c02adb46219521279deaf0be4c608d81.ppt
- Количество слайдов: 38
Teleconference Innovation Networks: Progress Report 2006 Navi Radjou Vice President Forrester Research July 12, 2006. Call in at 12: 55 p. m. Eastern Time
Theme Early adopters across industries and regions are profiting from “Global Innovation Networks” — a new business model that allows firms to innovate faster, cheaper, and better. 2 Entire contents © 2006 Forrester Research, Inc. All rights reserved.
Agenda • Topic Overview: Global Innovation Networks • What benefits do early adopters receive? • What challenges do early adopters face? • How can R&D, marketing, and IT help operationalize global Innovation Networks? • Q&A 3 Entire contents © 2006 Forrester Research, Inc. All rights reserved.
Agenda • Topic Overview: Global Innovation Networks • What benefits do early adopters receive? • What challenges do early adopters face? • How can R&D, marketing, and IT help operationalize global Innovation Networks? • Q&A 4 Entire contents © 2006 Forrester Research, Inc. All rights reserved.
Back in June 2004: 5 Entire contents © 2006 Forrester Research, Inc. All rights reserved.
The innovation imperative Innovation market drivers: Customers • Generation Y • Aging population • Atkins dieters 6 Competition • Shorter product lifecycles • BRIC countries (Brazil, Russia, India, China) Entire contents © 2006 Forrester Research, Inc. All rights reserved. Compliance • Europe’s WEEE • Sarbanes-Oxley, BASEL II
Over the next 50 years, Brazil, Russia, India, and China could become a much larger force in the world economy. 7 Entire contents © 2006 Forrester Research, Inc. All rights reserved.
June 2006, Trends “Innovation Networks: Global Progress Report 2006” Firms must cast a wider net to source innovations © 2006, Forrester Research, Inc. Reproduction Prohibited
A new approach to innovation Old model New model S T 9 Entire contents © 2006 Forrester Research, Inc. All rights reserved.
The “what” — global Innovation Networks • Global Innovation Networks is a new market structure (ecosystem) in which: » Firms seamlessly weave internally and externally available invention and innovation services to optimize the profitability of their products, services, and business models. 10 Entire contents © 2006 Forrester Research, Inc. All rights reserved.
Global Innovation Networks T Inventor 11 S Transformer Financier Entire contents © 2006 Forrester Research, Inc. All rights reserved. Broker
June 2006, Trends “Innovation Networks: Global Progress Report 2006” The “Who” — Roles In A Global Innovation Network © 2006, Forrester Research, Inc. Reproduction Prohibited
Agenda • Topic Overview: Global Innovation Networks • What benefits do early adopters receive? • What challenges do early adopters face? • How can R&D, marketing, and IT help operationalize global Innovation Networks? • Q&A 13 Entire contents © 2006 Forrester Research, Inc. All rights reserved.
Fast forward to 2006: 14 Entire contents © 2006 Forrester Research, Inc. All rights reserved.
20+ Fortune 500 firms have deployed and benefited from global Innovation Networks • 3 M • Esselte • IBM • BASF • AMD • Procter & Gamble • Best Buy • Norwich Union • Caterpillar • Bharti Airtel (Tele-Ventures) • BP • Eli Lilly • Reuters • BT • Whirlpool • Apple • SAP • General Electric • Boeing • Dell • Cargill 15 Entire contents © 2006 Forrester Research, Inc. All rights reserved.
Global Innovation Networks in action: Procter & Gamble P&G 16 Entire contents © 2006 Forrester Research, Inc. All rights reserved.
How does Procter & Gamble benefit from Innovation Networks? • Boosted new product hit rate to more than 90%, up from 70% in 2001. • Profitability per R&D employee has skyrocketed. • Since 2000: » Sales revenues have grown 40%. » Profits have doubled. » Market cap has doubled. 17 Entire contents © 2006 Forrester Research, Inc. All rights reserved.
Global Innovation Network in action: BT • Opened labs in emerging markets like Malaysia. • Innovation brokers in India, China, Japan, UK, and Silicon Valley to source local technologies. • Licensing IP to external go-to-market partners (e. g. , “ARMS” software to Infosys). • Partnering with global VC firms to spin off promising technologies as startups. 18 Entire contents © 2006 Forrester Research, Inc. All rights reserved.
How does BT benefit from Innovation Networks? • Externally sourced inventions generated nearly £ 500 million in new product and service revenues since 2002. • IP licensing generates dozens of millions of pounds each year. • Starting in 2006, revenues generated from licensing and commercializing its own inventions — using external transformers — will cover a significant proportion of BT’s annual R&D spend. 19 Entire contents © 2006 Forrester Research, Inc. All rights reserved.
Global Innovation Network in action: Norwich Union Progressive Norwich Union 1998: Progressive invents “Pay-As-You-Drive” (PAYD) model. 2002: Progressive licenses PAYD to Norwich Union (UK). 2003– 2004: Norwich pilots PAYD in UK — with IBM, Orange. 2005: Norwich launches branded PAYD in UK. 20 Entire contents © 2006 Forrester Research, Inc. All rights reserved.
How does Norwich Union benefit from Innovation Networks? • PAYD, launched in 2005, won thousands of new clients, increasing Norwich’s UK market share (there were 100, 000 new subscribers by the end of 2006). • Its annual profit increased 23% in 2005. 21 Entire contents © 2006 Forrester Research, Inc. All rights reserved.
Global Innovation Networks: market benefits Share risk • Costly efforts • Disruptive innovations • E. g. , new drugs 22 Curb talent shrinkage • Western firms’ talent shortage • Leverage BRIC skills Address emerging markets • Address BRIC consumers Entire contents © 2006 Forrester Research, Inc. All rights reserved. Reduce new product and service failures Increase market responsiveness • Leverage • Competitor feedback threats from • New market customers demands (embedded in Innovation Networks)
Agenda • Topic Overview: Global Innovation Networks • What benefits do early adopters receive? • What challenges do early adopters face? • How can R&D, marketing, and IT help operationalize global Innovation Networks? • Q&A 23 Entire contents © 2006 Forrester Research, Inc. All rights reserved.
June 2006, Trends “Innovation Networks: Global Progress Report 2006” CEOs Face Internal, External Hurdles In Implementing Innovation Networks © 2006, Forrester Research, Inc. Reproduction Prohibited
June 2006, Trends “Innovation Networks: Global Progress Report 2006” CEOs Face Internal, External Hurdles In Implementing Innovation Networks © 2006, Forrester Research, Inc. Reproduction Prohibited
Senior execs must help firms shift from vertically integrated value chains to global Innovation Networks Company A R&D Mktg T Company B Inventor Transformer $ Company C Financier Broker Sales IT Company D Ops Company E
Agenda • Topic Overview: Global Innovation Networks • What benefits do early adopters receive? • What challenges do early adopters face? • How can R&D, marketing, and IT help operationalize global Innovation Networks? • Q&A 28 Entire contents © 2006 Forrester Research, Inc. All rights reserved.
How can R&D help operationalize global Innovation Networks? Best Practice: Caterpillar’s CTO office • > 80% of market cap is tied to intangible assets (patents, trademarks, and copyrights). • Invests $1 billion annually in R&D and has generated 7, 000 patents (e. g. , GPS, sensors). • Formed Intellectual Asset Commercialization (IAC) team — with representation from R&D, business units, and legal — to maximize Cat intellectual asset portfolio’s value. • By redefining IP as “Intellectual Partnering, ” the CTO office maximizes Cat’s profit from its intellectual assets by systematically trading them like financial assets. 29 Entire contents © 2006 Forrester Research, Inc. All rights reserved.
How can IT help operationalize global Innovation Networks? Esat Sezer CIO, Whirlpool 30 Scott Griffin CIO, Boeing Entire contents © 2006 Forrester Research, Inc. All rights reserved. Robert A. Willett CIO, Best Buy CEO, Best Buy International
Collaborative global IT infrastructure: Whirlpool • Global ERP/supply chain/CRM backbone • SAP Net. Weaver platform allows regional units to adapt business processes to meet local demand. • Global Intranet system enables “knowledge reusability” across countries. • CIO: “I am the (global) business. ” 31 Entire contents © 2006 Forrester Research, Inc. All rights reserved.
Secure global ITinfrastructure: Boeing 32 Entire contents © 2006 Forrester Research, Inc. All rights reserved.
Flexible/adaptive global IT infrastructure: Best Buy Inventor 33 Sand Hill VC Partners $ T Transformer Entire contents © 2006 Forrester Research, Inc. All rights reserved. Broker Financier
May 2006, Best Practices “The Essentials Of Consumer-Driven Innovation” How Can Marketing Help Operationalize Global Innovation Networks? © 2006, Forrester Research, Inc. Reproduction Prohibited
Whirlpool drives customer-focused innovation • End consumer input drives incremental innovation. • Co-develops product lines with retail B 2 B clients (e. g. , Lowe’s). • Lead user engagement: Male users who built their dream garages inspired new Gladiator product line. • Working with development economists at RTI International and University of North Carolina to create new business models to cost-effectively serve the “bottom of the pyramid” (emerging markets). 35 Entire contents © 2006 Forrester Research, Inc. All rights reserved.
Summary • Globalized innovation is an ever-expanding trend that poses both opportunities and challenges for corporations. • Global Innovation Networks is essential for a successfully integrated global enterprise. • R&D, IT, and marketing can operationalize global Innovation Networks by deploying a secure, collaborative, and adaptive IT infrastructure. 36 Entire contents © 2006 Forrester Research, Inc. All rights reserved.
Q&A 37 Entire contents © 2006 Forrester Research, Inc. All rights reserved.
Selected Research • June 14, 2006, Trends “Innovation Networks: Global Progress Report 2006” • October 2006, “How Consultants Will Deliver On Innovation” • June 17, 2004, Forrester Big Idea “Innovation Networks” • June 1, 2006, Topic Overview “Innovation Networks” • March 20, 2006, Best Practices “Transforming R&D Culture” • June 24, 2005, Trends “The Seeds Of The Next Big Thing” • June 24, 2004, Best Practices, “Networked Innovation Drives Manufacturers’ Profit” • August 3, 2005, Best Practices “Memo To CEOs And CIOs: IT Innovation Capacity — Not IT Spend — Is What Matters” • December 6, 2004, Trends “Fortune 500 CEOs Embrace Innovation Networks” • March 16, 2005, Forrester Big Idea “Consumer-Focused Innovation” • March 24, 2005, Best Practices “IBM Transforms Its Supply Chain To Drive Growth” 38 Entire contents © 2006 Forrester Research, Inc. All rights reserved.
Thank you Navi Radjou +1 617/613 -6119 nradjou@forrester. com 39 Entire contents © 2006 Forrester Research, Inc. All rights reserved.


