Innovation systems
project
Discussion paper
Prepared by Precision Consultancy for Innovation
and Business Skills Australia (IBSA)
March 2009
Contents
Introduction ..................................................................................................................................................... 3
Definition of Innovation .................................................................................................................................... 3
Your role in the process .................................................................................................................................... 3
Contact ............................................................................................................................................................... 3
Background..................................................................................................................................................... 4
Blueprint for Action on Innovation .................................................................................................................. 4
Scoping the need for high level ‘innovation system’ qualifications/ skill sets......................................... 4
SKE – Innovation Project ................................................................................................................................... 5
Submission to the Review of the National Innovation System (Cutler Review) ...................................... 5
Innovation 2008 Is the Tide Turning? (Boston Consulting Group Report) ................................................. 5
Implications for BSB07 Business Services Training Package ....................................................................... 7
Existing units of competency, qualifications and skill sets in BSB07 ........................................................... 7
Proposed units of competency, qualifications and skill sets (Scoping report) ....................................... 8
Questions for discussion ............................................................................................................................... 10
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Introduction
Precision Consultancy has been contracted by Innovation and Business Skills Australia
(IBSA) to assist in the implementation of its Blueprint for action on innovation. This Blueprint
is a culmination of extensive research and outlines directions for IBSA to foster innovation
in the Australian workforce.
This discussion paper aims to test opinions with key stakeholders on how to best embed
innovation and creativity into BSB07 Business Services Training Package; and on the draft
units of competency, qualifications and skill sets on innovation and creativity designed as
a result of an IBSA scoping report in 2007/8, Scoping the need for high level ‘innovation
system’ qualifications/skill sets.
Definition of Innovation
Although there are many definitions of innovation, for the purpose of this project we will
be adopting IBSA’s working definition:
Innovation is consciously exploiting new ideas, or new uses for old ideas, to add
social or economic value.
Your role in the process
You are asked to make comments on this discussion paper. Some guiding questions have
been included.
Please pass this paper and our details on to any other people or organisations you feel
could make a valuable contribution to this project.
Contact
Please send your responses to the discussion paper (preferably by email) to:
Michelle Wong
Precision Consultancy
Suite 2, Level 5, 167-169 Queen St.,
Melbourne VIC 3000
e: michelle@precisionconsultancy.com.au
t: 03 9606 0118
f: 03 9606 0119
Responses must be received by close of business, Friday 17th April 2009.
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Background
Blueprint for Action on Innovation
Following a National Search Conference conducted by IBSA in 2007, which focussed on
the skills needed to foster innovation, boost business profitability and build individual and
organisational capability, IBSA developed a Blueprint for Action on Innovation. The
Blueprint outlines directions where IBSA can have a national impact on the innovative
capacity of the Australian workforce.
One of the key strategic actions outlined in the Blueprint is around capability:
IBSA can support the development of the skills needed for a flexible, innovative and
adaptable workforce: by broadening the focus from skills development to capability
building and considering the requirements for innovative capability and leadership in
the development of training products. (Blueprint p 2)
The skills and capabilities identified for innovation are:
• collaboration, teamwork, mentoring and playing to lose
• building networks, knowledge sharing
• questioning, problem solving, critical thinking, thinking outside the square
• listening and communication
• thinking across disciplines, lateral thinking, making connections, improvising
• leadership (at all levels), confidence/resilience, willingness to take risks
Part of the proposed action outlined in the Blueprint was to explore how innovation
capability can be included in Training Packages. IBSA recognises that the skills need to be
‘embedded in a context’, which suggests they should be developed alongside the
development of skills and knowledge of a particular discipline.
Scoping the need for high level ‘innovation system’ qualifications/ skill
sets
After the publication of the Blueprint, IBSA contracted a consultant to scope industry
requirements for high level qualifications and skill sets that equip people to:
• manage an innovative workforce and working environment, and
• implement innovation in the workforce.
The report, Scoping the need for high level ‘innovation system’ qualifications/skill sets
(2007/8), identified skill requirements for many hypothetical job roles within innovation
systems, and identified gaps in the available range of recognised qualifications. The
report recommended a suite of high level qualifications/skill sets for cross industry
application. Specifically it recommended:
• the development of 5 new qualifications around innovation, and revisions to
qualifications and elective units in 2 existing qualifications (from Certificate IV to
Vocational Graduate Diploma)
• the development of 4 new skill sets
• the development of 10 new units of competency (at AQF levels 5 – 8)
• revisions to 2 existing units of competency.
An analysis of the suggested qualifications, skill sets and units of competency follows, with
questions for discussion.
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For a copy of the Scoping Report, please contact Eddie Hardman, IBSA,
eddie@ibsa.org.au.
SKE – Innovation Project
At the same time as the Blueprint was being implemented, IBSA has undertaken the
development of a tool that will help organisations to consider staff capability for
innovation. The tool is designed to give a snapshot of organisational health from a ‘staff
capability for innovation’ perspective and to be used in considering options for building
staff capability. The tool is intended for use by those responsible for workforce
development within an organisation. It describes the skills, knowledge and attributes
required for innovation by staff. It offers a framework to consider options for developing
staff capability and links to a range of existing resources.
Submission to the Review of the National Innovation System (Cutler
Review)
Following this research, IBSA made a submission to the Review of the National Innovation
System (Cutler Review), conducted by the Department of Innovation, Industry, Science
and Research. The submission focussed on questions around educating and equipping a
creative and innovative workforce.
The report of this review, Venturous Australia – building strength in innovation recognises
that:
high quality human capital is critical to innovation. Equipping our people with the
skills to innovate is essential, not only for the generation and application of new
knowledge, but also to use and adapt the knowledge produced elsewhere (p. xi).
The report acknowledges the foundational activity of IBSA around innovation in its
discussions about the challenge of gaining a ‘better alignment between skills and
innovation programs’ (p. 65).
Innovation 2008 Is the Tide Turning? (Boston Consulting Group Report)
Since the IBSA research, a report on an international study of innovation by the Boston
Consulting Group was published. This report showed that most companies highly value
innovation, with 60 percent regarding it to be one of their three most important strategic
priorities (p.17). Yet, few companies are satisfied with their return on innovation. There are
indications that companies dissatisfied with innovation returns are reassessing their
priorities, with the potential significance of this being huge. The majority of companies
had the means to greatly increase their return on innovation spending and thereby gain
a competitive advantage; however few were actually acting with the commitment
necessary to achieve this advantage (p. 6).
The report investigated the kind of innovation companies considered to be the most
critical to their success. It found that ‘new offerings for existing customers’ and ‘new
products that allow for expansion into new customer groups’ to be the most critical types
of innovation (p.14).
The study utilised a framework of capabilities that are critical to innovation success which
included (p.17):
• Developing a deep understanding of customers and their preferences
• Partnering effectively with suppliers and others for new ides
• Ensuring executive-level sponsorship of projects
• Enforcing timelines and milestones
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• Earmarking sufficient funds for projects
• Moving quickly from idea generation to initial market entry
• Balancing risks, time frames, and returns across an entire portfolio of projects
• Fostering a corporate culture that promotes innovation
Sixty-eight percent of companies considered that ‘developing a deep understanding of
customers and their preferences to be their greatest strength’ and 67 percent of
companies considered ‘ensuring executive-level sponsorship of projects’ to be their
greatest strength (p.17). However, 52 percent of companies found they were poor at
moving from idea generation to initial sales (p. 18).
In addition, the report noted that companies which are successful at innovating have
strong leadership and proper organisational alignment whereby the whole organisation is
working toward the same goals and share the same commitment to innovating (p. 23,
24).
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Implications for BSB07 Business Services
Training Package
The research into Innovation has some implications for the BSB07 Business Services Training
Package.
Existing units of competency, qualifications and skill sets in BSB07
During the development of BSB07 Business Services Training Package, a structure of
combining units into different group was developed. As part of the development of
BSB07, units of competency around innovation, set out in the following table, were
developed.
The first number in the code indicates the Australian Qualifications Framework (AQF) level
qualification in which the unit is usually packaged.
Innovation competency area
BSBINN201A
Contribute to workplace innovation
BSBINN301A
Promote innovation in a team environment
BSBINN501A
Establish systems that support innovation
BSBINN502A
Build and sustain an innovative work environment
BSBINN601A
Manage organisational change
BSBINN801A
Lead innovative thinking and practice
As well, aspects of innovation are embedded in a number of units, e.g. within
performance criteria, range statements etc, for example in design, sales and marking
units of competency.
During the development of BSB07, no qualifications specific to innovation were
developed.
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Proposed units of competency, qualifications and skill sets (Scoping
report)
The IBSA Scoping report, 2007/8 recommended the development of the following
qualifications, skill sets and units of competency, and draft products were included as
part of the report.
Qualifications
Proposed qualification – Scoping
report
Associated job role –
Scoping report
Comments
Vocational Graduate Diploma of
Innovation Management
Senior Manager for
Innovation
This proposed qualification has
the same core as the existing
BSB80107 Vocational Graduate
Diploma of Organisational
Learning and Capability
Development
Advanced Diploma of
Management (Knowledge
Management)
Knowledge Manager
This proposed qualification is
very similar to BSB51707
Diploma of Recordkeeping
Diploma of Recordkeeping
(Intellectual property)
Intellectual Property
Manager
There are already the following
existing qualifications:
BSB60407 Advanced Diploma
of Management
BSB60807 Advanced Diploma
of Recordkeeping
Certificate IV in Recordkeeping
(Innovative Groups)
Cataloguer
There is already a Certificate IV
in Recordkeeping
Advanced Diploma in Financial Risk
Management (Innovation)
Finance Manager
This proposed qualification is
based on the Advanced
Diploma of Financial Services
(Financial Planning); and has
been sent to the team
reviewing the Financial Services
Training Package
In addition, the scoping report suggested some additional units on innovation be
included in two existing qualifications: BSB60407 Advanced Diploma of Management,
and BSB60907 Advanced Diploma of Management (Human Resources).
Skill Sets
Proposed Skill Set – Scoping report
Skill Set for an Opportunity Seeker
Skill Set for Team Leader of an Innovative or Creative team
Skill Set for Facilitator of an Innovative or Creative Team
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Skill Set for Participation in an Innovative or Creative Team
Units of competency
Proposed new units of competency – Scoping report
Current status
BSBINN802A
Determine innovation direction of the organisation
BSBINN803A
Develop strategies to foster innovation
BSBINN804A
Plan for discontinuous innovation
BSBINN806A
Lead organisational change
BSBINN807A
Communicate complex ideas and research
BSBRKG508A
Manage intellectual property
A separate unit of
competency, Manage
intellectual property to
protect and grow business,
was developed end 2008,
as part of a suite of units
around Intellectual
Property.
FNSINN602AB
Determine risk exposure for innovation projects
FNSINN604B
Develop complex financial planning strategies for
innovation projects
FNSINN606B
Implement and monitor financial plans for
innovative or creative projects
The financial services
training package is
presently under review.
These units have been sent
to the review team for
consideration
FNSINN805A
Develop metrics for innovation systems
In addition, the Scoping report suggested that two units of competency be enhanced:
BSBATSI511B Develop enterprise opportunities, and BSBPMG608A Direct risk management
of a project program.
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Questions for discussion
Please email responses to this discussion paper to Michelle Wong,
michelle@precisionconsultancy.com.au, or fax 03 9606 0119.
Do you believe that the area of innovation is sufficiently covered by the existing qualifications, skill sets
and units of competency in BSB07 Business Services Training Package?
Yes

No

If your answer is Yes:
Please explain.
If your answer is No:
What inclusions do you suggest?
What evidence can you provide for the need for innovation skills in the current and future workforce?
How can innovation best be addressed in the training package? For example, should it be addressed
by:
• creating qualifications specific to innovation – if so, what qualifications, what level do
you suggest? What is the job role outcome of the suggested qualification/s?
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• creating skill sets around innovation – if so, what skill sets do you suggest?
• adding specific innovation units of competency – if so, what units, what level do you
suggest?
• enhancing the employability skills statements in existing qualifications?
• developing training and assessment resources to support the training and assessment
of innovation in BSB07?
• conducting professional development activities for trainers and assessors in relation to
the delivery and assessment on innovation in BSB07?
• other?
What other comments would you like to make about the development of innovation skills?
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