Innovation operating models

Slideshow Transcript

1. Slide 1: PEER INSIGHT Innovation Operating Models Understanding the Migration Path to Organizational Effectiveness Rotman Conference Series W Hotel, NYC November 16, 2006 Jeneanne M. Rae Co-founder and President, Peer Insight, LLC Rotman Conference Series – GURU 2 PEER INSIGHT page 1 November 16, 2006
2. Slide 2: Peer Insight was formed to ask BIG questions about innovation … … and generate pragmatic answers companies can use NOW. Rotman Conference Series – GURU 2 PEER INSIGHT page 2 November 16, 2006
3. Slide 3: Rotman Conference Series – GURU 2 PEER INSIGHT page 3 November 16, 2006
4. Slide 4: We invited some companies to help us Rotman Conference Series – GURU 2 PEER INSIGHT page 4 November 16, 2006
5. Slide 5: Our analysis is driven by dialog (not questionnaires) and uses a forensic approach, based on a diverse mix of recent projects 43 different Global 500 companies analyzed 600+ interviews with senior service innovators failed 5 struggling 12 92 recent killed before launch projects too-soon-to-tell 4 20 destined for success 10 modest success 14 proven success 27 Source: Peer Insight analysis of 92 recent service innovation projects Rotman Conference Series – GURU 2 PEER INSIGHT page 5 November 16, 2006
6. Slide 6: research highlights migration path to innovation effectiveness conclusions Rotman Conference Series – GURU 2 PEER INSIGHT page 6 November 16, 2006
7. Slide 7: Structural models of innovation observed for 92 recent service innovation projects at 43 Global 500 companies centralized heavyweight team hothouse (or incubator) generalists specialists 25 most successful outcomes All other projects BU team BU labs distributed Rotman Conference Series – GURU 2 PEER INSIGHT page 7 November 16, 2006
8. Slide 8: Percent difference between most-successful and least-successful projects 0 10 20 30 40 50 60 70 80 90 100 Foundation disciplines leadership Senior leadership engagement 83 Systematic innovation framework 17 High-potential innovation protocols exist 57 Close linkage to the brand promise 35 Front-end disciplines Insight into technology innovation patterns Deep insight into customer needs Robust methods for customer experience design 12 53 cX design 78 Innovation supply chain to leverage outside parties Techniques for early in-market feedback 59 57 Middle- and back-end disciplines Effective concurrent service design change Strategic use of IT platforms Enroll key stakeholders for launch 8 49 management 96 0 10 20 30 40 50 60 70 80 90 100 Source: Peer Insight analysis of 92 recent service innovation projects Rotman Conference Series – GURU 2 PEER INSIGHT page 8 November 16, 2006
9. Slide 9: research highlights migration path to innovation effectiveness conclusions Rotman Conference Series – GURU 2 PEER INSIGHT page 9 November 16, 2006
10. Slide 10: Companies are adopting innovation at different rates M&A + No Man’s Land Innovation 1.0 Innovation 2.0 Innovation 3.0 Six Sigma “Stay the “If” “How” “How it scales” “Why” course” Is innovation How do we find How do we make What does it mean the way to grow big ideas and get innovation easier, to our customers? burning profitably in the them off the more systematic, To our employees? question post-Six Sigma ground? so it doesn’t rely To the world? era? on heroic acts? focus search for methods and innovation cultural organic growth protocols operating model transformation (unit of measure) (experiments) (projects) (programs) (cultures) Distribution of innovation sophistication, all companies laggards late majority early majority early adopters leading edge Rotman Conference Series – GURU 2 PEER INSIGHT page 10 November 16, 2006
11. Slide 11: How 5 key elements of success typically map to the stages of evolution M&A + No Man’s Land Innovation 1.0 Innovation 2.0 Innovation 3.0 Six Sigma “If” “How” “How it scales” “Why” Is innovation the way How do we find big How do we make What does it mean to to grow profitably in ideas and get them innovation easier, more our customers? To our the post-Six Sigma off the ground? systematic, so it doesn’t employees? To the era? rely on heroic acts? world? search for organic methods and innovation operating cultural transformation growth protocols model (experiments) (projects) (programs) (cultures) Senior leadership Customer-centricity Operating model Innovation as a new Change management discipline 1 2 3 4 5 laggards late majority early majority early adopters leading edge Rotman Conference Series – GURU 2 PEER INSIGHT page 11 November 16, 2006
12. Slide 12: Google and Whole foods are examples from the leading edge M&A + No Man’s Land Innovation 1.0 Innovation 2.0 Innovation 3.0 Six Sigma Is innovation the way How do we find big How do we make What does it mean to to grow profitably in ideas and get them innovation easier, more our customers? To our the post-Six Sigma off the ground? systematic, so it doesn’t employees? To the era? rely on heroic acts? world? search for organic methods and innovation operating cultural transformation growth protocols model (experiments) (projects) (programs) (cultures) laggards late majority early majority early adopters leading edge Source: Peer Insight analysis Rotman Conference Series – GURU 2 PEER INSIGHT page 12 November 16, 2006
13. Slide 13: research highlights migration path to innovation effectiveness conclusions Rotman Conference Series – GURU 2 PEER INSIGHT page 13 November 16, 2006
14. Slide 14: Some conclusions Innovation science is evolving rapidly Customer-centricity is a key challenge The value is in creating innovation engines We have a lot to learn from each other Thanks!!!!! Rotman Conference Series – GURU 2 PEER INSIGHT page 14 November 16, 2006