Prof Göran Roos
Honorary Professor at Warwick Business School, Warwick University, UK
Visiting Professor in Innovation Management and Business Model Innovation, VTT Technical Research
Centre of Finland
Visiting Professor in Business Performance and Intangible Asset Management, Centre for Business
Performance, Cranfield School of Management, Cranfield University, Cranfield, UK
Senior Advisor, Asia Pacific, Aalto Executive Education Academy
Thinker in Residence, South Australia
Chairman, VTT International
Managing Director, Intellectual Capital Services Ltd.
goran.roos@intcap.com
The speed of change is increasing
Innovation is required to increase the value
delivered to stakeholders in a new environment
Constant change requires constant innovation
Innovation can also be used to change the
environment to become more conducive to
value creation
© Copyright ICS Ltd 2010
Extensive criticism is frequently voiced against
governments and bureaucracies worldwide, suggesting
that their perceived rigid red-tape nature, inefficiency,
lack of flexibility, and negative attitudes towards
change, restrict social progress and economic growth
in modern states.
Similarly, public administration scholars and experts
suggest that ‘ innovation’ in the public sector is a
powerful engine and a key instrument for the reform
and revitalization of both fully state-owned bodies and
quasi-governmental organisations and agencies.
© Copyright ICS Ltd 2010
Borins (2001) and Golembiewski and Vigoda (2000) have claimed that
innovation and bureaucracy make an ‘ odd couple ’ due to numerous
differences in core principles.
For example, bureaucracy relies on old organisational models (tradition, vertical
communication channels, compliance, order, and control) rather than on
innovative ones (creativity, commitment, mixed flow of communication,
autonomy, and responsibility).
Successful innovation, therefore, is self-defeated when grounded in the
classic bureaucratic models (see Golembiewski and Vigoda 2000 ).
In addition, with the exclusion of a small number of studies (see, for
example, Golembiewski et al. 1996; Cooper 1999 ), most contributions to our
knowledge about public sector innovation have been either theoretical or
limited in empirical scope.
Studies in the public sector context have generally adopted either an intraorganisational perspective of employees or managers, or a comparative view
of best practices and benchmarking (see Evans 1996; Borins 1998 ; 2000)
The discussion about innovation in the public sector has relied mainly on
data from individual nations and cultures, neglecting multinational and
multicultural contexts.
Source: Eran Vigoda-Gadot , Aviv Shoham , Nitza Schwabsky and Ayalla Ruviopublic;” Public Sector Innovation For Europe: A
© Copyright ICS Ltd 2010
Multinational Eight-country Exploration Of Citizens ’ Perspectives”, Public Administration Vol. 86, No. 2, 2008 (307–329)
Responsiveness of public agencies to citizens ’
needs
organisational politics
Professionalism and the proper implementation
of policies
Top public management and leadership
Ethics and morality of the public personnel
cadre
Source:
© Copyright ICS Ltd 2010
Eran Vigoda-Gadot , Aviv Shoham , Nitza Schwabsky and Ayalla Ruviopublic;” Public Sector Innovation For Europe: A
Multinational Eight-country Exploration Of Citizens ’ Perspectives”, Public Administration Vol. 86, No. 2, 2008 (307–329)
Performance
Source:
Eran Vigoda-Gadot , Aviv Shoham , Nitza Schwabsky and Ayalla Ruviopublic;” Public Sector Innovation For Europe: A
Multinational Eight-country Exploration Of Citizens ’ Perspectives”, Public Administration Vol. 86, No. 2, 2008 (307–329)
Increased organisational performance
Citizens ’ satisfaction
Trust in governance
organisational image
Source:
© Copyright ICS Ltd 2010
Eran Vigoda-Gadot , Aviv Shoham , Nitza Schwabsky and Ayalla Ruviopublic;” Public Sector Innovation For Europe: A
Multinational Eight-country Exploration Of Citizens ’ Perspectives”, Public Administration Vol. 86, No. 2, 2008 (307–329)
Business
Model
Innovation
Technology
Based
Innovation
© Copyright ICS Ltd 2010
Design
Based
Innovation
Technologies that enable or delivers on the desired
changes in the business model or design objectives
Technology
Based
Innovation
Source:
© Copyright ICS Ltd 2010
Roos, G., Kulmala, H. I., and P. Ylä-Anttila, ”Innovation Management – A Success Factor for Competitiveness”, VTT Intelligence Forum 2007;
Tuottavuus ja T&K-strategia murroksessa; Miten vastata haasteeseen?, VTT SYMPOSIUM 250, VTT 2007, pp 42-61
Agriculture and livestock
Forestry
Fishing
Coal mining
Oil and gas
Uranium and Thorium
Metal mining
Quarrying
Food production
Tobacco products
Textiles
Clothing
Tanning and leather goods
Boards and wood products
Paper and pulp
Printing
Processed energy products
Chemical manufacturing including pharmaceuticals
Rubber and plastics
Glass, ceramics and concrete
Metal smelting and working
Tools and fittings
Metal working
Office machinery
Electrical equipment
Electronic equipment
Medical and precision equipment
Motor vehicles
Trains, ships and planes
Furniture, toys and instruments
Recycling
Power generation and distribution
Water
Construction, demolition & trades
Vehicle retailing
Wholesaling
Retail
Hotels, bars and catering
Land transport
Sea transport
Air transport
Tourism
TV and telecoms
Banking
Insurance
Financial administration
Real estate
Renting
Data management
R&D
Professional services
Government and public administration
Education
Healthcare
Waste disposal
Professional organisations
TV, museums, sport & entertainment
Hairdressing, beauty and funerals
Activities of households as employers of domestic staff
Extra-territorial organizations and bodies
Source:
© Copyright ICS Ltd 2010
N
O
P
Q
R
Service
applications
M
Business
perspectives
L
Social science
K
Robotic
application +
advanced
automation
J
Electronic
materials
Processing
I
Structural
materials
Bio-informatics
H
Energy
generation and
storage
Green
biotechnology
G
Education
Blue
biotechnology
F
Linguistics
White
biotechnology
E
Cognitive
application
including design
Red
biotechnology
D
Applications/dev
ices/software
Molecular
nanotechnology
C
Storage
Nanoelectronics
B
Displays
Nanomedicine
Molecular selfassembly
Nanomaterials
A
S
T
U
V
W
X
1
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ICS Ltd, “A Pilot Study Providing a Decision Basis for Structuring the Swedish RTO System to Achieve Maximum National Economic Impact
Against the Backdrop of Expected Technological Development in Key Areas and the Potential Impact of these Developments on the Swedish
Industrial Structure in the Period 2010-2020”, London, December 2008
Design
Based
Innovation
Source:
© Copyright ICS Ltd 2010
Design
ICS Ltd, ”Victorian Design Roadmap Project“, Report Prepared for the Department of Innovation, Industry and Regional Development of
Victoria, April 2010.
Source:
© Copyright ICS Ltd 2010
ICS Ltd, ”Victorian Design Roadmap Project“, Report Prepared for the Department of Innovation, Industry and Regional Development of
Victoria, April 2010.
• Value Proposition - an overall view of a organisations’s bundle of products and services that are of value to
the citizen.
• Target Customers - a segment of customers an organisation wants to offer value to.
Business
Model
Innovation
• Distribution Channel - a means of getting in touch with the citizen.
• Relationship - describes the kind of link an organisation establishes between itself and the citizen.
• Value Configuration - describes the arrangement of activities and resources that are necessary to create
value for the citizen. Normally these are expressed in IC-Navigator form and using the (Stabell and
Fjeldstad 1998) Value Logics
• Resources - that can be deployed by the organisation to create value including those that form the basis
for a competitive advantage
• Partnership - a voluntarily initiated cooperative agreement between two or more organisation in order to
create value for the citizen
• Cost Structure - the representation in money of all the means employed in the business model.
• Revenue Model - describes the way an organisation generates income through a variety of revenue flows.
© Copyright ICS Ltd 2010
Source: Osterwalder, A. (2004) The Business Model Ontology – a proposition in a design science approach. Institut d’Informatique et Organisation. Lausanne,
Switzerland, University of Lausanne, Ecole des Hautes Etudes Commerciales HEC: 173. further developed in Roos, G. and S. Pike, “An intellectual capital
view of business model innovation” in Bounfour, A. (ed.), Organisational Capital; Modelling, measuring and contextualising, Routledge, 2009, pp. 40-62
and outlined in detail in Roos, G., von Krogh, G., and J. Roos with L. Fernström “Innføring i Strategi, 5th edition”, Fagbokforlaget, Norway, 2010
Value derived
from the
appreciation of
the offering
Value derived
from the
possession of
the offering
Value derived
from the
deployment of
the offering
Exogenous and
endogenous
pressures
© Copyright ICS Ltd 2010
Instrumental
value
Intrinsic
value
Extrinsic
value
Real organisational processes and actions which
affect the levels of monetary, physical, human,
organisational and relational capital.
Source: Roos, G., Pike, S. and Fernström, L., “Managing Intellectual Capital in Practice”, Butterworth-Heinemann, an imprint of Elsevier, USA, 2006
Put in Place an Innovation Strategy
Put In place a Best Practice Innovation
Management System
Change the organisational Culture
Change reward mechanisms
Source:
© Copyright ICS Ltd 2010
Roos, G., Kulmala, H. I., and P. Ylä-Anttila, ”Innovation Management – A Success Factor for Competitiveness”, VTT Intelligence Forum 2007;
Tuottavuus ja T&K-strategia murroksessa; Miten vastata haasteeseen?, VTT SYMPOSIUM 250, VTT 2007, pp 42-61
An innovation strategy is in essence a prioritised
list of problems to which we are looking for
solutions
Source:
© Copyright ICS Ltd 2010
Roos, G., Kulmala, H. I., and P. Ylä-Anttila, ”Innovation Management – A Success Factor for Competitiveness”, VTT Intelligence Forum 2007;
Tuottavuus ja T&K-strategia murroksessa; Miten vastata haasteeseen?, VTT SYMPOSIUM 250, VTT 2007, pp 42-61
CEO
Decision
Corporate Head of Innovation
STRATEGY
Innovation
Meeting
Innovation Office
Innovation Groups
External
Proposals
External
Proposals
Suggestions from all parts of the organisation
&
Membership from all parts of the organisation
Source:
© Copyright ICS Ltd 2010
Roos, G., Kulmala, H. I., and P. Ylä-Anttila, ”Innovation Management – A Success Factor for Competitiveness”, VTT Intelligence Forum 2007;
Tuottavuus ja T&K-strategia murroksessa; Miten vastata haasteeseen?, VTT SYMPOSIUM 250, VTT 2007, pp 42-61
Innovation has to be supported from the top, and senior
leadership in the executive and the legislative branches should
signal that they recognize that some ideas will fail, and that’s
acceptable.
Transparency is key to sustained innovative culture.
Recruitment of new employees provides an opportunity to
change employees’ skill set.
Public Sector employees need to be clear that they should be
constantly looking for better ways to accomplish government
goals.
Open up space and opportunities for generating new solutions.
There are many tools that government can use both inside
agencies and to mobilize social entrepreneurs, the public, and
others to help generate promising ideas around new ways of
doing things.
Source:
© Copyright ICS Ltd 2010
Roos, G., Kulmala, H. I., and P. Ylä-Anttila, ”Innovation Management – A Success Factor for Competitiveness”, VTT Intelligence
Forum 2007; Tuottavuus ja T&K-strategia murroksessa; Miten vastata haasteeseen?, VTT SYMPOSIUM 250, VTT 2007, pp 42-61
Jitinder Kohli and Geoff Mulgan, 2010, ”Capital Ideas - How to Generate Innovation in the Public Sector”, Center for American
Progress
Existing incentive frameworks tend to dampen public
servants’ desire to come up with newer, potentially
better ways of doing things.
We need greater recognition that new methods may
be both more effective and more efficient than existing
programs and initiatives.
Put aside at least 1 percent of agency budgets to
develop, test, and scale up new and better ways of
doing things in the public sector. There are a wide
range of ways that the government can use financing
to spur innovation, from very small grants for ideas
from frontline staff to stage-gate investment models.
Source:
© Copyright ICS Ltd 2010
Roos, G., Kulmala, H. I., and P. Ylä-Anttila, ”Innovation Management – A Success Factor for Competitiveness”, VTT Intelligence Forum 2007;
Tuottavuus ja T&K-strategia murroksessa; Miten vastata haasteeseen?, VTT SYMPOSIUM 250, VTT 2007, pp 42-61
Jitinder Kohli and Geoff Mulgan, 2010, ”Capital Ideas - How to Generate Innovation in the Public Sector”, Center for American Progress