The executive guide to innovation : turning good ideas into great results

185 Pages·2013·2.526 MB·English

by  Keathley, Jane, Meggarrey, Ian, Merrill, Peter, Owens, Tracy L., Posey, Kevin

The execuTive
Guide To
innovaTion
Turning Good ideas
into Great results
deliver
innovate
opportunity
create
market
connect
epiphany
accomplish
breakthrough
value develop
disrupt
Jane KeaThley, PeTer Merrill,
Tracy owens, ian MeGGarrey & Kevin Posey
The Executive
Guide to
Innovation
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The Executive
Guide to
Innovation
Turning Good Ideas into
Great Results
Jane Keathley, Peter Merrill,
Tracy Owens, Ian Meggarrey,
and Kevin Posey
ASQ Quality Press
Milwaukee, Wisconsin
American Society for Quality, Quality Press, Milwaukee 53203
© 2014 by ASQ
All rights reserved. Published 2013
Printed in the United States of America
19 18 17 16 15 14 13 5 4 3 2 1
Library of Congress Cataloging-in-Publication Data
Keathley, Jane.
The executive guide to innovation : turning good ideas into great results / Jane Keathley,
Peter Merrill, Tracy Owens, Ian Meggarrey, and Kevin Posey.
pages cm.
Includes bibliographical references and index.
ISBN 978-0-87389-860-7 (soft cover : alk. paper)
1. Creative ability in business. 2. Technological innovation—Management. 3. Business
enterprises—Technological innovations. 4. Success in business. I. Title.

HD53.K426 2013
658.4'063—dc23 2013023866
ISBN 978-0-87389-860-7
No part of this book may be reproduced in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written permission
of the publisher.
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Table of Contents
List of Figures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix
Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xi
Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiii
Acknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xv
Introduction: Why Innovation? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xvii
Chapter 1 The Innovation Imperative . . . . . . . . . . . . . . . . . . . . 1
1.1 Building the Business Case for Innovation.............. 1
1.2 What Is Innovation? ............................... 3
Product Innovation ............................... 4
Process Innovation................................ 6
Business Model Innovation......................... 6
1.3 Improvement versus Innovation ...................... 8
1.4 Types of Organizations............................. 10
Chapter 2 Leading Innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Chapter 3 An Innovative Vision and Culture . . . . . . . . . . . . . . 21
Chapter 4 Case Study: Apex Composites . . . . . . . . . . . . . . . . . . 27
4.1 Take-Aways...................................... 29
Chapter 5 Innovation Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . 31
5.1 Holistic Approach to Strategic Innovation .............. 32
5.1.1 Multidisciplinary, Beyond the Board Room........ 32
5.1.2 Innovation As a Manageable Process............. 32
5.1.3 Both Breakthrough and Incremental, Intentional
and Serendipitous .............................. 33
5.1.4 Innovation Potential versus Appetite for Risk ...... 33
5.2 Determining the Firm’s “Boundaries” ................. 37
5.2.1 Mission/Vision, Now versus Future.............. 37
v
vi Table of Contents
5.2.2 Core Competencies........................... 37
5.2.3 Core Technologies ........................... 37
5.2.4 Competitive Advantages (Existing), Strengths/
Weaknesses................................... 38
5.2.5 Geographic and Geopolitical ................... 38
5.3 Market and Competitive Analysis .................... 38
5.3.1 Porter’s Five Forces .......................... 38
5.3.2 Competing on Innovation/Features versus Price .... 40
5.3.3 Signs/Metrics for Strategy Decay in the Forces..... 40
5.3.4 Constraints on the Firm ....................... 40
5.3.5 Environmental Scan . . . . . . . . . . . . . . . . . . . . . . . . . . 41
5.4 Positioning within the Market/Industry . . . . . . . . . . . . . . . . 41
5.4.1 Product versus Process Innovation and Product
Maturity ..................................... 41
5.4.2 Consumer and Customer Insight/VOC, Unspoken
Needs ....................................... 43
5.4.3 Threats/Opportunities ........................ 44
5.4.4 Industry Foresight/Emerging Trends and
Opportunities ................................. 44
5.5 Organizational Readiness........................... 45
5.5.1 Mission/Vision .............................. 45
5.5.2 Culture .................................... 45
5.5.3 Strategic Alignment .......................... 45
5.5.4 Innovation Roles, Internal/External, Open/Closed
Innovation.................................... 46
5.5.5 Internal Processes and Disciplined
Implementation................................ 46
Chapter 6 Building the Innovative Organization . . . . . . . . . . . 49
6.1 What to Build? ................................... 49
6.2 How to Build..................................... 53
6.3 Communication .................................. 53
Downward Communication......................... 54
Upward Communication . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Outward Communication .......................... 55
Inward Communication............................ 55
6.4 Structure........................................ 55
6.5 Infrastructure .................................... 57
6.6 Style ........................................... 58
6.7 Measurement..................................... 59
6.8 People .......................................... 61
Senior Managers ................................. 61
Table of Contents vii
Innovation Manager............................... 62
Business Unit Managers ........................... 62
Quality Managers ................................ 62
Mid-Level Managers.............................. 62
Employees ...................................... 63
6.9 The Innovation Infrastructure........................ 63
Chapter 7 Case Study: Assessing an Organization’s
Strategic Innovation Status . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
7.1 The Tools........................................ 65
7.1.1 The Innovation Quadrant ...................... 65
7.1.2 The Hothouse (Creativity) Assessment
Instrument.................................... 66
7.1.3 The Innovation Diagnostic Assessment ........... 67
7.1.4 Framework for Sustainable Innovation............ 69
7.2 Innovation Diagnostic Assessment Results.............. 69
7.2.1 History of Companies A and B.................. 69
7.2.2 Company A’s Innovation Assessment Results ...... 70
7.2.3 Innovation Diagnostic Assessment............... 72
7.3 Assessment Conclusions............................ 74
7.4 Determining Your Organization’s Strategic Innovation
Status ........................................... 76
Chapter 8 Dream into Action: Execution of the Innovation
Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
8.1 Step One: Find the Opportunity...................... 79
8.2 Step Two: Connect the Idea to a Solution............... 80
8.3 Tipping Point: Selecting the Solution to Develop......... 84
8.4 Step Three: Make the Solution User-Friendly ........... 86
8.5 Step Four: Get to Market!........................... 89
8.6 The People Who Are Committed to the Innovation
Process.......................................... 91
Chapter 9 Nessis Case Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
Chapter 10 Sustainable Innovation . . . . . . . . . . . . . . . . . . . . . . . 99
10.1 Circumstance Dependent .......................... 99
10.2 Maintain the Innovation Culture .................... 102
10.3 Maintain Balance ................................ 104
10.4 Integrate with Strategy ............................ 106
10.5 Manage Failures ................................. 107
10.6 Develop an Innovation Center of Excellence ........... 108
10.7 Summary....................................... 110
viii Table of Contents
Appendix Innovation Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
Endnotes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147
About the Authors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155
List of Figures
Figure 1.1 Innovation (1), improvement (3), or both (2)? ............ 9
Figure 2.1 Leading creativity and execution. ..................... 17
Figure 3.1 Innovation: a change in cultures. ...................... 23
Figure 3.2 Creativity comes from “inner” knowledge. .............. 23
Figure 5.1 Innovation ambition matrix. .......................... 34
Figure 5.2 Porter’s five forces. ................................. 39
Figure 5.3 Utterback-Abernathy dynamic model of innovation. ....... 42
Figure 7.1 The innovation quadrant. ............................ 66
Figure 7.2 Company A innovation assessment. .................... 67
Figure 7.3 Company A strategy map. ........................... 71
Figure 7.4 Company A hothouse (creativity) assessment. ........... 72
Figure 7.5 Summary table of innovation assessment results for
Company A. ...................................... 75
Figure 8.1 The innovation process. ............................. 78
Figure 8.2 Movie demographic matrix. .......................... 89
Figure 10.1 Innovation center of excellence key functions. ........... 109
Figure A.1 Affinity diagram example. ........................... 112
Figure A.2 EFQM model for quality management. ................. 118
Figure A.3 Fishbone diagram example. .......................... 121
Figure A.4 Force field analysis diagram. ......................... 123
Figure A.5 The Kano model. .................................. 128
Figure A.6 Mind map example. ................................ 130
Figure A.7 Nine windows matrix. .............................. 131
Figure A.8 Pareto chart example. ............................... 133
ix