1. Innovation State: Why Innovative Government Doesn’t Have To Be A Contradiction Bill Eggers, Director, Deloitte Services LP

4. Why sustained innovation matters Perception: The private sector gives us digital video recorders and iPods; the public sector creates tax forms and motor vehicle registration queues. Call for innovation The current economic crisis Manage risks: buck stops with public sector Global issues: climate change, terrorism, rising fuel prices etc. Rising expectations Revenue slowdown Aging population: Loss of revenue & experienced employees Unexpected events Do more... ...with less Urgent and provocative challenges Ability to meet challenges compromised

5. Tap all sources of service innovation Government Organization External Partners Citizens/customers Employees Internal Partners Participative and responsive government Joined-up and reinvented government Non-bureaucratic, outcome-focused government Partnered and networked government

7. The Innovation Strategies Q. How can public sector alter the internal environment to overcome the hurdles to innovation? Q. Why are some innovations replicated with speed and ease, while others flounder? Replicate Cultivate Q. Can you extend partnership to “buy” innovations from the best in class providers? Partner Q. How can you connect with the best ideas, engage citizens, and establish new delivery mechanisms? Open Source Network Q. How can you energize large groups of people from diverse disciplines to enable flexible, customized solutions?

12. #3: Partner Seek new solutions Test new approaches Benefit from cross- border diffusion Overcome internal constraints Types of Partnership Public-Private Public– Public Public-Nonprofit

14. #4: Network Citizens report a number of problems External partners, citizens and employees can be engaged in selecting ideas Citizens know what they want but may not be able to articulate it clearly Citizen input is necessary if new ideas are to succeed External partners Middle and senior managers should not be insulated from citizen reactions In-source ideas Predict ideas worth pursuing Build citizen networks Create a learning organization Look for solutions that meet unconscious needs of your customers Engage the creativity and specialized skills of a range of providers

15. How to get printed images on a potato chip?

17. #5: Open source User Community Local community Citizens Development Community Specialists Open source companies Open source project Global community Government organizations Technology experts Students Government agency Nonprofits Private companies

19. Open Source policy development U.S. Patent and Trademark Office Source: http://www.uspto.gov/web/patents/peerpriorartpilot/

20. The Innovation Process: One weak link in the chain can stump the flow of innovations Idea Generation Diffusion Conversion Selection Filter good ideas by creating an efficient sorting process Convert ideas into products, services and practices Manage stakeholders and disseminate ideas widely Create systems to generate and maintain the flow of good ideas

21. Identify and rectify your pain points What can you do to overcome your weakness? Where do you falter most often? Cultivate Replicate Partnership Network Open source Generation In-house External Co-creation External External Selection In-house In-house Co-creation Co-creation/ External External Conversion In-house In-house Co-creation Co-creation/ External External Diffusion In-house In-house Co-creation Co-creation/ External External

23. Reconfigure Organizational Structure: Example of P&G R&D 7,500 persons 1.5 million talented persons NineSigma InnoCentive YourEncore Yet2.com Private Companies Universities Government Labs Individuals Retired Persons ProprietaryNetworks Technology Entrepreneurs Suppliers Open Networks Permeable Boundaries Strong Leadership Commitment

28. Just remember… “ People are very open minded about new things. As long as they are exactly like the old ones.” - Charles Kettering

29. For Further Information… Bill Eggers Global Director, Deloitte Research-Public Sector we [email_address] 202-378-5292

30. Questions & Answers

31. A member firm of Deloitte Touche Tohmatsu