Category: Building Innovation Capability

The shaping of innovation- future directions

Rethinking innovation after a week where I have argued for a more common approach to innovation (see some of my recent posts )- as one that can be well structured and managed – I feel needs to be discussed next. I do fear if we don’t radically rethink innovation we are in danger of missing out on much that is coming towards us.

If we do not adopt and gain a clear understanding of (basic) innovation, its structure, process and differences in approaches we need, we will certainly struggle to move beyond the basics to the ‘promise’ of advancement that innovation should be offering.

I would like to offer some of the factors that I feel will be shaping innovation’s future; many are presently taking place but in pockets of expertise and experimentation, that we have to investigate more to understand the implications further.

What is holding innovation back?
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Critical aspects of the Collaborative Innovation Framework

This week a collaborative innovation framework venture has been launched by Jeffrey Phillips at http://www.innovateonpurpose.com and myself, Paul Hobcraft at http://www.agilityinnovation.com.

They have opened up a wiki for anyone to join with the intention of building on these frameworks. This is at http://cirf.pbworks.com.

This effort is seeking contributions, we want your engagement. It is deliberately open to be used, to be improved upon and to form a platform for standard thinking through for innovation providing it works under the creative commons license it has.

For far too long innovation has been left to chance. We are interested in explaining the many facets that make up a successful innovation endeavour but it can be extremely tough to capture and explain the complexity of innovation. Innovation is dynamic and throwing open this set of models allows for it to be constantly improved for all to benefit.

Four Critical Slides
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The thinking behind creating an open collaborative innovation framework

I often get very frustrated at the huge loss of energy by many organizations in piecing together a more robust innovation structure. Somehow they lose it. They forget to think it fully through, rush to build some of the component parts and then spend a lot of their time, backfilling or bridging the gaps they created in the first place.

I really would like to reduce this diffusion of spent energies, so these efforts are directed at the critical points of understanding within the innovation process, to drive through new initiatives in a sustaining way. If we can gain this depth of understanding by all, then there is a greater identification to the whole.

Also, we gain a better appreciation of the parts we are playing within the system to make a more positive contribution to growing your innovation activities in a clearer environment. It would improve innovation identification and outcome results.

So with this thinking behind us, Jeffrey Phillips at http://www.innovateonpurpose.com and my organization through http://www.agilityinnovation.com, we began to talk through and exchange ideas and concepts for building a collaborative innovation framework.

We wanted any end result to be open and freely shared with anyone.

We wanted others to build on these early attempts to move, if we can, to a better standard. We recognized whatever we produced needed adapting to meet different circumstances but was generic enough to be recognized.
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Managing different open innovation roadblocks

I always find thoughtful lists extremely helpful to prompt my thinking on different issues, it often helps to unblock my own thinking and for me, this one certainly did for open innovation and possible roadblocks.

One such list I compiled from mainly two sources on roadblocks to open innovation. The main source was Dr Brian Glassman. He wrote a paper “Open Innovation’s Common Issues & Potential Roadblocks with Dr Abram Walton. (http://www.innovationtools.com/PDF/OI_issues_and_roadblocks.pdf) and different thoughts that I found as well worked through.

The other source to make up this list was from P&G’s experiences gleaned from different sources. Together I feel they make for a solid list of roadblocks or issues to think through. Let me share these:

Firstly the core need or use of open innovation

  1. Generating ideas for new products and services
  2. Solve technical problems that are vexing or too complicated or expensive to solve internally
  3. Co-development of difficult problems, services, products, technologies

Issues & Potential Roadblocks
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The new extended innovation funnel

The ideas funnel has been with us a long time. We put our ideas into the funnel and then through a process of elimination out ‘pop’s’ finished products.

Henry Chesbrough’s famous depiction of the Open Funnel has continued that concept, that ideas enter the more ‘open’ innovation process and go through a more ‘staged gate’ or equivalent process to emerge as the finished product or even spun-out- all well and good.

In the past few weeks the funnel has been constantly coming back in my life. It has been bugging me. Recently I was at a European Innovation Conference and we got into a roundtable discussion on managing ideas and up pop’s the fuzzy front end and the funnel and putting ideas through this.

To be provocative I said “well ideas are actually in the middle of the innovation process” and we got into a significant debate on this and concluded that we all did not share a common language on this or understanding of what I was struggling to articulate.

So let me lay out my view. Firstly this was not as inspired as an insight I can fully lay claim to as mine. I had read somewhere this very point, that ideas lie more in the middle of the innovation process but just could not remember where I had read it- grey cells are my excuse.
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The Antibodies Sitting in the Innovation Petri Dish

For many years I’ve been fascinated by these ‘Corporate Antibodies’ that we find in that classic management pathology that instinctively rejects and refuses to alter its ways, so as to protect itself, well innovation management is full of them.

The internal immune system somehow identifies and neutralizes often far too many foreign objects, ideas, concepts or solutions. In the medical world, the antibody is a protein produced to protect the body’s immune system when it detects harmful substances, called antigens.

Innovation to be successful has to immune itself from many ‘antibodies’.

Last week I was remind of this. I attended a good, insightful conference (www.eic2011.com)  on open innovation and new business creation, along with 200 practitioners from large mostly European organizations.

What struck me was the consistent reference to stopping the ‘culture’ of rejection; ‘killing off’ projects, the fear of not-invented here.

I often felt some of the speakers themselves were actually reinforcing this antibody culture, yet they were leading the charge for more open innovation, the very force to eliminate this.
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Going behind the outside-in of imagination at GE.

In the past few months, I have become interested in GE and how it is managing innovation. Often you read a number of negative reports on GE but is this just the big guy being picked upon by more nimble observers that have limited insight into what is going on behind the walls of GE?

What is under the innovation bonnet at GE?

There does seem an awful lot going on in GE around innovation on what we can observe from the outside looking in. Of course, you would expect this in an organization the size of GE employing 300,000 people across 100 countries and generating $150 billion dollars in revenue.

In Jeffrey Immelts (Chair and CEO) own words “the toughest years of my life were 2008 to 2009”.To drop 31 billion dollars in revenue in two years is tough to manage through, and to see net earnings drop by nearly $6 billion dollars in this period to where it is today, of $11.6 billion dollars, must have been very hard.
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Societal Innovation – challenging our future thinking

There needs to be this major shift from market-led to more societal led organizations occurring. We see pockets of this in a number of business organizations offering clearer governance and sustainability outlines as part of their annual reporting.

We need to push them a lot harder. We need to move away from business-only innovation into a society based.

The shifts taking place

Society has shifted, is shifting; the consumer is becoming the supplier of content, meaning, of their taste preferences, their emotions and the goods and services they will buy. Mass consumption, the model honed in the 20th century doesn’t work anymore.

Customers are actually saying “less choice, more say” and seeking deeper self-determination. This personalising of preference can seem more complex for organizations but there are many ways to manage this it requires real change in organizations, oriented to society more, serving them more.

The marketing thinking is in need of adaptation also.
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The power and promise within innovation: shifting up our gears

Are the rules around innovation changing? Are we spotting the changes in the drivers and current deterrents of innovation? What are the present-day perceptions around the innovation challenges?

GE released their first-of-its-kind “Global Innovation Barometer” at the end of January 2011. It is focusing on identifying the changing landscape for innovation in the 21st century. It suggests innovation will be a catalyst for improving multiple areas of citizens’ lives in the next ten years.

In many ways, it paints a very optimistic future for innovation. Innovation, the survey predicts, will create jobs, improve lives, address more human needs, find better ways to collaborate and learn, and simply create good in people’s lives with the promise of prosperity.

I wonder a little differently: “are we not placing too bigger a burden on innovations’ shoulders?”
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Social innovation comes of age in Europe

“Social innovation is about new ideas that work to address pressing unmet society needs”

The shifts taking place in Europe

The competitiveness and challenges that Europe faces in the next ten years are significant. Innovation has been placed at the heart of Europe’s 2020 strategy.

It is this clear recognition that innovation is the best means of tackling issues that will affect our future living standards is not new in itself, but it is this real political recognition of its place and importance, now that is.

Innovation is also our best means of successfully tackling major societal challenges, such as climate change, energy and resource scarcity, health and aging and becoming more urgent each day to address in more systematic ways.

European funding of innovation in recent years has perhaps placed far too much emphasis on research and development to deliver the growth and jobs it requires.
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