The Science of the Possible - Mining Innovation
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The document discusses the importance of understanding and managing an organization's intellectual capital to drive innovation. It outlines a four-phased approach—divine, define, align, and refine—to optimize human, organizational, and relationship assets and create actionable strategies for transformation and patent acquisition. A case study in aerospace engineering illustrates the application of intellectual capital management to improve patent performance and foster innovative capabilities.
The Science of the Possible - Mining Innovation
- 1. The Science of the Possible david.daniel@casewise.com David Daniel Understand Your Organization's Intellectual Capital to Harness the Power of Innovation
- 2. 2 © 2015 Casewise - confidential Intellectual Capital is the Key to Innovation KnowYour Assets Human Capital – Employee Skills – Corporate Experience – Organizational Abilities Organizational Assets – Patents – Trademarks and Copyrights – Proprietary Processes and Databases Relationship Assets – External Value Added • Suppliers and Customers • Social Capital
- 3. 3 © 2015 Casewise - confidential Inputs to Results Motivation for Change,Transformed into Actionable Information Corporate Strategy regulation Infrastructure Lifecycle Management Application Portfolio Management Data Asset Lifecycle Organizational Change Intellectual Capital Mining Value Chain Analysis Business Process Optimization Innovation Engineering Business Landscape Analysis Inputs Results
- 4. 4 © 2015 Casewise - confidential Four Phased Approach Divine | Define | Align | Refine Align Define Divine Refine Process Mapping Capability Map Engineering Survey Emergent Systems Innovation Engineering Culture Shift Capital Governance Strategic Partnerships Licensing Agreements Patent Filings Copyright/Trademark Management Skills/Experience Catalog
- 5. 5 © 2015 Casewise - confidential Unknown Capital is Rarely Leveraged Optimally DiscoverYour Assets - Divine Business Landscape Mapping – Quantifies Use of Known Capital – Discovers Opportunities for Formalization • Unpatented Patterns/Methods • Critical Skills Catalog Technology Landscape Mapping – Proprietary Data Structures – Proprietary Methods/Interfaces Builds Communication Channels – Business and Engineering Share Common Language – Provides a Mechanism for Communication Divine
- 6. 6 © 2015 Casewise - confidential Unknown Capital is Rarely Leveraged Optimally UnderstandYour Assets - Define Confirm Capital Ownership – Assign Specific Management – Disclosure of Capital Usage Formalize Corporate Capital – Document Capital Asset and Footprint – Standardize Methods for Management Define Areas of Interest – Develop and Maintain “Hot Spot” Vigilance Define
- 7. 7 © 2015 Casewise - confidential Unknown Capital is Rarely Leveraged Optimally ManageYour Assets - Align Capital Governance – Incorporate Capital Management into Change Processes – Categorize and Monetize Capital Assets Transformation – Construct New Business Models Based on Managed Capital – Optimize Human Capital on Required Skills Legal Strategies – Align Capital to Enforcement – Audit to Ensure Infringement Protection Align
- 8. 8 © 2015 Casewise - confidential Ideas Into Action: EngineerTransformation and Innovation UseYour Assets - Refine Strategic Business Use – Create New Revenue Streams – Open New Market Opportunities – Optimize Distribution Channels Build “Capability Block” To Engineer Innovation – Reduce Risk Through Known Combinations of Capabilities – Foster Creativity Through Communication and Collaboration – Build Focus Areas Based On Strategic Direction Refine
- 9. 9 © 2015 Casewise - confidential Lagging Behind the Industry, the Company Needed to Secure Its Leading Position Use Case – Aerospace Engineering Poor Patent Performance • FY 2011: 18 Patents Granted but 1,200 Patents Granted to Rivals • Engineers Could Not “See” The Value • Intellectual Capital Managers Did Not Know the Business
- 10. 10 © 2015 Casewise - confidential Lagging Behind the Industry, the Company Needed to Secure Its Leading Position Use Case – Aerospace Engineering Divine – Retroactive Intellectual Capital Mapping – Business Process Mapping Led to Patentable Items – Technology Mapping Led to Copyrightable Algorithms and Methods Define – Actionable Information – Company Able to Document and File Numerous Patents/Copyrights – Intellectual Capital Managers Developed “Hot Spots” for IC Align – Strategic Impacts – New Technology Licensing Agreements (Some with Competitors) – Legal Enforcement (and Avoidance) Refine – Innovation Engineering – “Capability Block” Concept Led to Combination/Re-Combination – IC Optimization Led to New Methods and Products
- 11. 11 © 2015 Casewise - confidential Intellectual Capital Management Harnesses the Power of Innovation Power to Innovate Focus on Specific Areas for Targeted Innovation Innovation drives Transformation on Two Fronts – New Products/Markets • Reduce “Signal to Noise” • Extend Partnerships – Evolve Current Business Model • Reduce Risk Through Known/Managed Capabilities • “Right Size” Efforts Drives Culture Change – Embeds Innovation Engineering Into Every Governance Process – Fail Early, Fail Forward
Editor's Notes
- #2: Hello, my name is David Daniel. I am a principal consultant with Casewise. I am based in the United States and live in Mexico, but I am a global resource… I’ve heard quite a bit around this conference about business outcomes from EA…. so let’s talk about the intellectual capital of an organization and how it builds a foundation for innovation. Intellectual Capital is what defines your company as unique. It is – quite literally – what makes your product or service different from the competitors. We tend to think of capital as simply patents and trademarks, but it is much more than that. It represents all the elements that make your company’s offerings special. It is what differentiates your product among a sea of competitors. In a recent McKinsey pole of CxOs, fully 65% of executives identified intellectual capital as a concern and only 27% felt they had an adequate method to manage it if they knew what it was.
- #3: What is it? It is the specific DNA of your organization. We like to talk technology in the EA world, but It is the people, with their unique skills – measured at an organizational level – that truly makes a company what it is. Cumulatively, there is a corporate level of experience that can be measured and applied to specific task. The traditional elements of intellectual capital – the patents and trademarks – are obviously a major portion of the catalog… but also the value added relationships we find with external sources. At first, you may think this is completely subjective, but when you extend your thinking to things like the value of the relationship of social capital or even the ability to trace sustainability metrics into your supply chain… these relationships become real and meaningful. Not only what they are, how you use them. Sword and shield.
- #4: While we have been talking about business results, we can’t forget that enterprise architecture builds a COMPLETE picture of the organization. Given that it leverages aspects of both product as well as resources, we need to go looking for intellectual capital at the crossroads between them. Intellectual capital is not limited to one area, it can exist in one or many areas within the organization. Again, it is what you do that makes you unique… Where does this all fit? Why are we talking about this at an EA conference? It is central to all disciplines of ‘traditional EA’ as well as extended use cases. It leverages technical, business and organizational aspects to ensure a truly cross-organizational survey of capital assets
- #5: Let’s talk about the four phases of intellectual capital management and analysis Iterative in Nature – long cycle in benefits DIVINE DEFINE ALIGN REFINE DIVINE – A survey of the organization DEFINE – Formalization of the elements identified in the discovery phase ALIGN – First use of assets in the ongoing model REFINE – Use of assets to transform the business model and build culture shift Let’s explore each of these in detail…
- #6: A survey of the known landscape. Talking to engineers, production operations, logistics, sales and marketing… Everything that makes your company tick. There are ways to optimize the effort, but the primary outcome from this phase is a common understanding of what intellectual capital looks like and a mechanism to convey that information to the correct stakeholders.
- #8: Sword and shield
- #9: The rubber hits the road. Leveraging an idea similar to TOGAFs Enterprise Continuum, Capability Blocks are created to combine and recombine to drive engineered innovation Reduce Risk by Building off known capabilities Foster creativity by open communication between strategists and the people who do the work With information flowing both ways, operations can drive new business models as well…
- #10: Let’s take a look at a use case from an aerospace company in north america. And see if any of these elements start to sound familiar to you… I was called in on a mandate from the CEO’s office to move what was a dismal performance. The chief knowledge officer gave us the challenge that was simple enough: improve the patent performance The initial findings were somewhat surprising… engineers and fabrication staff had reluctance to identify intellectual property because they Either did not see the value or thought the process was too complicated and not worth the effort. The intellectual capital managers were left trying to understand the business, but they did not have a clear enough, detailed picture of what the business did To be able to identify targeted materials and practices As these things go, in the end, we got much more than we ever expected in the beginning.
- #11: Opened the communication channels between IP managers, corporate strategists and most importantly, operational roles Found new licensing opportunities…some even with competitors. Changed the business model by passing innovation risk out to partners, while retaining platform marketability.
- #12: But you can’t manage it if you don’t understand it. The Sword helps create innovation, the Shield protects the company from harm. Knowing where to use each, it critical to managing the strategic future of the organization. For the long term success, the factor identified as most important by the CxO level was a shift in culture. By actively involving all parts of the company in intellectual capital mining, the foundation was built for future innovation and success.