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Innovation, an EFQM perspective

Innovation, an EFQM perspective. Hervé legenvre legenvre@efqm.org. My background. Trained at the university of technology of Compiegne in technology transfer management Worked with product development teams - Renault Head of major account and Knowledge development – EFQM

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Innovation, an EFQM perspective

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  1. Innovation, an EFQM perspective Hervé legenvre legenvre@efqm.org

  2. My background • Trained at the university of technology of Compiegne in technology transfer management • Worked with product development teams - Renault • Head of major account and Knowledge development – EFQM • Phd on history of inventors – Paris sud economic department

  3. EFQM: Our structure EFQM, the driving force to Sustainable Excellence Over 700 EFQM Member Organisations across every sector and size – both public and private EFQM Governance BoardCEOs from 10-12 Members EFQM CEO & Management Team Major Accounts & Knowledge Development Membership Services andOperations European Awards & Recognition Schemes • Pact • Leadership events • Communities of Practice • Training • Publication • Benchmarking • Conferences • Committed to Excellence • Recognized for Excellence • EFQM Excellence Award • Assessor network

  4. EFQM vision BACK TO BASICS AS A FOUNDATION THE VISION • Active membership • Leadership group as role model • Redefining the forefront of excellence • Strong relationship with EEC • More visible and upgraded recognition • 1000 ambitious and active members • A new and visible Pact across different industries • Leadership event and cases –Connecting with Executives • The enabling network to implement Lisbon Strategy • One integrated EFQM Excellence Award and recognition scheme

  5. Some key ideas I will share with you • Uncertainty is the source of all innovation • We live in a very uncertain world • Innovation is not just luck • Leading innovation • Innovation strategy • Developing people for innovation • Innovation process • Measuring innovation

  6. Innovation Why should we care?

  7. Uncertainties ahead • Death • Energy • New competitors • Climate changes • Human enhancement • Aging population

  8. Innovation Is it about luck?

  9. One view on innovation The lucky one

  10. One view on innovation Penguin effect More hype than real innovation

  11. What is Innovation?Characteristics of Innovative Organisations (I) in % Innovation as part of the organisation strategy Systematic detecting of market and technology trends Innovationbudget Innovation as a top priority Innovation support by conscious exemplifying and encouraging Innovative organisations Less innovative organisations Not innovative organisations Source: BDU 2004

  12. What is Innovation?Characteristics of Innovative Organisations (II) in % Innovation is driven by ideas of people Innovation is a reaction to market requirements Innovation is driven by the knowledge level of employees Innovations comes from a pushing position Innovative organisations Less innovative organisations Not innovative organisations Source: BDU 2004

  13. Innovation supports a Strategy Cost-Leadership Technology leadership Customer solutions Best performance ! Customer intimate! Reach target cost faster!

  14. innovation How can we make it happen?

  15. The EFQM Framework for InnovationCharacteristics • Complementarily between Excellence and innovation • European flagship for innovation • Strengthen the innovation capability and results of the organisation while taking into account different stakeholder perspectives • Value Creation through innovation • Assessment specialized in innovation

  16. An alternative view on innovation Leadership People Processes People Results Key Performance Results Policy & Strategy Customer Results Partnerships & Resources Society Results The EFQM framework for innovation

  17. Enabling innovation As a leader, how do you encourage innovation? How do you make your people more innovative? How do you make sure that in the end Innovation delivers results? How do you plan for innovation? How do you involve suppliers, use information and ensure appropriate funding for innovation? And, of course how do you measure success?

  18. Criteria of the EFQM Framework for InnovationLeadership (Overview) Excellent leaders cultivate an innovation culture. They are personally involved in developing and enhancing a clear set of directives for successful innovation used by everyone in the organisation. They interact with stakeholders on innovation.They consider the following points: • Promoting innovation • Personal involvement • Engaging with stakeholders for innovation

  19. Criteria of the EFQM Framework for InnovationLeadership (Engaging with stakeholders) • Engaging with customers and other stakeholders as a source of innovation • „The divisions‘ technical directors are responsible for communicating their customers‘ needs to the technologists throughout 3M. It‘s a 3M axiom that ‚products belong to the division, but technologies belong to the company.‘” (3M) Source: Coyne 1997

  20. Criteria of the EFQM Framework for InnovationPolicy and Strategy Excellent Organisations continuously scan for innovation opportunities. They develop innovation policies and strategies that are integrated within the organisation overall strategy before being communicated, deployed, reviewed and updated. They consider the following points: • Scanning for innovation • Deciding on innovation priorities • Managing innovation as part of overall management system

  21. Criteria of the EFQM Framework for InnovationPolicy and Strategy (Scanning for Innovation) • Collecting innovation ideas from employees: IBM (“InnovationJam”) • Brainstorming with 140.000 people (including employees’ families and customers) in 104 countries in an internet workshop • 37.000 new ideas • Up to 100 million dollar funding is committed to develop the best ideas of the jam process www.globalinnovationjam.com

  22. Criteria of the EFQM Framework for InnovationPolicy and Strategy (Deciding on Innovation Priorities) • Defining the organisation’s appetite for innovation • BMW: Leading innovation • Dell: “"We're not the company that's going to convince you that one architecture is better than the other. But we are the company that's going to deliver the most popular ones at the best value." • Sony: Leader in many market niches • Defining the organisation’s appetite for innovation • „We identify customer problems, anticipate their unarticulated needs, and come up with innovative solutions. We are not a commodity marketer.“ (3M) • Aligning the innovation strategy with the lifecycle of existing products and services • Splitting itself into two companies to avoid catching only „blockbuster ideas“ but also enter small, emerging markets (high tech industries e.g. pharmacy, IT)

  23. Criteria of the EFQM Framework for InnovationPeople Excellent Organisations empower and educate people by creating a context that allows innovation to happen. They consider the following points: • Empowering people for innovation • Educating for innovation • Creating an innovation friendly context

  24. Criteria of the EFQM Framework for InnovationPeople (Empowering People for Innovation) • Providing entrepreneurial challenges • “Our researchers often come up with their own new product notions, which they shop around the company. In effect, our researchers need to be entrepreneurs as well as innovators. They play a direct role in bringing technology from the lab to the marketplace.” (General Electric) • Rewarding and recognising people and teams for innovative ideas • Implementation of annual innovation awards (different industries)

  25. Criteria of the EFQM Framework for InnovationPeople (Innovation Friendly Environment) • Ensuring people have the resources and space to explore innovative opportunities • „15 percent rule: „Allows all technical personnel to dedicate as much as 15 percent of their time to working on projects of their own choosing.“ (3M) • Creating a workspace that supports creativity and communication through co-location and connections • Building companywide communities of practice to share knowledge and experience (Hilti AG)

  26. Criteria of the EFQM Framework for InnovationPartnerships and Resources To innovate, excellent organisations continuously build on their network of partners. They manage finance, technology and knowledge accordingly. They consider the following points: • Partnering for innovation • Funding innovation • Managing technology and knowledge for innovation

  27. Criteria of the EFQM Framework for InnovationPartnerships and Resources (Partnering for Innovation) • Building an innovative partnership network • Scoring the world for the top scientists to develop new refrigerants. Networking with them to save time, energy and manpower. (DuPont)

  28. Criteria of the EFQM Framework for InnovationProcesses Excellent organisations develop and enhance relevant organisations structure, processes, methods and tools to successfully manage innovation projects and activities that focus on customer current and future needs. They consider the following points: • Developing appropriate structures • Managing / enhancing the innovation process • Managing innovation projects / programmes

  29. Criteria of the EFQM Framework for InnovationProcesses (Developing appropriate structures) • Using small entrepreneurial cross-functional teams to quickly scope ideas and opportunities • Setting task forces to explore the potential of discoveries. (Different industries) • Establishing separate structures or ventures to enable radical innovation • Establishing a process that actively manages spin-offs to foster innovation that doesn’t fit into the overall innovation strategy (different industries)

  30. Criteria of the EFQM Framework for InnovationProcesses (Managing the Innovation Process) • Using a structured stage-gate logic to steer and manage the innovation process • Stage gate process with a mixture of examination / critique of senior scientists / research managers and benchmark data from other projects. (Pfizer) • Eliminating innovation bottlenecks and optimising time to market • Integrating testing groups into innovation teams at the very early stages of development to reduce sources of errors (e.g. software development)

  31. Criteria of the EFQM Framework for InnovationProcesses (Managing Innovation Projects – Innovating Together with Lead Users; 3M) The lead user process • Phase 1: Laying the foundation • Identifying markets • Identifying key stakeholders within the company • Phase 2: Determining the trends • Talking to experts to find out where the trend leads to • Phase 3: Identifying lead users • Identify users at the leading edge of the target and related markets • Gathering information to identify especially promising innovations / ideas that may lead to breakthrough products • Begin to shape preliminary product ideas / assess the business potential • Phase 4: Developing the breakthroughs • Move preliminary concepts toward completion • Hosting workshops with marketing / technical people and the lead user team • Develop recommendations and present them to senior managers • At least one member of the lead user team should stay involved in further steps of development Source: Von Hippel, Thomke, Sonnack 1999

  32. Criteria of the EFQM Framework for InnovationResults Excellent organisations comprehensively measure and achieve outstanding results. They consider the following points: • Customer Results • People Results • Society Results • Key Performance Results

  33. The EFQM Framework for InnovationHow the frameworks can be used • An idea box and a set of guidelines to fuel the organisation with improvement opportunities • A way to demonstrate that it is possible to have an integrated management framework (bringing things under one roof) • A framework for assessment as part of an improvement project on innovation management… • A regular assessment framework integrated or not with the EFQM excellence assessment

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