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Business Innovation & Innovation Management
Author: Koen Klokgieters, VP Business Innovation Capgemini Consulting Published: 2007 1
The vision of Business Innovation and Innovation
Management
- Introduction -
Standing still is the fastest way to go backwards. For many organisations change is
the only option, while this is not always what the people working there want. Many
external factors make change necessary however.
The behaviour of customers and the way in which they experience products and
services is subject to constant change. In the eyes of the customer products that the
company put on the market and were highly successful are becoming obsolete
increasingly quickly. The quality of the product or the service is no longer the only
thing that customers look at. Issues such as service, price, accessibility of the
organisation and the experience the customer has when buying and using the
product are becoming increasingly important.
This full set of properties is the value proposition of a company. The changes in the
behaviour and experience of the customer makes organisations adjust this value
proposition constantly. The adjustment of the value proposition to the new wishes of
the customer is not sufficient however. To gain the preference of the customer
organisations must be distinctive in the offering of a value proposition compared
with the competition. A customer ultimately chooses those products and services
whose full set of properties is the best match for his or her wish at the time. The
credo therefore is: constantly in search of innovation of the value proposition. For
the company this means constant innovation of the business.
Many companies say they are working on Business Innovation, but are still
struggling with a number of outstanding issues:
What does Business Innovation mean?
Why is it that so few companies are successful in Business Innovation?
Is there an approach that can be successful?
And how do you implement such an approach?
In its vision of Innovation Management Capgemini gives an answer to these
questions.
Business Innovation & Innovation Management
Author: Koen Klokgieters, VP Business Innovation Capgemini Consulting Published: 2007 2
Chapter 1. What is Business Innovation?
Business Innovation is the development and implementation of a unique added value
that customers adopt. The more unique and the greater the edge on the competitor
(at the time of a launch), the greater the chance of success among customers, all the
better the operating results.
When does the success of Business Innovation become visible for a business with a
commercial objective? With more customers, higher turnover, bigger margins and
higher profits. For non-profit organisations (such as hospitals) its success is
expressed in greater return for the target group with the same available budget.
Even if the success is measured in different ways, Business Innovation always has
the same aim: greater return for the business and its environment through
innovation.
1.1 What determines the distinctiveness of a company?
Companies with a strong history often have an area in which they are outstandingly good.
For example, by being distinctive with their product or technology. Miele is a good
example of this. Other businesses go for strong customer service (Singapore Airlines),
accessibility (Dell computers), experience (IKEA) or a low price (Aldi). These businesses
have chosen a recognisably outstanding area for customers in which they want to be
unique. A continuing behaviour analysis of customers enables the company to improve
its current business and in this way stay ahead of the competition. Business Innovation is
aimed at the realisation of an edge in business.
How can we achieve such an edge?
Through the successful application of new technology in products or services
Through insight into changing legislation (political climate) and being able to
respond to it
Through insight into the changing economic and social climate and being able to
respond to it
Through insight into changing behaviour of people and being able to respond to it
To what degree can a company predict the behaviour of customers? And how quickly can
it respond to this? These two aspects determine the distinctiveness of the company.
Business Innovation & Innovation Management
Author: Koen Klokgieters, VP Business Innovation Capgemini Consulting Published: 2007 3
1.2 How can a company prepare itself for the new developments and the
behaviour of customers?
A company can determine or reinforce distinctiveness on the basis of empirical data.
Except that it gives absolutely no guarantee that customers will continue to value the
current added value in the same way in the future. A company must therefore be able to
scan and to analyse trends and developments and then translate them into a possibly new
value proposition. Trends and the associated behaviour of customers can be subdivided
into:
Mega Trends, which are long-term (15 to 30 years), often social trends, fed by
economic, technological, political and social developments. Examples include the
growing average purchasing power per family, humanisation of the technology,
regionalisation and ageing.
Consumer Trends, which have a medium-term cycle (three to ten years). They are
developments that are already actually visible in the media and are translated into
marketing messages. Examples include: the need for growth in risk control
(everything can be insured), security (we will look after your family), safety (food
and drink standards) and authenticity (regional products). Consumer Trends help
to explain the behaviour of customers and the way in which their choices are
determined.
Market Trends, which are short-term developments (one to three years). These
short-term trends determine the reaction of companies to the above trends and are
often market sector-specific. Examples include: growth of service counters in
supermarkets and the product integration of camera, mobile telephone and
internet in the telecoms market.
1.3 On which areas of an organisation does the translation of trends have an
impact?
A company will analyse trends and translate them into concrete innovation initiatives.
These initiatives can have an impact on areas of an organisation that focus on both
external and internal factors.
The areas that focus on external factors are: product/service development,
innovation of distribution channels, setting up of new market (segments). These
innovation initiatives have a direct impact on the customer‟s experience.
The areas that focus on internal factors are: the business model and the
organisational setup, the business processes, the (technological) resources and
new competences of managers and staff. These innovation initiatives mostly have
an indirect impact on the customer‟s experience, but are no less essential for the
success of innovations.
Initiatives involving external factors on the one hand and internal factors on the other
have mutual influence on one another. For example, the launch of HDTV during the
World Cup in the summer of 2006: an innovative product was put on the market while
the internal and external factors were out of sync with one another. For a successful
Business Innovation the internal and external factors have to be carried out integrated.
Business Innovation & Innovation Management
Author: Koen Klokgieters, VP Business Innovation Capgemini Consulting Published: 2007 4
Business Innovation = the development and implementation of a unique added value
that is adopted by customers, by means of an integrated change of internal and
external factors.
1.4 Innovation in a public domain arises from a different need
In the public domain (such as the local authority) it is about innovations that lead to
greater value for the same money (read: budget). The driver does not therefore come
directly from competitors, but from greater social value for less social money. Here too
innovation is aimed at the creation of added value through a combination of new
externally and internally oriented factors.
An innovation example from the public domain is the integrated electronic service
provision at municipalities: the citizen can now – in addition to the familiar counter – get
help over the internet. Because of innovation in new channels the citizen can himself
decide how and when he wishes to use services of the municipality. Investing in new
technology brings the municipality a gain in time and cost savings. In short: greater value
for lower structural cost.
Business Innovation & Innovation Management
Author: Koen Klokgieters, VP Business Innovation Capgemini Consulting Published: 2007 5
Chapter 2. Why are so few companies successful in Business Innovation?
2.1 Growing complexity in correlation between trends and developments
So far companies have in particular followed those specific trends and developments that
are an extension of their current value proposition. KPN for example has for a very long
time concentrated on monitoring and helping to develop above all technological
(telephony) developments and translating them for the Dutch market. It is clear that this
will no longer be enough for KPN. The new strategy is aimed at the provision of
communication, information and entertainment services. For this all the relevant Mega,
Consumer and Market trends must be monitored and analysed as they relate to one
another. This is also called „viewing from different perspectives‟. Too often many
businesses are still viewing from a single perspective. They have no workable method,
tools or the right competences at their disposal to be able to spot these trends as they
relate to one another and then to analyse them. Let alone translate them into innovations
in their value proposition.
2.2 Growing unpredictability in consumer behaviour
If consumers display stable buying behaviour and are easy to classify in customer
segments, the company can make a clear delineation at which the innovation is to be
aimed. Volvo and Saab for example have succeeded in appealing to a clear target group
with a safe, luxury passenger car. Customers have therefore remained loyal to these
brands for a very long time.
Capriciousness characterises the behaviour of the consumer of now and the future. Other
forms of living together, communicating, consuming and experiencing clearly have their
repercussions. The modern consumer wants an appeal to his DNA, the “genetic
blueprint” of his behaviour. The company must be capable of understanding this DNA
and translating it into a new value proposition. The chances of the company‟s survival are
determined by two crucial factors: insight into the specific customer and the speed of
reaction to the constant changes within the target groups. Capgemini‟s research Trends in
Retail (2006) shows that only a few companies have proved successful in this.
2.3 Obsolete organisational structures and governance models
The growth of companies in recent years has mainly been realised through acquisitions.
This has led to a structure of relatively autonomous business units, each with their own
Research & Development, marketing, production, etc. The units are aimed at achieving
their own result, they are first and foremost product-oriented and there is no flexibility in
the cost structure. Growth and expansion are achieved by copying a business unit with a
complex, expensive and inflexible structure. From the position of the central company
this leads to suboptimisation of the operating result and an uphill struggle to adapt the
value proposition quickly.
For these businesses innovating mainly means investing with a high risk factor. Many
innovations have been and are still technology (and product) driven. Converting new
technology into market products requires research. This research takes place in separate
organisational departments such as Research & Development (R&D). Research costs
time and money. And research is often driven by budget rather than business cases, in
Business Innovation & Innovation Management
Author: Koen Klokgieters, VP Business Innovation Capgemini Consulting Published: 2007 6
which costs and revenues are related to one another. Improvements of the innovation in
R&D environments are often aimed at shortening that lead time, reducing the costs and
avoiding the risks. To make the revenues from the innovation understandable there is a
need within the business unit to work with other departments such as Sales and
Marketing. Differences of insight in the area of control, allocation of costs and income,
dealing with risks, etc, do not fit within the existing structures and governance models.
Businesses do not know how they can transform in a controlled manner into new
structures and management that do fit in with a flexible manner of innovation. The
research “Erasmus Competition and Innovation Monitor 2005” shows that in innovative
businesses 25% of the innovation success is determined by R&D investments and 75%
by managing cleverly and organising innovatively.
2.4 Undeveloped competences in fossilised business culture
Changes in the strategy and structure of a company require changes in the culture of the
business. In one organisational structure a specific business culture will have a
strengthening effect and in another a paralysing one. Look at a business where
technological knowledge of things and 120% quality experience were preconditions for
performing (think of the old Utilities businesses). A technocratic organisational culture of
hierarchy, protocols, standards, more matter than people-oriented attitude, will have a
strengthening effect here. An organisational culture that is characterised by chaotic
creativity, scope to keep reinventing the wheel and actually aimed at behaviour of people,
has a paralysing effect. A complex change of competences and behaviour of staff is
necessary.
A company can develop a new innovation structure (for example strong cooperation
between the R&D departments of the business units), but the differences in the
organisational cultures often appear to prevent changes. The success of transformation is
an interaction between changes in the business strategy, the organisational structure and
the organisational culture. This is not an obvious change competence that businesses have
in house. Yet the logic of the new innovation structure must be in keeping with the new
logic of the feeling.
2.5 Is there an approach that increases the success of Business Innovation?
Where are we as a company in the area of innovation? Do we have a picture of our
innovation ambition? What capacities do we have in house to be able to innovate?
How can we increase our ability to innovate? And how can we controllably make
concrete steps in innovation? Innovation Management, a Capgemini approach, provides
the answers.
Business Innovation & Innovation Management
Author: Koen Klokgieters, VP Business Innovation Capgemini Consulting Published: 2007 7
Chapter 3. Innovation Management, a successful approach!
3.1 Knowing where you are as a company
Companies embark upon innovation initiatives with a great deal of energy and a high
ambition level. It is not unusual for the enthusiasm to fade as time goes by. The company
is often unaware of the success factors of innovation and of its own ability to define the
preconditions for success.
An example from the Utilities sector …
In the Utilities sector in the Netherlands all the major electricity companies had sky-high
ambition levels when first exposed to market forces. They thought that they had after all
built up a good relationship with several million customers over the years. How easy
would it be to offer various new home-related products and services to loyal customers
and so develop new business. In practice these companies seem to have their hands full
innovating their existing services in a way that is in line with the market. For example,
simply being accessible by telephone for queries about the electricity bill. Nearly all the
new initiatives directed at consumers have been halted, despite huge investments.
These businesses had too high a Business Innovation ambition level in relation to their
ability to innovate. Success is determined by awareness of a realistic ambition level in
combination with self-knowledge of your ability to innovate.
3.2 Choosing the ambition level in Business Innovation
A company wants to innovate to bring about a distinctiveness for the customer.
Innovation can be translated into the innovation of various factors. The result of an
innovation can be a new product or a new channel, a new market or a combination of
these factors. The value proposition for the customer increases as a consequence of an
innovation in the order of product, channel and market level. The impact will increase
exponentially if the innovation is applicable at several levels at the same time. We call
this a “Blue Ocean” development.
ProductService development
Channeldevelopent
Marketdevelopment
“Blue Ocean”development
Low Complexity High
High
Impact on the Value proposition
Low
ProductService development
Channeldevelopent
Marketdevelopment
“Blue Ocean”development
Low Complexity High
High
Impact on the Value proposition
Low
Figure 1. The Business Innovation Ambition level
Business Innovation & Innovation Management
Author: Koen Klokgieters, VP Business Innovation Capgemini Consulting Published: 2007 8
3.3 Methods and tools for determining the correct ambition level
The ambition level of innovation is the framework within which the process of creation
and the generation of ideas will take place. This process is directed in part by the
outcomes of the impact analysis. The company analyses the different trends and the
strategic choices for dealing with this impact.
The trends give an insight into the social developments, into what the customers want in
the short and long term and into how this will influence their behaviour. The company
needs a method and tool to spot trends and to analyse the impact:
1. With the Innovation Radar Screen the impact is made business-specific. Trends
are related to the estimated change on the measuring instrument. The organisation
can use this to manage the results (for example the Balance Scorecard instrument).
2. With the Strategic Innovation Scenario planning method the impact of the trends
can be translated into possibly different innovation scenarios. A trend indicates a
likely development. Of course a number of key uncertainties remain in a market,
the outcome of which is difficult to gauge. Think of the development of the
economic climate (rich years versus lean years). The actual outcome of this key
uncertainty will have a major impact on the ultimate development of the
innovation. A low price of a new product at a time of lean years for example will
be very important. In the rich years on the other hand service and quality have a
bigger part to play. An innovation scenario is built up on the basis of possible
outcomes of key uncertainties. These uncertainties have a major impact on the
operating result of the company. The planning method enables a company to
cluster relevant trends for each scenario and to translate them into the behaviour
of the consumers. The expected reaction of the businesses in the market sector can
be indicated for each scenario. With this insight a company can decide for which
scenarios adjustments are needed in the current value proposition. In this way
concrete innovation initiatives, such as product, channel and market innovations
can be defined. The overall review of the scenarios and the strategic choices of
the company determines the ambition level for innovation.
3.4 A realistic picture of the company’s ability to innovate
The realisation of an innovation ambition level revolves around the ability to translate the
desired value proposition in concrete terms for the customer. The success of innovation is
not determined by the innovators in the organisation. What matters is the degree to which
the customers adopt the new value proposition!
A company‟s ability to innovate is divided into four different (innovation) domains. Each
domain has specific characteristics and makes its own contribution to the realisation of
the innovation. The four domains are:
1. The Corporate strategic ability to innovate: the ability to translate the trends and
developments into a new value proposition. This is a matter of signalling trends,
building scenarios, gauging customer behaviour and above all translating all of
this into product, channel and market features. It is an interaction of detailed
knowledge and analysis in combination with the feel for customers and the market.
Business Innovation & Innovation Management
Author: Koen Klokgieters, VP Business Innovation Capgemini Consulting Published: 2007 9
This ability is called the “entrepreneurial gut feeling” of the organisation.
Examples of companies that are able to translate trends successfully into new
value propositions are the Swedish company IKEA (products), the British
supermarket chain Tesco (channels), the Dutch beer brewer Heineken (markets)
and the Canadian company Cirque du Soleil (new product, market and channel).
2. The External Network ability: the ability to organise different parties in the
environment of the business and to realise common innovations. The external
network ability is characterised by the viewing from different perspectives outside
the organisation. Innovation is not exclusively an internal matter, intensive
cooperation with external parties is crucial too. An example of this is so-called
“co-creation” at Lego. Children (customer perspective) are actively involved in
the development of new Lego “boxes of building blocks”. The children work with
R&D over the internet (technological perspective), Sales & Marketing (market
perspective) and Operations (business process perspective). The top three best-
selling Lego boxes of building blocks have come about in this way. Successful
cooperation requires structures and governance to be set up between the company
and the external parties. These new structures are called Eco-systems and are
mainly aimed at innovating collectively. Twente Care Services for example, the
health care company of the Twente Hospitals Group, is also successful. It focuses
on products and services that are closely associated with the key activities of the
hospitals. The knowledge and experience deployed medically within the Twente
Hospitals Group can be utilised with a consumer orientation through an eco-
system of more than 30 different parties.
3. The Integral Governance ability: the ability to adapt the business model (structure
and culture) to the development and realisation of the new value proposition.
Characteristic is the viewing from different perspectives within the organisation.
Involved in an innovation are not just R&D for example, but also other business
functions such as Sales & Marketing and Operations. It is necessary for the
business model and the governance methodology to support the desired flexibility
and integration. Thanks to such a “Business Service Oriented” business model
EasyGroup (EasyJet, EasyMobile, etc) has proved able to adapt quickly and easily
to the different value propositions in the market, without losing the integral
governance.
4. The Operational Acceleration ability: the ability to adapt processes, (technical)
resources and competences to the development and realisation of the new value
proposition. The concept of “Lean Solutions” shows how processes and
technology fit seamlessly together as modules in different assemblies. A business
with a huge operational acceleration ability is the American media group CNN.
The current and desired ability to innovate can be determined for each domain for a
company.
Business Innovation & Innovation Management
Author: Koen Klokgieters, VP Business Innovation Capgemini Consulting Published: 2007 10
Figure 2. Current and desired ability to innovate
There are specific methods and tools available for each domain for developing and
professionalising the ability to innovate:
The Corporate strategic ability to innovate:
o Systematic Innovation Method (SIM): the method provides support in the
development of new products and services.
o Channel Management Innovation: the method provides support in the
development of new distribution and communication channels.
o Blue Ocean Strategy: the method provides support in the development of
new markets.
o Consumer Experience Transformation: the method provides support in the
creation and fulfilment of the overall experience that the customer has
with the organisation and the new value proposition.
The External Network ability:
o Eco-system Development: the method provides support in the setting up
and professionalising of (external) networks aimed at common innovation.
o Reputation Management: the method provides support in giving insight
into what impact innovations have on the creation of an image of the
company.
The Integral Governance ability:
o Business Service Oriented Innovation: the method provides support in the
structuring of the business model to adopt innovation quickly and to
integrate it with the existing business and IT architecture.
o Innovation Benefit Logic: the method provides support in making clear
what benefits the innovation has for customers, operating results and
society.
The Operational Acceleration ability:
External Network Capability
Operational Acceleration Capability
Corporate Strategic Capability
Integral Control Capability
Desired
Current
External Network Capability
Operational Acceleration Capability
Integral Control Capability
Desired
Current
Business Innovation & Innovation Management
Author: Koen Klokgieters, VP Business Innovation Capgemini Consulting Published: 2007 11
o Lean Solutions/TRIZ: the method provides support in the innovation of the
business processes.
o Rapid Unified Process: the method provides support in the innovation of
the IT systems.
o Social Innovation: the method provides support in the enhancement of the
ability to innovate amongst directors, managers and staff.
3.5 The role of Innovation Management
Innovation Management directs the innovation ambition and the ability to innovate. The
challenge for the management in the company is to find a good balance between the
innovation ambition and the deployment of the ability to innovate of the business. What
evaluations does the management have to carry out?
1. Evaluation of the priorities, derived from current business objectives versus future
business ambition. Line management will in particular focus on the achievement
of current business objectives. Additional innovation objectives can sometimes
have a negative impact on the realisation of current desired performance.
2. The method of integral coordination between the deployment and development of
the four innovation domains. A company can for example experience a huge
development in the generation of product innovations, but lag behind in the area
of business process innovation. Lack of integral coordination will lead to all kinds
of forms of loss: excessive costs, too long time-to-market, undesirable experience
of the innovation amongst customers, etc.
3. The method of facilitating the innovation process. Various innovation methods
have been indicated for each domain. Which methods and associated tools are
used and how are they applied in the business-specific situation?
4. The method of managing the risks. The innovation process is a development
process with many uncertainties. The directors of the company want to have
insight into the risks and a way of working to be able to manage the risks.
Innovation Management = the taking of these decisions (or the management of the
decision-making) and the facilitation of their implementation.
Business Innovation & Innovation Management
Author: Koen Klokgieters, VP Business Innovation Capgemini Consulting Published: 2007 12
Chapter 4. How do you implement Innovation Management successfully?
4.1 The management of innovation for a company is first and foremost a
learning and development process.
There is no so-called “Soldier’s Bible” that gives an answer to every question in every
specific situation. There is also no short-term success formula: “Instant Innovation in 10
steps”. The key to success is a combination of the (continuing) search for relevant details
(which is hard work): on the one hand continuing to experiment (in search of creativity)
and on the other systematising (using methods and tools).
The innovation process is a development process, for staff and business partners. The
success of innovation is systematically increased by a good learning and experimenting
environment.
4.2 The Innovation Growth model gives insight into the different growth stages
The innovation growth model gives insight into the various stages of the innovation
management development process. We can distinguish four growth phases in innovation
management. Each phase has its own characteristics (ambition level and ability to
innovate) and challenges for growing to the next phase. For a company it is important to
assess which phase it is in. From there a company can see which initiatives will lead to
further professionalisation and growth.
High
Low
Low High
Ambition level of
Business Innovation
Innovation capability
of the organization
Adhoc
Innovation
Program
Innovation
Co-Creation
Eco-
Innovation
Framework for
Idea generation
Framework for
Idea implementation
High
Low
Low High
Ambition level of
Business Innovation
Innovation capability
of the organization
Adhoc
Innovation
Program
Innovation
Co-Creation
Eco-
Innovation
Framework for
Idea generation
Framework for
Idea implementation
Figure 3. Innovation Growth model
Business Innovation & Innovation Management
Author: Koen Klokgieters, VP Business Innovation Capgemini Consulting Published: 2007 13
4.3 The four growth phases of Innovation Management:
Phase 1. Ad hoc Innovation
A company in the first phase of the growth model initiates innovation projects on an ad
hoc basis. Creation and realisation of new ideas usually arise from a single perspective
within the organisation. For example from the perspective of the R&D department. There
are no parties from outside the organisation directly involved with the initiatives. The
innovation initiatives have no mutual coherence and the different parties within the
organisation often do not even know which initiatives have been started by the other
parties, let alone what influence they have on one another. If a business case has been
made, it relates only to an individual initiative. There is no standardised method (or tools)
for supporting the initiative. Many initiatives are aimed at product or process innovation.
The impact on the value proposition is relatively small.
The challenge in this phase consists of connecting and integrating the individual
initiatives and sharing knowledge and experience between the different departments and
units.
Phase 2. Programme Innovation
In the second phase the company is in a position to manage the innovation projects
integrally. An Innovation Projects Office has been set up that is responsible for project-
transcending functions. Apart from monitoring and reporting, the bureau standardises
innovation methods, tools and work processes. Knowledge and experience are exchanged
amongst one another and facilitated. Everybody works in the same way with an
(integrated) business case and integral decision-making takes place. The initiatives are
tested for a minimum number of success criteria at a so-called “tollgate session”. Apart
from product and process innovations more complex initiatives arise, such as channel
innovation and innovations in the business model. The impact on the value proposition
will be greater than in the first phase.
The challenge in this phase consists of attracting parties from outside the organisation to
develop new initiatives together.
Phase 3. Co-creation
In the third phase a company, in addition to the multidisciplinary innovation, actively
takes initiatives to participate with possible external parties. Viewing from different
perspectives from outside the organisation enriches the initiative. The Innovation Projects
Office will play an active role in the search for and selection of different external parties.
Representatives of the most important external parties take their place on an External
Innovation Board. This board serves as a sounding board and advisory group for the
innovation initiatives.
The new innovation initiatives become increasingly complex in nature. For example, new
product and channel initiatives are carried out at the same time. And in some cases
completely new markets are created. The organisation is in a position to manage the
Business Innovation & Innovation Management
Author: Koen Klokgieters, VP Business Innovation Capgemini Consulting Published: 2007 14
consequences for the internal organisation (business model and operation). The impact on
the value proposition is relatively great.
The challenge in this phase consists of learning to set up and maintain eco-systems, in
which new innovations take place systematically.
Phase 4. Eco-innovation
In the fourth phase a so-called “Eco-system” is set up. An Eco-system is a strong network
of parties from inside and outside the organisation. These parties systematically start up
new innovation initiatives for the short and long term. The company can form part of
several eco-systems in parallel. Within each eco-system the role of the company and the
interpretation of this role is clear. The Innovation Platform (Innovation Programme
Office with a virtual skin around it) facilitates the innovation programme at strategic,
tactical and operational level.
The result is a systematic method of (complex) innovation. Depending on the role and the
involvement that the company has in the eco-system, the internal organisation (business
model and operation) will be relatively easy to adapt. The impact on the value
proposition is structurally great.
The challenge in this phase consists of the maximum utilisation of the specific roles in
the different eco-systems.
Business Innovation & Innovation Management
Author: Koen Klokgieters, VP Business Innovation Capgemini Consulting Published: 2007 15
4.4 How does a business grow from one phase to the next?
To manage and professionalise innovation it is important to make a road map. The road
map shows where we are in the growth process (which phase) at the moment and which
way we want to go to grow (new phase).
1. The first step: to find out where we are (Innovation Status). On the basis of an
Innovation scan we can determine the position of the company in the growth
model. The outcome of the scan gives an answer to the current ambition level and
the ability to innovate in the four different domains. Insight is also given into the
experiences with innovations so far and the experience of the staff of the
organisation.
2. The second step: the determination of the desired ambition level (Innovation
Strategy). In this step the framework for the creation and the generation of ideas is
laid down (see section 3.2).
3. The third step: the innovation ambition level translated into the consequences for
the ability to innovate in the four domains (see section 3.3). Also indicated is how
the growth to the next phase is managed (Innovation Management).
4. The final step: the definition and planning of the necessary activities that are
needed actually to achieve the next phase in the growth model (Innovation
Implementation).
Innovation ScanCurrentPositiongrowthmodel
Determine desiredAmbition level
FrameworkIdeageneration
Determine growthInnovation capability
FrameworkIdeaimplementation
Define InnovationImplementation plan
InnovationImplementation plan
InnovationStrategy
InnovationStatus
InnovationManagement
InnovationImplementation
Innovation ScanCurrentPositiongrowthmodel
Determine desiredAmbition level
FrameworkIdeageneration
Determine growthInnovation capability
FrameworkIdeaimplementation
Define InnovationImplementation plan
InnovationImplementation plan
InnovationStrategy
InnovationStatus
InnovationManagement
InnovationImplementation
Figure 4. Innovation Transformation Plan
Business Innovation & Innovation Management
Author: Koen Klokgieters, VP Business Innovation Capgemini Consulting Published: 2007 16
Chapter 5. The role of Capgemini
Capgemini can act as a partner in its customer‟s Eco-system. Capgemini‟s role is not a
one-man show in which it controls the customer‟s innovation process. It is actually about
intensive cooperation between Capgemini and the customer. Capgemini contributes the
necessary complementary knowledge, experience and methodology to the
professionalisation of the innovation.
Capgemini is a partner in:
Coming out with and transferring specific market knowledge (Market analysis).
Coming out with and transferring innovation methods and tools (Innovation
Approach).
Support in innovation transformation programmes (Innovation Programme
Management and implementation).
Support in management responsibility (Interim Innovation Management).
Support in specific innovation (behaviour) intervention and development
techniques (Accelerated Design Centers, Advanced Development Centers,
Innovate Centers).
The aim is to enable the customer to grow effectively and efficiently in terms of
operating results and personal development of the staff of the customer organisation.
For additional information please contact:
Drs. Koen Klokgieters CPIM
VP Business Innovation Capgemini Consulting Mobile: +31651123259
Blog: www.koenklokgieters-english.blogspot.com
Mailto: [email protected]