PREFACE xiii

LIST OF ACRONYMS xvii

PART 1. THINK UP A METHOD 1

CHAPTER 1. INNOVATION: AN UNFINISHED JOURNEY 3

1.1. The journey as the end 3

1.2. Application of maturity levels in the innovation process 5

1.3. The effects of the knowledge society 7

1.4. What the current socioeconomic context indicates 8

1.5. Who can benefit from this book and how? 10

1.6. How to use this book? 12

CHAPTER 2. EVALUATING THE ABILITY TO INNOVATE 13

2.1. The art of change is not one-size-fits-all 13

2.1.1. Change is an awareness of a phenomenon’s time derivatives 14

2.1.2. Any system reflects the maturity of its subsystems 15

2.2. A failed timing translates into zero progress 16

2.2.1. When the emergency is in conflict with the ability to innovate 16

2.2.2. Moving up the time axis leads to influencing time 17

CHAPTER 3. A METHOD TO PROGRESS 21

3.1. Progress in the ability to innovate requires a method 21

3.1.1. Provide a starting point for the method 25

3.2. A new basis for competitiveness contributing to a greater whole 25

3.2.1. The importance of selected vocabulary 27

3.3. Two extremes revealing a relative immaturity 28

3.4. Evolving the concept of innovation 30

3.5. Controlling the acceleration is now the issue 31

3.6. An algebra of the different levels of maturity (Innovation Capability Maturity Model) 33

3.6.1. The progression route starts anyway from the lowest point reached 33

PART 2. A DISCOURSE ON THE METHOD 37

CHAPTER 4. TWO ESSENTIAL PRELIMINARY LEVELS 0 AND 1 39

4.1. Level 0 or “we are not concerned” 39

4.1.1. What is level 0? 39

4.1.2. An example at level 0 39

4.1.3. Examples of organizations at level 0 40

4.2. The level 1 or “Do it Right First Time” 41

4.3. Two examples where innovation at level 1 puts companies under death sentence 46

4.4. A company that innovates only by reaction to competition or market trends (general study case) 49

4.5. SWOT matrix at level 1 50

CHAPTER 5. LEVEL 2: NOT YET MATURE 53

5.1. Level 2 or “redo and, if possible, do better” 53

5.2. The SWOT matrix at level 2 58

CHAPTER 6. LEVEL 3: MATURITY IN TRAINING 61

6.1. Level 3 or “collective efficacy” 61

6.2. SWOT matrix at level 3 69

CHAPTER 7. MASTERING LEVEL 4 71

7.1. Level 4 or “collective efficiency” 71

7.2. SWOT matrix at level 4 81

CHAPTER 8. SUSTAINABLE MASTERY AT LEVEL 5 83

8.1. Level 5 or “dynamic, total and sustainable innovation” 83

8.2. SWOT matrix at level 5 91

PART 3. IMPLEMENTING THE METHOD 93

CHAPTER 9. HOW TO INNOVATE AT LEVEL 1? 95

9.1. Introduction 95

9.2. What is an innovation action at level 1? 96

9.3. What will these actions permit? 97

9.4. The functional dimensions of innovation activities 97

CHAPTER 10. INNOVATING AND CAPITALIZING AT LEVEL 2: RE-VISITING THE PAST FOR ENTERING LEVEL 3 103

10.1. Assembling the elements of an approach 103

10.1.1. Prerequisites for level 3 104

10.1.2. Set apart what is urgent from what is important 105

10.2. Who is going to lead the innovation approach? 106

10.3. How can we reconcile the three business functions above? 107

10.4. The innovability diagnostic phase 109

10.4.1. A true story 109

10.5. Questions and issues that resonate with level 2 110

10.6. A level 3 checklist to create an innovation upon request 110

CHAPTER 11. TO BUILD UPON LEVELS 1 AND 2 113

11.1. Driving innovation is a strategic activity 113

11.2. Advice when nominating the Innovation Steering Committee 116

11.2.1. More about breakthrough or disruptive innovation 124

11.3. An example of repeated yet spiraling innovation 126

CHAPTER 12. FORGING AND STRENGTHENING SYSTEMS TOWARD LEVEL 3 129

12.1. Preparing a culture change in the organization 129

12.2. Starting the innovation throughout the company 132

12.2.1. The first actions of the Steering Committee 132

12.2.2. Launching a communication and a training policy 132

12.2.3. Demystification – Awareness – Information – Education – Action 132

12.3. Constitution of the innovation team 133

12.3.1. The management group of the innovation portfolio 133

12.3.2. An innovation information system 134

12.4. The analysis group of customer needs 134

12.4.1. Innovation communication 135

12.5. Monitoring issues and management caution with level 3 135

12.6. When knowledge management comes of age 137

12.7. Is creating excess of knowledge an issue? 138

12.8. The paradoxical passage way from level 3 to level 4 139

CHAPTER 13. MANAGING THE DEPLOYMENT AT LEVEL 4 143

13.1. Changing the method 143

13.2. The moment where management is revisited out of necessity 143

13.2.1. The case of the smartphones market 145

13.3. Further notes on management 147

13.4. When ideas become projects and projects become successes 148

13.4.1. Firm is not a pyramid 149

13.4.2. “Headgear” the pyramid with the strategic vision 149

13.4.3. At the “heart” of the pyramid is an “anticoagulant” 150

13.5. Preparing level 5 150

CHAPTER 14. SUSTAINING LEVEL 5 153

14.1. A frequent misconception on the nature of level 5 153

14.2. The two logics prevailing at maturity level 5 155

14.3. Level 5 is all about rhythm and osmosis 156

14.4. The new art of managing at level 5 157

14.4.1. First indicator: knowledge originality (KO) rapport 159

14.4.2. Second indicator: hierarchical control (HC) rapport 161

14.4.3. Third indicator: innovation funding (IF) reserve rapport 162

14.4.4. Fourth indicator: market surprise (MS) rapport 162

14.5. The discipline of smoothing breakthroughs 163

14.5.1. On value as created and used 164

14.5.2. Diversity often leads to misleading divisional attitudes 164

14.5.3. Innovation winning systems (“martingales”) – when the approach becomes an automated and complete process 167

14.6. Why is level 5 “complex”?  171

14.7. A summary of all levels: the case of Apple through the years 174

PART 4. POSSESSING THE METHOD 177

CHAPTER 15. USING THE FIVE LEVELS TO PROGRESS 179

15.1. Implement a growth strategy first 179

15.2. Benefits and general challenges associated with the five maturity levels 180

15.2.1. The general benefits of the maturity level approach 182

15.2.2. General challenges related to the multilevel approach 183

15.3. The case of TMC Innovation scaled up through the five maturity level 185

CHAPTER 16. TOOL SHEETS FOR EACH LEVEL AND FOR INTER-LEVEL DYNAMICS 191

16.1. Summary sheets to assess the maturity of the innovation 191

16.1.1. Synthesis of information from a given level 191

16.2. Create dynamics with inter-levels 194

CHAPTER 17. GOING BEYOND THE FIVE LEVELS: A NEW OPERATIONAL CAPACITY 197

17.1. Opportunities brought by the five levels 197

17.2. The toxic impacts of innovation – a discourse on complexity in firms 200

17.2.1. Inno-toxic factors 200

17.2.2. The most common innovation “diseases” 202

17.3. In conclusion 203

APPENDICES 205

APPENDIX 1 207

APPENDIX 2 211

APPENDIX 3 217

APPENDIX 4 219

APPENDIX 5 231

APPENDIX 6 247

APPENDIX 7 253

APPENDIX 8 267

BIBLIOGRAPHY 277

GLOSSARY 291

INDEX 299