Monthly Archives: April 2010

Fail and learn to innovate

In a recent blog post on the Innovate on Purpose blog, the author Jeffrey Philips borrows a famous quote from Winston Churchill and bends it towards the field of Innovation: “Innovation success is based on going from “failure” to “failure” without a loss of enthusiasm.” In a lot of companies he writes, the fear of failing inevitably creeps in. This is very true. Personally, I think this stems from the fact that people responsible for a project/idea more or less connect their career to the project. From experience with different innovation projects I would suggest to take a step back and let ideas roam through the company to evolve more. At Innovation Factory we like to see ideas as a seed.

Most often ideas need some attention and enrichments from others to grow to a more mature state before a good decision can be made whether an idea should be picked up to start a project. Hence the seed metaphor; a seed also needs some attention and enrichment (water) to grow. The nice thing about the upcoming social software tools (Enterprise2.0 software) is that they suit this approach very well. First of all with tools like idea management software it is very easy for employees, and possibly suppliers and clients as well, to contribute ideas. But the real difference stems from the fact that you can use the collective brainpower to enrich (or grow) these ideas. A third interesting aspect of these type of tools is the fact that ideas (and their enrichments) get stored online. So far my story about software tools, because as the name implies they are merely the tools to become more innovative; It’s all about the way you use these tools whether your company will be successful at innovating.

To come back to the failure aspect, another quote in this context is very apt. It is a quote from Eric Schmidt, CEO of Google, directed to his employees: “I hope you fail often and I hope you fail fast”. As I described before, Google is a very innovative company. What Schmidt implies with his statement is that he wants Google employees to try out a lot of new ideas. In his quote the company culture is pronounced that it doesn’t matter if you make mistakes or formulate an idea that won’t make it. It is part of the process to come to new successful products or services as long as you learn from the mistakes and failures. The more you fail, the more you learn; while the faster you fail, fewer costs are made to learn. This learning from failures and discovering rapidly whether an idea is worth an investment in time and money to develop further is very well supported by social tools like idea management software. Like stated before, all the failures (ideas that won’t make it now) are stored online. So others that come up with the same idea at a later stage won’t have to spend time and money to do research for that idea. While over time, the market might have changed or new technologies might have come available and an idea that was rejected before might be great to develop now.

Probably the most crucial aspect in the above described situation is creating a company culture where failure is not punished but stimulated. A CEO stating that exact message is a very important drive for a company to become more innovative.

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How do you get people to share their knowledge?

Screen shot 2010-01-13 at 18.27.00Internal communities help people within an enterprise solve problems faster and more effectively. A vibrant community, which brings together people from across the organisation will also generate more innovation.

A key component of the community is the ability of people to access knowledge already available within the company. Knowledge can be found by searching the community platform for stored knowledge or to locate the people that posses, or have access to it. Having immediate access to such knowledge leads primarily to a reduction in the (re)search costs incurred (you don’t need to hire external expertise so often). In situations where access to the shared knowledge of a community is not available, time to research a subject increases dramatically along with costs. In the communities we manage we have seen savings of hundreds of business research and analysis hours on a single subject.

Such a system provides great benefits both for the organization and for the individuals. This should be reason enough for people to contribute to the community. In reality, however, it proves to be tremendously difficult to motivate people to help colleagues and lift these constraints on sharing knowledge. There are many reasons that govern this reluctance. Many aspects are psychological, such as fear of not being taken seriously or fear of losing the monopoly on that knowledge. Such psychological factors are complex to manage and take time and trust, to change for the better.

There is one factor that has great impact on improving access to knowledge, that can be managed quite easily. Instead of asking people to actually answer a question, you describe your ‘knowledge need’ and ask people that could help you to make themselves known. By doing this you start to build a ‘knowledge network’. These knowledge networks are very powerful in giving people access to knowledge. You can think of them like hyperlinks on the web pointing to relevant sources, only this time the links point to relevant people. Besides being a powerful way to unlock knowledge this method also helps lift the constraints on sharing I described earlier. People no longer have to be scared of losing their monopoly on knowledge as they remain the gatekeeper. Further, the time investment to indicate you have such knowledge is negligible. In our active communities we also see signs that it actually encourages people to share as it’s a way to profile themselves as an expert within the organisation.

At one of our clients an employee was asked to work on search engine optimization (SEO) for the website of a specific division. She posted a request for help on the internal community asking who had experience implementing SEO for a website. Five specialists replied that they had experience and would be happy to help out. Recounting her experience, she reflected that access to the knowledge of these people had saved her at least two months work and she had no need to hire external experts to get her going. Furthermore, in the future anyone with questions about SEO just has to search for the term and will have access to the knowledge in an instant.

So how do you create the environment in which this can happen? You need to shift the paradigm in peoples’ minds that you do not have to share the knowledge itself. We find that the best way of doing so is to set the example by sourcing two or three knowledge requests and asking a number of experts to make themselves known. Once a few strong cases are visible people catch on very quickly.

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Case: ROI of Internal Communities

This case describes a bottom up innovation initiative at a large Dutch insurance company. The case shows that bottom up innovation in large enterprises through the use of an internal community, results in lower costs and an improvement of the speed and quality of the first 2 stages of the Stage-gate process.

Bottom up innovation is the concept where ideas ‘bubble up’ from anywhere in the organisation. Employees lead the idea through the innovation process by utilising relations based upon knowledge, experience, and influence in their network and not so much by navigating company hierarchies.

Bottom up innovationThis case describes a bottom up innovation initiative at a large Dutch insurance company. The case shows that bottom up innovation in large enterprises through the use of an internal community, results in lower costs and an improvement of the speed and quality of the first 2 stages of the Stage-gate process.

It also suggests that, compared to the traditional way of innovating, it increases the innovation momentum within the organisation leading to more and better quality ideas and eventually a more innovative, collaborative culture within the organisation.

Bottom up innovation is the concept where ideas ‘bubble up’ from anywhere in the organisation. Employees lead the idea through the innovation process by utilising relations based upon knowledge, experience, and influence in their network and not so much by navigating company hierarchies.

Download here: Bottom_up_innovation

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TNT Post betrekt medewerkers op actieve wijze bij innovatie-ontwikkeling

TNTTNT Post gaat met behulp van de expertise van Innovation Factory uit Amsterdam voortaan al zijn medewerkers nog actiever betrekken bij de innovatieve ontwikkeling van zijn producten en diensten.
Beide partijen hebben onlangs daartoe een samenwerkingscontract ondertekend. Het bedrijf is overtuigd van de kracht van de kennis en ideeën van zijn medewerkers en wil hen actief betrekken bij innovaties. Het door Innovation Factory ontwikkelde ideeën-managementsysteem IdeaNet™ helpt met het (virtueel) verbinden van de medewerkers binnen een bedrijf, waardoor er veel meer kennis en expertise beschikbaar komt. Dit leidt tot snellere, goedkopere en efficiëntere innovatie. Eerder kozen ook Achmea, Vodafone Group en UPC voor deze technologie en ondersteuning.

Innoveren met elkaar
Ger Jacobs, Commercieel Directeur TNT Post: “Om vooruit te blijven lopen op de ontwikkelingen in onze markt en leidend te blijven met onze dienstverlening is innovatie het sleutelwoord. Innovatie vraagt echter niet alleen om woorden, maar ook om daden. Wij verwachten dat we door samen te werken met Innovation Factory meer innovatiekracht uit onze medewerkers kunnen halen. Met IdeaNet™ creëren we een eigen social community waarbij collega’s actief, op directe en open wijze hun ervaringen en ideeën delen om processen of producten te verbeteren, en om nieuwe productideeën te ontwikkelen. Die community staat niet in een dag. Dit vraagt om actieve stimulatie en betrokkenheid van collega’s en hun directe management. Om dit proces op gang te brengen en te houden, blijft Innovation Factory aan de zijlijn betrokken en organiseren ze bijvoorbeeld ook een speciale sessie om ideeëndeling met elkaar op gang te brengen. In het eerste jaar zullen zij helpen met het vaststellen van relevante innovatiethema’s waarbinnen het ideeënproces van start kan gaan.”

Begeleiding van idee tot product
Han Gerrits, oprichter en CEO van Innovation Factory: “We zijn erg blij met de aanpak van TNT Post. Ze zien heel goed in dat ideeën uit alle hoeken van een organisatie kunnen komen en willen dat op termijn collega’s in de hele organisatie verbonden zijn aan de community. Ze vragen daarvoor onze actieve begeleiding, van het idee tot de ontwikkeling en productlancering, waardoor er steeds slimmer met budget, tijd, arbeidskapitaal en innovatiekansen omgegaan kan worden en de kans op succesvolle, baanbrekende ideeën wordt vergroot.”

Over Innovation Factory
Het software- en adviesbedrijf Innovation Factory is opgericht door professor Han Gerrits (VU University Amsterdam), gespecialiseerd in innovatiestrategie en technologie. Innovation Factory helpt sinds 2005 bedrijven met het opzetten van innovatie communities. Door het (virtueel) verbinden van de medewerkers binnen een bedrijf komt er veel meer kennis en expertise beschikbaar, dit leidt tot snellere, goedkopere en efficiëntere innovatie. Door adviezen, training en speciale software ondersteunt Innovation Factory organisaties om succesvolle innovators te worden. Innovation Factory verandert mindsets en overtuigt medewerkers en klanten om zo als partner een innovatiecultuur op te bouwen. Dit doet Innovation Factory onder andere bij bedrijven als Vodafone Group, TNT Post, Achmea en UPC. www.innovationfactory.eu

Over TNT Post
TNT Post verwerkt dagelijks 16 miljoen poststukken (waarvan 400.000 pakketten) met ruim 7,6 miljoen bestemmingen in Nederland. Het bedrijf is ook actief in andere Europese landen en Azië. Van groeiend belang zijn diensten die elektronische data omzetten in fysieke post. TNT Post is in de eerste plaats actief op het gebied van post: collectie, sortering, transport en aflevering van brieven en pakketten. Daarnaast is de onderneming gespecialiseerd in data- en documentdiensten, direct mail, e-commerce en internationale post. TNT Post heeft zo’n 58.000 mensen in dienst in Nederland. De omzet van TNT Post over het derde kwartaal 2009 bedroeg 956 miljoen euro. TNT Post is onderdeel van TNT N.V.  www.tntpost.nl