Anyone interested in making his team / organization more innovative needs to find out answers to 2 questions: (1) Where do we stand? (2) What to do next? This presentation shows how "8 steps to innovation" approach can be used to do this systematically.

1. “8 steps to innovation” in action
Vinay Dabholkar, Ph.D.
President, Catalign Innovation Consulting
vinay@catalign.com, 99457-57913
www.catalign.com
May 08, 2013
Rishikesha T. Krishnan
Professor of Strategy & Corporate Policy
Indian Institute of Management, Bangalore
rishi@iimb.ernet.in

2. What “8 steps” doesn’t advocate
Follow step-1 to 8 and you get
a ready-to-use culture of innovation
Basket of techniques
Pick the one you like

3. “8 steps” approach & 2 questions
Where do we stand? What to do next?
Use one or more steps and Iterate

4. Where do we stand?
Question #1

5. Don’t track
idea
pipeline
Level-1:
Ad Hoc
Idea Mgmt
Buzz creation
L&D
Participation
>10%
2
Level-2:
Foundation
(of 3 key
processes)
8 steps assessment framework
1
Prototypes>10%(ideas)
Response time<1month
Participation>30%
Incubation pipeline
Review: Quarterly
Level-3: Engaged
(In Experiments/Reviews)
3
Idea/person/yr >1
Big idea pipeline>
10% of revenue
# of sandboxes>1
Dedicated team(s)
Specialists
Level-4: Aligned
(with strategy)
4
Success of imple-
mented ideas>50%
% of rev from innov
>20%
Level-5: High Batting
Average
5

6. 1
How to build an
idea pipeline?
2 How to improve idea velocity?
3
How to improve
batting average?

7. Measuring idea pipeline
Small
ideas
Patentable
ideas
New product
ideas
New business
ideas
ID/person/yr
Patents/yr
Potential biz impact / % of rev
100 ideas, $1 B each
Machine tools:
100 Cr Rev, 2 Cr each idea
Idea/person/yr
TVS Motors: 44
Tata Motors: 22
Cognizant: 1

8. Measuring idea velocity
Experiments ReviewsResponse
Time
Ideas with
champions
Shell Gamechanger
< 48 hr
Toyota < 1month
% of ideas
#of exp
Quarterly

9. Measuring batting average
Success rate Biz impactSandbox Partnership
Network
# of active
partners
P&G: 15%->50%
Cognizant:
$550M/yr
Avg response
time to a
challenge
# of
sandboxes
# of
technology
platforms
3M: 45

10. Question #2
What to do next?

11. Build Pipeline Improve velocity Enhance batting average
What to improve?Howtosustainthechange?

12. The Elephant and the Rider model
Rider Elephant
Effortful Effortless
Slow Fast
Analytical Intuitive
SnoozeSet alarm
Emotional

13. To sustain a change:
Get Elephant and Rider to go together
Rider: Needs direction
(goal, guideline, plan, framework)
Elephant: Needs motivation
(passion, fun, recognition, pride)
Elephant: Will follow a changed path
(process change – ATM card removal)

14. Build Pipeline Improve velocity Enhance batting average
Howtosustainthechange? What to improve?
DirecttheRider
Motivatethe
Elephant
Shapethe
Path

15. Situation #1: Pipeline “uninteresting”
• Innovation program launched in Dec 2010
• Within a month 40 ideas came from 25 people
• None of the ideas was “interesting enough”
Is it an Elephant problem or a Rider problem?
• A challenge book was created: 20 problems
• President’s challenge was launched
• 20 responses came – Many were “interesting”
It is a Rider problem: Don’t know which problem to solve

16. Build Pipeline Improve velocity Enhance batting average
Howtosustainthechange? What to improve?
DirecttheRider
Motivatethe
Elephant
Shapethe
Path
Challenge
Campaign (step-2)

17. Situation #2: Pipeline drying up
• Portal phobia – Not interested in one more log-in
• Innovation council members felt portal is the only way
?
Is it an Elephant problem or a Rider problem?
It is an Elephant problem: resistance for one more login
An experiment: Put up a challenge next to cafeteria
Wow! A number of responses in a couple of days
And everybody passing by is stopping by to read!

18. In two months, 100+ ideas!
Generated gossip around ideas as well
Launched an “idea wall” on every floor

19. Build Pipeline Improve velocity Enhance batting average
Howtosustainthechange? What to improve?
DirecttheRider
Motivatethe
Elephant
Shapethe
Path
Idea Wall (step-1)

20. Situation #3: Avg response time high
• Average response time > 4 months
• Dept / Brand heads were not reviewing ideas (online)
Is it an Elephant problem or a Rider problem?
• Not sure… May be Elephant
• Experiment: Took approver’s appointment
• Took printouts of 10 ideas to him
• In 15 minutes all reviews were done!
• Looks like an Elephant problem!
• Idea review not getting a priority

21. Shape the path: Review by walking around
3 Reviewers
50 ideas, 1 poster / idea
Prototypes if available
Idea authors in the room
Review done in less than an hour!
Some idea authors got opportunity to explain
Outcomes: Direct implementation, PoC, Parked

22. Build Pipeline Improve velocity Enhance batting average
Howtosustainthechange? What to improve?
DirecttheRider
Motivatethe
Elephant
Shapethe
Path
Review by walking
Around (step-5)

23. Situation #4:
Lack of collaboration in group companies
• Group Chairman felt there was possible synergy
• Nothing was moving
Is it an Elephant problem or a Rider problem?
100 prototypes on display in 3 months!
Group Chairman visited
A mini-sandbox

24. Build Pipeline Improve velocity Enhance batting average
Howtosustainthechange? What to improve?
DirecttheRider
Motivatethe
Elephant
Shapethe
Path
Sandbox + Chairman
visit (step-7)

25. The book has many more options!

26. Build Pipeline Improve velocity Enhance batting average
Howtosustainthechange? What to improve?
DirecttheRider
Motivatethe
Elephant
Shapethe
Path
Pain-Wave-Waste
Catalyst/Mentors
Domains of action
Internal role model
Community of
practice
Emotional appeal
Idea mgmt process
Buzz creation
L&D
Low-cost High-speed
Experimentation
Make idea sticky
Reward failures
Create a Lab
Champion ideas
Define review
checklist
Effective review
Internal venture
fund
Build a sandbox
Baseline rate
Last experiment first
Conduct pre-mortem
Affordable loss
Create a platform
Balance portfolio

27. Summary
Pipeline
Velocity
Batting avg
Direct Rider
Motivate Elephant
Shape the Path
Leve-1 to 5
Where do we stand? What to do next?
Pipeline
Velocity
Battingavg

28. Thank You
http://www.8stepstoinnovation.com/
Other related links:
http://catalign.in/index.html
8-stps site:
Vinay’s blog:
Rishi’s blog: http://jugaadtoinnovation.blogspot.in/
Hope you read the book 
http://www.catalign.in/2013/05/using-
navigation-matrix-in-innovation.html
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