Innovation Capability Maturity Model Patrick Corsi Erwan Neau iste WILEY
Contents ACKNOWLEDGMENTS PREFACE LIST OF ACRONYMS xi xiii xvii PART 1. THINK UP A METHOD 1 CHAPTER 1. INNOVATION: AN UNFINISHED JOURNEY 3 1.1. The journey as the end 3 1.2. Application of maturity levels in the Innovation process 5 1.3. The effects of the knowledge society 7 1.4. What the current socioeconomic context indicates 8 1.5. Who can benefit from this book and how? 10 1.6. How to use this book? 12 CHAPTER 2. EVALUATING THE ABILITY TO INNOVATE 13 2.1. The art of change is not one-size-fits-all 13 2.1.1. Change is an awareness of a phenomenon's time derivatives 14 2.1.2. Any system reflects the maturity of its subsystems 15 2.2. A failed timing translates into zero progress 16 2.2.1. When the emergency is in conflict with the ability to innovate 16 2.2.2. Moving up the time axis leads to influencing time 17
vi Innovation Capability Maturity Model CHARTER 3. A METHOD TO PROGRESS 21 3.1. Progress in the ability to innovate requires a method 21 3.1.1. Provide a starting point for the method 25 3.2. A new basis for competitiveness contributing to a greater whole 25 3.2.1. The importance of selected vocabulary 27 3.3. Two extremes revealing a relative immaturity 28 3.4. Evolving the concept of Innovation 30 3.5. Controlling the acceleration is now the issue 31 3.6. An algebra of the dififerent levels of maturity (Innovation Capability Maturity Model) 33 3.6.1. The progression mute starts anyway from the lowest point reached 33 PART 2. A DISCOURSE ON THE METHOD 37 CHAPTER 4. Two ESSENTIAL PRELIMINARY LEVELS 0 AND 1 39 4.1. Level 0 or "we are not concerned" 39 4.1.1. What is level 0? 39 4.1.2. An example at level 0 39 4.1.3. Examples of organizations at level 0 40 4.2. The level 1 or "Do it Right First Time" 41 4.3. Two examples where Innovation at level 1 puts companies under death sentence 46 4.4. A Company that innovates only by reaction to competition or market trends (general study case) 49 4.5. SWOT matrix at level 1 50 CHAPTER 5. LEVEL 2: NOT YET MATURE 53 5.1. Level 2 or "redo and, if possible, do better" 53 5.2. The SWOT matrix at level 2 58 CHAPTER 6. LEVEL 3: MATURITY IN TRAINING 61 6.1. Level 3 or "collective efficacy" 61 6.2. SWOT matrix at level 3 69 CHAPTER 7. MASTERING LEVEL 4 71 7.1. Level 4 or "collective efficiency" 71 7.2. SWOT matrix at level 4 81
Contents vii CHAPTER 8. SUSTAINABLE MASTERY AT LEVEL 5 83 8.1. Level 5 or "dynamic, total and sustainable Innovation" 83 8.2. SWOT matrix at level 5 91 PART 3. IMPLEMENTING THE METHOD 93 CHAPTER 9. How TO INNOVATE AT LEVEL 1? 95 9.1. Introduction 95 9.2. What is an Innovation action at level 1? 96 9.3. What will these actions permit? 97 9.4. The functional dimensions of innovation activities 97 CHAPTER 10. INNOVATING AND CAPITALIZING AT LEVEL 2: RE-VISITING THE PAST FOR ENTERING LEVEL 3 103 10.1. Assembling the elements of an approach 103 10.1.1. Prerequisites for level 3 104 10.1.2. Set apart what is urgent firom what is important 105 10.2. Who is going to lead the innovation approach? 106 10.3. How can we reconcile the three business functions above? 107 10.4. The innovability diagnostic phase 109 10.4.1. Atrue story 109 10.5. Questions and issues that resonate with level 2 110 10.6. A level 3 checklist to create an innovation upon request 110 CHAPTER 11. To BUILD UPON LEVELS 1 AND 2 113 11.1. Driving innovation is a Strategie activity 113 11.2. Advice when nominating the Innovation Steering Committee 116 11.2.1. More about breakthrough or disruptive innovation 124 11.3. An example of repeated yet spiraling innovation 126 CHAPTER 12. FORGING AND STRENGTHENING SYSTEMS Tow ARD LEVEL 3 129 12.1. Preparing a culture change in the Organization 129
viii Innovation Capability Maturity Model 12.2. Starting the Innovation throughout the Company 132 12.2.1. The first actions of the Steering Committee 132 12.2.2. Launching a communication and a training policy 132 12.2.3. Demystification - Awareness - Information - Education - Action 132 12.3. Constitution of the Innovation team 133 12.3.1. The management group of the Innovation portfolio 133 12.3.2. An Innovation Information system 134 12.4. The analysis group of customer needs 134 12.4.1. Innovation communication 135 12.5. Monitoring issues and management caution with level 3 135 12.6. When knowledge management comes of age 137 12.7. Is creating excess of knowledge an issue? 138 12.8. The paradoxical passage way from level 3 to level 4 139 CHAPTER 13. MANAGING THE DEPLOYMENT AT LEVEL 4 143 13.1. Changing the method 143 13.2. The moment where management is revisited out of necessity 143 13.2.1. The case of the smartphones market 145 13.3. Further notes on management 147 13.4. When ideas become projects and projects become successes 148 13.4.1. Firm is not apyramid 149 13.4.2. "Headgear" the pyramid with the Strategie vision 149 13.4.3. At the "heart" of the pyramid is an "anticoagulant" 150 13.5. Preparing level 5 150 CHAPTER 14. SUSTAINING LEVEL 5 153 14.1. A frequent misconception on the nature of level 5 153 14.2. The two logics prevailing at maturity level 5 155 14.3. Level 5 is all about rhythm and osmosis 156 14.4. The new art of managing at level 5 157 14.4.1. First indicator: knowledge originality (KO) rapport 159
Contents ix 14.4.2. Second indicator: hierarchical control (HC) rapport 161 14.4.3. Third indicator: innovation funding (IF) reserve rapport 162 14.4.4. Fourth indicator: market surprise (MS) rapport 162 14.5. The discipline of smoothing breakthroughs 163 14.5.1. On value as created and used 164 14.5.2. Diversity often leads to misleading divisional attitudes 164 14.5.3. Innovation winning systems ("martingales") - when the approach becomes an automated and complete process 167 14.6. Why is level 5 "complex"? 171 14.7. A summary of all levels: the case of Apple through the years 174 PART 4. POSSESSING THE M ETHOD 177 CHAPTER 15. USING THE FIVE LEVELS TOPROGRESS 179 15.1. Implement a growth strategy first 179 15.2. Benefits and general challenges associated with the five maturity levels 180 15.2.1. The general benefits of the maturity level approach 182 15.2.2. General challenges related to the multilevel approach 183 15.3. The case of TMC Innovation scaled up through the five maturity level 185 CHAPTER 16. TOOL SHEETS FOR EACH LEVEL AND FOR INTER-LEVEL DYNAMICS 191 16.1. Summary sheets to assess the maturity of the innovation 191 16.1.1. Synthesis of Information from a given level 191 16.2. Create dynamics with inter-levels 194 CHAPTER 17. GOING BEYOND THE FIVE LEVELS: A NEW OPERATIONAL C APACITY 197 17.1. Opportunities brought by the five levels 197
x Innovation Capability Maturity Model 17.2. The toxic impacts of Innovation - a discourse on complexity in firms 200 17.2.1. Inno-toxic factors 200 17.2.2. The most common innovation "diseases" 202 17.3. In conclusion 203 APPENDICES 205 APPENDIX 1 207 APPENDIX 2 211 APPENDIX 3 217 APPENDIX 4 219 APPENDIX 5 231 APPENDIX 6 247 APPENDIX 7 253 APPENDIX 8 267 BIBLIOGRAPHY 277 GLOSSARY 291 INDEX 299