C io as innovation leader innovation mechanism
This presentation is the property of its rightful owner.
Sponsored Links
1 / 9

C IO as Innovation Leader - Innovation Mechanism- PowerPoint PPT Presentation


  • 46 Views
  • Uploaded on
  • Presentation posted in: General

C IO as Innovation Leader - Innovation Mechanism-. October 28, 2007 Akihiro Kuroda IBM Business Consulting Services Taro Kamioka Hitotsubashi University. Japanese CIO’s Thoughts on Innovation (1/2). 1. CIO’s Roles & Responsibilities (R&Rs).

Download Presentation

C IO as Innovation Leader - Innovation Mechanism-

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


C io as innovation leader innovation mechanism

CIO as Innovation Leader- Innovation Mechanism-

October 28, 2007

Akihiro KurodaIBM Business Consulting Services

Taro KamiokaHitotsubashi University


Japanese cio s thoughts on innovation 1 2

Japanese CIO’s Thoughts on Innovation (1/2)

1. CIO’s Roles & Responsibilities (R&Rs)

Japanese CIOs’ perception is that they have 2 major R&Rs for innovation.They believe they need more organizational power to lead innovation.

R&Rs

  • Promoting/leading cross-functional innovation by building “mechanisms”

    • “CIOs should lead innovation which is cross-functional or which involves external partners.”

    • “CIOs should build mechanisms to lead innovation effectively. In addition, CIOs need strong support by Business Units (BUs).”

  • Sending out value-added information

    • “Showing technology-driven innovation examples is a big value of CIO.”

  • US/EU CIOs only: Connecting wisdoms of various kinds of people for ideation of new business models

Issues

So as for CIOs to lead innovation, they believe they need more organizational powerwith new performance evaluation standards

  • “Leading innovation means responsibility. Traditional evaluation standards for CIOs & IT departments (QCD of routine work) hinder innovation.”

  • “Perception of CIO’s R&Rs by top management has to be changed.”


Japanese cio s thoughts on innovation 2 2

Japanese CIO’s Thoughts on Innovation (2/2)

2. Innovation Targets

  • The purpose of innovation is to win in business competition. Thus, innovation should be made for what needs to be differentiated, while agile/low-cost/safe operations based on integration/standardization are sufficient for other areas

  • The current situation is that operational innovation is the majority(Confirmed only with CIOs of the manufacturing & utilityindustries)

3. External Partners

  • In addition to outsourcing of non-core areas, strategic partnership in core areas is increasingly important so as to obtain skilled resources and methodologies

    • “Innovation can be stimulated, by utilizing networks of external wisdoms.”

    • “Consultants made a great job in transforming our IT organization.”

4. Human Resources

  • Key to business innovation is an organization which puts together BU people with a sense of IT and IT people with that of business

  • Skill Development:

    • “Core competency for the new R&Rs of a CIO dept. (IT, business, strategy, etc,) should be defined first. A big change of their mindset is also required.”

    • “Leading innovation is a good experience of a CIO, who should become a business executive.”


Japanese cio s thoughts on innovation 1 21

Japanese CIO’s Thoughts on Innovation (1/2)

1. CIO’s Roles & Responsibilities (R&Rs)

Japanese CIOs’ perception is that they have 2 major R&Rs for innovation.They believe they need more organizational power to lead innovation.

R&Rs

  • Promoting/leading cross-functional innovation by building “mechanisms”

    • “CIOs should lead innovation which is cross-functional or which involves external partners.”

    • “CIOs should build mechanisms to lead innovation effectively. In addition, CIOs need strong support by Business Units (BUs).”

  • Sending out value-added information

    • “Showing technology-driven innovation examples is a big value of CIO.”

  • US/EU CIOs only: Connecting wisdoms of various kinds of people for ideation of new business models

Issues

So as for CIOs to lead innovation, they believe they need more organizational powerwith new performance evaluation standards

  • “Leading innovation means responsibility. Traditional evaluation standards for CIOs & IT departments (QCD of routine work) hinder innovation.”

  • “Perception of CIO’s R&Rs by top management has to be changed.”


Two types of activities mechanisms for innovation

Two Types of Activities/Mechanisms for Innovation

Policy

Policy

Policy

Plan

Plan

Plan

Strategic Positioning

Strategic Positioning

Strategic Positioning

Bullets

Bullets

Bullets

Operations

Operations

Operations

Targets

Targets

Targets

Fulfillment

Fulfillment

Fulfillment

Check

Check

Check

Do

Do

Do

Bullets

Bullets

Bullets

Operations

Operations

Operations

Targets

Targets

Targets

In addition to (A) activities to realize each innovation, it is of critical importance to (B) establish innovation foundation (a set of “mechanisms”) for a company to realize effective innovations continuously

New Business

Business Model (Current)

Innovation

Business Model (Future)

Conversion to Create New Customer Values

(A) Realization of Each Innovation(Ideation & Implementation of Each Innovation)

(B) Establishment of Innovation Foundation

  • New Markets & Customer Segments Development

  • New Products & Services Creation

  • Operational Transformation

  • Revenue Structures Reformation

  • Innovation Management

  • Innovation Processes and IT

  • Innovation Organization and Human Resources


C io as innovation leader innovation mechanism

Business Model (Current)

New Business

Business Model (New)

Innovation

Conversion to Create New Customer Values

Policy

Policy

Policy

Plan

Plan

Plan

Strategic Positioning

Strategic Positioning

Strategic Positioning

Bullets

Bullets

Operations

Operations

Targets

Targets

Bullets

Operations

Targets

Check

Check

Check

Fulfillment

Fulfillment

Fulfillment

Targets

Targets

Bullets

Bullets

Operations

Operations

Do

Do

Targets

Bullets

Operations

Do

(A) Realization of Each Innovation(Planning and execution of each innovation)

(B) Establishment of Innovation Foundation

  • New Markets & Customer Segments Development

  • New Products & Services Creation

  • Operational Transformation

  • Revenue Structures Reformation

  • Innovation Management

  • Innovation Processes and IT

  • Innovation Organization and Human Resources

Innovation Foundation

Innovation foundation is essential to realize innovation continuously. A CIO organization is capable of leading its establishment.

Elements of Innovation Foundation

Innovation Management

Innovation ProducerInnovation leader with business/IT skills and leadership

Incubation Management PlatformManagement system to coordinate innovation and existing business

Innovation Processes and IT

Ideation ProcessEstablished process to collect and integrate various kinds of wisdoms

Collaboration PlatformMechanisms for information sharing and collaboration

Resource Channels for:(1) Partnership with best-practice companies(2) Collaboration with R&D organizations

Execution PlatformFlexible business processes, PMOs, and IT that enable quick realization of innovative ideas

Innovation Org. & HRs

Innovation CenterOrganization that is responsible for promoting & leading innovation

Intrapreneur EnablementMechanisms to obtain or develop innovative human resources


Innovation promotion with an innovation center

Innovation Promotion with an Innovation Center

Establish competitive advantages in the company’s core business areas through technology-driven innovation

Objective

Roles & Responsibilities

Establish and maintain innovation mechanisms

(B) Lead innovation projects

(C) Establish and make the most use of collaborative relationship with external partners and BUs

(D) Prioritize projects and supervise IT implementation

Board of Diectors

Innovation Center

Center Director

(A)

(C)

(D)

Innovation PMO

Alliance & Partnership

IT Dept.

(B)

Innovation Producers

External Partners

Research Companies

  • Lead innovation projects from ideation to implementation

  • Collaborate with external partners and BUs

Business Partners

BUs

R&D

Sales &Mktg

Mfg & Logistics

Controls

Customers

Provide market research, best practices, customer needs, and innovation ideas

  • Provide business needs, BU strategies, and innovation ideas

  • Assist in business case creation, pilots, and business maximization


C io as innovation leader innovation mechanism

Thank you.


Wide sense definition of business models

Wide-Sense Definition of Business Models

A business model is a bird’s-eye view of how a company creates customer values in terms of markets/customers, products/services, and delivery mechanisms. It also includes strategic positioning, such as scenarios of value creation and differentiation.

  • Vision & Mission

  • “Profitability, Growth , Stability”

Which direction do we proceed?

Policy

Plan

Where do we differentiate ourselves and make money?

  • Value Creation Scenario

  • Differentiation Scenario

  • Management Issues

Strategic Positioning

Bullets

Operations

Targets

Check

Fulfillment

Do

How to do it?

Targets

Operations

Bullets

  • Markets

  • Customer Segments

  • Processes

    • Strategy, Product Planning, R&D

    • Sales, Mktg, Production, Logistics

  • Organizations, HRs/Skills

  • Business Rules & Standards

  • IT

  • Products

  • Services

Business Model(Wide Sense)


  • Login