Building a Growth Engine: How to Drive Sustainable Innovation and Grow.

Building a Growth Engine: How to Drive Sustainable Innovation and Grow.

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  The Growth Engineis a trading name of © System Growth Consulting Ltd 2015 Rob Munro Principal Consultant The Growth Engine @RobMunro4
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  • The Top7 Reasons for the an Innovation Performance Gap The State of The Innovation Nation • What it means to Companies and for Economies Why Innovation Matters • Key Lessons from Real World Concerns What Can We Learn from The Great and the Good? • Lead + Strategy + Tools + Collaborate + Culture + Governance The 6 Keys to High Performance Innovation • What You Can Do to Improve Call to Action © System Growth Consulting Ltd 2015
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  What is Innovation,Anyway? The Innovative Opportunity… The word Innovation seems to be everywhere and we all want it. But there is also a lot of confusion about what innovation is and how to do it! We need to go deeper. Very simply, innovation renews businesses (and economies) and keeps them healthy over the long term. Recent keys findings… » 85% of CEOs ranked innovation a top-three concern (BCG). » CTOs expect revenues from innovation to double by 2020 (ADL). » UK firms are not investing enough – and only 31% of firms are active on innovation (BIS). Top innovators reap the rewards – 6mpa more for a 100mpa company. “The OECD estimates that $1trillion is spent yearly on the creation of new knowledge.” © System Growth Consulting Ltd 2015
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  7 Current IssuesInnovation Management » Do you seek transformation, growth and greater ROI? After years of the squeeze is your new product line is running on empty? » Do your strategies pull in different directions, give mixed signals, or exist in open conflict? » How is your Innovation Culture? Does it work for or against the organisations mission? » Do Innovation projects go wrong? How are you managing risk (which comes with the territory)? Do new offerings fail to deliver the promise? » Are your staff skilled with Innovation Tools and Techniques? Write this down – it’s an essential foundation of great performance! » In the era of collaboration, are your open innovation projects delivering? » Is creative leadership something you do round here? It’s a key skill for the New Leader. Innovation can be a risky business and needs to be carefully managed. © System Growth Consulting Ltd 2015
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  • “The processfor creating something new and valuable” • Latin, Innovare – “to make something new” Innovation • “The process of finding information, a place, or an object, especially for the first time, or the thing that is found”, (Cambridge Dictionary) Discovery • “something that has never been made before, or the process of creating something that has never been made before”, (Cambridge Dictionary) Invention Innovation is… A high level business process critical to the enduring existence of a company. Innovation Management is… “disciplines, tools and approaches that create new growth and maximize the productivity and predictability in investments in innovation“, Scott Anthony, CEO Innosight © System Growth Consulting Ltd 2015
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  Type of Innovation(1)What is it? Example Product Performance The incremental or radical improvement of products Johnson Matthey reducing platinum in a car catalytic convert by 100 times (1970- date) Product System Building “externalities” to the product: add-ons and networks Apple created the iPod + iTunes “ecosystem” (2003) Process The way in which something is manufactured Pilkington’s Float Glass manufacturing technology (1950) Service How a service is delivered or experienced. First Direct’s radical change to telephone- only banking (1990) Business (profit) model The way in which a company creates and captures value Rolls Royce Aero engines shift from only making to service “Power-by-the-Hour” Network Creating and harnessing massive consumer networks Google – “organization the world’s information” And, Don’t be Evil. Structure How you align your talent and your assets MacDonalds develop a unique and long lasting delivery system Channel How you connect offerings to your customers Dell Direct PCs cut out the middle man – disintermediation (1990s) Brand How you express offerings to your customers Virgin Group brings difference to existing industries Customer Engagement How you create an overall experience for your customers Harley Davison’s created a club for riders - the “Hogs” © System Growth Consulting Ltd 2015
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  » What isDriving Your Innovation Agenda? » Which of the Top 7 innovation problems apply to you? » What Types of Innovation Matter to You? » And, could you apply other types of innovation? » What could do superbly well and consistently to make a dramatic difference to your innovation ROI? © System Growth Consulting Ltd 2015
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  In 2012 weconducted research at Manchester Business School; the world’s largest business research unit. From examining the innovation performance of leading companies, we identified the key to higher than average returns on innovation investment. THE IDEA: Innovation Performance comes from the individual quality and interaction of Six Key Elements of any innovation system. 1. Innovation Strategy that aligns activities. 2. Leadership that creates a climate of performance. 3. Organization that makes innovation flow. 4. Competent use of Tools & Techniques. 5. Fruitful collaborations with Partners. 6. Supportive Innovation Culture. © System Growth Consulting Ltd 2015
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  © System GrowthConsulting Ltd 2015 More Sales Strategy Organize Lead Tools Partner Culture
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  THE IDEA -Companies whose purpose and activities are aligned outperform those who are not. The innovation strategy of a business is a crucial integrating plan that harnesses commercial, operation and development activities. » Strategy is not an optional extra. » Know Where to Play, How to Play, Why to play? And Play to Win – the company’s Innovation Mission. » Crucially, to guide people about what they do every day. » Companies need to operate for both efficiency today and for growth tomorrow - becoming both creative and disciplined. StrategyJam Today? Overcome the tyranny of success © System Growth Consulting Ltd 2015
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  THE IDEA: Organizationstructure and routines makes innovation flow. » Build an innovation ecosystem » Build teams with the skills and behaviours for Innovation. » Be smart about Collaboration » Build systems for creating, retaining and disseminating knowledge. » Build routines for decision- making, Project GO/KILL, Resource deployment, strategy refresh. So, how can businesses optimise organization? © System Growth Consulting Ltd 2015 Organize The organization helps decisions, resources and knowledge flow effectively; it’s both formal and informal. Your innovation organization, » The Board, R&D, Marketing, Operations » Suppliers and Customers » RTOs, Universities » Systems, IT, Financial » Formal and Informal
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  THE IDEA: Leadershipprovides the conditions, permission and incentives for innovation. We’re talking about Leadership at all levels: industry, organization, work team, individual and personal. And it’s the most pressing talent management concern for the next decade. Above all else, Creative Leadership is the differentiator - Jim Collins calls it Level 5 Leadership. » Create favourable working conditions –not only buildings but places to interact and to think. » Know your people – profile and provide means to exercise the creativity muscle. » Change the Language: from “that won’t work!” to “What will it take…?” » Break the creative jam by using techniques to think differently and bigger. LeadQ: So, what can Innovation Leaders do to tip the odds? © System Growth Consulting Ltd 2015
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  THE IDEA: Theuse of innovation tools and techniques are an essential foundation of good innovation performance. Have you seen those F1 garages where the floors are super shiny and the walls adorned with all manner of tools on shadow boards? Key foundation  organizations who actively use tools, techniques and processes outperform those who do not. There are many – but you need to know about them and use them. » Scanning - be active in seeking to understand the external world. » Absorb - Interpret that knowledge to feed your strategy. » Create more and better ideas and rigorously back the most promising. » The right kinds of collaborations and manage them well. » Effectively manage your resources and projects – ROI comes from delivering the right things, right! ToolsQ: What can you do to perform well? © System Growth Consulting Ltd 2015
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  THE IDEA: Welive in a world where innovation is increasingly done through collaborations between the best providers. We’d better become savvy. Henry Chesbrough popularized Open Innovation in his 2003 book (though it’s been around for a long time). And it’s become a mainstream reality in virtually all industrial sectors and in companies of different shapes and sizes. Companies openly innovate to » To use facilities, access knowledge, resources. » To increase the speed of innovation. » Reduce risk between partners. » To share costs and rewards. » Maybe, to enter new markets. Our advice to would-be Open Innovators… » Make a deliberate choice to become Open. » Invest in the unique skills to innovate, openly. » Create an Open Innovation infrastructure in your company. » Manage the changes to shift the company to an open-style. » Know that it needs some patience? Test-Learn-Improve – it’ll take at least 3 years. » Invest in your supplier and user networks – your ecosystem. Partner OI is good for firms wishing to break new ground, or undertake radical innovation. © System Growth Consulting Ltd 2015
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  THE IDEA: Thekey job that leaders can do is to provide a framework of incentives for people throughout the organization. Innovation is a fundamentally a team sport played by people. And, when people get together, they develop patterns for “how we do things round here.” Innovation culture is the patterns, traits and behaviours involved in how a company innovates. As an innovation leader, work to build the positive and erode the negative aspects of your company culture. » Get the right people on board. » Being open to & acting on new ideas is a strong predictor of innovation performance. » Introduce appropriate risk-taking » Create both a supportive and challenging working environment. » Systems Thinking encourages personal mastery, team-based learning, the creation of shared vision and models of how the world and your business works within it. CultureQ: What can you do to perform well? © System Growth Consulting Ltd 2015
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  » What isholding you back in achieving growth? » Are your strategies aligned – do people know what they are doing, every day? » Are you effectively using the innovation tool kit? » Is your innovation culture working for you or against you? » Are you winning for your business when you collaborate? » Do you have the right leadership behaviours and are you organized for effective delivery? © System Growth Consulting Ltd 2015
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  The Growth Engine »Coaching, consultancy and training » Funded Start-ups, Growth SMEs, Mid Sized » Commercialization, New Technology, Strategic Change Selected Services » Innovation & Growth Strategy » Opening Innovation » New Technology Acquisition » Technology Risk Assessment » Innovation Audit Contact Details The Growth Engine is based in Manchester, UK (W) www.systemgrowthconsulting.com (E) [email protected] @RobMunro4 © System Growth Consulting Ltd 2014© System Growth Consulting Ltd 2015 Easy First Steps… Run a Strategic Impact Workshop Innovation System Health Check