1
Delivering Successful Innovation depends on Diversity
CIFS, Copenhagen27th October, 2010
Tina [email protected] that Matters
IBM Global Technology Services – Innovation Team
2
Agenda Items
Introduction Diversity is crucial IBM innovation programmes – used with clients Repeatable approaches to innovation Case studies and examples
Innovation that Matters
IBM Global Technology Services – Innovation Team
3
“Today, innovation is about much more than new products. It is about reinventing business processes and building entirely
new markets that meet untapped customer needs.
Most important, as the Internet and globalization widen the pool of new ideas, it's about selecting and executing the
right ideas and bringing them to market in record time.”
IBM Global Technology Services – Innovation Team
4
Reviewing the top-ten hallmarks of innovative companies
1. Active Flow of Ideas2. Excel in product innovation3. Developing in services innovation4. Embrace business model innovation5. Extensive external collaboration6. Balanced risk taking and management trust
7. Better integrate business and technology8. Innovation metrics/incentives and process9. People take responsibility for implementing
their own ideas10. Leading from the top
80%
IBM Global Technology Services – Innovation Team
5
Different Types of Innovation (scope)
Pragmatic / Tactical Strategic
Business
Infrastructure
Technology
Process
DeliveryInnovations
Business ModelInnovations
Process Improvement
InfrastructureInnovations
DeployNew Architectures
New products or solutions for the client
COST REDUCTION OPPORTUNITIES
CommercialInnovationsOperational
Innovations
Exploit new industry / business opportunities
TransformationActivities
LegacyTransformation
Blue = Opportunity for Revenue Generation
IBM Global Technology Services – Innovation Team
6
CEOs see even more potential with informed and collaborative customers and are rapidly increasing their investment there
Investment* past 3years
Investment* next 3years
Rise of the informed and collaborative customer
“We must redefine our value proposition to customers. Information and advisory content are becoming even more valuable than traditional drivers.”H. Edward Hanway, Chairman & CEO, CIGNA Corp.
“The rise of the informed and knowing consumer will continue to have an impact regarding our go-to-market priorities. We must know how to leverage new media. We've been surprised by the impact that just a few consumers can have with their blog entries.”Rob Hurlbut, CEO, Attune Foods
22%INCREASE
16.7%
20.4%
No impact 14%
Positive impact 76%
Negative impact 10%
IBM Global Technology Services – Innovation Team
7
Sources of New Ideas and Innovation
Academia
Associations, trade groups, conference boards
Competitors
Consultants
Customers
Business partners
0515253545% 45%3515 2550
Internet, blogs,bulletin boards
Other
R&D (internal)
Sales or service units
Employees(general population)
Think tanks
External Internal
IBM Global Technology Services – Innovation Team
9
We have found that clients have a variety of business needs that drive innovation…
We want to implement the latest Remote Collaboration tools –
but we also need to make sure we can use them well and get
the benefits from them…
We want to make our processes less costly, more customer
focused, more responsive, but that requires innovative
behaviours through the whole organisation…
We want to exploit the potential for innovation in our workforce, but
we need to know how to direct this potential,
structure it, encourage, reward it
and enable it…
We’re a retailer developing an online sales channel
for the first time
We’re a distributor building a global supply chain
We’re a Pharmaceutical company needing to drive
both innovation and speed-to-market
There are numerous ways businesses choose
to innovate
… innovation knows no boundaries! Innovation for one client can be business as usual for another
IBM Global Technology Services – Innovation Team
10
…and therefore require a variety of tools and techniques to define and implement ideas
Leadership Developmentfor innovation - top-down
behaviour modelling
Performance Managementto incentivise
innovation
Process & governance design
for innovation management
External collaborationProcesses & online tools
Internal cross-silo collaborationProcesses & online tools
Communities of PracticeProcesses & online tools
Talent management to get the most out of
great innovators
Coaching for Excellence method, for
simplified, customer aligned operations
Better Change method, for rapid adaptation
Ideas generation eventsFacilitated online “jamming”
Scenario envisioning method, to plan
effectively in a complex environment
We use a number of tools and techniques internally
and with clients
Business Model Innovation to
streamline/adapt the organisation
IBM Global Technology Services – Innovation Team
11
Innovation Opportunities
Product, Service &
MarketInnovation
Operations Innovation
Business Model
Innovation InnovationAgenda
3. Underlying Enablers• Building the underlying
capabilities that support innovation – across all innovation types
2. Types of Innovation• Broad set of innovation types
that require different capabilities, processes and measurements to succeed
1. Innovation Agenda• Leveraging Insight to set the
strategic innovation agenda• Leading and managing the
innovation mix
IBM Global Technology Services – Innovation Team
12
Benefits of adopting new technology early
£
% of companies using the
technology
ObsoleteStandardAcceptedLeading Edge
Pioneer
Benefit
Cost
Technology Maturity
£
% of companies using the
technology
ObsoleteStandardAcceptedLeading Edge
Pioneer
Benefit
Cost
Technology Maturity
IBM Global Technology Services – Innovation Team
14
It is important to make time for other people’s ideas …
No! I can’t be bothered to see
some crazy innovation. We’ve got a
battle to fight!
IBM Global Technology Services – Innovation Team
15
Agenda Items
Introduction Diversity is crucial IBM innovation programmes – used with clients Repeatable approaches to innovation Case studies and examples
Innovation that Matters
IBM Global Technology Services – Innovation Team
16
It’s all about People …
IBM Global Technology Services – Innovation Team
17 17
Get a different perspective
Collaboration and Diversity within Teams
is important here
IBM Global Technology Services – Innovation Team
18
Demographics and the Digital Divide
81% of the business population age 34 or younger are gamers 56 million are old enough to be employees 7 million are already managers in the current workforce
Sources: Merrill Lynch 1999, Beck and Wade, Got Game., Prensky, Digital Game Based Learning
The new generation is huge, 90 million people in the US alone. Already there are more of them around than there are
baby boomers. Beck and Wade
The new generation is huge, 90 million people in the US alone. Already there are more of them around than there are
baby boomers. Beck and Wade
Digital ImmigrantsDigital Natives
IBM Global Technology Services – Innovation Team
19
Virtual World, Real Leaders
"If you want to see what business leadership may look like in three to five years, look at what’s happening in online games."— Byron Reeves, Ph.D., the Paul C. Edwards Professor of Communication at Stanford University and Co-founder of Seriosity, Inc.Online
Online gaming environments creates leaders who are good at:
1. Focusing on getting the problem solved and the associated incentive
2. Juggling multiple real-time sources of information upon which to make decisions
3. Taking into account skills and competencies among co-players
IBM Global Technology Services – Innovation Team
20
Beyond the Organizational chart
Source: Cross, R., Parker, A., Prusak, L. & Borgatti, S.P. 2001. Knowing What We Know: Supporting Knowledge Creation and Sharing in Social Networks. OrganizatiSNAl Dynamics 30(2): 100-120. [pdf]
Organization charts are not the best indicator of how work gets done
Senior people are not always central; peripheral people can represent untapped knowledge
Making the network visible makes it actionable and becomes the basis for a collaboration action plan
IBM Global Technology Services – Innovation Team
04/10/202321
SNA enables improvements by making the issues that affect social networks visible
Implement metrics which promote teaming (e.g., sales goals that include combined offerings from each subgroup)
Create new communication forums to keep subgroups in touch with each other (e.g., status calls, e-mail updates, project tracking databases)
Improving Social Networks
Examples of Possible InterventionsTarget of Intervention
Staff project with people from each subgroup Distribute decision-making away from single point Create ways to engage the under utilized, loosely connected
people Improve breadth of awareness across extended team
Organizational Level
Leadership Level
Individual Level
• Boundaries create several distinct sub-groups within one network
Type of Issue (Examples)
• Highly central people are bottlenecks
• Expertise of peripheral people is not leveraged
Mentor people who are new to the company or group Promote interaction with people beyond departmental
boundaries
• Individuals are overly dependent on one person
• People are not reaching out beyond their department
IBM Global Technology Services – Innovation Team
22
SNA applies to a broad range of business problems
Promote innovation Example: An R&D group seeking to improve innovation conducts
an SNA to ensure that key expertise inside and outside the group is being effectively leveraged
Enhance productivity Example: An HR group conducts a SNA as part of a new rapid
on-boarding initiative to speed the transformation of new hires into productive employees
Increase efficiency Example: A client facing team that needs to share information
across the geographies to respond rapidly to client needs conducts an SNA to find the information hubs and where information is getting stuck
Example: A senior management team concerned that decisions are not being followed through, conducts an SNA to understand where information and decisions are getting blocked
IBM Global Technology Services – Innovation Team
23
Building Effective Virtual Teams
The Challenge… 2 weeks – time it takes to build trust in the
electronic comms world
4 times as long to communicate a message electronically vs face-to-face
64% of communication is non verbal. Without visual cues messages can be easily misinterpreted
17 weeks – time lag for culturally diverse teams to begin outperforming single-culture teams
Ref: Pearn Kandola (Occupational Psychologists) Research Report September 2006
IBM Global Technology Services – Innovation Team
24
Cultural Differentiators
Monochronic/Polycronic Power Distance Individualism vs. Collective Masculine vs. Feminine Uncertainty Avoidance
IBM Global Technology Services – Innovation Team
25
Agenda Items
Introduction Diversity is crucial IBM innovation programmes – used with clients Repeatable approaches to innovation Case studies and examples
Innovation that Matters
IBM Global Technology Services – Innovation Team
IBM Research worldwide – 3,200 people in 8 labs
5 Nobel Laureates 8 National Medals of
Technology 5 National Medals of Science 6 Turing Awards 21 Members in National
Academy of Sciences 59 Members in National
Academy of Engineering 10 Inductees in National
Inventors Hall of Fame
Behavioral Sciences Chemistry Computer Science Electrical Engineering
Materials Sciences Mathematical Sciences Physics Service & Management Science
Famous for its science and vital to IBM1945 1st IBM
Research Lab in NY
(Columbia U)
1945 1st IBM Research Lab in NY
(Columbia U) Zürich 1955Zürich 1955
Austin 1995Austin 1995 Delhi 1998Delhi 1998
Tokyo 1982Tokyo 1982
1952San JoseCalifornia
1952San JoseCalifornia
Almaden 1986Almaden 1986Watson 1961Watson 1961
Haifa 1972Haifa 1972
Beijing 1995Beijing 1995
IBM Global Technology Services – Innovation Team
27
Huge range of innovation and delivery capabilities
IBM Innovation Centres
IBM Software Labs
IBM Systems & Technology Labs
IBM Design Centres
IBM Benchmark Centres
IBM Innovation Centres for Business Partners
IBM Executive Briefing Centres
IBM Global Technology Services – Innovation Team
Global Innovation Outlook
Introducing the GTO and other tools to understand technology and business trends
Start a dialogue about innovation, business transformation and societal progress
Collaboration across a global ecosystem of experts
• Business, academia and political leaders
Publically available at ibm.com/gio
Global Technology Outlook
Identify top emerging technology trends & IBM business opportunityin the next 3 to 10 years
Direct influence on IBM’s technical strategy – lists IBM exec actions
Many versions (short / long – internal / external – industry-specific)
Not published externally, but client version available
Fact based thought leadership from IBM Global Services that help clients realize business value
3 to 10 year industry and/or functional area outlook with action oriented next steps
CXO Surveys and joint work with Economist Business Intelligence Unit
Publically available at ibm.com/iibv
Institute for Business Value
1970s 1980s 1990s 2000s
Centrally Funded
Joint Programs
Research in the Marketplace
Collaborative Innovation
• Corporate funded research agenda
• Technologytransfer
• Collaborative team
• Shared agenda
• Effectiveness
• Work on client problems
• Create business advantage for clients
• Industry-focused research
IBM Global Technology Services – Innovation Team
29
Agenda Items
Introduction Diversity is crucial IBM innovation programmes – used with clients Repeatable approaches to innovation Case studies and examples
Innovation that Matters
IBM Global Technology Services – Innovation Team
30
One-Off InnovationActivities
Ongoing Innovationand Partnership
Range of Approaches to Joint Innovation with Clients
Limited Commitment(IBM/Client)
Standard IBM OfferingsIdeas from only one SourceSimple Innovation Projects
High level of Commitment(IBM/Client)
Full program tailored for the clientJoint Idea Management
Wide portfolio of innovation projects
Joint InnovationPartnership Programme
(e.g. VCC / iTeam)
TacticalLittle partnership
Full PartnershipStrategic
InnovationFacilitation Programme
(e.g. DVLA, DEFRA
Innovation Consultingand Assistance
InnovationWorkshops / Events
Joint InnovationCouncil with
Client
Specific InnovationDelivery Projects
Various progression paths possible
High level of partnership withdelivery commitment
Strong partnership butno delivery commitments
Small / Large projects but no program
Mainly thought leadership
One off Advice / Consultancy
Sponsorship, but no delivery commitment
IBM Global Technology Services – Innovation Team
31
Innovation ideas, input and delivery from an extensive range of internal and external sources
Client CIO & GIS communities
Client idea management
Client Alliances and Partnerships
IBM Global Innovation Outlook & Global
Technology Outlook
Client business and technical teams
Client IDEATION and Innovation JAM
IBM Client Account Team
IBM VCC Briefings
Client Technology Vendors
IBM Extreme Blue Programme
IBM ResearchCentres
INNOVATION DISCOVERY INNOVATION DISCOVERY
Joint Innovation Discovery / Theme
Workshops IBM Institute for Business Value
VCC VCCResearch Advocate
IBM Global Technology Services – Innovation Team
32
Innovation Sourcing – Putting Ideas into Action (rapidly)
Discussions Initiatives
Step 2Review &Discussion
Step 3Them eSelection
Step 4InitiativeDevelopm ent
Step 5Pro jectDelivery
Step 1Idea G eneration & Ide ntifica tion
ValueCreation
Em ployees
Custom ers
Partners
Core VCC Initia tive Development Activity
Delivery P roject O utp ut from VCC
Ideas Not Input into the VCC
Key:
Core VCC Initia tive Development Activity
Delivery P roject O utp ut from VCC
Ideas Not Input into the VCC
Key:
Ideas are genera ted from various sources such as em ployees, customers and partners and input into the VCC
The VCC reviews the ideas input into it – filte ring selected ideas into them es
Ideas to be progressed are deve loped into themes w ith overlapping ideas interlocked
Them es are qualified into sized and scoped initiativesw ith positive business cases
Initiatives are deve loped into delivery projects to ensure business va lue delivered
Ideas DeliveryThemes Discussions Initiatives
Step 2Review &Discussion
Step 3Them eSelection
Step 4InitiativeDevelopm ent
Step 5Pro jectDelivery
Step 1Idea G eneration & Ide ntifica tion
ValueCreation
Em ployees
Custom ers
Partners
Core VCC Initia tive Development Activity
Delivery P roject O utp ut from VCC
Ideas Not Input into the VCC
Key:
Core VCC Initia tive Development Activity
Delivery P roject O utp ut from VCC
Ideas Not Input into the VCC
Key:
Ideas are genera ted from various sources such as em ployees, customers and partners and input into the VCC
The VCC reviews the ideas input into it – filte ring selected ideas into them es
Ideas to be progressed are deve loped into themes w ith overlapping ideas interlocked
Them es are qualified into sized and scoped initiativesw ith positive business cases
Initiatives are deve loped into delivery projects to ensure business va lue delivered
Ideas DeliveryThemes
IBM Global Technology Services – Innovation Team
33
Key Areas of the Blueprint Document
Mission Guiding Principles Scope People – Roles and Responsibilities Process Tools The Innovation Agenda and Initiative
Selection Governance Funding Model Communication Plan
IBM Global Technology Services – Innovation Team
34
VCC Critical Success Factors
Working as a Joint IBM / Client Team Effective / Staffed Core Team IBM, IT & Business Unit Involvement Client buy-in to the selected focus areas Working with the Strategy & Architecture Teams
Selecting the right ideas Appropriate Risk from an IBM and Client Perspective Strategic for IBM & Client Valuable from a Client IT or Business perspective Able to implement quickly – need some quick wins
Having an effective governance and decision making process in place Clear sponsorship for the specific initiatives to be progressed Setting the right expectations for the VCC Communicating the VCC vision, scope and activities
“Between the conceptionAnd the creation,
Between the emotionAnd the response, Falls the Shadow”
(T S Eliot)
IBM Global Technology Services – Innovation Team
35
Agenda Items
Introduction Diversity is crucial IBM innovation programmes – used with clients Repeatable approaches to innovation Case studies and examples
Innovation that Matters
36
“SMS for Life”
37
• Over 1m people die of malaria in sub-Saharan Africa each year– About 2.7m per year globally
• Tanzania has the highest death rate in all of sub-Saharan Africa– Around 380 per day– 80% of these are children under 5
• Anecdotally, 40% of health facilities are thought to be out of stock of anti-malaria drugs at any one time
“SMS for Life” … The Problem …
38
Solution Overview
• Process flow documented on the poster provided to each of the health facilities
• Application provided by Matssoft under contract to Vodafone– UK company– Application hitherto used to
manage insurance quote workflows
• Vodafone manages Telco requirements– Vodacom Tanzania– PUSH, the local aggregator– And also the technical incident
management process• IBM provides project
management
IBM Global Technology Services – Innovation Team
39
Agenda Items
Introduction Diversity is crucial IBM innovation programmes – used with clients Repeatable approaches to innovation Case studies and examples
Innovation that Matters
IBM Global Technology Services – Innovation Team
40 40
Fortune favours the brave !!
Do one brave thing today … then run like hell !