The Design of Innovation Programs

Innovation can be a major source of business disruption, yet few companies have structured innovation programs, past an ad-hoc idea evaluation committee or an occasional patent attorney on staff.

Over the last few years I led efforts to set up structured innovation programs in three very different industries. The largest is the IDEA center at the ARDEC DoD lab in New Jersey, a facility with over 3000 engineers and scientists. Another is the AHa! program taking shape at the Atlantic Health Systems. I also helped a few small cosmetic packaging companies create and maintain “innovation desks”. All these have the same basic structure and execute the same processes, albeit at different scales. So, what are the fundamental elements of a structured innovation program?

1.     Innovation Desk or Office. First element is a physical location, a home for innovation. This is where creative individuals can come and get the support they need. It may be as large as a separate building and as small as a desk located in an easily accessible area.

2.     Innovation Catalyst. A person of significant clout, knowledgeable of the inner workings of the enterprise and trained in innovation management, must be available for consultation during working hours. This person is generally referred to as the Innovation Catalyst. A large organization may have more than one catalyst while very small ones may have an employee assuming the catalyst functions on a part-time basis.

3.     Idea Database. An on-line idea portal is another critical element. Here is where the inventor must enter the details of his or her idea as soon as possible. Doing so gives the idea priority and therefore protection, so the inventor can discuss it with potential collaborators and idea clients. We should note that access to the ideas in the database needs to be restricted since the protection is only internal to the enterprise. The US Patent Office operates on a “first-to-file” basis and idea poaching is more common than you think. The portal (and the associated database) is time critical and needs to be tended to by a patent attorney (or contractor) and must be maintained by IT.

4.     Innovation Hub (Optional). A “nice to have” feature is a Maker hub but, with so many third-party prototyping houses sprouting everywhere, its role may be largely inspirational. A hub also requires a CAD designer if not a complete engineering team. Of course, if you are in a technology business, the generic services of 3D printing shops may not be enough, and an internal prototyping facility may be a must. ARDEC has six.

5.     Training. Employees must have access to training. Innovation is a competency which can be greatly improved through learning. It is quite surprising how many companies require their engineers to file for patents every year, yet do not offer any classes on basic innovation techniques. Equally puzzling how many managers believe that innovation programs consist of occasional brainstorming meetings and “Think Outside the Box” invocations. “Collaborate or die” is another deadly mantra of little long-term value. However, a couple of courses in Innovation Methods and Management of Innovation can easily correct this mindset. There are plenty of consultants available to provide training. And a few of them are rather good!

6.     Facilitators. Another important element is a competent ideation facilitator, which sometimes also has innovation catalyst responsibilities. However, facilitators have a very distinctive skill set which, if the volume of innovations is small or moderate, may be best provided by an external consultant. Our programs include two types of ideation sessions, workshops and focals. The workshops are problem oriented and use problem-specific ideation methods. For example, we use TRIZ as a first-line method to resolve technical issues. Focals are sessions dedicated to finding opportunities in social trends or emerging technologies. IoT, VR/AR and AI are now the most common focal topics.

7.     Communications. A good communications plan is essential to any innovation program. Creative people need to know enterprise priorities, if they are to focus their energy on useful ideas. They also must understand the applicable IP policy, especially when it comes to rewards and recognition. And their managers must understand the pluses and minuses of letting their creative people work outside their job-related tasks. Innovation is not free, but its ROI can be considerable. With different people being receptive to different messages and tuned into different communication channels, the communications plan must be active and diverse. It should include a mix of emails, social media, CCTV/message boards, info sessions, lunch-and-learns, town halls and the like (depending on the size and nature of the enterprise).

8.     Innovation Champion. Probably the most important element of any structured innovation program is the Innovation Champion. This job is a full-time Chief Innovation Officer position or a part-time C-suite function, maybe part of the CIO office. Small companies may have one of the owners taking this role. A high level of commitment is required because innovation comes at a price. Innovation brings with it a lot of tension in the organization, which can only be addressed at executive level. And again, innovation is a competency which needs to be mastered before the program starts reallocating priorities and resources. Therefore, the innovation champion position requires authority and a degree of talent, skill and training.

One final note. Once a program is established it will adapt itself to the enterprise culture and, to some degree, will shift that culture in a more innovative direction. We found it advisable to consider Open Innovation initiatives only when this process is complete. Otherwise the team in charge will be inundated with external consultants, experts and “gurus” offering open innovation solutions one may or may not need. When the program is ready, open innovation can serve an important role. It can magnify the program by leveraging external resources and help boost the enterprise image as an innovation leader. 

Andrei Cernasov, PhD

The Innovation and Design Agency (Innodesa, LLC) is an innovation consultancy based in Morristown, New Jersey. You can reach Dr. Cernasov at: [email protected].