Developing Innovation Talent:New Designs for Career and

Technical Education Programsbyby

Bob SheetsBob Sheets

Business and Industry ServicesBusiness and Industry Services

University of Illinois at Urbana-ChampaignUniversity of Illinois at Urbana-Champaign

May 2008May 2008

Presentation Overview American businesses will increasingly compete on American businesses will increasingly compete on

innovation in the global economy--the key factor will be innovation in the global economy--the key factor will be innovation talent innovation talent

Building innovation talent will require major changes in Building innovation talent will require major changes in not only what and how we teach but how we organize and not only what and how we teach but how we organize and manage learning through public-private partnerships manage learning through public-private partnerships

Building innovation talent is best done through the Building innovation talent is best done through the performance and simulation of innovation work—performance and simulation of innovation work—focusing on problem-based, cross-functional projects focusing on problem-based, cross-functional projects throughout the P-20 pipelinethroughout the P-20 pipeline

This will require new designs for career and technical This will require new designs for career and technical education and new thinking on how states implement education and new thinking on how states implement career clusters.career clusters.

Global Business Environment

Globalization and trade policiesGlobalization and trade policies Domestic and international deregulationDomestic and international deregulation Global flow of business investmentGlobal flow of business investment Lower entry costs for business formationLower entry costs for business formation New business (e.g., supply-chain management, New business (e.g., supply-chain management,

sourcing) platformssourcing) platforms New information technology platformsNew information technology platforms Rapid science and technological advancesRapid science and technological advances Increased global business and state and regional Increased global business and state and regional

transparencytransparency

Defining Innovation

Development and application of new ideas and ways of Development and application of new ideas and ways of doing things that create social valuedoing things that create social value

Key PointsKey Points:: Not just about business and the private sector—applies to Not just about business and the private sector—applies to

government, non-profit sector, and education as wellgovernment, non-profit sector, and education as well Not just about business entrepreneurship or science, technology, Not just about business entrepreneurship or science, technology,

engineering and mathematics---applies to all disciplines and engineering and mathematics---applies to all disciplines and fieldsfields

Not just about creativity and imagination—also about risk taking Not just about creativity and imagination—also about risk taking and value creationand value creation

Defining Business Innovation

““The development and implementation of new ideas and new The development and implementation of new ideas and new ways of doing things (business models, products and services, ways of doing things (business models, products and services, markets, processes) to create customer value and drive business markets, processes) to create customer value and drive business growth. It includes both incremental improvements and growth. It includes both incremental improvements and breakthrough developments. It is the interface between breakthrough developments. It is the interface between business entrepreneurship and science and technology business entrepreneurship and science and technology discovery as well as other types of creativity and discovery discovery as well as other types of creativity and discovery beyond the physical sciences and engineering, including art beyond the physical sciences and engineering, including art and design and the social sciences. It requires the effective and design and the social sciences. It requires the effective management of the natural tension between promoting management of the natural tension between promoting creativity and discovery and capturing economic value for creativity and discovery and capturing economic value for businesses and their partners.“businesses and their partners.“Source: Illinois Innovate Now InitiativeSource: Illinois Innovate Now Initiative

Innovation Movement First wave—process innovation focused on operational First wave—process innovation focused on operational

performanceperformance Improving core business processesImproving core business processes Improvement methods and toolsImprovement methods and tools

Second wave---business model innovation focused on top-line Second wave---business model innovation focused on top-line growthgrowth Balancing incremental and disruptive and game-changing Balancing incremental and disruptive and game-changing

innovationinnovation Products/services and markets as well as business model Products/services and markets as well as business model

innovationinnovation Comprehensive and coordinated innovation across the Comprehensive and coordinated innovation across the

business modelbusiness model

Defining Business Models

“ “ A conceptual framework that describes how a A conceptual framework that describes how a company creates, delivers, and extracts value.”company creates, delivers, and extracts value.” Who do we serve (customer segments and geographies)?Who do we serve (customer segments and geographies)? What do we provide (products/services)?What do we provide (products/services)? How do we provide it (value chain)?How do we provide it (value chain)? How do we make money (value creation, pricing and How do we make money (value creation, pricing and

costs)?costs)? How do we differentiate and sustain an advantage How do we differentiate and sustain an advantage

(differences, core competencies)?(differences, core competencies)?

Source: Skarzynski and Gibson, Innovation to the Core, 2008)Source: Skarzynski and Gibson, Innovation to the Core, 2008)

Businesses Competing on Innovation Businesses will compete on doing it faster, cheaper, and Businesses will compete on doing it faster, cheaper, and

better better Achieving world-class innovation capacity in core, Achieving world-class innovation capacity in core,

specialized competencies and leveraging the broad specialized competencies and leveraging the broad innovation capabilities of a network or ecosysteminnovation capabilities of a network or ecosystem

Innovation occurs at the edges and intersections of Innovation occurs at the edges and intersections of functions, disciplines, and markets functions, disciplines, and markets

Customer-centered and open and collaborative Customer-centered and open and collaborative organizations within value networkorganizations within value network

Rewiring the organization to build the capacity for Rewiring the organization to build the capacity for continuous innovation (Figure 1)continuous innovation (Figure 1)

Figure 1: Transition to 21st Century Workplaces

From: To: Management Centralized Decentralized Functions Separated Shared  Professional/Technical Centralized Decentralized Knowledge Specialized Integrated Some Workers All Workers  Work Design Jobs Functional/ Cross-functional Teams Organizational Structure Vertical Customer-Supplier Hierarchies Networks

 Employee Job Task Work Unit PerformanceResponsibility Performance Business Process Management  Career Progression Vertical Vertical and Horizontal Limited Range Full Range

Source: Adapted from Schray and Sheets (2002)

Innovation Talent Customer Focus—understanding needs and what the customer is trying to Customer Focus—understanding needs and what the customer is trying to

get done get done Business Entrepreneurship—thinking like a business in fast-paced, Business Entrepreneurship—thinking like a business in fast-paced,

changing environmentchanging environment Innovation Mind-Set and Tools—driving incremental and disruptive Innovation Mind-Set and Tools—driving incremental and disruptive

changechange Both Specialized and Multidisciplinary and Cross-Functional Skills—Both Specialized and Multidisciplinary and Cross-Functional Skills—

innovation occurs at the edges and intersections of different fields and innovation occurs at the edges and intersections of different fields and functionsfunctions

Collaboration Skills—working with customers and internal and external Collaboration Skills—working with customers and internal and external team membersteam members

Global and Cross-Cultural Orientation---open to different cultures and Global and Cross-Cultural Orientation---open to different cultures and diverse perspectivesdiverse perspectives

Information Technology Skills—new platform for for work and learning Information Technology Skills—new platform for for work and learning

Building Innovation Talent:Balancing Depth and Breadth

Depth: Expert Role PerformersDepth: Expert Role Performers Beyond routine job performanceBeyond routine job performance Strengthening academic/technical knowledge Strengthening academic/technical knowledge

and skillsand skills Breadth: Career EntrepreneursBreadth: Career Entrepreneurs

Business entrepreneurshipBusiness entrepreneurship Business process managementBusiness process management Career and learning managementCareer and learning management

Building Innovation Talent:Maintaining the Line of Sight

Business Entrepreneur—understanding the business model Business Entrepreneur—understanding the business model and how game-changing business model innovations and and how game-changing business model innovations and incremental and disruptive innovation in core business incremental and disruptive innovation in core business processes maintain sustainable competitive advantagesprocesses maintain sustainable competitive advantages

Business Process Manager—understanding how to manage Business Process Manager—understanding how to manage continuous and rapid innovation in the most critical continuous and rapid innovation in the most critical business processesbusiness processes

Team Leader---understanding how the work team can best Team Leader---understanding how the work team can best drive and support innovation in the most critical business drive and support innovation in the most critical business processesprocesses

Expert Role Performer---understanding how you can best Expert Role Performer---understanding how you can best add value to the work team in ways that add value to the add value to the work team in ways that add value to the core business processes and the business as a wholecore business processes and the business as a whole

Building Innovation Talent:The Future of Routine Work Businesses constantly fight commoditization and Businesses constantly fight commoditization and

price competitionprice competition Workers must constantly drive and support Workers must constantly drive and support

innovation or face the future of routine work:innovation or face the future of routine work: Automation---growing capabilities of Automation---growing capabilities of

technology to perform routine worktechnology to perform routine work Outsourcing—sourcing globally on priceOutsourcing—sourcing globally on price Devaluation—wage competition among Devaluation—wage competition among

growing global workforce with rising general growing global workforce with rising general skill levelsskill levels

Building Innovation Talent: Key Requirements Building innovation talent will require major changes Building innovation talent will require major changes

in not only what and how we teach but how we in not only what and how we teach but how we organize and manage learning through public-private organize and manage learning through public-private partnerships partnerships

Building innovation talent requires a focus on problem-Building innovation talent requires a focus on problem-based, cross-functional, and collaborative innovation based, cross-functional, and collaborative innovation projects that simulate innovation in the workplace projects that simulate innovation in the workplace throughout the P-20 workforce pipelinethroughout the P-20 workforce pipeline

This requires a new curriculum platform that allows the This requires a new curriculum platform that allows the balancing between depth and breadth in talent balancing between depth and breadth in talent developmentdevelopment

Platform for Organizing and Managing Talent Development

Career Cluster curriculum frameworks provide a promising Career Cluster curriculum frameworks provide a promising platform:platform:

Depth: Career SpecialtiesDepth: Career Specialties Connecting to degrees/certificates and industry certifications with Connecting to degrees/certificates and industry certifications with

market valuemarket value Breadth: Foundations and PathwaysBreadth: Foundations and Pathways

Foundations—career management, business entrepreneurship and Foundations—career management, business entrepreneurship and management , new workplace basics, information technology management , new workplace basics, information technology skills, academic and technical knowledge and skillsskills, academic and technical knowledge and skills

Pathways—managing and improving business processes and more Pathways—managing and improving business processes and more focused and integrated skill applications focused and integrated skill applications

Focusing Career Pathways on Critical Business Processes Critical to innovation capacity in businessesCritical to innovation capacity in businesses Managing and improving critical end-to-end Managing and improving critical end-to-end

business processes and functionsbusiness processes and functions Product realizationProduct realization IT system life cycleIT system life cycle Logistics planningLogistics planning Merchandise planningMerchandise planning

Must move to higher-level and broader Must move to higher-level and broader applications (Figure 2)applications (Figure 2)

Example Core Business Processes for Career Pathways ManufacturingManufacturing

Product realizationProduct realization Process improvementProcess improvement

Transportation, Distribution, and LogisticsTransportation, Distribution, and Logistics Logistics planningLogistics planning

Information TechnologyInformation Technology IT system development and management (life cycle)IT system development and management (life cycle)

FinanceFinance Financial planningFinancial planning

Marketing, Sales and ServiceMarketing, Sales and Service Merchandise planning and managementMerchandise planning and management

Key Foundation Components

InnovationInnovationMethods/

Tools

Entrepreneurship

STEMFoundations and

Leading Technologies

New Workplace

Skills

Key Foundation Components

Entrepreneurship—taking risks and creating and Entrepreneurship—taking risks and creating and capturing valuecapturing value Understanding central role of business models in Understanding central role of business models in

creating and capturing valuecreating and capturing value Managing business processes—Adding value to core Managing business processes—Adding value to core

business processesbusiness processes STEM Foundations and Leading TechnologySTEM Foundations and Leading Technology

Strong interdisciplinary foundations and related fields Strong interdisciplinary foundations and related fields (e.g., design, social sciences)(e.g., design, social sciences)

Working knowledge of critical technologies within Working knowledge of critical technologies within career cluster/pathwaycareer cluster/pathway

Key Foundation Components

Innovation Methods and Tools—Discipline of Innovation Methods and Tools—Discipline of InnovationInnovation Innovation is not just creativityInnovation is not just creativity Tension between generating new ideas and creating and capturing Tension between generating new ideas and creating and capturing

value better, cheaper and faster than othersvalue better, cheaper and faster than others Learning the general methods and tools of innovation (e.g., Lean Learning the general methods and tools of innovation (e.g., Lean

Six Sigma) Six Sigma) New Workplace Skills—Global CollaborationNew Workplace Skills—Global Collaboration

New workplace basics (e.g., critical thinking)New workplace basics (e.g., critical thinking) Global and cross-cultural orientationGlobal and cross-cultural orientation Customer and cross-functional team member collaborationCustomer and cross-functional team member collaboration New mass collaboration platform skillsNew mass collaboration platform skills

New Public and Private Roles Business and IndustryBusiness and Industry

Develop and validate career cluster curriculum frameworks including core Develop and validate career cluster curriculum frameworks including core business processesbusiness processes

Identify innovation problems that are critical to future growth and Identify innovation problems that are critical to future growth and competitivenesscompetitiveness

Develop and manage problem-based learning projects that simulate critical Develop and manage problem-based learning projects that simulate critical innovation work and build breadthinnovation work and build breadth

Sponsor additional individual/small group project opportunities that help Sponsor additional individual/small group project opportunities that help build specialty skill depthbuild specialty skill depth

EducationEducation Establish career cluster curriculum frameworksEstablish career cluster curriculum frameworks Move problem-based learning projects to center of curriculum and play Move problem-based learning projects to center of curriculum and play

new role in student learningnew role in student learning Develop problem-based learning templates for engaging business and Develop problem-based learning templates for engaging business and

industry partnersindustry partners

How To Get Started Establish state/regional industry consortia with economic and Establish state/regional industry consortia with economic and

workforce development partners in key career clusters (e.g., workforce development partners in key career clusters (e.g., manufacturing, transportation and logistics)manufacturing, transportation and logistics)

Develop and validate core business processes with industry partners Develop and validate core business processes with industry partners for each pathway in the selected career clustersfor each pathway in the selected career clusters

Determine academic, workplace, and technical foundations Determine academic, workplace, and technical foundations including innovation skills and business process management toolsincluding innovation skills and business process management tools—new foundations—new foundations

Align/develop specialty programs off the business process platformAlign/develop specialty programs off the business process platform Develop problem-based learning templates and examples that Develop problem-based learning templates and examples that

address innovation skills and business processes.address innovation skills and business processes. Develop templates and examples at multiple levels—career Develop templates and examples at multiple levels—career

exploration, career preparation and advanced preparation.exploration, career preparation and advanced preparation.

Example Problem-based Projects ManufacturingManufacturing

Product realization--going greenProduct realization--going green Process improvementProcess improvement

Transportation and LogisticsTransportation and Logistics Logistics planningLogistics planning

Biotech/HealthcareBiotech/Healthcare Healthcare program participationHealthcare program participation Preventive carePreventive care Product/treatment developmentProduct/treatment development

Final Remarks: Innovating Education

Where we are at now--sustaining innovations in:Where we are at now--sustaining innovations in: Content--What we teach (e.g., leading Content--What we teach (e.g., leading

technologies)technologies) Methods--How we teach (e.g., problem-based Methods--How we teach (e.g., problem-based

learning)learning) Organization—How we organize education Organization—How we organize education

(e.g., cluster-based programs of study) (e.g., cluster-based programs of study) Where we need to be—disruptive educational Where we need to be—disruptive educational

innovations to produce innovation talent better, innovations to produce innovation talent better, cheaper and faster than anywhere else in the worldcheaper and faster than anywhere else in the world

For More Information

Bob SheetsBob Sheets

Director of Research and DevelopmentDirector of Research and Development

Business and Industry ServicesBusiness and Industry Services

University of Illinois at Urbana-ChampaignUniversity of Illinois at Urbana-Champaign

1100 E. Warrenville Rd.1100 E. Warrenville Rd.

Naperville, IL 60563Naperville, IL 60563

rsheets@uiuc.edursheets@uiuc.edu

630-505-0500 x 229630-505-0500 x 229