Step-By-Step Guide

The following is a detailed step-by-step guide on how to implement such processes with refer­ence to the relevant practices and tools.

Process 1: Getting Started and Gap Analysis

It is important before starting any change to determine the starting and desired positions. When it comes to implementing IM this involves ascertaining the state of the innovation process and its ability to accommodate business present and future needs. Though undertaking a gap analysis of the innovation process as it stands is peculiar to every organization, the exercise should at least incorporate the following steps.

Step 1: Discovering the Innovation Portfolio.

1.       Determine the number of innovation projects being managed across the whole organi­zation.

2.       Map these projects in relation to their level of innovativeness, strategic fit, estimated costs, expected returns and calculated risks (see also about secure investing).

3.       Collect information regarding time to market and actual returns of past projects, and desired time to market needed to attain the desired competitive position.

4.       Consider the efficiency of allocation and use of financial and other tangible resources.

5.       Examine allocation of human resources, whether human resources are overcommit-ted/underutilized, and the way they are being tapped.

6.       Determine how talent, skills, and competence are arranged in the organization and the ease of finding the right people and forming the right team to manage the innovation project.

Step 2: Examining the Idea Generation Process and Culture.

1.       Include a number of questions in the survey mentioned under Process 2 in the previous chapter under cultural audits to uncover the cultural values that the organization has pro­moted, promotes, and needs to change or confirm to foster innovation.

2.       Include in the culture modification process steps to incorporate such cultural values designed to make innovation a way of doing business; in particular, values that tolerate failure as part of experimentation, encourage risk taking, and empower employees to pursue challenging projects.

3.       Map where new ideas come from in the organization and the processes and criteria used to collect, filter and evaluate them.

4.       Record the number of ideas received on a periodic basis, implementation rates and how that affects employee morale and innovative activity.

5.       Collect information from the venture capital unit, if any, on the projects pursued based on ideas received from employees.

Step 3: Determine Where to Start.

1.      Prepare a clear account of the "is" and "should" positions based on the organization's business objectives (e.g., reduction of time to market, increase of employees' idea submission and implementation, or simply moving toward adopting innovation as a way of doing business). This also can be determined by reference to defined compet­itive positions.

2.      Based on the preceding results determine which is the most strategically important business objective that needs immediate attention. This would enable prioritizing imple­mentation of IM practices to address the immediate business needs.

3.      Use Exhibit 12.2 to find the required business focus to satisfy the immediate business needs, identified under number 2, and proceed with implementing the corresponding processes first. Though a comprehensive IM program should cover all the components encapsulated in Exhibit 12.2, it is important for resource allocation purposes to phase out such implementation according to strategic needs.