IT Enabling Innovation Across The Corporate Enterprise

How IT can Enable Innovation across the Corporate Enterprise

Author: Richard PlattFormer Intel Corporate Innovation Program Manager

10/23/2007 AUTHOR: RICHARD PLATT | ALL RIGHTS RESERVED 2

Difference between Surviving and Thriving

“Survivors” know how to consistently find growth opportunities and deliver value to their customers & stakeholders

“Non-survivors” compete on previous business models that miss adding value in increasing degrees

“Thrivers” beyond the above survivor traits, adapt using tools and speed to achieve gains

Evolutionary and Darwinian – Survival of Fittest, Fastest and most Cunning

Change and the Rate of Change are the Evolutionary drivers


Recent Comments from CIO’s about IT and Innovation

“Technology innovations must be a partnership between IT, marketing, sales, product development and other business stakeholders. To think that meaningful tech innovation can thrive within pockets of an IT organization is naïve.”

-- Leigh Davis (electric utility Southern Co.) -- Ben Holder (textile manufacturer Unifi Inc) -- Jerry Johnson (Pacific Northwest National Laboratory)

www.informationweek.com reported in the CIO’s uncensored blog (8/2/2007)

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Source: www.informationweek.com reported in the CIO’s uncensored blog (8/2/2007) re: a panel discussion w/ a # of CIO’s at the IW 500 conference in Tucson AZ where these CIO’s were making comments regarding cultivating the culture of innovation


Unmet Challenge: Cooperative Hunting

IT Metrics are subordinate to the BU’s goals for innovation

Insure what you deliver is what BU’s wantMap what your IT investments deliver in the way of enabling what wasn’t present before the tools, network, etc was in place.

Use BU metrics for innovation as a starting Use BU metrics for innovation as a starting point and derive the IT metrics from those. point and derive the IT metrics from those. (reduction in innovation cycle time)(reduction in innovation cycle time)

Animals can do it why can’t humansCooperative hunting between Groupers and Groupers and Moray EelsMoray EelsHumans and Orca’s hunting Baleen Whales in New South Wales, Australia

Can IT become a “Profit Center”? YESBMW Manufacturing story related to Author in 2000

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Orcas: Is a versatile, deadly predator, eating fish, turtles, birds, seals, sharks and even other juvenile and small cetaceans. This puts the orca at the pinnacle of the marine food chain. The orca also attacks whales, in particular gray whales. The orca (Killer whale) is the largest member of the oceanic dolphin family Delphinidae. They are traditionally referred to as blackfish, a group including pilot whales, pigmy and false killer whales and melon headed whales. It is the second-most widely distributed mammal on Earth (after humans) and is found in all the world's oceans, from the frigid arctic regions to warm, tropical seas. The name "killer whale" reflects the animal's reputation as a magnificent and fearsome sea mammal that goes as far back as Pliny the Elder's description of the species. Today it is recognized that the orca is a dolphin rather than a whale and that it is not a danger to humans. Aside from a boy who was charged (but not grabbed) while swimming in a bay in Alaska, there have been no confirmed attacks on humans.

http://news.mongabay.com/2006/1204-moray.html

http://news.mongabay.com/2006/1204-moray.html


Analogous ExamplesFraunhoffer Institute (Germany)– Network of German Universities and Dept.

heads collaborating and using PhD students to work on problems brought to the institute for $.

Hired guns for technical problem solving

– Fraunhoffer is the current owner of MP3 technology and who Apple and others now have to pay big $$$ for the IP

IBM (USA)– Went from a semiconductor and main frame

manufacturer to provider of IP and consulting services.

– Currently far more profitable with less capital than before the change

KEY POINT: They Re-Evaluated their resources and began using them in new ways to create new business models and revenue


How do you do this?

1. Use a Vision + Fear as a motivator the same way as BMW senior management did with its factories

2. Take Stock of ALL of your BU and operational partners, including sales and marketing

3. Determine IT Core Competencies and your resources

4. Now Find Key Innovation Elements that are not being served by the current network, tools, etc…these are OPPORTUNITIES

5. Team up and Pilot with 1-2 BU’s to address their needs and to find revenue opportunities for IT to get $$ into the enterprise

6. Refine and Reiterate across other BU’s, expanding the capabilities. Show them that you provide value.

“Put your people on dangerous ground”

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Putting Your People on Dangerous Ground: e.g. Put a goal in place that you will close the IT shop down and outsource all of their jobs unless they make it happen. This technique has been repeatedly observed used successfully over history by many military commanders motivating and inspiring their troops to do battle: From Queen Elizabeth I -- Sun Tzu -- George S. Patton to name but a few military commanders, there are many of course in the business world that have done this.


Repeatable and Reliable Innovation consists of…

Innovation Strategy

Innovation Methods /

ToolsInnovation

Metrics

Innovation Risk Analysis

& Mgmt

InnovationManagement

InnovationInfrastructure

InnovationIncentives

Innovation Training

Rapid Prototyping /

New Prod. Dev Skills

MultipleElements

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Note: Derived from analyzing / benchmarking multiple effective corporate innovation and then implementing and finding gaps to capabilities and to capitalize on them


Requirements Driven Approach: Management Tasks

Idea Management: development of organization-specific methods for managing idea generation processes.

Product Development Management: realization of ideas in form of commercial products and technologies.

Environmental Innovation Management: constant monitoring “scanning” of environment to forecast future innovations and threats.

Enterprise-Wide "Outside-the-box" Innovation Management: creation of organizational culture that stimulates creative thinking

Innovation Life Cycle Management: coordinating entire innovation life cycle from envisioning stage through measuring results and rewarding individual innovators or innovation workgroups

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Source: “Skills and Tools to Support Productivity in Creative Work” by Valeri Souchkov presented at the Club of Amsterdam: Summit for the Future, January 26 – 28, 2005


Key Elements for Innovation Infrastructure

Senior Manager Involvement and Support

Customized training for

all employees

Clearly defined criteria / goals for

adoption

Tools to provide efficient, effective decision making

InfrastructureSupporting Innovation

Strategic linkto corporateobjectives

Innov. Manager &Support Team

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Keys for IT: Infrastructure Supporting Innovation ; Tools for efficient and effective decision making; User defined – conduct pilot w/ 1-2 BU’s refine and iterate based on user feedback. Conduct a user based requirements document to build the basis for IT infrastructure network and functionality needed. Then look for tools that you already have that perform that, identify gaps and close on them. Source: “Skills and Tools to Support Productivity in Creative Work” by Valeri Souchkov presented at the Club of Amsterdam: Summit for the Future, January 26 – 28, 2005


Key Requirements for a Supportive Innovation

InfrastructureSupportive

Culture requires training particularly

for ALL levels of enterprise

Align the culture

Measure performance

along the journey

Capture the key learning’s

and share them

Rewards and Recognition

ProgramSupporting areas of

Innovation

Tools and process for Evaluating concepts (Rapid Prototyping)

Engineers and Management

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Again here we want to be conducting a user based requirements document to build the basis for the IT innovation infrastructure network and functionality needed. Then look for tools that you already have that perform that, identify gaps and close on them with new tools. RECOMMENDATION: Refine and iterate, best recommendation start w/ 1-2 BU’s and work with them to create a best in class system, customized to their needs. Source: “Skills and Tools to Support Productivity in Creative Work” by Valeri Souchkov presented at the Club of Amsterdam: Summit for the Future, January 26 – 28, 2005


Minimizing Risk and Shortening Life Cycles

Rapid proto-typing does a # of things:Minimizes Risk of UncertaintyShortens Time-To-Sale, Time-To-Market, Innovation Life Cycle and NPD Life CycleProvides ability to Rapidly Innovate concepts and do it more frequently than competitors

Examples: Minimizing Risk of Uncertainty in Design:“Fly Through” Tool (Boeing – 777 Program)

CAD tool checks form, fit and function of parts PRIOR to manufacturing and assembly

Valor® DFM Tool (Intel – Complex Servers)CAD tool for manufacturing designs assessing compatibility with mfg constraints and Design For Mfg Rule adherence

Spreadsheets (Wall Street)Spreadsheets enabled asking questions that firms were unable to ask themselves before.

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Wall Street example was excerpted from Michael Schrage’s book “Serious Play” – exceptional book on rapid proto-typing and the value that IT can get from deeply understanding the needs of their users, customers and stakeholders.


Importance of Rapid Prototyping

VERY STRONG RECOMMENDATION:“Serious Play: How The Worlds Best

Companies Simulate to Innovate”by Michael Schrage

– Exceptional reference on the Value of Rapid Prototyping and How to Manage it

Virtual prototype models cost less than physical prototypes and can be created in a fraction of the time

RULE: more prototypes and prototyping cycles / unit time = more technically polished final product

“Quick and Dirty” proto-types turn clients into partners

Prototypes save $$ over the length of a project, CRITICAL tool set to have widely used across an enterprise

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Michael’s book should be a MUST read for all IT, Design & Engineering Managers. All aspects of an enterprise, can gain from deeply understanding the needs of their users, customers and stakeholders through prototyping. There are organizational and cultural issues with prototyping and this is where Michael’s book is invaluable in pointing out the issues and how to address them.


IT: Enabling PartnersKnowledge overflow problemKnowledge search problem“Lost” knowledge problemMiscommunication problem“Invisibility” problem: where we are, what was done, what should be done with respect to a particular taskLack of Technology IntelligenceLack of metrics to measure success of innovation over the whole innovation life-cycle


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Note: These are challenge areas that will pop up over time. Concerted effort to close on these is critical to long term effectiveness and efficiency. These are also areas for opportunity finding.


IT support for Innovation

Core TeamCore Team

ExpertsExperts

Decision MakersDecision Makers

SuppliersSuppliers

RetailersRetailers

Communication Environment

Enterprise IT infrastructure

Supporting Methods & Tools

ExternalKnowledge Repository

InternalKnowledge Repository

Process Manager

Specialists

Data & KnowledgeBases

External Sources

SituationMapping

IdeaManagement

…

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Sustainable Innovation System

Vision & Strategy for Innovation

Processes, Practices, Tools, Methods & Systems

CultureSupporting Innovation

Working Environment

People

Top Management

Team Leading Innovation

X-Functional Teams Mapping Innovation Path

Empowered Employees Driving Innovation

TOC / Lean / 6 Ω

Analysis + High ROI

projects + Developing IP on

Equipment, Tooling & Materials

VP/GM, Finance, Factory Management & Champions + site level experts

Tech MRC + Site Innv. WG + 1st

& 2nd

level manager support.

Surveys and metrics implemented

Finance + Q&R + Adv & Basic trained engineers + Legal

Professionalized instructors w/ support infrastructure. Real problems in training + annual review

Biz processes that drive / enable innovation.

Screening for advanced students, Budget set aside for DOE’s & proto-types and for legal to submit more patents for a specific group

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Source: Adapted from Ten3 Business Coach Training materials. www.1000ventures.com


Conclusions: 2 Things for IT To Do

1. Support & Enable your BU’s and Ops partners– Combining knowledge and

process management solve problems of knowledge overflow, as well as external/internal communications

2. Develop Profit Center focus and mentality in IT

RECOMMENDATION: Build infrastructure architecture based on requirements, inputs and feedback from actual users


BACKUP


Corporate Innovation SystemCorporate Innovation System

Process

Leadership &Management

StrategicAlignment

Organization& PeopleMetrics

CULTURE

5+1 Core Elements – “Innovation by Design”

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Note: High Level overview of what is needed Source: From Ten3 Business Coach Training materials. www.1000ventures.com. Source: -- Originally Adapted from: "Relentless Growth", Christopher Meyer and “Innovation by Design”, Gerard H. Gaynor


Innovative Organization Challenges

KEY MESSAGE: Innovation Centers do NOT have a track record of success in geographically dispersed groups

Community of Practice,

Shared Processes

& BKM’s$

Innovation Infrastructure

Strategy, & Metrics

Read:

“Can Corporate Innovation Champions Survive?”

http://pubs.acs.org/subscribe/journals/ci/31/i11/html/11hipple.html

Innovation programs won’t be successful, UNLESS

there is a strategy focusing innovation activities

Skill DevelopmentIn Innovation Tools & Methods

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Innovation programs won’t be successful, UNLESS there is a strategy focusing innovation activities. Build and enable the experience in innovation as a core competency Emphasis is on a paradigm change, not a place, the people as means to the revenue stream

http://pubs.acs.org/subscribe/journals/ci/31/i11/html/11hipple.html


Infrastructure for Innovation

Core Innovation Team:Core Innovation Team: Methods, techniques

and tools for Systematic Innovation, Consulting & Training

Platform

Internal and External Knowledge Sources: Databases, Science &

Technology companies Consulting companies,

R&D centers, Universities, etc.

Management: Management: Corporate Innovation Manager

InnovationInfrastructure

IT Support for Life-Cycle Innovation Management:

IT platform for knowledge gathering, storage and exchange; communication, knowledge and process management; decision making; bridge

to other infrastructure components

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Application AreasSolve a specific

immediate problem

SYSTEMATIC SYSTEMATIC INNOVATION INNOVATION

Map, analyze, decompose and structure complex

problem situations

Innovatively optimize

a technology/ product

Forecast future technology/product

evolution

Solve business & management

conflicts

Generate new business concepts and

optimize existing business systems

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Notes for IT Managers: This requires the involvement of the Corporate Innovation Manager to align on all of this. Challenging yes, impossible NO ! Source: “Skills and Tools to Support Productivity in Creative Work” by Valeri Souchkov presented at the Club of Amsterdam: Summit for the Future, January 26 – 28, 2005

Documents

IT Enabling Innovation Across The Corporate Enterprise