Innovation is something new, something original out of the existing resources. It may span over : product, process, services, business model, delivery model or thought process or organisational structure

2. Innovation : Facts
• Innovation is something new, something original out of the
existing resources. It may span over : product, process,
services, business model, delivery model or thought
process or organisational structure.
• Innovation is the specific instrument of
entrepreneurship…The act that endows resources with
new capacity to create wealth…..Peter Drucker. In fact both
must go together for success.
• Innovation entails risk taking, pro-activeness & autonomy.
Innovation needs domain knowledge. It is systematic,
organized and a rational work requiring passion.
• Innovation needs out-of-the-box-thinking & is aimed at
meeting challenges.
• Creativity is bedrock of Innovation

3. Ingredients : Individual Creativity…….
• Creativity requires both sides of the brain,
passion, patience and optimism
Doing
• Questioning
• Observing
• Experimenting
• Networking
Thinking
• Associating
Example : Adhesive Tapes by 3M

4. Innovation :
Various Aspects

5. Types
•Incremental : Automobiles
: Emission Standards
•Disruptive : PC
•Architectural: iPhone,
Auto
Impact
•Technological:
Automation
•Economic:Mobile
Banking
•Social : Education,
Healthcare,
Communications :
Scalability at Lower cost
Segment
•Generic : PC, Phone
•Customised:Blackberry,
Mercedes Benz
•MLM(More at Less for
More) : Mobile Phone
Innovation
Concepts

6. Paradigms
• Closed / Strategic :
Military, R&D
• Open : All from Open
Sources
• Reverse : ECG MAC 400
• Crowd-sourcing / Web-
sourcing : Open Feed-
back, Competition
• Co-Creation :
Engagement with all
Stakeholders
Innovation Concepts
Approaches
• Top-Down : Directed by
the leadership :
Attitudes, expectations,
policies, strategies :
Apple, Google
• Bottom-Up :
Emanating from the
individual employees :
Ideas, Experimentation
from Employees :
Toyota, Amazon

7. Reverse Innovation…….
• Innovation in to exploit cheap
brainpower and costs
• Innovation in emerging economies
• Global marketing of product
• Scale and price advantage
Example : GE Healthcare : Mac400
ECG Scanner, MRI Scanner

8. Innovation : Culture
and Teams

9. Building & Sustaining Innovation Culture
• Empower employees and their creativity
• Inculcate habit of risk-taking
• Review constantly, eliminate what is not required /
not relevant
• Set stretched targets and give autonomy
• Learn into the future
• Build social forums
• Have system of rewards & recognition
• Celebrate success as well as failure
• Build an ambience of free exchange of
ideas, transparency & learning

10. Building a Lean & High Performance
Innovation Team.......
• Build the right team
• Articulate a Clear Vision
• Build a Culture of Innovation
• Set Inner Rebels Free
• Trust me – You Need Trust
• Stay Lean
• Innovate at Speed
• Stick to Values

11. Competitive Advantage Through Innovation
• New Market / Customer
• Cost Reduction resulting in Better Pricing
• Improvement in Productivity & RoI
– Improved Quality
– Improved/ Additional Features
– Shorter Turn-around Time
• Improvement in Culture
• Improvement in Technology Threshold
• Creating Barriers

12. • Which paradigm to you think was adopted? How did it
gain the competitive edge?(Till 2000, R&D oriented, after that
thrust on open innovation through Connect & Develop, Lower
cost, Best Global Practices, Co-creation & Co-design)
• Which do you think are the most important constituents of
creative culture in P&G? (Free & open thinking for problems
,Networking & Associating, stretched targets)
• Does P&G follow top-down innovation? (Yes)
•
• Is bottom-up innovation followed in P&G? (Yes)
• What should be the approach of P&G to overcome the
current threat? (Thrust on customer focused innovation, Great
New Product Vitality Index, More thrust on open innovation)
Innovation Concepts & Culture : P&G

13. Barriers to
Innovation

14. 0
5
10
15
20
25
30
35
40
45 42 42
29 29
25
23 23 22 21 20 20
Start up Barriers

15. Eco-System To Foster Innovation

16. Govt
•Policies
•Regulations
•Tax / Incentives
•Laws(Bankruptcy)
• IPR
Govt
•Regulations
•Tax / Incentives
•Laws(Bankruptcy)
Demand
•Economy
•Big Companies
•Other
Companies
Linkages
•Universities
•Corporate R&D Labs
•Open Innovation
•Crowd/Web-Sourcing
• Financial Institutions
Funding
•Debt, Seed Fund
•Equity
•Full Range of
Options
• R&D Funds
Culture (People)
• Empowerment
• Risk Taking, Pro-
activeness, Autonomy
• Career advance vs Risk
• Shared Passion
• Reward Mechanism
• Sharing / Discussion
• Mentoring /Handholding
• Diversity
Entreprenuership
Development
•Labour pool
•Education
•Networking
Infrastructure
•Physical (Social,
Technical)
•Services
•Forum for Ideas
Innovation Eco-System
Prime Differentiator

17. Innovation Process

18. Set Innovation Objective
Formulate Strategy
Define Execution & Monitoring
Mechanism
Implementation Process
Periodic Review
Allocate Resources & Define
Organisational Structure
Boardroom
Activities
Execution ProcessExecution Process
Execution
Environmental Scan

19. Create Real
Values Create an
Enabling
Environment
Empower &
Ensure Support
Mechanism
Identify
Good Ideas
Paint a Clear
Picture : Set
Real Goals
Establish
Ownership
Ensure
Teamwork
Game Plan of the
Organisations

20. Innovation Governance

21. 0
1
2
3
4
5
6
7
8
9
10
Successful
Project
Unsuccessful
Project
Innovation & Corporate Entrepreneurship :
Risk - Internal……….

22. 0
1
2
3
4
5
6
7
Weighted Mean
Innovation & Corporate Entrepreneurship :
Risk - External……….

23. Innovation Governance Tools
• Strategy Review
• Financial Involvement
• Review of Board Agenda
• System of Rewards & Recognition
• Organisational Cultural Audit
• Engagement with the Stakeholders
• Integrating War Games into Innovation activities

24. Organisational Cultural Audit
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Value
Practice

25. • How effective is the Innovation Governance?
• How is the Innovation Pipeline maintained?
• How has the Eco-system has been created?
• What are the competitive advantages of Apple?
• What do you think are the most looming threats
for Apple? How should it resolve them?
• What should be the role of BoD?
Innovation Eco-system & Governance : Apple

26. Case Study : 3M India:
Innovation Driven
Company

27. Vision : 3M ……
• 3M Technology Advancing Every Company
• 3M Products Enhancing Every Home
• 3M Innovation Improving Every Life

28. Company Values….
 Act with uncompromising honesty and integrity in
everything we do.
 Satisfy our customers with innovative technology and
superior quality, value and service.
 Provide our investors an attractive return through
sustainable, global growth.
 Respect our social and physical environment around the
world.
 Value and develop our employees’ diverse talents,
initiative and leadership.
 Earn the admiration of all those associated with 3M
worldwide.
Company Values………

29. Consumer & Office
Business
Business Verticals……
Display and
Graphic Business
Industrial &
Transportation
Business
Safety, Security &
Protection Services
Business
Electro &
Communication
Health Case
Business
1
2
3
4
5
6

30. 8 Pillars of
Innovation
Quantify
Efforts
6
3
4
Innovation is Not
Possible Without
Broad Base of
Technology
1
From the CEO on
Down, the
Company must be
committed to
Innovation
Set Individual
Expectations &
Reward Employees
for Outstanding
Work
52
Talk, Talk, Talk
7
Research Must
be Tied to
Customer
Corporate
Culture Must be
Actively
Maintained
8
Invest in
People

31. 1940s
Cellophane
Tape
Overhead
Transpa-
rency Film
Overhead
Projector
Roadmap :
Products &
Technology: 3M
Pocket
Projector
Overhead
Video
1940s
1960s
1980s
2000s

32. Freedom to
Experiment & Make
Mistakes. Mistakes
(Challenges) also
rewarded
Product Vitality
Index (35-40% :
New Products
Index)
2
3
6
Culture &
Systems
1
15 / 85 Rule
Dual Ladder
Career Track
7
3
65
Encourage to Do
Things Differently
& Efficiently
Successful Idea
Owner Becomes
Entrepreneur
8
Systematic
Analysis of
Opportunities
4
New Products /
Technology
Forum

33. Support for IP
Registration
Complete Office
Resources
15/85 Rule in the
Lab (Respecting
Initiative of an
Individual)
2
45
Allocation of
Resources
1
Funds & Grants (Alpha
Grant, Genesis Grant,
Incubator Fund)
6
Forum for
Discussion of
Innovation
Projects
3
Physical &
Technical
Infrastructure

34. Lean Six Sigma
Total Customer
Focus
Prototyping : A
few Weeks only
2
4
5
Execution
1
6
High Impact Program
(Marketing of Selected
Products I a Short
Time-Frame)
Pollution
Precaution Pays
Close
Monitoring
3
7
Problem Solving
Missions

35. Awards (Path
Finder )
Lunch with
CEO / MD
Factored in Career
Progression
1
3
4
Recognition
& Awards
5
Opportunity to
be the Project
Director
Golden Step Award
for those
successful in new
venture
26
Technology
Sharing Awards

36. Necessary
Counsel /
Allocation of
Resources
Review Product
Vitality Targets
Review
Successes /
Mistakes at All
Stages
Discuss Successes /
Failures in Forum
1
2
3
4
Periodic
Review

37. Company Values….
 The company is in the top 10 Innovators.
 Almost 35-40 % and more of the turnover
accounted for products innovated in the last 4-5
years.
 15/85 Rule has resulted in killer products such as
Post-it-Notes, Scotch-Brite, Road Dividers,etc.
 Company has top retention ratio
 Company always amongst the top admired
companies.
Results………

38. Takeaways

39. Company Values….
 Competitive advantage and sustainable growth requires
continuous innovation
 Innovation should be central to vision & must stick to
values without any compromise
 Pro-active approach with autonomy pays
 Set audacious targets and give op freedom
 Set sound governance standards
 Innovation begins with ideas & creativity. Bolster
creativity in the enterprise
 Have a sound eco-system in place for a sustainable and
scalable innovation
 It is people, people, people & culture
Lessons………