Framework to create sustainable Innovation

1. BUSINESS INNOVATION
A sustainable way to create value
January, 2010

2. Contents
 Introduction
 Business Innovation Framework
I. Innovation Strategy
II. Business Model Innovation
III. Operating Model Innovation
IV. Innovation Management
Business Innovation Services
Copyright © 2009 Capgemini. All rights reserved. 2

3. Introduction to Business Innovation
Introduction
Business Innovation
Over the past years, innovation has become one of the core strategic levers a company can
pull to improve its business performance and competitive positioning. Business Innovation
helps you to improve and enhance your innovation capabilities and to create value in a
sustainable way.
Koen Klokgieters
Vice President, Being at the forefront of Innovation
Business Innovation
Business Innovation is developed by our team that works daily with the frontrunners of
innovation to further improve or enhance their corporate capabilities in this area. We have
worked with clients from all types of industries enabling us to keep a broad perspective,
expand our thinking and cross-fertilize in the search for innovative solutions.
The Business Innovation area of expertise covers the full innovation value chain, ranging from
innovation strategy development up to the actual implementation of innovation projects.
Business Innovation Services
Copyright © 2009 Capgemini. All rights reserved. 3

4. Contents
 Introduction
 Business Innovation Framework
I. Innovation Strategy
II. Business Model Innovation
III. Operating Model Innovation
IV. Innovation Management
 Appendix
Business Innovation Services
Copyright © 2009 Capgemini. All rights reserved. 4

5. Business Innovation leverages your expertise in the following key areas to
develop and deploy strong innovation capabilities
Business Innovation Framework
Framework Key Areas Outcome
A Capability Client B
I. Innovation Strategy:
Centric Centric THE FUTURE
Where to allocate organizational resources for
future return on innovation investments. VALUE
Strategy Identification of trends and scenarios to provide PROPOSITION
direction for the long-term innovation strategy.
II. Business Model Innovation:
Business Model A business model describes the rationale of how HOW IT WILL
an organization creates, delivers, and captures
Innovation value. We help to develop effective, game- EARN MONEY
changing business models.
III. Operating Model Innovation:
Operating Model Defines how an organization aligns its assets HOW IT COULD
and capabilities to deliver the future value
Innovation proposition. Detailed design of the required BE DELIVERED
changes to the current organization.
IV. Innovation Management:
To maximize the outcome of your innovation IMPROVED
Innovation Management efforts, proper innovation management is INNOVATION
imperative; i.e. governance, processes, metrics, CAPABILITIES
portfolio mgt, idea generation and enablement.
R&D Marketing & Sales
Source: Capgemini Consulting.
Business Innovation Services
Copyright © 2009 Capgemini. All rights reserved. 5

6. The innovation strategy defines where to allocate innovation resources for
future return on innovation investments
I. Innovation Strategy
Key Area Description
 Strategy – the intentional choice of where, how and
A Capability Client B METHODOLOGY when to compete. The innovation strategy is based on
Centric
I. Centric an assessment of the external and internal corporate
Strategy
environment. It contains the desirable future state the
company aspires to be.
Business Model  Trend analysis – Assessment of trends with different
Innovation aggregation levels; macro, consumer, industry,
technology, and their relevance for the current
SOLUTION business. Based on likelihood, timing and impact the
Operating Model trends are categorized by innovation focus areas.
Innovation ELEMENTS
 Strategic scenarios – Combining business critical
trends and uncertainties results in multiple two-by-two
Innovation Management matrices. Description of the quadrants provides insight
in the company’s key future opportunities and threats.
R&D Marketing & Sales
KEY
REFERENCES
Corp. Innovation Strategy BU. Innovation Strategy Corp. R&D Effectiveness
Business Innovation Services
Copyright © 2009 Capgemini. All rights reserved. 6

7. A business model describes the rationale of how an organization creates,
delivers, and captures value
II. Business Model Innovation
Key Area Description
 A business model can be described through nine
A Capability Client B METHODOLOGY building blocks that cover the four main areas of a
Centric Centric business: customers, offer, infrastructure, and finances.
Strategy
It is like a blueprint for strategy, to be implemented
through organizational structures, processes and
II. systems.
Business Model
Innovation  As-is business model analysis – Analysis of current
business models as a baseline for innovation.
SOLUTION  To-be business model development – Definition of new
Operating Model
Innovation ELEMENTS business models that will satisfy future needs, in line
with the strategic scenarios. Analysis of underlying
components of the business model that will affect the
Innovation Management operating model requirements.
R&D Marketing & Sales
KEY
REFERENCES
eHealthcare Benchmark Corp. BM Development BM Design
Business Innovation Services
Copyright © 2009 Capgemini. All rights reserved. 7

8. An operating model defines how an organization aligns its assets and
capabilities to deliver the corporate strategy
III. Operating Model Innovation
Key Area Description
 Operating model innovation aims at translating the
A Capability Client B METHODOLOGY corporate strategy into a practical, high-level target
Centric Centric operating model that can deliver the future value
Strategy
proposition. It reflects the to-be ambitions coming from
an assessment of the external dynamics and internal
capabilities of the company.
Business Model
Innovation  Establish operating model requirements - Assess
where the existing operating model is unable to deliver
III. the future value proposition.
SOLUTION
Operating Model
Innovation ELEMENTS  Identify solutions – For each area of operational
underperformance, identify solutions based on leading
practice (top-down) and re-engineering (bottom-up).
Innovation Management  Design target operating model - design a model that
incorporates all changes and can deliver the strategy.
R&D Marketing & Sales
KEY
REFERENCES
Corp. OM Innovation Corp. IT OM Design Corp. IT OM Trans.
Business Innovation Services
Copyright © 2009 Capgemini. All rights reserved. 8

9. To maximize the outcome of your innovation efforts, a solid innovation
management foundation is imperative
IV. Innovation Management
Key Area Description
 Management of the innovation value chain and
A Capability Client B METHODOLOGY provision of an innovation infrastructure. Methodology
Centric Centric covers all essential innovation management elements.
Strategy
 Governance – Setting of roles & responsibility, target
and scope, management involvement.
Business Model  Processes – Provision of time & funding, rejoice
Innovation
successes, communication.
 Metrics – Performance measurement, rewarding.
SOLUTION
Operating Model
Innovation ELEMENTS  Portfolio management – Analysis, ranking, prioritize.
 New product development – Project management, go-
IV. to-market and launch.
Innovation Management  Idea generation & enablement – Innovation culture,
ecosystem, platform, methods & tools, workspaces.
R&D Marketing & Sales
KEY
REFERENCES
Innovation Partnerships New Product Launch New Product Launch
Business Innovation Services
Copyright © 2009 Capgemini. All rights reserved. 9

10. Koen Klokgieters
Vice President – Business Innovation Consulting
Mob: +31 6 51 123 259
koen.klokgieters@capgemini.com
www.koenklokgieters-english.blogspot.com
http://www.slideshare.net/koen.klokgieters
www.capgemini.com/consulting
Capgemini Consulting is the strategy and transformation consulting brand of Capgemini Group Copyright © 2009 Capgemini. All rights reserved.