美国英特尔集团创新副总裁 Esther Baldwin
Managing Innovation for Value
Distinguished guests and attendees of this important conference for Jieyang and China, I am honored to be asked to share some thoughts today.
There are many tried and true paths to wealth that can be easily identified by looking back at the people and countries have that achieved wealth and prosperity. Some methods are worth learning from and re-using.
As an Information Technology Innovation expert I will focus on this area for my comments. They are based on a series of books that began with Managing IT for Business Value and will end with a book I am co-authoring called Managing IT Innovation for Business Value that will be released in July next year. The underlying premise is that you can manage innovation as a lateral business process in a similar way that you manage Quality or Safety, with discipline. There is a maturity curve for installing and managing an Innovation Process. We use a self assessment tool based on a model that begins with Management Commitment to measure where a group is on that maturity curve. We define innovation as the introduction of something new which creates value for the organization that adopts it. Value is the key word. It is 20% invention, 80% re-application. There are three types of innovation that generate wealth - Radical, Incremental and Re-applied.
Radical Innovation, such as the car and the airplane that radically changed the way people and products are transported around the world. An IT example would be the microprocessor;
Incremental Innovation, which makes products better faster and cheaper, so we traveled here today in safe airplanes that can carry many passengers, more quickly than before. The microprocessor today is many generations better than 20 years ago. The microprocessor improvement ramp fueled the greatest growth in the History of Intel all incremental innovation.
The last type of innovation is re-applied innovation. This allows you to re-apply inventions to new markets or new uses with very little to no change and therefore achieves great use of sunk capital. For example super glue is now used in hospitals as a replacement for sewing with thread stitches and computer aided design tools migrated from architecture to aerospace to the electronics industries.
It is important to realize that very few radical inventors gained the most financial benefits from their invention. We can name the creators of these inventions - Thomas Edison, Henry Ford, The Wright Brothers. It was the companies that financially, fueled growth and drove entire industries such as Boeing Corp, AT&T, Sony, Lenovo, Acer. It is re-applied innovation that further fuels growth at lower cost. It is very difficult to name one single person that achieved major incremental innovations such as the Boeing 747; it is usually teams that do this. The Asian culture of co-operation and team work lends itself very well to incremental innovation. I think it is important for Asian countries to remember with pride what they have already given the world in the past as you now look forward to the future. This region gave the world paper, printing, the compass, gunpowder, and many other radical and incremental innovations. You have already changed the world. As Asian countries develop and grow their industry and knowledge capital and as more and more western research and development facilities are moving to Asia, the ability to capture and protect intellectual property especially for incremental innovation is crucial. We have found in Intel that innovation can be managed as a lateral business process with discipline. We call this "systematic innovation". Innovation is not about creativity. When people in the IT organization were trained how to recognize intellectual property and how to follow the process for protecting it, the rate of patent fillings jumped 400% and is still climbing as more people are trained and the knowledge spreads.
People are inherently innovative however the process of harvesting and protecting intellectual property must be easy, communicated and rewarded. Often people are so focused on their work that it is hard to take the time to think about what new intellectual property has been created and then generate the documents for protecting it. It is important to put this step into each project management plan and ensure proper closure of projects with an intellectual property harvesting session as part of the final project deliverables. Managing intellectual property protection is only one small piece of an innovation management program. Having a complete program for managing innovation is also a stimulus for increasing intellectual property. This complete system should include methodology, systems, tools and processes that demonstrate management commitment, provide support and training, measurement and reward systems. This results in a systemic innovation system that delivers value. If you look at the research done by Doblin on where value has been generated from innovation compared to where the investment has been there is a lot to learn about where to invest for more value. 90% of value is a result of 2% of the innovation efforts.
Traditionally companies focus in the product area. Much more value has been generated in other area. The most difficult part of generating wealth from intellectual property in converting ideas into commercially viable products or services, sometimes called "crossing the chasm" (Geoffrey Moore). This is where the team again plays an important role since it usually takes a different set of skills to commercialize a product than it does to invent it. As leaders it is our responsibility to provide the infrastructure and training that allows all people to participate in the innovation process and to seek out best known methods and practices that make this easier for people. Any organization can achieve more innovation results from a disciplined management process. It takes management commitment to put the process in place and support it. If someone were to ask me where the next radical innovations will be I think they will be in areas that will again transform people lives and solve the growing needs for access, energy, health care and water. As we further look at the challenges for the Asia region I think there is a huge opportunity for "Digital De-urbanization" that is, using technology to provide jobs where people currently reside so they do not need to relocate for work or education. Intel has offered to share their knowledge in this area with other companies and organizations. We can learn from each other what works and does not work and ultimately Intel believes that in the end, it's not just about making technology faster, smarter and cheaper - it's about using that technology to make life better, richer, and more convenient for everyone it touches. We can transform people's lives with innovation. We can do this. Thank you.