unleashing innovation
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AIMA-Bosch Limited 38th NATIONAL COMPETITION FORYOUNG MANAGERS
THEME: “Unleashing innovation across the value chain – A mantra for growth”
Team : 1) Mr. Apoorve Khandelwal
2) Ms. Mansi Dubey
3) Mr. Ullas Batra
Organisation: Bharat Petroleum Corporation Ltd.
Address: PLOT NO. A-5 AND A-6, SECTOR -1, UDYOG MARG, Sector 1, Noida-201301
Tel No : 9910440684 (Apoorve), 9650130278 (Mansi), 9760154033 (Ullas)
Fax No: 0120-2354172
E-mail : apoorvekhandelw@bharatpetroleum.in, mansidubey@bharatpetroleum.in
ullasbatra@bharatpetroleum.in.
Number of words: 2500 approximately
Signature of a Member
Unleashing innovation across the value chain – A mantra for growth
2 | P a g e
Abstract“The enterprise that does not innovate, ages and declines. And in a period of rapid change such
as the present, the decline will be fast." — Peter Drucker.
India is seeing a transformation from ‘Jugaad technology’ to ‘Frugal Innovation’. Globally
commended Innovations like Tata Nano, Tata Swach, Narayan Hrudayalaya etc have
strengthened brand ‘Innovative India’. But 3rd largest GDP (by PPP) of the world, India, still
ranks 62nd in Global Innovation Index. There is a long-long way to go!
The study is based on exploratory research comprising of Interviews with 15 Business leaders,
survey aimed at 103 employees across 42 organizations and case study of 20 innovative
companies. It was found that transformational leaders influence the innovation process directly
as well as indirectly by driving an appropriate culture, which facilitates the process of
innovation, & thus play the most crucial role in driving innovation across organization.
Study suggests that companies must innovate
with a vision (innovision). Essential ingredients
for unleashing the innovation were identified as
Leadership, Enablers, Actors & Process. Thus we
propose he LEAP framework to enable
organizations take a leap to their innovision.
Assessment Methodologies have been developed
to help organizations (1) evaluate the Innovation
Feasibility of the company & identify the weakest
links that need intervention (2) and evaluate Innovation Performance to enable continuous
monitoring of value creation by innovation across organization. Towards the end an India level
LEAP analysis has also been done. Inspired leadership & collaborative culture at organizational
as well as nation level have emerged out as the need of such turbulent and challenging times.
Unleashing innovation across the value chain – A mantra for growth
2 | P a g e
Abstract“The enterprise that does not innovate, ages and declines. And in a period of rapid change such
as the present, the decline will be fast." — Peter Drucker.
India is seeing a transformation from ‘Jugaad technology’ to ‘Frugal Innovation’. Globally
commended Innovations like Tata Nano, Tata Swach, Narayan Hrudayalaya etc have
strengthened brand ‘Innovative India’. But 3rd largest GDP (by PPP) of the world, India, still
ranks 62nd in Global Innovation Index. There is a long-long way to go!
The study is based on exploratory research comprising of Interviews with 15 Business leaders,
survey aimed at 103 employees across 42 organizations and case study of 20 innovative
companies. It was found that transformational leaders influence the innovation process directly
as well as indirectly by driving an appropriate culture, which facilitates the process of
innovation, & thus play the most crucial role in driving innovation across organization.
Study suggests that companies must innovate
with a vision (innovision). Essential ingredients
for unleashing the innovation were identified as
Leadership, Enablers, Actors & Process. Thus we
propose he LEAP framework to enable
organizations take a leap to their innovision.
Assessment Methodologies have been developed
to help organizations (1) evaluate the Innovation
Feasibility of the company & identify the weakest
links that need intervention (2) and evaluate Innovation Performance to enable continuous
monitoring of value creation by innovation across organization. Towards the end an India level
LEAP analysis has also been done. Inspired leadership & collaborative culture at organizational
as well as nation level have emerged out as the need of such turbulent and challenging times.
Unleashing innovation across the value chain – A mantra for growth
2 | P a g e
Abstract“The enterprise that does not innovate, ages and declines. And in a period of rapid change such
as the present, the decline will be fast." — Peter Drucker.
India is seeing a transformation from ‘Jugaad technology’ to ‘Frugal Innovation’. Globally
commended Innovations like Tata Nano, Tata Swach, Narayan Hrudayalaya etc have
strengthened brand ‘Innovative India’. But 3rd largest GDP (by PPP) of the world, India, still
ranks 62nd in Global Innovation Index. There is a long-long way to go!
The study is based on exploratory research comprising of Interviews with 15 Business leaders,
survey aimed at 103 employees across 42 organizations and case study of 20 innovative
companies. It was found that transformational leaders influence the innovation process directly
as well as indirectly by driving an appropriate culture, which facilitates the process of
innovation, & thus play the most crucial role in driving innovation across organization.
Study suggests that companies must innovate
with a vision (innovision). Essential ingredients
for unleashing the innovation were identified as
Leadership, Enablers, Actors & Process. Thus we
propose he LEAP framework to enable
organizations take a leap to their innovision.
Assessment Methodologies have been developed
to help organizations (1) evaluate the Innovation
Feasibility of the company & identify the weakest
links that need intervention (2) and evaluate Innovation Performance to enable continuous
monitoring of value creation by innovation across organization. Towards the end an India level
LEAP analysis has also been done. Inspired leadership & collaborative culture at organizational
as well as nation level have emerged out as the need of such turbulent and challenging times.
Unleashing innovation across the value chain – A mantra for growth
3 | P a g e
1. Introduction
India’s Prime Minister Sh. Manmohan Singh declared the years 2010-20 as India’s
Innovation Decade. He followed this up by appointing a high profile National
Innovation Council to evangelize the cause of innovation and spread an innovation
culture across the country. But can we expect India to emerge as the next Silicon
Valley? Are we going to see the likes of a Google or an Apple emerging in India in the
next ten years? (Ivey Business Journal, 2011)
1.1 Innovation: “Moving Beyond R&D”
There is a widely held view that Innovation is primarily driven by high-end technology
and R&D. However, high-end technology and R&D are only two of several sources of
Innovation. The reach and impact of Innovation is seen across the value chain also
includes other sources of Innovation such as various processes and services,
marketing, branding, trade, entrepreneurship, market research, customer surveys, etc.
Therefore unlike popular belief, innovation isn’t all about idea generation alone, for a
new product or a service offering. In a competitive and fast changing business world
of today, innovation needs to move far ahead of just the product perspective and
span across dimensions such as business model, selling techniques, partnerships,
process flows, technology, HR practices.
1.2 Why Innovation in India ?After liberalization, Indian economy has been growing with a healthy growth rate.
While opportunities for growth still exist, some product categories are becoming
saturated, or at least the most lucrative customers have already been tapped. This is,
Unleashing innovation across the value chain – A mantra for growth
4 | P a g e
for example, true in mobile services where penetration has already reached 70
percent. This means that to sustain growth and profitability, companies will have to
look at new ways to excite customers. Another option is to explore ‘fortune at the
bottom of the pyramid’, to quote C. K. Prahalad’s evocative idea, But getting to that
treasure will require an ability to understand emerging customer needs well, designing
of products and services to meet these needs, and find processes and business models
to deliver these products and services at an affordable cost. India’s humongous social
challenges call for path breaking innovations. More over current turbulence in business
ecosystem would require even more innovative business practices.
Management thinker CK Prahalad’s vision for India at 75 has 30 Indian companies in
the Fortune 100 list, with the country accounting for 10% of world trade and having
the largest pool of trained manpower. The Global Innovation Index Report 2011
released by the Confederation of Indian Industry (CII) in association with INSEAD
Business School, France has ranked India 62nd on the Global Innovation Index (GII).
India in fact has been on a decline for the last 3 years, losing 39 places from 23rd
position in 2007-08. India granted only 6,168 patents during the year 2009; Japan gave
a maximum number of 1,93,449 patents in 2009 followed by the US (1,35,193), China
(1,28,489). In 2010-11, of the total 7,486 patents granted in India, Indians could claim
only 1,272. On the other hand, foreigners walked away with 6,214 patents.
The future prosperity of India in the new knowledge economy will increasingly
depend on its ability to generate new ideas, processes and solutions, and through
the process of innovation convert knowledge into social good and economic wealth.
Unleashing innovation across the value chain – A mantra for growth
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In a globally competitive world, India’s challenge is to unleash its innovation potential
to increase capacity, productivity, efficiency and inclusive growth. If innovation
capacity is to become endemic to the eco-system of India’s growth and development it
has to permeate all sectors of the economy from businesses and government, to
people at all levels and universities.
India today has a number of strengths: a strong R&D base; academic talent; it is a
leading innovation player in certain key economic sectors such as biotechnology,
pharmaceuticals, automotive components, Information Technology, software, and IT
enabled services (ITES); and a stable and supportive macroeconomic climate. While a
handful of companies have successfully embraced innovation across one or more of
these dimensions, it is becoming an absolute must for every Indian enterprise to
unlearn its traditional view to innovation and adapt innovation in more radical ways
than ever before. To keep pace with changes in the external business environment,
where every business faces challenges such as more demanding customers, intense
competition from regional as well as global players, complex supply chains, ever
increasing shareholder expectations it becomes important to create an innovation
framework that can help today’s Indian enterprise unlock its full potential.
2. State of Innovation in India: A Glimpse
Figure below demonstrates the types in which Innovation takes place in a typical firm.
The largest proportion (more than half ) of large firms lies in the systematic
incremental quadrant, as can be seen from figure, which may be an indication that
large firms in India are still in the mindset of incremental Innovation as compared with
breakthrough Innovation( National Knowledge Commission).
Unleashing innovation across the value chain – A mantra for growth
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Exhibit 1,Source: National Knowledge Commission
In the last two decades, corporate India has clearly displayed a high level of execution
confidence – the ability to take on challenging execution tasks and make them happen.
As India embraces innovation, companies now face the challenge of building creative
confidence.
3. Innovision: Innovation with a vision
Invariably all successful innovative companies like Apple, Google, 3M, P&G etc. consider
innovation as an integral part of their strategy and strive to create breakthrough/disruptive
innovations. In our research we found out that only 44% of respondents agreed that leaders
across levels in their organization have positioned innovation as an integral part of business
strategy. A 57% of respondents find innovating efforts in their company being only incremental
in nature whereas 37% of respondents see their organizations spend most of its innovation
efforts on reacting to change (exhibit 2). Most of the innovation efforts seem to be directed
towards ‘Sales & Marketing’ & ‘Operations’; mostly because these two have direct & swift
impact on bottom line (exhibit 3). Although bottom of the economic pyramid is an emerging
5% 27.5%
15.5% 52%
Breakthrough
Incremental
SporadicSporadic
Systemic
Unleashing innovation across the value chain – A mantra for growth
7 | P a g e
market and contains the fortune of future growth, but astonishingly has received the least
attention in terms of innovation (exhibit 2)
Innovation has to have a vision, a vision to grow; grow to become an innovative company
carrying out more and more strategic innovations with due focus given to breakthrough ideas
(exhibit 3). But, ‘to innovate’ is not a formula that can be copied from successful innovative
companies and implemented. A company, based on its scale, innovation capabilities;
Incremental
57%
Both9%
Breakthrough
34%
What is the nature of innovationin your organization?
30%24%
47%40%
7%
0%10%20%30%40%50%
Where do you seemaximum innovation
happening in yourorganization?
Exhibit 3, Survey Results
Exhibit 2, Survey Results
Unleashing innovation across the value chain – A mantra for growth
7 | P a g e
market and contains the fortune of future growth, but astonishingly has received the least
attention in terms of innovation (exhibit 2)
Innovation has to have a vision, a vision to grow; grow to become an innovative company
carrying out more and more strategic innovations with due focus given to breakthrough ideas
(exhibit 3). But, ‘to innovate’ is not a formula that can be copied from successful innovative
companies and implemented. A company, based on its scale, innovation capabilities;
Incremental
57%
What is the nature of innovationin your organization?
Leadingthe
Change25%
Both38%
Reacting toChange
37%
My organization spends most ofits innovation efforts on
7%
Where do you seemaximum innovation
happening in yourorganization?
Exhibit 3, Survey Results
Exhibit 2, Survey Results
Unleashing innovation across the value chain – A mantra for growth
7 | P a g e
market and contains the fortune of future growth, but astonishingly has received the least
attention in terms of innovation (exhibit 2)
Innovation has to have a vision, a vision to grow; grow to become an innovative company
carrying out more and more strategic innovations with due focus given to breakthrough ideas
(exhibit 3). But, ‘to innovate’ is not a formula that can be copied from successful innovative
companies and implemented. A company, based on its scale, innovation capabilities;
My organization spends most ofits innovation efforts on
Exhibit 3, Survey Results
Exhibit 2, Survey Results
Unleashing innovation across the value chain – A mantra for growth
8 | P a g e
long/short term strategy vision etc., must c halk out its innovation plan/portfolio that it’ll
targets to achieve. The innovision should be analyzed on two primary criteria:
I. Scope of Innovation:
a. What and how many strategic areas/fields, the organization should target to innovate
in?
b. How much stress/attention the company will give to non-strategic, day to day
operational improvements.
II. Intensity of innovation:
a. How much focus on breakthrough ideas?
b. How much effort to be put on incremental innovations?
The organizations must gradually strive to shift more and more focus on quadrent-1:
Breakthrough-Strategic innovation. The difference in the current & future innovation portfolio
represents the strategic transformation targeted in the innovision.
Exhibit 4, The Innovision Model-Positioning the Future Innovation
Unleashing innovation across the value chain – A mantra for growth
8 | P a g e
long/short term strategy vision etc., must c halk out its innovation plan/portfolio that it’ll
targets to achieve. The innovision should be analyzed on two primary criteria:
I. Scope of Innovation:
a. What and how many strategic areas/fields, the organization should target to innovate
in?
b. How much stress/attention the company will give to non-strategic, day to day
operational improvements.
II. Intensity of innovation:
a. How much focus on breakthrough ideas?
b. How much effort to be put on incremental innovations?
The organizations must gradually strive to shift more and more focus on quadrent-1:
Breakthrough-Strategic innovation. The difference in the current & future innovation portfolio
represents the strategic transformation targeted in the innovision.
Exhibit 4, The Innovision Model-Positioning the Future Innovation
Unleashing innovation across the value chain – A mantra for growth
8 | P a g e
long/short term strategy vision etc., must c halk out its innovation plan/portfolio that it’ll
targets to achieve. The innovision should be analyzed on two primary criteria:
I. Scope of Innovation:
a. What and how many strategic areas/fields, the organization should target to innovate
in?
b. How much stress/attention the company will give to non-strategic, day to day
operational improvements.
II. Intensity of innovation:
a. How much focus on breakthrough ideas?
b. How much effort to be put on incremental innovations?
The organizations must gradually strive to shift more and more focus on quadrent-1:
Breakthrough-Strategic innovation. The difference in the current & future innovation portfolio
represents the strategic transformation targeted in the innovision.
Exhibit 4, The Innovision Model-Positioning the Future Innovation
Unleashing innovation across the value chain – A mantra for growth
9 | P a g e
4. The LEAP Framework-Towards Innovative India
On the basis of research, it was found that there are four essential pillars, namely Leadership,
Enablers, Actors & Process, that drive innovation in a successful innovative organization. An
organization must strengthen these pillars for taking a ‘LEAP’ to unleashing the innovation
through out the value chain. The “LEAP” spear-head helps in identifying & implementing the
approaches which have so far set the tone of successful innovations in various innovative
companies.
The LEAP to unleash innovation
Exhibit 5: The LEAP Spearhead
Unleashing innovation across the value chain – A mantra for growth
9 | P a g e
4. The LEAP Framework-Towards Innovative India
On the basis of research, it was found that there are four essential pillars, namely Leadership,
Enablers, Actors & Process, that drive innovation in a successful innovative organization. An
organization must strengthen these pillars for taking a ‘LEAP’ to unleashing the innovation
through out the value chain. The “LEAP” spear-head helps in identifying & implementing the
approaches which have so far set the tone of successful innovations in various innovative
companies.
The LEAP to unleash innovation
Exhibit 5: The LEAP Spearhead
Unleashing innovation across the value chain – A mantra for growth
9 | P a g e
4. The LEAP Framework-Towards Innovative India
On the basis of research, it was found that there are four essential pillars, namely Leadership,
Enablers, Actors & Process, that drive innovation in a successful innovative organization. An
organization must strengthen these pillars for taking a ‘LEAP’ to unleashing the innovation
through out the value chain. The “LEAP” spear-head helps in identifying & implementing the
approaches which have so far set the tone of successful innovations in various innovative
companies.
The LEAP to unleash innovation
Exhibit 5: The LEAP Spearhead
Unleashing innovation across the value chain – A mantra for growth
10 | P a g e
Exhibit 6: LEAP in Context of Innovision; the extent/type of LEAP varies depending on theINNOVISION
4.1 Leadership
Leadership is the catalyst and source of organizational creativity and innovation. The
importance about the role of leadership was made more compellingly in a recent work
by Gary Hamel. In a widely-read 2009 Harvard Business Review article, Hamel stresses
the need to innovate the role of management itself. In DDI’s Global Leadership
Forecast 2011, fostering creativity and innovation was rated as the third most critical
skill for the near future by over 12,500 leaders from around the world, and showed the
biggest surge between its criticality in the past three years, and for the next three. Yet,
Unleashing innovation across the value chain – A mantra for growth
10 | P a g e
Exhibit 6: LEAP in Context of Innovision; the extent/type of LEAP varies depending on theINNOVISION
4.1 Leadership
Leadership is the catalyst and source of organizational creativity and innovation. The
importance about the role of leadership was made more compellingly in a recent work
by Gary Hamel. In a widely-read 2009 Harvard Business Review article, Hamel stresses
the need to innovate the role of management itself. In DDI’s Global Leadership
Forecast 2011, fostering creativity and innovation was rated as the third most critical
skill for the near future by over 12,500 leaders from around the world, and showed the
biggest surge between its criticality in the past three years, and for the next three. Yet,
Unleashing innovation across the value chain – A mantra for growth
10 | P a g e
Exhibit 6: LEAP in Context of Innovision; the extent/type of LEAP varies depending on theINNOVISION
4.1 Leadership
Leadership is the catalyst and source of organizational creativity and innovation. The
importance about the role of leadership was made more compellingly in a recent work
by Gary Hamel. In a widely-read 2009 Harvard Business Review article, Hamel stresses
the need to innovate the role of management itself. In DDI’s Global Leadership
Forecast 2011, fostering creativity and innovation was rated as the third most critical
skill for the near future by over 12,500 leaders from around the world, and showed the
biggest surge between its criticality in the past three years, and for the next three. Yet,
Unleashing innovation across the value chain – A mantra for growth
11 | P a g e
50 percent of the leaders in the sample considered themselves ineffective at doing it,
more than any of the other critical skills. In the survey conducted by us to understand
role and support of leadership it was found that although visionary leaders are highly
important for fostering organizational innovation but on an average the respondents
did not strongly feel that leaders have not set the vision and area of priority as far as
organizational innovation is concerned.
In many instances, the type of leadership required to foster innovation is
transformational because culture change needs enormous energy and commitment to
achieve outcomes. Transformational leadership uses the six factors proposed by
Podsakoff, MacKenzie, Moorman, and Fetter (1990) shown in the exhibit below:
What is the level of importance of visionary leaders in driving organizational innovation?
Exhibit 7, Survey Results
Unleashing innovation across the value chain – A mantra for growth
12 | P a g e
Edgar Schein whose work on Organization Culture is widely acknowledged, has shown
that leaders are the ones who develop the culture of the organizations. While top
leaders are the ones who influence the culture but it is the leaders at all levels who
ultimately drive the climate for innovation which was also rated high by the
respondents of our survey (Exhibit 9).
Thus the top leaders set the culture for the entire organization which has a major role
in influencing the macro aspect. The leaders across rung derive their inspiration from
this culture while they ultimately influence climate for innovation. They influence at
ProvideIndividualSupport
Provide RoleModels
What is the level of importance of leaders across levels in driving organizational innovation?
Exhibit 9, Survey Results
Unleashing innovation across the value chain – A mantra for growth
12 | P a g e
Edgar Schein whose work on Organization Culture is widely acknowledged, has shown
that leaders are the ones who develop the culture of the organizations. While top
leaders are the ones who influence the culture but it is the leaders at all levels who
ultimately drive the climate for innovation which was also rated high by the
respondents of our survey (Exhibit 9).
Thus the top leaders set the culture for the entire organization which has a major role
in influencing the macro aspect. The leaders across rung derive their inspiration from
this culture while they ultimately influence climate for innovation. They influence at
TransformationalLeadership
ArticlulatingVision
Foster GoalAcceptance
Set HighPerformanceExpectation
IntellectualStimulation
ProvideIndividualSupport
Provide RoleModels
What is the level of importance of leaders across levels in driving organizational innovation?
Exhibit 9, Survey Results
Unleashing innovation across the value chain – A mantra for growth
12 | P a g e
Edgar Schein whose work on Organization Culture is widely acknowledged, has shown
that leaders are the ones who develop the culture of the organizations. While top
leaders are the ones who influence the culture but it is the leaders at all levels who
ultimately drive the climate for innovation which was also rated high by the
respondents of our survey (Exhibit 9).
Thus the top leaders set the culture for the entire organization which has a major role
in influencing the macro aspect. The leaders across rung derive their inspiration from
this culture while they ultimately influence climate for innovation. They influence at
What is the level of importance of leaders across levels in driving organizational innovation?
Exhibit 9, Survey Results
Unleashing innovation across the value chain – A mantra for growth
13 | P a g e
the grass-root level where the actors of innovation are involved in taking the process
of innovation forward.
Following cases strongly support that leadership has supreme role in driving the
culture of innovation.
Leadership
Attribute
Case in
Point
Influence
StrategicLeadership
GE &IBM
When IBM had to change culture in order to renew theorganization, they brought in a new CEO, Lou Gerstner whore-created IBM with new business model. Similarly, it tookJack Welch, a new CEO, to change the culture of GeneralElectric to help it become highly innovative and successfuland he made GE the leader by driving innovative strategyand innovative management practices.
VisionaryLeadership
Apple Steve Jobs is considered to be one of the supreme visionariesworld ever had. He stimulated intellect at Apple through his“Think Different” campaign and always got unique anddifferent things envisioned and done.
Innovation Culture: Influences behaviour at macro level
Innovation Climate: Influences behaviour at grass-root level
Exhibit 10, Leadership as a determinant of Culture
Unleashing innovation across the value chain – A mantra for growth
13 | P a g e
the grass-root level where the actors of innovation are involved in taking the process
of innovation forward.
Following cases strongly support that leadership has supreme role in driving the
culture of innovation.
Leadership
Attribute
Case in
Point
Influence
StrategicLeadership
GE &IBM
When IBM had to change culture in order to renew theorganization, they brought in a new CEO, Lou Gerstner whore-created IBM with new business model. Similarly, it tookJack Welch, a new CEO, to change the culture of GeneralElectric to help it become highly innovative and successfuland he made GE the leader by driving innovative strategyand innovative management practices.
VisionaryLeadership
Apple Steve Jobs is considered to be one of the supreme visionariesworld ever had. He stimulated intellect at Apple through his“Think Different” campaign and always got unique anddifferent things envisioned and done.
Apex Leadership: Sets the Culture
Innovation Culture: Influences behaviour at macro level
Leaders across Levels: Sets the Climate
Innovation Climate: Influences behaviour at grass-root level
Exhibit 10, Leadership as a determinant of Culture
Unleashing innovation across the value chain – A mantra for growth
13 | P a g e
the grass-root level where the actors of innovation are involved in taking the process
of innovation forward.
Following cases strongly support that leadership has supreme role in driving the
culture of innovation.
Leadership
Attribute
Case in
Point
Influence
StrategicLeadership
GE &IBM
When IBM had to change culture in order to renew theorganization, they brought in a new CEO, Lou Gerstner whore-created IBM with new business model. Similarly, it tookJack Welch, a new CEO, to change the culture of GeneralElectric to help it become highly innovative and successfuland he made GE the leader by driving innovative strategyand innovative management practices.
VisionaryLeadership
Apple Steve Jobs is considered to be one of the supreme visionariesworld ever had. He stimulated intellect at Apple through his“Think Different” campaign and always got unique anddifferent things envisioned and done.
Innovation Culture: Influences behaviour at macro level
Leaders across Levels: Sets the Climate
Innovation Climate: Influences behaviour at grass-root level
Exhibit 10, Leadership as a determinant of Culture
Unleashing innovation across the value chain – A mantra for growth
14 | P a g e
ManagementInnovation
Infosys Infosys was the first company to successfully providecomputing services from India to clients around the world,often at much lower cost. Narayan Murthy, one of thefounders of Infosys himself drove several of the big humanresource initiatives of the last decade, including the DiversityOffice and the Global Internship Programme. Other seniorexecutives aspire to be equally progressive. Infosys also runsperformance engagement workshops to create a platform oforganizational change agents who will light the next round offires.
4.2 Enablers
Most researchers and theorists agree that the organizations can be designed to have a
structure, a culture, and processes that are conducive to innovation (Roger and Roger
1976; Kanter 1998; Amabile 1988; Jonash and Sommerlatte 1999; Hamel 2000). As
innovation has become a more pressing concern for companies in almost every sector
of the economy, the literature has increasingly explored the factors that enable or
hinder an organization’s capacity to innovate. Our study shows that all the enablers
can largely be classified under the following heads:
Resources: Resources needed to sustain an innovative system include human, physical,
technological, and informational resources. In regard to human resources, functions
Reso
urce
s
These include variousrequirements in termsof fund/time etc. tosupport innovationprocess.
Exhibit 11, Enablers of Innovation
Unleashing innovation across the value chain – A mantra for growth
14 | P a g e
ManagementInnovation
Infosys Infosys was the first company to successfully providecomputing services from India to clients around the world,often at much lower cost. Narayan Murthy, one of thefounders of Infosys himself drove several of the big humanresource initiatives of the last decade, including the DiversityOffice and the Global Internship Programme. Other seniorexecutives aspire to be equally progressive. Infosys also runsperformance engagement workshops to create a platform oforganizational change agents who will light the next round offires.
4.2 Enablers
Most researchers and theorists agree that the organizations can be designed to have a
structure, a culture, and processes that are conducive to innovation (Roger and Roger
1976; Kanter 1998; Amabile 1988; Jonash and Sommerlatte 1999; Hamel 2000). As
innovation has become a more pressing concern for companies in almost every sector
of the economy, the literature has increasingly explored the factors that enable or
hinder an organization’s capacity to innovate. Our study shows that all the enablers
can largely be classified under the following heads:
Resources: Resources needed to sustain an innovative system include human, physical,
technological, and informational resources. In regard to human resources, functions
Enab
ling
Cult
ure These include
various aspects
of culture which
fosters innovation
These include variousrequirements in termsof fund/time etc. tosupport innovationprocess.
Exhibit 11, Enablers of Innovation
Unleashing innovation across the value chain – A mantra for growth
14 | P a g e
ManagementInnovation
Infosys Infosys was the first company to successfully providecomputing services from India to clients around the world,often at much lower cost. Narayan Murthy, one of thefounders of Infosys himself drove several of the big humanresource initiatives of the last decade, including the DiversityOffice and the Global Internship Programme. Other seniorexecutives aspire to be equally progressive. Infosys also runsperformance engagement workshops to create a platform oforganizational change agents who will light the next round offires.
4.2 Enablers
Most researchers and theorists agree that the organizations can be designed to have a
structure, a culture, and processes that are conducive to innovation (Roger and Roger
1976; Kanter 1998; Amabile 1988; Jonash and Sommerlatte 1999; Hamel 2000). As
innovation has become a more pressing concern for companies in almost every sector
of the economy, the literature has increasingly explored the factors that enable or
hinder an organization’s capacity to innovate. Our study shows that all the enablers
can largely be classified under the following heads:
Resources: Resources needed to sustain an innovative system include human, physical,
technological, and informational resources. In regard to human resources, functions
These include variousrequirements in termsof fund/time etc. tosupport innovationprocess.
Exhibit 11, Enablers of Innovation
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required to administer the innovation must be carried out by an adequate number of
qualified, committed staff (Bauman et al., 1991; Scheirer, 1993; Streefland, 1995).
O’Loughlin et al. (1998). Further, technology and data resources are critical to generate
information that informs needs assessment, and it is important to have evaluation
data that provides effectiveness feedback to the system (Schwartz et al., 1993; Lee,
Bonson, Yarmirr, O’Dea, & Mathew, 1995; Goodman, 2000; Neville et al., 2000).
Funding in terms of R&D expenditure and in other means is another important
requirement to support system of innovation. It is however pertinent to note that
“resources” as enablers only facilitate the innovation system but there is no
correlation as such in terms of more resources leading to higher innovation. A 2011
study of Booz & Co shows (Exhibit ) that top 10 innovative companies are not the top
10 R&D spenders.
This fact also became evident from our survey where we found that enablers like
funding, time, technological systems, innovation officer etc. were not rated to be of
high significance in driving innovation.
Exhibit 12, Survey Results
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Culture: Often the culture of an organization determines the desire for innovation.
Employee behavior is shaped by organizational culture and therefore influences an
individual’s actions. Consequently it is possible that cultural values and norms are a
powerful means of stimulating creativity and innovation (Glasberg & Ouerghemi,
2011). Organizational culture becomes a powerful determinant of the innovative
potential and an organizational ability to sustain an innovative-supportive culture
(Khairuzzaman & Abdmajid, 2007). Booz & Company’s annual study shows that
spending more on R&D won’t drive results. The most crucial factors are strategic
alignment and a culture that supports innovation. Only about half of all companies say
their corporate culture robustly supports their innovation strategy. This disconnect, is
both a problem and an opportunity. Their study shows that companies with
unsupportive cultures and poor strategic alignment significantly underperform their
competitors (Jaruzelski, Holman & Loehr, 2011).
Our study further showed that important ingredients of an enabling culture for
innovation are collaboration, openness, encouragement, learning culture and freedom
to experiment.
Exhibit 13, Roadblocks to innovation
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Risk Taking Propensity
Learning Culture
Rewards & Recognition
Collaboration across teams and functions
Open Culture
INNOVATING CULTURE
OPE
NES
S
COLL
ABO
RATI
ON
ENCO
URA
GEM
ENT
LEA
RNIN
G C
ULT
URE
FREE
DO
M T
O
EXPE
RIM
ENT
Exhibit 14, Survey Results
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Following case studies portray the critical role of culture as facilitator for innovation.
Cultural Trait Case in Point Influence
Learning Culture BPCL BPCL has been a fore-runner in the ‘Innovative Marketing’initiatives in Oil Marketing. Learning with times is what BPCLhas learnt over the years. The process of Informationacquisition, distribution and interpretation have been driventhrough various Projects with defined goals leading tovarious innovations viz. products, processes, services etc. areshown in the exhibit .
Encouragement &Openness
IDEO IDEO is considered to be most innovative product design firmand its culture is a breeding zone of Designers. Newcomers atIDEO are taught to practice the IDEO-specific everydayinteractions of designers, which are most visible inbrainstorming and meetings. The newcomers are encouragedto seek help, share knowledge, and give help. This culture ofinnovation is enhanced by IDEO’s reward systems, which arelargely based on informal reputation among fellow designersand peer reviews (Hargadon and Sutton, 1997).
Collaboration 3M The 3M Corp., one of most innovative companies, makestechnical collaboration across divisional boundaries a normalway of operating, having become such a standard practicethat sharing talent and cross-silo collaboration does notentail the battles common in other companies.
Exhibit 16, BPCL’s Innovation Journey
Exhibit 15, Pillars of Innovative Culture
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4.3 Actors
Human ‘Actors’ make the innovation happen! The most important ‘actor’ is obviously
the talent, the possible innovators who are actively involved in the process of
innovation. In our survey also, ‘talent’ emerged out as one of the most important factors
for driving innovation (exhibit 16) and this is where Indian organizations are facing the
biggest roadblock/crunch too.
Some people are born innovators, but more importantly, rest can become innovators
too! The pioneering research (Christensen et. al, 2009) by Hal Gregersen at INSEAD,
Jeffrey Dyer at BYU, and Clayton Christensen at Harvard shows that there are 5 skills,
What is the level of importance of Talent in drivinginnovation across value chain in an organization?
Exhibit 16, Survey Results
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4.3 Actors
Human ‘Actors’ make the innovation happen! The most important ‘actor’ is obviously
the talent, the possible innovators who are actively involved in the process of
innovation. In our survey also, ‘talent’ emerged out as one of the most important factors
for driving innovation (exhibit 16) and this is where Indian organizations are facing the
biggest roadblock/crunch too.
Some people are born innovators, but more importantly, rest can become innovators
too! The pioneering research (Christensen et. al, 2009) by Hal Gregersen at INSEAD,
Jeffrey Dyer at BYU, and Clayton Christensen at Harvard shows that there are 5 skills,
Low2%
Medium46%High
52%
What is the level of importance of Talent in drivinginnovation across value chain in an organization?
Exhibit 16, Survey Results
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4.3 Actors
Human ‘Actors’ make the innovation happen! The most important ‘actor’ is obviously
the talent, the possible innovators who are actively involved in the process of
innovation. In our survey also, ‘talent’ emerged out as one of the most important factors
for driving innovation (exhibit 16) and this is where Indian organizations are facing the
biggest roadblock/crunch too.
Some people are born innovators, but more importantly, rest can become innovators
too! The pioneering research (Christensen et. al, 2009) by Hal Gregersen at INSEAD,
Jeffrey Dyer at BYU, and Clayton Christensen at Harvard shows that there are 5 skills,
Exhibit 16, Survey Results
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namely Questioning, Observing, Experimenting, Networking & Associating, which
differentiate an innovator, and those can be practiced. “Innovative entrepreneurship is
not a genetic predisposition, it is an active endeavour” (Christensen et. al, 2009).
Another Equally important ‘actor’ is the ‘active supporters’ to the innovators. They
may be the peers who chip in ideas and motivate or the line-managers trying to
actively pitch for internal sponsorships for the innovator. Actors, whether innovator or
active supporter, can be either part of the organization (internal) or be external. More
over an ‘actor’ may be an individual or a group (exhibit 17).
Case Study: The “Actors” of Innovation
Actor Actor type Innovation Role Played
OrkutBüyükökten
Individual,internal, activeinvolvement
Orkut Orkut was launched on January 22, 2004by Google. Orkut Büyükökten, a Turkishsoftware engineer, developed it as anindependent project while working atGoogle. It was a great success forGoogle. Orkut’s current Alexa Rank is336 (as of July, 2012) & is one of themost popular social networking site inIndia and Brazil currently
Egyptians Collective,internal, activeinvolvement
Revolution 2.0,the EgyptianFacebookrevolution
For the first time social media wascollectively used as a very active tool tobring out national revolution. Twominutes after the Facebook page “WeAre All Khaled Said” was started, on June8, 2010, 300 people had joined it. Three
Individuals
Collectives
Comprise
Exhibit 17, About Innovation Actors
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namely Questioning, Observing, Experimenting, Networking & Associating, which
differentiate an innovator, and those can be practiced. “Innovative entrepreneurship is
not a genetic predisposition, it is an active endeavour” (Christensen et. al, 2009).
Another Equally important ‘actor’ is the ‘active supporters’ to the innovators. They
may be the peers who chip in ideas and motivate or the line-managers trying to
actively pitch for internal sponsorships for the innovator. Actors, whether innovator or
active supporter, can be either part of the organization (internal) or be external. More
over an ‘actor’ may be an individual or a group (exhibit 17).
Case Study: The “Actors” of Innovation
Actor Actor type Innovation Role Played
OrkutBüyükökten
Individual,internal, activeinvolvement
Orkut Orkut was launched on January 22, 2004by Google. Orkut Büyükökten, a Turkishsoftware engineer, developed it as anindependent project while working atGoogle. It was a great success forGoogle. Orkut’s current Alexa Rank is336 (as of July, 2012) & is one of themost popular social networking site inIndia and Brazil currently
Egyptians Collective,internal, activeinvolvement
Revolution 2.0,the EgyptianFacebookrevolution
For the first time social media wascollectively used as a very active tool tobring out national revolution. Twominutes after the Facebook page “WeAre All Khaled Said” was started, on June8, 2010, 300 people had joined it. Three
Internal
External
Presence
ActiveInvolvement
Active Support
Contribution
Exhibit 17, About Innovation Actors
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namely Questioning, Observing, Experimenting, Networking & Associating, which
differentiate an innovator, and those can be practiced. “Innovative entrepreneurship is
not a genetic predisposition, it is an active endeavour” (Christensen et. al, 2009).
Another Equally important ‘actor’ is the ‘active supporters’ to the innovators. They
may be the peers who chip in ideas and motivate or the line-managers trying to
actively pitch for internal sponsorships for the innovator. Actors, whether innovator or
active supporter, can be either part of the organization (internal) or be external. More
over an ‘actor’ may be an individual or a group (exhibit 17).
Case Study: The “Actors” of Innovation
Actor Actor type Innovation Role Played
OrkutBüyükökten
Individual,internal, activeinvolvement
Orkut Orkut was launched on January 22, 2004by Google. Orkut Büyükökten, a Turkishsoftware engineer, developed it as anindependent project while working atGoogle. It was a great success forGoogle. Orkut’s current Alexa Rank is336 (as of July, 2012) & is one of themost popular social networking site inIndia and Brazil currently
Egyptians Collective,internal, activeinvolvement
Revolution 2.0,the EgyptianFacebookrevolution
For the first time social media wascollectively used as a very active tool tobring out national revolution. Twominutes after the Facebook page “WeAre All Khaled Said” was started, on June8, 2010, 300 people had joined it. Three
ActiveInvolvement
Active Support
Contribution
Exhibit 17, About Innovation Actors
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months later, that number had grown tomore than 250,000. What bubbled uponline inevitably spilled onto the streets.“We Are All Khaled Said” helped ignitean uprising that led to the resignation ofPresident Hosni Mubarak and thedissolution of the ruling NationalDemocratic Party
Users/Testers atGoogle Labs
Collective,external, Activesupport
Google Labs At GoogleLabs.com, Google used tomake the beta versions of new projectsavailable for tests by users who used togive feedbacks for improvementsdirectly to the engineers who developedthem.
Apple’s supportto iStore Appdevelopers
External, Activesupport
Appdevelopmentfor iOS
(openinnovation)
In beginning of 2008, Apple released aniPhone Software Development Kit (SDK),making it possible for third-partydevelopers to create applications, & aniPhone Developer Program to enable thedistribution of third party developedapplications via a new App Store. Appstore was launched by Apple in mid2008. For developers, the App Storecreated a link to all iPhone and iPodtouch users. One year onwards from itslaunch, there were 100,000 developersin the iPhone Developer Program. InNovember 2009, the amount ofapplications available in the App Storehad passed 100,000 with about 10,000downloads per day.
4.4 Process
On the basis of the interviews conducted and the secondary research, the process of
innovation can be divided in four phases:
1. Ideation & Development: Ideas may be novel (new to the world) or adopted
once. Idea adoption may happen from other organizations (new to the
company) or from other business unit within the organization. Potential ideas
are further chiselled & developed into ‘opportunity’.
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2. Evaluation: Proposed ‘opportunities’ across the organizations are evaluated &
selectively funnelled:
a. to optimize risk Vs potential impact
b. to check coherence with organization’s innovision
3. Implement: First two phases must be followed by speedy piloting and then full
throttle commercialization
4. Maximize: To realize the full potential of an innovation efforts must go on for:
a. Continual improvement.
b. Replication/echoing of the innovation across the organization wherever
applicable
Feedback: All the phases must interact with each other by a corrective
feedback network. This is very crucial for preventive risk management (exhibit
17). The swifter the feedbacks are, earlier the corrections happen saving a lot
of time, efforts & cost.
Exhibit 16a, Process of Innovation
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2. Evaluation: Proposed ‘opportunities’ across the organizations are evaluated &
selectively funnelled:
a. to optimize risk Vs potential impact
b. to check coherence with organization’s innovision
3. Implement: First two phases must be followed by speedy piloting and then full
throttle commercialization
4. Maximize: To realize the full potential of an innovation efforts must go on for:
a. Continual improvement.
b. Replication/echoing of the innovation across the organization wherever
applicable
Feedback: All the phases must interact with each other by a corrective
feedback network. This is very crucial for preventive risk management (exhibit
17). The swifter the feedbacks are, earlier the corrections happen saving a lot
of time, efforts & cost.
Exhibit 16a, Process of Innovation
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2. Evaluation: Proposed ‘opportunities’ across the organizations are evaluated &
selectively funnelled:
a. to optimize risk Vs potential impact
b. to check coherence with organization’s innovision
3. Implement: First two phases must be followed by speedy piloting and then full
throttle commercialization
4. Maximize: To realize the full potential of an innovation efforts must go on for:
a. Continual improvement.
b. Replication/echoing of the innovation across the organization wherever
applicable
Feedback: All the phases must interact with each other by a corrective
feedback network. This is very crucial for preventive risk management (exhibit
17). The swifter the feedbacks are, earlier the corrections happen saving a lot
of time, efforts & cost.
Exhibit 16a, Process of Innovation
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As the process of innovation is sequential in nature, a bottle neck or weak link at any
step will slow down the overall innovation output (Morten et.al, 2007). So this is
extremely important for an organization to analyze the organizational strengths and
weaknesses with respect to each phase of innovation in order to ensure targeted
efforts to strengthen the innovation process.
Case Study: The “Process” of Innovation
Company Initiative Impact
Ideation &
Development
Uniliver Open Innovation:
Unilever established a so-called openinnovation unit to work with outsidepartners in 2009
The share of external ideasthat are adopted by thecompany’s business units hasincreased from 25 percent to60 percent
Exhibit 17, Managing Innovation Failure
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As the process of innovation is sequential in nature, a bottle neck or weak link at any
step will slow down the overall innovation output (Morten et.al, 2007). So this is
extremely important for an organization to analyze the organizational strengths and
weaknesses with respect to each phase of innovation in order to ensure targeted
efforts to strengthen the innovation process.
Case Study: The “Process” of Innovation
Company Initiative Impact
Ideation &
Development
Uniliver Open Innovation:
Unilever established a so-called openinnovation unit to work with outsidepartners in 2009
The share of external ideasthat are adopted by thecompany’s business units hasincreased from 25 percent to60 percent
Exhibit 17, Managing Innovation Failure
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As the process of innovation is sequential in nature, a bottle neck or weak link at any
step will slow down the overall innovation output (Morten et.al, 2007). So this is
extremely important for an organization to analyze the organizational strengths and
weaknesses with respect to each phase of innovation in order to ensure targeted
efforts to strengthen the innovation process.
Case Study: The “Process” of Innovation
Company Initiative Impact
Ideation &
Development
Uniliver Open Innovation:
Unilever established a so-called openinnovation unit to work with outsidepartners in 2009
The share of external ideasthat are adopted by thecompany’s business units hasincreased from 25 percent to60 percent
Exhibit 17, Managing Innovation Failure
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Sony ‘Not invented here’ syndrome:
(a) Sony was late in making flat-screen TVs, because its engineersbelieved that, even though customersloved this device, the availabletechnologies were not up to Sony’sstandards.
(b)Rivals were introducing next-generation products such as the iPod.Sony didn’t adapt external ideas. Itsdigital music players didn’t play MP3s.
(a)Once a market leader,Sony, hasn’t made a profit in4 consecutive years.
Sony lost the leadershipgained by Walkman’s successto iPod
Evaluation BPCL Annual Ideas Competition evaluateshundreds ideas throughout theorganization at a singular stage.Screened & selected ideas are takenup for implementation
At BPCL, we have completeda decade of IDEAS forum;over 1000 screened ideashave been implementedgenerating value over 100Crore!!!
Implementation P&G Because of P&G’s rigorous market-test policies, managers launchedPampers diapers in France five yearsafter the product was first introducedin Germany.
Colgate-Palmolive, noticingP&G’s early success inGermany, launched a me-tooline of diapers in France,gaining dominant marketshare there, two full yearsbefore P&G introducedPampers in that Country.
Maximize HUL The pilot Shakti Amma project,started in 2001 in Nalgonda, AndhraPradesh, proved to be successful BOPmarketing innovation. Following thepilot test, HUL aggressively replicatedthe innovation.
Currently HUL has a ShaktiAmma and Shaktimaannetwork in 1,00,000 Indianvillages reaching 3 millionhouseholds in 15 statesproviding HUL an unbeatablereach to BOP market.
Value Network of Innovation: To unleash the innovation throughout value chain
The agenda is to ‘Unleash’ innovation not to just to ‘improve’ innovation. What’s
needed is not just an ‘action/reaction’ but a ‘Chain reaction’ of ‘Innovation Echoes’ &
‘Idea Adoptions’. The sequential innovation process must take a form of innovation
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network (exhibit 6b). Ideas must flow in crossing the organizational boundaries & be
adopted; successful innovations in one part of organization must be replicated and
adopted in others where ever applicable. Continual efforts for improvement will
occasionally strike novel ideas that would be carried forward.
Exhibit 16b, Unleashing Innovation Model
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network (exhibit 6b). Ideas must flow in crossing the organizational boundaries & be
adopted; successful innovations in one part of organization must be replicated and
adopted in others where ever applicable. Continual efforts for improvement will
occasionally strike novel ideas that would be carried forward.
Exhibit 16b, Unleashing Innovation Model
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network (exhibit 6b). Ideas must flow in crossing the organizational boundaries & be
adopted; successful innovations in one part of organization must be replicated and
adopted in others where ever applicable. Continual efforts for improvement will
occasionally strike novel ideas that would be carried forward.
Exhibit 16b, Unleashing Innovation Model
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5. Innovation Feasibility AssessmentAs we have seen above that process of Innovation is influenced by Leaders, Enablers
and actors who determine its success at each level. It is therefore important to assess
whether these influencers have been able to influence as desired or there are some
gaps somewhere. The assessment table given below helps in arriving at the
assessment of each influencer at various level of innovation evolution.
Process InfluencersL-LeadershipE-EnablersA-Actors
Assessment Parameters Assessment(Agree-3PartiallyAgree-2Disagree-1)
AverageScore(in therange of1-3)
IDEATION L Leaders in my organization generally trigger IDEAgeneration.Leaders in my organization have themselves displayedcreative genius.Leaders in my organization encourage systemic ideageneration process.
E The culture in my organization makes it easy forpeople to put forward novel ideasMy organization provides sufficient learning whichhelps me in thinking differently.I am given sufficient information about the futurestrategy/goals of the company which helps inidentifying areas of opportunity for value creation.
A Most of the people in my organization have ability tothink creatively/out of the box and generally come outwith innovative ideas.My organization connects to external people for newideasBy and large people in my organization directly orindirectly collaborate and contribute in Ideageneration.
Evaluation L Leaders across levels contribute extensively in IdeaEvaluation process and provide inputs on theevaluation parameters.Leaders ensure support of concerned people/mentorsto the Idea Generators to help them in evaluatingideas.Leaders extend all support required for IdeaEvaluation whenever approached.
E My organization provides ample resources toinvestigate creative ideas.There is adequate time/flexibility granted to evaluateIdeas.
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There is ample support of other employees inevaluating new Ideas.
A The Idea generators and those connected displaystrong competence in timely evaluation of new ideas.The people evaluating the ideas are in a position toascertain the possible pros and cons of ideasuccess/failure.Those who evaluate ideas reach out to all those whocould be influenced by implementation of ideas fortheir inputs.
IMPLEMENTATION
L In my leaders take onus of the implementation ofevaluated ideas.Leaders actively support in removing the roadblocks inthe path of idea implementation.Leaders in my organization clearly define priorities interms of idea to be implemented.
E My organization has a strong culture of executionwhich enables new idea implementation.The execution of new idea in organization is fast dueto ample support provided.My organization rewards and recognizes implementedideas.
A The people involved in the implementation of ideasensure its timely implementation.The people involved in the implementation of idea areable to garner support to successful ideaimplementation.The Idea generators in my organization are able toensure its implementation as well.
SUSTENANCE
L Leaders in my organization encourage replication ofideas across organization.Leaders in my organization encourage improvising theideas further.Leaders in my organization themselves play an activerole in sustenance if Ideas by appropriateinterventions.
E My organization has a strong culture of replication ofimplemented ideas.My organization has strong culture of improvement ofideas for further value addition.My organization provides all resources required forimplementation of the Idea.
A The new ideas are echoed by all others whom the ideacan benefit.People in my organization generally look atopportunities of further improving already existingidea.In my organization people at all levels workcollectively for sustenance of an implemented idea.
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The average score obtained above can be plotted as shown below (the figure below is only an
indicative one) to understand where are the gaps which need to be filled and which are the
weakest link in the evaluation value chain to be worked upon.
6. I-Card : The Innovation Score-Card
It is important to assess whether the innovation has been able to deliver the expected value
creation or not. The expected value creation could be in the area of financial performance,
customer (internal/external) satisfaction improvement, operational impact and overall
organization performance. During the stage of evaluation it is important to assess the
expected value in terms of the indicators mentioned above. Innovations may be linked to all or
some of the broad parameters. Therefore it is important to set an expected metrics in place on
the lines of card given below:
3
00.5
11.5
22.5
3Leadership
EnablersActors
LEAP Assessment Framework
Ideation
Evaluation
Implementation
Maximize
Exhibit 18, LEAP Assessment Framework
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The I-card would only state whether on the indicators and parameters outlined, the
innovation effectiveness is on/above/below expectation on the basis of which
performance snapshot could be obtained. Therefore the expected value should be set
in advance and final value realized should be compared to decipher the value creation.
These I-cards may be drawn at team/department/organization level.
7. INDIA: Taking LEAP of Innovation
Organizational activities are always directly or directly inter-linked with National
business environment, infra, government policies etc. and thus obviously national
limitations adversely affect the companies’ growth (exhibit 20). Although some of the
issues essentially need governmental intervention, but there are many areas which
may be dealt well in a win-win way by collaborative efforts of Indian companies,
academia & government.
Financial Performance Indicators
-Revenue generation through new products
-Cost optimization
-Market share improvement
-Return on R & D
Organization Performance Indicators
-Brand Perception Improvement
-Employer Brand Improvement
-Shareholder perception improvement
-Recognitions & Rewards
-Impact on Competition
Exhibit 19, Innovation Scorecard format
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The I-card would only state whether on the indicators and parameters outlined, the
innovation effectiveness is on/above/below expectation on the basis of which
performance snapshot could be obtained. Therefore the expected value should be set
in advance and final value realized should be compared to decipher the value creation.
These I-cards may be drawn at team/department/organization level.
7. INDIA: Taking LEAP of Innovation
Organizational activities are always directly or directly inter-linked with National
business environment, infra, government policies etc. and thus obviously national
limitations adversely affect the companies’ growth (exhibit 20). Although some of the
issues essentially need governmental intervention, but there are many areas which
may be dealt well in a win-win way by collaborative efforts of Indian companies,
academia & government.
Financial Performance Indicators
-Revenue generation through new products
-Cost optimization
-Market share improvement
-Return on R & D
Customer Satisfaction Indicators
-Customer Satisfaction Enhancement
-Employee Engagement
-Customer Complaint Reduction
-Improvement in market share
Organization Performance Indicators
-Brand Perception Improvement
-Employer Brand Improvement
-Shareholder perception improvement
-Recognitions & Rewards
-Impact on Competition
Operational Benefits
-Increase in Efficiency
-Increase in Productivity
-Improvement in average life of plant/machine
-Reduction in lead time
Value Creation
Exhibit 19, Innovation Scorecard format
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The I-card would only state whether on the indicators and parameters outlined, the
innovation effectiveness is on/above/below expectation on the basis of which
performance snapshot could be obtained. Therefore the expected value should be set
in advance and final value realized should be compared to decipher the value creation.
These I-cards may be drawn at team/department/organization level.
7. INDIA: Taking LEAP of Innovation
Organizational activities are always directly or directly inter-linked with National
business environment, infra, government policies etc. and thus obviously national
limitations adversely affect the companies’ growth (exhibit 20). Although some of the
issues essentially need governmental intervention, but there are many areas which
may be dealt well in a win-win way by collaborative efforts of Indian companies,
academia & government.
Customer Satisfaction Indicators
-Customer Satisfaction Enhancement
-Employee Engagement
-Customer Complaint Reduction
-Improvement in market share
Operational Benefits
-Increase in Efficiency
-Increase in Productivity
-Improvement in average life of plant/machine
-Reduction in lead time
Exhibit 19, Innovation Scorecard format
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Exhibit 20, Source: Nov, 2011 Bulletin; National Innovation Survey by Govt. of India
As a nation is also an organization, but that of a giant size, LEAP frame work also helps
Indian organizations and government in identifying approaches and develop macro
strategies to collaboratively ‘Unleash the innovation through out the value chain
through out the Nation’
7.1 Leadership
There is a need of visionary leaders across levels in India that can set conducive climate
for innovation and inspire the people, across levels, to innovate. Recently GOI has
started some optimistic initiatives by gathering some great Indian innovation leaders
under one roof. Win-win initiatives such as ‘Spark the Rise’, lead by Mahindra &
Mahindra & ‘Srishti’, lead by Dr. Anil Gupta (Professor, IIM A) are setting up a climate
& platform to energize & support Indian entrepreneurs across levels. But these
leadership efforts are still insignificant when it comes to unleashing innovation in a
nation where 12.8 million youngsters enter the workforce per annum.
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Leadership Efforts Impact
Governmentof India
The President of India set thestage by declaring 2010-20 asthe ‘Decade of Innovation’.National Innovation Council(NInC) has been set-up underthe Chairmanship of Mr. SamPitroda, Adviser to the PM onPIII, roping in 16 innovators likeDr. Shetty (NarayanaHridayalaya), Ms. KiranMazumdar (Biocon) etc, todiscuss, analyze and helpimplement strategies forinclusive innovation in India andprepare a Roadmap forInnovation 2010-2020.
State/Sectoral Innovation councilsare being set-up. Pilot stage ofIndustry/University InnovationCluster program has been launched.India Inclusive Innovation Fund isbeing set-up. Impact is still to beseen
Mahindra &Mahindra
Spark the Rise: a digital platformfor individuals, groups andorganisations to submitentrepreneurial project plans.Visitors to the site can viewprojects to offer advice or getinvolved by volunteering ordonating money andequipment.
Started in Aug 2011, Spark the Risehas become a community of>250,000 people working togetherto drive positive change in India.Thousands of people from all acrossIndia submitted >6,000 projects, ofwhich 1,346 have been showcasedon www.sparktherise.com, and 48projects have received a grant fromMahindra. Mahindra’s brandstrengthened; a win-win situation.
(SRISTI),founded byDr.AnilGupta
www.techpedia.in & HoneybeeNetwork: Connecting innovatorsfrom all over the country withindustries through a portal
The network has collected 100,000inventions and the idea is spreadingrapidly around the globe. Productshave been created, the revenue isshared between theinventors, foundations and thenetwork.
GujaratTechnicalUniversity(GTU)
GTU has linked its 502 affiliatedcolleges with 166 industryclusters in collaboration withTechpedia.in, at SRISTI todevelop innovation zonesknown as ‘Navsarjan Sankuls’
These innovation zones encourageand facilitate close interaction andcooperation between the industry,students and academia.
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7.2 Enablers
Resources: India's GERD equals slightly more than 1 percent of GDP & the government
has committed to increasing this figure to at least 2 percent of GDP. But Indian
business R&D are lagging behind & still represents only 30 percent of GERD. Indian
companies need to direct more resources to let innovation spur.
Culture: Of the 183 countries in the Doing Business 2012 report, India ranks 166th in
starting a business, 181st in dealing with construction permits, 147th in taxes, and
182nd in enforcing contracts which speaks of a disabling climate. In our research two
major cultural issues ‘lack of creativity in educational system’ & ‘lack of collaboration
amongst firms & universities’ emerged out as the biggest roadblocks to innovation in
India (exhibit 21).
Government must take corrective measures to set the business climate right while the
companies, academia & government need to put aggressive efforts to strengthen and
proliferate collaborations to (1) improve employability & creativity of fresh employees
(2) increase crosspollination of ideas/innovations & harness synergies of collaborative
efforts.
Exhibit 21, Survey Results
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7.2 Enablers
Resources: India's GERD equals slightly more than 1 percent of GDP & the government
has committed to increasing this figure to at least 2 percent of GDP. But Indian
business R&D are lagging behind & still represents only 30 percent of GERD. Indian
companies need to direct more resources to let innovation spur.
Culture: Of the 183 countries in the Doing Business 2012 report, India ranks 166th in
starting a business, 181st in dealing with construction permits, 147th in taxes, and
182nd in enforcing contracts which speaks of a disabling climate. In our research two
major cultural issues ‘lack of creativity in educational system’ & ‘lack of collaboration
amongst firms & universities’ emerged out as the biggest roadblocks to innovation in
India (exhibit 21).
Government must take corrective measures to set the business climate right while the
companies, academia & government need to put aggressive efforts to strengthen and
proliferate collaborations to (1) improve employability & creativity of fresh employees
(2) increase crosspollination of ideas/innovations & harness synergies of collaborative
efforts.
Exhibit 21, Survey Results
Unleashing innovation across the value chain – A mantra for growth
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7.2 Enablers
Resources: India's GERD equals slightly more than 1 percent of GDP & the government
has committed to increasing this figure to at least 2 percent of GDP. But Indian
business R&D are lagging behind & still represents only 30 percent of GERD. Indian
companies need to direct more resources to let innovation spur.
Culture: Of the 183 countries in the Doing Business 2012 report, India ranks 166th in
starting a business, 181st in dealing with construction permits, 147th in taxes, and
182nd in enforcing contracts which speaks of a disabling climate. In our research two
major cultural issues ‘lack of creativity in educational system’ & ‘lack of collaboration
amongst firms & universities’ emerged out as the biggest roadblocks to innovation in
India (exhibit 21).
Government must take corrective measures to set the business climate right while the
companies, academia & government need to put aggressive efforts to strengthen and
proliferate collaborations to (1) improve employability & creativity of fresh employees
(2) increase crosspollination of ideas/innovations & harness synergies of collaborative
efforts.
Exhibit 21, Survey Results
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7.3 ActorsIndia needs entrepreneurs! The demographic advantages of having a large population
under the age of 30 open up exciting opportunities for India. However, only 11.4
percent of the population aged 25-64 has a tertiary degree and only 25% of the
engineers graduating annually are actually employable, says a study by McKinsey.
Against 12.8 million per annum new entrants to the workforce, the existing training
capacity is just 3.1 million per annum. And whatever training infra structure is there is
not designed to empower creativity (exhibit 21). Ironically, Indian companies are
facing a skilled workforce crunch when the Nation is facing unemployment! Indian
firms and Government must work collaboratively to unleash the innovation potential
of Indian youth. The success of Infosys’ pioneering College Connect Program & Wipro’s
Mission10X initiative has confirmed how macro issues like talent can be solved in a
win-win way. Through National Skill Development Council & University/Industry
Innovation Clusters, Govt. of India, has also initiated targeted collaborative efforts to
unleash the innovation potential of Indian youth. Industry-Academia collaborative
efforts are the need of the time
7.4 Process
Number of patents granted, is an important indicator of ideation capability of a nation
& India ranks very low on that. India granted only 6,168 patents during the year 2009
whereas Japan gave 1,93,449 patents, US & China gave 1,35,193, & 1,28,489
respectively.
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New ideas need to be supported by funds to allow them getting developed and at least
see a pilot test. Govt. of India, through Dept. of Scientific & Industrial Research (TePP
initiative), Dept. of Biotechnology (BIPP initiative) etc. is trying to provide financial
support to entrepreneurial ideas. Indian companies like Mahindra (Spark the Rise), GE
(Ecomagination Challenge) etc. have come forward to create a platform for
entrepreneurial idea evaluation and funding. A 75 percent (above global average) of
Respondents in the GE Innovation Survey (2012) agreed that private investors are
supportive of companies that need funding. Because of poor Industry-Industry &
industry-academia collaboration culture in india, potential innovations either die in
silos, as they are never taken up for full throttle commercialization, or never replicated
and adopted well across different organizations to exploit their full potential.
According to Dr. Anil Gupta (Founder, Srishti) more than 1 Lakh engineering research thesisannually developed by passing out engineering graduates, get stored as waste paper in theirrespective colleges and never referred to again. Through www.techpedia.in he is trying tocollect and digitify all this research at one place and making it usable & available to industry.
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8. Recommendations
Leadership: India needs transformational leaders across levels to set thespark of Innovation, be it in industry, academia or governance. It’s high timethat they invest time in facilitating innovation process actively andcommunicating the areas where innovative solutions could be devised.
Enablers: India needs to focus on enablers that accelerate the process ofInnovation. There should be an increasing emphasis on the culturalelements like freedom to experiment, openness and encouragement inIndian organization. The tradition leader-follower hierarchical organizationwill need to have a re-look within. A highly collaborative culture atorganizational as well as nation levels is the need of such turbulent andchallenging times
Actors The Indian organizations tend to confine actors of Innovation asIndividual Innovators within the organizations. However there needs to bean intervention to create collectives actively pursuing innovation and toconnect with customers, foster diversity where the roots of innovationopportunity lie.
Process: Although Idea generation is an important aspect of innovation andIndia needs to inculcate innovation mindset in its talent pool, but unleashingthe innovation requires focus on aspects like effective implementation andmaximizing the innovation impact in the long run, which would require highlevel of collaboration and support from all levels.
Innovision: India needs to become a leader rather than being just a fastfollower. India needs to position its Innovation vision in the minds of itspopulation. The same holds true for any Indian Company. There is hugescope for innovation at “The bottom of the pyramid” and it holds key tobright future of India.
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Annexure A
Interview
In order to understand the Indian context of Innovation and to gain a broad
perspective on areas of intervention we interviewed fifteen senior leaders who threw
light on various aspects related to innovation in Indian Context. This helped us in
providing a broad structure to our study from where we took off. We asked following
questions to the senior leaders.
What is the need of Innovation in the Indian organizations?
Where do you see the weakest link in innovation value chain in Indian
organizations- whether it is ideation, evaluation, implementation,
replication, continual improvement?
What measures do you think will help in overcoming the same?
What are the traits of leaders who successfully drive innovation in their
organizations?
What is an ideal culture for driving innovation in an organization?
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Annexure B
SurveyLink to Survey:(https://docs.google.com/spreadsheet/viewform?formkey=dFV6a0VvRU9PUG1mR0NZX3dsWWNUbnc6MQ#gid=0)
Drivers of Innovation in Organization-An exploratory study Please do not restrict the definition of innovation toR&D/Product Development and look at the broader scope of innovation across valuechain in the organization
Age Group
20-30 years
30-40 years
40-50 years
50-60 years
Work Experience
0-2 years
2-5 years
5-10 years
10-20 years
20-30 years
30 + years
Sector in which your organization operates
Manufacturing
IT & ITES
Banking & Finance
Retail
FMCG
Health Services
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Energy
Infrastructure
Education
Other:
I see maximum innovation in my organization in the area of:(you may select more thanone option)
R & D
Human Resources
Sales & Marketing
Operations
Finance
Approach towards innovation in my organization is:
Systemic
Sporadic
The nature of innovation in my organization is:
Breakthrough
Incremental
Both
Following best describes philosophy behind innovation in my organization:
for sustaining profitability
addressing social issues
to enable high standard of living for masses
to meet customers' expectations
for sustainable future through optimum utilization of resources
for beating competition in marketplace
Other:
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The major roadblocks to innovation in India are:(you may select more than one option)
Lack of collaboration between firms in industry
Insufficient market pressure to innovate
Skill shortages
Lack of creativity in educational system
Lack of government incentive
Lack of collaboration between firms and universities
Other:
My organization fosters a culture that expects everyone, at every level, to contributeto the innovation process.
1 2 3 4 5
Strongly disagree Strongly agree
My organization effectively breaks down barriers between different functional areas sothat ideas can be exchanged
1 2 3 4 5
Strongly Disagree Strongly Agree
My organisation’s ability in making innovation happen is supreme?
1 2 3 4 5
Strongly Disagree Strongly Agree
Innovation is widely celebrated and rewarded in my organization.
1 2 3 4 5
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Strongly Disagree Strongly Agree
My organization extends all support possible to champions of innovation.
1 2 3 4 5
Strongly Disagree Strongly Agree
Leaders across levels in my organization have positioned innovation as an an integralpart of business strategy.
1 2 3 4 5
Strongly Disagree Strongly Agree
Leaders in my organization have prioritized areas which require innovative solutionsand have allocated resources to ensure implementation.
1 2 3 4 5
Strongly Disagree Strongly Agree
Leaders in my organization facilitate effective lines of communication acrossorganization.
1 2 3 4 5
Strongly Disagree Strongly Agree
The innovation happening in any part of my organization is replicated in the entireorganization.
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1 2 3 4 5
Strongly Disagree Strongly Agree
My organization spends most of its innovation efforts on:
Responding/Reacting to Change
Leading the change
Both
Is there a dedicated team/ innovation officer to drive innovation in your
organization.
Is there innovation fund in your organization to finance the innovators.
What is the level of importance of the following parameters in driving innovationacross value chain in an organization?
Low Medium High
A dedicated team/innovationofficer to drive innovation in
the company
Financial Support/InnovationFund
Time to explore ideas
Intrapreneurial mindset
Talent
Collaboration acrossteams/functions
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Low Medium High
Open Culture
Rewards and Recognition forInnovation
Measurement ofInnovation/Innovation Index
Knowledge ManagementSystems
Support from leaders at alllevels
DevelopmentProgrammes/Training for
potential innovators
Alignment of employees tooverall strategy of the company
Visionary Leaders
Risk taking propensity in theculture/Freedom to experiment
Learning culture in organization
Market pressure to innovate
Flexibility to manage your work
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References
1. Morten T. Hansen and Julian Birkinshaw, “The Innovation Value Chain”,
Harvard Business Review – June, 2007
2. Dr. Ashok Kolaskar, Shriya Anand and Amlanjyoti Goswami, “Innovation in
India”, National Knowledge Commission, June 2007
3. Jaruzelski, Holman & Loehr, 2011, The Global Innovation 1000, “Why Culture Is
Key”, Booz & Co
4. Bates & Khasawneh, 2005, Organizational learning culture, learning transfer
climate and perceived innovation in Jordanian organizations, Hashemite
University
5. Grant 2008, The Future of Management: Where is Gary Hamel Leading Us?,
Long Range Planning 41 469-482
6. Sussane G. Scott and Reginald Bruce,“Determinants of innovative behavior: A
path model of individual innovation In the workplace”, Academy of
Management Journal, 1994, Vol.3, 580-607
7. Dombrowski, Kim, Desouza, Braganza, Papagari, Baloh and Jha, “ Elements of
Innovative Culture”, Knowledge & Process Management, Wiley InterScience,
2007, Vol.14
8. Innovate India: National Innovation Mission, CII and India Development
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9. Julian Birkinshaw, “Infosys: Computing the Power of People” Business Strategy
Review, London Business School, Winter 2008
10. Sarros, Santora & Cooper, “Building a Climate for Innovation Through
Transformational Leadership and Organizational Culture”, Journal of Leadership
& Organizational Studies, Novemeber 2008, Vol.15
11. Krishnan, “Silicon valley to india: Build an innovation ecosystem and good
things will come”, Ivey Business Journal, September-October-2011
12. “Making Change Work”, IBM Global Business Services, 2008
13. IBM Global CEO Study 2008.” IBM Corporation. May 2008
Unleashing innovation across the value chain – A mantra for growth
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14. Anthony, Johnson, Sinfield and Altman, “ Developing Disruptive Ideas”, Harvard
Business Review, 2008.
15. Innovations & Patents, India Brand Equity Foundation, November 2011
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Innovation”, Leadership Imperative, DDI, 2011
17. GE Global Innovation Barometer Report 2012
18. Adams, Bessant and Phelps, “ Innovation management measurement: A
review”, International Journal of Management Reviews, Blackwell Publishing
Ltd, March 2006
19. FICCI-MSME Summit 2012, Theme: Innovation & Clusters, Report
20. Spitzer, “Rethinking the Measurement of innovation”, IBM, Research, 2007
21. Lafley & Charan, “P&G’s Innovation Culture”, Booz & Co, August 2008
22. “Intentional Innovation: How Getting More Systematic about Innovation Could
Improve Philanthropy and Increase Social Impact”, W.K Kellogg Foundation,
August 2008.
23. Christensen, Dyer and Gregersen, “The Innovator’s DNA”, Harvard Business
Review, December 2009
24. “Creating a Roadmap for a ‘Decade of Innovation”, Strategy Paper, Office of
Adviser to the Prime Minister, Public Information Infrastructure & Innovations
March 2011
25. List of Case Studies on Innovation, IBS Case Development Centre
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