Final results from the Measured and Mangaged Innovation Programme

Welcome to the Final Conference
Measured and Managed Innovation programme (MMI)

ROGER MOE BJØRGAN , MANAGING DIRECTOR, NORDIC INNOVATION

STOCKHOLM, DECEMBER 4TH, 2012

1 12/12/2012 www.nordicinnovation.org

The Nordic political co-operation

The Nordic Council of
Ministers for Business Affairs

Nordic Innovation
EK-N Stensberggata 25
Committee of senior officials fromNO-0170 Oslo
Industry and Trade departments
www.nordicinnovation.org

Nordic Innovation
Board

Nordic Innovation

About Nordic Innovation

Stimulating innovation
Building relations
Removing barriers

Nordic Innovation facilitates sustainable growth
in the Nordic region.

Our mission is to orchestrate increased Nordic
value creation through international
cooperation.

3 12/12/2012 Copyright © Nordic Innovation 2012 . All rights reserved. www.nordicinnovation.org

Nordic companies competitiveness vital for
future growth

-New value creation happens at the firm level
-Increased global competition puts pressure on
Nordic firms to be innovative


Measured and Managed Innovation Programme (MMI)
>> Enhancing the competitiveness of Nordic companies

Product
(WHAT)

Partnership 7 Platform

5
Channel Solution

3

Supply Chain Customer Need
(RELATIONSHIP) (WHO)

3

Customer
Management
Experience
5

Value
7 Communication
Capture

Process
(HOW)


Programme goals and ambitions

Strengthen the innovation competence and focus in Nordic
companies; in order to increase their return on innovation and
competitiveness

Strengthen the cooperation and experience exchange between
national innovation agencies in the Nordic region

Generate new knowledge and experience on Nordic companies’
innovation focus and efforts

Contribute with insights and inputs to the Nordic countries’
innovation policies and support systems


Looking forward to an insightful and
inspiring day!

Learn more about the organisation at

The speed of change

December 4th 2012
Modern Museum Stockholm

Hans Christian Bjørne, Senior Innovation Advisor,
Nordic Innovation


”Innovation is what takes us forward.
If we keep repeating what we did
yesterday, we will end up in a museeum!”

- Jean-Claude Biver, CEO of Hublot Genève, one of the most
exclusive Swiss watchmakers


Innovation before and now…

Industrial revolution Business model- The Networked economy
Process innovasjon
TQM innovation
Assembly line Customer oriented innovation
Lean
Partnerships &
Open innovation
Speed of change

1800 > 1990s – 2000s 2012

The networked economy: Social and into the clouds

 Are you seizing the opportunities in this
landscape?

- The most talented minds are out there (P&G, IBM)
- Everyone contributes (Amazon, Cisco, McDonalds)
- Anyone has the tools to start ”a movement”
- No voice too small to be heard (Martha Payne)

 Are you seizing the opportunities in this landscape?


The world tomorrow will be radically more different

3D printing: Gene
Print a violin!
Life
replacement
Print a printer! expectancy
therapy
150 years?
Development

takes off

2050

Disruption happens: It could happen to you!


These deliver something unique that customers
value (today…)


These deliver something unique that customers
value (today…)
- Suprising fact: Angry Birds reaches more people
than Facebook (1 Billion)

- From bestselling mobile game to worldwide comic
icon (T-Shirts, books, beverages, stereos, …)

-”It took 100 million hours to build
Wikipedia. That’s three weeks of
playing Angry Birds.”

-Source: Jane McGonical, Director of
Game Research & Development at
Institute for the Future


How do you make a difference?

• Are you first?

• Are you better?

• Are you different?

A lot of companies tend to copy industry practices and compete on
traditional factors like product variances and price.


The analysis examines Nordic companies’ Innovation Radar
consisting of 12 primary dimensions and 4 macro dimensions
Example of Nordic companies
Partnership Offering

Offering
7

Ecosystem Platform
6

5

Channel 4

Solution
3

2

1

Supply chain 0
Customer
needs

Management Customer
experience

Value Marketing
Capture communication
Process

Operations Customer
The radar is a tool to identify innovation areas of positioning, and a lot can be learned from looking at the
companies that stand out from the crowd.

17 www.nordicinnovation.org

Measured and Managed Innovation
Nordic MMI Programme

Results from 2010-2012

December 4th 2012
Modern Museum Stockholm

Jørn Bang Andersen and Hans Christian Bjørne,
Senior Innovation Advisors, Nordic Innovation


Why Business Model
Innovation and MMI?

Copyright © Nordic Innovation 2011 . All rights reserved.

Respondents Innovation Priorities
Innovation Mindset and Outlook

100%

80%
Products/
services/
markets
60%

40% Operation

20%
Business
Model
0%

Underperformers Outperformers

Source: Global IBM CEO study 2006 Copyright © Nordic Innovation 2011 . All rights reserved.

Sweden Norden

Customers

Firm A =

Govt.
Support Industry XYZ Culture

Firm B =

Europe Business Conditions Globally


How does it work?


Generic radar profiles

High

Focus

Low Effort High

Timeless !


MMI results 2010 - 2012


Mix of companies representing different
countries, industries and sizes
800 participants from 100 companies across the Nordics

7

6

Iceland 5
Finland
 22 companies 4

 18 companies
‒ 6 small ‒ 6 small
3

2

‒ 5 medium 1 ‒ 7 medium
‒ 11 large 0

‒ 5 large

Norway Sweden
 20 companies  22 companies
‒ 6 small ‒ 12 small
Denmark
‒ 6 medium ‒ 10 medium
‒ 8 large
 18 companies ‒ 0 large
‒ 5 small
‒ 5 medium
‒ 8 large
< 50, small sized company
< 250, medium sized company
>32
250, large sized company
MMI companies combined represent 125.000+ employees

US-Nordic Benchmark: Innovation Radar Primary Focus 2010-2011
> Nordic companies significantly more focused on offering innovation
> American companies significantly more focused on partnerships

USA Nordics
4%

14%
Offering 15%

43% Customer
22% Process
17%
Partnership 64%

21%


In 2012, half of the companies now have a
focused approach to innovation. In 2010, only
1/3 of the companies were focused

34 12/12/2012 Powerpoint template for Nordic Innovation www.nordicinnovation.org

Internal allignment has doubled from 2010-2012

35 12/12/2012 Powerpoint template for Nordic Innovation www.nordicinnovation.org

Innovation strategy leads to higher focus and more investment into innovation.
100% 100%

90% 90%

80% 38% 34%
80%

70% 63% 70% 62%
60% 60%
High effort
50% 50%
Unfocused Medium
43%
40% Focused 40% effort
Low effort
30% 62% 30%

20% 37% 20% 38%

10% 10% 23%
0%
0% 0%
No Strategy No Strategy
strategy strategy


Companies do not focus on the dimensions they say they will

Primary scored present Most important future
innovation dimension innovation dimension

2012 80% 6% 11% 3% 2012 43% 31% 16% 9%

2010 64% 17% 16% 3% 2010 53% 30% 11% 6%

0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%

Offering Customer Operations Relationship Offering Customer Operations Relationship


Nordic companies want to work less with Offering related
innovation, and more with other dimensions, like
Customer Experience, Value Capture, and Supply Chain


Country changes
2010-2012


Denmark: Strong upgrade on managment and partnership dimensions
from 2010-2012

29
Management

21
Partnership

21
Solution
29
Denmark 2012
Offering Denmark 2010
29
21
Process
29

Supply Chain
21

0 5 10 15 20 25 30 35

Source: Measured and Managed Innovation(MMI) 2010-
40 Copyright © Nordic Innovation 2011 . All rights reserved. 2012: Final Report, Nordic Innovation 2012

Finland: Strong shift in focus towards offering and partnership in 2012

18
Partnership

27
Solution
36

55
Offering
27
Finland 2012
18
Platform Finland 2010
9

Management
9

0 10 20 30 40 50 60
41 Source: Measured and Managed Innovation(MMI) 2010-
Copyright © Nordic Innovation 2011 . All rights reserved. 2012: Final Report, Nordic Innovation 2012

Sweden: Biggest shift in downgrading offering and upgrading
management dimensions
8
Management

23
Offering
46

46
Solution Sweden 2012
38
Sweden 2010
15
Platform
23

Customer experience
8

0 10 20 30 40 50
Copyright © Nordic Innovation 2011 . All rights reserved. 2012: Final Report, Nordic Innovation 2012

Iceland:High consistency in focus over time, yet higher focus on value
capture from 2010-2012

11
Value Capture

32
Solution
36

32 Iceland 2012
Offering
32 Iceland 2010

11
Customer Experience
11

Management
11

43 Copyright © Nordic Innovation 2011 . All rights reserved. www.nordicinnovation.org
2012: Final Report, Nordic Innovation 2012

Norway: Consistently high focus on product and process innovation over
time.

8
Process

46
Offering
54

38 Norway 2012
Solution
31 Norway 2010

8
Platform
15

Customer Need
8

2012: Final Report, Nordic Innovation 2012

Significant finding from 2010-2012:
Many more companies with high focus and high effort

Innovation effort level

Low effort High effort
Innovation focus level

High focus 24 %  23% 4 %  24%

Low focus 56 %  33% 16 %  20%

2010  2012



46

Company feedback
about the MMI program


56% or companies express high satisfaction
with the MMI programme
56%

2%

15%

7%
2%
Very low Low Medium High Very High
Source: Inno Group Scandinavia – MMI Evaluation 2012


65% of companies think that the MMI has helped
highly or very highlys in spotting underdeveloped business areas
in
41%

24%
22%

9%
4%





81% of companies believe the MMI has had
high to very high impact for raising internal
awareness of innovation focus in their company
46%

35%

9%
6%
4%



40% of the MMI companies say the MMI has
High to very high impact for spotting new opportunities

31%
28%

19%

13%
9%



Policy implications


Nordic innovation policy level

• Rigorous testing and solid data is
a strong platform for future
Nordic initiatives;

• Focus future initiatives on low
focus areas like customers and
partnership innovation;

• Nordic level has most to offer
when it dares to challenge
national dogma and go beyond
the obvious.

National Nordic innovation policies

• Nordic level unique test-bed;

• National innovation policies stuck
in a techno-product oriented
paradigm;

• Design programs with clear
intent, success criteria and take
off in needs of businesses.


Company level innovation

• MMI companies should
continue to apply a business
model approach to solidify
competition and stay
innovative;

• Try to experiment more with
partnership innovation and
develop capabilities for this;

• Ask what prevents our
company from growing more
than 10-20% every year?


Company cases:
Let’s listen to those
who innovate every day


What are you going
to do about it
tomorrow?


Final results from the Measured and Mangaged Innovation Programme

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