{"id":8698,"date":"2020-10-05T15:27:44","date_gmt":"2020-10-05T15:27:44","guid":{"rendered":"https:\/\/www.pdsxchange.com\/?p=8698"},"modified":"2022-01-13T18:00:21","modified_gmt":"2022-01-13T18:00:21","slug":"increasing-operational-efficiency-and-excellence-in-innovation-2","status":"publish","type":"post","link":"https:\/\/www.frost.com\/events\/innovation\/increasing-operational-efficiency-and-excellence-in-innovation-2\/","title":{"rendered":"Increasing Operational Efficiency and Excellence in Innovation"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" style=\"padding-right: 8px; border-radius:50%;\" align=\"left\" class=\"alignleft size-thumbnail wp-image-8703\" src=\"https:\/\/www.frost.com\/events\/innovation\/wp-content\/uploads\/2021\/10\/Paul-Campbell.jpg\" alt=\"Paul Campbell\" width=\"100\" height=\"100\" \/>Presented by Paul Campbell,<br \/>\n<em>Former Chief Innovation Officer,<\/em><br \/>\nW. L. Gore &amp; Associates<br \/>\n<br \/>\nOne key tension innovation leader\u2019s face is balancing broad innovation initiatives with operational improvements. The former serves the need of the company to pursue growth opportunities while the latter delivers critical improvements to margins, efficiency and speed\/agility in the core businesses which will generate a bulk of the revenue and profit for the near term. In this session, we explore how innovation teams can apply their talented resources and processes to increase the operational efficiency of core businesses.<\/p>\n<p>Paul Campbell led a best practices discussion around tapping into existing and new ecosystems of partners and service providers to amplify scarce internal resources, for the purpose of doing more with less.<\/p>\n<p><strong>Key take-aways:<\/strong><\/p>\n<ul>\n<li>Best practices for introducing innovation programs into core businesses<\/li>\n<li>Fresh perspective on how to tap into a larger ecosystem of vendors, partners and service providers<\/li>\n<li>Blueprint to explore processes to balance generative and iterative programs<\/li>\n<li>Examples of \u2018metrics that matter\u2019 for optimal operational efficiency improvements<\/li>\n<\/ul>\n<p>A diverse group of Growth Innovation Leadership Council members including marketers, business development directors and innovation professionals, participated in this members-only Virtual Event.<\/p>\n<p>Presenter and innovation leader Paul Campbell began by asking, \u201c<em>What one thing would you change to make your company more efficient and effective?<\/em>\u201d Member replies included: fewer internal processes so teams could be more agile; breaking down organizational siloes; (mentioned several times) more knowledge and application of best practices (also mentioned several times) and improved decision making based on artificial intelligence (AI) and machine learning (ML) implementation. Paul stated that efficiency and effectiveness are critical to the innovation function, especially in large companies. Yet, as he shared, even with his extensive experience he still finds it difficult to fully assess or measure these qualities; perhaps a common innovation challenge.<\/p>\n<p>Paul polled the members for their definitions of efficiency and effectiveness with the results below (largest size equals frequency of replies):<\/p>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-8699\" src=\"https:\/\/www.pdsxchange.com\/wp-content\/uploads\/2020\/10\/pic2-1024x520.png\" alt=\"definitions of efficiency and effectiveness\" width=\"1024\" height=\"520\" \/><\/p>\n<p>A few other quick member polls were conducted. When asked, <em>\u201cWhich functions create obstacles or innovation efficiencies?\u201d<\/em> popular replies included the C-Suite (20%) and legal (13%) and R&amp;D (13%). Members were also asked, \u201c<em>Which functions have you successfully collaborated with to improve efficiency and effectiveness?\u201d<\/em> Marketing, R&amp;D and strategy were the most popular replies (17% each).<\/p>\n<p>Paul also discussed the perils of the start-up J-Curve, defined by author Howard Love in his book as the period between start-up and sustainable success. This is where most companies dip after the initial start-up planning and design momentum. \u00a0According to Love, this can occur for several reasons including: product takes longer to refine and develop than planned, customers don\u2019t embrace the initial product or the business model doesn\u2019t quite work. <sup>1 <\/sup>To be prepared for J-Curve setbacks, Paul encouraged the innovators in the (virtual) room to be sure they had the organizational latitude to tweak and refine business models outside of core business unit oversight and to recruit dedicated, well-compensated team members especially during this critical period.<\/p>\n<p>As noted, most innovation efforts fall into the core innovation category, i.e. incremental changes to existing products or services. Sometimes companies engage in adjacent innovation, effectively expanding from existing business into \u201cnew to the company\u201d business. Transformational innovation is fairly rare, occurring often as a result of acquisitions or university partnerships. Transformational innovation usually requires a very different business model than\u00a0core innovation. Overall, innovation executives need to consider the very different mindsets, tools and teams needed for the different kinds of business model innovation. Often lumped into one approach, business model innovation varies according to the innovation category, e.g. business model <em>reconfiguration<\/em> (adjacent) or business model <em>design<\/em> (transformational). Applying the right business model approach to your innovation strategy is often the difference between success and failure inside large companies.<\/p>\n<p>Different types of innovation require very distinct organizational configurations. Adjacent and transformational innovation initiatives may shake up entrenched stakeholders \u2013 and the customers and channels they are comfortable with \u2013 which can sometimes impede or even halt progress. As noted, it\u2019s important to leverage all the corporate tools available, while at the same time maintaining ownership of projects.<\/p>\n<p>Innovators should strive to advance agility and flexibility, which can sometimes be challenging with HR policies or legal concerns, not to mention financial and budget constraints. Paul shared the concept of allocating innovation R&amp;D expenses over time, i.e. a number of years, rather than taking the cost or expense only in one specific year. \u00a0The other side of this idea is that ROI can be allocated in the future as product and sales grow. Sometimes it\u2019s possible to work with the company finance department to finesse policies to help support innovation initiatives and the unique challenges they present.<\/p>\n<p>Paul also discussed the basics of an Innovation Canvas, as depicted in the graphic below. For successful innovation, organizations will usually need the whole suite of functions, including design thinking, lean innovation, business model innovation, etc. Each component will affect the other, and the ability to create, execute and scale.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-8700\" src=\"https:\/\/www.pdsxchange.com\/wp-content\/uploads\/2020\/10\/pic3.png\" alt=\"\" width=\"800\" height=\"450\" \/><\/p>\n<p>In closing, Paul reminded members to continuously revisit the purpose of their innovation initiatives. As innovation is an iterative process, project scope and team members may sometimes be in flux; this requires unique and often organization-specific skills to keep things moving between business units\u2026 and projects focused on the customer and the marketplace.<\/p>\n<p><a href=\"https:\/\/www.startupgrind.com\/blog\/the-startup-j-curve\/\" target=\"_blank\" rel=\"noopener noreferrer\">https:\/\/www.startupgrind.com\/<\/a><\/p>\n<p><sup style=\"font-size: 10px;\">1<\/sup> In his book, <a href=\"http:\/\/www.howardlove.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">the Startup J Curve<\/a>, noted entrepreneur and angel investor, Howard Love, essentially states that there is no straight line from startup to sustainable success.\u00a0 Rather, sustainable success\u00a0follows a J Curve where the company initially dips after it starts.\u00a0 The dip can occur for several reasons:<\/p>\n<ul>\n<li>Product takes longer to develop<\/li>\n<li>Customers don\u2019t embrace the initial product<\/li>\n<li>The business model doesn\u2019t quite work<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>One key tension innovation leader\u2019s face is balancing broad innovation initiatives with operational improvements. <\/p>\n","protected":false},"author":90,"featured_media":9583,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[27],"tags":[],"coauthors":[70],"class_list":["post-8698","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pdslog"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v18.4 (Yoast SEO v27.7) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Increasing Operational Efficiency and Excellence in Product Innovation<\/title>\n<meta name=\"description\" content=\"One key tension innovation leader\u2019s face is balancing broad innovation initiatives with operational improvements.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.frost.com\/events\/innovation\/increasing-operational-efficiency-and-excellence-in-innovation-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Increasing Operational Efficiency and Excellence in Innovation\" \/>\n<meta property=\"og:description\" content=\"One key tension innovation leader\u2019s face is balancing broad innovation initiatives with operational improvements.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.frost.com\/events\/innovation\/increasing-operational-efficiency-and-excellence-in-innovation-2\/\" \/>\n<meta property=\"og:site_name\" content=\"Innovation Workshop &amp; Tour Quarterly Series\" \/>\n<meta property=\"article:published_time\" content=\"2020-10-05T15:27:44+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-01-13T18:00:21+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.frost.com\/events\/innovation\/wp-content\/uploads\/2020\/10\/Excellence-Product-Innovation.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"853\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Paul Campbell, Former Chief Innovation Officer, W. 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