Framework to measure innovation
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This document outlines key aspects of innovation and strategic thinking for a company. It discusses 1) visualizing industry growth and the role of innovation in strategic thinking, 2) portfolio management metrics to track performance, 3) using research to build conceptual models, and 4) ideation through a "sandbox" approach. It then provides details on the innovation process, including insight, targeting, prototyping, and market development. Lastly, it discusses innovation types and notes several factors for innovation success, such as customer focus, technology leverage, process discipline, and an risk-embracing culture.
Framework to measure innovation
- 1. INPUT 1. Strategic Thinking Visualize the growth of the company & industry. Innovation = strategic thinking 2. Portfolio Management Expected metrics vs. actual performance achieved Capital invested vs. return earned (Sales stage) 3. Research Conceptual Model to express our knowledge - Emerging tech, societal change & customer values 4. Ideation Sandbox : magical place - sand and teamwork create limitless possibilities GOALS & REQUIREMENTS RIGHT PEOPLE Explicit Knowledge Tacit Knowledge Patent or Hide Internally PROCESS 1. Insight Find Point of convergence: Technological possibility, Customer understanding & market for actionable opportunities. 2. Targeting 1. Enlarge Existing Pie 2. Create New Pie 3. Sell Pie differently 4. Invent New Pie 3. Innovation Division Prototype > Rapid Development > Transform Idea into POC > Engineering > Lab Testing > Customer Interaction 4. Market Development ROI (Market) Opportunities INNOVATION TYPES: 1. Incremental, 2. Breakthrough 3. New Business Model, 4. New Venture Project Mgmt Skill – High value add Prototyping Speed – Patents Applied Reach Existing / New Customer OUTPUT 1. Sales Build brand and reputation & Customer Satisfaction a. VOC, b. ROI Innovation Purpose: Incremental IMPROVEMENTS to existing products, Create NEW products, Services, Accelerators that Reduces COSTS Framework to measure INNOVATION Stage Objective(s) Output(s) Metric(s) Blue-Ocean Strategy : No one is already competing Red Ocean Strategy : Competitors are getting bloodied While Space Strategy : Market Segments Ignored Noteworthy to Success Create intense customer focus • Scientist, Patents, Dedicated Research lab • Ethnographic Study Create & leverage best new technologies • Open (over closed) Innovation • Virtual Research Lab Create disciplined process • NPD, LSS, DfLSS, TTM Create culture to embraces risk-taking • Gate at Incubation stage • Cross Functional/Org/Technical/Sale team • Fuzzy front end innovation (FFE) Source: Maurice Biche Soft Metrics Qualitative, Provocative Questions, Think deeply Hard Metrics Quantitative, Amendable, Statistical Analysis