Transcript Seminar Delivered On Innovation for Conference

How Do Leaders Promote Innovation:
Creating Dramatic Change and
Results
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Innovation  Agenda
What we plan on covering today:
1
Defining Innovation
2
Public Sector Innovation-Examples and Lessons Learned
3
Private Sector Innovation-Examples and Lessons Learned
4
Building Blocks for Creating Innovation:
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Talent Management
Governance
Financial Management Changes Required
Leveraging Technology to create Innovation
Process Transformation
Cultural Change: Creating Collaboration and Intrapreneurship
How do we implement these great ideas?
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Defining Innovation -Creating a Common
Understanding for Our Discussion
What Innovation Is…
Innovation is accomplished through more effective products, processes,
services, technologies, or ideas that are readily available to markets, governments,
and society.
Innovation differs from invention in that innovation refers to the use of a better and, as a
result, novel idea or method, whereas invention refers more directly to the creation of
the idea or method itself. Innovation differs from improvement in that innovation refers to the
notion of doing something different rather than doing the same thing better. (Wikipedia)
What Innovation is Not…
 Common causes of failure within the innovation process in most organizations can be
distilled into five types: Poor goal definition, Poor alignment of actions to goals, Poor
participation in teams, Poor monitoring of results, Poor communication and access
to information (O'Sullivan, David (2002). "Framework for Managing Development in the
Networked Organisations". Journal of Computers in Industry).
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Public Sector Innovation-Examples and Lessons Learned
The Self-Funding Model
The self-funded portal model essentially eliminates the
financial risks governments would have to undertake by transferring
the up-front capital investment to a private sector partner.
The public sector organization then charges transaction fees on a small number of
services to fund the operation of the overall portal. These fees cover the cost of paying the
private sector partner for the initial investment as well as ongoing maintenance, upgrades
and development of new self-service solutions.
Example:Texas
In 2010, Texas gov’t securely processed 22 million digital transactions valued at
more than $4 billion. Its portal offers more than 1,000 online services and provides
e-government solutions to 178 state and local agencies. It
was developed and managed at zero cost to Texas through the self-funded
approach.
Lessons Learned:
• Embrace the public-private partnership
• Have a plan and expect to mature over time
• Understand the paradigm and look at your portal as a
service delivery platform and not an information center
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Public Sector Innovation-Examples and Lessons Learned
“Big Data” - Obama’s competitive advantage in winning
the U.S. Presidency
After the voters returned Obama to office for a second term, his
campaign became celebrated for its use of technology—much
of it developed by an unusual team of coders and engineers—
that redefined how individuals could use the Web, social media,
and smartphones to participate in the political process.
A mobile app allowed a canvasser to download and return walk
sheets without ever entering a campaign office; a Web platform
called Dashboard gamified volunteer activity by ranking the
most active supporters; and “targeted sharing” protocols mined
an Obama backer’s Facebook network in search of friends the
campaign wanted to register, mobilize, or persuade.
Dan Wagner, the chief analytics officer
for Obama 2012, led the campaign’s
“Cave” of data scientists.
But underneath all that were scores describing particular
voters: a new political currency that predicted the behavior of
individual humans. The campaign didn’t just know who you
were; it knew exactly how it could turn you into the type of
person it wanted you to be. (MIT Technology Review December
2012)
Lesson Learned: “My kingdom for a horse”, King Richard III
“My presidency for Big Data”, Mitt Romney, 2012
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Public Sector Innovation-Examples and Lessons Learned
Cory Booker, Mayor of Newark-Innovation via Leadership
In 2008, Newark had its lowest murder rate since 1959. March 2010
marked Newark’s first murder-free month in over 44 years. As of April 1,
2010, the murder rate in Newark was the second best since 1941, and
crime rates for aggravated assaults, robberies, carjacking, and
shootings were also down for the first quarter compared to 2009.
In addition to his crime-lowering initiatives, Booker both doubled the
amount of affordable housing under development and quadrupled the
amount under pre-development, and reduced the city budget deficit from
$180 million to $73 million.( Time Magazine July 2009)
Booker at the 2011 Time 100 Gala
Mark Zuckerberg Donation
In July 2010, Booker attended a dinner at a conference in Sun Valley,
Idaho where he was seated with Mark Zuckerberg. Zuckerberg, who
had no known ties to Newark, announced in September 2010 that he
was donating $100 million of his personal fortune to the Newark school
system.
Lessons Learned: Leading by example creates an organizational culture
that can create miracles with virtually no resources, using social
consciousness as fuel.
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Top 10 Innovative Companies for 2013 (Fast Company)
1.
Nike- For a pair of revolutionary ideas and
a culture of true believers.
6. Uber-fuses tech with cabs
2. Amazon-Speeding up the delivery of change
7. Sproxil-busting manufacturers selling fraudulent
ingestible goods.
3. Square-a simple idea--enable credit card
transactions on mobile devices
8. Pinterest-social scrapbooking site was dubbed the
fastest-growing web service in history.
4. Splunk-For Bringing Big Data to the masses
5. Fab-online boutiques of design-centric
products for such niches as foodies and pet
lovers.
9. Safaricom-In Kenya, where more than half of citizens
live on less than a dollar a day, medical care can be a
far-off luxury. But local telecom giant Safaricom has
built a vital bridge between doctor and patient. It
launched Daktari 1525 in late 2011, a 24/7 call-in
service that, for a small fee, connects callers one-onone with a doctor.
10. Target-shrinking the big box, going local, leveraging
mobile services to provide personal service
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Private Sector Innovation-Examples and Lessons Learned
 The most successful companies encourage innovation in the workplace.
For example, Google allows their staff to spend 30% of their time pursuing
their own creative interests which has lead to innovative ideas such as
Google Maps and Google Adsense, which have genuinely changed the
way we live and made Google in phenomenon more than a search engine.
 Lesson learned: giving time to employees to be creative can result in
bottom-line benefits like new products or services.
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Private Sector Innovation-Examples and Lessons Learned
Innovation for funding a data-mining competition to reduce unnecessary
hospital visits. It’s the Netflix Prize for health care.
Just as Netflix spurred the development of a more accurate predictor of
movie preferences, Heritage is out to spark the creation of an algorithm
that analyzes historical patient data and predicts how many days someone
winds up in a hospital in a year.
Based on that information, health-care providers can work backwards,
trying to prevent medical emergencies. The grand prize is $3 million for the
winning team, but the benefit of reducing hospital stays could be in the
billions.
Lesson Learned: These are capabilities that Canada ‘s Health Care
System could dramatically benefit from
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Private Sector Innovation-Examples and Lessons Learned
For designing an online coaching platform to help vets graduate.
An online community and platform that coaches veterans through the
process of preparing for college and the workforce,
Fidelis provides technological solutions (gamification, badges) to the tough
problem of student retention for a demographic that struggles in the
transition back to school and work. Fidelis will serve as virtual counselors
for vets, from GED tests through their first jobs. They’re in discussions with
Harvard University, Stanford University, and the Massachusetts Institute of
Technology, among others.
Lesson Learned: Gaming, On-line Learning, and Social Media combined
can retrain and re-educate supposedly “untrainable” citizens at a nominal
cost.
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Building Blocks for Creating Innovation
Clearly defined
goals, Actions in line
with goals,
organizational
structure/business
model supporting
results, Results and
the ability to
measure them
Talent
Management
How you hire,
who you hire,
how you
motivate
people , how
do you create
and
propogate
intellectual
capital
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Governance
Lead by Example,
Create a
Corporate Social
Consciousness
Opportunities
are endless to
leverage
technology to
create
innovative
products,
services,
reduction in cost
or cycle time
improvements
Financial
Management
Clearly Defined
Perfomance
Measurements,
New paradigms
for funding
investment
based on new
business models,
Flexibility with
respect to
compensating
based on results
Technology
Reward
Collaboration and
Entrepreneurial
Behaviour
Recognize
Results
Process
Transformation
Collaboration
and
Intrapreneurship
Obliterate nonvalue-add,
redundant, and
duplicative work
Look at speeding
up “cycle” time from
a customer
perspective and
cross-functional
scope
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How do we implement these great ideas?
Think Big, Start Small to create sustainable innovation…………..
Start with the end in mind.
Strategy drives goals,
structure, funding, behaviour,
and results.
Without well-defined strategy
and governance and all of the
underlying building blocks in
alignment, success is not
possible.
Mobile Technology and Big
Data are two of the most
important innovations and
yet they are under-utilized
by private and public sector
organizations.
Technology can reconfigure
how, when, where, and
even why you deliver your
business.
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Eliminate manual
processing unless it
represents unique
intellectual capital.
Question everything….
Create clear-cut
baselines and then show
measurable results
This is the most difficult
and important piece of
the puzzle. If you get it
right, you can create
miracles.
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The Case for Improved Collaboration -- Findings
Findings and conclusions:
We do not know what we know…
…or even what we do not know
Many are still stuck in email and face to face
meetings
Less that one third feel they have the right
tools
Processes are a bigger challenge than the
tools
Remote and multi-location teams are here to
stay
With improved Collaboration:
To improve
Collaboration…..
……we must:
•Share more
•Ask more often
•Make more information
available
•Search more often
•Communicate more often
•…..especially in groups
Better decisions and solutions, faster
Higher employee engagement
Higher productivity and efficiency
Lower costs and higher returns
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Path Toward Improved Innovation /
Collaboration
 Assessment of Current Status:
 Processes
 Strengths and Weaknesses
 Available Tools and use thereof
 Develop vision of desired state
 Develop plan based on Pilot teams
 Implementation
 Measure, evaluate & adjust
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A Suggested Approach to Implementing Innovation in your
Organization
Think Big….Start Small
1.
Set-up an Innovation Office and appoint an Innovation Lead/Officer (depending on scope (line of
business vs. enterprise).
2.
Create a charter-strategy, objectives, scope, performance measures. Build a plan of
implementation and make the Innovation Lead accountable for it.
3.
Get some seed money approved-this will be used to do ground work/research which will feed
subsequent business cases.
4.
Pinpoint key opportunities and prepare supporting business cases to get funding.
5.
Create an inter-disciplinary Advisory Steering Committee/Board comprised of Human
Resources, Finance, Marketing, Sales, Customer Service/Channels, and IT.
6.
Start educating people on what innovation means to your organization and tie it back into your
business strategy. Hold lunch and learn sessions, brainstorming sessions, and formal training
in innovation.
7.
Start thinking about intrinsic/extrinsic reward systems that can be implemented quickly for
innovative thinking and action.
8.
Measure and track the benefits of innovative thinking/behaviour and determine a plan to
propogate/replicate these successes in other areas.
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