The Leading Authority on Innovation Management. A Framework to manage Innovation

A Global, Virtual, Industry-University Research Center,

Located at NC State University

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The Center for Innovation

Management Studies (CIMS)

The Leading Authority on

Innovation Management

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CIMS Mission =

Industry Solutions

•Research business problems

•Convert findings:

Processes

Tools

Information

Assist firms who are in

need of improving their

capacity to manage

innovation

•Listen to companies

APPROACH

Is your company’s growth

propelled by INNOVATION?

INNOVATION IS EMBRACED BEYOND R&D.

INNOVATION IS MANAGED ACROSSED ALL FUNCTIONS.

INNOVATION IS TAUGHT AT ALL LEVELS.

INNOVATION IS MEASURED ON A REGULAR BASIS.

The leading authority on innovation management.

The Center for Innovation Management Studies (CIMS) is the nation's leading

authority for innovation management. Over 31+ years of research and proven tools for how innovation can be learned, managed and measured in your company.

See why some of the largest companies in the world are CIMS members.

How does your company measure up?

Find out be contacting CIMS to take the

FREE assessment.

On the web: cims.ncsu.edu

Call us: 919.513.0166

By email: [email protected]

A Framework to

Manage Innovation (A Quick Review – For More Information, see CIMS – ISSIP

Webinar from September 16th)

CIMS Innovation

Management Framework

“The Cube”

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NEWS FLASH: Innovation Can Be…

Some feel ‘Innovation’ is just an idea and that it cannot actually be achieved, but is rather a stroke of luck.

Stated differently,

‘It’s a pie in the sky ideal…’

Taught Learned

Practiced Measured

And…

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Innovation

can be

Managed!

But Managing innovation isn’t easy, it takes work and

dedication and a fundamental understanding of

what it is that one is managing.

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Enter the CIMS IM Framework

Management Dimensions:

• Strategy

• Organization & Culture

• Process

• Techniques & Tools

• Metrics

Core Competences:

• Idea Management

• Market Management

• Portfolio Management

• Platform Management

• Project Management

Levels:

• Firm

• Industry

• Macro-environment

Levels: Areas which innovation takes place. CIMS primary research focus has historically been at the ‘Firm’ Level.

Core Competences: Competences are NOT processes. They are the basic capabilities of innovation. It is management’s job to ensure an organization

learn and master each of these.

Management Dimensions: Management activities required to build strong, durable innovation management capabilities. Each dimension cross-cuts

each IM Competence.

Note: Competences & Dimensions, when considered holistically, provide a

complete and integrated system for helping organizations get results. Improve

and Manage their Innovation.

The IMMA

Innovation Management

Maturity Assessment

From the Foundation of the “Cube”,

a Capability Maturity Model

was Developed

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Quick Facts: CIMS IMMA • Provides an education of ‘What is Innovation Management’, enables firm’s

innovation strategy to be communicated and shared across entire

organization

• Multiple CIMS members are committed to an annual review using the IMMA

• IMMA is available to and has been used by non-members for a fee

• Initial results provided via graphical heat map display

• Participation To date:

70+ firms & divisions with global representation

10,000+ individual responses captured

Both general and industry-sector customized tool versions available

Robust demographic capabilities

Delivered in numerous languages

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Maturity Models Defined

• A maturity model can be viewed as a set of structured levels that

describe how well the behaviors, practices and processes of an

organization can reliably and sustainably produce required outcomes.

OR

• A maturity model can be used as a benchmark for comparison and as

an aid to understanding.

In the case of the CMM, for example, the basis for comparison would be the organizations' software

development processes.

For additional information: http://en.wikipedia.org/wiki/Capability_Maturity_Model#Overview

http://en.wikipedia.org/wiki/Capability_Maturity_Model#Overview

http://en.wikipedia.org/wiki/Capability_Maturity_Model#Overview

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Maturity Model Definitions

Level 1

Ad Hoc

Level 2 Defined

Level 3 Managed

Level 4

Leveraged

Level 5

Optimized

Represents the initial state. This results from organizations having no concerted focus on innovation

When the organization makes innovation a strategic imperative and resources are dedicated

to improving the firm’s practice of innovation management

When managers’ actions reinforce the desired new behavior and their goal is to

institutionalize the new innovation business model

When synergies occur. The company seeks the input of people and

ideas outside the boundary of the firm

When the new innovation model is fully internalized;

business results are repeatable and predictable

*Based on Carnegie Mellon Maturity Model

Five levels of maturity separate ‘Ad hoc’ companies from those that are ‘Optimized’:

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Ad Hoc

• Ideas about new breakthrough products and services is thought to be the domain of R&D. When employees are encouraged to submit their

ideas, they often do not receive relief from their ‘day jobs’ to pursue them.

• Project ‘champions’ are often required to persevere and drive promising ideas to commercialization.

• Employees may be cynical and question the importance management places on innovation.

Defined

• The R&D portfolio is segmented into ‘Phases’ (e.g. Opportunity field and business cases) to ensure adequate investments and talents, are

allocated to the early identification and maturation of new, promising technologies.

• Ideas are sought that address the full range of strategic issues, such as sustainability, services and solutions, etc.

• Employees are presented with idea generation tools and encouraged to formally submit ideas.

Managed

• Management presides over the organization’s ‘innovation board’ (e.g. IM Team, Portfolio Team, Steering Committee); new ideas are

systematically reviewed and employees provided ‘space’ (time and resources) to develop their ideas (before entering the formal project

development process).

• Cross-functional project teams (e.g. R&D, Manufacturing, Sales & Marketing, Business Development, Finance, etc.), using standard decision

support tools, evaluate the commercial potential of the idea before substantial investments of time and capital are made.

Leveraged

• The organization realizes that breakthrough ideas typically come from outside the company; it openly invites key business partners, suppliers,

and academics to participate in the innovation process; organization actively ‘in licenses’ novel new technologies to complement its existing

pipeline.

• Creative and flexible IP policies are employed to motivate open and collaborative innovation.

• Management challenges this ‘extended’ organization with the toughest business problems facing the organization; people are recognized for

ideas leading to their solution.

Optimized

• The organization is ‘ambidextrous’. Separate and distinct idea management capabilities - i.e. with different project sponsors, financial metrics,

and risk management techniques - are established at the ‘front end’ of the organization’s innovation model to manage incremental and

radical ideas.

• A formal Alliance Management System is in place; all associates are treated as peers.

Idea Management Idea Management is the ability of a firm to effectively identify, assimilate, and qualify information regarding new technologies, or ideas, that can lead to highly differentiated, breakthrough products and services.

Activities Include: Boundary Spanning, Technology Scanning and Evaluation, Applied Research, Collaboration with Early Adopters/Scientific Centers, etc. Idea Management begins to answer the question of competitive advantage by simultaneously examining technology and market factors. Ideas about possible market opportunities made feasible by new technologies is often the point where innovation begins.

CIMS Description of Core Competence: Idea Management

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Heat Map Results

are calculated using

Mathematical Mode

--- The MOST popular

response.

How the heat map is calculated and understanding

the significance of the colors

Calculating a cell’s color:

• The 1st number in each cell

represents the level of maturity for

that specific dimension/row

• The 2nd number in the cell

represents the level of maturity for

that specific

competency/column

• Add the two numbers together to

get the total ‘color’ along the

color gradient

Example:

Strategy/Idea Management 1, 2

Count 3 spaces along gradient to

reach the color depicted within the

heat map

1 2 3 4 5 6 7 8 9 10

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How to interpret MMA results

Common IM patterns:

• “Root Cause can be elusive”

• “Confusing activity for results”

• “Perceptions are often

skewed”

Going deeper into the cube…

“The best thing about the IMMA is it provides the organization with

a common language about how to manage innovation” Professor Richard Kouri

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“We have a portfolio management problem!”

• When we look at our portfolio of projects they are all

incremental innovations – there are no true winners!

• Top management is losing faith in us; they tell us “quick, do

this project” – but we never stop any projects.

• It seems like we are working harder than ever…

• We think they are pursuing an acquisition to immediately

shore up our pipeline

A. Root cause of IM problems can be elusive

Case study #1

Symptoms:

IM Diagnostic > Why companies struggle

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“Ship without a rudder”

• Little or no market orientation

• No strategic planning

• Portfolio Management and Org &

Culture suffer as a result

• Employees watch how senior management allocate resources

A. Root cause of IM problems can be elusive

Case study #1

Facts:


One of many common themes CIMS sees in IMMA results

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“We have a time-to-market problem!”

• Decisions, when made, take too long

• We seem to always be behind our competitors

• By the time we get our product/service launched all the

profits have been made and we are left to compete on

price

• Our employees are really disheartened; they read the trade

press – some of them are leaving and going to smaller

companies

Case study #2

Symptoms:

B. Strengths sometimes hide a gaping hole


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“One trick pony”

• Caused by a breakdown in Platform

Management and Strategy

• Everything is a “one off”

• Ability to quickly address niche market

cells is severely limited.

• Very costly and inefficient business

model

• Impacts Organization & Culture (of

course, everything does!)

Case study #2

Facts:

B. Strengths sometimes hide a gaping hole



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“Our products don’t excite our new customers!”

• Work is no fun anymore; its not the company I remember

• I really don’t know what our strategy is?

• Management seems averse to taking any risk

• Heavy focus on making quarterly results – and not much

else

• Our products and services are just “Me too”

C. Some factors count more than others

Case study #3

Symptoms:


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“Stuck in Incrementalism”

• No capability… no will(?) to identify

and develop ideas

• Organization lacks an entrepreneurial

spirit and drive

• Combined with no strategy and a

weak / non-existent Idea

Management capability can be life

threatening

Facts:



C. Some factors count more than others

Case study #3

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D. Innovation must be led from the top

General rule #1

• Only top management can set

strategy, allocate resources and affect

the culture of the organization through

their actions

• Its middle management’s job to amplify on these directions and put

them into operation

Facts:

“Top management sweet spot”


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E. Don’t confuse activity with results

• Scorecard is dominated by 2’s

(“Defined” level of maturity)

• Organization may have hired

consultants; done some initial

benchmarking; even documented

their “to be” process”…

• Until all the competencies are

“Managed” (Level 3 maturity) there

can be no change in performance

Facts:

General rule #2 “Wake up call!”


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F. Caution: Perceptions are often skewed

“Rose-colored glasses”

• “We’re OK!”; [you are not OK?]

• Often the response given by:

• Senior Management

• ‘Longer tenured’ people

• The R&D Function!

• Very common – why taking demographic ‘slices’ is important

before launching any improvement program

Facts:

General rule #3


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“The Tool” is not just a

diagnostic, but also a

roadmap for remedy!

From a diagnostic tool to a…

Roadmap for Remedy!

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1

Ad hoc

Ideas about new breakthrough products and services is thought to be the domain of R&D. When employees are

encouraged to submit their ideas, they often do not receive relief from their ‘day jobs’ to pursue them.

Project ‘champions’ are often required to persevere and drive promising ideas to commercialization.

Employees may be cynical and question the importance management places on innovation.

2

Defined

The R&D portfolio is segmented into ‘horizons’ (e.g.H1,H2, and H3) to ensure adequate investments and talents, are

allocated to the early identification and maturation of new, promising technologies.

Ideas are sought that address the full range of strategic issues, such as sustainability, services and solutions, etc.

Employees are presented with idea generation tools and encouraged to formally submit ideas.

3

Managed

Management presides over the organization’s ‘innovation board’; new ideas are systematically reviewed and

employees provided ‘space’ (time and resources) to develop their ideas (before entering the formal project

development process).

Cross-functional project teams (e.g. R&D, Manufacturing, Sales & Marketing, Business Development, Finance, etc.), using

standard decision support tools, evaluate the commercial potential of the idea before substantial investments of time

and capital are made.

4

Leveraged

The organization realizes that breakthrough ideas typically come from outside the company; it openly invites key business

partners, suppliers, and academics to participate in the innovation process; organization actively ‘in licenses’ novel new

technologies to complement its existing pipeline.

Creative and flexible IP policies are employed to motivate open and collaborative innovation.

Management challenges this ‘extended’ organization with the toughest business problems facing the organization;

people are recognized for ideas leading to their solution.

5

Optimized

The organization is ‘ambidextrous’. Separate and distinct idea management capabilities - i.e. with different project

sponsors, financial metrics, and risk management techniques - are established at the ‘front end’ of the organization’s

innovation model to manage incremental and radical ideas.

A formal Alliance Management System is in place; all associates are treated as peers.

Competence: Idea Management

TODAY

2015 TARGET

GOAL

Actions:

2016 TARGET

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Just a Few Firms Who Have Used IMMA

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CIMS IMMA and VIQ used in the

Kelly Services Innovation Journey

http://cims.ncsu.edu/wp-content/uploads/2015/01/Kelly_CIMS-Innovation-White-Paper.pdf










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Articles on the IMMA found

in the CIMS IMR Newsletter

• Innovation Officers: Let CIMS Help You

Shape Your Firm’s Strategy (Spring 2012)

• Driving Culture Change at BASF (Spring

2012)

• Updating Our Tools for Competing in the

Information Age (Spring 2011)

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Join Us… CIMS Conference: Open Innovation - Revisited

October 26th & 27th The Frontier @ RTP Keynote by Dr. Terri Griffith, Santa Clara University and one of Silicon Valley’s top 100 women! Griffith’s

talk is titled; Lead by Letting Go: Are 20th Century Constraints Holding Open Innovation Back? Additional presenters from Industry, IAIOP, NC State University’s Poole College of Management and College of Design, plus more! Complete Details: cims.ncsu.edu/events

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Apply the CIMS IM Framework and

check out the CIMS IMMA at the

same time!

• Go to: http://cimscsa.com

• Username: ISSIP2015 (case sensitive)

• Password: cims-issip (case sensitive)

• Enter Captcha Code Provided

If you would like to further explore the IMMA, we will leave the assessment open through November 2015.

http://cimscsa.com/

Presentations & Public Speaking

The Leading Authority on Innovation Management. A Framework to manage Innovation