the relationship lifeblood: leverage the relationship improve intimacy create value reduce cost

© Copyright Custell Pty Ltd 2004 - 2009 1

• The Relationship Lifeblood:• Leverage the Relationship• Improve Intimacy• Create Value• Reduce cost

Partnering for Innovation

All concepts and ideas contained within this document are the intellectual property of Custell Pty Ltd. Content must

not be copied or used without written approval from Custell.

Turn on your soundto hear the presentationTurn on your soundto hear the presentation

Click Here for Next Slide



Key Supplier• Quality, on time, to

specification, solution delivery

• Differentiation• Reducing Costs• Adding value• Innovation• Providing expertise

Vendor• Trader• Price is No.1

requirement• Little differentiation• Low Margins• Little Loyalty

Partner• Shared

1. Trust2. Strategy and information3. Vision and Goals4. Risks and Benefits

• Discover, create, provide world-class products and services

Degree of:• complexit

y• competitiv

e advantage

• customer satisfaction

• innovationBusiness Value

(Reference – Tony Lendrum – The Strategic Partnering Handbook

Effectiveness Objectives"Solve my problems”

Competitive Advantage"Make Me Money"

Efficiency Objectives"Make It Cheaper"

Relationship Characteristics




“Innovation is the Lifeblood

for sustaining business relationships”Tony Lendrum

Innovation is about people and enterprises,

not about science and technology

– its all about attitudes.

Australian Business Council

Partnering for Innovation




5

6

7

8

9

10

Yr 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5

Re

lati

on

sh

ip V

alu

e S

co

re

4

5

6

7

8

9

10

RETENTION LIKELY

RETENTION UNLIKELY

Typical Relationship Cycle over a 5 year services contract(Key assumption – Supplier is consistently meeting SLM’s)

Custell Research 2004 - 2008

Customer Decision PointRenewal or Tender?

With Partnering & InnovationWith Partnering & Innovation

Without Partnering & InnovationWithout Partnering & Innovation

Relationship Life-Cycle




Innovation or Invention

Innovation or Invention

Innovation

Process of change that adds value. An enhancement modification, add on or alternative application of an existing product/service or process in such a way as to increase its value to the user

‘Incremental’ ‘Discontinuous’ ‘Disruptive’ ‘Architectural’

Invention (Breakthrough innovation) Product, service or process without precedent

“Breakthrough” “Radical”




Challenges to Innovation In Relationships

1. AssessInnovativeness

2. PlanChange

3.Map the Journey

4. Systemise Innovation

5.Measure

& Manage

INNOVATIONCHANGEMODEL

1. Audit and assess Innovativeness

2. Plan and Implement Change - Break down the barriers to Innovation

3. Map the journey – Empower the teams

4. Systemise Innovation – Collaborate and manage progression

5. Measure, Manage and reward

6. Assess Program – Drive continuous improvement

Innovation Change Program


2. PlanChange

3.Map the Journey

4. Systemise Innovation

5.Measure

& Manage




Innovation Model

Innovation Model

Model

$$

Business Case

Business Case

REALISINGREALISING

$$

COMMITTING

COMMITTING

Break Down the BarriersBreak Down the BarriersSUPPLIER & CUSTOMER

CREATING THE CLIMATECREATING THE CLIMATESUPPLIER & CUSTOMER

Facilitate Innovative IdeasFacilitate Innovative Ideas

IDEAS

SEARCHINGSEARCHING

IDEAS

Opportunity Funnel

Tracking

Impact/Scope

Impact/Scope

EXPLORING

EXPLORING

OPTIMISINGOPTIMISING

Reference -Barnes & Conti Innovation Journey Map





Innovation Model

Innovation Model

Model

Manage anInnovation

Manage thePipeline

CREATING THE CLIMATE CREATING THE CLIMATE PREPARATION & TRAININGSUPPLIER CUSTOMER

SEARCHING(Facilitation, Identifying, Hunting, Gathering)

SEARCHING(Facilitation, Identifying, Hunting, Gathering)

INNOVATIONWORKSHOPPROGRAM

INNOVATIONWORKSHOPPROGRAM

INNOVATIONBUSINESS

INTEGRATION

INNOVATIONBUSINESS

INTEGRATION

IDEAS

REALISINGREALISING

COMMITTING(Business Case)

Commit?

COMMITTING(Business Case)

Commit?

Tracking

EXPLORING(Evaluate, Qualify, Quantify, Prioritise)

Filter

EXPLORING(Evaluate, Qualify, Quantify, Prioritise)

Filter

$$ OPTIMISINGOPTIMISING

CREATING THE CLIMATE CREATING THE CLIMATE SUPPLIER CUSTOMER

SEARCHINGSEARCHING

IDEAS

REALISINGREALISING

COMMITTING

COMMITTING

Tracking

EXPLORING

EXPLORING

$$ OPTIMISINGOPTIMISING




2. PlanChange

3.Map the Journey

4. SystemiseInnovation

5.Measure

& Manage



2. PlanChange2. PlanChange

3.Map the Journey

3.Map the Journey



5.Measure

& Manage

5.Measure

& Manage

8Click Here for

Next SlideClick Here for

Next Slide


Innovation Program - Summary

Registers – tracking progress

Two Registers:

1. Opportunities

Identifies opportunities for innovative solutions

Provides focus for innovative activity

Visual to all parties

Sets ‘Value’ objectives

2. Innovations

List of innovations in the funnel by Opportunity

Description, status, value, team members

Basis for tracking progress

Used for pipeline management

Benefits:

Provides focus for innovationSimplifies trackingSingle source of summary information





Collaborative Workbenches

Benefits:Effective cross functional teamingEasy management

Workbenches Provide:Maintenance of RegistersSingle source of information across diverse organisationsSecure Team CollaborationJourney map GuidanceVisual workflowTemplatesContent ManagementDocument ManagementDiscussion Threads

Team Workbenches – 3 levels:1. Overall Program2. Each Opportunity3. Each Innovation




Team Collaboration

Solution Creation Tools & Techniques

Assessment Tool

Prioritisation Methods

Pipeline Management

Measurement – progress & value

Tools Deployed

Tools Deployed





Innovate for OutcomesSystem based teaming tool for facilitatorsFocuses the team on a specific Opportunity or challengeCreatively generates ideas that achieve required outcomesUses fishbone methodincorporates a team voting tool to prioritise ideas

“Innovate” Searching Tools

Root cause solutionSystem based teaming tool for facilitatorsFocuses the team on analysing and solving the root cause of a problemCreatively generates ideas that will correct the root causeUses fishbone methodincorporates a team voting tool to prioritise solutions





1. “Innovate” for Teams (Custell - half day course)

Understand what makes an effective innovation programAssess and rank an innovative idea relative to its value and scopeManage an idea through a processParticipate in ‘enterprise to enterprise’ teaming tactics to create value

2. “Innovate” Team Leader Accreditation (Custell - One Day course)

Articulate the characteristics of an effective innovation programUse Innovate tools to facilitate team meetings to ‘search’ Use facilitation tools from Innovate to ‘explore’ and ‘commit’Manage the Realising and Optimising phasesManage the innovation pipeline

3. Managing Innovation (Barnes & Conti - 1 day course)

Clarify how innovation can become an important part of the way that you do your job and live your life.Develop the mind-sets and skill sets that are appropriate to each phase of the innovation journey.Suggest practical ways in which you can apply skills and insights to your area of influence.

“Innovate” Training





An end to end Innovation Solution

INNOVATION CLIMATE: A change program to improve your innovativeness by breaking down the barriers to innovation,

TEAM TRAINING: Training programs to improve your peoples skills in creativity, leadership and innovation management,

SYSTEM: A team based collaboration and innovation management system to support your innovation teams.

PROCESS: Deploy a process (or journey map of your choice) to provide an easy and consistent way for teams to progress innovative ideas.

METHODS: Tools and techniques to generate and test new, creative ideas.





Drive measurable value for the customer

Create revenue opportunities for the supplier

Build Competitive Advantage

Build trust in the relationship

Increase Intimacy & Loyalty

Productivity - Maximise return from scarce resources

Easy to manage

www.custell.com

Innovation Program Benefits

Benefits



the relationship lifeblood: leverage the relationship improve intimacy create value reduce cost

Documents