A Global, Virtual, Industry-University Research Center,

Located at NC State University

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The Center for Innovation

Management Studies (CIMS)

The Leading Authority on

Innovation Management

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What is CIMS? An university-based, industry-sponsored, global research

center focused entirely on the management of innovation:

• Founded at Lehigh University in 1984 with NSF funding via I/UCRC Directorate and IRI partnership, the first funded center with such a focus on innovation

• Early 1990’s graduated I/UCRC – self-funding since

• Moved to NCSU Poole College of Management in 2000

• ~ 100 subject matter experts at 60 universities across the U.S. and 19 industry &

academic fellows

• Industry members include both large and mid size companies who depend on

their capacity to innovate

3 Levels of Membership and Benefits Available

Uses research findings to develop and provide industry with:

• Tools for assessment and benchmarking IM capacity

• Executive education and other courses to teach and strengthen IM capabilities

Together, CIMS forms an open innovation ‘ecosystem’ that helps sponsoring companies

save money and accelerate solutions to their toughest business problems.

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CIMS Mission: Help companies innovate

Most companies today are “stuck in

incrementalism”:

• Portfolios are full of more projects than they

can handle

• Proportion of projects are derivative

products -- good for “continuous

improvement” only

• Innovation is viewed as “too risky”

• Results in no competitive advantage

WHY?

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CIMS Mission: Help companies innovate

1. “De-risk” innovation for companies

2. Provide a systematic process and

comprehensive toolkit to quantify business

opportunities (CIMS System for Industrial

Innovation)

3. Invest in a powerful and reliable big data

analytics infrastructure

4. Give companies access to this infrastructure

5. Raise the discussion to the top of the

organization

HOW?

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CIMS Mission =

Industry Solutions

•Research business problems

•Convert findings:

Processes

Tools

Information

Assist firms who are in

need of improving their

capacity to manage

innovation

•Listen to companies

APPROACH

Is your company’s growth

propelled by INNOVATION?

INNOVATION IS EMBRACED BEYOND R&D.

INNOVATION IS MANAGED ACROSSED ALL FUNCTIONS.

INNOVATION IS TAUGHT AT ALL LEVELS.

INNOVATION IS MEASURED ON A REGULAR BASIS.

The leading authority on innovation management.

The Center for Innovation Management Studies (CIMS) is the nation's leading

authority for innovation management. Over 31+ years of research and proven tools for how innovation can be learned, managed and measured in your company.

See why some of the largest companies in the world are CIMS members.

How does your company measure up?

Find out be contacting CIMS to take the

FREE assessment.

On the web: cims.ncsu.edu

Call us: 919.513.0166

By email: mgrainger@ncsu.edu

A Framework to

Manage Innovation

The Center for Innovation

Management Studies (CIMS)

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NEWS FLASH: Innovation Can Be…

Some feel ‘Innovation’ is just an idea and that it cannot actually be achieved, but is rather a stroke of luck.

Stated differently,

‘It’s a pie in the sky ideal…’

Taught Learned

Practiced Measured

And…

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Innovation

can be

Managed!

But Managing innovation isn’t easy, it

takes work and dedication and a

fundamental understanding of what it is

that one is managing.

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“How To” innovate can be a difficult and complex

To get ahead of the pack, managers at leading companies are asking:

• How can we move beyond producing only incremental products and create more radical innovations?

• Which emerging technologies have the potential to be disruptive and generate breakout financial results?

• Are there adjacent markets where we can leverage existing platforms?

• What internal capabilities do we need to be successful innovators?

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A Firm’s Competitive Advantage = ‘Innovation Orientation’ of top management

and its leadership skills

Strength and character of the corporate culture

Innovative ability of the company to differentiate itself at three levels:

I. Product or Service

II. Process

III. Business Model

Development of unique resources and skills which form core competencies

Taken from Enduring Success: What top companies do differently , 2007, Bailom, Matzler, and Tschemernjak.

Impacts:

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Unfortunately many managers may be better at controlling costs

• Companies have invested considerable resources and energy in becoming leaner and more nimble

• The quest for productivity, quality and speed has launched a number of management tools: TQM, Lean, Six Sigma, Outsourcing, etc.

• Senior management is frustrated by their inability to translate gains into sustainable, profitable growth

• The products and services of these firms are indistinguishable

Bit by bit these tools have taken companies

away from viable competitive positions

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Enter the CIMS IM Framework

Management Dimensions:

• Strategy

• Organization & Culture

• Process

• Techniques & Tools

• Metrics

Core Competences:

• Idea Management

• Market Management

• Portfolio Management

• Platform Management

• Project Management

Levels:

• Firm

• Industry

• Macro-environment

Levels: Areas which innovation takes place. CIMS primary

research focus has historically been at the ‘Firm’ Level.

Core Competences: Competences are NOT processes. They

are the basic capabilities of innovation. It is management’s job

to ensure an organization learn and master each of these.

Management Dimensions: Management activities required to

build strong, durable innovation management capabilities.

Each dimension cross-cuts each IM Competence.

Note: Competences & Dimensions, when considered

holistically, provide a complete and integrated system for

helping organizations get results. Improve and Manage their

Innovation.

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Fast Facts: CIMS IM Framework

CIMS IM Framework: Based on 25+ years of CIMS research and the general IM body of

knowledge.

Created in 2005, with several NCSU Researchers and Graduate

Students, authored by Paul Mugge, reviewed and validated by

industry representatives and CIMS Fellows.

All CIMS Research, Tools, Assessments and Center Activities are

mapped back to the Framework to ensure future.

Created in a Cube - to provide a visualization model illustrating

the integrated and dependent approach.

Commonly referred to as the CIMS Cube.

Provides a systematic approach to thinking about and

managing innovation.

Approach breaks the elements down into consumable

pieces for learning, practicing, measuring, improving and

managing.

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The Basis of the “Cube”

Probably the best thing the CIMS IM Framework provides

is a common language for thinking, talking, and DOING

innovation. Professor Richard Kouri, NCSU

Points to remember:

• The Innovation Management Framework is a way to organize your thinking about how to manage innovation.

• It isn’t the only way, but it is a way.

• It is built upon an enormous body of knowledge – not just CIMS, but the current understanding of the specific skills and disciplines

that need to be mastered in order to generate breakthrough

results in business performance.

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Idea Management is the ability of a firm to effectively identify,

assimilate, and qualify information regarding new technologies

that can lead to highly differentiated products and services.

Ideas about possible market opportunities

made feasible by new technology is the

point where breakthrough innovation begins

Activities: Opportunity

Recognition, Idea Development,

Tech Mining, Boundary Spanning,

Applied Research, Collaboration

with Early Adopters/Scientific

Centers, etc.

Take a self-guided, interactive tour of the CIMS Framework, from any of the main pages of the CIMS

site by clicking on the image of the Cube!

Interact with the CIMS IM Framework

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Unsure of core competencies

No entrepreneurial culture

Lack a ‘market orientation’

Few tools, skills or little training for this

new environment

Source: Enduring Success: What top companies do differently. Bailom, Mattzler, and Tschemernjak, Palgrave Macmillan, 2007

Based on interviews with 1100 companies

spanning 11 years

Why the Reticence to Innovate …

and CHANGE?

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Organization & Culture is a key management lever for innovation and change Culture is the common language and background of how things get done. It is

developed over time as people in the organization learn to deal with problems of

adaptation and integration.

Activities: Authority Relationships, Human Resources, Skills

Acquisition and Development, (Organization);

Organization’s Basic Beliefs, Values, and Behaviors;

Leadership, Motivation, and Rewards (Culture).

Culture isn’t one aspect of the game; it is

the game. In the end, an organization is

nothing more than the collective

capability of its people to create value. Lou V. Gerstner, Making an Elephant Dance

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You need to embed strong innovation

management practices using the

strategy

processes

tools

metrics and

culture

…. of your organization.

Message to managers…

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Publications Referencing

The CIMS IM Framework

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From the Foundation of the

“Cube”, a Capability Maturity

Model was Developed

The IMMA

Innovation Management

Maturity Assessment

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Maturity Models Defined

• A maturity model can be viewed as a set of structured levels that describe how well the behaviors, practices and processes of an organization can reliably and sustainably produce required outcomes.

OR

• A maturity model can be used as a benchmark for comparison and as an aid to understanding.

In the case of the CMM, for example, the basis for comparison would be the organizations' software development processes.

For additional information: http://en.wikipedia.org/wiki/Capability_Maturity_Model#Overview

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Maturity Model Definitions

Level 1

Ad Hoc

Level 2 Defined

Level 3 Managed

Level 4

Leveraged

Level 5

Optimized

Represents the initial state. This results from organizations having no concerted focus on

innovation

When the organization makes innovation a strategic imperative and resources are

dedicated to improving the firm’s practice of innovation management

When managers’ actions reinforce the desired new behavior and

their goal is to institutionalize the new innovation business model

When synergies occur. The company seeks the input of

people and ideas outside the boundary of the firm

When the new innovation model is fully

internalized; business results are

repeatable and predictable

*Based on Carnegie Mellon Maturity Model

Five levels of maturity separate ‘Ad hoc’ companies from those that are ‘Optimized’:

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Ad Hoc • Ideas about new breakthrough products and services is thought to be the domain of R&D. When employees are encouraged to

submit their ideas, they often do not receive relief from their ‘day jobs’ to pursue them.

• Project ‘champions’ are often required to persevere and drive promising ideas to commercialization.

• Employees may be cynical and question the importance management places on innovation.

Defined • The R&D portfolio is segmented into ‘Phases’ (e.g. Opportunity field and business cases) to ensure adequate investments and

talents, are allocated to the early identification and maturation of new, promising technologies.

• Ideas are sought that address the full range of strategic issues, such as sustainability, services and solutions, etc.

• Employees are presented with idea generation tools and encouraged to formally submit ideas.

Managed • Management presides over the organization’s ‘innovation board’ (e.g. IM Team, Portfolio Team, Steering Committee); new ideas

are systematically reviewed and employees provided ‘space’ (time and resources) to develop their ideas (before entering the

formal project development process).

• Cross-functional project teams (e.g. R&D, Manufacturing, Sales & Marketing, Business Development, Finance, etc.), using standard

decision support tools, evaluate the commercial potential of the idea before substantial investments of time and capital are made.

Leveraged • The organization realizes that breakthrough ideas typically come from outside the company; it openly invites key business partners,

suppliers, and academics to participate in the innovation process; organization actively ‘in licenses’ novel new technologies to

complement its existing pipeline.

• Creative and flexible IP policies are employed to motivate open and collaborative innovation.

• Management challenges this ‘extended’ organization with the toughest business problems facing the organization; people are

recognized for ideas leading to their solution.

Optimized • The organization is ‘ambidextrous’. Separate and distinct idea management capabilities - i.e. with different project sponsors,

financial metrics, and risk management techniques - are established at the ‘front end’ of the organization’s innovation model to

manage incremental and radical ideas.

• A formal Alliance Management System is in place; all associates are treated as peers.

Idea Management Idea Management is the ability of a firm to effectively identify, assimilate, and qualify information regarding new technologies, or ideas, that can lead to highly differentiated, breakthrough products and services. Activities Include: Boundary Spanning, Technology Scanning and Evaluation, Applied Research, Collaboration with Early Adopters/Scientific Centers, etc. Idea Management begins to answer the question of competitive advantage by simultaneously examining technology and market factors. Ideas about possible market opportunities made feasible by new technologies is often the point where innovation begins.

CIMS Description of Core Competence: Idea Management

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Measuring Your Firm’s

Capacity to Innovate

CIMS’ Innovation Management

Maturity Assessment – THE IMMA

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Quick Facts: CIMS IMMA

• Provides an education of ‘What is Innovation

Management’, enables firm’s innovation strategy to be

communicated and shared across entire organization

• Multiple CIMS members are committed to an annual

review using the IMMA

• IMMA is available to and has been used by non-

members for a fee

• Initial results provided via graphical heat map display

• Participation To date:

70+ firms & divisions with global representation

10,000+ individual responses captured

Both general and industry-sector customized tool versions available

Robust demographic capabilities

Delivered in numerous languages

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Heat Map Results

are calculated using

Mathematical Mode

--- The MOST popular

response.

How the heat map is calculated and understanding

the significance of the colors

Calculating a cell’s color:

• The 1st number in each cell represents the level of maturity for that specific dimension/row

• The 2nd number in the cell represents the level of maturity for that specific competency/column

• Add the two numbers together to get the total ‘color’ along the color gradient

Example:

Strategy/Idea Management 1, 2 Count 3 spaces along gradient to reach the color depicted within the heat map

1 2 3 4 5 6 7 8 9 10

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Results are gathered

By position, function,

Location and

tenure, all

demographic fields

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Apply the CIMS IM Framework and

check out the CIMS IMMA at the

same time!

• Go to: http://cimscsa.com

• Username: ISSIP2015 (case sensitive)

• Password: cims-issip (case sensitive)

• Enter Captch Code Provided

Join Us: Wednesday October 7th 10:30am EST to see the ISSIP-CIMS IMMA results and learn about common patterns of results that occur

and what they really mean and how an organization can change

their score!