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About the author How to use this manager’s guide Introduction: Make sense of innovation   Challenge 1: Build a shared strategic vision of innovation   Innovation is today seen by many organizations as a key strategic issue. However those organizations often embark themselves into costly innovation initiatives without having a clear idea of what they want to achieve (they are inefficient), and why (they are ineffective). Too often they do not understand what innovation is about and they do not know why they want to innovate. The first challenge of innovation management is therefore to develop a shared strategic vision of:   1.1 What innovation means from a business point of view – more than creativity 1.2 How innovation unfolds over time as a process - beyond ideation 1.3 What are the different types of innovations firms can engage in - beyond new products 1.4 Why it matters - innovation management capabilities 1.5 What are the strategic innovation options – beyond new product development 1.6 What should drive strategic decision making regarding innovation – beyond hype 1.7 Synthesis – key insights   Challenge 2: Manage entrepreneurial ecosystems   A perfect innovation strategy is worthless if the firm does not have the organizational and entrepreneurial abilities to execute it. Innovations can strive only when people and teams across organizations and networks embrace change and make new things happen. This means being able and willing to experiment, learn and often fail. The second innovation management challenge is therefore to foster the right entrepreneurial behaviours at all levels: people, teams, organizations, networks and regional ecosystems.   2.1       Encourage people to innovate - corporate entrepreneurs 2.2       Build and lead effective innovation teams – balancing acts 2.3       Build innovation-ready organizations – how some elephants can dance 2.4       Develop innovative networks and collaborations – never walk alone 2.5       Create innovation ecosystems – lands of opportunities 2.6       Synthesis – key insights   Challenge 3: Identify attractive innovation opportunities   Innovation opportunities do not magically “pop-up” out of the blue, be it in R&D laboratories or brainstorming sessions. They emerge when organizations “learn to learn” from multiple internal and external sources, increasing their knowledge and intellectual capital by “thinking in new boxes”, colliding, maturing and combining multiple insights and inspirations. The third innovation management challenge is therefore to effectively identify innovation opportunities by developing the capabilities to systematically develop, screen, protect and combine both organizational and external sources of innovations:   3.1 Identify the sources of innovation opportunities – beyond R&D 3.2 Foster organizational learning – beyond ideation 3.3 Harvest and protect organizational knowledge assets – beyond patents 3.4 Integrate external sources of knowledge – proudly found elsewhere 3.5 Synthesis – key insights   Challenge 4: Develop a balanced portfolio of business models   Most innovation ideas do not lead to robust business opportunities, and most organizations pursue more innovation opportunities than they can actually handle. In order to effectively manage innovation they must therefore select the opportunities on one hand for which a convincing business model can be designed and on the other hand which collectively form a balanced and consistent portfolio. The fourth innovation management challenge is therefore to focus on the right portfolio of innovative business models.   4.1 Asking the right questions – business model design 4.2 Designing competitive business models – why and what 4.3 Mobilizing the right resources – who and how much 4.4 Valuing innovative business models – quantifying the unquantifiable 4.5 Building a consistent and balanced innovation portfolio – managing eggs and baskets 4.6 Synthesis – key insights   Challenge 5: Nimble execution: fail fast and win big   An innovation opportunity is worthless if it remains only an idea, a concept or a business plan. Successfully managing innovation therefore means developing the capabilities to effectively capture the innovation opportunities which have been identified as attractive by the organization. But innovation opportunities cannot be managed like “normal” corporate projects, where uncertainties are minimized and failure is the exception. The fifth and last innovation management challenge is therefore to effectively capture innovation opportunities through dedicated decision-making and project management approaches.   5.1 Nimble execution - learn cheaply and adapt quickly 5.2 Lean development – more brain, less storming 5.3 Smart money - funding innovation projects 5.4 Synthesis – key insights   Conclusion: More brain, less storming   Innovation is a means, not an end. Innovation is about making people change. Managing innovation is about developing the capabilities to mobilise your ecosystem and identify, select and implement new opportunities, in line with your objectives