Innovation Group Definition, Slides of Innovation

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LPK 2020

Innovation Group

Definition Guide and Workshop Important questions to answer when (re)defining your Innovation Group.

Contents INTRODUCTION

Definition Canvas Overview Current State / Ideal Future State How to Make It, How to Use It

Canvas Worksheets

Innovation Ambition & The Harsh Reality Why Do Innovation Groups Fail? Innovation Group Definition & Purpose^ INNOVATION GROUP DEFINITION CANVAS^ GROUP VALUE PROPOSITION STATEMENT^ Overview Value Proposition Statement Canvas How to Make It, How to Use It

Innovation

Ambition

We Live in an Era of

Increasing Organization Commitment of Fortune 500s have a formalized innovation program. Accenture

Rising Consumer Expectations of consumers say it is important for brands to be innovative. Lab

Growing Executive Hunger of CEOs see innovation as a key priority for growth. PwC

Add Innovation lab

Innovation’s failure rate has never been higher.

70–80% of corporate innovation projects

fail to result in an in-market outcome. McKinsey

85% of new-product launches fail to

meet revenue expectations. Harvard Business School

Pre-Market Failure In-Market Failure

90% of innovation labs “fail to deliver

on their promise” and exist for less than 4 years. Capgemini

Innovation Group Failure

The Harsh

Reality?

How do you structure

Innovation to succeed

and become a repeatable

growth engine?

Dedicated Innovation Team Innovation Lab Corporate Venture Studio Intrapreneur Program Internal Consulting Service Centers of Excellence Community of Practice Internal Accelerators Innovation Training University Partnerships Innovation Outpost Startup Partnerships Venture Funds Accelerator Partnerships

There are so many different ways to structure innovation efforts.

How do you decide which is best for you and your organization?

How do you clarify your group’s purpose and value proposition to your organization?

GROUP DEFINITION CANVAS GROUP VALUE PROPOSITION STATEMENT

Inspired by the Business Model Canvas, these 11 Dimensions define and clarify your group’s structure, purpose and value proposition.

This value proposition statement allows you to create a clear and concise charter to communicate to your internal customers and leadership.

Tool Overview

1. 2.

**_3.

5._**

7. 8.

**_9.

11._**

6.

Innovation Group

Definition Canvas

Definition Canvas Overview Current State / Ideal Future State How to Make It, How to Use it Canvas Worksheets

Group Definition Canvas Inspired by the Business Model Canvas, these^ 11 Dimensions define and clarify your group’s structure, purpose and value proposition.

Based on: Business Model Foundry AG The makers of Business Model Generation and Strategyzer This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License.

1. Internal Customers 3. Internal Relationship 2. Organizational Context 4. Assets & Advantages 6. Our Value Proposition 5. Expectations & Outcomes

This work is licensed under the Creative Commons Attribution-Share Alike 3.0^ Designed by: LPK^ www.lpk.com

O U R O R G A N I Z A T I O N (^) O U R V A L U E 7. Scope & Key Activities

8. Team & Resources 11. Cost Structure 10. Scaling Up

Origin this group? Who were the driving forces and what are their expectations? - What was the impetus for creating^ O U R^ I N N O V A T I O N^ 9. Innovation Portfolio^ G R O U P Org Needs leadership needs and ambitions should our group serve? Internal Customers - What critical organization and - Who are this group’s internal customers and early adopters? What are their pains and gains?

Org Structure overall organization structure? Governance & Pipeline have decision-making authority for how best to - Where does our group fit in the - Who ultimately will identify opportunities, align goals and allocate resources? Process Integration integrate into the overall process and corporate - Where does our group strategy? History history related to our group’s focus? Culture & Change - appetite for change and risk and how will that - What is the organization/leadership What is our organization's impact our group? What is the state of our company’s culture? Existing Alternatives customers solving this problem now? Where else - How are internal in the org is innovation occurring even if it doesn’t use that word?

Assets manufacturing assets or IP could serve as key innovation enablers? Advantages - What under-leveraged technologies, - What business, brand or operational advantages could serve as key innovation enablers?

Value internal customers? Pain Relievers customer pains are we solving? - What value do we deliver to our - Which of our internal Gain Creators gains are we enabling? - Which internal customer

Types of Innovation innovation is our group likely to pursue? (e.g. Product, Business Model) Time Horizons - What time horizons will this - Which types of group focus upon? (e.g. Near, Mid, Far) Innovation Formats - group focus upon? What formats will this

Team for our group to succeed? What percentage of this group member’s time will be dedicated towards this group? - What resources & talent is required Internal/External Partners & external capabilities will be critical to our success? Leadership Support - Who are the - What internal advocates for our group? Results internal customers and our group in years 1, 3, 5? Metrics - Quantifiably, what is success in the eyes of leadership, our- What are our key metrics? (e.g. activity, revenue) Expectations expect of this group? - Qualitatively, what do leaders and internal customers

Group Funding funded in the near-term and far-term? Growth Justification justify our need for more funding? - How will this group be - What results will

Solution Home & Funding solutions this group creates in the long-term? How will they be funded? Development & Implementation - Who will own the - How will our group’s solutions be developed, implemented and go-to-market? Will this group be required to sell our solutions back into the BUs? Outputs group deliver? - What tangible outputs will our

External Target Consumer target an existing or new consumer? Categories new categories? - Will this group target existing or - Will this group

Definition Canvas Worksheets The following Canvas Worksheets guide you, your team and leadership through answering the key questions related to the 11 Dimensions.

Definition Canvas Worksheet

History & Precedent -^ 2. Organizational Context What is the leadership’s history related to^ What is the org. state?

our group’s focus? _________________________________________________________

_________________________________________________________ ________________________________________

Culture & Change - related to innovation? What is the organization's appetite for change and risk and how will that impact us? What is the state of the company’s culture

_________________________________________________________ _________________________________________________________

________________________________________

Existing Alternatives - these “tasks & problems” now? Where else in the org. is innovation occurring even if it doesn’t use that word? How are internal customers solving

_________________________________________________________ _________________________________________________________

________________________________________

Supportive, committed and high tolerance for change. Indi and has some tolerance for fferent towards innovation change. innovation and has no Actively undermines appetite for change.

as essential to accomplishing^ associations. They regard it^ Generally positive^ experiences and their goals.^ Mix of positive and negative. associations. They regard it as a distraction from^ Generally negative^ experiences and their objectives.

What is your level of confidence in these answers?

Organization Structure - overall organization structure? Where does the group fit in the

_______________________________________________________ _______________________________________________________

____________________________________________

Governance & Pipeline - making authority for how best to identify opportunities, align goals and allocate resources? Who ultimately will have decision-

_______________________________________________________ _______________________________________________________

____________________________________________

Process & Strategy Integration - development process and where does the group integrate into the overall process? What is the overall

_______________________________________________________ _______________________________________________________

____________________________________________

3. Internal Relationship How will we interact? Horizontal Consult these common org. structure options. Capability Business Unit Function New Business Unit Separate from Core Org.

Definition Canvas Worksheet

Common Answers: A. B. Executive TeamBrands/Business Units C. D. Growth BoardSelf-Steering Team

What is your level of confidence in these answers?

• • • Innovation Consulting TeamCommunity of PracticeCenter of Excellence - - - BU Innovation TeamCoPCoE - - - - Internal Incubator (start)Internal Accelerator (grow)Venture FundInnovation Outpost - - Corporate Venture StudioAcquisition

Results - internal customers, peers and the group members? Quantifiably, what is success in the eyes of leadership,

________________________________________________________ ________________________________________________________

__________________________________________

Metrics - ________________________________________________________ What are our key metrics?

________________________________________________________ __________________________________________

Expectations - customers, peers and group members expect of this group? ________________________________________________________ Qualitatively, what do leaders, internal

________________________________________________________ __________________________________________

5. Expectations & Outcomes What is success?

Definition Canvas Worksheet

Common Answers: A. B. Activity: Number of projects in pipelineActivity: Number of employees trained

Note: innovation groups typically emphasize activity metrics in the first years of^ C.^ D.^ Outcome: Revenue GeneratedOutcome: P&L Impact

their group’s existence - while reinforcing their long-term outcome ambitions.

What is your level of confidence in these answers?

Leadership Internal Customers Peers Group Members

Leadership Internal Customers Peers Group Members

Value - 6. Our Value Proposition What value do we deliver to internal customers?^ What is the value we provide?

_________________________________________________________ _________________________________________________________

________________________________________

Pain Relievers - and how? Which internal pains does your group relieve

_________________________________________________________ _________________________________________________________

________________________________________

Gain Creators - and how? Which internal gains does your group create

_________________________________________________________ _________________________________________________________

________________________________________

Definition Canvas Worksheet

Common Pains: A. B. “We’re not truly in touch with our consumers.”“We need to more quickly understand which solutions

C. D. will work in market, before we over-invest.”“We talk about ideas, but rarely commercialize them.”“Our collective short-termism means we’re focused on

incremental improvements and not thinking beyond.”

Common Gains: A. B. Defend and grow core business & marketshareAdd value to existing products & services

C. D. E. Monitor trends & threatsIncrease speed to marketUp-skill employees

What is your level of confidence in these answers?^ F.^ Match business challenges to emerging tech