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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
10/23/2007 AUTHOR: RICHARD PLATT | ALL RIGHTS RESERVED 3
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)
10/23/2007 AUTHOR: RICHARD PLATT | ALL RIGHTS RESERVED 4
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
10/23/2007 AUTHOR: RICHARD PLATT | ALL RIGHTS RESERVED 5
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 $$$ for the IP
IBM (USA)– Went from a semiconductor and main frame
manufacturer to provider of IP and consulting services.
– Currently far more profitable with less capital than before the change
KEY POINT: They Re-Evaluated their resources and began using them in new ways to create new business models and revenue
10/23/2007 AUTHOR: RICHARD PLATT | ALL RIGHTS RESERVED 6
How do you do this?
1. Use a Vision + Fear as a motivator the same way as BMW senior management did with its factories
2. Take Stock of ALL of your BU and operational partners, including sales and marketing
3. Determine IT Core Competencies and your resources
4. Now Find Key Innovation Elements that are not being served by the current network, tools, etc…these are OPPORTUNITIES
5. Team up and Pilot with 1-2 BU’s to address their needs and to find revenue opportunities for IT to get $$ 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”
10/23/2007 AUTHOR: RICHARD PLATT | ALL RIGHTS RESERVED 7
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
10/23/2007 AUTHOR: RICHARD PLATT | ALL RIGHTS RESERVED 8
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
10/23/2007 AUTHOR: RICHARD PLATT | ALL RIGHTS RESERVED 9
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
10/23/2007 AUTHOR: RICHARD PLATT | ALL RIGHTS RESERVED 10
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
10/23/2007 AUTHOR: RICHARD PLATT | ALL RIGHTS RESERVED 11
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.
10/23/2007 AUTHOR: RICHARD PLATT | ALL RIGHTS RESERVED 12
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
10/23/2007 AUTHOR: RICHARD PLATT | ALL RIGHTS RESERVED 13
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
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, 05
10/23/2007 AUTHOR: RICHARD PLATT | ALL RIGHTS RESERVED 14
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
…
10/23/2007 AUTHOR: RICHARD PLATT | ALL RIGHTS RESERVED 15
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
10/23/2007 AUTHOR: RICHARD PLATT | ALL RIGHTS RESERVED 16
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
10/23/2007 AUTHOR: RICHARD PLATT | ALL RIGHTS RESERVED 17
BACKUP
10/23/2007 AUTHOR: RICHARD PLATT | ALL RIGHTS RESERVED 18
Corporate Innovation SystemCorporate Innovation System
Process
Leadership &Management
StrategicAlignment
Organization& PeopleMetrics
CULTURE
5+1 Core Elements – “Innovation by Design”
10/23/2007 AUTHOR: RICHARD PLATT | ALL RIGHTS RESERVED 19
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
10/23/2007 AUTHOR: RICHARD PLATT | ALL RIGHTS RESERVED 20
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
10/23/2007 AUTHOR: RICHARD PLATT | ALL RIGHTS RESERVED 21
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