Innovation CEO

50 %
50 %
Information about Innovation CEO
Entertainment

Published on September 18, 2007

Author: Malbern

Source: authorstream.com

Expanding the Innovation Horizon: The Global CEO Study 2006:  Expanding the Innovation Horizon: The Global CEO Study 2006 Kris Pederson May 16, 2006 AGENDA:  AGENDA CEO Study results Opening up a world of innovation Innovation in action The Global CEO Study 2006:  The Global CEO Study 2006 Scope: 765 CEOs and business leaders in all major countries Purpose: Understand role of innovation on CEOs’ agenda Definition: 'New ideas or current thinking applied in fundamentally different ways resulting in significant change' Innovation focus: Products, Services, and Markets Business Models Operations The study probed innovation – its importance and its benefits – across three innovation types and 6 Innovation enablers:  The study probed innovation – its importance and its benefits – across three innovation types and 6 Innovation enablers ……….and six vital innovation enablers (3) Products, Services and Markets Innovation applied to customer-focused, go-to-market areas (1) Business and Enterprise Models Innovation applied to restructure and extend the enterprise (2) Operations Innovation to improve effectiveness and efficiency of core functional areas Innovation Types Enhancing communication andamp; collaboration Eliminating redundancy Increasing organizational effectiveness Increasing external partnering Developing and launching innovative products or services, Entering new markets, Reaching out to new audiences Launching new channels and delivery paths Improving both the effectiveness and efficiency of functions and processes within an organization Climate for Creativity Working environment where inspiration thrive andamp; creativity flourishes Idea Generation secure a continuous source of creativity and flow of new ideas Incubation Structures support the development and growth of ideas from innovation to delivery Metrics andamp; Incentives measure outcomes from creative processes and recognize talent at the organization and individual levels Role of Collaboration andamp; Partnering work externally and internally with organizations and specialists who have the strongest capabilities for innovation Integration of Business andamp; Technology integrate technological capabilities with business insight to achieve innovation CEO Perspective:  CEO Perspective Myth: 'Flat world' trends only affect a few firms Two-thirds of CEOs see significant change in next 2 years :  Two-thirds of CEOs see significant change in next 2 years Extent of Fundamental Change Needed Over the Next Two Years Significant change 65% Moderate change 22% Little or no change 13% Little to no success 15% Past Level of Success at Managing Fundamental Change No change experience 5% Some success 33% Successful 32% Very successful 15% CEOs told us… :  CEOs told us… 'The market imposes innovation.' 'Last year’s products are last year’s dollars.' 'We must innovate to justify our existence.' 'no growth without changing ourselves and the industry itself.' 'Competitors are emerging from everywhere' 'Globalization, commoditization, higher cost structures… all drive increasing specialization…' 'Business Model change is dramatic …40% sales now on the internet' CEO Perspective:  CEO Perspective Myth: Innovation is too critical and proprietary to involve outsiders Myth: 'Flat world' trends only affect a few firms CEOs plan imminent and radical change Partners and customers edge out employees for ideas:  Partners and customers edge out employees for ideas 'Today…more capability and innovation in the marketplace than we could try to create…' Sources of New Ideas and Innovation Academia Associations, trade groups, conference boards Competitors Consultants Customers Business partners 0 5 15 25 35 45% 45% 35 15 25 5 0 Internet, blogs, bulletin boards Other Randamp;D (internal) Sales or service units Employees (general population) Think tanks External Internal Out-performers source 30% more ideas from outside:  Out-performers source 30% more ideas from outside 'If you think you have all of the answers internally, you are wrong.' (5 year revenue growth CAGR) Collaboration gap looms large in the mind of the CEO:  Collaboration gap looms large in the mind of the CEO 20% 40% 60% 80% Collaboration Gap 0% Collaboration of great importance Collaborate to a large extent Collaboration Importance versus Extent 'Without collaboration innovation would be impossible.' 'It would be counterproductive to do everything yourself.' 'Partner…extract maximum value and avoid reinventing the wheel.' CEO Perspective:  CEO Perspective Myth: Innovation means inventing new products and services Myth: 'Flat world' trends only affect a few firms CEOs plan imminent and radical change Myth: Innovation is too critical and proprietary to involve outsiders Collaborative innovation is indispensable Business model innovation gains prominence :  Business model innovation gains prominence Products, Services, Markets Operations Business Model CEOs Innovation Focus 50% 10% 20% 40% 'We need to develop a business model based on strategic partnerships that creates value for our company…and for the industry…in this era of specialization' 30% Outperformers double their focus on the business model:  Outperformers double their focus on the business model 'The business model we choose will determine the success or failure of our strategy.' 'Products and services can be copied, the business model is the differentiator.' 'Our greatest focus is on business model innovation, which is where the greatest benefits lie.' What stands in the way?:  What stands in the way? Obstacles to Innovation 0 10 20 30 40 40 30 20 10 0 Government and other legal restrictions Economic uncertainty Inadequate enabling technologies Insufficient access to information Unsupportive culture Limited funding Internal workforce issues Process immaturity Inflexible infrastructure External workforce issues External Internal CEO Perspective predicts dramatic innovative change:  CEO Perspective predicts dramatic innovative change Myth: 'Flat world' trends only affect a few firms CEOs plan imminent and radical change Myth: Innovation is too critical and proprietary to involve outsiders Collaborative innovation is indispensable Myth: Innovation means inventing new products and services Business model innovation matters Who is responsible?:  Who is responsible? Outperforming CEOs lead and cultivate innovation and change with a distinct set of innovation enablers:  Outperforming CEOs lead and cultivate innovation and change with a distinct set of innovation enablers Basic Requirements Key Performance Differentiators Creating a distinct culture of innovation and rewarding contributors makes the difference :  High Performing Firms’ Reward andamp; Risk Practices Creating a distinct culture of innovation and rewarding contributors makes the difference Reward Encouraged Risk Source: The IBM Global CEO Study 40 60 80 100% 20 0 INNOVATIONS High Performing Firms’ 'Collaborative vs. Individual' Profile Source: The IBM Global CEO Study Collaborative 0 20 40 60 80% 34% 66% Individual 82% 78% CEOs agree that the integration of business and technology is particularly important, but practice lags importance:  CEOs agree that the integration of business and technology is particularly important, but practice lags importance Integration of Great Importance Integrate to a Large Extent Integration Gap 45% CEOs say: '…[organizations] must use technology to stay ahead of the curve…' 'Technology must be integrated in business strategy stages…' ' Technology is the only way to cope with the surge of new work… [and] opportunities.' ' … must be integrated in early stages of business strategy…' 78% . . . And, that gap could put a damper on growth:  . . . And, that gap could put a damper on growth 4.6% 1.8% Average value as benchmarked against peers 1.8% High integrators on average achieved: 4.6% greater compound annual revenue growth than the median of the sample and 178 basis points of additional margin Business and Technology enables Collaboration:  Technorati/Law Technology News, Dec 1, 2005; Comscore, Aug 8, 2005; America Online/Research Alert, Jan 6, 2006; IBM CEO Study 2006; Gartner/BusinessWeek, Nov 28, 2005; BusinessWeek,Mar 21, 2005; Gartner andamp; Berkman Center for Internet and Society/Christian Science Monitor, Feb 16, 2006 Business and Technology enables Collaboration From these findings, five recommendations emerge to seed the innovation agenda for the future:  From these findings, five recommendations emerge to seed the innovation agenda for the future Think broadly, act personally, manage the mix Challenge your business model to become deeply different Defy collaboration limits Force an outside look . . . every time Ignite innovation through business and technology integration AGENDA:  AGENDA CEO Study results Opening up a world of innovation Innovation in action Slide25:  products services business processes business models management and culture policy and society CEOs’ View: Primary Responsibility for Innovation Leadership It’s time to innovate IBM Global CEO Study 2006 'Constant reinvention is the central necessity at GE…We’re all just a moment away from commodity hell.' Jeffrey Immelt Chairman and CEO, GE 'Innovation is an essential component of corporate survival.' Anne Golden President and CEO The Conference Board of Canada 'We will fight our battles not on the low road to commoditization, but on the high road of innovation.' Howard Stringer Chairman and CEO, Sony Corporation Slide26:  How are you capitalizing on the new tools of innovation — and combinations of those tools — to differentiate your products? And how are your competitors doing so? Are your products smart? Do they talk to each other? How do they provide you additional data about your customers’ purchase, use and disposal of your products? products Slide27:  How can new business and technical capabilities deliver higher value to your customers? What can personalization, real-time analytics, self-service, and network-enabled services do to differentiate your company? Is your customer care as responsive and as cost-efficient as it could be? services Slide28:  How can you conceive of, implement, integrate and manage your processes for competitive differentiation? Is your supply chain the most productive and efficient in the industry? Does your CRM system produce the highest customer satisfaction? Is your product development achieving the best time-to-market? Are your finance and accounting costs the most effective? business processes Slide29:  How can you use innovation tools and collaborative approaches to overturn the conventional wisdom? How can you combine those tools and new ways of thinking to increase productivity, generate revenue, approach customers, and leverage your partners’ scale and expertise? How do we make you the disruptive force in your industry? business models Slide30:  What’s getting in the way of truly differentiating your company? Are there legacy behaviors, unnecessary financial models, and organizational structures that can be reengineered? How can we use partnerships, new models and practices, to help change the way companies works? management andamp; culture Slide31:  What potential exists in partnerships with other companies, governments, and nonprofits to create breakthrough innovation? How are schools preparing the next generation of your employees? How are regulations and policies enabling open collaboration and shared intellectual capital? How can we innovate together? policy andamp; society AGENDA:  AGENDA CEO Study results Opening up a world of innovation Innovation in action Challenges facing the Public Sector:  Challenges facing the Public Sector Aging Workforce Economic Development Emergency Preparedness National Security Privacy Math and Science Skills Medical Fraud Inefficiency Governance Lack of standards Tight budgets/limited resources Rising Costs Patient Safety Electronic Health Records Epidemics/Pandemics War for Talent Aging Infrastructure Technology ROI Competition Physical and IT security Growth Healthcare Education Government What does Innovation mean in Education?:  A community of connected constituents Improved teaching quality and access for students Individualized and mobile student learning More business-oriented processes Wireless campus networks What does Innovation mean in Education? Collaboration among students, administrators, industry and academia Real time, anywhere communications Multimedia learning Efficient/effective schools: Keeping costs to a minimum Automated processes Economies of scale Innovation applied to Education Shaping a better world through Innovation:  Shaping a better world through Innovation Challenge: With the US losing ground in education, Broward County School District, the sixth largest school district in the nation, is taking action. The district, home to more than 270,000 students, wanted to leverage information technology to improve student achievement and improve teacher effectiveness. Solution: As part of a four-year, $68 million technology program, Broward County schools now have state-of-the art laptop computers – 40,000 of them – installed in the system’s 262 school buildings. The new computers are being used to provide students and teachers with the tools they need to enhance learning. The technology pilot includes such innovations as wireless laptops, digital textbooks, and other one-to-one digital learning devices. Benefits: Initial results include increased student attendance, greater parent involvement, and a general enthusiasm for learning among students. 'Instead of having to flip through the pages of a textbook all day long, you can actually just look up information fast and easy, and it actually saves a lot of time.' - A student at Broward’s North East High School What does Innovation mean in Government?:  Create jobs and economic growth Meet significant societal needs Evolve sustainable communities Build national and global markets Establish global advantage Increase standard of living What does Innovation mean in Government? Government in an Innovative society Large portion of GDP where Innovation can improve performance and results Government action shows leadership Efficient/effective government: Supports global competitiveness Delivers more societal value Frees resources for investment Innovation applied to government operations Shaping a better world through Innovation:  Shaping a better world through Innovation Challenge: The New York City Police Department has billions of records that contain information that detectives and investigators need to 'mine' to identify and stop emerging crime quickly. These include over 5 million New York State criminal records, over 20 million New York City criminal complaints, 911/311 calls and summonses, over 30 million national crime records and billions of public records. The problem NYPD faced: It was taking hours, days and sometimes weeks to get limited access to this information – precious time lost in identifying and apprehending criminals. Solution: NYPD created the Real Time Crime Center, which uses powerful data mining technology to swiftly provide investigators in the field with information about crime scenes, potential suspects, satellite images and sophisticated mapping of the City precinct by precinct, and other crime-fighting resources. At the heart of the center is a massive data warehouse that makes information available to detectives within minutes. Benefits: 'It will help [NYPD] stop spikes in crime before they become trends, and make sure dangerous criminals are caught before they can hurt others.' Mayor Michael R. Bloomberg 'The Center will put valuable information into the hands of detectives even before they leave the squad room, so they can hit the ground running in identifying and apprehending criminals.' - NYPD Commissioner Raymond W. Kelly What does Innovation mean in Healthcare? :  What does Innovation mean in Healthcare? Innovation Applied to Healthcare A cohesive interconnected network of hospitals and clinicians and payers Electronic health records Pay based on performance Modern, eHealth infrastructures Adoption of open standards Improved patient outcomes Reduced costs of care Privacy and security of data Shaping a better world through Innovation:  Shaping a better world through Innovation Challenge: In the US, an estimated 100,000 deaths occur each year due to preventable medical errors, such as drug interactions and inaccurate drug dosages. Miami Children’s Hospital wanted to address this issue using information technology, including speech recognition. Solution: i-Rounds, a web-based solution from Teges, an IBM Business Partner, provides real-time information that enables clinicians to access patient data at different facilities from one database. The hospital’s medical staffs can now view and input data in real time and in some instances in a hands-free environment, enabling better patient care and patient outcomes by having critical health information available whenever and wherever treatment decisions are being made. 'It was a way for me to access data in a hands-free environment, which is the Operating Room. If I had a heart in my hands, I can’t use a keyboard or a mouse. But I still have that need for data.' - Dr. Raymond Burke, cardiovascular surgeon, Miami Children’s Hospital What do teams need to facilitate Innovation?:  What do teams need to facilitate Innovation? Insight Invention Creativity Disruptive Game changing Positive impact Slide41:  Innovation means using both sides of our brains… Left Brain Right Brain Ten Types of Innovation:  Ten Types of Innovation Business Model Networks and Alliances Enabling Processes Core Processes Product Performance Product System Service Channel Brand Customer Experience Questions?:  Questions? Break-out Groups:  Break-out Groups … and six vital innovation enablers (3) Products, Services and Markets Innovation applied to customer-focused, go-to-market areas (1) Business and Enterprise Models Innovation applied to restructure and extend the enterprise (2) Operations Innovation to improve effectiveness and efficiency of core functional areas Innovation Types Enhancing communication andamp; collaboration Eliminating redundancy Increasing organizational effectiveness Increasing external partnering Developing and launching innovative products or services, Entering new markets, Reaching out to new audiences Launching new channels and delivery paths Improving both the effectiveness and efficiency of functions and processes within an organization Climate for Creativity Working environment where inspiration thrive andamp; creativity flourishes Idea Generation secure a continuous source of creativity and flow of new ideas Incubation Structures support the development and growth of ideas from innovation to delivery Metrics andamp; Incentives measure outcomes from creative processes and recognize talent at the organization and individual levels Role of Collaboration andamp; Partnering work externally and internally with organizations and specialists who have the strongest capabilities for innovation Integration of Business andamp; Technology integrate technological capabilities with business insight to achieve innovation Break-out #1: Innovation Enablers Discussion Items:  Break-out #1: Innovation Enablers Discussion Items How important is this enabler to innovation in your organization? Why? What best-practices/learnings can you share from when the enabler was optimzed and leveraged? What challenges have you faced in bringing the concept to your organization? Do women leaders use this enabler differently? More/less effectively? Break-out #2: Challenge Scenarios Discussion Items:  Break-out #2: Challenge Scenarios Discussion Items Apply learnigns from the Innovation Enablers discussion to solve 1 of 3 challenges. Which tactics, tools, approaches work best in these situations? Managing change when there is a new 'strategic investment' (from company, from university, due to gov't funding available, etc)--how to mobilize people, dollars, support Managing change when there is a change in leadership with different direction, approach, than what you had previously been working on Managing change when you are brought into a project to 'fix things that are broken'

Add a comment

Related presentations

Related pages

innovation.ceo

To report abuse, please email us at contact@peoplebrowsr.ceo 192 Lexington Avenue, 14th Floor, New York, NY 10016 ×
Read more

The Innovation CEO

Behavioral Advantage is the "How" to Jim Collins' "What". Leadership, Structure, Behavior, and Accountability get you to "Good". Context and Motivation get ...
Read more

Innovation | CEO.com

As over-used as the word “innovation” may be these days, there is no denying that building a culture of innovation is at the top of most corporate agendas.
Read more

IT-Innovationen - Artikel und News zum Thema bei COMPUTERWOCHE

News, Hintergründe, Videos, Bilder und Whitepaper zu IT-Innovationen liefert die Redaktion der COMPUTERWOCHE.
Read more

3 CEO Essentials For Igniting Innovation | CEO.com

Having observed many companies go through transformations yielding innovative thinking and action from previously struggling teams, the difference usually ...
Read more

CEO | Innovation News

Good Morning Innovation Pioneers from London, The Internet has caused a Crisis for businesses – new competition, price / value transparency and more ...
Read more

Was heisst denn CEO CIO CFO COO etc? | Arashi Innovation

In dieser Kolumne beschreiben wir die Unterschiede der Begriffe CEO, CIO, CFO, COO, CTO, CSO, CKO, CDO, COFE etc.
Read more

The CEO's Role in Innovation - ChiefExecutive.net | Chief ...

The Many Paths of Innovation . At the CEO roundtable, the meaning of innovation rapidly broke away from the typical notion that it must involve a ...
Read more

Collaboration Trumps Innovation For CEOs - InformationWeek

IBM's new CEO survey offers a lot to think about, but one data point jumped out at me: CEOs see technology as the no. 1 external factor that will affect ...
Read more

CEO | Innovation Management

PharmaX, the CEO’s Dilemma and Open Innovation – Part 3. September 24, 2013 | By: Campbell Lockhart & Rick Wielens | In: Strategies. In Parts 1 & 2 ...
Read more