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Business Innovation
1.
BUSINESS INNOVATION A sustainable
way to create value January, 2010
2.
Contents Introduction Business
Innovation Framework I. Innovation Strategy II. Business Model Innovation III. Operating Model Innovation IV. Innovation Management Business Innovation Services Copyright © 2009 Capgemini. All rights reserved. 2
3.
Introduction to Business
Innovation Introduction Business Innovation Over the past years, innovation has become one of the core strategic levers a company can pull to improve its business performance and competitive positioning. Business Innovation helps you to improve and enhance your innovation capabilities and to create value in a sustainable way. Koen Klokgieters Vice President, Being at the forefront of Innovation Business Innovation Business Innovation is developed by our team that works daily with the frontrunners of innovation to further improve or enhance their corporate capabilities in this area. We have worked with clients from all types of industries enabling us to keep a broad perspective, expand our thinking and cross-fertilize in the search for innovative solutions. The Business Innovation area of expertise covers the full innovation value chain, ranging from innovation strategy development up to the actual implementation of innovation projects. Business Innovation Services Copyright © 2009 Capgemini. All rights reserved. 3
4.
Contents Introduction Business
Innovation Framework I. Innovation Strategy II. Business Model Innovation III. Operating Model Innovation IV. Innovation Management Appendix Business Innovation Services Copyright © 2009 Capgemini. All rights reserved. 4
5.
Business Innovation leverages
your expertise in the following key areas to develop and deploy strong innovation capabilities Business Innovation Framework Framework Key Areas Outcome A Capability Client B I. Innovation Strategy: Centric Centric THE FUTURE Where to allocate organizational resources for future return on innovation investments. VALUE Strategy Identification of trends and scenarios to provide PROPOSITION direction for the long-term innovation strategy. II. Business Model Innovation: Business Model A business model describes the rationale of how HOW IT WILL an organization creates, delivers, and captures Innovation value. We help to develop effective, game- EARN MONEY changing business models. III. Operating Model Innovation: Operating Model Defines how an organization aligns its assets HOW IT COULD and capabilities to deliver the future value Innovation proposition. Detailed design of the required BE DELIVERED changes to the current organization. IV. Innovation Management: To maximize the outcome of your innovation IMPROVED Innovation Management efforts, proper innovation management is INNOVATION imperative; i.e. governance, processes, metrics, CAPABILITIES portfolio mgt, idea generation and enablement. R&D Marketing & Sales Source: Capgemini Consulting. Business Innovation Services Copyright © 2009 Capgemini. All rights reserved. 5
6.
The innovation strategy
defines where to allocate innovation resources for future return on innovation investments I. Innovation Strategy Key Area Description Strategy – the intentional choice of where, how and A Capability Client B METHODOLOGY when to compete. The innovation strategy is based on Centric I. Centric an assessment of the external and internal corporate Strategy environment. It contains the desirable future state the company aspires to be. Business Model Trend analysis – Assessment of trends with different Innovation aggregation levels; macro, consumer, industry, technology, and their relevance for the current SOLUTION business. Based on likelihood, timing and impact the Operating Model trends are categorized by innovation focus areas. Innovation ELEMENTS Strategic scenarios – Combining business critical trends and uncertainties results in multiple two-by-two Innovation Management matrices. Description of the quadrants provides insight in the company’s key future opportunities and threats. R&D Marketing & Sales KEY REFERENCES Corp. Innovation Strategy BU. Innovation Strategy Corp. R&D Effectiveness Business Innovation Services Copyright © 2009 Capgemini. All rights reserved. 6
7.
A business model
describes the rationale of how an organization creates, delivers, and captures value II. Business Model Innovation Key Area Description A business model can be described through nine A Capability Client B METHODOLOGY building blocks that cover the four main areas of a Centric Centric business: customers, offer, infrastructure, and finances. Strategy It is like a blueprint for strategy, to be implemented through organizational structures, processes and II. systems. Business Model Innovation As-is business model analysis – Analysis of current business models as a baseline for innovation. SOLUTION To-be business model development – Definition of new Operating Model Innovation ELEMENTS business models that will satisfy future needs, in line with the strategic scenarios. Analysis of underlying components of the business model that will affect the Innovation Management operating model requirements. R&D Marketing & Sales KEY REFERENCES eHealthcare Benchmark Corp. BM Development BM Design Business Innovation Services Copyright © 2009 Capgemini. All rights reserved. 7
8.
An operating model
defines how an organization aligns its assets and capabilities to deliver the corporate strategy III. Operating Model Innovation Key Area Description Operating model innovation aims at translating the A Capability Client B METHODOLOGY corporate strategy into a practical, high-level target Centric Centric operating model that can deliver the future value Strategy proposition. It reflects the to-be ambitions coming from an assessment of the external dynamics and internal capabilities of the company. Business Model Innovation Establish operating model requirements - Assess where the existing operating model is unable to deliver III. the future value proposition. SOLUTION Operating Model Innovation ELEMENTS Identify solutions – For each area of operational underperformance, identify solutions based on leading practice (top-down) and re-engineering (bottom-up). Innovation Management Design target operating model - design a model that incorporates all changes and can deliver the strategy. R&D Marketing & Sales KEY REFERENCES Corp. OM Innovation Corp. IT OM Design Corp. IT OM Trans. Business Innovation Services Copyright © 2009 Capgemini. All rights reserved. 8
9.
To maximize the
outcome of your innovation efforts, a solid innovation management foundation is imperative IV. Innovation Management Key Area Description Management of the innovation value chain and A Capability Client B METHODOLOGY provision of an innovation infrastructure. Methodology Centric Centric covers all essential innovation management elements. Strategy Governance – Setting of roles & responsibility, target and scope, management involvement. Business Model Processes – Provision of time & funding, rejoice Innovation successes, communication. Metrics – Performance measurement, rewarding. SOLUTION Operating Model Innovation ELEMENTS Portfolio management – Analysis, ranking, prioritize. New product development – Project management, go- IV. to-market and launch. Innovation Management Idea generation & enablement – Innovation culture, ecosystem, platform, methods & tools, workspaces. R&D Marketing & Sales KEY REFERENCES Innovation Partnerships New Product Launch New Product Launch Business Innovation Services Copyright © 2009 Capgemini. All rights reserved. 9
10.
Koen Klokgieters
Vice President – Business Innovation Consulting Mob: +31 6 51 123 259 koen.klokgieters@capgemini.com www.koenklokgieters-english.blogspot.com http://www.slideshare.net/koen.klokgieters www.capgemini.com/consulting Capgemini Consulting is the strategy and transformation consulting brand of Capgemini Group Copyright © 2009 Capgemini. All rights reserved.