PEER INSIGHT

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PEER INSIGHT
Innovation Operating Models Understanding the
Migration Path to Organizational Effectiveness
Rotman Conference Series W Hotel, NYC November
16, 2006 Jeneanne M. Rae Co-founder and
President, Peer Insight, LLC
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Peer Insight was formed to ask BIG questions
about innovation
and generate pragmatic answers companies can
use NOW.
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(No Transcript)
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We invited some companies to help us
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Our analysis is driven by dialog (not
questionnaires) and uses a forensic approach,
based on a diverse mix of recent projects
43
different Global 500 companies analyzed
5
failed
struggling
12
4
killed before launch
too-soon-to-tell
20
destined for success
10
modest success
14
27
proven success
Source Peer Insight analysis of 92 recent
service innovation projects
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research highlights migration path to innovation
effectiveness conclusions
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Structural models of innovation observed for 92
recent service innovation projects at 43 Global
500 companies
centralized
hothouse (or incubator)
heavyweight team
specialists
generalists
BU team
BU labs
distributed
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Percent difference between most-successful and
least-successful projects
10
20
30
40
50
60
70
80
90
100
0
leadership
Foundation disciplines
Senior leadership engagement Systematic
innovation framework High-potential innovation
protocols exist Close linkage to the brand
promise Insight into technology innovation
patterns Deep insight into customer needs Robust
methods for customer experience design Innovation
supply chain to leverage outside
parties Techniques for early in-market
feedback Effective concurrent service
design Strategic use of IT platforms Enroll key
stakeholders for launch
83
17
57
35
Front-end disciplines
cX design
12
53
78
59
57
Middle- and back-end disciplines
49
8
96
10
20
30
40
50
60
70
80
90
100
0
Source Peer Insight analysis of 92 recent
service innovation projects
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research highlights migration path to innovation
effectiveness conclusions
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Companies are adopting innovation at different
rates
Distribution of innovation sophistication, all
companies
leading edge
early adopters
early majority
laggards
late majority
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How 5 key elements of success typically map to
the stages of evolution
MA Six Sigma
No Mans Land
Innovation 1.0
Innovation 2.0
Innovation 3.0
If
How
How it scales
Why
What does it mean to our customers? To our
employees? To the world? cultural
transformation (cultures)
Is innovation the way to grow profitably in the
post-Six Sigma era? search for organic
growth (experiments)
How do we find big ideas and get them off the
ground? methods and protocols (projects)
How do we make innovation easier, more
systematic, so it doesnt rely on heroic acts?
innovation operating model (programs)
leading edge
early adopters
early majority
laggards
late majority
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Google and Whole foods are examples from the
leading edge
MA Six Sigma
Innovation 1.0
Innovation 2.0
Innovation 3.0
No Mans Land
What does it mean to our customers? To our
employees? To the world? cultural
transformation (cultures)
Is innovation the way to grow profitably in the
post-Six Sigma era? search for organic
growth (experiments)
How do we find big ideas and get them off the
ground? methods and protocols (projects)
How do we make innovation easier, more
systematic, so it doesnt rely on heroic acts?
innovation operating model (programs)
leading edge
early adopters
early majority
laggards
late majority
Source Peer Insight analysis
13
research highlights migration path to innovation
effectiveness conclusions
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Some conclusions
Innovation science is evolving rapidly Customer-ce
ntricity is a key challenge The value is in
creating innovation engines We have a lot to
learn from each other
Thanks!!!!!