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Daring Success factors for Radical Innovation Johan Maresch, Volvo Car Group Johan Hallendorff, Husqvarna Group IIA 2015-11-03

Successfactors wrapup Workshop Material

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Page 1: Successfactors wrapup Workshop Material

Daring Success factors

for Radical InnovationJohan Maresch, Volvo Car Group

Johan Hallendorff, Husqvarna Group

IIA 2015-11-03

Page 2: Successfactors wrapup Workshop Material

questions

What factors from the best of our knowledge and experienceis a ”must have”, ”important” and irrelevant for

success?

Page 3: Successfactors wrapup Workshop Material

• The data in this material is only indicative.

• Please make your own conclusions and be aware that the data is not quality proved nor large enough to represent a sufficient sample.

NOTE

Page 4: Successfactors wrapup Workshop Material

Factors

Most important Irrelevant Obstacles

Financing

Support and understanding from top management

Company processes

Right resources and access to these

Official scunkworks outside ordinary tasks

Momentum and push from intrapreneur

Steering group

Time and engagement from individuals (whole or partly) outside

their ordinary tasks (not sanctioned by boss)

Innovation organisation and their tools and processes

Innovation knowledge and experience

External help with the innovation process (e.g. consultants)

Contacts with partners (external)

Work cross organisations (internally)

Customer/end user understanding

Validation towards end user (customer) / early prototyping

Technical realisation

Implementation of processes (and/or organizational changes)

Implementation of business model

Receiver/handover of final results

Supplier engagement

Page 5: Successfactors wrapup Workshop Material

Factors from first session

at Innovation in Action -15

Page 6: Successfactors wrapup Workshop Material

Added factors from second

session at Innovation in

Action -15

Page 7: Successfactors wrapup Workshop Material

• Get support from internal organization by lobbying using early customer validation

• Sell your ideas, and sell them again

• Get customer insights, don’t ask for customer needs. (push to get bigger change!)

• Handpick your steering group, they should support, not align into old processes.• Decision maker(s) necessary, but advisors prefered

• Set the right objectives for the steering group• Radical innovation demands different objectives then normal projects

• Make sure to treat intrapreneurs right

• Use KPI’s and metrics that supports innovation “Leading metrics”

• Flexible and emerging business strategy

• Think ecosystem

• Separate the radical innovation from normal org/processes, “parallel innovation labs”• Example: Shell “game changer labs”

• Use strategic “buckets” for securing budgets

• Create Push and Pull

• Create a sence of urgency (generally to trigger pull for radical innovation)

How to improve chanses for

successful Radical innovation

Page 8: Successfactors wrapup Workshop Material

Factors found at tankmeeting -15

14 projects from initiating members

Page 9: Successfactors wrapup Workshop Material

Factors

Pre-fetched

information from 14

projects

Success factorsMost important Irrelevant Obstacles Well handled

Financing4 0 2 3

Support and understanding from top management5 1 2 3

Company processes0 5 7 2

Right resources and access to these4 0 3 4

Official scunkworks outside ordinary tasks3 4 0 1

Momentum and push from intrapreneur8 1 0 5

Steering group3 2 0 1

Time and engagement from individuals (whole or partly)

outside their ordinary tasks (not sanctioned by boss) 1 2 1 3

Innovation organisation and their tools and processes2 1 2 1

Innovation knowledge and experience4 0 1 2

External help with the innovation process (e.g. consultants)4 4 0 1

Contacts with partners (external)4 0 1 3

Work cross organisations (internally)4 1 4 2

Customer/end user understanding4 0 1 1

Validation towards end user (customer) / early prototyping8 0 0 4

Technical realisation3 0 6 2

Implementation of processes (and/or organizational

changes) 0 3 3 1

Implementation of business model1 2 4 1

Receiver/handover of final results0 0 5 1

Supplier engagement0 0 1 1

Page 10: Successfactors wrapup Workshop Material

• 1-400 MSEK

• 3-200 active persons

• 6 months to 6 years

• Positive influence: 30M – XbnSEK

• Most large projects

• Most involves R&D and a large portion of the company

14 success projects

0-1057%

11-5022%

51-2007%

201-14%

Approximate size of project(MSEK)

Page 11: Successfactors wrapup Workshop Material

Mostly radical ideas and from WS’s

0

1

2

3

4

5

6

1 2 3 4 5

Nu

mb

er o

f p

roje

cts

Incremental Radical

Incremental or RadicalFrom

Innovation org7%

From colleague

22%

From WS50%

From GIG/JAM/ Idea box…

Other21%

Chart Title

Page 12: Successfactors wrapup Workshop Material

Decision-making and drive

One person

14%

An intrapreneur

with help36%A team

14%

org/projekt7%

Other29%

Who's in the driver seat?

Always within16%

sometimes outside

69%

often outside

15%

inconclusive0%

AutorizationDecissions made within authorization

Page 13: Successfactors wrapup Workshop Material

• In eight of the cases top management and/or just below is the only ones making decisions.

• In two of the cases almost all levels have made decisions

• In only 42% of the cases the Innovation organization is making decisions.

• When do we involve the top management?

Where are the decisions made

7

8

4

3

6

Top management

Managers just below topmanagement

Middel layer boss

First line managers

Innovation organisation

Who made the decisions?

Page 14: Successfactors wrapup Workshop Material

Innovation process

allt8%

stor del8%

innovationsorg hjälper till

34%

innovationsorg litet bidrag

33%

ingen17%

How large part of the success is related to the Innovation process (or org.)?

Page 15: Successfactors wrapup Workshop Material

Correlation size:radical

0

1

2

3

4

5

6

0 1 2 3 4 5

Rad

ical

(1

-5)

Size (1-4)

Korrelationstorlek/radikalt

Linear (Korrelationstorlek/radikalt)

• No real correlation between size of project and how radical it is.

Page 16: Successfactors wrapup Workshop Material

Origin vs size and level of radical

0

0,5

1

1,5

2

2,5

3

3,5

4

4,5

5

0 2 4 6

Size

Origin

CorrelationOrigin - Size

0

1

2

3

4

5

6

0 2 4 6

Rad

ical

Origin

CorrelationOrigin -Radical

From Innovation org 1

From colleague 2

From WS 3

From GIG/JAM/ Idea box 4

Other 5

If you want radical, look for ideas from WS’s or Colleagues?

(And the projects are probably fairly cheap!!)

Page 17: Successfactors wrapup Workshop Material

• The more radical an idea is the more likely it is that there is a engaged individual.

Correlation individual-radical !!

0

1

2

3

4

5

6

0 2 4 6

Dri

ver

Radical (1-5)

correlationorigin-driver

Linear(correlationorigin-driver)

Other 5

org/projekt 4

A team 3

An intrapreneur with help 2

One person 1

Page 18: Successfactors wrapup Workshop Material