good result, it falls well below expectations. it is often this lack of designed-in ‘tension’ that is not appreciated like it should be within the innovation process. The wrong tension is left to eat away at the innovation process.

Firstly a cautionary warning here.

Now this is about to get into the realms of theory but I hope you stay with me on this. Why? Well knowing why innovation does fail can be useful (to your future) and what you can design into it, so as to reduce this risk has some value, I would think. So tune out or hang in- your choice. Continue reading

Transform European activities around innovation ecosystems

The challenge today is to transform European activities around innovation. It is the same for the United States as the growth and job mantra will simply come from innovation. In the EU case, Innovation forms a central plank of the 2020 Europe goals.

Regretfully the next Titanic is waiting to happen.

In recent months there has been considerable activity to formulate the new policies to support innovation through EU funding. The EU has been inviting dialogue and offering a mountain of guidelines and suggestion to help us all.  Much of the focus is on streamlining what is already in place.  I’ve called this on some different discussion blogs a little like “reorganizing the innovation deck chairs on the titanic as it heads towards an iceberg”.

There is enormous activity and pressure to perform as the past results of many of the EU initiatives have not delivered on the goals set, and there is this real urgent need to reflect upon the lessons learned from the failures of the Lisbon strategy. It does seem the present ‘effect’ is put on more steam, lighten the load where we can and let’s try and navigate through these challenges (or icebergs), no time to lose. Everyone is on high alert in Brussels and around the EU all busy doing their job to contribute to present dialogues on making innovation a success. We need to take really radical action in my view.

Perhaps we should be shouting “all stop”

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The beginning of a new era for innovation, truly global.

Braden Kelley wrote an article entitled “Is the era of Innovation Over?” ( http://bit.ly/h9FCr6) which I would like to build upon.

Braden is the author of “Stoking Your Innovation Bonfire” from John Wiley & Sons and is also the editor of Blogging Innovation (http://bit.ly/d2c9aW ).

Braden picked up on an article lamenting the seemingly poor state of Canada’s innovation efforts (http://bit.ly/fdLeI5 ) with the view that “Innovation is literally hitting a wall”. Braden has also commented about the recent US approach to resolving their innovation approach and believes it is limited in its understanding and appreciation of innovation.

Here in Europe we are certainly going through the same crisis of confidence with innovation, it is not producing the wealth and growth expected and needed to fuel our economies. The EU commissioner for innovation, Máire Geoghegan- Quinn, the EU’s first innovation commissioner, has started to created a lot of positive energy around some exciting new initiatives but are they enough? My answer is simply no.

For a very thoughtful article on the EU and innovation (http://bit.ly/hCZWdO ) published in www.innovationmanagement.se by Ann Mettler, Executive Director of think tank The Lisbon Council and here she gives her take on policy and innovation.

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Welcome to the brave new world of innovation ecosystems

Will ecosystems replace simple ‘old’ innovation collaborations as we know them today? Open innovation has suddenly lost its pole position. Board rooms around the world will be thinking through the events that unfolded yesterday and I’m not talking about Eygpt.

Just get into the story that has been unfolding at Nokia in the recent weeks, it has been breathtaking but it signals a massive change in where innovation will be going. Let me summarize some of this story and add some of my own thoughts on what this means.

Firstly the famous burning platform memo within Nokia.

In early February Stephen Elop, the CEO of Nokia issued a ‘burning platform’ memo internally

  • We are standing on a “burning platform,” and we must decide how we are going to change our behaviour.
  • The burning platform, upon which the man found himself, caused the man to shift his behaviour, and take a bold and brave step into an uncertain future. He was able to tell his story. Now, we have a great opportunity to do the same
  • And, we have more than one explosion – we have multiple points of scorching heat that are fuelling a blazing fire around us.

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