1. www.agilityinnovation.com www.ovoinnovation.com Collaborative Innovation Reference Framework The Strategic Layers The essential layers that support innovation The first of the three integrated frameworks is the Innovation Business Architecture. It starts by “peeling” what we call as the innovation onion. We recommend starting at the highest level, at the strategic level, and working down through several other “layers”, including people and processes. The goal of this first model is to deconstruct the important drivers and influencers which will direct innovation activities. From this we identify a innovation framework.

2. www.agilityinnovation.com www.ovoinnovation.com We are interested in explaining the many facets that make up a successful innovation endeavour. It can be extremely tough to capture and explain the complexity of innovation. We would like to see an emerging reference model for innovation from this starting point. The end result is to create a common innovation model or framework that accelerates acceptance, reduces mystery and rework and simplifies innovation efforts. Innovation is dynamic. Opening this set of models allows for it to be constantly improved for all to benefit - this is our stated aim in publishing these models. We submit these suggested models as a starting point to deconstruct how innovation works and to encourage a “common” innovation model across all geographies, industries and markets. Developing a common innovation model and approach reduces confusion and simplifies innovation work. We believe we can remove a lot of the mystique around innovation and help accelerate its adoption and implementation by firms everywhere if we can agree on basic models and principles. We would encourage you to feel free to send commentary, corrections, additions or changes to the models or types to Paul Hobcraft or Jeffrey Phillips. We in turn will re-publish the model as necessary under a Creative Commons License, so that anyone who cares can use it and adopt the innovation model. We want this to be open and a transparent process but we will retain copyright while allowing others to copy, distribute, and make some uses of their work as long as we are credited for the original creation. These are collaborative work-in-progress to achieve a common position for understanding innovation ► Go to the Wiki on http://cirf.pbworks.comhttp://cirf.pbworks.com Our intention behind these different models of Innovation

3. www.agilityinnovation.com www.ovoinnovation.com Goals/Purpose In the following set of slides we intend to outline an innovation model from the most “abstract” and philosophical perspective to the most tactical skills and processes you will need. We layer this because each successive layer of strategy, skills, approaches and processes uncovers new thinking that requires a deeper understanding for building and sustaining innovation. It sets about to resolve misunderstanding, it seeks to replaces myths with a practical, detailed understanding of innovation and all its ‘potential’ complexity. We provide a structured business architecture for innovation choice

4. www.agilityinnovation.com www.ovoinnovation.com Multiple Layers We propose a model for innovation that consists of multiple layers All of these layers must be fully considered in a systematic way. These layers are called: – Strategic Needs – People, Skills & Culture – Processes & Platforms – Approach types We recommend working from the “outside-in” for best results

5. www.agilityinnovation.com www.ovoinnovation.com Strategic Needs People, Skills & Culture Approach Type Processes & Platforms The Multi-Layers Building an Innovation Business Architecture

6. www.agilityinnovation.com www.ovoinnovation.com Strategic Needs We start at the most primary layer- the strategic considerations. – At this level we concern ourselves with the strategic issues that must be in place before innovation can be attempted successfully. – We focus on the key core capabilities and place them into context that must all exist and ‘reside’ before innovation can be attempted successfully. This is the ‘decision point’ to clarify and identify these The considerations need to cover the critical issues of – Strategic Intent – The culture & climate- past, existing and future – The value creation needs – Resource allocation & ongoing funding – Communication actions – Dynamics & Intensity clarification

7. www.agilityinnovation.com www.ovoinnovation.com Strategic Needs We move from the fundamentals to the critical enablers to make innovation happen. For example: Corporate Strategy – Where do we want to be as a company? – What role does innovation play in this vision? – What is our present status on innovation, what needs to change Enabling Innovation within the organization – What key core capabilities do we need? – How do we align them into the appropriate corporate context – What must exist and ‘reside’, what can be outsourced?

8. www.agilityinnovation.com www.ovoinnovation.com Screen & Rationalize Identify Potential The value of consistently mapping back to these four reference points is important to gain consistency and validation of return on innovation investment Evaluate Establish The four orientation points are briefly explained Existing Portfolio and Capabilities Organizational Readiness, Motivation & Desire Align Market & Customer Environment Understand markets and customer needs and aligning your products & services to meet these needs. Understand existing competitors and new entrants to exploit gaps and white space opportunities Establish corporate strategies and where innovation links Establish and align the vision, mission, objectives, strategy and tactics for realization, Clarify the desire and motivation of the organization to innovate. Ensure that business leaders are prepared to innovate. Align compensation and evaluation to innovation activity Existing product and service portfolio and identified gaps resolution. Existing capabilities and capacity. Strategic Alignment to Vision & MOST (Mission, Objectives, Strategies & Tactics)

9. www.agilityinnovation.com www.ovoinnovation.com Innovation Management Universal Need Environment Strategic Intent Innovation Funding Communications Strategic Leadership & Direction Thinking through the Strategic and Organizational Issues Culture & Climate Customer needs / wants Foresight, Scenarios Context & Visioning Identify Potential Establish Strategy Screen & Rationalize Evaluate Skills Likely new entrants and competitive challenges Changing environmental conditions (legal, regulatory, etc) Clarify the Innovation Dynamics Needed Value creation objectives Considerations for Time Resource Allocation & People Considerations Capability & Competency Build Training Strategic Needs Critical Strategic Questions and Considerations Alignment & Orientation of Product & Services Align Market & Customer Environment Existing Portfolio and Capabilities Strategic Alignment to Vision & MOST (Mission, Objectives, Strategies & Tactics) Organizational Readiness. Motivation & Desire Capability gaps Ability to deliver

10. www.agilityinnovation.com www.ovoinnovation.com Strategic & Organizational Issues If you move too quickly through this stage you will NEVER get the results you want. Each of these strategic “considerations” is important and must be addressed prior to building about any innovation effort. You need to have clear strategic goals and innovative strategies and communicate these effectively to provide direction and scope for the innovators. You must establish clear links between Strategic goals and innovations contribution This needs to be robust, well considered and well resourced You must account for the customer needs and market realities within this review You must understand your existing innovation activities, what they provide and where the limitations are so as to be clear on the gaps you need to address/ change. If you proceed without addressing all the strategic consideration, your team will struggle by having a poorly understood strategic framework to work within

11. www.agilityinnovation.com www.ovoinnovation.com Strategy People, Skills & Culture Approach Types Processes & Platforms Incentives Creativity No fear of risk Open communication Trust People, Skills & Culture

12. www.agilityinnovation.com www.ovoinnovation.com People, Culture, Skills & Structures to promote a winning solution People are the “active ingredients” in innovation, they are the catalysts that turn novelty into real benefit. The pivotal role of people to act as innovation carriers- their networks and engagement, their collaboration skills, the way that their knowledge flows Developing a climate where people are openly encouraged to have consistent interactions encouraging their tacit knowledge to flow Seek to provide a clear understanding of how innovation itself is a potent competitive force that drives economic wealth, productivity and growth needs harnessing. Innovation above all is a social process and not a technical one. Establishing the ‘sense of shared purpose’ in spirit, ideas, culture and innovation is a MUST

13. www.agilityinnovation.com www.ovoinnovation.com People, skills, competencies Creativity Invention & Innovation Culture & Climate for Innovation Relationship Building Innovation Techniques Training Reward & Recognition Capability Building Identify Potential Screen & Rationalize People, Skills & Structures Recruiting new Skills Encouraging Leadership & Knowledge Thinking through the People, skills & competencies Existing Portfolio and Capabilities Strategic Alignment & Validation Operational Readiness, Motivation & Desire Align Market & Customer Environment Establish Strategy Evaluate Skills

14. www.agilityinnovation.com www.ovoinnovation.com Innovation Techniques & Training Relationship & Trust Building Capability & Capacity Building Addressing the People, Culture, Skills & Structure Governance & Managing Risk Communicating Listening & Feedback Broad Leadership Facilitation Value of networks, teams and the individual Building ‘thinking time’ into the process Accumulating Tacit Knowledge and putting it to different use Building that sense of community purpose. Encouraging Diversity & Creative Tension Challenging the status quo and inertia Exposure to new perspectives Emotional Equity needs to be forward focused Internal markets for ideas, talent and resources Depoliticize decision-making and personal bias Find new ways to ‘unleash’ human imagination Achieve a sense of identity and passion Building new Skills & habits Encourage Creativity Invention & Innovation Culture & Climate for Innovation Recruiting new Skills Relationship Building Reward & Recognition Encouraging Leadership & Knowledge Capability Building Dealing with Fear & Change Strive to humanize the process-people are the active ingredient Resolving Barriers & Constraints

15. www.agilityinnovation.com www.ovoinnovation.com Strategy People, Skills & Culture Approaches Processes & Platforms Innovation Pipeline Information Gathering Idea to Commericalisation 5 Focal Areas Lifecycle Management 4 P‘s Complete view

16. www.agilityinnovation.com www.ovoinnovation.com Processes & Platforms Finally, you need a clear process that is… – actively managed – able to deal with different approaches to and types of innovation – be sustainable and totally visible. In particular, the process needs to manage within the "4 Ps" – Pipeline – Platforms – Portfolio – Product Lifecyle Management

17. www.agilityinnovation.com www.ovoinnovation.com Providing Feedback Generate Incubate Filter Evaluate Select Prototype Platform, Pipeline & Portfolio Management Regular Innovation Development Program is Established Synchronize Build Manage Monitor Measure Process & Platforms Strategic Considerations People and Skills

18. www.agilityinnovation.com www.ovoinnovation.com Detailed Innovation Process The need for a consistent innovation process is composed of a number of steps or phases which need to be defined To be consistent you need to have a vigorous, consistent idea management process that moves through its different stages We “drill down” here as it is important to expose all of the underlying steps and assumptions. These need capturing, constantly evaluating and deciding upon to ‘kill or progress’

19. www.agilityinnovation.com www.ovoinnovation.com Providing Feedback Generate Incubate Filter Evaluate Select Prototype Platform, Pipeline & Portfolio Management Synchronize Build Manage Monitor Measure GenerateIncubateFilterEvaluateSelectPrototype Generate ideas about a specific problem or opportunity using idea generation techniques such as brainstorming or a distributed community Capture the ideas in a public forum or applicable application to allow team members to comment on, review and rank ideas. Tag and categorize ideas for easy searching and filtering. Filter all ideas to find the ones that are relevant to a specific need, challenge or opportunity Using established transparent criteria, evaluate all ideas that address a specific challenge or problem Once the evaluation is complete, rank the ideas that are relevant to a problem or challenge and select the ideas according to their ranking, evaluation, ability to address the problem or challenge. Develop rough rapid prototypes that demonstrate the main concepts of the idea and gain feedback from potential customers A Consistent Innovation Process Needs to Be In Place

20. www.agilityinnovation.com www.ovoinnovation.com The essential ‘4 P’s within the process Portfolio management A portfolio tracks all of a firm’s existing products and concepts to identify where the firm is placing its investments and prioritize multiple competing objectives so as to align these behind the most effective strategy for the goal of finding value and optimal growth. An innovation portfolio will indicate where the firm has its innovation investments and expose gaps or opportunities for new innovation efforts. Pipeline management Much like a sales pipeline is made up of prospects, opportunities and finally closed deals; innovation requires an innovation pipeline which needs constant monitoring to ensure there is a systematic movement of ideas from generation to evaluation and selection. The innovation pipeline must be constantly refreshed with new ideas, and each phase follows a type of “stage”/”gate” model requiring that the idea meet conditions or criteria for advancement This needs to be systematic and sustainable in its application of process, evaluation and methodology. Platform Management This is the connecting point between strategic need and innovation activity where you establish broad strategic themes that are potentially more profitable Product Lifecycle Management A Product Lifecycle Management software solution offers one ‘version of truth’ for all existing product iterations. PLM can overcome potential isolated activities, islands of information and disconnected systems and poor cross-functional co- ordination and often a lack of innovation visibility for critical activity.

21. www.agilityinnovation.com www.ovoinnovation.com Finally within Process & Platforms Stepping back and viewing the approach so far We establish a more ‘holistic’ view of building an innovation business architecture and the four alignment points.

22. www.agilityinnovation.com www.ovoinnovation.com Approach Type To be discussed in next presentations Align Market & Customer Environment Strategic Alignment & Validation Existing Portfolio and Capabilities Organizational Readiness, Motivation & Desire Identify Potential Screen & Rationalize Strategic Considerations Processes & Platforms The Innovation Business Architecture Layered Process and the 4 Orientation Points People, Skills & Culture Establish Strategy Evaluate Skills

23. www.agilityinnovation.com www.ovoinnovation.com. 4.Go-to- market execution 5. Enabling Infrastructure Common Environment, Networking & Collaboration-Building Tools 3. Systematic Innovation Process 2. Front End Strategic Alignment & Validation Align Market & Customer Environment Existing Product & Service Management New idea Generation & Opportunity Identification Identify Potential Screen & Rationalize 1. Strategic Context Desire & Motivation for innovation Existing Capabilities & Skills Strategies, Strategic Intent Resources and funding Trend Spotting Scenario Planning Product Development Launch Execution Software Infrastructure Scouting Voice of Customer Moving to the Mapping the 4 orientations within the 5 focal points (next deck). Establish Strategy Evaluate Skills

24. www.agilityinnovation.com www.ovoinnovation.com Paul Hobcraft Email : paul@agilityinnovation.com paul@agilityinnovation.com Phone Number +65 91 751 4350 Jeffrey Philips Email: JPhillips@OVOInnovation.com JPhillips@OVOInnovation.com Phone Number +01 919-844-5644 For Europe, Africa, Middle East & AsiaFor North & South America Contact Details Collaborative Innovation Reference Framework ►Go to the Wiki on http://cirf.pbworks.comhttp://cirf.pbworks.com