Www.agilityinnovation.com Collaborative Innovation Reference Framework The Strategic Layers The essential layers that support innovation

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Collaborative Innovation Reference FrameworkThe Strategic Layers

The essential layers that support innovation

The first of the three integrated frameworks is the Innovation Business Architecture. It starts by “peeling” what we call as the innovation onion. We recommend starting at the highest level, at the strategic level, and working down through several other “layers”, including people and processes. The goal of this first model is to deconstruct the important drivers and influencers which will direct innovation activities. From this we identify a innovation framework.


We are interested in explaining the many facets that make up a successful innovation endeavour. It can be extremely tough to capture and explain the complexity of innovation. We would like to see an emerging reference model for innovation from this starting point. The end result is to create a common innovation model or framework that accelerates acceptance, reduces mystery and rework and simplifies innovation efforts. Innovation is dynamic. Opening this set of models allows for it to be constantly improved for all to benefit - this is our stated aim in publishing these models.

We submit these suggested models as a starting point to deconstruct how innovation works and to encourage a “common” innovation model across all geographies, industries and markets. Developing a common innovation model and approach reduces confusion and simplifies innovation work. We believe we can remove a lot of the mystique around innovation and help accelerate its adoption and implementation by firms everywhere if we can agree on basic models and principles.

We would encourage you to feel free to send commentary, corrections, additions or changes to the models or types to Paul Hobcraft or Jeffrey Phillips. We in turn will re-publish the model as necessary under a Creative Commons License, so that anyone who cares can use it and adopt the innovation model. We want this to be open and a transparent process but we will retain copyright while allowing others to copy, distribute, and make some uses of their work as long as we are credited for the original creation.

These are collaborative work-in-progress to achieve a common position for understanding innovation

► Go to the Wiki on http://cirf.pbworks.com

Our intention behind these different models of Innovation


Goals/Purpose

• In the following set of slides we intend to outline an innovation model from the most “abstract” and philosophical perspective to the most tactical skills and processes you will need.

• We layer this because each successive layer of strategy, skills, approaches and processes uncovers new thinking that requires a deeper understanding for building and sustaining innovation.

• It sets about to resolve misunderstanding, it seeks to replaces myths with a practical, detailed understanding of innovation and all its ‘potential’ complexity.

• We provide a structured business architecture for innovation choice


Multiple Layers

• We propose a model for innovation that consists of multiple layers• All of these layers must be fully considered in a systematic way.• These layers are called:

– Strategic Needs– People, Skills & Culture– Processes & Platforms– Approach types

• We recommend working from the “outside-in” for best results


Strategic Needs

People, Skills & Culture

Approach Type

Processes & Platforms

The Multi-LayersBuilding an Innovation Business Architecture


Strategic Needs

• We start at the most primary layer- the strategic considerations. – At this level we concern ourselves with the strategic issues that must be in

place before innovation can be attempted successfully.– We focus on the key core capabilities and place them into context that must

all exist and ‘reside’ before innovation can be attempted successfully. This is the ‘decision point’ to clarify and identify these

• The considerations need to cover the critical issues of – Strategic Intent– The culture & climate- past, existing and future– The value creation needs– Resource allocation & ongoing funding– Communication actions– Dynamics & Intensity clarification


Strategic Needs

We move from the fundamentals to the critical enablers to make innovation happen. For example:

• Corporate Strategy– Where do we want to be as a company?– What role does innovation play in this vision?– What is our present status on innovation, what needs to change

• Enabling Innovation within the organization– What key core capabilities do we need?– How do we align them into the appropriate corporate context – What must exist and ‘reside’, what can be outsourced?


Screen & Rationalize

Identify Potential

The value of consistently mapping back to these four reference points is important to gain consistency and validation of return on innovation investment

Evaluate

Establish

The four orientation points are briefly explained

Existing Portfolio and

Capabilities

OrganizationalReadiness,

Motivation & Desire

Align Market & Customer

Environment

Understand markets and customer needs and aligning your products & services to meet these needs.

Understand existing competitors and new entrants to exploit gaps and white space opportunities

Establish corporate strategies and where innovation links

Establish and align the vision, mission, objectives, strategy and tactics for realization,

Clarify the desire and motivation of the organization to innovate.

Ensure that business leaders are prepared to innovate.

Align compensation and evaluation to innovation activity

Existing product and service portfolio and identified gaps resolution.

Existing capabilities and capacity.

Strategic Alignment to Vision & MOST

(Mission, Objectives, Strategies & Tactics)


Innovation Management Universal Need Environment

Strategic Intent

Innovation Funding

Communications

Strategic Leadership & Direction

Thinking through the Strategic and Organizational Issues

Culture & Climate

Customer needs / wants

Foresight, Scenarios Context & Visioning

Identify Potential Establish

Strategy

Screen & Rationalize Evaluate Skills

Likely new entrants and competitive challenges

Changing environmental conditions

(legal, regulatory, etc)

Clarify the Innovation Dynamics Needed

Value creation objectives

Considerations for Time

Resource Allocation & People Considerations

Capability & Competency Build

Training

Strategic Needs

Critical Strategic Questions and Considerations

Alignment & Orientation of Product & Services


Environment

Existing Portfolio and

Capabilities

Strategic Alignment to Vision & MOST

(Mission, Objectives, Strategies & Tactics)

OrganizationalReadiness.

Motivation & Desire

Capability gaps

Ability to deliver


Strategic & Organizational IssuesIf you move too quickly through this stage you will NEVER get the results you want.

Each of these strategic “considerations” is important and must be addressed prior tobuilding about any innovation effort.

• You need to have clear strategic goals and innovative strategies and communicate these effectively to provide direction and scope for the innovators.

• You must establish clear links between Strategic goals and innovations contribution

• This needs to be robust, well considered and well resourced

• You must account for the customer needs and market realities within this review

• You must understand your existing innovation activities, what they provide and where the limitations are so as to be clear on the gaps you need to address/ change.

If you proceed without addressing all the strategic consideration, your team will struggle by having a poorly understood strategic framework to work within


Strategy


Approach Types

Processes & PlatformsIncentives

Creativity

No fear of riskOpen communication

Trust



People, Culture, Skills & Structures to promote a winning solution

People are the “active ingredients” in innovation, they are the catalysts that turn novelty into real benefit.

• The pivotal role of people to act as innovation carriers- their networks and engagement, their collaboration skills, the way that their knowledge flows

• Developing a climate where people are openly encouraged to have consistent interactions encouraging their tacit knowledge to flow

• Seek to provide a clear understanding of how innovation itself is a potent competitive force that drives economic wealth, productivity and growth needs harnessing.

Innovation above all is a social process and not a technical one. Establishing the ‘sense of shared purpose’ in spirit, ideas, culture and innovation is a MUST


People, skills, competencies

Creativity Invention & Innovation

Culture & Climate forInnovation

Relationship Building

InnovationTechniques

TrainingReward &

Recognition

Capability Building

Identify Potential


People, Skills & Structures

Recruitingnew Skills Encouraging

Leadership & Knowledge

Thinking through the People, skills & competencies

Existing Portfolio and Capabilities

Strategic Alignment &

Validation

Operational Readiness,

Motivation & Desire


Environment

Establish

Strategy

Evaluate Skills


InnovationTechniques &

Training

Relationship & Trust Building

Capability & Capacity Building

Addressing the People,

Culture, Skills & Structure

Governance & Managing Risk

Communicating Listening & Feedback

Broad Leadership Facilitation

Value of networks, teams

and the individual

Building ‘thinking time’ into the

process

Accumulating Tacit Knowledge and putting it to

different use

Building that sense of

community purpose.

Encouraging Diversity &

Creative TensionChallenging the status quo and

inertia

Exposure to new

perspectives

Emotional Equity needs to be

forward focused

Internal markets for ideas, talent and resources

Depoliticize decision-making

and personal bias

Find new ways to ‘unleash’ human

imagination

Achieve a sense of identity and

passion

Buildingnew

Skills & habits

Encourage Creativity

Invention & Innovation

Culture & Climate forInnovation

Recruitingnew Skills

Relationship Building

Reward & Recognition

Encouraging Leadership & Knowledge

Capability Building

Dealing with Fear & Change

Strive to humanize the

process-people are the active

ingredient

Resolving Barriers & Constraints


Strategy


Approaches



InnovationPipeline

InformationGathering

Idea to Commericalisation

5 Focal Areas

LifecycleManagement

4 P‘s

Complete view


Processes & Platforms• Finally, you need a clear process that is…

– actively managed– able to deal with different approaches to and types of innovation– be sustainable and totally visible.

• In particular, the process needs to manage within the "4 Ps"– Pipeline– Platforms– Portfolio– Product Lifecyle Management


Providing Feedback

Generate Incubate Filter Evaluate Select Prototype

Platform, Pipeline & Portfolio ManagementRegular Innovation Development Program is Established

Synchronize Build Manage Monitor Measure

Process & Platforms

Strategic Considerations

People and Skills


Detailed Innovation Process

• The need for a consistent innovation process is composed of a number of steps or phases which need to be defined

• To be consistent you need to have a vigorous, consistent idea management process that moves through its different stages

• We “drill down” here as it is important to expose all of the underlying steps and assumptions. These need capturing, constantly evaluating and deciding upon to ‘kill or progress’


Providing Feedback

Generate Incubate Filter Evaluate Select Prototype

Platform, Pipeline & Portfolio Management

Synchronize Build Manage Monitor Measure

Generate Incubate Filter Evaluate Select PrototypeGenerate ideasabout a specificproblem or opportunity usingidea generationtechniques suchas brainstormingor a distributedcommunity

Capture the ideasin a public forum orapplicable application to allow team membersto comment on,review and rank ideas.Tag and categorizeideas for easy searching andfiltering.

Filter all ideas to find the ones thatare relevant toa specific need,challenge or opportunity

Using establishedtransparentcriteria, evaluateall ideas that address a specificchallenge or problem

Once the evaluationis complete, rankthe ideas that arerelevant to a problemor challenge and select the ideasaccording to theirranking, evaluation,ability to address theproblem or challenge.

Develop roughrapid prototypesthat demonstratethe main conceptsof the idea andgain feedbackfrom potentialcustomers

A Consistent Innovation Process Needs to Be In Place


The essential ‘4 P’s within the process

Portfolio management A portfolio tracks all of a firm’s existing products and concepts to identify where the firm is placing its investments and prioritize multiple competing objectives so as to align these behind the most effective strategy for the goal of finding value and optimal growth.

An innovation portfolio will indicate where the firm has its innovation investments and expose gaps or opportunities for new innovation efforts.

Pipeline managementMuch like a sales pipeline is made up of prospects, opportunities and finally closed deals; innovation requires an innovation pipeline which needs constant monitoring to ensure there is a systematic movement of ideas from generation to evaluation and selection.

The innovation pipeline must be constantly refreshed with new ideas, and each phase follows a type of “stage”/”gate” model requiring that the idea meet conditions or criteria for advancement

This needs to be systematic and sustainable in its application of process, evaluation and methodology.

Platform ManagementThis is the connecting point between strategic need and innovation activity where you establish broad strategic themes that are potentially more profitable

Product Lifecycle ManagementA Product Lifecycle Management software solution offers one ‘version of truth’ for all existing product iterations.

PLM can overcome potential isolated activities, islands of information and disconnected systems and poor cross-functional co-ordination and often a lack of innovation visibility for critical activity.


Finally within Process & Platforms

Stepping back and viewing the approach so far

We establish a more ‘holistic’ view of building an innovation business architecture and the four alignment points.


Approach TypeTo be discussed in next presentations


Environment


Validation

Existing Portfolio and Capabilities

Organizational Readiness,

Motivation & Desire

Identify Potential


Strategic Considerations


The Innovation Business Architecture Layered Process and the 4 Orientation Points

People , Skills & Culture

Establish

Strategy

Evaluate Skills


.

4.Go-to-market

execution

5. Enabling Infrastructure

Common Environment, Networking & Collaboration-Building Tools

3. Systematic Innovation Process

2. Front End


Validation


Environment

Existing Product & Service

Management

New idea Generation & Opportunity Identification

Identify Potential


1. Strategic Context

Desire & Motivation for innovation

Existing Capabilities & Skills

Strategies, Strategic Intent

Resources and funding

Trend Spotting

Scenario Planning

Product Development

Launch

Execution

Software Infrastructure

Scouting

Voice of Customer

Moving to the Mapping the 4 orientations within the 5 focal points (next deck).

Establish

Strategy

Evaluate Skills


Paul Hobcraft• Email :

[email protected]• Phone Number

+65 91 751 4350

Jeffrey Philips

• Email: [email protected]

• Phone Number+01 919-844-5644

For Europe, Africa, Middle East & Asia For North & South America

Contact Details Collaborative Innovation Reference Framework

►Go to the Wiki on http://cirf.pbworks.com

Documents

Www.agilityinnovation.com Collaborative Innovation Reference Framework The Strategic Layers The essential layers that support innovation