A Maturity Model for Innovation Management

1. A Maturity Model for Innovation Management Desai Narasimhalu Singapore Management University

2. Agenda • Challenges • State of the art • Maturity model • Balancing creativity Vs Efficiency • Climbing the ladder • Drilling down on open innovation • Summary

3. Challenges Common perceptions with regard to innovations • Ownership • Ability • Culture • Buy-in

4. Open Innovation Management (OIM) Open Innovation Management Pervasive Innovation Management (WIM) Pervasive Innovation Management Proactive Innovation Management (PIM) Proactive Innovation Management Reactive Innovation Management (RIM) Reactive Innovation Management No Innovation Management (NIM) No Innovation Management Maturity Model for Innovation

5. Discussion on the maturity model • NIM • Business as usual • RIM • Focus on competition, fast follower model • PIM • Building an innovation pipeline using a centralized group • WIM • Establishing an innovation culture across all groups for building an innovation pipeline. • OIM • Leveraging Rest of the World (ROW) for seeding the innovation pipeline

6. Balancing creativity vs. efficiency Different styles for different phases: Creative freedom Ideation Innovation Piloting Efficiency discipline Product design Manufacturing Sales and Marketing After sales support Bottom line Creators may not be the best to grow a product – learn from start ups Training employees to be commandos and not infantry !!!

7. Moving up from NIM to RIM • Policies relating to • Triggers for constituting a response team • Composition of the response team • Situations that would need hiring external consultants • Departments that need to represented • Training of response team members • Innovation methodologies • SWOT analysis • Competitive Intelligence • Terms of reference to the response team • Response planning time frame • Risk (due to the competitor’s move) assessment • Guidelines for recommendations • Choice of leadership for the response team

8. Moving up from NIM to RIM • Processes relating to • Composition of the response team • Situations that would need hiring external consultants • Departments that need to represented • Training of response team members • Innovation methodologies • SWOT analysis • Competitive Intelligence • Key issues related to the response • Response planning time frame • Risk (due to the competitor’s move) assessment and management • Guidelines for assessment, selection and implementation of recommendations • Appointment of response team leader

9. Moving up from RIM to PIM • Policies relating to • Composition of the IM Steering committee • CxOs’ role in the steering committee • Situations that would need hiring external consultants • Departments that need to represented in the steering committee • Training of IM team members • Innovation methodologies • SWOT analysis • Competitive Intelligence • Terms of reference to the IM team • Planning time frame • Innovation related risk assessment and Management • Scope of Innovation • Process innovation • Product innovation • Service innovation • Keeping the lights on innovations • Transformational innovations • Growth oriented innovations • Choice of leadership for the IM team

10. Moving up from RIM to PIM • Processes relating to • Composition of the IM Steering Committee • Situations that would need hiring external consultants • Departments that need to represented • Training of IM team members • Innovation methodologies • SWOT analysis • Competitive Intelligence • Key issues related to the IM planning • Planning horizon • Innovation related Risk assessment and management • Assessment, selection and implementation of recommendations • Appointment of IM team leader

11. Moving up from PIM to WIM • Policies relating to • Evangelizing Innovation • CxOs’ and Division Heads’ role in the Promotion • Engagement of corporate and division level evangelists • Benchmarking the impact from the innovation related evangelism • Training of new and current employees on • Innovation methodologies • SWOT analysis • Competitive Intelligence • Measuring effectiveness of broad based training • Establishing a culture and support structure for innovation • Defining the culture • Walking the talk • Rewarding the successes • Forgiving the failures • Identification and promotion of exemplars • Risk (of abuse) assessment and Management • Establishing a Support structure • Schemes for pursuing innovations • Resources required for pursuing innovations • Visibility for innovations

12. Moving up from PIM to WIM • Processes relating to • Innovation evangelism • Promotion • Assessment • Refinement • Training of employees • Nature of training • Effectiveness of training • Results attributable to training • Key measures relating to Innovation • Percentage of employees participating • Number of innovation proposals per capita • Percentage of high quality proposals accepted and supported • Quality of responses from the management for those innovations not pursued • Percentage of new products developed per year • New revenue earning arising out of innovations • Operational and other cost savings due to innovations • Improvement in employee morale due to support for innovations

13. Moving up from WIM to OIM • Policies relating to • Economic • Funding • Technology licensing • Human capital related issues • New Hires (and “No Hire” policies) • Consulting engagements • IP issues • IP sharing • IP acquisition

14. Moving up from WIM to OIM • Processes relating to • Funding open innovation • Sharing of costs for open innovation • Identifying Talents for Hire • Hiring talents • IP enhancement, acquisition and retention strategy • Know-how acquisition and retention

15. Open Innovation at large Open Innovation Management Joint innovation development Pervasive Innovation Management Pre-competitive open innovation Proactive Innovation Management Open Innovation with lesser partners Reactive Innovation Management No Open Innovation No Innovation Management Drill Down for Open Innovation

16. Discussion on open innovation • No Open Innovation • Over reliance • Open innovation with lesser partners • First right of refusal, talent sourcing, university • LIUP, Spinning in • Precompetitive consortia • METI, ITRI, Remon Ahd Israel 4G, … • Joint Innovation • SONY / Ericsson, HP – Intel itanium, … • Open Innovations at large • Singapore Israel Industrial R&D foundation

17. Summary • Challenges • State of the art • Maturity model • Balancing creativity Vs Efficiency • Climbing the ladder • Drilling down on open innovation