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![Innovation Models
RANK RANK COMPANY REVENUE MARGIN KNOWN FOR ITS MOST
2008 2007 GROWTH GROWTH INNOVATIVE
2005-08 2005-08 [% WHO THINK SO]
1 1 APPLE 30.4 15.8 Product (47%)
2 2 GOOGLE 52.6 -8.2 Customer Experience (26%)
3 3 TOYOTA 4.2 -35.9 Process (35%)
4 5 MICROSOFT 13.5 -1.3 Process (26%)
5 7 NINTENDO 61.1 20.6 Product (48%)
6 12 IBM 4.4 14.3 Process (31%)
7 15 HP 10.9 31.6 Process (39%)
8 13 RIM 74.1 11.2 Product (53%)
9 10 NOKIA 14.0 -10.3 Product (38%)
10 23 WAL-MART 9.1 -2.1 Process (49%)
11 11 AMAZON.COM 31.2 -4.8 Customer Experience (41%)
12 8 P&G 11.7 2.4 Process (27%)
13 6 TATA Private Private Product (44%)
14 9 SONY 3.1 -41.1 Product (40%)
15 19 RELIANCE 28.5 11.9 Business Model (35%)
16 26 SAMSUNG 10.5 -1.5 Product (41%)
17 4 GE 10.1 -12.2 Process (36%)
18 NR VOLKSWAGEN 7.1 33.6 Customer Experience (38%)
19 30 MCDONALDS 7.2 9.5 Customer Experience (55%)
20 14 BMW 6.9 -14.6 Customer Experience (37%)
BusinessWeek: The 50 Most Innovative Companies 10](https://image.slidesharecdn.com/m09frostandsullivaninnovationv8-090611143636-phpapp02/75/Building-an-Innovation-Program-10-2048.jpg)
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Building an Innovation Program
This document discusses innovation at Quest Diagnostics and its subsidiary MedPlus. It provides background on the companies, including that Quest Diagnostics is a global leader in diagnostic testing with over $7 billion in annual revenue. It then outlines MedPlus' vision and solutions to enable connected healthcare networks. The document discusses opportunities in healthcare IT and challenges faced by the business and innovation program. It proposes developing an innovation community and adopting complementary management frameworks. Finally, it recaps steps taken to launch a formal innovation program at MedPlus aimed at fostering new ideas aligned with strategic objectives.
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Building an Innovation Program
- 1. INNOVATION Joe Messina, Directorof Planning Marla Kouche, VP-Strategic Program Office Innovations in New Product Development & Marketing 2009 FROST & SULLIVAN EXECUTIVE MINDXCHANGE June 7-10, 2009 / SAN FRANCISCO, CA
- 2. Lessons Learned 1. Insighton building pragmatic innovation practices that are effective at creating ROI 2. Tools & methods to “change the engine while the airplane is in flight” 3. Successful factors for creating a corporate culture of innovation 4. Best practices gleaned from the 2008 MindXchange applied toward innovation excellence 2
- 3. Quest Diagnostics andMedPlus • Parent Company: Quest Diagnostics (NYSE: DGX) – Global leader in diagnostic laboratory testing, information and services – >$7B in annual revenue – Established business relationships with 300,000+ physicians, 3,000+ hospitals and 1,000 payers • MedPlus, Inc. – Healthcare information technology subsidiary of Quest Diagnostics – Headquartered in Cincinnati, Ohio with operations serving North America – Commercial software provider responsible for 25-30% compound annual growth and external IT strategy – Create and deliver IT solutions to Hospitals, Health Systems, RHIOs, and 140,000+ physicians 3
- 4. Our Vision Dedicated peopleimproving the health of patients through unsurpassed diagnostic insights 45,000 employees and innovation. Our Mission We will be the undisputed world leader in diagnostic testing, information and services. 450 employees 4
- 5. Enabled by theMedPlus Solutions Clinical Portal Clinical Catalyst ChartMaxx • Seamless access to • Bridge to a full EMR • Centralized electronic aggregated patient • Point-of-care toolset for the access to the complete clinical data creation, management & legal medical record • Driver of physician sharing of clinical • Preserves paper processes satisfaction and improved information for the floor while clinical decision making • Incremental functionality to automating work flows for the existing Care360 HIM and back office Data Exchange Physician Portal • Fully supports HIM Services compliance needs • Facilitate the exchange of Patient Portal • Improved data access information between source supports improvements systems and user systems • Engage the patient in the beginning with management of their care registration through • Hybrid-federated data model • On-ramp for the patient for delivery of the final bill • Enterprise Master Patient administrative and clinical Index capabilities • Record Locator Service 5
- 6. Opportunity… Right Place,Right Time… The Healthcare IT Outlook, spurred by the Economic Stimulus Package, directly aligns to our core competencies Majority of records still Data resides in Unconnected networks — exist in paper different silos suboptimal business & clinical outcomes 6
- 7. Change Imperative Getting torevenue in Emergent business Employee attrition and a an opportunistic model and product drop in satisfaction market platform scores 7
- 8.
- 9. Early Conversations 1. Whatis the mission… what is our change agenda? 2. What can we learn from other innovation models? 3. Why did it take so long for us to get this far? 4. How will we resource/fund the program? 5. How does this pipeline connect to our others? 6. How will we prioritize projects? 7. What kind of innovation do we seek? 8. Are all innovations welcome? 9. What core capabilities do we possess? 10. What core capabilities do we lack? 11. How wide/open is our community? 12. How will we engage people over time? 9
- 10. Innovation Models RANK RANK COMPANY REVENUE MARGIN KNOWN FOR ITS MOST 2008 2007 GROWTH GROWTH INNOVATIVE 2005-08 2005-08 [% WHO THINK SO] 1 1 APPLE 30.4 15.8 Product (47%) 2 2 GOOGLE 52.6 -8.2 Customer Experience (26%) 3 3 TOYOTA 4.2 -35.9 Process (35%) 4 5 MICROSOFT 13.5 -1.3 Process (26%) 5 7 NINTENDO 61.1 20.6 Product (48%) 6 12 IBM 4.4 14.3 Process (31%) 7 15 HP 10.9 31.6 Process (39%) 8 13 RIM 74.1 11.2 Product (53%) 9 10 NOKIA 14.0 -10.3 Product (38%) 10 23 WAL-MART 9.1 -2.1 Process (49%) 11 11 AMAZON.COM 31.2 -4.8 Customer Experience (41%) 12 8 P&G 11.7 2.4 Process (27%) 13 6 TATA Private Private Product (44%) 14 9 SONY 3.1 -41.1 Product (40%) 15 19 RELIANCE 28.5 11.9 Business Model (35%) 16 26 SAMSUNG 10.5 -1.5 Product (41%) 17 4 GE 10.1 -12.2 Process (36%) 18 NR VOLKSWAGEN 7.1 33.6 Customer Experience (38%) 19 30 MCDONALDS 7.2 9.5 Customer Experience (55%) 20 14 BMW 6.9 -14.6 Customer Experience (37%) BusinessWeek: The 50 Most Innovative Companies 10
- 11. Innovation Categories 1. Business Model: strategy / positioning 2. People: management / community 3. Process: operational efficiency 4. Product: technology / services / customer experience 11
- 12. Innovation Strategies 1. Inspire: Provide an inspiring vision; lead innovation; emphasize opportunities, not problems; trust your people. 2. Organize: Set rules; create a system, guiding structures and processes supporting innovation and idea management. 3. Synergize: Leverage diversity; facilitate cross-pollination of ideas; create and empower cross-functional teams. 4. Empower: Create a culture of questioning; encourage risk taking; give your people freedom to experiment, fail, and restart. 5. Reward: Measure progress; reward both individual and collective contributions; celebrate success, make business fun. 12
- 13. Change Agenda Hero-culture Mentoring-culture Formal and closed Informal and open Command and control Consensus-driven Fear of making mistakes Explore and evaluate Local thinking Systems thinking Redundancy Diversity 13
- 14.
- 15.
- 16. BUSINESS CHALLENGE non-traditional competitors $19.6 Stimulus billion HIT LAND RUN 2009 16
- 17.
- 18. PROGRAM CHALLENGE HIGH EXPECTATION lowrealization 18
- 19.
- 20.
- 21.
- 22.
- 23. solution 23
- 24. DEVELOP COMMUNITY VISION buyer-sellermarket IDEA IDEA IDEA IDEA 24
- 25. PROVOKE STRATEGIC CONVERSATION how big… how open? 2009 2010 2011 • MedPlus Employees • MedPlus Employees • MedPlus Employees • Quest Employees • Quest Employees • Quest Employees • Advisory Customers • Advisory Customers • Customers • Partners • Partners 500 members 500 members 10,000 members 10,000 members 100,000+ members 100,000+ members 25
- 26. ADOPT-ADAPT COMPLIMENTARY management frameworks BOSBlue Ocean Strategy BSC Balanced Scorecard SCRUM/Agile Six Sigma Carrots 26
- 27. INJECT DISCIPLINE innovation program •Articulate Mission, Vision, Values and Change Agenda • Install the Innovation Foundation – Team – Process – Funding – Idea Management Technology – Reward System • Cultivate community soil w/ challenges & content aligned to strategic objectives • Seed, Manage and Harvest 27
- 28. DESIGN PROCESS dualpathways DIRECT-INJECT INCUBATE ELICIT EVALUATE INCUBATE JUSTIFY RATIONALIZE DELIVER • CHALLENGE • SCREEN • RESOURCE • COST/BENEFIT • GROUP/PACKAGE • DMAIC • IDEATE • PICK • REFINE • PRIORITIZE • ITIL • FRAME • ANALYZE • SCHEDULE • SDLC • CATALOG • EXPERIMENT • PROTOTYPE 28
- 29. CREATE INNOVATION PIPELINEVIEWS Tomato garden Source: Strategy as a Portfolio of Real Options, Timothy A. Luehrman, Harvard Publishing 29
- 30. PROVIDE A REVIEWPLATFORM fast-pitch spotlight 30
- 31. GO I AM NOT SIT I LIKE LONGHORNS A CROOK NUTS GO AWAY I GOT NO [regional dialects] MONEY crush kill destroy I SEE I PASS PAIN passive consultative stern I’LL TAKE __ BEERS DEVELOP SCREENS AND DECISION RULES tribal voting gestures 31
- 32. STAGE EVENTS mission impossible •50% short of MBO pipeline target • – Have 250 ideas…need 250 more 15 days left 350 Double our pipeline … produce at least Sweet 250 sweet new new ideas • Twas week before Christmas ideas! • 25% of staff stirring • 1st Time Challenge… FUD • 6 Teams • 18 framed questions • 90-minute team sessions 32
- 33. REDIRECT INVESTMENTS portfolio judo-flip Market Share Market Share High Low 10 % 20% Market Growth High Pearl Oyster Market Growth Low Cow Dog 70% 33
- 34. iPhone App Spark: CTOChallenge to develop a robust application that runs effectively on Apple iPhone platform. Incubation Team: 4 Software Engineers, 1 Executive Sponsor Seed Investment: <$50,000 Highlights: Proved technical feasibility of Care360 on iPhone, positive market reaction. Lessons: 1) Concept required passionate “owners” to sustain forward motion. 2) Business relevance was required to attract commitment for initial seed investment. 3) Ramp-up time was longer than expected but Apple development publications and support were solid. 4) Importance of mobility to a growing customer segment. Business Impact: Buzz from Sales channel, prospective HIE customers and business partners who are looking for leverage within vertical (healthcare) markets. Technical Team acquired requisite knowledge of new development environment (COCOA technology framework and Objective-C language). Road Ahead: Care360 iPhone application is now available in the Apple App Store. More muscular mobility strategy in play. 34
- 35. lessons 35
- 36. HOW MIGHT WE… Gain products Reduce theclinical involve, Stretch internal order adoption Expand our model ofCloudservicing Improvehealthcare datarelevant Betterourinfrastructureinnovation? Impactunderstand, morehow Make growthcollaborative a our to Drive betterthe thatwithinthat cost Accelerate our rateofdomain andin products arefor experience insights on usable? using handling products world markets? from our _ customers? computing? cents? market knowledge? between customers? serve_ to are Quest developing nation? produce and emergingand deployed and used? MedPlus home office practices? solo to five-physicianand remote locations? own? LESSON NO. 1 Framed challenges work 36
- 37. Ant Farm, byUncle Milton, invented 1956 LESSON NO. 2 Harness the community make the innovation process transparent… make it theirs 37
- 38. • timely • right-sized • individualized LESSON NO. 3 Reward quiet contribution too 38
- 39. LESSON NO. 4 Informculture thru stories 39
- 40. Noise-dampening Accessible Extensible Immediate Fun Simple Cost effective powered by spigit LESSON NO. 5 muchmuch Technology makes it easier 40
- 41. recap • Installed Strategic Management Frameworks – Blue Ocean, Balanced Scorecard, SCRUM/Agile, Six Sigma • Reoriented the Portfolio for innovative growth • Launched formal Innovation Program – Team ◦ Mission/Vision/Objectives ◦ Funding ◦ Plan – Pointed innovation feelers to strategic objectives – Ran Innovation events to keep it fresh and relevant – Rotated core team to create energy and diversity – Installed connectivity technology – Improved innovation measurements • Harnessed COMMUNITY to moderate, evaluate and form ideas 41
- 42. reference 42
- 43. About the Presenters MarlaJ.J.Kouche Marla Kouche Joseph R. Messina Joseph R. Messina Vice President, Strategic Program Office of MedPlus, Inc. Vice President, Strategic Program Office of MedPlus, Inc. Director of Planning, Strategic Program Office of MedPlus, Inc. Director of Planning, Strategic Program Office of MedPlus, Inc. 4690 Parkway Drive 4690 Parkway Drive 4690 Parkway Drive 4690 Parkway Drive Mason, OH 45040 Mason, OH 45040 Mason, OH 45040 Mason, OH 45040 www.medplus.com www.medplus.com www.medplus.com www.medplus.com [email protected] [email protected] [email protected] [email protected] http://www.linkedin.com/pub/marla-kouche/7/482/1a http://www.linkedin.com/pub/marla-kouche/7/482/1a www.linkedin.com/in/joemessina www.linkedin.com/in/joemessina Marla J.J.Kouche is the Vice President of the Strategic Program Office of MedPlus, Marla Kouche is the Vice President of the Strategic Program Office of MedPlus, Joe is aaPlanning Director within the Strategic Program Office of MedPlus, Inc., aa Joe is Planning Director within the Strategic Program Office of MedPlus, Inc., Inc., aawholly owned subsidiary of Quest Diagnostics. With over $7B in annual Inc., wholly owned subsidiary of Quest Diagnostics. With over $7B in annual healthcare information technology subsidiary of Quest Diagnostics. With over $7B healthcare information technology subsidiary of Quest Diagnostics. With over $7B revenue, Quest Diagnostics is the world’s leading provider of diagnostic testing, revenue, Quest Diagnostics is the world’s leading provider of diagnostic testing, in annual revenue, Quest Diagnostics is the world’s leading provider of diagnostic in annual revenue, Quest Diagnostics is the world’s leading provider of diagnostic information and services. Ms. Kouche is responsible for the management of the information and services. Ms. Kouche is responsible for the management of the testing, information and services. testing, information and services. organization’s enterprise-wide customer facing strategies, product planning and organization’s enterprise-wide customer facing strategies, product planning and management disciplines and direct product line responsibility for all technology management disciplines and direct product line responsibility for all technology Since joining MedPlus in 2001, he has held aanumber of positions focused on offerings. Since joining MedPlus in 2001, he has held number of positions focused on offerings. systemic change, applying transformative frameworks to NPD, BPM, KM, systemic change, applying transformative frameworks to NPD, BPM, KM, innovation and strategy management. innovation and strategy management. Since joining MedPlus in 1998, she has held several positions with varying Since joining MedPlus in 1998, she has held several positions with varying strategic, technical and business layers, including the role of Vice President of strategic, technical and business layers, including the role of Vice President of Prior to joining MedPlus, Joe served as aaproduct lifecycle management specialist Finance for the organization. Prior to joining MedPlus, Joe served as product lifecycle management specialist Finance for the organization. with Siemens PLM, IBM and Lockheed where he worked closely with clients across with Siemens PLM, IBM and Lockheed where he worked closely with clients across aavariety of industries including architecture-engineering-construction, aerospace variety of industries including architecture-engineering-construction, aerospace Prior to joining MedPlus, Ms. Kouche was with Deloitte and Touche LLP, the Prior to joining MedPlus, Ms. Kouche was with Deloitte and Touche LLP, the and defense, automotive, consumer electronics, energy, healthcare, high-tech, and defense, automotive, consumer electronics, energy, healthcare, high-tech, international audit and accounting firm. She served as aaspecialist within the international audit and accounting firm. She served as specialist within the manufacturing, and telecom. He has aaBA in Architecture (1983) from the manufacturing, and telecom. He has BA in Architecture (1983) from the SEC and Information Technology sectors. SEC and Information Technology sectors. University of Kentucky and Balanced Scorecard (BSC) Practitioner Certification University of Kentucky and Balanced Scorecard (BSC) Practitioner Certification through Kaplan and Norton. through Kaplan and Norton. 43
- 44. Publications TheBalanced Scorecard, Making Us More Ruthless Execution, 10 Rules for Robert Kaplan, David Innovative, Amir Hartman Strategic Innovators, Norton Jeffrey Phillips 2003 Vijay Govindarajan, 1996 2008 Chris Trimble 2005 Blue Ocean Strategy, The Ten Faces of The Global Brain, Democratizing W. Chan Kim, Renée Innovation, Mohan Sawhney Innovation, Mauborgne Tom Kelley 2007 Eric Von Hippel 2005 2005 2005 Getting to Innovation, Globality, Fast Innovation, The Human Side of Arthur B. VanGundy Hal Sirkin, Jim Michael George Managing 2007 2005 Technological Hemerling, Arindam Innovation, Bhattacharya By Ralph Katz 2008 2003 Around The The Carrot Principle, Think Better, Corporate Campfire, By Adrian Gostick, Tim Hurson by Evelyn Clark Chester Elton 2007 2004 2009 44
- 45. Publications Howto get the most 12 Different Ways for Perfecting Cross- Co-Creation's 5 from your best ideas, Companies to Pollination, Guiding Principles, Accenture Outlook Innovate, Lee Fleming Martijn Pater 2008 Sawhney, Wolcott & 2004 2009 Arroniz 2006 45
Editor's Notes
- #5 As small as we are in terms of relative size to our parent company, we are making a significant contribution to Quest Diagnostic’s vision and mission.
- #10 One of the first things we did was to acknowledge the FUD (Fear-Uncertainty-Doubt) that had manifested in all of us over the months since our innovation proclamation. We put all of our moose on the table in one meeting -- and had some very frank discussion that covered these areas. This provided a collective sigh, created needed alignment around those areas that were most critical to us and gave us a starting point and vector forward. We had enough to start building out an execution plan.
- #11 Next, we studied a number of innovation models to help provoke crucial conversations around our innovation vision, strategies and value system. There was much we could learn on two levels: a) how they innovate and b) where they chose to innovate We looked at various characteristics that drove results… what we called “the secret sauce”. Some of these factors resonated very strongly with us and provided a helpful vocabulary (based on analogy) and context for further discussion and alignment. Apple: relentless focus on product design and usability Google: introduction of “small bet” beta capabilities to “lead users” (ala Eric Von Hippel) Microsoft: positioning strategies P&G: “connect and develop” model that augmented limited P&G resources (7500 scientists) with a community of 1000’s. Culminated in a “proudly invented elsewhere” culture and hyper growth. Amazon: focus on customer experience through seemingly incremental enhancements that contributed to stickiness and pleasurable customer experience model. Goodbaby: capacity to generate a new product every 12 hours… how DO THEY do that? Tata Nano: cheapest car… $2500 Aravind Eyecare: innovative, profitable and humane business model that enables 250,000 surgeries per year… with 60% free Secret Sauces Economy-of-scale High-quality products High-efficiency processes Customer experience Localized designs and brands Distribution channels
- #12 We conducted an inventory of ideas within out pipeline and found they generally fell into four (4) buckets. Our research validated this common taxonomy. Our previous work with the Balanced Scorecard had prepared us to think about our business holistically from multiple business perspectives, so there were no surprises here.
- #13 A pattern of strategies emerged from our innovation discovery work… these were the strategies we felt we could/should adopt.
- #16 How can we build the plane while we’re in flight. Any solution would have to recognize this objective reality.
- #17 INFORMATION SOURCE : http://www.businessweek.com/magazine/content/09_18/b4129030606214.htm The current scramble in health information technology is similar to the 19th century land rush. LARGE medical vendors are jockeying for new business spurred by a $19.6 billion federal initiative to computerize a health system buried in paper. It’s a terrific opportunity but the field is flush… The billions in taxpayer funds—part of the $787 billion economic stimulus— have also energized tech titans General Electric (GE), Intel (INTC), and IBM (IBM), all of which are challenging LARGE traditional medical suppliers like ALLSCRIPTS, CERNER and MCKESSON. Microsoft (MSFT) and Google (GOOG) aim to put medical records in the hands of patients via the Web. Wal-Mart (WMT) is teaming with computer maker Dell (DELL) and digital vendor eClinicalWorks to sell information technology to doctors through Sam's Club stores.
- #19 The Story … Management expectations were high… we would launch this initiative and get results quickly. We staged a glamorous kickoff that included our best and brightest… folks that would lead and manage execution. We laid cool chachkees (Aron’s Thinking Putty) out neatly at every place setting. Our leadership team delivered rousing talks on the strategic imperative of innovation Our A-list innovation luminary pump the volume up even louder. We left the room in great sprits! Two months later… CRICKETS! What happened? We failed to recognize the importance of program infrastructure and discipline required to move us beyond our good intentions and enthusiasm.
- #20 Our existing tools were simply ill-suite for the task at hand. We already had some tools in-house that (at-first-blush) looked like they could satisfy our collaboration needs. They were readily available to the organization and they were open source. Free. Folks could go there to enter there ideas… but it was very difficult to find and combine similar ideas or concepts. As importantly, we found it very difficult to communicate changes in evaluation status or progress towards execution. We were creating a black hole. There were simply too many things we needed to be able to do but couldn’t. In the end, a very small percentage of employees used this toolset to capture their ideas and an even smaller number returned to refine their initial ideas.
- #21 We serve 14 distinct stakeholder groups… with competing priorities and commitment expectations. Introducing a new “innovation” pipeline ups the anti. If we don’t manage it properly we create expectation that can’t be met.
- #22 One side of our organizational brain has been wired for repeatability and predictability. The high-availability (99% uptime) nature of our SAAS applications demand this. That can create a challenging dynamic for folks who are trying to “sell” new ideas that challenge entrenched beliefs and behaviors.
- #23 Not everyone has the skill set or even the desire to work on projects where there’s a high degree of ambiguity. The fuzzy front-end can be frustrating for many people for a variety of reasons: Uncharted or unproven technology enablers Political and cultural road-blocks Unreasonably high expectations Looming deadlines Often these projects require a special blend of soft (influencing) and technical skills… the kind we don’t find in every cube. The kind that are – many times – already tapped out or sought by other programs.
- #24 Install Management Frameworks BOS (Blue Ocean Strategy) BSC (Balanced Scorecard) SCRUM/Agile* Six Sigma CMMI Adjust Portfolio Investments Flipped Cows-to-Pearls investment ratio Chartered Managed Innovation Program Adopt directed, event-driven innovation philosophy Deploy wide-community web2.0 infrastructure Evolve quantitative & qualitative measurements Incorporate voting, reputations, rewards & game theory to drive engagement BOS : Blue Ocean Strategy Scrum is a simple framework used to organize teams and get work done more productively with higher quality. It allows teams to choose the amount of work to be done and decide how best to do it, thereby providing a more enjoyable and productive working environment. Scrum focuses on prioritizing work based on business value, improving the usefulness of what is delivered, and increasing revenue, particularly early revenue. Designed to adapt to changing requirements during the development process at short, regular intervals, Scrum allows teams to prioritize customer requirements and adapt the work product in real time to customer needs. By doing this, Scrum provides what the customer wants at the time of delivery (improving customer satisfaction) while eliminating waste (work that is not highly valued by the customer). http://www.ebizq.net/topics/web20/features/9124.html#origins A lot of people are talking about Enterprise 2.0 as being the business application of Web 2.0 technology. However, there's still some debate on exactly what this technology entails, how it applies to today's business models, and which components bring true value. Some use the term Enterprise 2.0 exclusively to describe the use of social networking technologies in the enterprise, while others use it to describe a web economy platform, or the technological framework behind such a platform. Still others say that Enterprise 2.0 is all of these things. What is Enterprise 2.0? &quot;Enterprise 2.0 is the use of emergent social software platforms within companies, or between companies and their partners or customers.&quot; - Andrew P. McAfee, Harvard Business School Social software or social media tools allow people to meet, connect and collaborate in online, web based communities. Enterprise 2.0 is the use of these sorts of tools, including blogs, wikis, and other content sharing applications in the corporate or organizational environment, rather than as individual consumers. It is a term for the application of web 2.0 tools and techniques to business or other enterprises. Andrew McAfee Bio http:// drfd.hbs.edu/fit/public/facultyInfo.do?facInfo = bio&facEmId = amcafee&loc = extn
- #26 Key Questions: This visual was designed to provoke strategic conversation around the following questions: What level of connectedness, openness and integration is required to achieve our innovation program and business growth objectives? What should our innovation network look like by end of 2009… by end of next 2011? How permeable should the boundary be between MedPlus and its external community? How will we manage IP and community policy?
- #27 While we introduced these various frameworks over time, the core principles and practices of each serve to enhance the other. It’s this particular combination that is helping us to accelerate the pace of change at MedPlus… and in some cases helping us promote change within Quest Diagnostics. BOS (Blue Ocean Strategy): BOS provides a very simple way to visualize the value propositions we present or would like to present to various markets that we serve. It’s been very useful in helping us think about uncontested space… areas of potential differentiation or disruption… the white space or blue ocean that we really need to DIRECT our innovation feelers and funding at. BSC (Balanced Scorecard) : According to a recent Bain study, strategy execution is the number one concern for executives around the globe. The number two concern is innovation and growth. Innovation in markets, in design, in interaction with customers, in business processes and-arguably most importantly-in management thinking. The Balanced Scorecard framework is provisioned with toolkits and case studies that help build an innovation strategy. The annual conferences that we’ve attended over the past few years are also keyed to innovation. We began implementing the BSC in 2007 and continue to build discipline in several of the core (27) practice areas. While our strategy map identified INNOVATIVE GROWTH as 1 of our 4 strategic themes… and we outlined 3-4 other linked objectives, it was last year’s MINDXCHANGE that really triggered management focus and execution. REFERENCE : Innovation Alignment Toolkit: A Multimedia Toolkit to Help You Develop An Innovation Strategy Within Your Organization http://harvardbusinessonline.hbsp.harvard.edu/b01/en/common/item_detail.jhtml;jsessionid=L12OHJK3DNWPKAKRGWDR5VQBKE0YIISW?id=2678&cm_sp= targmark-bpw-_-innovation-alignment-toolkit-_-no-cookie&_requestid =44535 SCRUM/Agile: Refers to a software development methodology based on iterative development, where requirements and solutions evolve through collaboration between self-organizing cross-functional teams. The term was coined in the year 2001 when the Agile Manifesto was formulated…but really goes back to 1986 when Hirotaka Takeuchi and Ikujiro Nonaka described a new holistic approach to increase speed and flexibility in commercial new product development. Agile methods generally promote a disciplined project management process that encourages frequent inspection and adaptation, a leadership philosophy that encourages teamwork, self-organization and accountability, a set of engineering best practices that allow for rapid delivery of high-quality software, and a business approach that aligns development with customer needs and company goals. Conceptual foundations of this framework are found in modern approaches to operations management and analysis, such as lean manufacturing, soft systems methodology, speech act theory (network of conversations approach), and Six Sigma. A key principle of Scrum is its recognition that during a project the customers can change their minds about what they want and need (often called requirements churn), and that unpredicted challenges cannot be easily addressed in a traditional predictive or planned manner. As such, Scrum adopts an empirical approach—accepting that the problem cannot be fully understood or defined, focusing instead on maximizing the team's ability to deliver quickly and respond to emerging requirements. There are several implementations of systems for managing the Scrum process, which range from yellow stickers and whiteboards, to software packages. One of Scrum's biggest advantages is that it is very easy to learn and requires little effort to start using. SIX SIGMA : Our parent company initiated Six Sigma at MedPlus about five years ago. We have used BSC to help us strategically align and direct our Six Sigma resources and projects towards those areas that provide greatest lift. METRICS: 1 Master Black Belt / 2 Black Belts / 99 trained Green Belts. CARROTS : An incentive program that was promoted by our parent company during the past year. We are INNOVATING further by integrating the Carrot principles into our Innovation Community. This approach takes us into a space where the largest chunk of employee contribution and collaborative behavior occurs… in the background on a channel that was simply not monitored. Our solution partners (Spigit and OC Tanner) are helping us tie this critical knot.
- #29 1. Elicit Innovation is directed. Ideas are generated, formed and related to one another using a variety of individual or group ideation techniques. Ideas are entered into an Idea Management system where they are further categorized for future mining and evaluation. Related knowledge and commentary are continuously appended. 2. Evaluate Ideas are examined through a screening process that gauges customer and business impact, and drives a decision to: Incubate (4), Justify (5), Defer or Reject. 3. Incubate An Innovation Project Team is chartered with executing a prescribed set of activities (e.g. market analysis, feasibility study, prototyping) that will bring the idea into focus and drive a decision to: Justify (5), Defer or Reject. The goal of incubation is to increase the chances that an idea will succeed. 4. Justify Cost-benefit analysis is applied to a specific idea or logical group of ideas to aid in downstream prioritization. 5. Rationalize Ideas are logically bundled into projects or programs and scheduled for solution delivery based on priority, budget allocation and skilled resource availability. These activities occur under a Portfolio Management umbrella. 6. Deliver Ideas are fully realized through a formal solution delivery lifecycle (SDLC, ITIL, DMAIC)
- #30 PHILOSOPHY: View business strategy is a series of related options Translate growth opportunities and product-market gaps to options (or projects) Divide options-space into six regions based on value-to-cost and volatility metrics… and conventional NPV (Net Present Value) 1: Now 2: Maybe Now 3: Probably Later 4: Maybe Later 5: Probably Never 6: Never Apply Gardening Metaphor: Options as Tomatoes Passive Gardeners: pick/don’t pick at end-of-season Active Gardeners: continuously monitor and nurture Condition of a tomato can affect size & ripeness of other tomatoes
- #31 Wish the winners were color coded like this or a spotlight dropped out of the sky. It takes a significant level of effort to identify the ideas that are worthy of deeper study and incubation. It’s a time consuming process and we simply don’t have the horses for that.
- #32 We worked out a series of gestures that we use within our screening ritual to indicate position WRT ideas
- #34 Amir Hartman, the author of Net Ready , In Search of Digital Excellence , and Ruthless Execution , offers a well-founded philosophy and a set of practical tools and methodologies for assessing and recalibrating strategic focus through objective examination of a company’s portfolio-of-initiatives. One of these is the two-axis Strategic Recalibration Matrix. PHILOSOPHY Every business has a portfolio of initiatives that make up their “spend”. The goal of portfolio management is to manage through good and tough times. A key step in recalibrating strategies is to rearrange the portfolio of business initiatives, the set of projects, investments, and other efforts that our business is working on and allocating resources and attention against. Recalibrating by adopting a portfolio-of-initiatives strategy encourages executives to be more flexible, immediate, and action-oriented. The notion of strategic recalibration is to monitor circumstances, to engage in rigorous analysis of each initiative, and to adapt to changing circumstances.
- #37 LESSON1 : This was a HUGE discovery for us! The notion that we could or should direct innovation using framed questions in an event setting. It works! We plan on leveraging this philosophy heavily in our innovation practice. We also see these events coming in a variety of sizes, flavors and duration… product teams, process teams, departments, companywide. This approach aligns precisely with the BSC principle of “cascading strategy” throughout the organization… having everyone involved building out performance models is a very powerful engagement tool.
- #38 LESSON2 : The innovation process must be transparent and scalable. And the only way to accomplish that is through community-accessible technology. The Ant Farm was an apt metaphor for the hurdle we were attempting to jump. The Challenge activity made it very clear that if we wanted to continue with this approach and keep our heads above water, then we needed to find a scalable solution for forming, mining and vetting ideas – and we needed to make the process much more transparent and accessible. We drew inspiration from a number of community models mentioned earlier. While the notion of letting the wider-community play a more active role in the vetting process was something we had discussed earlier… we now had a burning platform to accelerate movement towards a more robust technology backbone. This decision worked on so many levels: We needed to make the process much more transparent We needed to find a way to engage the organization and later our customers. We needed SMEs that were not available within the immediate program team We simply needed more hands, minds, fresh energy and ideas to keep this program moving forward to the next level. REFERENCE : http://toys.about.com/od/scienceanddiscovery/a/unclemiltonant.htm REFERENCE : http://www.unclemilton.com/products/AntFarm/content/af_vintage_main.html
- #39 LESSON3: we’re in a knowledge-based industry where employee contribution occurs in many channels. Much of it is invisible and incremental. It was important to implement a system that would enable us to measure quantity and quality of contribution from all channels… and tie the knot with our carrots reward system. The set of mechanisms we use to drive engagement over time are critical. And everyone is motivated for different reasons: Unique or interesting challenges Visibility, Recognition or Stature Rewards The Carrot Principle tell us that rewards must be: timely right-sized individualized
- #40 LESSON4 : historically we’ve been poor at capturing and telling stories that are significant to the culture we are trying to create. Stories should address fundamental and difficult questions that our employees ask: who and what are we, where did we come from, why am I here, how can/should I contribute, what is the right thing to do, what is our market universe, where are we going? We will continuously look for stories that inform about our culture , not necessarily historical truth. Trekies recognize the importance of myth more than most . SOURCES : http://www.amazon.com/Around-Corporate-Campfire-Leaders-Success%2522/dp/1932863044/ref=sr_1_1?ie=UTF8&s= books&qid =1243524255&sr=1-1 http://harvardbusinessonline.hbsp.harvard.edu/b01/en/common/item_detail.jhtml?_DARGS=/b01/en/commerce/includes/AddToCart.jhtml http://hbr.harvardbusiness.org/2009/03/learning-from-heroes/ar/1 http://www.davidkabraham.com/OldWeb/Beliefs/Education/mythology.htm http://artpetty.com/tag/leadership-literature-literature-and-mythology-in-business/
- #41 Our Desired Value Proposition was… Easy to configure, set up and manage Fosters collaboration & participation Boost connectedness with employees & customers Prioritize ideas with greater certainty Faster velocity of ideas to execution Eliminates noise naturally Drive alignment at multiple levels Within MedPlus Between MedPlus and Quest Between MedPlus and its Customers Between MedPlus and its Business & Technology Partners Amongst Customers