This post below has been deeply influenced by the thinking of Geleyn Meijer and other colleagues from Logica. I should be in a position to provide you a link to their extraordinary white paper on the same subject soon. 

They reiterate in their paper how cost-cutting and restructuring has been on high priority for businesses since the past few years, propelled further by the worldwide recession. This has also lead clients to revisit the costs they bear towards consultants. Clients are increasingly keen to know what the value addition is that consultants bring. Otherwise they just appear to be an additional cost.
 
Earlier, the consulting profession held the position of a trusted advisor at board room level. But not anymore. This change owes quite a margin to the IT revolution that’s entering first maturity levels now. This phase has seen the emergence of a new face of consulting- a 3rd generation of the management consultants (3GMC).

The IT revolution has acted as a catalyst for new businesses and enterprises to emerge and for existing businesses to adapt. And it’s they who are the clientele for the new 3rd generation management consultants. Where this brings new challenges to the consulting profession vis-à-vis its position until now, it also provides great opportunities.

Clients and IT consultants operate on a more equal basis now. Previously, consultants had an edge in knowledge or capabilities, making a lot of clients depend on them. But those days are long gone. Today, clients are as knowledgeable as their IT advisors. They expect more from them, wanting to be challenged and inspired as well as helped with materialising changes.

The challenge for consultants today, therefore, is to prove their value once again as a wise investment choice for organisations. To achieve this, the 3GMCs need to consider the following:

1. The information economy

Technology advancement and the internet have made information transparent and available in real time. In both the manufacturing and service sector a trend has emerged that greater technology spending is associated with more intense competition at the industry level. It is believed that IT is in fact increasing the pace of this business competition.

A research in the Netherlands has revealed a strong correlation between ICT and innovation. And this in turn, is strongly correlated to productivity growth. Consultants are at the base of this new age. They analyse, sense, see or develop new opportunities that didn’t exist earlier. Or they are technical wizards who know what is needed to make certain applications. They thereby act as radars in identifying the innovations.

2. Knowledge and technology driven

Information and competitive advantage are not sustainable. Where labour and capital are sufficiently available today on a global scale, valuable knowledge to drive business success is becoming scarce. The challenge therefore is to develop and maintain crucial knowledge.  Also, technology is gaining ground. With the rise of IT in the corporate ladder, its business value is also being recognised. Biotechnology, nanotechnology and other applications of technology are also budding.

This means consultants should be technology and knowledge driven. They should have a sound understanding of knowledge creation and technology and its application in businesses. They need to have a broad business perspective and at the same time deep-technology knowledge.

3. Reinforce collaboration / co-creation

Businesses today know the power of collaboration. Innovation, which results from working together with clients or vendors, makes up for more and quicker successes. Even renowned R&D departments today are open to joining hands with other players to create an innovative solution.

I believe Consultants should also take this approach and encourage collaboration. They can reinforce collaboration, because they are by nature active in several markets and for many clients. It calls for an open mind and an atmosphere of trust and sound entrepreneurship.

The way forward for Consultants

To meet the challenges at hand, and reclaim a prominent position in the business domain, consultancy must be based on three cornerstones.

a. Applying an Iterative Approach to develop and analyse a solution

In a mature iterative cycle, clients or consumers act as co-creators as they direct the form and shape of the final outcome by their inputs. A good iterative process should comprise of evaluating ideas and designs, followed by implementation of those designs, a check on their effectiveness, and then selection of the solution based on the results of the validation.

b. Taking a Comprehensive Service Model as baseline for the consultancy results

The growth of the service economy and innovation is pushed by the changes in capability thanks to the information age. This has led to new customer demands and expectations. Customers are becoming the main reference point for strategy. That’s why it is crucial now to go beyond traditional innovation methods and mindsets, and allocating resources from pure science-based technology innovations towards including more social research.

c. Working from a foundation of mature and inspirational Technology Savviness

Key technology drivers today are New Commerce Innovation in Sales & Marketing, Collaboration Innovation in Networking, and Sustainability Innovation in Efficiency. Traditional businesses are either adopting the new trend or are going out of business altogether. In fact, most new business powerhouses are pure digital players.

That’s why consultancies need to be fully aware of the digital technologies that are at the core of this revolution. This means that they should be able to interpret the maturity and applicability of technology. And should be able to understand the way these technologies further develop.

So what does this mean for current Consultancies?

I think Consultancies should start thinking differently. Collaboration and cooperation is the way to go forward. A network or eco-system has the potential for technology innovations, social innovations and business improvements. This network can include anyone, from clients and partner organisations in the business domain, to R&D and innovation units. Innovation and renewal are often driven from science and technology advancement. And when made applicable to specific businesses, they become relevant for the whole society.

The 3GMCs play an important role in the innovation system by stimulating this process of exchange in the eco-systems. And therefore, 3GMCs should take charge, by expanding their network and encouraging initiatives, all the while providing guidance to succeed. They can do this, because they understand clients and their eco-system. They operate in them and are flexible and adaptable by nature.

As I mentioned earlier, 3rd generation consultancies are smarter, more aware and more adaptable to change than their predecessors. They are aware of the rules of the new generations and the emerging new business environments that are taking a different view on our business value systems. Because if anything the current economic climate makes clear, it is that clients, shareholders and Consultants are all equal players.

What do citizens want from their governing bodies? The answers could range from better roads, improved healthcare and lowered cost of living to more security, safer drinking water and enhanced educational facilities. And the list goes on. Is it really that difficult for cities to achieve these expectations? Not if we were to fully utilise the resources at hand, combining them with diligent planning and ICT.

Today this need has become even more important than before. Cities are growing both in numbers and in their population. As cities become more populated for a variety of reasons, challenges have also increased manifold in these areas- maintenance of equal distribution of resources, handling of crimes, traffic and infrastructure administration, and management of environmental and hygienic conditions.

Only when a city girds itself to tackle these urban challenges of today, can it be ready to march into the future. The good news is that cities of today are more empowered to do so because they are sources of national competitiveness and major revenue generators. So obviously, they are expected to have more control on the way their resources and investments are utilised. Add to this, the benefits that ICT can bring, and we have a perfect recipe to create cities of next generation.

With such a scenario in place, I anticipate a next-generation city that virtually knits information systems across verticals. A city where we could set up a platform of ubiquitous networks that are also convergent. These networks would use comprehensive computing that would enable access to information and IT-enabled services, with freedom from restrictions of time, space, device or media. This platform would have built-in intelligence to connect and collaborate with different devices and IT applications operating on diversified networks. And these would provide contextual, relevant information to governments, authorities and citizens.

These knitted cities of the future will benefit everyone within its eco-system- Governments, citizens and businesses. Governments will be able to optimise the use of resources and utilities. They will be able to better their infrastructure management, reduce cost of urban management and sustain growth through efficient city planning. As a result, citizens will benefit from improved quality of life, safety and security, cleaner environment, comfort and convenience. Businesses will gain unequivocally in terms of productivity, enhanced efficiency and financially, as they are an important cog in the wheels of any government managing a city.

So what is the composition of this next generation city? At the heart of it I see a sophisticated network of information connectivity that enables far-reaching access to essential services like transportation, education, healthcare and security. This information can be accessed from anywhere and at any time, through numerous communication channels. We are hence looking at a connected or knitted world.

Sensors would be made available on all urban structures to collect information and transmit it over wireless and fixed networks. This data would be collated and integrated on the Cloud and analysed in real time. Information so collected would be used for efficient urban management in, and for, comprehensive access to such essential services as transportation, education, healthcare, security and fire safety services. Anywhere, anytime.

I can see this paradigm shift in the very near future. Where a number of solutions will leverage on interconnected and intelligent capabilities to add momentum to a city’s core management structure. And with the intelligent, ubiquitous and interconnected information networks giving more clarity and a better understanding of the requirements and dynamics happening in their city, governing bodies will have more leeway to enhance the number and value of their services to citizens.

I can envisage enrichments to the quality of management of services and infrastructure, and to quality of life itself.

Using information from myriad sources intelligently, the city could manage effective transport and traffic control, while at the same time using that information to guide emergency services, disaster control services or even security services through faster routes. Similarly by monitoring weather, systems could predict disruption and prevent it for not only air traffic but also road traffic.

Another important factor for consideration is the assertive move towards greener environment and sustainable energy. With effective monitoring and tracking measures in place to examine green house gases emitted by vehicular traffic and the carbon labelling of products, authorities can ensure that environmental norms are met proactively.

Moreover, energy supply can be managed more intelligently so that demand and supply can be balanced and controlled for better energy efficiency. Homes and offices can be monitored for consumption patterns to optimise the utilisation, thereby reducing energy wastage. Interconnected information flows for a knitted, interconnected city will also see better infrastructure management.

These next-generation cities will revolutionise the way we live, work and play. They will not only improve the quality of life of citizens but also provide a more conducive environment for further development and growth.

It’s going to be ‘hello’ to the future very soon indeed!

Sustainable resources is today one of the key factors fostering global economic convergence. Governments, regulatory agencies, entrepreneurs, natural gas and oil companies, fleet operators and vehicle manufacturers have all attempted to address in their own ways the perennial problems of air pollution and fossil fuel consumption. However there needs to be a paradigm shift in the way we view transportation and the ways we search to combat the resulting carbon footprint.

I think change to greener transport on a rather ground level bears more impact and results. While adapting and completely overhauling existing fleets and automobiles to adopt green technologies is a herculean task, altering and developing policies to promote eco-friendly driving as an alternate may not seem as staggering but certainly needs an innovative approach. One that will have the ability to compel every driver to adopt better driving styles to result in lesser carbon footprint. And hence importantly, also succeed in inclusion of individual citizens in the eco-system. This must be the first. Once the foundation of greener driving is laid, the number of possibilities that this generates for creation of innovative policies and business models is tremendous.  And they would all serve the same fundamental purpose, but with different kinds of benefits to eco-friendly drivers. In my view this undoubtedly is game changing. This is where I think Logica EMO will play a big role in the future of transportation.

I see that this will not only spring multiple possibilities as far as drivers are concerned, but will also create a number of new eco-systems where everyone benefits.

The principle behind it is that stakeholders as different as insurance companies, emergency services, governments and such players can team up with each other or commence individually, to build further value-added services and commercially viable innovative services around the Logica EMO framework. All this, by ensuring that driving behaviour and hence carbon footprint is analysed and accordingly incentivised.

So then, not only are we creating new business avenues and developing new and innovative services that can be built via the solution, we are also working towards a greener, fuller environment with minimal green house effects. And isn’t that sustainability all about? Where business and economics can be optimised, while ensuring that the larger environmental concerns are addressed as well.

Below are some tangible and substantial use cases I foresee with Logica EMO for corporations, governments and other stakeholders.

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  • Remote vehicle infrastructure management - Most corporations spend substantial amounts of money and time in maintaining fleets to service their personnel and other business needs.  Especially so, if they have multiple offices, in which case there are local centres to manage these fleets. With the Logica EMO solution in place, it is highly possible for such companies to optimise their resources, congregate costs and double operational efficiency and services.

The Logica EMO devices installed on the vehicles will make it possible for them to track vehicles for employee-safety, receive information on service requirements, and get an SOS on breakdown assistance as well as driver performance. All this, to a central location that acts as a remote vehicle management centre. Thus allowing them to cut down on operational and infrastructure costs, and increase value-added services. 

• • Pay-as-you-drive and Pay-how-you-drive insurance – Insurance is another industry that can utilise Logica EMO to build new and innovative business models. Traditional car insurance premiums incorporate a range of risk factors such as vehicle and driver history but don’t assess miles a vehicle has covered. So essentially, they charge the same premium to a driver who drives less and so has lower exposure to accident (low risk), as to a driver who drives more and therefore has higher exposure to accident (high risk).

 

By converting these fixed costs to per-mile coverage, premiums can be spread out across driver profiles based on mileage and driving pattern. Both pay-as-you-drive and pay-how-you-drive insurance structures are concepts which have been floating in the industry for some time now, but their adoption has been hampered by the absence of a safe and reliable technology to measure driver mileage and driving patterns. Logica EMO can just be such a solution to enable auto insurance companies to remotely track driving patterns and charge premiums accordingly.  

• • Taxes and tariffs – As I said, meeting the green challenge posed by vehicles today is easier to deal with a step by step approach, rather than commencing a blanket ban on vehicles of a certain size or engine capacity to curb green house emissions. Governments are best fit to utilise this opportunity. They can maintain stricter emissions norms, while at the same time make this rewarding, instead of being punishing all the time.

 

Because Logica EMO measures the eco friendliness of a person’s driving skills, it provides an important technology enabler for governments to incentivise people for their green driving habits. By tying Logica EMO’s measured Green Index values to various tariffs and taxes on road, toll, congestion, fuel and such like, Logica EMO can provide a reliable way of incentivising people by making it cheaper to drive green than not to.

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  • Vehicle-to-vehicle communication – Another interesting use case is vehicle to vehicle communication for better and safer driving. Logica EMO in one vehicle can be interfaced with others that have Logica EMO on the road to enable vehicles to communicate with each other. In such a scenario, drivers can be given feedback when a vehicle drives too close to another; lost vehicles can be located, and even empty parking slots can be found in an otherwise busy parking lot.

  

• • Multimodal transportation – Multimodal transport - transporting goods using more than one means of transport under a single contract - is the standard way today. In such a case, although a single carrier may have overall responsibility of the goods through the entire journey, in reality, they outsource specific sections of the transport to sub-carriers. One of the biggest problems faced in multimodal transport, is fixing liability for lost or damaged goods.

 

Here is where Logica EMO can play an important part. Once installed on all the modes of transport used, and by linking the Logica EMO data to carrier systems, carriers will be able to track and affix responsibility for goods during transportation.  This not only allows them to build better operational functionality, but also offer more accurate, reliable and value-added services to their clients, in turn.

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  • Emergency call services and breakdown assistance – When it comes to road accidents, getting emergency assistance to the distressed vehicles as soon as possible can mean the difference between life and death. In such cases, having a system like Logica EMO that can send out distress signals immediately on impact and then guide emergency services to the exact location of the vehicle can help save valuable time and save lives.

 

While these are just some of the possibilities with Logica EMO today, I think we have only begun scratching the surface of how a solution like this can revolutionise the way we drive, manage our vehicles and affect the environment.

Guest Blog by Danny Wootton. Danny Wootton is the UK Innovation Director at Logica. He is a member of the CBI's Innovation Science and Technology steering committee and sits on the board of the National Outsourcing Association.

Innovation is an over-used, misunderstood concept, despite being talked about by most companies in most markets. Today, it has often come to mean creativity or invention and is often strongly associated with technological developments or research. 

The other challenge is that if you ask 100 companies for their definition of innovation, you are likely to get 100 different answers. At Logica, we use a definition that provides consistency across the business, and ensures we focus on taking the benefits of innovation to our clients. Our definition is:

‘The successful exploitation of ideas, that are new to you, leading to a positive economic, environmental and social benefit’.

Today, many companies are looking to embrace collaborative innovation as a way to affordably solve their complex business problems. This, in order to reduce their costs, expand their revenue or enter new markets without the need to invest heavily in R&D. It also gives them a way to reduce their time to market or time to solve a problem.

Alternatively, other organisations embrace it as a way of solving complex problems that they are not capable of solving themselves. Or, they do so to just give themselves a different perspective that can only be gained from people involved in different activities across the eco-system, including end users/ consumers. Eventually, this often leads to a broad range of more successful innovations. This is due to the different ways of solving a problem and ways of implementing the innovation, often more effective when end users are involved in all stages of the process.

Collaborative innovation does not need to be the sole right of consumer or public facing organisations. It can also be beneficial for highly sensitive projects. It just means that the community being accessed is one in which you trust, and that has the necessary safeguards in place.

So, it is clear that there is a need to collaborate, and more companies are also adopting Open Innovation – simplistically, publicising your needs for other companies to help you solve them. Why then, do so many companies struggle to collaborate effectively?

Research completed by INSEAD and Logica at the end of 2009 showed that 59% of people who responded said that innovation projects that included significant collaboration were more difficult to execute than those without. Although, 64% of people stated that they did collaborate for their innovation projects.  Another result of the research was that 41% of people stated that innovation projects fail in their organisations due to conflicts with short-term deliverables. Globally, this could amount to a staggering number. If we take the UK as an example, a recent report by NESTA, a UK endowment devoted to stimulating innovation in the UK economy, stated that UK spend on innovation was £133 billion. Therefore the cost to the UK of failed projects through a combination of poor collaboration or conflicts with short-term deliverables could be in the region of £55 to £85 billion per year.

So, how can this be improved? Well, there are three things that tend to get in the way of good collaboration across an eco-system:

• Different business goals,
• A lack of understanding of each party’s role in the eco-system, and
• Different cultures

My experience has shown that it is always surprising how often companies forget to understand the business goals of the organisations they are collaborating with. They always assume that each company has the same goals as they do. This is often a big issue in eco-systems that include a combination of start-up and large organisations. In these cases, the importance of a particular collaboration is often at different levels between the organisations.  The other area where this is often an issue, is in outsourced services, where clients want innovation but also want 100% reliable service. Suppliers are contracted to provide innovation at their own risk and expense, a situation where it is clear that both parties do not have the same goals in terms of innovation, service and risk.

The second problematic area is each organisation’s role in the eco-system. Now it seems blindingly obvious that this would be understood, e.g. supplier, client, channel to market etc.  However, people often take such a simplistic view of this, it often comes back to bite the collaboration when the innovation is being delivered and optimised to generate the expected benefits. Take an example of three-way collaboration between a technology provider, a service company and a channel to market. On the face of it, each role seems to be obvious. But who provides support, who bug-fixes in real time, who provides sales support and who generates sales leads?  Again, it’s obvious. But when you look deeper and combine this with the various business goals for each organisation as above, and the issue outlined regarding innovation projects vs. short-term deliverables, is there a real commitment from each party to play their role in the eco-system?

Finally, we come to culture. Ideally, organisations will always try and collaborate with other organisations with a similar culture. Where communication, processes and style are similar.  However, this is not often possible. I believe the key thing in collaborative innovation, is to understand the culture of the business rather than to make sure they are aligned. The simplest example of this is that organisations who have different appetites for risk can often work together very effectively, if each party understands the other’s profile. If they don’t, this can become a very frustrating relationship, very quickly.

So, do you have to have the three elements identified above, full aligned? Well no, but you do need to have people within the collaboration team who understand these issues and are able to ‘interpret and translate’ each of these areas between the different parties. This is not a common skill and often only exists in people who have spent time in different types of organisations- start-up, corporate, private sector and public sector. They, therefore, understand how each organisation works. Organisations who are successful in collaborative innovation, and who are able to reap the business benefits from those projects, are the people who recognise and employ people with those skills.

Several debilitating conditions such as cardiovascular diseases, diabetes, stroke and such like, are linked to common preventable risk factors like prolonged unhealthy diet and obesity. While some of the risk factors associated with chronic conditions are largely preventable, they also highlight the suboptimal use of healthcare resources. Patients have not been encouraged by most of the current healthcare systems to take appropriate, preventive control of their care. These have given rise to a few imperatives, and as always, imperatives lead to opportunities. OECD estimates indicate that public spending on health and long-term care could rise from the current average level of 6-7 % of GDP to around 10% by 2050.

Many of the conditions are strongly influenced by behavioural choices that consumers make. Coupled with the tendency of consumers to seek wrong type of treatment for their conditions, they cause misuse of the healthcare system and pose a costly burden. Hence the key really is to engage consumers proactively and encourage them to make healthier lifestyle choices, possibly by incentivising behavioural change.

Given these aspects, I foresee a paradigm shift in the future of Healthcare delivery, with ICT playing an even greater role in it. This is a great opportunity, one that will also ensure health care resources are used more wisely.

I can see that ICT is going to revolutionise Healthcare and its related areas, making it more people oriented, with the delivery model becoming more patient centric than Healthcare centric.

Emerging trends suggest a move towards a “Connected Healthcare” world. This connected world can be viewed from two economic angles:

- Urban and developed worlds
- Rural and remote worlds

The two worlds have distinct economic, social and cultural differences, which evolve around technology, infrastructure, expenditure and local governance. However discrete, the common aim of both worlds, is to ensure that people are healthy and each one gets healthcare benefits. In fact, ICT companies are currently working on some really innovative solutions to enable benefits of healthcare to people from all economic and social backgrounds.

Some trends that I see emerging in the healthcare spectrum are:

·          Use of mobiles in providing cost-effective and mobility based solutions

·          Use of Cloud to provide healthcare benefits for institutions/individuals who cannot invest an upfront cost

·          Use of miniature sensors that will monitor body parameters and provide real-time feedback

·          Use of analytical science in predicting and detecting disease and outbreaks so that proactive actions can be taken

·          Consolidation of patient records so that historical data is available anytime, anywhere

·          Focus on how to provide cutting edge healthcare at low cost to rural and remote areas

Fast forward to the near future, I see a more participatory role of people in the utilisation of Healthcare services. Below are some of the examples of how I perceive technology will be able to touch lives. Visualise these.

·          A fast-asleep, elderly heart-patient receives an alert on his mobile phone that his heart rate is rising at an alarming level and that he needs attention immediately. By the time he wakes up and reads the alert, the health centre would have already dispatched a team of professionals to attend to him.

·          The Football World Cup is scheduled to be hosted in a country. Past historical data suggests that in that particular year, when the temperature and population density are at a certain level, there is a high chance for a particular disease to strike. Armed with this knowledge, the authorities then take preventive measures to avert a major outbreak of disease.

·          A health-conscious individual gets reminders on his mobile phone on his exercise routine, calorie intake, and medicines. He also gets a feedback on how he is progressing on his health plan.

·          A remote Healthcare centre receives expensive diagnostic equipment from a healthcare equipment manufacturer for free. And pays per use.

Do you have any more?

 

Logica EMO has bagged yet another accolade for innovation in the green space. This time, it’s finished second, in Citizens Choice Award in the Green Product Category at the FT Justmeans Social Innovation Awards 2010.

With Logica EMO the larger aim is to help people become mindful of the impact their driving practices can have on the environment. Logica EMO achieves this through its concept of Differential Fuel Pricing. This means you pay more or less for the same fuel, depending on your driving behaviour.

Logica EMO allows wireless monitoring and reporting of vehicular emissions in real time, but in doing so, it more importantly, captures a person’s driving style. It captures a vehicle’s carbon footprint via a plug in device, and then transmits this data securely and wirelessly to the back-end system. This information can then be used by third parties like government agencies, insurance companies or fleet companies for framing incentive and training programmes. Such that, someone who drives his vehicle in a fuel efficient manner wins incentives like paying lesser for fuel or even auto insurance, while a rash driver pays more for the same service.

One can only enumerate the substantial impact this solution can have on a spectrum of stakeholders on a wider level. These include governments, regulatory bodies, fleet companies and oil companies. Regulatory bodies can compute and levy fuel tax as per the vehicle usage. This means, a person driving inefficiently, ultimately needs to analyse and change his driving behaviour if he wants to enjoy the benefits other, more efficient drivers enjoy.

As for oil companies, the solution goes a long way in helping them build better world, as they, in tandem with governments, enable differential fuel pricing. They can do so by providing loyalty points based on a vehicle’s green points as per the driving pattern of the individual. Automotive Insurance companies can use this data, and classify drivers as risky and non-risky and so decide different premiums. Fleet companies can use this information doubly, as they can monitor their drivers, and in turn, the mileage. This way they can train errant drivers and ensure that they get optimum ROI from their fleets.

As we work towards taking this innovation mainstream, we are only just beginning to uncover the immense potential a solution like this can have on the environment and global economics. There is a lot more that can be achieved with Logica EMO. And I am excited by the game changing opportunities that this will bring in the upcoming connected world!

Guest Blog by - Danny Wootton, UK Innovation Director, Logica

Danny Wootton is the UK Innovation Director at Logica and a member of the CBI's Innovation Science and Technology steering committee.

Accepted wisdom says budget cuts in public spending are inevitable, but it is also a fact that we need to protect a fragile economic recovery. Therefore, it is important that a plan to effectively use the available funding to drive forward innovation is developed, as innovation is one of the best ways to overcome economic decline.

Any country wishing to maintain its recovery progress needs a joined up funding programme, led by government to stimulate innovation; from education to research, to incubation and through to commercialisation – in effect an innovation eco-system. By laying out a path to an innovative culture over the coming years, it allows us to maximise the returns from limited future funding available in both public and private sector. .

One of the key elements of a connected innovation eco-system is the recognition that innovation is not just about invention or research, but also about the successful exploitation of those ideas for a positive benefit, be that economic, social or environmental. This cannot be achieved through a fragmented approach or a research-only approach to innovation.

Obviously, many people in business and government will have different views on the areas of competitive advantage for that country, however it would be very disappointing if it didn’t include low carbon technologies, such as, a leading position in electric vehicles and the national infrastructure needed to support them, renewable energy, eco-mobility, the space industry and future security including physical and cyber challenges faced on a global scale.

But, we should look at all of those areas as eco-systems that need an end to end plan to reap the benefits of the investments made in the early stages of innovation.

Academia is a great starting point – although it is important that we continue to support the arts in our education system, from schools to universities, we also need a ‘connected plan’ to ensure we are investing in areas of education that we see as the stimulus for future economic growth in the next 10 to 20 years. Making sure we have a range of curriculum and degrees that map onto the country’s future growth sectors to ensure we have an adequate supply of suitably skilled employees in the future. In addition to the usual areas discussed when talking about skills (science, technology, engineering and mathematics) why not also teach the skills necessary to stimulate and support innovation? We can’t make people innovative, but we can certainly create a culture that embraces and supports it from an early age.

The same applies to research. Investment must be made in research programmes that will give the country a competitive advantage in the coming decades. If we ran our country like a business, we would have a strategy, with an R&D plan and roadmap, with a view of ‘what we want to be famous for’. Usually, we would say that we shouldn’t constrain our research teams and we should allow them to think freely. However, in these times of lower investment, we need to have a clearer plan of where to spend our limited public funding.

To achieve the ‘success exploitation’ described above, another area that needs to be supported, but is often overlooked, is the incubation and commercialisation of innovations. But there is often a gap between these activities and partnering models with larger companies, who often have the funds to commercialise these ideas, plus have the routes to market.

A funding stream for incubation centres to support innovation through the management of projects where small and large business work together. This environment is often a challenging one as the two businesses can talk a different language, move at different speeds and have different goals. However, with the right facilitators, these relationships can become highly innovative and productive. In addition to this, maintaining or increasing the levels of R&D tax credits for businesses developing their own ideas is also essential.

It is clear from current research that the implementation and commercialisation of ideas, plus collaboration across different cultures is still a massive problem for businesses and therefore continued support in this area is essential.

So, how do we fund all of the above activities against a background of reduced public funding? Well it’s about looking for innovative ways of spending less rather than tax increases. We live in a world where technology and streamlined processes can easily be used to provide a more co-ordinated way of managing public procurement; taking a more dynamic approach to programmes and allowing the public sector to quickly benefit from changes in services and technology. For example, buying shared services across multiple public sector organisations to get economies of scale, simple procurement frameworks allowing smaller SME businesses to work with government, etc.

With the right overall plan, none of the above are beyond the capability of the current or future governments. Let’s hope it’s on their agenda.

I am delighted to provide you with a link of recently published Global Information Technology Report 2009-2010 where I very proudly contributed. The report highlights the key role ICT can play as an enabler for a more economically, environmentally and socially sustainable world. Produced by the World Economic Forum (WEF) in cooperation with INSEAD, the report that is closely watched every time for its rankings puts Sweden at the top of its Networked Readiness Index table. The report presents an interesting picture of sustainable growth opportunities across the world. With healthy trends in GDP growth in emerging economies, information and communications technology (ICT) driven approach has become an ever-important enabler of renewed and sustainable growth by being a key element of infrastructure. Crucial to this though would be the adoption of models that enhance sustainable growth across the board.

The trends of huge increase in consumers in the global marketplace means that individuals in increasing numbers would be taking advantage of the enhanced infrastructure and seek improvements in their living standards. The report, interestingly throws light on how countries and industry sectors across the world are poised to handle this growth. It underpins ICT as a crucial driver, both in terms of increase in productivity as well as supporting sustainability.

Leveraging ICT has many benefits for the three stakeholders - governments, businesses, and societies – and can significantly improve their effectiveness of operations and quality of services. The report also looks at how ICT could be a driver in economic, environmental and social dimensions.

Across the entire spectrum of industries, there is a trend of creation of new services or the modification of old ones to cater to the demands of the new consumer segments. Whether it is transportation, communications, retail, energy, education, infrastructure or healthcare, there is a need to constantly innovate on the service front. ICT plays a crucial role by enabling collaboration across borders, connecting the crucial nodes between people, machines, organisations, economies and governments. In the strategy framework, ICT can become a big enabler by supporting business models that enhance environmental viability.

My piece in the report  (Chapter 1.10) explores the impact of technology, innovative business models, and policymaking on environmental sustainability. While the innovative combination of these three factors play a critical role, ICT companies can leverage their abilities in smart information management and create new services that positively influence human behaviour to combat the climate challenge. This benefits company, society, and government in a triple win-win-win scenario.

Smart buildings, smart grids, effective and efficient energy use and other innovations that support reduction of CO2 emissions are supported only by implementing an appropriate ICT infrastructure. For example, ICT-based rewarding of green behaviour, travel-optimising solutions, use of green Intelligent Transport System (ITS) solutions, or allowing consumers to make carbon label based choices at the point of sale can really enlighten, inform, and support behavioural change for the green model to succeed. There is no doubt that these are also huge economic opportunities for the ICT sector.

The new sustainability outlook offers an immense opportunity where ICT can induce and catalyse pro-green behavioural changes through innovative, smart business models. There is a lot of good reads at http://www.weforum.org/gitr.

We have launched the third edition of our Global Innovation Venture Partner (GIVP) Programme.

 

This programme has proved to be very successful for our partners, clients and us. In the third year of its successful running, it has helped us identify and partner with new companies with great new technologies ahead of their becoming mainstream technologies. This has not only helped us add value to our clients’ businesses much earlier in the value-chain, but has also recognised the essential role these new companies play in driving real IT innovation and client value. You can read and watch what our 2009 winner – Appear Network’s CEO - has to say about how business and value driven the programme has been for his company.

 

Like in previous years, we are eagerly looking forward to talk to all the innovative product/solution companies that are waiting to be taken to global markets. I am excited by this opportunity that this structured programme will provide.

 

We are committed to long term collaboration. I look forward to the new creative solutions that we and our innovation partners can be brilliant together with, for our clients. And, I would of course be delighted to hear from you. Nominations could be submitted here. You can also write to us for any queries.

 

 

The importance of research and development in maintaining a company’s competitive edge and growth needs no introduction. However, companies that have traditionally engaged in research as the innovation driver are increasingly finding it difficult to sustain such initiatives. In today’s competitive and fast-paced business environment it is not enough to depend on one’s own, isolated Research and Development (R&D) programmes to incubate and build innovative products or processes. Besides, traditional R&D is no more the only major driver of innovation in a company – cross-functional collaboration within the organisation has emerged as a vitally important factor in driving innovation.

 

As companies strive to move faster in development and in response to increasingly competitive global markets, the need to collaborate for innovation acquires emphasis. Collaborative innovation requires companies to review their strengths, invest in them, and bring in partners to invest in complementary areas.  It is the synergy between collaborating partners that will ensure collective competitiveness and growth for all partners in future.

 

The CED mantra

 

In modern day corporations, conventional R&D is being replaced by collaborative innovation, whose essence could be represented by three words: Collaborate, Evolve & Develop.

 

The key requisite for any corporation that wants to remain at the forefront of innovation is to tap into the creative minds and energies within, and more importantly, outside its own walls. Collaboration with people within an ‘ecosystem’, in which innovative ideas can be nurtured and brought to fruition, needs to happen consistently.

 

New technologies have always been created as a result of new ideas being exposed to a wider environment, an ‘ecosystem’, where they evolve. Ideas flourish within such ecosystems, where their cross fertilization with each other can be facilitated, taking each idea to the next level. Human civilization has evolved to a level where it is possible to create radical concepts and breakthroughs based purely on innovation. Today, taking diverse elements from different baseline knowledge nuggets and synthesizing them into a new concept is a valid path to breakthrough innovation. In today’s global economic scenario, attempting to take an independent path to innovation may not be prudent; the value creation capability now lies in co-creation and collaboration. This, in essence, is what “Collaborate, Evolve and Develop” is all about.

 

Power of loosely coupled, collaborative networks

 

Compared to the traditional R&D paradigm, the ‘Collaborate, Evolve, Develop’ (CED) approach lends itself to better integration between departments and closer partnerships with suppliers and customers, thereby enhancing capabilities. In today’s Internet era, where information is accessible anywhere on the globe, closed groups and companies are giving way to loose, collaborative networks where small contributions have the potential to deliver big value, through collaborative innovation.

 

Making CED work

‘Boundary-less’ Organisations

 

An environment to support CED must have the capability to facilitate formation of heterogeneous virtual teams that include professionals, students, researchers, laboratories, academia, technology buffs and business experts from all over the world. The primary intention here is to create a foundational framework that meets the twin challenges of creating an open development environment and speeding up new product or service development at lower costs.

 

The network to connect the CED partners should be distributed, secure, scalable, easy to access, and must allow qualified third-party collaborators. The platform should provide a set of components that can be used to create simplified interfaces to new services. By supporting more third-party developers, content providers and business leaders, the CED approach can bring about the creation of new, value-added services faster, more consistently and with less expense.

Cultural Catharsis  

 

As always, the human element is arguably the most significant aspect of the approach, or the stitch-over to this approach. To make any strategy effective in an organization, it is vital to develop a supporting culture to ensure its success. CED can help generate solutions, business-viable offerings and unprecedented opportunities. But once an idea or proposition gets into the development cycle, the prerogative to deliver, market and sell it lies with other functions of the organization. Companies that have a history of R&D based innovation have to deal with the transition to the CED way of innovating – the un-learning before the new learning. It is important to communicate with all involved functions and motivate the organization towards a gradual shift to CED-centric approach for innovation.

 

Leadership in the company needs to understand and acknowledge the inertia and cynicism of employees to any change, CED being no exception. It needs to be introduced carefully, citing examples of success stories that people can relate to.  The competencies of employees need to be harnessed and insecurities need to be managed skillfully. A change management plan along with a phased manner of educating employees about the new strategy is essential. All this should align with the end-goals envisaged by CED for all the participants.  The idea that collaborating on product development will allow the employees to work on their areas of core competency more effectively should be used for motivating them. At the same time, partners need to engage in an open, inclusive and trusted manner so that there is a genuine feeling of camaraderie.

 

The central idea is to exert steady pressure on the existing culture, to affect a continuous shift from a resistant, “not invented here” mind-set to one that appreciates and allows the best ideas to rise to the surface, with the ultimate goal of increasing revenue and the profit pie for all.

 

Action to Create an Environment Conducive to Innovation

 

Executives who expect to lead innovation in their companies must adopt a set of essential strategies for bringing about such achievements. The changes they need to bring about start with the executives themselves – they need to:

 

·          Develop a non-punishing environment where ideas for improvements are encouraged. While improvements do not automatically lead to innovation, the facilitation of ideas lay the ground work for environments that lead to innovation.

·          Encourage experimentation without fear. This begins with relaxation of the constraints within which staff has to operate. The more controlled the environment, the less the chances of innovation potential being released.

·          Remember that innovation is not about quantity - one innovative idea may payoff for everything till then and for the future.

·          Encourage innovation in staff through public recognition or rewards.

·          Draw up a publicly acknowledged code of practice that applies to everyone.

·          Create pressure-free environments to facilitate innovation – a tense or exhausted mind is not going to generate new ideas.

·          Encourage individual and collective reflection.

·          Encourage individual and collective learning (particularly action learning), evaluation, and individual and collective criticism.

·          Encourage focused thinking (objectives-oriented, client-oriented, result-oriented, etc.) and project-based organization of action.

 

In his famous book “The Innovators Dilemma”, Clayton Christensen writes that even the best-managed companies, in spite of their attention to customers and continual investment in new technology, are susceptible to failure no matter what the industry. Disruptive technologies from new and nimble entrants are at the heart of this “natural selection” process, just as tiny, adaptable mammals surpassed the once mighty dinosaurs.

 

The relevant question to ask today is - do you want to continue on your traditional R & D path, fraught with high risks, huge capital outlays, bureaucracy and long incubation cycles? Or are you open to a CED ecosystem that allows trusted partners to share some of the risks and rewards? Remember, they could be your competitors tomorrow.