© Copyright Custell Pty Ltd 2004 - 2009 1
• The Relationship Lifeblood:• Leverage the Relationship• Improve Intimacy• Create Value• Reduce cost
Partnering for Innovation
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© Copyright Custell Pty Ltd 2004 - 2009 2
Key Supplier• Quality, on time, to
specification, solution delivery
• Differentiation• Reducing Costs• Adding value• Innovation• Providing expertise
Vendor• Trader• Price is No.1
requirement• Little differentiation• Low Margins• Little Loyalty
Partner• Shared
1. Trust2. Strategy and information3. Vision and Goals4. Risks and Benefits
• Discover, create, provide world-class products and services
Degree of:• complexit
y• competitiv
e advantage
• customer satisfaction
• innovationBusiness Value
(Reference – Tony Lendrum – The Strategic Partnering Handbook
Effectiveness Objectives"Solve my problems”
Competitive Advantage"Make Me Money"
Efficiency Objectives"Make It Cheaper"
Relationship Characteristics
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© Copyright Custell Pty Ltd 2004 - 2009 3
“Innovation is the Lifeblood
for sustaining business relationships”Tony Lendrum
Innovation is about people and enterprises,
not about science and technology
– its all about attitudes.
Australian Business Council
Partnering for Innovation
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© Copyright Custell Pty Ltd 2004 - 2009 44
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Yr 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5
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RETENTION LIKELY
RETENTION UNLIKELY
Typical Relationship Cycle over a 5 year services contract(Key assumption – Supplier is consistently meeting SLM’s)
Custell Research 2004 - 2008
Customer Decision PointRenewal or Tender?
With Partnering & InnovationWith Partnering & Innovation
Without Partnering & InnovationWithout Partnering & Innovation
Relationship Life-Cycle
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© Copyright Custell Pty Ltd 2004 - 2009 5
Innovation or Invention
Innovation or Invention
Innovation
Process of change that adds value. An enhancement modification, add on or alternative application of an existing product/service or process in such a way as to increase its value to the user
‘Incremental’ ‘Discontinuous’ ‘Disruptive’ ‘Architectural’
Invention (Breakthrough innovation) Product, service or process without precedent
“Breakthrough” “Radical”
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© Copyright Custell Pty Ltd 2004 - 2009 6
Challenges to Innovation In Relationships
1. AssessInnovativeness
2. PlanChange
3.Map the Journey
4. Systemise Innovation
5.Measure
& Manage
INNOVATIONCHANGEMODEL
1. Audit and assess Innovativeness
2. Plan and Implement Change - Break down the barriers to Innovation
3. Map the journey – Empower the teams
4. Systemise Innovation – Collaborate and manage progression
5. Measure, Manage and reward
6. Assess Program – Drive continuous improvement
Innovation Change Program
1. AssessInnovativeness
2. PlanChange
3.Map the Journey
4. Systemise Innovation
5.Measure
& Manage
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© Copyright Custell Pty Ltd 2004 - 2009 7
Innovation Model
Innovation Model
Model
$$
Business Case
Business Case
REALISINGREALISING
$$
COMMITTING
COMMITTING
Break Down the BarriersBreak Down the BarriersSUPPLIER & CUSTOMER
CREATING THE CLIMATECREATING THE CLIMATESUPPLIER & CUSTOMER
Facilitate Innovative IdeasFacilitate Innovative Ideas
IDEAS
SEARCHINGSEARCHING
IDEAS
Opportunity Funnel
Tracking
Impact/Scope
Impact/Scope
EXPLORING
EXPLORING
OPTIMISINGOPTIMISING
Reference -Barnes & Conti Innovation Journey Map
Reference -Barnes & Conti Innovation Journey Map
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© Copyright Custell Pty Ltd 2004 - 2009 8
Innovation Model
Innovation Model
Model
Manage anInnovation
Manage thePipeline
CREATING THE CLIMATE CREATING THE CLIMATE PREPARATION & TRAININGSUPPLIER CUSTOMER
SEARCHING(Facilitation, Identifying, Hunting, Gathering)
SEARCHING(Facilitation, Identifying, Hunting, Gathering)
INNOVATIONWORKSHOPPROGRAM
INNOVATIONWORKSHOPPROGRAM
INNOVATIONBUSINESS
INTEGRATION
INNOVATIONBUSINESS
INTEGRATION
IDEAS
REALISINGREALISING
COMMITTING(Business Case)
Commit?
COMMITTING(Business Case)
Commit?
Tracking
EXPLORING(Evaluate, Qualify, Quantify, Prioritise)
Filter
EXPLORING(Evaluate, Qualify, Quantify, Prioritise)
Filter
$$ OPTIMISINGOPTIMISING
CREATING THE CLIMATE CREATING THE CLIMATE SUPPLIER CUSTOMER
SEARCHINGSEARCHING
IDEAS
REALISINGREALISING
COMMITTING
COMMITTING
Tracking
EXPLORING
EXPLORING
$$ OPTIMISINGOPTIMISING
Reference -Barnes & Conti Innovation Journey Map
Reference -Barnes & Conti Innovation Journey Map
1. AssessInnovativeness
2. PlanChange
3.Map the Journey
4. SystemiseInnovation
5.Measure
& Manage
1. AssessInnovativeness
1. AssessInnovativeness
2. PlanChange2. PlanChange
3.Map the Journey
3.Map the Journey
4. SystemiseInnovation
4. SystemiseInnovation
5.Measure
& Manage
5.Measure
& Manage
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© Copyright Custell Pty Ltd 2004 - 2009 9
Innovation Program - Summary
Registers – tracking progress
Two Registers:
1. Opportunities
Identifies opportunities for innovative solutions
Provides focus for innovative activity
Visual to all parties
Sets ‘Value’ objectives
2. Innovations
List of innovations in the funnel by Opportunity
Description, status, value, team members
Basis for tracking progress
Used for pipeline management
Benefits:
Provides focus for innovationSimplifies trackingSingle source of summary information
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© Copyright Custell Pty Ltd 2004 - 2009 10
Innovation Program - Summary
Collaborative Workbenches
Benefits:Effective cross functional teamingEasy management
Workbenches Provide:Maintenance of RegistersSingle source of information across diverse organisationsSecure Team CollaborationJourney map GuidanceVisual workflowTemplatesContent ManagementDocument ManagementDiscussion Threads
Team Workbenches – 3 levels:1. Overall Program2. Each Opportunity3. Each Innovation
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© Copyright Custell Pty Ltd 2004 - 2009 11
Team Collaboration
Solution Creation Tools & Techniques
Assessment Tool
Prioritisation Methods
Pipeline Management
Measurement – progress & value
Tools Deployed
Tools Deployed
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© Copyright Custell Pty Ltd 2004 - 2009 12
Innovation Program - Summary
Innovate for OutcomesSystem based teaming tool for facilitatorsFocuses the team on a specific Opportunity or challengeCreatively generates ideas that achieve required outcomesUses fishbone methodincorporates a team voting tool to prioritise ideas
“Innovate” Searching Tools
Root cause solutionSystem based teaming tool for facilitatorsFocuses the team on analysing and solving the root cause of a problemCreatively generates ideas that will correct the root causeUses fishbone methodincorporates a team voting tool to prioritise solutions
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Innovation Program - Summary
1. “Innovate” for Teams (Custell - half day course)
Understand what makes an effective innovation programAssess and rank an innovative idea relative to its value and scopeManage an idea through a processParticipate in ‘enterprise to enterprise’ teaming tactics to create value
2. “Innovate” Team Leader Accreditation (Custell - One Day course)
Articulate the characteristics of an effective innovation programUse Innovate tools to facilitate team meetings to ‘search’ Use facilitation tools from Innovate to ‘explore’ and ‘commit’Manage the Realising and Optimising phasesManage the innovation pipeline
3. Managing Innovation (Barnes & Conti - 1 day course)
Clarify how innovation can become an important part of the way that you do your job and live your life.Develop the mind-sets and skill sets that are appropriate to each phase of the innovation journey.Suggest practical ways in which you can apply skills and insights to your area of influence.
“Innovate” Training
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© Copyright Custell Pty Ltd 2004 - 2009 14
Innovation Program - Summary
An end to end Innovation Solution
INNOVATION CLIMATE: A change program to improve your innovativeness by breaking down the barriers to innovation,
TEAM TRAINING: Training programs to improve your peoples skills in creativity, leadership and innovation management,
SYSTEM: A team based collaboration and innovation management system to support your innovation teams.
PROCESS: Deploy a process (or journey map of your choice) to provide an easy and consistent way for teams to progress innovative ideas.
METHODS: Tools and techniques to generate and test new, creative ideas.
Innovation Program - Summary
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© Copyright Custell Pty Ltd 2004 - 2009 15
Drive measurable value for the customer
Create revenue opportunities for the supplier
Build Competitive Advantage
Build trust in the relationship
Increase Intimacy & Loyalty
Productivity - Maximise return from scarce resources
Easy to manage
www.custell.com
Innovation Program Benefits
Benefits
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© Copyright Custell Pty Ltd 2004 - 2009 16Leveraging Relationships
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