Connecting the Right Dots : Maximising Innovation Value

Arcot Desai NarasimhaluAdjunct Professor, SMU LKC School Of Business[Managing Innovator, Simha Innovations Pte Ltd]

Connecting The Right Dots:Maximising Innovation Value

©CIO Academy Asia 2017

Part 1: Understanding Innovation

Part 2: What are the Dots ?

Part 3: Connecting the Dots

AGENDA


Understanding Innovation

Part 1


Competitor

sBusiness

Environment

Company

Adoption Strategy

Competitive Markets

Impact of competitors’

strategies

Technology

innovations

Incremental

Innovations

Role of technology in Business

Enhancements

Disruptive

Innovations

Market

disruptions


Technology Adoption Archetypes


Good CIOs made no difference

■ Fortune 500 from 1955 to 2016■ Only 12% of the companies remain

■ What do you think are the key factors ?

Many of these companies had good CIOs.Still the companies failed.

Could their CIOs have made a difference?

YES, IF ONLY …


They had been allowed to build an innovation culture

Innovation Culture

Committed Leadership

Shared Vision

Nurturing Environment

Empowered employees

Policies and Programs

Change Awareness


Types of innovations

Technology Innovation

Service Innovation

Product Innovation

Business Model Innovation

Process Innovation


What are the Dots?

Part 2


Goals, OBJECTIVES, Revenues and Profits

Vision is translated into Goals

Goals are not Measured

OBJECTIVES

Specific

Measurable

Achievable

Relevant

Time bound

OBJECTIVES yield innovation projects

Innovation projects generally require technology

VISION

GOAL 1 GOAL n

OBJECTIVE 1 OBJECTIVE n


Business Value of IT

INCREASE REVENUES

DECREASE COSTS

TALENT MANAGEMENT

• Improve information sharing•Assist in acquiring talent•Assist in retaining talent

• Increase sales in current markets•Get revenues from new markets•New revenue stream using technology

•Reduce wastes•Reduce development cycles•Reduce time to market cycles


Internal dots

COMPANY VISION

VALUE DISCIPLINE

LEADERSHIP STYLE

•Profit Oriented•Growth Oriented•Asset Oriented

•Goals• SMART OBJECTIVES •Values

•Customer Intimacy•Operational Excellence•Product Leadership


Innovation Strategy Models

• Respect Technical expertise• Assess best deployment scenarios• Game changing possibilities• Risk mitigation based project selection

• Customised solutions to meet local needs• Collaborative Culture across fns and geographies• Time to market based project selection• Mostly focused on incremental innovations

• Customer discovery and development• Openness to new ideas from external sources• ROI and customer priority based project selection• Advantaged products and services

NEED SEEKERS

MARKET READERS

TECHNOLOGY DRIVERS


CIO Challenges

• Service Provider Vs Visionary partner • Leading Vs Following•Competitive Vs Collaborative

• Infrastructure and informational•Transactional• Strategic

•Balancing RUN, GROW and TRANSFORM•Right staffing•Relationship with other divisions

CIO PRIORITIES

INNOVATION FOCUS

POSITIONING


Connecting the Dots

Part 3


Key questions for Innovative CIO Office

AlignmentHow aligned is the CIO’s office with the

Mission and Vision of the company?

Technology Strategy

Does the technology strategy amplify the

company’s innovation strategy choices?

Value Delivered

Does the technology strategy match

organization’s value discipline?

Readiness

Is the CIO’s group innovation ready?

Can they proactively recommend technology

enabled innovation proposals to run, grow and

transform the business?

Leadership Style

Does the technology strategy match the

leadership style?


Align the dots

VVision

D Value

Discipline

UValues

LLeadership

style

MMMarket

Maturity

CDCustomerDemands

TITechnology

Innovation

MMillennials

BT BusinessTrends

TTTechnology

Trends

NSNeed

Seekers

MR Market Readers

TWTechnology Watchers

GGoals

OOBJECTIVES

RRevenues

Profits

TRTransform

GRGrow

RU Run


Managing Innovation

INTERNAL EXTERNAL

RUN(70%)

• Core Enhancements• Regulatory updates• Incremental innovations• CIO to focus on efficiencies

• Noncore• Extranet

GROW(20%)

• Extensions to the core• New market customisation• Adjacent Innovations• Marketing innovations• CIO to assist in multisite multi

offering business

• Partners in new markets• Customer discovery • Customer development

• Intel Oregan lab Model• IBM PC Strategy• Acquisitions - IT Synergy

DBS+POSB Vs OUB+UOB

TRANSFORM(10%)

• Expansion of offerings• Disruptive Innovations• Retiring sunset products• Innovation Culture• Intrapreneurship model

• Intel lablet model• GE India model• SCB SMU iLab model• IBM Business Model• CISCO Spin-in model