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.

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.

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:

Social innovation comes of age in Europe

Social innovation is about new ideas that work to address pressing unmet society needs”

The shifts taking place in Europe

The competitiveness and challenges that Europe faces in the next ten years are significant. Innovation has been placed at the heart of Europe’s 2020 strategy.

It is this clear recognition that innovation is the best means of tackling issues that will affect our future living standards is not new in itself, but it is this real political recognition of its place and importance, now that is.

Innovation is also our best means of successfully tackling major societal challenges, such as climate change, energy and resource scarcity, health and aging and becoming more urgent each day to address in more systematic ways.

European funding of innovation in recent years has perhaps placed far too much emphasis on research and development to deliver the growth and jobs it requires.

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?

Everything seemingly comes in seven or does it?

Recently I was going through my files and was amazed how the use of seven came up to form some sort of magic seven frameworks. I’m not sure if we can blame this all on the “seven wonders of the world” but ‘seven’ has some magic perhaps when it also comes to listing. Is it because our attention span can’t absorb more than seven things at a time?

Ok, I can hear my wife say “Seven, you, huh!”
Let me give you a flavour of this use of ‘seven’

  • Seven keys to designing your innovation
  • Seven success factors
  • Seven habits of effective people
  • Seven innovation myths
  • Seven kinds of consequences
  • Seven deadly sins of Road-mapping
  • Seven levels of sustainability
  • 3M’s seven pillars for innovation

The list could go on….and on. So why does seven seemingly loom so large for us?

The Promise of Open Services innovation

Absorbing the different messages coming out of Professor Henry Chesbrough’s new book has been interesting. The book “Open Services Innovation: Rethinking your business to grow and compete in a new era”, published by Jossey-Bass was just launched in January 2011.

The book can go the way of a lightning rod to bringing service innovation up in many people’s thinking both in academic research and corporate agendas.

Professor Chesbrough is absolutely right, services are critical to developed countries’ economies and within our organizations. It is time to move service innovation up in our thinking by combining the internal capabilities within organizations and by enlisting the efforts of many others in support of their business.

The challenge is to combine the customer and the supplier on the same platform for Open Services Innovation to work. It is thinking through platforms more that catches my interest and what this means in generating new, innovative business models.

Taking services into a more open approach is not so easy.

Service innovation- can it become more open?

For a better understanding of what makes up service innovation, we need to fill in far too many gaps at present, can it become more open?.

I’m hopeful that the forthcoming book of Henry Chesbrough: “Open Services Innovation: Rethinking your Business to Grow and Compete in a New Era”, published by Jossey-Bass and being launched officially next week, 18th January 2011, will go some of the ways to be a lightning rod to bringing this up in many people’s agenda if it is not already!

I felt with his past books on Open Innovation and Open Business Innovation they were the catalysts for deeper thinking. He provided the stimulus to find better answers with his many reflections and case studies through his solid research work and his ‘open’ and questioning thinking to prompt community ‘reactions’. This galvanized significant innovation movements and this time hopefully, it will be to open up and manage service innovation more effectively.

I will be completing a book review on this latest open innovation thinking by Dr.Chesbrough for www.innovationmanagement.se as an early February publication and I’m certainly looking forward to reading the final edition of this book when it arrives.

Are we constantly checking for the pulse of innovation?

So often our innovation health seems to change abruptly or equally just simply slip away. It could be caused by many things: a call for reorganization or restructuring or a key part of the team decides to leave.

It might be the organization has a second quarterly drop in sales and profits or those layoffs simply keep cutting away until you are into the bone. Suddenly the ‘beating heart of innovation seems to slow and sometimes even stops completely. Innovation abruptly goes into intensive care.


We so often miss the ‘vital signs’ of healthy innovation as we get caught up in the issues of the day, in defending our corner or simply playing safe, hoping the ‘ill winds’ that constantly blow over us go away.

In the meantime we often fail to recognize what has ebbed away in creative energy or innovation initiatives until we are heading for the emergency ward, fighting for our competitive lives like others who we had been competitively jogging along with having stayed fit and healthy and simply ‘kept on innovating’ and pulled away. Where did our fitness actually go?

So how do we check our innovative vital signs?

Shifting to the 21st Century Business models

Gary Hamel is amazing, he is constantly thinking about the future and lays out how to get there; he has been doing this repeatedly for years, this time it is discussing the innovation drags we presently have and how they are holding back the 21st Century business models.

One quote of his seems to hit home for me especially “The real brake on innovation is the drag of old mental models. Long-serving executives often have a big chunk of their emotional capital invested in the existing strategy”

A real big challenge is changing old mindsets but how?

Today, the value of Business model innovation seems to be a critical part of breaking out of the old and finding new avenues to growth and prosperity.

The trouble today is the existing mindset of the manager is often the major block to challenging the existing business model and working towards a real change.

This lack of realisation is increasingly allowing the young usurper, the entrepreneur, into seizing the opportunities and seizes the initiatives of the very growth needed by existing businesses.