Innovation. Bringing Creative Ideas to Life. Markus Fromherz, Chief Innovation Officer, Healthcare, Xerox June 2013

Transcription

1 Innovation Bringing Creative Ideas to Life Markus Fromherz, Chief Innovation Officer, Healthcare, Xerox June 2013

2 Outline Defining innovation Roles and processes Innovation challenges Examples in healthcare Conclusions Q&A 2

3 Innovation is Innovation is invention brought to commercial use. Invention means new ideas. Commercial use means impact. Innovation creates differentiation. Innovation saves cost and generates new revenue. Innovation keeps us in business. Innovation in healthcare saves lives. 3

4 Types of innovation: strategic intent Spectrum Ex. customer service Sustaining: do things better Transformational: do things differently Call center agent augmentation Interactive voice response Disruptive: do different things Mobile self-service app 4

5 Types of innovation: strategic intent Spectrum Ex. infant airways Sustaining: do things better Transformational: do things differently Process improvements Vent-less airway opening Disruptive: do different things Premature birth prevention 5

6 Different Measure of Performance Performance Disruptive innovation Why sustaining innovation is not enough Sustaining innovation (continuous product/service improvement) most demanding customers Disruptive innovation: low-end disruption (compete for overserved customers with lower-cost offering) least demanding customers nonconsumers Time Disruptive innovation: new-market disruption (compete against nonconsumption) Time [Clayton Christensen: Innovator s Dilemma, Solution] 6

7 How about continuous improvement? Continuous improvement is a form of sustaining innovation (e.g., Six Sigma) Comparison teaches us what to look out for when pursuing both: distinct goals: optimizing the existing vs. creating the new risk tolerance: decreasing vs. increasing variation (and allowing failure) metric: driving for efficiency vs. looking for differentiation skills: process focus vs. entrepreneurial drive Managing multiple types of innovation: requires different kinds of people should both report to the same executive team should be managed under a different set of rules 7

8 Improvement approaches There are many methods to identify opportunities and get ideas Lean Six Sigma Root Cause Analysis Plan-Do-Study-Act Failure Modes and Effects Analysis Customer Led Innovation Customer-Inspired Quality Often a key requirement for success: making the case Business case analysis! For examples, tools, and templates, see, for instance, Society of Hospital Medicine ( 8

9 Moving beyond sustaining innovation From doing things better to doing things differently or doing different things. Typical innovation focus: product/service improvements How can we make this better? Expanded innovation focus: the job to be done by the offering What is the customer trying to achieve? People don t want to buy a quarter-inch drill. They want a quarter-inch hole! [Theodore Levitt] Implications for strategy, idea search, patient interviews, etc. 9

10 Types of innovation: business focus What: offering innovation (technology, platform, solution) Who: customer innovation (experience, value capture) How: process innovation (operation, organization) Where: presence innovation (supply chain, channels) Robert Wolcott s 12 dimensions of innovation 10

11 Strategy development Technically not part of innovation, but an essential prerequisite 3 Trends opportunities & threats, external 2 Current State strengths & weaknesses, internal 4 Strategic Plan actions to reach the strategic goal from the current state in light of the trends, build/buy/partner 1 Strategic Goal desired state, short and long-term 11

12 Organizing for innovation Customers Corporation Xerox Innovation Group Customer Engagement Strategy Council Group Group Business Group Innovation Steering Committee Strategy Marketing Explore Incubate Develop Commercialize Business Dev. Sales Development Delivery Open Innovation External Innovation Partnerships 12

13 Innovation steering committee Purpose: Manage the process Ensure ideas are realized Foster visibility Membership: President, Chief Innovation Officer Department directors Directors of strategy, business development, marketing, development, IT, sales Prototypical monthly agenda: 13 Previous action items, highlights Innovation pipeline and project progress 1-2 focus projects New ideas Customer engagements and partnerships Feedback and action items

14 Idea challenge Purpose An idea challenge* is a concerted effort to collect, develop, and review a large number of ideas for a given theme in a bounded amount of time. Initially, plan to conduct one idea challenge per quarter. Ideas can still be submitted at any time throughout the year, but plan to concentrate your efforts on the idea challenges. Process Idea challenges use the regular ideation process and resources, except that many ideas will be reviewed together. Schedule Week 1: announce challenge and theme Week 2: submit and comment on ideas, using the IMS Week 3: sort ideas into local, organizational, and shelve (Monday); fill out IRF for nonshelved ideas (Tuesday-Thursday); review and decide (Friday) * or idea jam, idea campaign 14

15 Innovation process It s not just about creativity and ideas Ideate Explore Incubate Develop Commercialize Genius is 1 percent inspiration and 99 percent perspiration. [Thomas Edison] The best way to have a good idea is to have a lot of ideas, and throw away the bad ones. [Linus Pauling] 15

16 Technical Newness Strategic intent portfolio view Innovation project portfolio reflects mix of ROI horizons Positioning Options Central Innovation Stepping Stone Options Market Newness 1 Well-established market for Xerox with significant share. 2 Established market for Xerox, but not a market leader. 3 Existing market that Xerox has recently entered. 4 Existing market, but new to Xerox. 5 Market new to the world; may be defined but not yet established. Continuous Improvement Enhancements Department Innovation Next-gen Platforms Scouting Options Market Newness Technical Newness 1 Commoditized technology, widely available, no competitive advantage. 2 Technology productized by Xerox, also exists elsewhere, still competitive advantage. 3 Technology exists within Xerox and a few other labs, recently productized but not by Xerox. 4 Technology is new to Xerox but not elsewhere; not yet productized anywhere. 5 Technology is new to the world; does not exist elsewhere. 16

17 Roadmap to innovation competency Start Assemble an Innovation Steering Committee Define strategic priorities for your organization Manage existing innovation projects Accelerate Develop new ideas Prioritize ideas Explore and incubate ideas Transform Enroll everyone in innovation Train, support, make room for innovation Develop and explore transformational and disruptive ideas 17

18 Mindsets to be aware of Do Be externally focused Recognize that your first idea is wrong Treat innovation as a marathon Fight the sucking sound of the core Don t Force your view onto the market Plan too long before acting Throw too many resources at a problem Get seduced by too many opportunities Create a separation between innovation and operation Punish risk takers Be impatient for growth 18 [Scott Anthony, The Little Black Book of Innovation ]

19 Examples of disruptive innovation futureofhospitals.org 19

20 Catholic Health Initiatives Challenge Focus on hospital and medical needs, ignoring issues such as access (transportation, ability to pay) Solution New infrastructure for the delivery of healthcare that shifts the central focus from the acute-care hospital to outpatient facilities and the home Expanded its relationships with physicians and has acquired other ambulatory organizations, including a home care services organization, to offer more outpatient care Impact Shift to preventing sickness and maintaining people s health in addition to treating sick patients View patient care as customer relationship management 20 We re organizing our physicians, hospitals and ambulatory healthcare delivery network providers into a more rational system. Juan Serrano, SVP, Payer Strategy and Operations, CHI

21 Hackensack University Health Network Challenge Better serve the community and patients while maintaining a stable financial position Solution Focus on other areas of business growth to compensate for reduced admissions Formed joint venture partnership with community physicians and United Surgical Partners International in the acquisition and operation of two ambulatory surgery centers, established a clinical affiliation with MinuteClinic Impact Helped lead the way toward opening areas of opportunity for other aspects of care 21 Hospitals and health systems across the country are facing a state of controlled schizophrenia. Robert C. Garrett, President and CEO, Hackensack (N.J.) UHN

22 Intermountain Healthcare Challenge Population health management, identifying health trends in the community Solution Process to identify such trends and implement improvements Use data as a driver for disruptive innovation, e.g., hot spotting, patient activation Impact Potential to dramatically improve quality and reduce cost It s really thinking about healthcare differently. We re not just thinking about healthcare; we re thinking about wellness. We re not just thinking about patients; we re thinking about people. Lucy Savitz, Director of Research and Education, Institute for Health Care Delivery Research, Intermountain Healthcare 22

23 Advocate Illinois Masonic Medical Center Challenge Disruptive technologies and patient actions and demands such as home medical testing and Google self-diagnosis can t be ignored Solution High-tech development creates an echoed demand to re-infuse medicine with a high-touch, integrated and compassionate approach Impact Each patient is best served by coordinated, patient-centered care In my experience, disruptive innovation is a reminder of what we can t afford to leave behind. Listening to patients is critical not just to what they say, but to what their actions tell us. Susan Nordstrom Lopez, President, Advocate Illinois Masonic Medical Center 23

24 Future of the hospital For over 100 years, the hospital has been the core of our healthcare system, and a pillar of every community the central hub where people enter and leave this world, and where scientific discoveries become life saving procedures. But in the last couple decades, technological, social and economic forces have chipped away at this model. As these trends continue making traditional clinical environments punishingly expensive to run, and increasingly less necessary for many healthcare needs the future of the community hospital is uncertain

25 Screen Shot at PM Future of the hospital 25

26 Conclusions Support your innovation with structure and processes Consider a portfolio of innovation pursuits Inform your innovation with data, then ideate and prototype Look for opportunities (and threats) from disruptive innovation 26

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