1. Innovation in the Downturn Afrivate 26 March 2009

2. Looking at the Landscape 3. How do you expect the economyto look at end of1st quarter 2009? *Compared to September 2008McKinsey Global Survey : Economic Condition Snapshot (February 2009) 4. How active shouldgovernmentsrole be in the economy, since the startof the downturn.McKinsey Global Survey : Economic Condition Snapshot (February 2009) 5. Where shouldgovernmentfocus their efforts ?McKinsey Global Survey : Economic Condition Snapshot (February 2009) 6. What stepshas your company taken to face the downturn?McKinsey Global Survey : Economic Condition Snapshot (February 2009) 7. What is Innovation? 8. Idea to TangibleExploit to Commercial SuccessNew IdeaInventionInnovation Invention Process Innovation ProcessInnovation is therefore much morethan invention Need to successfullycommercialize the inventionTrott2005 9. Why is Innovation important? 10. productInnovation FunnelWilliam B. Rouse, Improvement & Innovation Improvement & Innovation 2007 11. processInnovation FunnelModeling phaseSimulationsession Debriefingworkshop Next simulationsIdeaFocussedsprocess development projects Duration ca 3 months 12. Innovation funnel across extended enterprise 13. The Competitiveness ChallengeCompetitive Enterprise Continuous ImprovementGreen Fields Innovation ProductIncremental Innovation Innovation Radical InnovationOperateOptimiseProcess Innovation Technology InnovationBlending Innovation and OperationInnovateOperateInnovate 14. Innovation Capability ConstructThe Innovation Capability DilemmaInnovation ProcessKnowledge &CompetencyOrganisation al SupportOrganisation Strategy &Function & Data & Customer & & ObjectivesProcesses InformationSuppliersManagementOrganisational Construct Innovate Operate ICMA1 2Innovate 4 35 A More Competitive Enterprise 15. Innovation has finallyArrived 16. Currently,66%of 3000 global executives considerInnovation top 3 priorityLess than 50% of executives feel ROIis sufficientSource: BCG Senior management innovation survey 2008 17. Currently, Understand the customerStrengths | Executive LevelSupport Speed of delivery Discipline of Delivery Managing Risk | Weakness Partnering with Others Earmarking sufficient fundsSource: BCG Senior management innovation survey 2008 18. Types of Innovation 3 Life Cycles ProductLife Cycle TechnologyLife Cycle EnterpriseLife Cycle Dealing with Darwin 15 Types of Innovation 19. Geoffrey Moores 15 Innovation Categories 20. The Economic Good Times Scenario Improvement ProgrammesInfrastructure AnalysisInnovation ProcessRe-assessment Assessment Knowledge & CompetencyImproving Innovation Capability Organisational Support Identify opportunities, Deploy, refine, generate ideas andPortfolioExecuting Innovation Initiatives concepts, andManagement formalise and exploit opportunities determine feasibilityContinuous monitoring and improvement of operationsOperationsGenerating revenues and funding innovation 21. The Economic Bad Times Scenario Improvement ProgrammesInfrastructure AnalysisInnovation ProcessRe-assessment Assessment Knowledge & CompetencyImproving Innovation Capability Organisational Support Identify opportunities, Deploy, refine, generate ideas andPortfolioExecuting Innovation Initiatives concepts, andManagement formalise and exploit opportunities determine feasibilityContinuous monitoring and improvement of operationsOperationsGenerating revenues and funding innovation 22. How innovation fit are you? 23. Innovation Maturity Fitness? 5 Levels of Innovation Maturity Fitness Synchronisation of activities and resources Outputs provide sustained competitive advantageSynergisedInnovation5 Aligned Innovation 4 Integrated and aligned activities and resourcesOutputs are a source of consistent differentiation SupportedInnovation3Practices, procedures and tools formalised Consistent outputs maintain market shareDefinedInnovation2 Need to innovate identified and definedOutputs are inconsistent, but traceableAd-HocInnovation1 Consumed with day-to-day operations Outputs are inconsistent and unpredictable 24. What to do in the Downturn? 25. Ad-HocIf you are at Innovation 1 maturity No way of rapidrecovery Get expertises help in 26. SupportedIf you are atInnovation 3 maturity Obtain partialhelp from experts 27. SynergisedIf you are at Innovation 5 maturity Adjust your ideafilter Harvest ideas to solve problemsrelatedto the downturn How to cut costs Hire better people for less Adjustyour feasibility filters Go to portfolio and re-align Reposition for when market turns 28. If you are atunknown? maturity Keep expertise Cut costs Negotiate with suppliers Find shortest route to new ways to do business Different products Cheaper processes New markets 29. Innovation Capability AssessmentAssess to determine maturity level, Identifies best innovation improvement activities 30. Indutechs innovation improvement lifecycleBusiness Unit C Business Unit B Business Unit AImproving Innovation Capabilities Initial Infrastructure Improvement Activities Measure,AssessmentAnalysis Optimise, Assess(Wednesday Fitness) Innovation PD, ED, IM, etc InnovationProcesses Innovation Process Improvement Roadmap(s)ProcessProcessKnowledge &Knowledge & IKN, BI, etc Knowledge & Competency Improvement Roadmap(s)Competency Competency Organisational Strat, Culture,Organisational Support OrganisationalSupport Org struct, etc.Improvement Roadmap(s) SupportSpecific Innovation (Saturday Game) ImplementationsIdentifyingImmediate Pains Identifying IdentifyingPortfoAnalysis/Measure CurrentPrototypeConcept Concept lio Develop &Idea &Optimis Exploit InnovationInnovationDefinition Feasibility Mngm Implement Generation eProjectsProject(s) entIdentifyingImmediate Opportunities 31. Thank you