Innovation in control?
<klant> sparring sessie
Wassili Bertoen
27 septemer 2011
Strategy / view
Innovation enables you to lengthen the life cycle of existing services (incremental
innovation) and to grow (outside) traditional business by radical innovation
Sales
Introductory
stage
Growth
stage
Maturity
stage
Decline
stage
New
Life Cycle
Phase-out
stage
Old
Life Cycle
Time
3
Target Operating Model Innovation - May 2011
© 2011 Deloitte The Netherlands
Every product life cycle can be visualized as a S-curve. Radical (disruptive)
innovation facilitates the ‘jump’ from one curve to the next
Performance (sales)
Focus on the function,
not on the form!
4
How to measure
performance?
How to know
where you are
on the “S”?
Where in the
value chain?
Worse before
better?
Target Operating Model Innovation - May 2011
Time
Artikel FD 6 september 2011
"Innovatie heeft niets te maken met hoeveel
R&D geld je hebt ... Het gaat om de mensen
die je hebt, om hoe je geleid wordt en hoe
goed je begrijpt waar je mee bezig bent"
- Steve Jobs
"Bedrijven die ontevreden zijn over het
rendement van hun innovatiegeld, moeten niet
te veel tegelijk te doen. Je kunt beter minder
dingen goed doen, dan meer dingen slecht“.
- Barry Jaruzelski
"Het effect van sociale innovatie op
innovatiesucces is volgens de hoogleraar veel
sterker dan het effect van technologische
innovatie op innovatiesucces"
5
© 2010 Deloitte Touche Tohmatsu
The innovation challenge
Network
System
Process
Pioneer
Strategy &
Organization
Innovation
Governance
People &
Culture
Ideation
Innovation Process
New Business Go to Market
Development
Innovation Governance
Strategy Top level commitment
Innovation process
Continuously increase overall innovation
effectiveness
Innovation adaption
© 2010 Deloitte Touche Tohmatsu
Innovation needs a clear Innovation Strategy with an agreed
ambition
Revenue
Three levels of innovation
Growth
track
(Day after
tomorrow)
Super growth outside traditional business
Radical Innovation
–
–
–
–
Create the future market
Invest in future chances
Create new business models
Alliance with strategic partners
New products and / or services
Innovator
track
(Tomorrow)
Grow your traditional business
–
–
–
–
Create new changes in the market
Fast implementation of innovations
Realize renewing of the market
Alliance with partners
Quick wins
Fast-track
(Today)
–
–
–
–
Product modifications or additions
New marketing approaches
Adapt to changing environment
Capitalize on current assets
Decline without innovation
Today
7
Time
© 2010 Deloitte Touche Tohmatsu
Innovator track: Create new opportunities
Revenue
Three levels of innovation
Growth
track
(Day after
tomorrow)
Super growth outside traditional business
Radical Innovation
–
–
–
–
Create the future market
Invest in future chances
Create new business models
Alliance with strategic partners
New products and / or services
Innovator
track
(Tomorrow)
Grow your traditional business
–
–
–
–
Create new changes in the market
Fast implementation of innovations
Realize renewing of the market
Alliance with partners
Quick wins
Fast-track
(Today)
–
–
–
–
Product modifications or additions
New marketing approaches
Adapt to changing environment
Capitalize on current assets
Decline without innovation
Today
8
Time
© 2010 Deloitte Touche Tohmatsu
Innovation only happens with the right ingredients...
Separate unit
Ownership at the top
Participation in Innovation Board
Fostering innovative &
entrepreneurial climate
Funding Model
Long term commitment (at least 3 years)
Visibility
Cross functions & independent
People
engagement
Focus on revenues
Bottom Up &
top Down
Formalized process
Innovation Strategy clear
Selection moments: Go / No-Go
Launching customers & Joint ventures
Evaluation of initiatives
Exit strategy known from start
Standardized process
© 2011 Deloitte The Netherlands
To effectively act upon the compression of the product life cycle, Innovation offers
four products
1
1
2
1
0
Target Operating Model Innovation - May 2011
2
Innovation offers four products;
1. Fast track; building on exciting
business and helping to
accelerate
2. Innovator track; growing
traditional business and helping
to expand
3. Growth track; growing outside
traditional business
4. Innovation Services; delivering
and improving innovative power
Projects
facilitate
thecustomers
service
with that
Deloitte
and its
offering:
1. Management processes; create
infrastructure to support, manage
and monitor innovation
processes
2. TOM; create a clear operating
model and process from ideation
to sales & delivery
3. Culture; improve Deloitte
mindset on Innovation
© 2011 Deloitte The Netherlands
Kwantiteit ideeën
Quality from Quantity, Top down & Bottom Up
Ideas (>1000)
1
Workshops (10%)
2
Business Cases (5%)
3
Propositions (2,5%)
4
Kwaliteit ideeën
1
1
Alumni event Management of Innovation
© 2011 Deloitte Touche Tohmatsu
Speeddating – Teaming example
Ideation
Creativity, create ideas
Incubation
Incubation
Commercialization
Commercialization
Problem solving capability,
taking initiative, persevere,
adjust
Sales, realize wins
Structure sales process
Concretize, summarize (pitch)
Analyse problem & solution,
conceptual thinking
Speed
Quality & project management
Analyse problem & solution,
conceptual thinking
Speed, decisive
Cooperation, evaluate
12
Analyse client needs, advise
Speed in sales process
Building client relationship
Phase
Innovator Track: Creative but result driven end to end process
Vision
phase
Activities
Inspiration
&
Getting
Organized
Results
Picture of your
future
13
Mobilisation &
Activation phase
Mobilisation
• Internal
campain
• Brainstorm
sessions
People
mobilised
Capturing
• Post on portal
• Sharpen ideas
Many rough
ideas
Pressure cooker
phase
Realisation
phase
1st
selection
2nd
selection
Pressure
Cooker Week
+/- 15 concepts in
pressure cooker
3rd
selection
Incubation
+/- 5
projects
Growth Track: Your business in 2020?
Revenue
Three levels of innovation
Growth
track
(Day after
tomorrow)
Super growth outside traditional business
Radical Innovation
–
–
–
–
Create the future market
Invest in future chances
Create new business models
Alliance with strategic partners
New products and / or services
Innovator
track
(Tomorrow)
Grow your traditional business
–
–
–
–
Create new changes in the market
Fast implementation of innovations
Realize renewing of the market
Alliance with partners
Quick wins
Fast-track
(Today)
–
–
–
–
Product modifications or additions
New marketing approaches
Adapt to changing environment
Capitalize on current assets
Decline without innovation
Today
14
Time
© 2010 Deloitte Touche Tohmatsu
Hoe identificeer je radicale innovaties? Growth Track: Strategische
inspiratie en initiatieven: een proces om te leren van de toekomst
Leer van de toekomst: ‘outside-in’
Strategische
initiatieven
Vandaag
<klant>
2020
X
<klant>
Woningmarkt
Woningmarkt
Macro omgeving / Wereld
Macro omgeving / Wereld
Strategische
input en inspiratie
15
© 2011 Deloitte The Netherlands
Fast Track: boost & innovate your current business
Revenue
Three levels of innovation
Growth
track
(Day after
tomorrow)
Super growth outside traditional business
Radical Innovation
–
–
–
–
Create the future market
Invest in future chances
Create new business models
Alliance with strategic partners
New products and / or services
Innovator
track
(Tomorrow)
Grow your traditional business
–
–
–
–
Create new changes in the market
Fast implementation of innovations
Realize renewing of the market
Alliance with partners
Quick wins
Fast-track
(Today)
–
–
–
–
Product modifications or additions
New marketing approaches
Adapt to changing environment
Capitalize on current assets
Decline without innovation
Today
16
Time
© 2010 Deloitte Touche Tohmatsu
Fast Track
http://www.youtube.com/watch?v=mOpMirLKonI
17
© 2011 Deloitte The Netherlands
Target Operating Model
Deloitte Innovation
Utrecht, May 2011
Organization
… like a separate entity
Holding B.V.
Innovation
B.V.
20
BG 1
BG 2
BG 3
BG 4
© 2011 Deloitte The Netherlands
Organigram Deloitte Innovation B.V.
Management Team
Partner
Director Innovation Services
Investment Portfolio Manager
Markt. & Comm.
Markt & comm. Manager
HR
Secretariat
HR Advisor
Management Officer
Senior Secretary
Finance
Management Controller
2
1
Sustainability
Innovation Services
Innovation Portfolio
Director Innovation Services
Senior Producers
Producers
Investment Portfolio Manager
Klant 1
Portfolio Team 1
Team 1
Team 1
Klant 2
Portfolio Team 2
Team 2
Team 2
Klant 3
Portfolio Team 3
Team 3
Team 3
Target Operating Model Innovation - May 2011
© 2011 Deloitte The Netherlands
Different teams are involved during the stages of an innovation proces
Ideation
Innovation Services
Innovation Portfolio
Innovation Council
Director Innovation Services
Senior Producers
Producers
Investment Portfolio Manager
Community Manager
Office Manager
Partners from all functions
Innovation Portfolio
Innovation Services
Innovation Council
Investment Portfolio Manager
Community Manager
Office Manager
Director Innovation Services
Senior Producers
Producers
Partners from all functions
Innovation Portfolio
Innovation Council
Innovation Services
Investment Portfolio Manager
Community Manager
Office Manager
Partners from all functions
Director Innovation Services
Senior Producers
Producers
Strategic Partners
Incubation
Strategic Partners
Commercialization
2
2
Target Operating Model Innovation - May 2011
© 2011 Deloitte The Netherlands
Process
Innovation offers you three products; fast, innovator and growth track
for incremental and radical innovation
Revenues
Growth
track
Growing outside traditional
business
Innovator
track
Growing traditional business
Fast track
Extending existing business
No
innovation
Decline of (long-term) revenues
when we do not dare to ‘jump’
to the next S-curve
Time since introduction
2
4
Target Operating Model Innovation - May 2011
© 2011 Deloitte The Netherlands
25
Legenda:
3 months
Go/No go decision (Executive Board)
Target Operating Model Innovation - May 2011
Go/No go decision (Innovation)
12 – 36 months
primair
Release
Monitor
Sales
acceleration
Evaluation
Incubation
Training people
(organization)
Market launch
Marketing and
sales plan
Pilot including
Client Feedback
Test and
Validate
Tracking and
reporting
Process/
organization
Team
development
Ideation
Resourcing
Marketing & Ext.
Business Plan
Product
development
Financial
analysis
Detailed market
research
Draft business
plan
Preliminairy
research
Enhance idea
Select ideas
Capture idea
Source an idea
Inspiration
Process house of the Growth Track
Commercialization
Function
Industry
Innovation
Ongoing
secundair
© 2011 Deloitte The Netherlands
26
Legenda:
3 months
Go/No go decision (all parties)
Target Operating Model Innovation - May 2011
Go/No go decision (Innovation)
6 – 12 months
primair
Release
Monitor
Sales
acceleration
Evaluation
Incubation
Training people
(organization)
Market launch
Marketing and
sales plan
Pilot including
Client Feedback
Test and
Validate
Tracking and
reporting
Process/
organization
Team
development
Ideation
Resourcing
Product
development
Business Plan
Financial
analysis
Detailed market
research
Feasibility study
Preliminairy
research
Screening of
idea
Enhance idea in
workshop
Post idea on
portal
Inspiration
Challenges and
opportunities
Process house of the Innovator Track
Commercialization
Function
Industry
Innovation
Ongoing
secundair
© 2011 Deloitte The Netherlands
Legenda:
27
Target Operating Model Innovation - May 2011
1 month
Go/No go decision (all parties)
Go/No go decision (Innovation)
2 – 4 months
primair
secundair
Monitor
Sales
acceleration
Training people
(organization)
Incubation
Evaluation
Market launch
Council selection
Go-to-market
plan
Extended value
proposition
Market research
Ideation
Kick-off
Teaming
Client feedback
Pressure cooker
selection
Preselection
Post value
proposition
Preliminairy
research
Draft value
proposition
Identify client
need
Challenges and
opportunities
Process house of the Fast Track
Commercialization
Function
Industry
Innovation
Ongoing
pressure cooker
© 2011 Deloitte The Netherlands
Ideation
2
8
Target Operating Model Innovation - May 2011
© 2011 Deloitte The Netherlands
Roles &
Responsibilities
Roles, Tasks & responsibilities for Functions, Industries and Innovation
Function
Roles
Tasks
Responsibilities
Idea generator
Deliver idea
Idea (& resources) delivery
Deliver resources
Resources delivery
Change Manager
Manage the change in the Function
and ensure embedding in BAU
Embedding of the product & team in
the organization (Function)
Supporter of sales manager
Deliver resources
Support Marketing & Sales team
Industry
Roles
Tasks
Responsibilities
Ideation
Idea generator
Deliver (direction of) ideas
Marketable idea delivery
Co-builder
Support the development and
production of new idea’s + deliver
launching customers
Sponsorship to production
Sales manager
Design & execute marketing & sales
(acceleration of) Sales
Roles
Tasks
Responsibilities
Design Leader
Encourage idea generation
Generation & selection of producible
and scalable idea’s
Builder
Develop idea’s to products that can be
marketed by the industry
Develop ideas to products
Supporter of sales manager
Deliver basic marketing tools
Support Marketing & Sales team
Ideation
Resource Supplier
Incubation
Commercialization
Incubation
Commercialization
Innovation
Ideation
Incubation
Commercialization
3
0
Target Operating Model Innovation - May 2011
© 2011 Deloitte The Netherlands
R
Industry
R
R
A
A
A
R
R
R
R
A
A
A
A
A
A
A
A
A
A
A
A
Responsible
Those who do the work to achieve the task.
Accountable
Those who are ultimately accountable for the correct and thorough completion of the deliverable and task.
In other words, an Accountable must sign off on work that the Responsible provides.
Consulted
Those whose expertise is needed and whose input is necessary to execute the task.
Informed
Those who are kept up to date on progress.
Target Operating Model Innovation - May 2011
A
R
R
A
R
Legend - Roles and Responsibilities
31
Release
R
R
Monitor
Function
R
Sales accelleration
R
Training people
(organization)
Target + extend business
plan
R
Evaluation
Financial analyses
R
Market launch and sales
Detailed market research
R
Sales, target+ marketing
plan
Draft business plan
R
Pilot + Client Feedback
Prelim. research
R
Process/Organization
Enhance idea in workshop
R
Training of People
Screening of idea
R
Test & Validate
Post idea on portal
R
Tracking and reporting
Source an idea
Innovation
Product development
Process step
RACI
R
R
A
R
R
KPI’s & Measurement
To control the process of innovation we have to determine and
agree upon KPI that are congruent with the As One strategy
In FY2012, the commonly shared goal is to realise an additional revenue of € 77m from
innovative products
Functions
KPI on:
• 15 mio revenue out of innovation
Industries
KPI on:
• 15 mio revenue out of innovation
Innovation
KPI on:
•
Revenues Innovation Services of
1,1 mio
•
Revenues Fast Track 15 mio (in
collaboration with Functions)
•
Revenues Innovator Track 15
mio (in collaboration with
Industries)
•
Generation of 500 new ideas
•
Quarterly meetings with FL and
IL
•
Several steals out of the
marketplace
Rewarding
3
3
Target Operating Model Innovation - May 2011
© 2011 Deloitte The Netherlands
Voorbeelden
Results? Hundreds of engaged people, thousands of ideas, millions
of new revenue
Clients
Growth track
(Day after
tomorrow)
Deloitte
 Data driven business model
 Online Business Innovatoin
Innovator
track
(Tomorrow)
Fast-track
(Today)
 Assuring the Cloud
 Innovator Services
 Master Data Management
 Cashboard
© 2010 Deloitte Touche Tohmatsu
To conclude
Eat yourself;
be your own
worst nightmare!
© 2011 Deloitte The Netherlands
Disclaimer:
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and
its network of member firms, each of which is a legally separate and independent entity. Please
see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and
its member firms.
© 2011 Deloitte Touche Tohmatsu