7. “ New Concepts in Innovation” Business Council of Australia (2006) The prevailing view among Australian business leaders and Government agencies is an old one – that creativity is the domain of the artist or researcher. OLD INNOVATION NEW INNOVATION Australian business and public sector management is imbued with a sense of research and development but it lacks the skills, knowledge and confidence to work creatively and innovatively in the new business paradigm.
11. Yes = 44.5% No = 25% Elaborated responses ( 30.5% ) Only 9.3% reported having a formal innovation strategy and allocated budget in place ‘ The Innovation Gap’
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13. Supporting factors Barriers Leadership and support from top management Culture, climate and identity Resistance to change Org culture and climate Rewards and recognition Competition and deregulation, need and diversity Corporate structure Workloads and Lack of skills Supporting factors and barriers
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16. Business Creativity & Innovation Framework (BCIF) Product People Process Press Innovation 4Ps ®
17. Innovation 4Ps: A Whole System Innovation People Process Product Press
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19. Organisational Climate Organisational Innovation Organisational Culture Leadership Style Resources & Skills Structure & Systems Determinants of Organisational Creativity and Innovation (AIC)
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21. The First P of Innovation Press Refers to the context (ie: climate, culture and environment) Press is short for pressure - that is, the context within which people, process and product operate. The environment, both internal and external to the organisation, presses in on and out from the organisation.
26. Organisation Creativity Increasing Energy & Effectiveness Under Pressure Building Trusting Relationships Creating the Future Innovation & Unique Potential Success Initiative
27. Innovation within the Organization Management Practices Organizational Motivation Resources I
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29. Impact of the Work Environment Work Environment Individual/Team Creativity Resources Management Practices Organizational Motivation Task Motivation Expertise Creativity Skills Creativity I nnovation I C
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31. The Second P of Innovation Process What are the mechanisms and processes that lead to innovative products, services, processes or procedures?
32. 4-Power Innovation Clarify Pinpoint the problem to solve Ideate Come up with new ideas Develop Refine ideas into strong solutions Implement Put the plan into action
33. Diverging and Converging Converging thinking Judging , assessing options, focusing, making decisions. Diverging thinking Generating lots of options and ideas, making lists. Green light = speed Red light = brakes on! These are two mutually exclusive mental activities
34. The Third P of Innovation People Addresses the issues related to PEOPLE, such as individual differences and teamwork
36. On average, it takes about 3,000 raw ideas to lead to a commercially successful product or process Stevens & Burley, 1997 Experiments Initial ideas New product
38. The Fourth P of Innovation Product What makes products, services, practices or procedures innovative?
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44. S tr a te gic In no v at ion L ea d er sh ip Thankyou
Editor's Notes
How many light bulbs did Thomas Edison break before he found one that worked?? “I have not failed, I’ve just found 10,000 ways that won’t work”. He said. “ Many of life's failures are people who did not realize how close they were to success when they gave up.” Edison said.
So today, unless anyone has any other creative ideas, we would like you to enter the creative space and consider innovation. We want you to have an enjoyable experience and to also be confident in taking your next steps in helping your team or organisation become more innovative. To do this we will…. read slide So why Innovation?? Next slide
So what is the difference between creativity and innovation? Next slide
As international competition intensifies and product life cycles shorten, the pressure to innovate increases. Historically, innovation has evolved from simple models of pushing new products onto the market through to a range of business systems models – Time and Motion (40’s) , Management by Objectives (70’s), Business Productivity Re-engineering (80’s) to today’s Creativity and Innovation. Next slide Research is showing that organisations that put in place ideas management systems around innovation tend to perform far better across their key performance indicators.
This graph shows the results of research conducted in 2002 with 317 Australian firms from a cross section of industries. It highlights that those organisations with knowledge management systems improved in performance based on the organisation’s ability to innovate – either through improved processes or improved products and services. This shows that top innovators improve their market share and their return on investment.
While all this is true, we have a depressing picture from the Business Council of Australia in March 2006 is quite an interesting report “New Concepts in Innovation” that … (read slide) What do you think of that?? But you might say “we’re innovative..” Both State and Federal Governments have also made strong commitments to innovation. But lets consider – do these efforts remain in the old paradigm of innovation where the focus is on artisan, the researcher and the scientist. Where little attention is paid to innovation across the business spectrum. (next slide)
Now back to WA, in 2004, we at the Applied Innovation Centre, surveyed almost 100 managers in 46 organisations across 5 different industries and we wanted to find out ….
Only 9.3% reported having a formal innovation strategy and allocated budget in place 25% had no innovative strategy at all 44.5% said that they did have innovative strategies 30% indicated they had innovation strategies of sorts “ in patches”, “in other departments” “we are innovative compared to other organisations”. So what does all this say?? Next Slide
In summary (read slide) … So many people are paying lip service to innovation and others are finding it difficult to fully implement innovation strategies in their organisation. Why is this so??
Some of the barriers to innovation are listed in the right hand column
Your journey to being an innovative organisation can be made more simple when you develop a clear picture of your organisation, and its people and develop a comprehensive and integrated approach to innovation. Now for some here today, this may appear difficult to manage across a whole organisation. So I encourage you to pilot some of the ideas we are speaking about today, even in a small work group or team..
Organisational Innovation that is sustainable requires attention to the 4 Ps. Press, People, Process and Product. These are outlined in the Business Creativity & Innovation Framework (BCIF – show it ) – our guide to Business Innovation that we developed over the past few years. Now I do need to be clear here, our aim here is to encourage you to be innovative. That’s our passion, if you choose to use information and support from others, that is excellent as long as you move towards increased innovation. What we want for you today is that you develop some techniques and the courage to help you and your organisation become innovative. So, the 4 Ps – Press, People, Process and Product Next slide
An Innovative Product is the result of: Individuals and teams (Click) coming together with a breakthrough process, (Click) within an environment (Press) that facilitates and nurtures innovation.
And of course, the organisation itself operates in a way that either supports or limits creativity and innovation. There are 10 areas or steps that need to be covered in a fully comprehensive innovative strategy. These are: Read from slide …. Each step needs to be endowed with the resources, methods and mechanisms for innovation, for the organisation to be truly innovative.
At the same time our research revealed the main drivers or determinants of Organisational Creativity and Innovation. Next slide
And here we are able to link the Key Drivers of Innovation, with the 10 steps and the 4Ps of Innovation – all nicely integrated. Notice how certain Drivers are linked easily with one or two of the 4ps through the 10 steps – the main components of Innovation.
In order to understand our PRESS or environment … Next slide
We recommend that an organisation seeking to be innovative conduct an analysis of its orientation towards innovation. Firstly – what is the climate and culture like – how does it support innovation and creativity? ASK: Does anyone use climate/culture surveys here?
We use a tool called the Keys Impact of Work Environment Survey. We have chosen this because it is orientated towards innovation. Its key dimensions are: Organizational Motivation – the basic orientation of the organization toward innovation; shared vision; providing rewards and recognition; lack of internal politics, and lack of overemphasis on the status quo. Resources – everything the organization has available to aid in the area targeted for innovation, including time, funding, information and materials. Management Practices – allowing freedom and autonomy in the practice of work; providing challenge; specifying clear strategic goals and forming work teams comprised of individuals with diverse skills and perspectives Expertise – knowledge, talent and skill in the particular area where the individual is doing creative work. Creativity Skills – having a flexible problem-solving approach, persevering on difficult problems, and taking risks with solutions to problems . Intrinsic Motivation – the desire to solve the problem or accomplish a task because it is interesting and personally challenging.
The results of these two assessments or analyses provide you with A blueprint for action – a strategic approach to Innovation in your organisation.
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23. Four-Power Innovation Read each stage from slide This may appear quite simple at first, glance, but it is not easy to implement without a clear methodology and the associated instruments at each stage. As an example - problem clarification – a very important step that people often overlook. Clarify – Elevator example. In a new highrise building, People complained about the lifts being too slow. Engineering solution – make lifts go faster. Someone then enquired further and found that people were just getting bored. Different problem – the clarification stage. So what was the solution?? Mirrors Take a look at these four modes of thinking and consider how you interact with these modes. One of the goals of today’s presentation is to recognize that we don’t all engage in the breakthrough thinking process in the same way.
Then we’ll diverge (the red) Judging, assessing options, categorising Making decisions and focusing Next slide
However, for innovation to be sustainable in an organisation, it needs leadership. What leadership style do you or your leaders bring to the organisation and the innovation? Leadership development is often required to help leaders release their people to be innovative and to establish teams and systems that support innovation. Also, what are the key attributes for individuals and the team to make innovation happen in the team and organisation. And how do team members fit within the innovation process?
8. FourSight Preferences Earlier, we talked about the four basic areas of the breakthrough thinking process, also think back to the river exercise. At this point and from our exercise, you can probably see you will have a preference for a particular type of thinking… Not surprisingly, those who have a preference for clarifying the situation are called Clarifiers. Those who have a preference for generating ideas and solutions are called Ideators. Those who have a preference for refining and developing solutions are called Developers. And those who have a preference for acting to implement plans are called Implementers. A proper FourSight assessment will tell you how strong your energies are for each preference.
10.30am On average it takes about 3,000 initial ideas to lead to one commercially viable product or process
This is the profile of a team. Describe. Low clarifier, good ideator, low developer, reasonable implementer. Now what could happen in a breakthrough innovation process creative problem with this team?? Plenty of ideas about a poorly defined problem or the wrong problem. Also very limited idea development preferences – but higher on implementation. So lots of ideas could be poorly developed and implementation may be unsuccessful.
And having brought people together into a breakthrough innovation process, we now have a product or a solution.
Skip if no time PRODUCT What makes a product, service, process or procedure innovative? It is useful to think of product/service as a collection of consumer benefits – technical, non-technical and attitudinal Innovation has three distinct determining characteristics: Novelty: refers to the originality of the product, service or procedure: that is, will users be attracted to it because of its uniqueness? Resolution: refers to whether the idea, product, service or procedure will ‘fill the bill’ and be relevant to the problem or unanswered need at hand. In other words, the innovative product or service has to be perceived as ‘the answer’ to the existing challenge, problem or situation. Elaboration or Synthesis: relates to style and how the product, service or procedure is completed and presented. Is the product, service or procedure: Well-crafted and/or appealing to users/consumers? Well presented or packaged? Simple to used or understand? User friendly? Easy to commercialise? Will people buy it and/or use it?
So we have just spent the last hour and a half considering ways of capturing and managing ideas in a way that is useful to an oragnsiation – that’s workplace innovation and ideas management…. Read from slide… In an integrated way across the team or the department or organisation
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