Innovation

No Commitment, No Ideas

picture-1.pngLast Tuesday Wichert van Engelen from ING presented a book he and his people wrote. It is titled “ideeën genoeg” (which translates to “enough ideas”).

In his interesting and entertaining presentation he stated that they chose not to implement idea management because they focus on radical innovation with the promise of significant revenues. In their opinion idea management is more suited for incremental innovation. Furthermore, it fragments energy to many diverse ideas, ideas are never completely new, and there are ownership issues.

Lately one of our clients, that did implement idea management, told us they aim for 5 ideas that deliver over 100 million Euros and were rethinking the added value of idea management in this pursuit.

I cannot see why idea management could be in the way of getting the radical ideas. Furthermore, most arguments against idea management can be lead back to unsuccessful experiences and In many organizations there just is not enough commitment to the process to make it successful.

Insufficient commitment results in a decline in the number of ideas and more importantly a decline in the quality of the ideas. This result then convinces management that idea management does not work.

We saw this happen in the old days with the idea boxes in the cantina and it happens today with highly advanced web-based idea management platforms.

Successful idea management needs attention and hard work!

I’m planning to write about using idea management as a change catalyst to move toward a more innovative organization. And of course I’m interested to further discuss why the big radical innovation cannot come from idea management. Your comments and insights would be most valuable.

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Mobile Communications For Social And Environmental Benefits.

A few days ago I wrote about the fact that wikis are actually changing knowledge management for the better. Here’s another example.

Today I was lead to a blog that reports on an interesting initiative ShareIdeas.org.

ShareIdeas.org is an online community and a wiki for sharing ideas on how to use mobile communications for social and environmental benefits.

ShareIdeas.org was created with support from Nokia and Vodafone, but belongs to the growing global network of individuals and organizations that use this virtual gathering place to communicate – and collaborate.

The idea for ShareIdeas.org came from Ndidi Nwuneli, founder and CEO of LEAP Africa, a Nigerian NGO dedicated to nurturing a new generation of African leaders.

Groups like ours would really benefit from a resource that shows us how to use mobile technology to carry out our work more effectively,” said Ndidi at a Nokia stakeholder event of NGO and corporate leaders.

ShareIdeas.org was created in response to Ndidi’s request.

Subjects vary from reporting Child Rights Violations to Mobile Learning.

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Trots op je IKEA keuken?

dyolDeze week viel de IKEA keukengids op de mat. Mijn oog viel op een stikker op de kaft. De stikker roept je op je keuken te zetten op Designyourownlife. De mooiste keuken krijgt 5000 Euro (te besteden bij IKEA).

Is Ikea aan het Crowdsourcen?

Ik moest meteen aan LEGO denken waar mensen online hun bouwwerken kunnen maken en deze vervolgens ook kunnen bestellen. De ontwerpen worden allemaal op de site getoond en je kan ze allemaal bestellen. De populaire modellen worden vervolgens ook in productie genomen en in winkels verkocht.

Zou IKEA de creativiteit van haar klanten proberen aan te spreken? De enige vraag die bij me op kwam, was dat het wellicht slimmer zou zijn ontwerpen op de site te laten zetten en het gewonnen geld aan een keuken te besteden. Op die manier zorg je er meteen voor dat de winnaars ook bij jou de keuken kopen en niet bij de concurrent.

Na een bezoek aan de site lijkt het echter over een ordinaire beauty contest te gaan waar je fotootjes upload waarop gestemd kan worden.

IKEA, volgens mij moet het Lego-concept ook voor jullie kunnen werken en niet alleen voor keukens!

Lego

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“The Myths of Innovation”

The Myths of InnovationGuy Kawasaki published an interview on his blog with Scott Berkun, author of “The Myths of Innovation“. In ten questions he gives an interesting summary of his book.

I think the following quote is interesting:

  1. Question: Why do innovators face such rejection and negativity? Answer: It’s human nature—we protect ourselves from change. We like to think we’re progressive, but every wave of innovation has been much slower than we’re told. The telegraph, the telephone, the PC, and the internet all took decades to develop from ideas into things ordinary people used. As a species we’re threatened by change and it takes a long time to convince people to change their behavior, or part with their money.

Organizations are also threatened by change; far too often they can not deal with these changes and fail to benefit from the opportunities that arise from them. It’s in their nature to hold on to the profits that ‘business as usual’ brings. Is your organization ready to embrace change? Are you able to see the potential of ideas that at first seem to threatening? Do you give innovators the space they need and deserve?

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At 3M, A Struggle Between Efficiency And Creativity

3M is the text book case of an innovative company. They prided themselves on drawing at least 1/3 of their sales from products released in the past five years. It was official company policy that employees could use 15% of their time to pursue their own projects.

3M website

However, some said that the company had become unwieldy, erratic, and sluggish. So they hired McNerney, a Jack Welch disciple, to straighten the company out.

On the news of his hiring stocks soared 20%. He axed 8000 (11%) employees and cut 22% of capital expenditure in his first year. McNerney also introduced the Six Sigma program and drove it through the company. The result was years of increased sales and profits.

However, today the percentage of sales from newly developed products dropped below 25% percent and there is not enough innovation.

After 4,5 years McNerney left to pursue a new challenge at Boeing. The new CEO, George Buckly, is now facing the challenge to manage the tension between innovation and efficiency. The same challenge that is bedeviling CEO’s everywhere.

Many workers say they are happy that focus is shifting from profitability and process discipline to growth and innovation.

Full story

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Why Wiki’s Do Work

Enterprises that are structurally successful in knowledge management and online collaboration have significant competitive advantages. However, chances are slim that you know many of such organizations. Knowledge management and online collaboration just have not gained enough momentum within enterprises. Things seem to be changing though.

Wiki’s successfully overcome a number of traditional knowledge management and online collaboration issues.

According to Wikipedia: “A wiki (sometimes wiki wiki) is a web application designed to allow multiple authors to add, remove, and edit content.”

Strange as it may sound; the main difference between traditional knowledge management platforms and wiki’s is that people are actually using and embracing wiki’s. It is said this is due to user friendliness, great search possibilities, easy linking and the powerful feeling of being an author.

Reasons not heard so often but more relevant for enterprise uses of this technology is that previous Knowledge Management platforms too rigidly dictated work flows and had too much focus on capturing “actual knowledge”. Such knowledge management is not intuitive and often even burdensome for those working with these systems.

Wiki’s on the other hand leave users free to work with them as they please and are easy to use. People themselves define what they store and what information is valuable. People can post their content any way they like. If others think it is incomplete or incorrect, they can edit, remove, or discus it.

Another drawback of previous platforms is their costs. Implementing a typical Knowledge Management platform would be costly, not to mention the resourcing required to set it up and maintain it. The investments in set-up and licensing of wiki’s are small. There is also no need to migrate the old systems to the new platform as simply linking to the content of the old platform makes it searchable. Maintenance on wiki platforms is small compared to the traditional systems. As users work with the knowledge it is maintained automatically.

There is one force that still needs to be overcome. As wiki’s lack formal control mechanisms, management fear the resulting lack of control.

To sum up, wiki technology is making knowledge management and online collaboration work, because people actually use it. This adoption success and the low costs are important reasons that many companies today are looking into starting to use wiki technology on a large scale.

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Shaping up for the Open Innovation Paradigm

William Chesbrough, who was early to detect a paradigmatic change in the domain of Innovation, introduced the term Open Innovation. Chesbrough opens our eyes to see that companies should make use of external resources to reach their full potential. There are basically two reasons why you should take on a more external view on innovation. Firstly because a lot is happening outside of your organization (outside-in), and secondly because there are a lot of opportunities outside of your organization (inside-out).

Definition:

“Open innovation is the use of purposive inflows and outflows of knowledge to accelerate internal innovation, and expand the markets for external use of innovation, respectively. [This paradigm] assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as they look to advance their technology.” (Henry Chesbrough; 2006, Open Innovation: Researching a New Paradigm)

Outside-in: Not all smart people work for you.

Your organization might have the brightest of minds working on innovation, but do you think they can outsmart the masses of bright people outside the walls of your R&D department? Smart organizations like P&G give the right example. By 2010, P&G wants 40% of their innovations to be coming from sources outside the company. One of the means P&G uses to accomplish this is Innocentive: a platform where a community of over a 100.000 researchers think about the challenges that are put on the website by companies that will pay for the solution to their problem. Companies don’t have to originate the innovations to profit from them: external R&D can create significant value.

Inside-out: 80% of all patents within companies is never used.

Not only should companies profit from Intellectual Property from outside organizations. Intellectual property that isn’t used by organizations, can still be used by others. About 80% of patents in large organizations remain unused while these patents could earn money in other organizations through licensing. In this respect the strategy and size of a company should also be looked at as an impediment to innovation. Small initiatives often don’t fit the company strategy very well or are initially too small to enjoy the economies of scale that large organizations pursue. For radical innovation to occur however companies should not confine themselves to such limitations as size or strategy. Some initiatives should be given a chance outside organizations in spinoffs or joint ventures.

Where Chesbrough focuses mainly on patents and technological innovations, we can take the concept of open innovation a step further with the insights of MIT professor Eric von Hippel. Von Hippel’s work is focused on the enormous innovation-potential that companies can find with their users. When involving users in the process of innovation, products and services are developed that have an inherent fit with needs in the market.

The open innovation paradigm raises new innovation management issues to cope with. Is your organization ready to work with other companies to innovate? Are you ready for the ideas of your customers? Do you know what’s happening outside of your organization? Are you in shape to open up?

Recommended reading:

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