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Anyone interested in making his team / organization more innovative needs to find out answers to 2 questions: (1) Where do we stand? (2) What to do next? This presentation shows how "8 steps to innovation" approach can be used to do this systematically.
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“8 steps to innovation” in action Vinay Dabholkar, Ph.D.
President, Catalign Innovation Consulting
[email protected], 99457-57913
www.catalign.com
May 08, 2013
Rishikesha T. Krishnan
Professor of Strategy & Corporate Policy
Indian Institute of Management, Bangalore
What “8 steps” doesn’t advocate
Follow step-1 to 8 and you get a ready-to-use culture of innovation
Basket of techniques Pick the one you like
“8 steps” approach & 2 questions
Where do we stand? What to do next?
Use one or more steps and Iterate
Where do we stand?
Question #1
Don’t track idea pipeline
Level-1: Ad Hoc
Idea Mgmt Buzz creation L&D Participation >10%
2
Level-2: Foundation (of 3 key processes)
8 steps assessment framework
1
Prototypes>10%(ideas) Response time<1month Participation>30% Incubation pipeline Review: Quarterly
Level-3: Engaged (In Experiments/Reviews)
3
Idea/person/yr >1 Big idea pipeline> 10% of revenue # of sandboxes>1 Dedicated team(s) Specialists
Level-4: Aligned (with strategy)
4
Success of imple- mented ideas>50% % of rev from innov >20%
Level-5: High Batting Average
5
1
How to build an
idea pipeline?
2 How to improve idea velocity?
3 How to improve
batting average?
Measuring idea pipeline
Small
ideas
Patentable
ideas
New product
ideas
New business
ideas
ID/person/yr
Patents/yr
Potential biz impact / % of rev
100 ideas, $1 B each
Machine tools:
100 Cr Rev, 2 Cr each idea
Idea/person/yr
TVS Motors: 44
Tata Motors: 22
Cognizant: 1
Measuring idea velocity
Experiments Reviews Response
Time
Ideas with
champions
Shell Gamechanger
< 48 hr
Toyota < 1month
% of ideas
#of exp
Quarterly
Measuring batting average
Success rate Biz impact Sandbox Partnership
Network
# of active
partners P&G: 15%->50%
Cognizant:
$550M/yr
Avg response
time to a
challenge
# of
sandboxes
# of
technology
platforms
3M: 45
Question #2
What to do next?
Build Pipeline Improve velocity Enhance batting average
What to improve? H
ow
to
su
stai
n t
he
chan
ge?
The Elephant and the Rider model
Rider Elephant
Effortful Effortless
Slow Fast
Analytical Intuitive
Snooze Set alarm
Emotional
To sustain a change: Get Elephant and Rider to go together
Rider: Needs direction (goal, guideline, plan, framework)
Elephant: Needs motivation (passion, fun, recognition, pride)
Elephant: Will follow a changed path (process change – ATM card removal)
Build Pipeline Improve velocity Enhance batting average
Ho
w t
o s
ust
ain
th
e ch
ange
? What to improve?
Dir
ect
th
e R
ide
r M
oti
vate
th
e
Ele
ph
ant
Shap
e t
he
P
ath
Situation #1: Pipeline “uninteresting”
• Innovation program launched in Dec 2010 • Within a month 40 ideas came from 25 people • None of the ideas was “interesting enough”
Is it an Elephant problem or a Rider problem?
• A challenge book was created: 20 problems • President’s challenge was launched • 20 responses came – Many were “interesting”
It is a Rider problem: Don’t know which problem to solve
Build Pipeline Improve velocity Enhance batting average
Ho
w t
o s
ust
ain
th
e ch
ange
? What to improve?
Dir
ect
th
e R
ide
r M
oti
vate
th
e
Ele
ph
ant
Shap
e t
he
P
ath
Challenge Campaign (step-2)
Situation #2: Pipeline drying up
• Portal phobia – Not interested in one more log-in • Innovation council members felt portal is the only way
?
Is it an Elephant problem or a Rider problem?
It is an Elephant problem: resistance for one more login
An experiment: Put up a challenge next to cafeteria Wow! A number of responses in a couple of days And everybody passing by is stopping by to read!
In two months, 100+ ideas!
Generated gossip around ideas as well
Launched an “idea wall” on every floor
Build Pipeline Improve velocity Enhance batting average
Ho
w t
o s
ust
ain
th
e ch
ange
? What to improve?
Dir
ect
th
e R
ide
r M
oti
vate
th
e
Ele
ph
ant
Shap
e t
he
P
ath
Idea Wall (step-1)
Situation #3: Avg response time high
• Average response time > 4 months • Dept / Brand heads were not reviewing ideas (online)
Is it an Elephant problem or a Rider problem?
• Not sure… May be Elephant • Experiment: Took approver’s appointment • Took printouts of 10 ideas to him • In 15 minutes all reviews were done! • Looks like an Elephant problem! • Idea review not getting a priority
Shape the path: Review by walking around
3 Reviewers
50 ideas, 1 poster / idea
Prototypes if available
Idea authors in the room
Review done in less than an hour!
Some idea authors got opportunity to explain
Outcomes: Direct implementation, PoC, Parked
Build Pipeline Improve velocity Enhance batting average
Ho
w t
o s
ust
ain
th
e ch
ange
? What to improve?
Dir
ect
th
e R
ide
r M
oti
vate
th
e
Ele
ph
ant
Shap
e t
he
P
ath
Review by walking Around (step-5)
Situation #4: Lack of collaboration in group companies
• Group Chairman felt there was possible synergy • Nothing was moving
Is it an Elephant problem or a Rider problem?
100 prototypes on display in 3 months! Group Chairman visited
A mini-sandbox
Build Pipeline Improve velocity Enhance batting average
Ho
w t
o s
ust
ain
th
e ch
ange
? What to improve?
Dir
ect
th
e R
ide
r M
oti
vate
th
e
Ele
ph
ant
Shap
e t
he
P
ath
Sandbox + Chairman visit (step-7)
The book has many more options!
Build Pipeline Improve velocity Enhance batting average
Ho
w t
o s
ust
ain
th
e ch
ange
? What to improve?
Dir
ect
th
e R
ide
r M
oti
vate
th
e
Ele
ph
ant
Shap
e t
he
P
ath
Pain-Wave-Waste
Catalyst/Mentors
Domains of action
Internal role model
Community of practice
Emotional appeal
Idea mgmt process
Buzz creation
L&D
Low-cost High-speed Experimentation
Make idea sticky
Reward failures
Create a Lab
Champion ideas
Define review checklist
Effective review
Internal venture fund
Build a sandbox
Baseline rate
Last experiment first
Conduct pre-mortem
Affordable loss
Create a platform
Balance portfolio
Summary
Pipeline Velocity Batting avg
Direct Rider
Motivate Elephant
Shape the Path
Leve-1 to 5
Where do we stand? What to do next?
Pip
elin
e
Ve
locity
Ba
ttin
g a
vg
Thank You
http://www.8stepstoinnovation.com/
Other related links:
http://catalign.in/index.html
8-stps site:
Vinay’s blog:
Rishi’s blog: http://jugaadtoinnovation.blogspot.in/
Hope you read the book
http://www.catalign.in/2013/05/using-navigation-matrix-in-innovation.html
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