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1-Fenn Et - Al. (2020) - Jump-Start Your Innovation Journey
1-Fenn Et - Al. (2020) - Jump-Start Your Innovation Journey
Analyst(s): Jackie Fenn, Mary Mesaglio, David Cearley, Irving Tyler, Erik Van Ommeren, Darren Topham,
Peter Skyttegaard
In the digital era, business change is the new normal and innovation is
essential to success. Yet navigating the expanding landscape of innovation
approaches can be intimidating. CIOs can use this innovation framework to
design innovation roadmaps that deliver high-value business outcomes.
FOUNDATIONAL DOCUMENT
This research is reviewed periodically for accuracy. Last reviewed on 29 April 2020.
Analysis
Deciding on the best approach to drive innovation is a growing challenge for CIOs and other
business and strategy leaders. The pressure to innovate through technology is constant, and the
range of approaches available to potential innovators is expanding. This leads to a situation where
many innovation leaders know that they have to “do something” but are unsure exactly what that
something should be.
To address this problem, Gartner has developed a framework (see Figure 1) that helps CIOs and
other innovation leaders take stock of their goals and current situation. Based on that information,
they can determine which innovation approaches and activities are likely to yield the best results.
The model is applicable to all types of innovation, not just technology-focused or IT-led initiatives.
■ Impact — Organizations may want to increase the level of ambition of their innovation. They
may be successful at small-scale, incremental innovation, but want to establish ways to
generate and purse bold ideas and manage the accompanying risks.
■ Pipeline — Most organizations have some level of innovation success, but it may be occasional
and ad hoc. To improve the predictability, frequency and quantity of successful innovation,
organizations may aim to become more deliberate in generating a pipeline of ongoing
innovation through a repeatable innovation process.
■ Pace — A common pitfall of innovation projects is that they lose momentum after the first flush
of enthusiastic prototyping. Projects becomes delayed due to funding, approval, handover,
scaling or other issues associated with force-fitting innovation into traditional processes with
long cycle times. A common objective is to speed up the pace of innovation, particularly in
terms of increasing the speed of decision making about whether to invest further or not.
■ Involvement — Somewhat orthogonal to the three other areas, many organizations decide that
they want to be more inclusive in their approach to innovation (rather than, or in addition to,
having full-time innovation specialists). This includes internal innovation initiatives to improve
the “culture of innovation” as well as the desire to open up to external partnerships.
Table 1 shows examples of how differences in business and innovation goals are likely to impact the
design of your innovation journey.
To develop new business Create an innovation lab with full-time resources to identify and explore new
models, or major new approaches and opportunities.
product or service offerings. Incubate internal teams to run with specific ideas.
Work with startups or incubators to identify new or adjacent approaches.
Create a new product development team.
To improve existing Run an innovation challenge for employees, customers or other stakeholders.
products and services. Create an innovation or emerging technology team to identify potential technology
advances or other ideas to trigger new capabilities.
To surface bold new ideas. Run a shark tank/dragon’s den competition where employees can pitch big ideas.
Run moderated workshops or design sprints with creative-thinking triggers (for
example, a stretch goal).
To create an ongoing stream Define an innovation process that emphasizes end-to-end completion, and appoint
of innovation. someone to track process strengths and challenges over time.
Create a cadence of innovative ideas through full-time teams or regular events.
To create a culture of Ensure that executives expect and ask all areas of the business to innovate.
innovation. Work with HR to ensure that incentives, key performance indicators (KPIs) and bonuses
demonstrate that innovation is valued as part of people’s “day jobs.”
Provide opportunities and time for employees to contribute to innovation.
Implement innovation “hacks” that directly drive behavior change (see “The Art of
Culture Hacking”).
Both business and innovation goals need to be specific enough that success can be measured.
Many innovation initiatives are launched with vague goals, such as “our CEO wants us to innovate
more” or “we want a culture of innovation.” While these may be worthy goals, they are not specific
enough to guide innovation planning. Innovation leaders need to determine which aspects of the
business are targets for innovation and what successful business outcomes look like. Is the goal to
create new, industry-changing business models, to launch a customer-centric innovation
competency, or to improve a specific business process? Would cost savings of $300,000 be a great
outcome, or are you looking for the next billion-dollar revenue opportunity? For the innovation goals,
is it okay to lock three smart people in a room until they come up with a big idea, or is the goal to
involve more employees in innovation activities? Will you achieve your business goals through
internal innovation activities, or do you need to develop an ecosystem of external contributors?
Specific goals support the creation of relevant metrics that allow progress and results to be
measured.
■ The organizational or corporate climate, such as how willing your organization is to embrace
change
■ The nature of your innovation program, including how experienced you are and what resources
are available
■ Innovation focus and targets, such as whether you are aiming for a large number of incremental
innovations or a small number of game-changers (Note that focus and targets are largely
determined by your innovation goals.)
Some of these contextual factors will seem like “givens,” and some will clearly be choices that an
innovation leader makes. However, one person’s choice is another person’s “given.” As an
innovation leader, you may find yourself responsible for setting business or innovation goals
(particularly the latter), or you may find yourself on the receiving end of someone else’s. For
example, if an executive tasks you with leading a distributed, part-time innovation program, then a
lack of full-time staff is part of your context.
It is worth noting that context is rarely set in stone. You could choose to push back and persuade
your executive that full-time effort and additional funding will be required to meet the company’s
innovation goals, thus resetting the context. Even a seemingly immutable context can potentially be
changed. For example, if regulatory issues are hampering your innovation efforts, then you could
certainly try to work within the constraints of the regulations. However, you could also decide to
create a cross-industry effort to work with regulators to update the requirements, or to launch
anyway and address legal repercussions later (as Uber and Airbnb did).
Part of your growth as an innovation leader is knowing when and how to work within a given context
and when you will need reshape the context in order to meet your goals.
Principles are guidelines that help people know how to behave at key decision points. They are
most useful when a reasonable person could argue the opposite (for example, a principle like “We
strive for innovation excellence” is not particularly helpful, as nobody would deliberately strive for
innovation mediocrity).
Table 2. Examples of How Innovation Context and Principles Impact Choice of Innovation Activities
Examples
Where appetite for risk is low: Where appetite for risk is high:
■ Ask users or customers for ideas ■ Understand new business models
■ Contract with external service providers ■ Establish and leverage relationships with incubators and
startups
■ Create a business case for an innovation
■ Spin off new unit/company to develop and deliver
Funding
■ Bootstrap growth from small successes ■ Establish stage gates for decisions on ideas/
opportunities
■ Hire interns
■ Hire innovation staff
Technology Focus
■ Organize: The Organize layer contains the activities for designing and maturing innovation
programs and initiatives, including nurturing a culture of creativity. Selecting the right activities
from the Organize layer will mature your innovation competency from accidentally innovative to
intentionally innovative.
These essential, high-level activities could be performed in many different ways. It is in the details of
how (and how much) these activities are performed, and who performs them, that we encounter the
broad and ever-growing set of innovation choices. We have identified over 100 innovation activities
in the Organize and Execute layers, as shown in Figures 3 and 4. For details and definitions of the
activities in the Organize layer, see “Organizing for Innovation: Maturing From Accidental to
Intentional Innovation.” For an exploration of activities in the Execute layer, including a discussion of
commonly used innovation processes, see “Executing on Innovation: Design the Process From Idea
to Value.”
An ideal design flow starts with defining business and innovation goals and assessing (and possibly
adjusting) the context and principles to create a unique profile for your situation. This profile can
then be applied to filter the space of available activities down to those that are most likely to
achieve your goals and to design a plan of action, or roadmap, based on those activities.
We saw in Tables 1 and 2 how different goals and context would lead you to prefer different
innovation approaches and activities. Some of the options form a spectrum of choices. For
example, Figure 5 shows a range from simple, low-cost activities that tend to lead to incremental
innovation (such as asking customers and users for ideas), to ambitious, high-investment activities
that are more likely to generate bold new approaches (such as working with startups and incubators
or acquiring a company). Figure 6 shows increasing levels of investment in innovation resources,
which are likely to correspond to the quantity, quality and frequency of innovation generated.
IP = intellectual property
Recognize that we are providing a framework and, as such, it is not intended to provide the
complete list of possible framework elements. There may be goals or context factors unique to your
situation that we have not included in the lists of examples. For example, you may need to consider
specific personalities or political situations, or a disastrous earlier attempt at a particular innovation
approach that has soured the company on trying it again for a while.
While we have presented an ideal design flow from determining goals to identifying contexts and
selecting activities, reality is far messier. An innovation leader’s entry point into this decision-making
framework may start anywhere, including at the activity level. For example, you may be faced with
one of the following situations:
■ “We want to use the upcoming employee off-site to run some innovation workshops. What
should they focus on?” (Answer: Short workshops are great for creative idea generation and
problem solving, so you will need to identify some worthy business goals or problems to
address.)
In these cases, it is important to consider what goals would represent successful outcomes, but the
goals will be shaped by the activities selected (see Figure 7).
Four of these common scenarios are featured below and in the referenced research notes as
prototypical innovation “patterns.” Each pattern consists of a profile of a specific organization’s
Profile: This pattern features Marci, the CIO of a Roadmap: Marci should run through lightweight goal-setting,
not-for-profit organization. Government funding for planning and program design activities, in particular designing
her organization is being cut back, so Marci sees an end-to-end process that focuses on working closely with
an opportunity to do more with less through other areas of the organization. However, she should not wait
technology and innovation. She wants to start with too long to start moving some ideas forward, and will most
generating ideas from within her IT organization, likely need to build on small successes to establish IT’s role as
focusing on the role of technology to improve a driver of innovation. Her process will include ongoing scans of
processes and potentially transform how the relevant technologies and problem-focused exploration of
enterprise delivers services to its customers. Marci technology-driven solutions. She may decide to assign a small
is starting from a position of low organizational number of staff full time to scanning, investigating and
innovation experience and skills, but there is evaluating emerging technologies and their business impact, or
executive recognition of the importance of may use existing roles such as enterprise architects. If
innovation in the current climate. resources are particularly tight, she may opt to set aside a
certain number of time-bounded projects for innovation
activities and staff them based on who is available.
Profile: In this common innovation pattern, Sergio Roadmap: Sergio should begin by assessing the cultural goals
is head of innovation and strategy at a midsize and current situation, including the obstacles employees face in
healthcare organization, reporting to the CIO. A trying to innovate, and the “bright spots” where success is
recent employee engagement survey has shown occurring. He may decide to create a team to perform
that innovation is one of the core values of the assessments; lead change management activities such as
organization, but since people are too busy with From/To/Because modeling; and work with HR on training,
their regular jobs, they don’t feel they have incentives and metrics. The activities of this team would not
opportunities to contribute to innovation. The CEO involve “doing” the innovation itself, but rather mentoring,
has asked Sergio to help promote a culture of coaching and supporting others. In particular, the team will train
innovation that leverages broad employee managers on innovation techniques and how to introduce
contributions. Although Sergio reports within the IT behavior “hacks” that shift mindsets toward a willingness to
organization, his scope covers promoting any experiment. The team will also organize activities that give
innovation from any employee. employees opportunities to contribute to innovation (such as
hackathons or “shark tanks”).
3. What’s Your Problem Pattern: Solving challenging business problems and opportunities
Profile: As director of strategic operations at a Roadmap: Michael needs to find ways to free up employees’
plastics manufacturing company, Michael leads time, and focus their attention on key problem areas and new
business process and technology improvements in opportunities. With no dedicated resources, he also needs to
manufacturing, operations, customer service and gain buy-in from other executives. Michael should develop
other processes. Although the company is relationships with line managers and supervisors to identify
conservative and operates within a commoditized problems that they deem worthy of attention, then agree on
industry, Michael sees strong potential to tap into ways to involve their people in problem-solving activities. He
an experienced workforce for ideas on how to can minimize objections from managers who say, “We don’t
improve or even reimagine processes, and drive have time to innovate,” by focusing on activities that use short
more personalized full-service offerings to but intense bursts of teamwork, such as workshops, design
customers. There will be no dedicated innovation sprints or one-day competitions. Within these activities, he can
staff or funding. pose challenges, introduce creative-thinking triggers and train
people on innovation methods. Based on successes, he can
4. Rock the World Pattern: Making big bets on future product and service opportunities
Profile: In this pattern typical of industry leaders, Roadmap: Maggie should start by setting clear goals for the
our fictitious persona Maggie is the head of lab, including scope, timing, handoffs and relationships with
technology services at a leading insurance other innovation programs inside the company. She will need to
company. The new CEO is excited about digital establish relationships with internal stakeholders and business
transformation. The company already has leaders, and also with outside parties that may form part of the
innovation initiatives investigating data analytics innovation ecosystem, such as incubators and startups. Once
and the Internet of Things, and has run several the lab is up and running, it can incorporate a range of
programs to involve employees in idea generation. innovation activities, including hosting strategic workshops for
Now the CEO wants to consolidate and expand executives, understanding new business models, establishing
innovation activities by creating a lab. The lab will testbeds for experimentation, and creating minimum viable
be a focal point for new partnerships with fintech/ products (see “Seven Best Practices to Create an Innovation
insurtech incubators and accelerators, and home to Center”). Maggie also needs to preplan the potential paths to
a team of 30 staff members involved in transfer or spin out successes, as moving ideas beyond the lab
investigating and prototyping new technology is likely to be an ongoing challenge.
solutions and service offerings. Maggie is taking the
lead in setting up the lab, which will report to her
once it is running.
1. Create a profile of your innovation goals, context and principles. Discuss and socialize the
contents of the profile with your leadership team, other executives, the board and other relevant
stakeholders.
2. Select which of the four scenario and profile descriptions most closely matches your own (or
combine them as appropriate), and use the corresponding recommended approaches and activities
as a starting point to design your innovation journey.
3. Review the full set of innovation activities in Figure 3 and to identify additional activities that look
appealing in terms of matching your goals and culture.
4. Work with your Gartner advisors (innovation analysts, executive partner or leadership partner) to
customize your approach in more detail. In the event that none of the four patterns is a close
enough match, we can work with you to generate relevant customized recommendations.
These patterns should be viewed as starting points for customization, not as cookie-cutter solutions
for every situation. As shown in Tables 1 and 2 and Figures 3 and 4, there are always multiple ways
to approach the design of your innovation journey. Note also that you may choose to combine
elements from multiple patterns; for example, if your IT organization embarks on an initiative to both
drive technology-led innovation and enable a culture of innovation more broadly within the
company.
Research Highlights
The following research notes form part of this linked set of research:
■ “Successful Innovation Begins With the Business Strategy: Use Business Objectives and Goals
to Start Your Innovation Journey”
■ “Your Context and Principles Are Key When Starting an Innovation Journey”
■ “Organizing for Innovation: Maturing From Accidental to Intentional Innovation”
■ “Executing on Innovation: Design the Process From Idea to Value”
■ “IT Instigators: Design Your Roadmap for Proactive IT Innovation”
■ “Culture Crush: Design Your Roadmap for a Culture of Innovation”
“What a World-Class IT Innovation Charter Should Contain and Why You Need One”
“Create a Research Engagement Plan to Advance Your Innovation Culture and Processes”
Evidence
This research has been developed through conversations, inquiries, interviews and visits with
experienced innovators within our client base.
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