Innovation Leadership

Leadership Series 2010

April 21, 2010
betti@leadershipQB.com

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 TOPICS
• Innovation at Google
• IBM Innovation Approach
• Creating A Climate of Innovation

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 Innovation, Defined
• The introduction of something new, different, unique
• A new idea, method, device
• The process of taking an idea to market

Innovating : the process of taking ideas to

market or to usefulness
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 Market Driven Innovation

Is there a problem seeking a solution ?

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 Innovation at

Mission :
Organize all the world's information and make it
universally accessible and useful

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 What is innovation anyway ?

• Incremental Innovation

• Incremental with side effects

• Transformational

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Regardless, Start with Users
User don't know what they want
but they know their problems

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Another way to listen to the users :
Pay attention to the data
Spelling Correction
Search refinement

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 Creating a climate of innovation
• Ideas come from
everywhere, create a space
for sharing
• Reward risk taking
• Chaos breeds creativity
• Empower users
• Experiment often fail fast
• Let engineers find their
passion (Google's 20 %
policy)
• Acquire a taste of dog food

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IBM Innovation Approach

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 Lead by Values

Dedication to every client’s success.

Innovation that matters -
for our company and for the world.
Trust and personal responsibility
in all relationships.

IBM's Value 11
The Global Innovation Outlook: Overview
IBM opens its business and technology forecasting processes
for the first time
 Series of dynamic, free-form brainstorm sessions around
key issues and opportunities related to innovation
 Draws together broad ecosystem of experts from business,
academia, government, citizens’ groups, partners, etc.
 Insights shared openly and opportunities pursued collaboratively

Launched in 2004 with three primary focus areas

 Healthcare, Government, Work/Life
 Resulting initiatives: integrated healthcare records; IP reform;
global skills forecasting; BCS innovation offerings

Greatly expanded in 2005-06

 Participation increases by 50% to almost 180 external partners
 Increased focus on developing new markets and capitalizing
on business opportunities

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 IBM Research

Global Innovation Outlook 1

Focus Areas

Government &
Its Citizens

The Healthcare
Ecosystem

The Business of
Work & Life

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© 2005 IBM Corporation
 Global Innovation Outlook 2

The changing nature of innovation related to…

Environment and Eco-efficient Technologies
 Focus areas include eco-efficient technologies; economic
impact of access to clean water supplies; predictive
environmental impact services
Transportation and Mobility
 Focus areas include mega-urban centres and smart traffic
management; “connected” vehicles; customs, ports and
border control
The Future of the Enterprise
 Focus areas include designing the 21st century corporation;
managing global talent and skills; alternate R&D/innovation
models; the “global” small business

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 InnovationJam 2006
Over 76 hours Innovation Jam involved:

• 53,000 participants
• 37,000 posts from 77 countries
(a record for Jams)
• 4.2 million page views of Jam related
materials
• 67 participating companies in
addition to IBM

Companies who participated included:

•Air Canada, Bank of America,Fuji XEROX

Co. Ltd., Gap Inc., Metro Group, MIT Media
Lab,Royal Dutch Shell plc
•The Walt Disney Company

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 Bringing new meaning to “collaborative innovation”
with Global Engineering Solutions

 IBM GES innovation model:

 Traditional innovation model:
• Clients & GES bring complementary assets, resources and skills to
• Invest in own R&D  expensive, can result in innovation that
the table  less time/expense because each does what they’re best
“doesn’t” matter
at
• “Buy” innovation through acquisitions and mergers  costly,
• Clients only use what they need from IBM’s slate of capabilities 
and usually involves painful restructuring
no permanent overhead $ associated with staff, facilities, tools, etc.

Client IBM & Extended

Concept/ Collaborative
Differentiated IBM Ecosystem
Assets Client Innovation GES Assets
Solutions

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Win/Win
Examples of collaborative innovation generating
real business value… Nortel Communications
Infrastructure
Embedded Software -
Joint Development
Game Consoles BlueGene
Valeo
Supercomputer
Comfort
Powertrain Climate Body Electronics
Visual Voice
Engine Infotainment
Transmission
Sensors

w/IBM Research

Motors
Safety

Head Unit
Realtime
Control
Sub-System
Control Units
Power Supply

Magna Lights
Electronic
Control Unit
Brakes
Integrated
Control Unit

Stability
Wireless
Steering Chassis Actuators
Connectivity
Suspension

Wireless Handheld Devices

Honeywell Ruggedized
Computer

Brother Karaoke

Medtronics Cardiac St. Jude Medical

Device Programmer Defibrillator/Pacemaker
Programmer
Mayo Clinic MRI
Coil
Secure Trade Lanes

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The System of Innovation

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 Leadership in innovation: Leading, setting direction,
laying the cultural groundwork that stimulates innovation

• Challenge your assumption, there got to be a better way

• Mine the future :

– Table topic, pick a customer group and discuss the biggest changes impacting that
group presently
– Find customer’s un met needs
– Listen-listen-listen and get the insight

• Fortify your idea factory

– Collaboration between business unit
– Invite ideas from everybody
– Reward risk taking
– Collaborating with outsiders

• Cultivate the culture

– You get behaviour that you rewarded
– To innovate you’ve got to be willing to celebrate failure : laughing, learn from it
– Manage the mix (diversity)
– Busting innovation barrier : lack of time, long era of past success, little budget freedom
to experiment
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 Management As Champions Of Innovation

 New ideas can only be brought to fruition if given the required support
 Bob Molenda’s vision kept Art Fry’s “Post-it” notes project at 3M

from being killed due to budgetary constraints

 This support is best found with a sponsor or champion, an individual with the
decision-making ability to commit resources to the idea

 The required qualities of the sponsor include:

 Power: level in the formal hierarchy, ability to supply needed resources

(funding, time, workforce)

 Prestige: has respect of colleagues, ability to champion the acceptance

of the idea (politics)

 Vision: ability to perceive the long-term benefits of the idea over the

short-term budgetary effects

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