Managing Innovation in the Digital World

Esther Baldwin is a Solutions Architect and Artificial Intelligence Strategist at Intel Corporation. She is an Eisenhower Fellow from Liverpool, U.K. Esther has enjoyed leadership and technical roles including three assignments to China and has built data centers in the UK, Japan and USA. She has served as technical assistant to the Vice President of Intel Research and Future Technologies Research and Director of Innovation for Intel Semiconductor Dalian, China and was responsible for building an innovation culture, taking ideas to prototype in months, and conceived and led the first factory machine learning for predictive maintenance project. Esther designs workshops on Innovation and AI helping companies identify relevant AI uses and "get started". She was an Executive Committee member for the American Chamber of Commerce NE China where she lectured on Innovation Science to local members and universities. Esther served on the National Advisory Council for Innovation and Entrepreneurship (NACIE 3.0) for two United States Secretaries of Commerce and was an Economic Advisor for the Jieyang, Guangdong government. She obtained an MSc in International Management (International MBA) with Mandarin from the Thunderbird School of Global Management, and has aa BSc double major in Design Engineering Technology (College of Engineering), and Design (College of Fine Arts), Brigham Young University. Martin Curley is Professor of Innovation at Maynooth University and Director of the Digital Health Ecosystem at the Innovation Value Institute at Maynooth University, Ireland. Most recently Martin was Chief Information Officer and Director of Digital Transformation for Ireland’s National Health Service (HSE) and previously was Senior Vice President at Mastercard and head of Global Digital Practice. As Chair of the European Commission Open Innovation Strategy and Policy Group he co-created the breakthrough Open Innovation 2.0 paradigm. He has previously been Vice President, Senior Principal Engineer and Director of Intel Labs Europe as well as Global Director of IT Innovation at Intel Corporation. He is the author of eight books on innovation, digital and entrepreneurship. Recognized as a transcendental innovation leader, he has delivered digital and innovation executive education across the world. He is the co-founder of the Innovation Value Institute and the creator of the IT Capability Maturity Framework used by hundreds of firms globally to improve the value they create from IT. He has a BE in Electronic Engineering and a Masters in Business Studies from University College Dublin and a PhD in Information Technology from Maynooth University.

• 1 Introduction 1 The Importance of Innovation 2 Innovation’s Virtuous Circle 3 Three Types of Innovation 4 Radical Innovation 4 Incremental Innovation 5 Innovation by Reapplication 5 Innovation Need Not be Wholescale Invention 5 Innovation is Not Just About Products and Services 7 Investment in Innovation 7 Value Creation Opportunities 9 Open Innovation and the Drive for Best End Value 10 Innovation Shifts in Business Models 12 IT Innovation: A Two-Part Process 12 Creation 12 Adoption and Diffusion 13 Innovation as a Lateral Process 16 Barriers to Innovation 17 In This Book ... 17 SSummary 19 　　 Business Value Management 21 The Importance of a Common Language 22 The Cost of Miscommunication 23 Business Value Dials 25 Business Value and IT Efficiency 27 Building Innovation Business Cases 29 IT Innovation Business Cases 29 Portfolio Management 31 Post-Implementation Review 32 Summary 32 IT Innovation 33 The Special Case of IT Innovation 34 The Six Parallel Vectors of IT Innovation 35 Vision 36 From Vision to Prototype 38 Business Case 40 Business Process Change 42 Organizational Change 42 Customer or Societal Change 43 Summary 47 Systemic Innovation 49 Managing Systemic Innovation 50 Systemic Innovation 52 Capability Maturity Framework for Systemic Innovation 54 Ad Hoc 54 IT Innovation CMF Basic Level of Maturity 55 IT Innovation CMF Intermediate Level of Maturity 55 IT Innovation CMF Advanced Level of Maturity 58 IT Innovation CMF Optimizing Level of Maturity 60 Innovation Excellence and Operations Excellence 64 Systemic Innovation Imperatives 64 Summary 65 　 Innovation Capability 67 IT Innovation Project Stages 68 Ideate 69 Brainstorming 69 Lateral Thinking 69 TRIZ 71 Ethnographic Research 71 Prototype 73 Concept Cars 73 Usage Models 74 User-Centered Design 74 Refine 75 Outsource 76 Open Source 76 Software as a Service 76 Open Innovation 77 Diffuse 77 Web 2.0 Internet 77 Mashups 79 Crowd Sourcing 79 Copy-Exactly 80 Other Diffusion Techniques 80 Summary 81 Innovation Assessment 83 Intel’s Innovation Self-Assessment Process 84 Assessment Teams 84 The Assessment Process 84 The Self-Assessment Framework 85 Section 1. Management Commitment 86 Section 2. Business Responsibility 88 Section 3. Innovation Competency 89 Section 4. Enterprise Values 90 Section 5. Innovation Support 92 Section 6. Impact of Innovation 92 Scoring the Self Assessment 93 Developing an Action Plan 96 Moving to the Next Maturity Level 98 Management Commitment 99 　 Business Responsibility 101 Innovation Competency 103 Enterprise Values 105 Innovation Support 106 Impact of IT Innovation 108 The Importance of Innovation Assessment 110 Summary 111 Innovation Pipeline Management 113 The IT Innovation Pipeline 114 Pipeline Stages 115 Pipeline Value Paths 116 Managing the IT Innovation Pipeline 117 Step 1: Design the Pipeline 118 Step 2: Capture Innovation Ideas 120 Step 3: Create and Populate a Registration System 121 Step 4: Choose a Vetting Procedure 122 Step 5: Manage the Innovation Project Portfolio 123 Step 6: Establish and Use Value Realization Metrics 125 Improving Yield for IT Innovations 126 Tactics for Improving Yield 127 Sample Results 127 Intel Innovation Index 128 Summary 129 Diffusion of IT Innovation 131 Diffusion Fundamentals: How Innovations are Adopted 132 Categories of Adopters 132 The Chasm 133 Chasm Two 134 The S-curve Perspective 135 Metcalfe’s Law 137 Gladwell’s Tipping Point 138 Friedman’s Flat World 139 Diffusion Fundamentals: Lessons Learned 140 Diffusion of IT Innovation 141 Assets, Methods, Skillsets 142 Develop Infrastructure 142 　 Prepare Technical Support 144 Marketing Innovations 145 One Final Ingredient for Success 147 Summary 147 Launching Systemic IT Innovation 149 Gaining Management Commitment 150 Create and Communicate a Vision 150 Develop an Innovation Strategy 151 Measure Business Value 152 Developing Innovation Capabilities 153 Training 153 Reinforcing Innovation 154 Innovation Centers 155 Creation and Diffusion 156 Intel’s Experience 158 Innovation Enablers and Inhibitors 158 Systemic Innovation 159 Culture and Innovation 160 Summary 160 Stay in touch 161 Appendix A Case Studies in IT Innovation 163 Wireless Westminster, Part 1 164 Vision 164 The Prototype 165 The Business Case 167 Wireless Westminster, Part 2 169 Business Process Changes 169 Organizational Changes 170 Societal and Customer Changes 170 Vision Revisited 170 Epilogue 171 Innovative eSupport at Intel, Part 1 172 A Vision is Born 173 Formalizing the Effort 173 Calling for the Question 174 Innovative eSupport at Intel, Part 2 175 　 Appendix B Innovation Assessment Tools 179 Intel’s Self-Assessment Tool 180 Section 1. Management Commitment 180 Section 2. Business Responsibility 182 Section 3. Innovation Competency 184 Section 4. Enterprise Values 185 Section 5. Innovation Support 189 Section 6. Impact of Innovation 190 Appraising Innovation Performance 191 References 193 Index 199