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Innovation is one of the key enablers for European enterprises to compete in global markets. The term ‘innovation’ is constantly used in speeches of managers, politicians, public administrators. However, in the large majority of cases, the term is used as a generic 'place holder', a sort of container whose actual content is left to the intuition. For this reason it is important to deeply elaborate, specifically on the notion of Enterprise Innovation, to better understand the essence and meaning of innovation. Innovation stems from a virtuous mix of intuition, creativity, and a solid background knowledge. Each innovation endeavour has its own characteristics, largely different from previous experiences. It falls in the category of ‘wicked problems’, i.e., problems difficult to solve because of incomplete, fuzzy, changing requirements. Nevertheless, there are recurring patterns and it is possible to conceive systematic methods, and supporting information systems, to promote and manage innovation avoiding the risk to close it in a ‘cage’, risking depressing the fundamental creativity and fantasy. This talk will present an innovative framework for enterprise innovation that includes a methodology and an innovation management platform which is based on an generic behavioural pattern (i.e., independent of the industrial sector), a strong knowledge orientation, and an innovation monitoring system funded on a number of Key Performance Indicators, to constantly keep the progress of the innovation project under control.
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©BIVEE PROJECT 2013 WP8 Update Geoff Ward March 2013 1
Innovating Enterprise Innovation
Michele Missikoff
1
Università Politecnica delle Marche
and CNR Lab for Enterprise Knowledge and Systems
Alpen Adria University, Klagenfurt, 15th May 2014
This work has been partially supported by the BIVEE European Project, Grant n. 285746
©BIVEE PROJECT 2013 WP8 Update Geoff Ward March 2013 2
Objectives of this talk
Do not convince you that
Innovation is important
Innovation is difficult, risky, often costly
Show that we need to change the way we carry on Innovation
Provide some clues where to go ...
Target: Complex organizations
Networked SMEs
Large, distributed enterprises
Articulated Public Institutions
Vision
To overcome the crisis, EU enterprises need a deep change
Introducing continuous improvement and
innovation to remain competitive in the globalised economy
Sustainable Innovation rather than expansive innovation
We need to put Knowledge in the center, to guarantee
Continuous alignment of Business needs and Enterprise Software Applications in ever changing enterprises
3
©BIVEE PROJECT 2013 WP8 Update Geoff Ward March 2013 4
What is Innovation?
“The act of introducing something new “ (TheFreeDictionary)
“The term innovation can be defined as something original and new that ‘breaks in to’ the market or into society.” (Wikipedia)
“Innovation is crucial to the continuing success of any organization” (Oxford Dictionary)
©BIVEE PROJECT 2013 WP8 Update Geoff Ward March 2013 5
Some quotations ... Innovation is a knowledge intensive
endeavour (BIVEE)
Knowledge is the fuel, but it achieves the miracle! The more you use it the more you
have it!! (BIVEE)
If I had 20 days to solve a problem, I would spend the first 19 to define it. (A. Einstein)
Summarising ... few key questions
Questions are more important than answers...
What are the key needs for manufacturing / service innovation today?
What are the main boosters / hindrances?
What is the interplay between human intelligence and supporting technologies?
Where is the border between open knowledge and new ideas protection?
What can we measure about innovation? Cost? Expected benefits? Chances of success?
What are the methods/tools already adopted today? What do you see in the future? 6
What is Business Innovation?
Business Innovation is a designed, managed sustainable transformation of some aspects of the enterprise (or the society, the city, etc.) aimed at a substantial change of:
• The nature/quality of delivery products (goods, services), improving customer satisfaction
• Production processes and workers satisfaction
• Cost reduction and/or revenue raise
• The Marketing Strategies / Scope 7
Business Innovation: Where?
• Products (goods / services) • Production / Admin processes • HR competencies, skills, capabilities • Organization models, with new delegation patterns • Enterprise information organization and flow • Markets and marketing styles • Customer relationships • Suppliers and partners strategies and management • Technology adoption, deployment, renewal
strategies and practice • Financial and control styles, methods, and tools • Quality of working life and ambient • Relationships with the territories, the people, the
environment, local cultures 8
Understanding Innovation
9
(Gre
g S
ate
ll, http
://ww
w.d
igita
ltonto
.com
)
Business Innovation: How?
push-mode and technology driven, when generated on the supply side;
pull-mode and demand driven, when requested by the market/demand side;
co-creation, when all the stakeholders cooperate together to generate product or process innovation.
Endogenous, when ideas come from within the Ecosystems
Exogenous, when ideas come from the rest of the World
10
Risks in innovation
11
Can we avoid? ... or at least minimise? ... or at least keep all the process under control?
Enabling Business Innovation • Create the right environment, working conditions
• Grassroots innovation (beyond Toyotism ...)
• Open innovation (but controlled), with systematic and ad-hoc relationships with
• universities , research centres, partners, suppliers and customers
• Facilitate info / knowledge / ideas circulation within and outside the enterprise
• Culture of cooperation (tools & rewarding system)
• Scouting Technology Market Excellence centres
• Observatories on opportunities, problems, threats, ... 12
Innovation New Knowledge
Knowledge about
• New ideas, reserch results, patents, ...
• enterprise and its organization
• competencies, skills, and capabilities
• problems and improvement opportunities
• products and services
• production processes, methods
• Technologies, systems, and resources
• Markets, clients, partners and competitors
13
©BIVEE PROJECT 2013 WP8 Update Geoff Ward March 2013 14
Business Innovation in Virtual
Enterprise Environment
Virtual Enterprise Environment Value Production Space
Virtual Innovation Factory Business Innovation Space
14
Innovating Innovation
Towards Open Innovation A systematic approach to Innovation, nurturing
creativity and ideas generation Innovation as intangible goods ‘Manufacturing’ approach to Innovation The need of new production/organization
models Manage the full Knowledge Cycle (including
Tacit Knowledge, see Nonaka) Virtual Innovation Factory (VIF), operating
in the Innovation space
15
BIVEE Philosophy Consolidating BIVEE Framework specifications
• Key elements: people, ideas, communication, collaboration, social behaviour, communities
• Full Value Chain: from innovation to production improvement
• Innovation as an iterative, goal-oriented, venture based on 4 Waves: Creativity, Feasibility, Prototyping, Engineering
• Monitoring & Assessment: integrated formal (KPIs) and informal (social & crowdsourcing) approaches
• Integration of Human (informal, document-based) & Computer (formal, semantics-based) Knowledge
16
People first, then business and technology
(http://www.thecontenteconomy.com/) 17
Enterprise Model 4 BusInnov
18
BUSSINESSinnovation
STRATEGYinnovation
MARKETINGinnovation
PRODUCTinnovation
SERVICEinnovation
PROCESSinnovation
TECHNOLOGYinnovation
ORGANIZATIONALinnovation
(Scource: BIVEE Deliverable D2.1)
©BIVEE PROJECT 2012 WP8 Update Geoff Ward 10 – 13 July 2012 19
Innovating Innovation
Business Innovation Reference Framework (BIRF): the
principles for Virtual Innovation Factory operations
Innovation as a new form of ubiquitous Semantic nurturing,
rather than ‘Knowledge Management’
Waves (rather than processes):
Creativity, Feasibility, Prototyping, Engineering
Innovation Monitoring Framework: I-KPIs & W4+ semantics:
What, Why, Who, When, Where, (How)
Focused Innovation Targets:
Goods, Services, Processes, Technologies
Goal oriented approach, instantiated in Documents
Semantically enriched Documents for knowledge sharing
Innovation-oriented Ontologies
BIVEE Tech Solutions
• A Virtual Enterprise Environment, to be integrated with existing Enterprise Software Applications (ESA)
• Distributed, collaborative, knowledge-intensive framework
• A Platform for networked, interoperable virtual/real enterprises
• To be used directly by Business Experts, pushing for disintermediation (wrt techies) in innovation KM
• Shared Semantic Whiteboard, to guarantee a single ‘ideas shopping’ point.
• Proactive subject-driven knowledge provisioning
• Innovation Observatory to push Open Innovation, Crowdsourcing, …
20
Virtual Innovation Factory
• Virtual Innovation Factory set up
– Definition of objectives:
a) Problem-driven, e.g., proposed by a customer
b) product-driven, e.g., proposed by staff experts
c) tech-driven, e.g., proposed by staff / external player
– Create a VIF with its Manager
– Create the Innovation teams: composition, organization, competencies & roles, etc.
– Acquire the material and financial resources
– Start the ad-hoc Collabrative Innovation Plan
21
©BIVEE PROJECT 2013 WP8 Update Geoff Ward March 2013 22
BIVEE Innovation Waves
1. Creativity: Ideas 2. Feasibility: Numbers
3. Prototyping: Tech viability 4. Engineering: Industrial viability
©BIVEE PROJECT 2013 WP8 Update Geoff Ward March 2013 23
In
A problem, coming from the field
A new technology, methodology
A new Market Need / Opportunity
Reports from previous experiences in the field, similar problems
Out
Proposed Idea; Sketch of a Solution
Innovation Project Approval (KPIs);
VIF Created
©BIVEE PROJECT 2013 WP8 Update Geoff Ward March 2013 24
VIF Start to work
Analysis of previous experiences
Enrich the sketch of solution
Technical and commercial feasibility
Feasibility KPI analysis
Preliminary tech design
Assessment and Go/NoGo decision
Needed resources and Budget consolidation
©BIVEE PROJECT 2013 WP8 Update Geoff Ward March 2013 25
Engineering team consults with suppliers and acquires the new components
alternatives are tested, searching also tests performed in other laboratories
The final prototype specs are produced
Prepare blue print & Test reports
KPI analyse for Go/NoGo decision
©BIVEE PROJECT 2013 WP8 Update Geoff Ward March 2013 26
Analyse prototype specs and test results
Perform cost analysis of part replacement
Production plans
Bill of Material
Business / Production Processes
Final Industrial Blueprint
Virtual Innovation Factory
27
SS Whiteboard
InnovationDiary
Doc Network
W1 W2 W3 W4
DocOnto DomOnto BusOnto
PerOnto
!
Idea
AROnto ProcOnto
Final Innov
Conclusions
The main ideas on a new approach for Innovation have been presented
Future innovation needs to be addressed as a Knowledge Management venture
But traditional KM is not suited for the purpose We need to revisiting the existing KM
solutions Ontologies and Semantic Wikis are
promising tools, together with social media and cooperation tools (in Open Innovation)
But human intelligence and creativity remains the key pillar
28
©BIVEE PROJECT 2013 WP8 Update Geoff Ward March 2013 29
Engineering (It)
BIBA (De)
BOC (At)
ATOS (Es)
CNR (It)
UnivPM (It)
TAL (UK)
SRDC (Tr)
AIDIMA (Es)
Loccioni - GI (It)
Credits • Large part of the content of this talk has been elaborated within the European Project BIVEE: Business Innovation in Virtual Enterprise Environments.
• BIVEE is a 3 years project (ends Dec 2014) with 4.3 M€ budget and 10 partners :
Proceedings: http://ceur-ws.org/Vol-864/
©BIVEE PROJECT 2013 WP8 Update Geoff Ward March 2013 30
Questions ?
Comments?