Turning an organisation into a vibrant innovation hot spot is a challenging task. Many ingredients are necessary for an efficient and effective innovation management system. This section of the knowledge base sheds Iight into the question how Orange Hills designs and implements modern innovation management systems based on Business Design that enable companies to unleash their innovative potential in nine steps:
- Analyzing of today's situation
- Designing the picture of the future
- Defining objectives with KPIs
- Establishing structures from R&D to go-to-market
- Defining Innovation processes
- Designing innovation tools and setting up infrastructure
- Enabling people
- Installing a guidance and tracking system
- Rolling out
As this knowledge base may give you a head start in completing 5. - 7., the other steps need some clarification. We will highlight the following:
- Picture of the future: It may sound strange but we rarely find companies with a concise and actionable vision for themselves. Well, don't get us wrong: Almost all companies we know have some sort of mission and/or vision statements, strategy slides etc. But in most of the companies we know, the mission/vision/strategy doesn't provide a unambiguous picture what the company is supposed to look like in X years, which may help us decide what to do in the world of innovation. What is often missing is the "street compatibility". Hence, we help building a concise and actionable picture of the company's future before we kick off Business Design projects.
- Objectives: We usually define KPIs for innovation output and the progress of the transformation. Both are equally important. The measurement of innovation output encompasses KPIs around new revenue generated, number of new customers, performance in new marketing and sales channels but also learning progress in terms of tested hypotheses in Business Design projects. Transformation KPIs include number of trained employees, number of projects, penetration of Business Design thinking in business lines etc.
- Innovation process(es): Yes, you can find substantial information on the Business Design process here in this knowledge base. Nevertheless, this is not enough. Business Design is usually embedded into other activities that need to be considered in order to successfully bring innovation to the market. We already mentioned elsewhere that there are activities necessary in order to scope and define Business Design projects before you kick off your first projects. Moreover, after the completion of Business Design projects, company-specific engineering and go-to-market processes are required to get closer to your first new revenue. It is important that you design them.
- Rolling out: Even in the roll out process, we live up our guiding principles: We usually start with applying Business Design in real life through pilot projects. We want to truly understand the DNA of the organisation, its strengths and weaknesses in regard to innovation management. Based on these experiences and crude facts, we adapt Business Design to the very specific needs of an organisation. From there, we constantly apply Business Design in trainings and project "waves" and review the performance regularly.
All these steps don't happen in isolation but in an highly integrative process including the management as well as employees of an organisation in an orchestrated manner. It depends on the leadership culture of the company where and and how employees are involved in designing, for instance, the future picture of the company (2.), objectives and KPIs (3.) or the organisational structure form R&D to go-to-market (4.).
The following figure shows a simplified flow of activities through the main stages "Research & Development" (R&D), "Business Design" and "Go-to-market":
The following illustration depicts a typical timeline for an implementation project. The key feature here is that we basically start with pilot projects (rather than an extended analysis), learn under real conditions what works and what doesn't in a corporate culture and adapt the innovation management system according the these valuable learnings. This approach allows us to build systems that fit well to organizational strengths and deliver results.
Here is a more comprehensive overview of the key activities:
Typical Business Design projects with a "not too complex" setup for two purposes:
|Picture of the future||Series of workshop with management and selected employees||Picture of the future||6 weeks|
|System design||Definition of the organisational setup for innovation activities incl. processes, tools and methods||"Play book"||6 weeks|
|Restructuring||Ongoing restructuring process to implement the system design||5 months + X|
|Sprints||Consecutive "waves" of Business Design sprints in the typical manner||10 weeks per wave|
|Review||Definition of implications for system design etc. based mon real-life learnings from projects,||2 weeks each|