Internal Domain Components of iSAM

The internal domain focuses on a company’s internal innovation infrastructure and processes. Within the internal domain of both the business strategy and IT strategy in the SAM, three components are described, which represent three sets of choices managers need to address. We postulate that three similar sets of choices are required by managers in relation to internal innovation infrastructure and processes. These are:

1. Innovation Model & Processes: The choice of which innovation model to apply and the choices that define the detailed innovation work processes. From a model perspective, this is analogous to the internal business administrative structures, which define the roles, responsibilities and authority structures. From a process perspective, this is analogous to the design of the internal business processes required for the company to execute its business strategies.

2. Innovation Systems: The innovation systems are the IT systems selected to support the innovation processes. This is analogous with other IT systems in companies which support either the core operations of the company or the support functions such as HR and Finance. 3. Innovation Skills: The choices related to the identification, acquisition and development of the necessary skills to drive successful innovation. This is analogous to the skills required within the business domain to successfully implement a specific strategy.

4.2.1 Innovation Models and Processes

The choices for this component involve which innovation model to apply and subsequently which are the most appropriate innovation processes to implement. The innovation literature describes a number of different innovation model categorisations [43], [44], [5]. IBM’s innovation archetypes

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provide a description of different overall innovation models [28]. As opposed to other forms of innovation model categorisation, which are very focused on specific attributes such as leadership or maturity, these archetypes provide a general approach to innovation which is determined by the Innovation Strategy and impacts all other aspects of innovation in a company. These archetypes are the marketplace of Ideas, the visionary leader, systematic innovation and external collaborative innovation.

Innovation processes can vary greatly from company to company, even if two companies have similar innovation models. The innovation processes describe the way in which a company has decided to implement a specific innovation model. They include the detailed operations of the innovation lifecycle and should include the following information:

• Detailed activities

• Inputs and outputs

• Roles and responsibilities

• Required documentation

• Application of tools and systems

• Measurement and control functions

Innovation processes can be mapped using any standard process mapping techniques and set of constructs. The process maps may include different levels of detail, depending on the complexity of the processes. The aim of the innovation process maps are the same as any other process maps, they visually represent reality and provide a common view and understanding about the way a company’s detailed innovation activities operate. They also provide a platform for improvement activities as they represent the “AS-IS” situation in traditional change processes.

The choice of specific innovation processes in a company is influenced by the preferred innovation model. These innovation processes are then designed to support this preferred innovation model. More rigorous collecting, filtering and decision making processes are required to support the “marketplace of ideas” innovation model compared with the “visionary leadership” model. The processes required to support the “systematic” innovation model should focus far more on translating the customer’s needs into research and development activities and then into new offerings. The processes required to support the “external collaboration” model should be designed to identify and manage innovation partners. It should seldom be the case where the innovation processes influence the selection of an innovation model.

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4.2.2 Innovation Systems

The choices of innovation systems are very much dependent on the choice of innovation model and the subsequent innovation processes. However, there are standard categories for IT systems, which support the innovation process. These systems can be categorised into those which support the creativity process, those which support the organisation and running of projects and those which support the innovation operations [161]. The creativity process requires IT to communicate and share challenges and opportunities and to collect and filter innovative ideas. When it comes to the organisation and running of projects, innovation friendly systems are required in order not to stifle the innovation processes. These systems can be used to manage the innovation portfolio and to evaluate the progress and outcomes of innovation projects. When it comes to the operations of innovation, document and knowledge management systems are required along with tools for rapid prototyping and simulation.

4.2.3 Innovation Skills

The choices for this component relate to the identification, acquisition and development of the necessary skills to drive successful innovation. This is analogous to the skills required within the business domain to successfully implement a specific strategy. Innovation skills can be classified into two broad categories: (1) skills required for innovation specific positions and (2) innovation relevant skills required by non-specific innovation positions. For innovation specific positions, like with all positions, job profiles, competency frameworks and performance management components need to be developed. For non-innovation specific positions, innovation components should be built into the job profile. Innovation skills should also form part of a company’s skills development and skills acquisition plans.

4.2.4 Relationship between Internal Innovation Domain Components

Relationships exist between the three components within the internal innovation domain or innovation infrastructure and process domain (Figure 11).

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Figure 11: Three Components within the Internal Innovation Domain

Models & Processes - System –: The choice of a specific innovation system in a company is influenced by the preferred innovation model and subsequent processes. The innovation system is designed and implemented to support the preferred innovation model. IT systems to support a bottom-up “marketplace of ideas” model, will be very different to systems designed to support a top-down “visionary leadership” model.

Models & Processes – Skills: The selection of a preferred innovation model influences the innovation skills required in a company. Different innovation models require different skills at all levels in a company. The current skill levels in a company should also be considered when selecting a preferred innovation model. Based on the current skill set, certain innovation models should be avoided until the necessary skills have been developed or acquired.

Systems - Skills: The innovation skills should be taken into consideration when designing/acquiring a specific innovation system. Companies with a low innovation maturity may require either a simpler system or one that automates more of the innovation process.