Daring Success factors
for Radical InnovationJohan Maresch, Volvo Car Group
Johan Hallendorff, Husqvarna Group
IIA 2015-11-03
questions
What factors from the best of our knowledge and experienceis a ”must have”, ”important” and irrelevant for
success?
• The data in this material is only indicative.
• Please make your own conclusions and be aware that the data is not quality proved nor large enough to represent a sufficient sample.
NOTE
Factors
Most important Irrelevant Obstacles
Financing
Support and understanding from top management
Company processes
Right resources and access to these
Official scunkworks outside ordinary tasks
Momentum and push from intrapreneur
Steering group
Time and engagement from individuals (whole or partly) outside
their ordinary tasks (not sanctioned by boss)
Innovation organisation and their tools and processes
Innovation knowledge and experience
External help with the innovation process (e.g. consultants)
Contacts with partners (external)
Work cross organisations (internally)
Customer/end user understanding
Validation towards end user (customer) / early prototyping
Technical realisation
Implementation of processes (and/or organizational changes)
Implementation of business model
Receiver/handover of final results
Supplier engagement
Factors from first session
at Innovation in Action -15
Added factors from second
session at Innovation in
Action -15
• Get support from internal organization by lobbying using early customer validation
• Sell your ideas, and sell them again
• Get customer insights, don’t ask for customer needs. (push to get bigger change!)
• Handpick your steering group, they should support, not align into old processes.• Decision maker(s) necessary, but advisors prefered
• Set the right objectives for the steering group• Radical innovation demands different objectives then normal projects
• Make sure to treat intrapreneurs right
• Use KPI’s and metrics that supports innovation “Leading metrics”
• Flexible and emerging business strategy
• Think ecosystem
• Separate the radical innovation from normal org/processes, “parallel innovation labs”• Example: Shell “game changer labs”
• Use strategic “buckets” for securing budgets
• Create Push and Pull
• Create a sence of urgency (generally to trigger pull for radical innovation)
How to improve chanses for
successful Radical innovation
Factors found at tankmeeting -15
14 projects from initiating members
Factors
Pre-fetched
information from 14
projects
Success factorsMost important Irrelevant Obstacles Well handled
Financing4 0 2 3
Support and understanding from top management5 1 2 3
Company processes0 5 7 2
Right resources and access to these4 0 3 4
Official scunkworks outside ordinary tasks3 4 0 1
Momentum and push from intrapreneur8 1 0 5
Steering group3 2 0 1
Time and engagement from individuals (whole or partly)
outside their ordinary tasks (not sanctioned by boss) 1 2 1 3
Innovation organisation and their tools and processes2 1 2 1
Innovation knowledge and experience4 0 1 2
External help with the innovation process (e.g. consultants)4 4 0 1
Contacts with partners (external)4 0 1 3
Work cross organisations (internally)4 1 4 2
Customer/end user understanding4 0 1 1
Validation towards end user (customer) / early prototyping8 0 0 4
Technical realisation3 0 6 2
Implementation of processes (and/or organizational
changes) 0 3 3 1
Implementation of business model1 2 4 1
Receiver/handover of final results0 0 5 1
Supplier engagement0 0 1 1
• 1-400 MSEK
• 3-200 active persons
• 6 months to 6 years
• Positive influence: 30M – XbnSEK
• Most large projects
• Most involves R&D and a large portion of the company
14 success projects
0-1057%
11-5022%
51-2007%
201-14%
Approximate size of project(MSEK)
Mostly radical ideas and from WS’s
0
1
2
3
4
5
6
1 2 3 4 5
Nu
mb
er o
f p
roje
cts
Incremental Radical
Incremental or RadicalFrom
Innovation org7%
From colleague
22%
From WS50%
From GIG/JAM/ Idea box…
Other21%
Chart Title
Decision-making and drive
One person
14%
An intrapreneur
with help36%A team
14%
org/projekt7%
Other29%
Who's in the driver seat?
Always within16%
sometimes outside
69%
often outside
15%
inconclusive0%
AutorizationDecissions made within authorization
• In eight of the cases top management and/or just below is the only ones making decisions.
• In two of the cases almost all levels have made decisions
• In only 42% of the cases the Innovation organization is making decisions.
• When do we involve the top management?
Where are the decisions made
7
8
4
3
6
Top management
Managers just below topmanagement
Middel layer boss
First line managers
Innovation organisation
Who made the decisions?
Innovation process
allt8%
stor del8%
innovationsorg hjälper till
34%
innovationsorg litet bidrag
33%
ingen17%
How large part of the success is related to the Innovation process (or org.)?
Correlation size:radical
0
1
2
3
4
5
6
0 1 2 3 4 5
Rad
ical
(1
-5)
Size (1-4)
Korrelationstorlek/radikalt
Linear (Korrelationstorlek/radikalt)
• No real correlation between size of project and how radical it is.
Origin vs size and level of radical
0
0,5
1
1,5
2
2,5
3
3,5
4
4,5
5
0 2 4 6
Size
Origin
CorrelationOrigin - Size
0
1
2
3
4
5
6
0 2 4 6
Rad
ical
Origin
CorrelationOrigin -Radical
From Innovation org 1
From colleague 2
From WS 3
From GIG/JAM/ Idea box 4
Other 5
If you want radical, look for ideas from WS’s or Colleagues?
(And the projects are probably fairly cheap!!)
• The more radical an idea is the more likely it is that there is a engaged individual.
Correlation individual-radical !!
0
1
2
3
4
5
6
0 2 4 6
Dri
ver
Radical (1-5)
correlationorigin-driver
Linear(correlationorigin-driver)
Other 5
org/projekt 4
A team 3
An intrapreneur with help 2
One person 1
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