Innovation and Creativity for BPMEncouraging ideas for process change and the agile process-centric organizationMuch of the material in this presentation was drawn from the following sources:http://www.bottomlineinnovation.com/excerpt.htm, quoting an excerpt from Blueprints for innovation: How creative processes can make you and your company more competitive, by Prather, C.W. and Gundry, L.K.For further reading on innovation:http://en.wikipedia.org/wiki/TRIZ. TRIZ is a methodology, tool set, knowledge base, and model-based technology for generating innovative ideas and solutions for problem solving

BA 553: Business Process Management

What is innovation?In the last presentation, it was discussed that businesses that were agile created an environment that supported innovationWhat is innovation?Innovation is the introduction of new ideas, goods, services, and practices which are intended to be useful (though a number of unsuccessful innovations can be found throughout history).en.wikipedia.org/wiki/InnovationIntroduction of a new idea into the marketplace in the form of a new product or service or an improvement in organization or process.www.business.gov/phases/launching/are_you_ready/glossary.htmlBA 553: Business Process Management*

BA 553: Business Process Management

BA 553: Business Process Management*What is creativity?1.The ability to transcend traditional ideas, rules, patterns, relation-ships, or the like, and to create meaningful new ideas, forms, methods, interpretations, etc.; originality, progressiveness, or imagination.www.business.gov/phases/launching/are_you_ready/glossary.html 2.A mental process involving the discovery of new ideas or concepts, or new associations of the existing ideas or concepts, fueled by the process of either conscious or unconscious insight.http://en.wikipedia.org/wiki/Creativity

BA 553: Business Process Management

BA 553: Business Process Management*Why are innovation and creativity important?Innovation is the key to achieving competitive strategic advantage, now and in the future. J. M. Higgens, 1996

Innovation that of turning ideas into products, services and processes comes directly from creative thinking. J. D. Couger, 1995

Creativity must be encouraged by senior managers and is therefore important that management know how to change their organizations culture so that their staff will learn to think more creatively.

Elizabeth McFadzean, 1998

The rate at which individuals and organizations learn may become the only sustainable competitive advantage.Ray Stata, PresidentAnalog Devices, Inc.

BA 553: Business Process Management

BA 553: Business Process Management*Innovation and Process Design/RedesignInnovation is necessary for coming up with new ideas for improving existing processes and for developing new onesInnovation facilitates process re-engineering by applying creative ideas and perspectives to organizational systems and processesProcess innovations tend to involve a business model which may develop shareholder satisfaction through improved efficiencies. 1A process innovation is the implementation of a new or significantly improved production or delivery method. This includes significant changes in techniques, equipment and/or software. 2Innovation, http://en.wikipedia.org/wiki/Innovation, accessed 15 February 2010.OECD (2005). Oslo manual: Guidelines for collecting and interpreting innovation data. Paris: OECD.

BA 553: Business Process Management

BA 553: Business Process Management*Innovation and StandardizationThe fact is, innovation and standardization MUST co-exist; you cant have one without the other In many ways, standardization forms the foundation from which innovation can occur.1Standards help promote innovative products and services by building confidence among industrial users and consumers and creating a large scale market. 2If innovative technologies are to generate return on investment, create jobs and have a broad impact on global society, it is vital that the technologies can access global markets early. It is now widely agreed that the best tool to ensure this is standardization, addressed at the earliest possible stage. 3Can innovation and standardization co-exist in business? Chevron intranet, accessed 13 February 2007.Standardization supporting innovation and growth, European Standardization Organizations, European Innovation Summit, October 2009.Ibid.

BA 553: Business Process Management

BA 553: Business Process Management*Innovation and LearningTo create an environment that enables innovation to take place, there must be a culture supportive of learning and changeEmployees need to be able to experiment and learn from mistakes and they need to be able to make decisions and act on themThe rate at which individuals and organizations learn may become the only sustainable competitive advantage.Ray Stata, PresidentAnalog Devices, Inc.We must find ways to tap into the creativity and talents of all our company members if we are to survive.Chester L. JonesOklahoma Gas & ElectricIn a time of drastic change, those who know find themselves equipped to live in a world that no longer exists it is those who learn who will inherit the future.The Systems Thinker

BA 553: Business Process Management

BA 553: Business Process Management*Four Types of Innovations1.Breakthrough This is the truly revolutionary idea that is most peoples concept of innovation, often resulting from a new invention. An example of this is the personal computer.2.Programmed Innovation that results from carefully planned and executed research. An example of this is Chicken McNuggets, a product introduced only after extensive market research and planning.3.Supporting Innovation required to make another innovation successful, this type might not be otherwise developed.4.Innovation produced by another innovation Again, the personal computer is a good example. The fundamental idea of the PC was an initial innovation that produced scores of other innovations in microchip design, storage devices, screens, man-machine interface (e.g., the mouse), etc.Excerpt from a letter from Robert Kohler, the President of ESL, a Subsidiary of TRW, in 1987.

BA 553: Business Process Management

BA 553: Business Process Management*Four Levels of InnovationMinor ImprovementsRepresent small changes, and are therefore usually easy to adopt.Major ImprovementsRepresent larger changes than minor improvements, so adoption is more challenging.ReinventionReplaces the old situation (product, service, process, or system) with an entirely new one. Adoption can be difficult and require a lot of attention.InventionTypically creates the most change, as they are directed at creating an entirely new product, service, process, or system. Adoption can be very difficult.Innovation Tools Memory Jogger, GOAL/QPC, 2009.

BA 553: Business Process Management

BA 553: Business Process Management*Measuring Innovation: Innovation Quotient (IQ)5=Always/definitely! 4=Usually/probably 3=Generally/maybe 2=Sometimes/possibly 1=Never/probably not___ 1.Does at least 25% of your revenue come from products and services developed in the past 5 years?___ 2.Do you consistently outperform your competition in things like customer service, quality, time to market, ROI, and profitability? ___ 3.Do you routinely solicit, listen to, and act on suggestions from people from every level and function of your organization? ___ 4.Do you encourage and stimulate interaction between departments and promote cross-functional projects? ___ 5.Have all of your improvement processes (TQM, reengineering, excellence, etc.) been as effective as you hoped? ___ 6.Do you regularly train people at all levels and in every function how to think and work together more effectively? ___ 7.Do people in your organization regularly have time available to think through situations, look at the big picture, bounce ideas off of peers, and experiment with possibilities? ___ 8.Is information freely and readily available to everyone in your organization rather than on a need-to-know-basis? ___ 9.Does your organization regularly review and update its assumptions, mission and goals and encourage everyone in the organization to do so also? ___10.Is ownership, rewards and risks, distributed widely through your organization through stock ownership plans, or profit sharing plans? ___ Total: Compare your scores with those on the next page to see how your organization rates.

BA 553: Business Process Management

BA 553: Business Process Management*Measuring Innovation (Contd.)IQ RatingsBelow 15:Your organization has a shaky grasp of innovation. If you don't take immediate action, you may find the world passing you by15 - 29:You need an innovation boost. Organize some informal groups and start talking about innovation. Look at the questions you rated the lowest and see if others agree with your assessment30 - 44:You're on the right track but you need to open your lines of communication. Ask people (all people) what would make their work life better? What tools do they need? What information do they need? Do they understand the work processes and how they fit into the whole?45 - 50:Congratulations! Yours is a rare organization. Somehow you've managed to do what everyone else is talking about doing. Keep up the good work and we'd love to talk to you to find out more about how you're doing so well.This slide and previous from http://innovationnetwork.biz/mission/quotient.html

BA 553: Business Process Management

Requirements of An Innovative EnvironmentShared visionShared valuesRisk taking, trust, open communicationsClose link between business goals and innovationCrossing departmental boundariesLocal autonomy - decentralized resource allocation and controlHaving sponsors - access to people and toolsSelf-organizing (people take the initiative)Tolerance of small beginningsPerseverenceQuestioning the status quoWillingness to experiment, willingness to learnMutual respectRecognition and rewardsBA 553: Business Process Management*

BA 553: Business Process Management

Steve Jobs on InnovationThe cure for Apple is not cost-cutting. The cure for Apple is to innovate its way out of its current predicament.As quoted inApple Confidential 2.0: The Definitive History of the Worlds Most Colorful Company (2004) by Owen W. LinzmayerInnovation has nothing to do with how many R&D dollars you have. When Apple came up with the Mac, IBM was spending at least 100 times more Its about the people you have, how youre led, and how much you get it.Fortune, Nov. 9, 1998Im convinced that about half of what separates the successful entrepreneurs from the non-successful ones is pure perseverance.From An Oral History Interview with Steve Jobs, Smithsonian Institution Oral and Video Histories, April 20, 1995Learn continually. Theres always one more thing to learn. Cross-pollinate ideas with others both within and outside your company. Learn from customers, competitors and partners. Young, J. (1988), Steve Jobs: The Journey is the RewardSometimes when you innovate, you make mistakes. It is best to admit them quickly, and get on with improving your other innovations.Ibid.BA 553: Business Process Management*

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BA 553: Business Process Management*Developing an Innovative Environment

Doesnt WorkDoes WorkInnovation within an area not on the critical path of business goalsInnovation focused on business objectivesShort-term focusLong-term focusIts a program that has an endingIts an ongoing processThe best people arent involvedInvolves all the key peopleEmphasize wordsEmphasize behaviorsStandard solutionsDifferent solutions - experimentation

BA 553: Business Process Management

BA 553: Business Process Management*Pitfalls That Hinder Innovation1.Identifying the wrong problemThis sounds simplistic, but think back to the Coca-Cola problem. When they perceived that Pepsi might take over the #1 spot, they tried to fix the problem by producing a sweeter Coke.2.Judging ideas too quicklyWeve been taught to make decisions and move on. Were promoted for our abilities to see the flaws in any idea. Therefore, we tend to rule out ideas soon as we see a defect rather than refining them to find their possibilities.3.Stopping with the first good ideaBecause problems create a tension calling for relief, we often jump at the first idea that relieves the stress. The first good idea is almost never the best one its usually just the one weve heard most often or the safest.4.Failing to get the bandit on the trainGreat ideas often dont get implemented because they threaten someone elses territory. Think about whose support is necessary to implement the idea and then find a way to get them involved.

BA 553: Business Process Management

BA 553: Business Process Management*Pitfalls That Hinder Innovation (Contd.)5.Obeying rules that dont existQuestion the assumptions youre operating under.Hey! Theyre lighting their arrows! ... Can they DO that?

BA 553: Business Process Management

Barriers to InnovationExternalGovernment and legal restrictionsEconomic uncertaintyInadequate enabling technologies InternalUnsupportive cultureLimited fundingInternal workforce issuesProcess immaturityInflexible infrastructureInsufficient access to informationBA 553: Business Process Management*This slide and the next from: Chow, Amy (2006). Supporting Innovation from the CIO, Chevron Briefing presentation.

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CIO in Some Organizations is Changing to the Chief Innovation OfficerApply technology to deliver business valueLead enterprise transformationEnable collaborative innovationBA 553: Business Process Management*CIO 2.0

BA 553: Business Process Management