best practices for innovating and acquiring competitive advantages prof. rapha l cohen, phd rcgetratex.ch mobile 41-79

1. 1 Best Practices for Innovating and Acquiring Competitive Advantages Prof. Rapha�l Cohen, PhD rc@getratex.ch Mobile +41-79-6262383 Tel +41-22-3469900 www.IpOpModel.net www.supercohen.com

3. Promoting Innovation and Change Traditional change management is top-down Management decides of change Change management = convincing everyeone else to go along When decision making is the priviledge of management No empowerment

4. Means lack of trust Forces to think for everyone Means accepting the consequences of team�s lack of engagement Leads to giving up 35% productivity and profits improvements No Empowerment

5. Change Management Bottom-up (MbOp) vs. Top-down Builds Commitment Delivers effective results Boosts organizations

6. Management by Opportunity The 5 pillars of MbOp for Empowerment Management commitment Environmental conditions Employees� Motivation The Wiiifm (What is in it For Me) The IpOp Tools (www.ipopmodel.net) Intrapreneurship education Breaking corporate silos

7. How Some Companies did it Offer a user-friendly universal validation process suitable for all kinds of innovations or initiatives Inventors become effective Biz Dev people Roadmap helps teams ask the right questions Encourages them to go further (��how to��) Increases the inventors� confidence level Helps them communicate the merits in a convincing manner Captures innovation knowledge in a database

8. IpOp ModelTM Focuses on opportunities (business, process, �) Works for incremental or radical innovation Verifies compatibility with corporate objectives Evaluates the benefits and feasibility Prepares the action plan Reduces the risk of failure Avoids writing early stage biz plans by producing a convincing business case for obtaining buy in

9. The Output is a Business Case answering the critical questions of clients decision makers: Is the need addressed by this idea real? How can this project support corporate objectives? What benefits will this offering bring? What are the competitive advantages that we can take advantage of?

10. A Solution Based on an Application Already Adopted by P.A.R.C. (Xerox) Nestl� Oracle Orange ST Micro Equant Serono � High and low tech Co. Banks Startups Public sector Diversity promotion Thunderbird, Case Western Reserve, etc. ESCP-EAP, HEC, etc.

11. Oracle Survey After 3 Months 56% of the participants have initiated new projects that they would not have started without attending the Opportunity Booster workshop The �Innovation by Opportunity� tools have been used by 87% of the participants in their daily work

12. Benefits for Oracle Low cost and focused innovation in line with corporate objectives (controled) Competitive advantage Employees� COMMITMENT and dedication Satisfaction & Retention

13. Serono�s BioCell A new business model emerged A 10 page report convinced Management Turned a RoTS into a spin-off (only 2 people were externalized) Gave ��hope�� to other researchers

14. How Does It Work? The IpOp Model guides innovators, step by step, to answer challenging questions that force them, in a user friendly manner, to really mature their proposal before presenting it to management The answers are organized by the software to produce an easy to read structured Business Case The database captures all ideas in a Knowledge Management system The process often helps identify new opportunities

15. IpOp Impact on the Organization Empowers employees to seize opportunities that bring real competitive advantages Very client focused Increases the success/failure ratio fewer aborted projects Boosts pro active behavior to find solutions Improves job satisfaction Increases employees� engagement

16. Universal roadmap for all innovations (for both tech and non-tech innovations: marketing ideas, process improvements, management schemes, products, services, etc.) Helps allocate resources by providing a comparison framework between projects competing for resources Shared and common vocabulary to discuss project within the team and with management (including: ��techies�� and business developers) Communication platform (non literary!) IpOp Web Application Benefits (1)

17. Storing all ideas related to innovation, including rejected ones (= innovation repository) Manage paternity (=> recognition) Comparing outcome with initial choices Encourages innovation team to obtain missing information Provides rational justification of action plan IpOp Web Application Benefits (2)

18. Rational analysis reducing the emotional factor biasing the decision making process Stores in a database all ideas related to innovation, including rejected ones, Avoids reanalyzing ideas previously rejected without solution to overcome previous objection Allows export of data to other applications IpOp Web Application Benefits (3)

19. Collaborative application structuring team work Lets compare the outcome with initial choices (learn) Allows capturing reasons of succces and failure Prevents repeating past mistakes in other locations Facilitates replication of winning solutions/strategies Allows recycling proposals in other projects Innovation Knowledge Management (sharing without the constraints of traditional KM systems) IpOp Web Application Benefits (4)

20. Lightweight Validation Process Ideation stage Complements creativity and discovery stages Step by step roadmap Brings rigor and discipline Business Case before Business Plan Straigtht forward evaluation and monitoring Helps convince Management

21. Low Technological Innovation Is inexpensive (requires fewer resources) Delivers faster results Can be done by anyone Is stimulating and fun Allows people to blossom and learn Who has a non tech innovation program? Who has a non tech innovation program?

22. Best Practice for Innovation (1) Public and real commitment to innovation Provide some intrapreneurial supporting conditions (= structural support) Promote bottom-up leadership Provide middle management intrapreneurship education Recruit an innovation champion (coached?) Constantly look for obstacles preventing innovation

23. Best Practice for Innovation (2) Start with pilot units before deploying Reward and publicize the results Implement balanced scorecards per unit Launch a couple of ��low-hanging-fruit�� initiatives Sanction innovation killers Give tools to reduce the level of uncertainty