Culture for Innovation 03 2011

8/3/2019 Culture for Innovation 03 2011

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Vassilis

Trapezanoglou

[email protected][email protected]

www.think-act.gr

LinkedIn===========================

29/3/2011

Developing a culture forinnovation: Mission Impossible !
mailto:[email protected]://www.think-act.gr/http://www.britishcouncil.org/greece.htmhttp://www.think-act.gr/http://www.think-act.gr/http://www.think-act.gr/mailto:[email protected]


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Innovation: the real meaning

Understanding the real meaning of innovation

At first the Definition (Aristotle)

Innovation: a substantially renewed approach of a product,

service, function, technique, procedure, practice whichis successfully applied and

is massively adopted by the customers (or citizens) adds value

Both characteristics (original, applied / adopted) are needed

Innovation creativity , Innovation inventionInnovation = creativity applied to a purpose to realize value =

blending knowledge, experience, practice and improvisation

The real act of discovery consists not in finding new lands but

in seeing with new eyes (Marcel Proust)2

Innovation

:

an

original

or substantially renewed idea,which

is

applied

and brings

value


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The 3 dimensions of innovation

3

A problem,

A need,

An expectation

Implementation /

Adoption

Original

approach

Innovation

The problemThe most difficult part

The innovativeidea

The successfulimplementation


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Innovation: challenge and renew established perception

Every person, organization, company or economic sector is inspired by a

number of beliefs, which are related to general but also to specific

aspects and issues of the operation, working as a common business

perception, as a kind oforthodoxy.

These beliefs have as origin previous experience, traditions, assumptions,

habits, dogmas and they infiltrate all aspects of the corporate business

model and operation.

Many of these beliefs have been incorporated in the business life under

completely different conditions, but they continue to function as a filter of

thinking, becoming barriers to change traditional operating models in

every social or economic activity.

4

he Key for innovation

is

to challenge established perceptions, assumptions anddogmatic beliefs (established orthodoxy) and

to review every single component of the operationalmodel in place (used to offer services or products).


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Greece falls behind

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Why innovation is an imperative for the country

The red Queen effect a metaphor of American biologist Leigh VanValen, who was inspired by the Red Queen character from Lewis Carrolls

"Through the Looking Glass."

evolutionary principle that regardless of how well a species adapts to its

current environment, it must keep evolving to keep up with its

competitors and enemies who are also evolving.

Thus, the Red Queen effect:

Greece belongs to a globalized, flat economic universeCompetes with a lot of stronger, faster countries / economies

Recent economic crisis revealed that it has fallen behind

Adaptation is not enough. It has similar species going faster

Innovation facilitates to speed up evolution to catch competitors

Innovation is both a vaccine against market slowdowns

(recession) and an elixir that rejuvenates growth6

Do nothing and fall behind, or run hard to stay where you are .

If you want to go somewhere else,you have to run at least twice as fast as that


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The innovators DNA: 5 secrets of innovators

Put together ideas and information from differentareas in unique combinations. Creativity isconnecting things.

Associating

Ask provocative, challenging questions (theimportant and difficult job is never to find the rightanswers, it is to find the right question).

Questioning

Scrutinizing common phenomena, particularlythe behavior of potential customers, to produceuncommon business ideas.

Observing

Try out new ideas by creating prototypes andlaunching pilots. Construct interactive experiences& try to provoke unorthodox answers.

Experimenting

Devoting time/energy to finding and testing ideasthrough a network of diverse individuals. Go out ofour way to meet people with different kind of ideas

Networking

7

(HBR, 12/2009)

Skills of action are more important than skills of thinking


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Innovation cant be structured: similarity with Jazz

Jazz

Music has a grammar

Jazz = improvisation

respecting musical rules and

based on experience and

practice rules of thumb

Innovation

Innovation has a grammar

the mechanism that

allows innovative ideas to

be expressed and applied

Algorithmic but also

heuristic thinking

8

Combine and balancing control and freedom


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Innovation is a cooperative task

Innovative ideas come from individual, but implementing

innovation to create value demands collaboration/ collective work

The 10 faces of innovation (Tom Kelly)

The organizing roles (personas)

The Hurdler

The Collaborator

The Director

The building roles (personas)

The Experience Architect

The Set Designer

The Storyteller

The Caregiver

The learning roles (personas)

The Anthropologist

The Experimenter

The Cross-Pollinator the T-shaped person

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Innovation must be organic: similarity with motivation

Innovation is like motivation

You dont motivate peopleyou create the appropriate environment in order to facilitate

people to motivate them-selves

You cant enforce or push people to innovate

you create the appropriate environment in order to facilitate

people to be more creative and to implement effectively

innovative ideas

Innovation must be organic

Cultivate innovation spirit and behavior

Accelerate the natural process of innovation

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Nurturing the innovation reef(Mario Marino)

Metaphor: Innovation is like a coral reef.

Marine biologists dont fully understand what causes reefs toform, but we do know that human actions can nurture or harm

the process.

The same is true for innovation a natural,

chaotic, unpredictable process that is hard,perhaps even impossible, for well-meaning

outsiders to foster.

If we try to control or micromanage innovation, we risk

squeezing out the very life forces that give rise to successfulnew ideas.

Instead, we must focus on finding ways to nurture and

accelerate the natural processes of innovation once theyve

begun grow organically.

11

http://whatmatters.mckinseydigital.com


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Innovation is not easy

Innovation is not easy. Not a function. A way of leading people

Gary HamelCompanies dont have innovation DNA

It is like to ask a Dog to stand and walk on two feet !

When you turn your head, it turns to its normal position

It is made to be a quadruped animal, not a biped

Changing a mechanical watch to a digital one ..

Innovation needs

Open mind

Fantasy and dare

InitiativesResult orientation

Passion

Is innovation a matter of luck ? In some cases yes, but

Luck = Preparation X Opportunity

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The pillars of innovation

Adopt the right incentives

Remove barriers

Commitment & courage

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Right incentives for innovation

Facilitate organic growth of innovation giving right incentives

Establish creative environment

Leaders give the example

Innovators need time and basic resources (tools, access to knowledge bases

etc) in order to have the chance to be creative

Ensure adequate financial support

Cultivate and develop skills (the 5 secret skills) and roles

Facilitate open communication and networking

Form teams with mix of diverse profiles

Allow observing close to customers

Facilitate experimentation

Train to improve creativity (alternative methods, means of training)Encourage in difficult times and especially after a failure

Recognize

Publicity for positive results

Reward success stories (communicate, celebrate, promote)

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Managing corporate innovation

Top management commitment (the culture of entrepreneurship and risk

taking can only be driven top down)

Leaders promote innovation much more than managers

Leaders are willing to open new directions

Managers are more focused on specific goals

Large organizations are populated by managers

Clear direction and organization (innovation czar / R&D / coordination unit,

clear procedures to process innovative ideas and initiatives)

Decentralized ideas conception, but centralized management of ideas

implementation (it is a collaborative task)

Dont focus only on products. Innovative ideas can come from every function

or process (networks, marketing, support customer experience)

Open and sincere communication

Coherent policy for recognition, rewardsand compensation

Risk and failure tolerance

Creative abandonment (Peter Drucker) of projects, processes and practices

that have failed15


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Barriers to be removed

Tight or dysfunctional processes, procedures and inflexible

polices (the veto of various management layers for theadoption and implementation of new ideas strangle innovation)

Established beliefs (Orthodoxy)

Intolerance against failure and risk aversion

Rewarding conservative behaviorSilos autonomy High walls

Lack of self-reliance / fatalism

Stubborn

Prefer to fail than to change

Considering that every disadvantage/problem is a sign of failure

Command and Control attitude: everything must

be controlled and everything must be counted

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Externalize innovation

Adopt customer-centric or citizen-centric operational models

Easier access to products and services better customer experience

Interaction allows to record customers problems, barriers to overcome,

needs and expectations

Transparency and flexibility to adapt services (segmentation,

personalization)

Exploit the facilities offered by Web 2.0 technologies, SocialMedia and Consumerization ofIT to implement innovative

service combinations (public, corporate). Customers / citizens

can

have access to information and services and

participate to collaborative initiatives (mix knowledge and experience)

This operational externalization is extremely

important to expand target market

exports of goods and services17


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Public innovation is more difficult

To implement an innovative idea you need the agreement of 3

teams of interestThe team which exercise power (authority to change things)

The team which owns / manages the necessary financial resources

The team which will be invited to implement the idea

In Public Sector these 3 teams are separate and dispersed.They have their own agenda and they are under different

pressure and influence (economic interests, ideologies,

political intentions and goals, personal agendas etc)

difficult to reach decision, frictions during execution

In Private Sector all these 3 teams are expressed by the top

management (in many cases completely decentralized)

easier to decide and to implement

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Some social prerequisites

Politicians behavior

Adopt medium to long-term planning horizon pro-innovationgovernance

Introduce processes facilitating innovation

Avoid misperception of innovation (i.e. simple introduction of ICT)

Avoid innovation as decoration

Radical changes, where needed, and continuous improvement

Important: adopt Human Resources flexible policies

Acceptance of diversity / differentiation is crucial

In public dialogue

Inside the political parties

In mass media

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Some social prerequisites (2)

Institutionalizing / Socializing Innovation

Promote collaboration and networking, national competition / pricesfor innovation

Support third sectors initiatives

Financial or administrative support to independent, reliable

organizations working as catalysts (incubators, accelerators) in the

process of organic development of innovationNESTA (UK) is a great example

Tolerance to failure (not to negligence)

Bankruptcy legislation (a project law is ready ?)

Greek reality: one failure

failure for everSuccess is going from failure to failure with no loss of enthusiasm,

Winston Churchill

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Some policy directions for innovation

Infuse innovation in all investments in priority sectors

Tourism

Web services mash-up, content for thematic tourism, location-based mobileservices, augmented reality applications, smart tags

Energy - Environment

Smart grid networks for energy consumption (real-time monitoring)

Wireless sensing applications

New agriculture (entrepreneurship, added-valued products, remotesensing, etc)

Food (smart tags, traceability of goods etc)

Health (digital monitoring services, digital communities etc)

Culture (virtual reality, mobile services, rich content etc)

Embed all new highways, roads and bridges with fiber-opticcabling and micro-sensors to create an interconnected nervous

system (control traffic congestion & maintenance)

Promote cooperation between public and private sector to

establish e-government infrastructure21


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Can public organizations innovate?

Yeeeees !

Universities, Research Centers, Schools

KEP

Electronic services

OpenGov

Manage the risk of high expectations

Many innovations coming from private sector are funded bypublic sector

Public innovation must be well organized because

There is no mechanism to evaluate and implement innovative ideas

No resources are dedicated to innovation inside public organizations,except Research and Universities

Public innovation isnt always a good thing. It must be treated seriously

Public sector fails to innovate fast enough to cope with so many

challenges (economic, social, technological)

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How innovative changes could be implemented

Implement the new technology / operating practice in a new

space, isolated from the old workforce and old physicalsurroundings

Get the system work quite well in this new location

Propagate it to other locations

Standardize and decentralize services and policiesReuse infrastructures and service platforms

Use service integrators/ aggregators (easier with service-

oriented IT infrastructures)

New scripts of serviceCopy successful innovations from private sector (contact

centers, relationships management, web interaction etc)

KEP (Centers for Citizens Service) is a good example

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Areas of innovation using ICT

Technologies

Combine cloud assets and service mash-up

Exploit smart-phones and tablets functionalitiesSmart-boards

3-D Printing

Quick Response Code QR Code (Augmented reality)

Human augmentation (portable or implanted devices

which improve human physical or mental functions)

RFID / contactless applications

Internet TV

Exploitation

Multichannel service

Viral marketing

E-booksHealth self-monitoring applications

Consumerization of IT. IT applications are incorporated

inside consumers devices (smart-phones, GPS, video/

audio devices etc) easy access to personalized

services24


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3-D Printing Production on Cloud !Someone designs an object (a perfume bottle, gear or airplane

wing)on a computer and then sends that design to a 3-D printer.The printer does not draw a picture of the item on a piece of

paper, as an ordinary printer would do. Instead, it physically

builds the object, by squirting melted plastic,

glass or liquid metal out of nozzles. The material

follows the computer design, and layer by layer,

the printer constructs the object.

3-D printing enables the full realization of mass customization,

which feeds our insatiable desire to own one-of-a-kind things.

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Open innovation: customers or citizens participation

Innovation: from light improvement to radical, disruptive change

Customers cant offer radically new innovative solutions

but customers can trigger innovations:

Can express comments on products and services

Can describe their problems, needs, barriers, expectations

Can evaluate innovative solutions

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Henry Ford is quoted as once saying:If I asked people what they wanted, they would have said,

faster horses

Level of innovation

Improveefficiency

Improveeffectiveness

Changebusiness

model

Henry Ford is quoted as once saying:If I asked people what they wanted, they would have said,

faster horses


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Customers participation

Data analysis behavioral patterns / clusters

Service simplification / alternative ways of Personalization

And much more.

but it is like Janus .

You create high expectations

Cost and effort to manage expressed ideas (the $ 12.50 idea)

Pressure to change many things and quickly27

Powerful tool to listenand influence customers

Effective tool incustomers fingers

to exercise pressure

The double face of Janus


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Fail ! The road to succeed !

28http://ow.ly/4mRrV


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Fail ! Fail ! Fail !

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Some Greek initiatives supporting innovation (indicative)

ELTRU Lab of Athens University of Economy and Business

(AUEB)

Microsoft Innovation Center

Companies Effect Communications SA AvantBrand SA, with

Knowhow.gr

Initiatives: ennovation by ELTRUN, SmartBusiness, Open Coffee,Open Fund, greekstartups.gr

H Ellada kainotomei(Greece Innovates, by Eurobank EFG

and SEB

Cluster of Cooperative Schemes CoralliaZeyxis network (Ministry of Education)

Culture for Innovation 03 2011

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