The new extended innovation funnel

The ideas funnel has been with us a long time. We put our ideas into the funnel and then through a process of elimination out ‘pop’s’ finished products.

Henry Chesbrough’s famous depiction of the Open Funnel has continued that concept, that ideas enter the more ‘open’ innovation process and go through a more ‘staged gate’ or equivalent process to emerge as the finished product or even spun-out- all well and good.

In the past few weeks the funnel has been constantly coming back in my life. It has been bugging me. Recently I was at a European Innovation Conference and we got into a roundtable discussion on managing ideas and up pop’s the fuzzy front end and the funnel and putting ideas through this.

To be provocative I said “well ideas are actually in the middle of the innovation process” and we got into a significant debate on this and concluded that we all did not share a common language on this or understanding of what I was struggling to articulate.

So let me lay out my view. Firstly this was not as inspired as an insight I can fully lay claim to as mine. I had read somewhere this very point, that ideas lie more in the middle of the innovation process but just could not remember where I had read it- grey cells are my excuse.

The Antibodies Sitting in the Innovation Petri Dish

For many years I’ve been fascinated by these ‘Corporate Antibodies’ that we find in that classic management pathology that instinctively rejects and refuses to alter its ways, so as to protect itself, well innovation management is full of them.

The internal immune system somehow identifies and neutralizes often far too many foreign objects, ideas, concepts or solutions. In the medical world, the antibody is a protein produced to protect the body’s immune system when it detects harmful substances, called antigens.

Innovation to be successful has to immune itself from many ‘antibodies’.

Last week I was remind of this. I attended a good, insightful conference (www.eic2011.com)  on open innovation and new business creation, along with 200 practitioners from large mostly European organizations.

What struck me was the consistent reference to stopping the ‘culture’ of rejection; ‘killing off’ projects, the fear of not-invented here.

I often felt some of the speakers themselves were actually reinforcing this antibody culture, yet they were leading the charge for more open innovation, the very force to eliminate this.

Going behind the outside-in of imagination at GE.

In the past few months, I have become interested in GE and how it is managing innovation. Often you read a number of negative reports on GE but is this just the big guy being picked upon by more nimble observers that have limited insight into what is going on behind the walls of GE?

What is under the innovation bonnet at GE?

There does seem an awful lot going on in GE around innovation on what we can observe from the outside looking in. Of course, you would expect this in an organization the size of GE employing 300,000 people across 100 countries and generating $150 billion dollars in revenue.

In Jeffrey Immelts (Chair and CEO) own words “the toughest years of my life were 2008 to 2009”.To drop 31 billion dollars in revenue in two years is tough to manage through, and to see net earnings drop by nearly $6 billion dollars in this period to where it is today, of $11.6 billion dollars, must have been very hard.

Open innovation stands at the crossroads- where to next?

Although open innovation has been around for some years, it is in the past three to four years the notion of open innovation has accelerated and moved very much and becoming embedded into the structure of many organizations.

Presently most organizations are dealing with the roadblocks surrounding open innovation either internally within their own structures or with the potential partners that they want to work with, for a more diverse innovation portfolio.

Arguably open innovation will merge into simply a way of doing innovation, then into something more specific. For me that is more into a collaboration and co-creation innovative approach I touch upon further in this article

Today we are broadly at an emerging stage of OI. In summary, you could say:

Shortage and Plenty- the growing shift towards Social Innovation

On 16 and 17 March 2011, Social Innovation Europe will be launched in Brussels. Funded by the European Commission, Social Innovation Europe will create a dynamic, entrepreneurial and innovative new Europe with the intent for Europe to embrace the broader concepts within innovation and set an example globally for this social movement.

The aim is by 2014, Social Innovation Europe will have become the meeting place – virtual and real – for social innovators, entrepreneurs, non-profit organisations, policy makers and anyone else who is inspired by social innovation in Europe.

This can provide the opportunity for social innovation – for so long on the margins – to take its place alongside business innovation at the centre of the economic stage.

Social Innovation Europe

The intent will cover the following:

Transform European activities around innovation ecosystems

The challenge today is to transform European activities around innovation. It is the same for the United States as the growth and job mantra will simply come from innovation. In the EU case, Innovation forms a central plank of the 2020 Europe goals.

Regretfully the next Titanic is waiting to happen.

In recent months there has been considerable activity to formulate the new policies to support innovation through EU funding. The EU has been inviting dialogue and offering a mountain of guidelines and suggestions to help us all.  Much of the focus is on streamlining what is already in place.

I’ve called this on some different discussion blogs a little like “reorganizing the innovation deck chairs on the titanic as it heads towards an iceberg”.

There is enormous activity and pressure to perform as the past results of many of the EU initiatives have not delivered on the goals set, and there is this real urgent need to reflect upon the lessons learned from the failures of the Lisbon strategy.

It does seem the present ‘effect’ is put on more steam, lighten the load where we can and let’s try and navigate through these challenges (or icebergs), no time to lose.

Everyone is on high alert in Brussels and around the EU all busy doing their job to contribute to present dialogues on making innovation a success. We need to take really radical action in my view.

Perhaps we should be shouting “all stop”

Welcome to the brave new world of innovation ecosystems

Will ecosystems replace simple ‘old’ innovation collaborations as we know them today? Open innovation has suddenly lost its pole position. Board rooms around the world will be thinking through the events that unfolded yesterday and I’m not talking about Eygpt.

Just get into the story that has been unfolding at Nokia in recent weeks, it has been breathtaking but it signals a massive change in where innovation will be going.

Let me summarize some of this story and add some of my own thoughts on what this means.

Firstly the famous burning platform memo within Nokia.

Orchestrating the new dynamics of innovation fitness

In my work investigating different aspects of innovation activity, one thought tends to dominate my thinking and that is orchestrating the dynamics within innovation: “How do we achieve a better understanding of the dynamics of innovation within our capabilities to be more successful?”

I’ve already written in previous blogs about the need of “constantly checking for the pulse of innovation” ( http://bit.ly/c3G0Ta) and suggesting the way to “open up your thinking to dynamic capabilities for innovation success” (   http://bit.ly/bxTeYO).

I’d like to take this one step further in this blog and outline my thinking on innovative fitness landscapes and why they are essential to understand.

Each organization needs to know its Innovation Fitness Landscape- why?

There is a pressing need for a firm is to consistently build and reconfigure internal and external competencies and capabilities to address rapidly changing environments.

It is the mastering of this ability to achieve new, more innovative forms in rapid changing market conditions that will enable certain organizations to emerge as the winners of the innovation race.

This view requires a more ‘dynamic’ set of capabilities. Often the question becomes one of “which are the critical ones to focus upon to improve the chance of greater success?

Writing off legacy within your innovation systems

You hear constantly the need for greater speed, increased agility, and effective delivery from ideas to implementations for innovation.

Yet we still keep these organizational needs locked into those old structures, systems and processes that have been layered one on top of the other as we learnt about innovation over the years.

We often simply kept  adapting these (often badly) into the existing way we were managing innovation. Isn’t it time we addressed this growing issue of adapting, stopped the compromising and started redesigning our innovation systems from afresh with present-day leading innovation practice thinking?

Managing innovation as a system is no different from managing IT for example. You get to a given point where the costs of running innovations through your existing systems continue to rise. You begin to diminish your innovation performance.

Speed to market seems never to improve the way you want it too, and more importantly delivery against the identified market opportunity seemingly gets more and more compromised.

The risks of cutting corners seemingly grows every day, and you under-deliver on the opportunity first seen.  No wonder eventually leaders begin to question and lose confidence in their innovation abilities.

The results increasingly become suboptimal.
Is there an alternative?

Dedicated Innovation Scientists and Engineers Group – the Growing Imperative

I believe we are arriving at a point of real value by organizing dedicated innovation scientists and engineers into a specialised innovation unit. Innovation has emerged into part science, part art and design, and plenty of engineering (social and process).

Today successfully managing innovation is getting increasingly challenging and placing considerable strain on the present design and structures of organizations.

A dedicated unit or group that draws from a range of disciplines and combines these into a new organisational unit has significant value to be at the forefront of designing the organizational change needed for innovation to be more embedded and integrated.

Let me explain why?