All rights reserved: Logica/Markus Närenbäck

1. How innovation
ready are you?
Logica/INSEAD study findings on ‘Collaborative Innovation’
Nordic companies – Return TO Innovation
Markus Närenbäck –
Director Business Development & Sales Logica

2. Another recently done study
• Study of driving forces in the private industry
• 150 CxO interviewed June-Sept 2011
• Qualitative research with 30 min interviews and manual analysis of intervew
Most important focus today ? Focus most important in the future ?
Growth Growth
Cost cut Agility Cost cut
Agility
One company One company
Innovation is the most important driver for Agility

3. Why Collaborative Innovation?
• Innovation is a proven driver of
success
• Organisations can no longer afford to
be ‘islands’ if they are to keep ahead of
the competition
• Study goal: to understand how far
companies have come in collaborating
to innovate and what barriers stand in
the way
• INSEAD has specialised in
understanding innovation and what it
takes to succeed
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4. Key findings
• European Business sees innovation as tool to fight the crisis
• Money spent may be wasted due to lack of innovation readiness
• Companies are committing to innovation, but do not always have the
other necessary components in place
 Leadership needs to step up: more is needed beyond
committing financial resources
 Organisations are not yet structured to make collaboration
‘business as usual’
 Company cultures need help to foster innovation
 A lack of good and widespread measurements is hindering
implementation and improvement of innovation
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5. The Innovation Readiness Model
Level 4 –
Optimised
Level 3 –
Generalised
Increasing level of readiness
Level 2 –
Localised
Level 1 –
Ad-hoc
Leadership & Organisation & People & culture Implementation &
ambition collaboration measurement
The four pillars of the Innovation Readiness model
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6. Leadership & Ambition
Time for leadership to step up and make the difference
• 80% either increased or maintained innovation spend Organisations that invest in
innovation are more likely to
• 75% agreed investing in innovation is needed to outperform their peers
outperform competition 45% 42%
• 64% don’t have a Chief Innovation Officer 40%
35%
• 37% agreed they ‘encourage employees to learn from 31%
failures’ 30%
• Lessons learnt from P-Direkt 25%
“
20%
Spending doesn’t make it so – it is 15% 13%
”
time for leadership to step up and 10%
make the difference 5%
1%
0% 0%
0%
Leadership has the key role to play in
fostering all aspects of innovation
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7. Organisation & Collaboration
Together, we can do more, faster, better
 64% agreed innovation projects included external Innovation projects that include significant
partners collaboration with external partners are
more successful
 54% agreed that ‘Collaborative processes with
external partners is an important enabler of strongly disagree 1%
innovation’
 Reducing ‘time to market’ and creating right skill set disagree 3%
are drivers for collaboration
somewhat disagree 16%
 Almost half agreed collaborating on innovation is
‘more difficult’ than not
somewhat agree 32%
 Best practise learnings from Rabobank
Winning three-legged races? Collaborative agree 21%
innovation is still not an established practice
for most organisations; successful strongly agree 8%
innovation requires good collaboration
management 0% 10% 20% 30% 40%
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8. People & Culture
Innovation is a state of mind: can it be created?
• 27% use ‘creative problem solving’ to recruit or Please rate in order of importance the top three
promote staff factors in your organisation that
enable the success of partnerships between
• ‘Cultural fit’ is key to success of collaborative internal teams and external partners
innovation, but varies according to the stage of
the project
• Brainstorming stage: diverse backgrounds,
different industries etc, is valuable
• Execution phase: common values and goals
and a cultural affinity is key to success
• Portugal Telecom’s Open Project
Creating innovation ‘multi-culture’ is more
alchemy than chemistry, requiring flexibility
and sense of purpose that only leadership
can inspire
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9. Measurement & Implementation
No measurement, no improvement…
• 16% have good metrics in place to evaluate the Please rate in order of importance the top three
factors that block the success of your innovation
success of innovation projects efforts-first choices
• 9% measure innovation through ROI
• 41% identify clash between ‘short-term
management performance and long-term
innovation priorities’
• 29% succeed in sharing best practices
• How Atlas Consortium drives its innovation
measurement & implementation
Innovation is ill-defined and poorly
measured.
Without quantified objectives, attempts to
improve how you innovate will remain an art
rather than a science.
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10. Nordic Findings
Improvement areas
Nordic organizations score low and are in the bottom (1,77 ) when it comes to
implementation/measurment
Only 16% have methods describing how to measure and evaluate Innovation
work – and only 9% measure ROI on innovation.
32% of the nordic organizations consider innovation be part of the culture –
average is 40.
Only 21% of the Nordic enterprises has processes to manage and mobilize
ideas from employees
41% sees that short term management and prioritizations has a negative effect
on the long-term innovation work
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11. How can you become Innovation Ready?
• Make innovation ‘business as usual’ backed up by leadership participation at all levels
• Allocate real time and goals to innovative efforts; lead by example
• Guide your organisation to openly collaborate
both internally and externally
• Set-up collaboration across internal boundaries as a
trial for external projects
• Create a ‘multi-culture’ that supports the
diverse creative input required for successful
innovation
• Involve everyone in setting HR criteria; reward
contributions from implementers, innovators and
cheerleaders
• Define measures of success and use them to
drive improvement throughout the organisation
• Benchmark range of qualitative and quantitative
measures to measure innovation - involve your customers
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12. Thank you
Questions?
Markus Närenbäck
Markus.narenback@logica.com
12/11