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What is the role for a Chief Innovation Officer

Setting strategies and policies for innovation
Fostering an Innovative Culture
Establishing a Systematic Innovation Process
Improving Teamwork and Collaboration

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innovation enterprise employees

If this is true for you…consider for a moment just the money you are losing from the cost-cutting ideas your employees would share with you. Annual surveys of employee suggestion programs consistently report that the annual savings from ideas submitted in active suggestion programs average from over $700 to more than $1,000 per employee per year.

Suggestion Program Means Savings

This means a typical employer with 50 employees and an active suggestion program can save over $35,000 a year from ideas submitted by employees. Most of these ideas generate savings year-after-year. So the cumulative value of ideas over time is substantially greater than the $35,000.

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cost-cutting ideas employees savings roi

According to a study by PricewaterhouseCoopers, almost half (45%) of lucrative ideas--whether breakthrough products or services, new uses for old ones, or ways to cut costs--come from employees. (Customers, suppliers, and competitors contribute the other half.)

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employees innovation management ideas brainstorming

Today, the Japan Railways (JR) East, the largest rail carrier in the world, continues to benefit from listening to their employees. For example, this rail carrier was cutting tunnels through Mount Tanigawa for a new bullet-train route. They hit water that caused problems for the construction efforts. The engineers developed plans to drain the water away. Construction crews started drinking the water and sharing how good the water tasted. A maintenance worker submitted a suggestion that the organization start bottling and marketing the water as premium mineral water.

His idea was accepted and the water now appears on the market under the brand name Oshimizu. The rail carrier has now installed vending machines in every one of its thousand stations and their advertisements emphasize the purity of the water that percolates through the snow-capped mountains picking up healthful amounts of minerals. The JR East Rail Company water is so popular that they now have entered the home delivery service of the water. Water sales recently exceeded $47M (Robinson & Stern, 1998). The idea came from a maintenance crew worker.

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ideas innovation managament japan bottled water employees

Most organizations go through a natural progression when they turn their attention to improving innovation. First they say, "We need more new products and services," and they work to invent and acquire them. Then they realize they can institutionalize processes to quicken revenue-generating innovation. Then a big "aha" happens, when they realize it's not just about products and services, that new business value can come from anywhere in the organization.

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innovation management employees customers

Syngenta employees who had innovative ideas that were later put into practice submit written descriptions of their projects. A special committee then selects the best projects. In 2008, the program had record participation, with around a thousand projects submitted, representing 9,400 employees around the world, about two-thirds of the total work force.

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pharma pharmaceutical innovation management employees

Its engineers, for example, all have “20 percent
time” in which they’re free to pursue projects they’re
passionate about. That’s how Google News came about.
One of its researchers would visit 10 to 15 news sites
daily to keep up with the unfolding story in the aftermath
of September 11, 2001. He decided to write a program to
do it, using a Web crawler to cluster articles. He emailed
it around the company, and its potential was immediately
spotted. It became a great product.
As one executive said, “He didn’t intend to build a
product, but accidentally gave us the idea for one.” That’s
the reason for the 20 percent time rule: “We trust (our
people) will build interesting things.”

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innovation google employees

Many employees say they don’t speak up to their boss because of fear of repercussions. But are workers just being paranoid? Burris’ research says no.

In a working paper titled “The risks and rewards of speaking up: Responses to employee voice,” Burris conducted three experiments and one field study to examine how people view dissenting opinion from employees.

“I found that employees who speak up and challenge the status quo are viewed as less competent, less dedicated to the organization and more threatening compared to those who support the way things are,” Burris says. “They are also rated as worse performers, and their ideas get less support.”

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innovation texas employees ideas

"The software company where I work has an Innovation and Knowledge program that encourages workers to provide ideas for new products and suggestions to improve the work place, productivity or welfare. The ideas and suggestions are evaluated by a board that decides whether they should be implemented or not. The group of workers with more ideas participates in a raffle to receive a prize. I would like to know what other programs people have seen like this and how they differ. What is the best way to encourage workers to suggest new products to be made / researched by the company?"

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employees innovation ideas workers management incentives

Without innovation and differentiation, the fundamental basis for competition was just price. There's nothing wrong with that. But our view was for us to truly execute a differentiated, value-creating strategy, we needed to do something dramatically different. From day 1, we took the approach that innovation was not the privilege of a few; it was a right of the masses. The only way innovation would work is if everybody was in, so to speak.

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whirlpool innovation management crowdsourcing employees

His logic is this: Assume you want a solution for a problem. If you get suggestions from two people, it’s run of the mill. If you have 50 people doing it, you are more likely to find a solution.

So, how does he get those large numbers (his is a 6,000-people company) to voluntarily come out with solutions? It was a challenge. “We realised that everyone has an idea but most such ideas are killed by the person him/herself. ‘What if my boss thinks it’s trivial?’ is enough to destroy an idea that is germinating.”

Typically, ideas are not freely encouraged in companies, and if you make a suggestion the management asks you to “give a proposal in format, talk about costs and the earlier experience of doing this...” If a person has to make an effort to sell an idea then that kills the idea, is Gopalan’s take.

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innovation management ideas employees internal community

Gil Yehuda - Let me share an alternate model to the "internal community manager" role. This is based on a case that I worked on, and I wanted to get feedback from you if you think this is a better model.

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community manager management internal employees