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Making Innovation Work: How to Manage It, Measure It, and Profit from It

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Making Innovation Work: How to Manage It, Measure It, and Profit from It Cover

 

Synopses & Reviews

Publisher Comments:

Making Innovation Work presents a formal innovation process proven to work at HP, Microsoft and Toyota, to help ordinary managers drive top and bottom line growth from innovation. The authors have drawn on their unsurpassed innovation consulting experience — as well as the most thorough review of innovation research ever performed. They'll show what works, what doesn't, and how to use management tools to dramatically increase the payoff from innovation investments. Learn how to define the right strategy effective innovation; how to structure an organization to innovate best; how to implement management systems to assess ongoing innovation; how to incentivize teams to deliver, and much more. This book offers the first authoritative guide to using metrics at every step of the innovation process — from idea creation and selection through prototyping and commercialization.

Book News Annotation:

This resource for business leaders offers practical suggestions for promoting systematic, repeatable, and managed innovation within all levels of their organizations. Three senior consultants draw upon a wealth of professional experiences as well as a review of relevant research to present a variety of innovation fostering strategies that have been proven at such top companies as Apple and Toyota. They also explain how to implement metrics in order to reward employees and promote organizational learning.
Annotation 2006 Book News, Inc., Portland, OR (booknews.com)

Book News Annotation:

This resource for business leaders offers practical suggestions for promoting systematic, repeatable, and managed innovation within all levels of their organizations. Three senior consultants draw upon a wealth of professional experiences as well as a review of relevant research to present a variety of innovation fostering strategies that have been proven at such top companies as Apple and Toyota. They also explain how to implement metrics in order to reward employees and promote organizational learning. Annotation ©2006 Book News, Inc., Portland, OR (booknews.com)

Synopsis:

"This is the book I wish I had read thirty years ago. "Making Innovation Work "is an important resource for leaders who are trying to improve innovation in their organizations. It' s crammed with examples and practical ideas that can trigger improvements in innovation, starting tomorrow!"--Lew Platt, Chairman of Boeing, former Chairman and CEO of HP, and former CEO of Kendall-Jackson Wine Estates

"Davila, Epstein, and Shelton remind us that even if the end product is rocket science, the process need not be. To the contrary, tried-and-true practices of management, process, metrics, and incentives are all that it takes to let innovation happen consistently."--Andrew Beebe, President, EnergyInnovations

""Making Innovation Work "is a fresh approach to systematically managing innovation. It integrates the innovation management literature in a way that is insightful, creative, as well as pragmatic. Davila, Epstein, and Shelton have particularly fresh insights on learning, culture, leadership, and executing change. This book will be of great help to those managers leading innovation and change."--Michael Tushman, Paul R. Lawrence MBA Class of 1942 Professor of Business Administration, Graduate School of Business, Harvard University, and author of "Managing Strategic Innovation and Change" and "Winning through Innovation"

"This impressive book offers specific techniques for driving systematic, repeatable, and managed innovation at all levels in your company. It will help you build a balanced portfolio that integrates both incremental and radical innovations--so you can sustain growth indefinitely, instead of flaming out."--Guerrino de Luca, President and CEO, Logitech

""MakingInnovation Work "provides an excellent roadmap to innovation: its various facets, why each facet matters, and how they can be enhanced--separately and collectively--in any organization. It also debunks a few tenacious myths, starting with the oft-heard excuse that innovation is an inherently unpredictable and uncontrollable process. Based on their vast research and consulting expertise, Davila, Epstein, and Shelton convincingly argue that innovation performance is indeed controllable and improvable, and they provide a powerful framework to do so. If you' re interested in improving your organization' s innovation performance and potential, this book will tell you how. If you' re not, it will tell you why you should be!"--Jean-Francois Manzoni, Professor of Leadership and Organizational Development, IMD (The International Institute for Management Development, Lausanne, Switzerland)

""Making Innovation Work "is an informative and practical overview of the managerial side of innovation, showing that payoffs come when innovation projects are carefully conceived and measured." --Rosabeth Moss Kanter, Harvard Business School, author of "Confidence"

""Making Innovation Work "explains why companies lose their ability to innovate and how they can get it back. And though most organizations aren' t ' wired' for innovation, the authors make it clear that sustained innovation is not a ' nice to have' --it' s mandatory for survival. Effective execution of innovation is one of the major determinants between winners and the losers and of who survives and who disappears from the scene. This book picks up where other books on the subject fall short; it shows youhow to make it happen." --Ladd Greeno, President and CEO, AgION Technologies

"An excellent overview on the importance of innovation and how to manage it successfully; must-reading for executives who wish to break out of the commodity trap."--Robert S. Kaplan, Marvin Bower Professor of Leadership Development at Harvard Business School and co-developer of the balanced scorecard

""Making Innovation Work "is a must-read for would-be innovators at all levels. The seven practical Innovation Rules lay out the things you need to know and show you how to put them to use in your organization, no matter what the industry. Even self-diagnosed ' good' innovators will learn how to take their companies to the next level."--Howie Rosen, VP, Commercial Strategy, Gilead Sciences, Inc., former CEO, Alza

"Any startup that cannot effectively manage what the authors describe as the natural tension between creativity and delivering value from creativity is not likely to survive. "Making Innovation Work "shows how to manage creativity and value creation together without compromising either one. It' s must-reading." --Arthur L. Chait, President and CEO, EoPlex Technologies

""Making Innovation Work "will help you think about innovation in new and extremely productive ways. From the seven ' innovation rules' at the beginning of this book to the powerful execution advice for leaders at the end, this book is replete with ideas you' ll actually use. If you' re ready to get past the cliches and conventional wisdom about innovation, read it--the sooner, the better." --Alex Vieux, CEO of Red Herring

To compete effectively, you must innovate: Not just once, but consistently, inall your products, services, and business functions. But, profitable innovation doesn' t just "happen." It must be managed, measured, executed on--and few companies do that well. Making Innovation Work offers the first real solution: A start-to-finish process for driving growth from innovation.

The authors draw on unsurpassed innovation, consulting experience, and a thorough review of innovation research. Their techniques have been proven at top companies ranging from Apple and GE to Toyota. In this book, they demonstrate what works, what doesn' t, and how to use all your management tools to maximize the value of your innovation investments.

You' ll learn how to define effective strategies and organizational structures for innovation, manage innovation more successfully, incent teams to deliver, and infuse metrics throughout every phase of the innovation process. Simply put, Making Innovation Work takes the mystery out of profitable innovation, showing how to lead it, track it, incent it, and get more of it.

Leading innovation

Defining innovation strategy, designing portfolios, and encouraging value creation

Integrating innovation and business strategy

Matching innovation to your overall business strategy

Balancing creativity and value capture Generating successful new ideas that drive maximum ROI

Weaving innovation into the fabric of business

Making innovation truly integral to your company' s business mentality

Neutralizing organizational "antibodies"

Preventing your company from killing off its best new ideas

Building innovation networks

Leveraging innovation resources both inside and outside the organization

Measuring andrewarding innovation

Implementing the right metrics and the right incentives to drive results

(c) Copyright Pearson Education. All rights reserved.

Synopsis:

Ordinary managers can benefit from the authors' innovation consulting experience to learn what works, what doesn't work, and how to use all of their management tools to dramatically increase the payoff from their innovation investments.

About the Author

Tony Davila is a faculty member of Stanford's Graduate School of Business. Building on his doctoral work at the Harvard Business School, he works with both large industrial companies and Silicon Valley startups to design management control and performance measurement systems that drive innovation. He has been published in Harvard Business Review, Research Policy, and other leading journals.

Marc J. Epstein has been a visiting professor and Hansjoerg Wyss visiting scholar at Harvard Business School and a distinguished research professor at Rice University's Jones Graduate School of Management. He has been a senior consultant to leading corporations and governments for over twenty-five years, specializing in strategy implementation, innovation, governance, accountability, and performance metrics. Epstein has also served as a professor at Stanford Business School and INSEAD.

Robert Shelton is managing director of Navigant Consulting's Innovation practice. His client list is a "who's who" of innovative Fortune 500s, including leaders in the electronics, energy, health care, automotive, consumer goods, software, and aerospace industries. Shelton has served as vice president and managing director with Arthur D. Little and as managing director of the Technology and Innovation Management practice at SRI International (formerly Stanford Research Institute). His work has been referenced in media ranging from The Wall Street Journal to CNN Financial News.

© Copyright Pearson Education. All rights reserved.

Table of Contents

Introduction.

1. Driving Success: How You Innovate Determines What You Innovate.

    Innovation Is the Power to Redefine the Industry.

    The Innovation Imperative: Driving Long-Term Growth in Top and Bottom Lines.

    How to Make Innovation Work: How You Innovate Determines What You Innovate.

    The Rules of Innovation.

      1. Exert Strong Leadership on Innovation Direction and Decisions.

      2. Integrate Innovation into the Business Mentality.

      3. Match Innovation to Company Strategy.

      4. Manage the Natural Tension Between Creativity and Value Capture.

      5. Neutralize Organizational Antibodies.

      6. Cultivate an Innovation Network Beyond the Organization.

      7. Create the Right Metrics and Rewards for Innovation.

    Summary: The Innovation Company.

2. Mapping Innovation: What Is Innovation and How Do You Leverage It?

    A New Model of Strategic Innovation.

    Business Model Change.

      Value Proposition.

      Supply Chain.

      Target Customer.

    Technology Change.

      Product and Service Offerings.

      Process Technologies.

      Enabling Technologies.

    Three Types of Innovation.

      Incremental Innovation.

      Semi-Radical Innovation 

      Radical Innovation.

      Ersatz Radical Innovation.

      Disruptive Technologies.

    Innovation Model and the Innovation Rules.

3. Choosing Your Destiny: How to Design a Winning Innovation Strategy.

    Choosing the Right Strategy.

    Play-to-Win or Play-Not-to-Lose Strategies.

      Play-to-Win Strategy.

      Play-Not-to-Lose Strategy.

    Too Much of a Good Thing.

    Clearly Defined Innovation Strategy Drives Change.

    Do You Select an Innovation Strategy?

      Internal Factors.

      External Factors.

    Risk Management and Innovation Strategy.

    Innovation Strategy: The Case of the Pharmaceutical Industry.

      Attempts to Solve the Innovation Problem.

      Changing the Innovation Approach.

    Strategy and the Innovation Rules.

4. Organizing for Innovation: How to Structure a Company for Innovation.

    Organizing for Innovation.

    Developing an Internal Marketplace for Innovation.

    Balancing Creativity and Value Creation.

    The Balance Changes as the Organization Matures.

    Five Steps to Balancing Creative and Commercial Markets.

    Outsourcing Innovation.

      Making Good Use of Your Partners.

    Integrating Innovation Within the Organization.

      The Value of Networks and Innovation Platforms.

      The Corporate Venture Capital Model.

      The Ambidextrous Organization.

    The Leadership Role.

    Organization and the Innovation Rules.

5. Management Systems: Designing the Process of Innovation.

    Systems and Processes Make Things Happen.

    The Objectives of Well-Designed Innovation Systems.

    Choosing and Designing Innovation Systems.

      Systems for Ideation: Seeing the Gaps.

      Structured Idea Management.

      Experimentation.

      Prototyping.

      Making Deals.

      Innovation That Fits.

    Management Systems Comparison.

    Electronic Collaboration.

    Management Systems and the Innovation Rules.

6. Illuminating the Pathway: How to Measure Innovation.

    To Measure or Not to Measure?

      What Gets Measured Gets Done.

      The Three Roles of a Measurement System.

    A Balanced Scorecard for Measuring   Innovation.

      The Business Model for Innovation.

      Inputs, Processes, Outputs, and Outcomes.

      From the Business Model to the Measurement System.

    Designing and Implementing Innovation Measurement Systems.

      Measures for Ideation.

      Measuring Your Innovation Portfolio.

      Measuring Execution and Outcomes of Innovation.

      Measuring Sustainable Value Creation.

    The Barriers to Effective Performance Measurement.

    Measurement and the Innovation Rules.

7. Rewarding Innovation: How to Design Incentives to Support Innovation.

    The Importance of Incentives and Rewards.

    Motivation.

      Different Strokes for Different Folks.

    A Framework for Incentive Systems’ Design.

    Setting Goals for Measuring Performance.

      Specific Versus Broad Goals.

      Quantitative Versus Qualitative Goals.

      Stretch Versus Expected Goals.

      Success-Driven Versus Loss-Avoidance Goals.

    Performance Evaluation and Incentive Contracts.

      Team Versus Individual Rewards.

      Subjective Versus Objective Evaluation.

      Relative Performance Versus Absolute Performance Evaluation.

    Incentive Contracts.

      Expected Level of Pay.

      The Shape of the Pay-Performance Relationship.

      Timing Incentives.

      Delivery of Compensation.

    Key Considerations in Designing Incentives Systems for Innovation.

      The Danger of Over Use.

      The Negative Effect on Intrinsic Motivation.

      Fear, Failure, and Fairness.

    Incentives and Rewards, and the Innovation Rules.

8. Learning Innovation: How Do Organizations Become Better at Innovating?

    The Importance of Learning.

    A Model of Learning.

      Learning to Act.

      Learning to Learn.

    Learning Systems for Innovation.

      Systems for Delivering Value.

      Systems for Refining the Current Model.

      Systems for Building Competencies.

      Systems for Crafting Strategy.

    How to Make Learning Work in Your Organization.

      Knowledge and Ignorance Management.

      The Project Roadmap.

      Failures as Part of the Process.

      Learning Histories.

    The Dynamic Nature of Innovation Strategy.

      The Technology Stage.

      The Performance Stage.

      The Market Segmentation Stage.

      The Efficiency Stage.

      The Complementarities Stage.

    Learning and the Innovation Rules.

9. Cultivating Innovation: How to Design a Winning Culture.

    How Culture Affects Innovation.

    Is Innovation the New Religion?

    The Danger of Success.

    Organizational Levers of an Innovative Culture.

      The Levers of an Innovative Culture.

      Legends and Heroes.

      The Physical Environment.

    Different Country Cultures Breed Different Innovation Cultures.

    People and Innovation.

      Recruiting to Build an Innovative Organization.

      Turn Your Recruitment Strategy Upside-Down!

    The Role of Senior Management.

      Leading Innovation.

      The Role of the CEO.

    Culture and the Innovation Rules.

10. Conclusion: Applying the Innovation Rules to Your Organization.

    Combining Creativity with Commercial Savvy.

    Smart Execution.

    The Role of Leadership.

      Leadership Must Define the Innovation Strategy and Link It to the Business Strategy.

      Innovation Must Be Aligned with the Company Business Strategy, Including Selection of the Innovation Strategy.

      Leadership Must Define Who Will Benefit from Improved Innovations.

    Diagnostics and Action.

      Stage-Gate Systems.

      The Venture Capital Model.

      The Technology Innovation Model.

      Time-Driven Systems.

    Organizing Initiatives.

      Fine-Tuning.

      Redirection/Revitalization.

    Generating Innovation Value.

Endnotes.

Bibliography.

Index.

Product Details

ISBN:
9780131497863
Subtitle:
How to Manage It, Measure It, and Profit from It
Author:
Davila, Tony
Author:
Epstein, Marc
Author:
Epstein, Marc J.
Author:
Shelton, Robert
Author:
Cram101 Textbook Reviews
Publisher:
Academic Internet Publishers
Subject:
Management
Subject:
Industrial Management
Subject:
Strategic planning
Subject:
Management - General
Subject:
Systems & Planning
Subject:
Technological innovations -- Management.
Subject:
business, business plans
Subject:
Education-General
Copyright:
Publication Date:
July 2005
Binding:
Hardback
Grade Level:
General/trade
Language:
English
Pages:
368
Dimensions:
9.27 x 6.5 x 1.13 in 626 gr

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Reference » Science Reference » Technology

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Product details 368 pages Wharton School Publishing - English 9780131497863 Reviews:
"Synopsis" by , "This is the book I wish I had read thirty years ago. "Making Innovation Work "is an important resource for leaders who are trying to improve innovation in their organizations. It' s crammed with examples and practical ideas that can trigger improvements in innovation, starting tomorrow!"--Lew Platt, Chairman of Boeing, former Chairman and CEO of HP, and former CEO of Kendall-Jackson Wine Estates

"Davila, Epstein, and Shelton remind us that even if the end product is rocket science, the process need not be. To the contrary, tried-and-true practices of management, process, metrics, and incentives are all that it takes to let innovation happen consistently."--Andrew Beebe, President, EnergyInnovations

""Making Innovation Work "is a fresh approach to systematically managing innovation. It integrates the innovation management literature in a way that is insightful, creative, as well as pragmatic. Davila, Epstein, and Shelton have particularly fresh insights on learning, culture, leadership, and executing change. This book will be of great help to those managers leading innovation and change."--Michael Tushman, Paul R. Lawrence MBA Class of 1942 Professor of Business Administration, Graduate School of Business, Harvard University, and author of "Managing Strategic Innovation and Change" and "Winning through Innovation"

"This impressive book offers specific techniques for driving systematic, repeatable, and managed innovation at all levels in your company. It will help you build a balanced portfolio that integrates both incremental and radical innovations--so you can sustain growth indefinitely, instead of flaming out."--Guerrino de Luca, President and CEO, Logitech

""MakingInnovation Work "provides an excellent roadmap to innovation: its various facets, why each facet matters, and how they can be enhanced--separately and collectively--in any organization. It also debunks a few tenacious myths, starting with the oft-heard excuse that innovation is an inherently unpredictable and uncontrollable process. Based on their vast research and consulting expertise, Davila, Epstein, and Shelton convincingly argue that innovation performance is indeed controllable and improvable, and they provide a powerful framework to do so. If you' re interested in improving your organization' s innovation performance and potential, this book will tell you how. If you' re not, it will tell you why you should be!"--Jean-Francois Manzoni, Professor of Leadership and Organizational Development, IMD (The International Institute for Management Development, Lausanne, Switzerland)

""Making Innovation Work "is an informative and practical overview of the managerial side of innovation, showing that payoffs come when innovation projects are carefully conceived and measured." --Rosabeth Moss Kanter, Harvard Business School, author of "Confidence"

""Making Innovation Work "explains why companies lose their ability to innovate and how they can get it back. And though most organizations aren' t ' wired' for innovation, the authors make it clear that sustained innovation is not a ' nice to have' --it' s mandatory for survival. Effective execution of innovation is one of the major determinants between winners and the losers and of who survives and who disappears from the scene. This book picks up where other books on the subject fall short; it shows youhow to make it happen." --Ladd Greeno, President and CEO, AgION Technologies

"An excellent overview on the importance of innovation and how to manage it successfully; must-reading for executives who wish to break out of the commodity trap."--Robert S. Kaplan, Marvin Bower Professor of Leadership Development at Harvard Business School and co-developer of the balanced scorecard

""Making Innovation Work "is a must-read for would-be innovators at all levels. The seven practical Innovation Rules lay out the things you need to know and show you how to put them to use in your organization, no matter what the industry. Even self-diagnosed ' good' innovators will learn how to take their companies to the next level."--Howie Rosen, VP, Commercial Strategy, Gilead Sciences, Inc., former CEO, Alza

"Any startup that cannot effectively manage what the authors describe as the natural tension between creativity and delivering value from creativity is not likely to survive. "Making Innovation Work "shows how to manage creativity and value creation together without compromising either one. It' s must-reading." --Arthur L. Chait, President and CEO, EoPlex Technologies

""Making Innovation Work "will help you think about innovation in new and extremely productive ways. From the seven ' innovation rules' at the beginning of this book to the powerful execution advice for leaders at the end, this book is replete with ideas you' ll actually use. If you' re ready to get past the cliches and conventional wisdom about innovation, read it--the sooner, the better." --Alex Vieux, CEO of Red Herring

To compete effectively, you must innovate: Not just once, but consistently, inall your products, services, and business functions. But, profitable innovation doesn' t just "happen." It must be managed, measured, executed on--and few companies do that well. Making Innovation Work offers the first real solution: A start-to-finish process for driving growth from innovation.

The authors draw on unsurpassed innovation, consulting experience, and a thorough review of innovation research. Their techniques have been proven at top companies ranging from Apple and GE to Toyota. In this book, they demonstrate what works, what doesn' t, and how to use all your management tools to maximize the value of your innovation investments.

You' ll learn how to define effective strategies and organizational structures for innovation, manage innovation more successfully, incent teams to deliver, and infuse metrics throughout every phase of the innovation process. Simply put, Making Innovation Work takes the mystery out of profitable innovation, showing how to lead it, track it, incent it, and get more of it.

Leading innovation

Defining innovation strategy, designing portfolios, and encouraging value creation

Integrating innovation and business strategy

Matching innovation to your overall business strategy

Balancing creativity and value capture Generating successful new ideas that drive maximum ROI

Weaving innovation into the fabric of business

Making innovation truly integral to your company' s business mentality

Neutralizing organizational "antibodies"

Preventing your company from killing off its best new ideas

Building innovation networks

Leveraging innovation resources both inside and outside the organization

Measuring andrewarding innovation

Implementing the right metrics and the right incentives to drive results

(c) Copyright Pearson Education. All rights reserved.

"Synopsis" by , Ordinary managers can benefit from the authors' innovation consulting experience to learn what works, what doesn't work, and how to use all of their management tools to dramatically increase the payoff from their innovation investments.

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