MASTERING 2018

THE INNOVATION PROCESS

TRY. LEARN. REPEAT

THE ROAD TO INNOVATION IN THE MIDDLE EAST

How innovation pioneers such as 3M, Ericsson and DAFZA are navigating
internal barriers to drive innovation in the Middle East

Written by Carlos Guevara and Dr. Hitendra Patel, with special collaboration of Dr. Saeed
Al Dhaheri, Sudarshan Chakravarthi, Lisa Nyman, and Anthony Denatale
 sia-partners.com

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TABLE
OF CONTENTS

05 MASTERING THE INNOVATION PROCESS

07 INNOVATION PROCESS

08 WHAT IS NOT WORKING WELL

10 WHAT THE MOST INNOVATIVE ORGANISATIONS ARE DOING

TO SPEED UP INNOVATION

12 LESSONS FROM THE LARGEST SME ACCELERATOR IN THE WORLD

13 PUBLIC SECTOR CASE STUDY: THE UAE JOURNEY TOWARDS INNOVATION

14 ABOUT THE AUTHORS

15 COLLABORATORS
ABOUT THIS
The 30th of November 2014, Sheikh Mo-
hammed bin Rashid, Prime Minister of the
UAE and Ruler of Dubai, led the Cabinet in
a special meeting at a historic fort in the

PAPER
Emirate of Fujairah. Under the directions of
Sheikh Khalifa, the President of the UAE, the
Cabinet approved the designation of 2015
as the Year of Innovation. During the last 2
years we have been collaborating closely
with government and private organisations
that aim to harness innovation. But has there
been any progress? This article analyses
the achievements, challenges, and lessons
learned from organisations in the Middle
East trying to master the art of innovation.
Mastering the
Innovation Process
SETUP DIVERGE CONNECT CONVERGE EMERGE
A COMMON VIEW
on INNOVATION

If you ask a group of 20 people

REFRAME
ORGANISE + CONNECT PRIORITISE + SET what innovation is, you will pro-
SET THE GOAL THE PROBLEM +
THE DOTS REFINE SOLUTIONS ACTION PLANS
GENERATE IDEAS bably get 20 different answers. In
today’s world some people think
innovation is the creation of new
products and services, for others
Before we talk about the state of Connect innovation is about R&D, or crea-
innovation in the region, we must first ting new experiences. The truth is
The connect stage is one of the that innovation encompasses all
clarify how innovation works. There
most forgotten steps in innovation of these together.
are 5 stages in the innovation process:
management, yet one of the most
Setup important. At this point the company The innovation process intro-
should provide spaces for ideas to duced by Dell to its supply chain
This is the step in which the manage- management, the quality systems
mingle and connect with each other.
ment team must decide on where to developed by Toyota, a practice
A powerful marketing idea is useless
innovate and not innovate, and define like Walmart’s inventory mana-
unless it is connected to relevant
growth targets and strategic thrusts gement, Google’s use of mathe-
means of production and delivery,
for breakthrough innovations. matics to change the media and
and wrapped up by the right business
Diverge model. communications industries, or
even Starbucks’ reimagining of the
This is the step in which Converge coffee shop experience have all
organisations typically brainstorm
At this stage, the organisation must been game-changing innovations.
over a problem. Some organisations
have connected new idea fragments Simply put, innovation is finding
do this using internal ideas only,
around a desired ‘field of play’ to ‘new ways of creating value,' This
while others decide to crowdsource
generate a range of new business is the definition that most bu-
ideas beyond their organisational
concepts. The ‘convergence’ occurs sinesses embrace today in order
boundaries. During the ‘diverge
when the organisation conducts to drive the generation and appli-
stage’ organisations determine
some initial due diligence to validate cation of innovative approaches
the trends that could impact their
the priority concept. Out of this not only in the development of new
businesses and identify insights and
process, a few highly viable concepts products and services, but across
idea fragments across the company,
should emerge. the whole value chain.
competitors, partners and the future.

5
 Emerge
Understand what conditions need to Build prototypes to ensure the new
be tested first. Find the right partners. concepts meet the organisation’s
Summarise the business concept in a internal conditions for new business
compelling, visually stimulating, and development.
insightful way. Test with real clients.

The IMPORTANCE of
INNOVATION

Regardless of its importance in

any priorities scale, an objective
must be mastered in order
to be successfully achieved.
Spreading the word about
innovation and its importance
doesn’t make us innovative.

The organisation that fails

to innovate is on the road to
obsolescence. Major companies
such as AT&T, Nokia, Dell, and
Kodak used to be industry
leaders, even dominators, but
they all fell behind as their
challengers relegated them into
second place (or worse).

The VALUE of an IDEA

A large majority of our clients

have implemented systems for
idea collection (i.e. idea box), but
how effective are these ideas
in driving innovation? “An idea
by itself is worth nothing unless
it is translated into value." The
journey of an idea throughout
the innovation lifecycle is quite
interesting: it usually starts as a
small concept (we call it an ‘idea
dot’) that grows by connecting
with other concepts; “ideas get
connected, disconnected and
reconnected with other idea dots
until a viable business concept
emerges…” says Dr. Hitendra Patel
at the IXL Center for Innovation.

6
Innovation Process
CONNECT
SETUP DIVERGE CONVERGE EMERGE

REFRAME ORGANISE + PRIORITISE +

SET
OBJECTIVE SET THE GOAL THE PROBLEM + CONNECT THE REFINE SOLU-
ACTION PLANS
GENERATE IDEAS DOTS TIONS

• Future insights
• Open Innovation • Reverse
engineering of
• Set a bold Vision • Idea Box • Lean innovation
•C
 ross functional business concepts
BEST •S
 cenario Planning • Eureka workshop experts task force • Prototyping
• Pressure testing
PRACTICES
• Innovation • Innovation •P
 ursue workshops (first to failure test) • MVP (minimum
Challenge Challenge viable product)
• Brochures and
• Cross industry visual artifacts
benchmarking

• Idea management
platforms
•S
 trategic Planning • S tage-gate
• S tart up • Collaboration
• Leadership process • Lean execution
KEY ORG. incubators platforms
Ambition • Flexible and agile and project
CAPABILITIES •O
 ut of the box
• Innovation resource management
• Understanding thinking
ecosystem allocation process
future forces
of partners
and customers

• Robust business • Prototypes

concepts
• Business • Ready-to-be
OUTPUTS • Innovation intent • Business concepts
opportunities map • Brochures scaled innovative
•B
 usiness plans business concepts

7
 What is Not Working Well
Many organisations in the region understand the importance and have started the journey of innovation. We have seen
organisations seriously invest in the first two stages of the innovation process, Setup and Diverge; however, most do
not get past the space of ‘idea box,' Post-Its, and PowerPoint. Here, we present the main barriers preventing innovation
that ultimately impede ideas to reach the market, as reported by our clients:

The quest for the ‘next big thing’

Managing the suggestion box is one can indistinctively produce ideas that Nyman, Head of Strategy & Business
of the most common challenges aim to change the world and/or ideas Innovation at Ericsson RMEA. This
we observe among our clients, as to improve the food in the cafeteria. becomes increasingly difficult as
organisations try to get the most industries are under pressure and
out of their employees’ ideas. Balancing risk with ROI tend to focus on short term growth
The problem is that ideas without and profitability.
direction are like a chicken without “Regionally, the main challenge is
a head. A suggestion box without a striking the balance between risk
focus and lacking strategic priorities and return on investment” says Lisa

8
Not getting enough ‘dots’ great idea, just ask for a business attributes exhibited by organisations
plan. Nowadays, organisations are in the region.
Everybody has the capacity to struggling to justify new ventures
come up with great ideas, although in light of the strict protocols for Embracing digital, now or later?
it is obvious that not everyone is budgeting and resource allocation.
generating them. Which could have “Middle East organisations must
something to do with the fact that Moving beyond Power Point adapt to changing times," says
some individuals have more ‘dots’ Sudarshan Chakravarthi, Head of
than others. “You have to teach While for many organisations Marketing & Communications at 3M
people to have more curiosity. crowdsourcing innovative ideas Gulf. It is getting easier and easier for
Every kid has it and somewhere is a big achievement, the biggest new entrants to start to compete with
along the way we, as parents and challenge lies in the execution. the increasing possibility of acquiring
school systems, shut it down”, says Organisations struggle with testing business elements through partners
Dr. Hitendra Patel of the IXL Center. and caling up ideas to produce or suppliers. Harnessing the forces
Moreover, we have observed that bigger, bolder, and more innovative that will shape the future and doing
many organisations are limiting the concepts that can be taken to reality it at the right time has become an
idea-sourcing initiatives to their own and generate value. increasing concern of organisations
employees, and although this is a today.
good practice, the real potential lies Connect, disconnect,
in collaborating with customers and connect again The culture killers
suppliers, and searching for idea dots
beyond their natural fields of play. While having a good number of There are two prerequisites to in-
ideas is important, without proper novation: acceptance to failure and
The business plan road to nowhere connectivity there is little hope for tolerance to waste. “The biggest
innovation. If ideas are treated as challenge is to change the culture of
“Innovation always comes with individual projects, we cripple the the organisation, from autocratic to
change, and in some cases cost," potential of connecting them with democratic”, says Anthony Denatale,
says Sudarshan Chakravarthi, head other ideas to generate an even Head of the Innovation Unit at DAFZA.
of Marketing & Communications bigger idea. Providing space for ideas
at 3M Gulf. If you want to kill a to mingle is one of the least common

9
 What the Most Innovative
Organisations are Doing
to Speed up Innovation
We asked our clients and experts for their recommendations for organisations trying to master the art of
innovation. Here is what they answered.

1. 2. pability building only results in lots

of people, processes, and systems
Get your CEO excited about Create spaces to innovate development. This only increases im-
innovation patience from management, who be-
“At 3M we have the 15% rule, where lieve that time and money are being
Ensure frequent informal meetings we allow our employees to spend 15% squandered. The solution is finding
with the CEO and Chief Innovation of their work time on experimental the optimal balance between innova-
Officer. These encounters create the doodling or experimental projects tion results and capacity building. “At
optics that innovation is important, that could give way to new products," Ericsson we use a wide range of ini-
they facilitate decisions and support says Sudarshan Chakravarthi, Head tiatives to keep innovation alive” says
commitment to innovation. “We of Marketing & Communications at Lisa Nyman, Head of Strategy & Bu-
pay great attention to our Quarterly 3M Gulf. Innovative organisations siness Innovation at Ericsson RMEA,
Global New Product Launch”, says encourage their employees to try whose company is investing heavily
Sudarshan Chakravarthi, Head of and experiment on concepts that will in certifying innovation coaches,
Marketing & Communications at drive the future of their businesses. has created innovation incentives,
3M Gulf, about the mechanisms and also has recently established a
used by this innovation giant to put Chief Innovation Officer role commis-

3.
innovation at the centre of the top sioned as a disruptive force to further
management’s agenda. “To make augment and accelerate innovation
innovation happen, we need to make via incubation and venture funding.
people believe in it," says Anthony Balance results and capacity Real potential lies in collaborating
Denatale, Head of the Innovation Unit building with customers and suppliers, and
at DAFZA, who is leading a major searching for idea dots beyond their
cultural change in his organisation by Focusing on results is not sustai- natural fields of play.
raising innovation awareness levels, nable, it only helps to keep the consul-
from CEO to floor employees. tants hired, whereas focusing on ca-

10
4.
Focusing on BIG ideas
Big ideas are exciting for managers,
employees, suppliers, partners,
and customers. Big Ideas move the
needle on business results. “Focus
on game-changing initiatives has to
be the starting point… companies
mistakenly use six-sigma, TQM
or lean management tools for
driving breakthrough business
growth. These tools are for process
improvement, cost reduction, and
increased predictability, exactly the
opposite of innovation," says Dr.
Hitendra Patel at the IXL Center for
Innovation.

5.
Embrace the digital forces
Most of the clients and experts agree
that digital forces are about to disrupt 6. risk and potential return”, says Lisa
Nyman, Head of Strategy & Business
the world as we know it. Some Innovation at Ericsson RMEA.
Customer-centric innovation
industries will feel this more strongly Companies like Google and 3M
than others. Pioneer organisations Pioneer organisations place the encourage innovation time among
are currently developing digital customer at the centre of their all their employees. Failure does not
capabilities to be the disrupters, innovation process, then iterate, need to be expensive. Neither should
rather than being disrupted. connect and disconnect ideas until it lead to career risk.
they find a unique space in which they
can add value. “An example is the
Adhesive platform in 3M; it goes from
a simple Scotch Tape which can hold
the back side of an envelope, all the
way up to Scotch solutions raising an
800 kilo car in Germany off a crane,"
says Sudarshan Chakravarthi, Head
of Marketing & Communications at
3M Gulf.

7.
Fail…fast and cheap
Failing fast and cheap is not a new
concept, but many organisations are
still reluctant to endorse failure of any
kind. “One way to overcome this is to
use the Lean Startup method, which
focuses on reducing the upfront
investment and thus the risk by
creating a Minimum Viable Product
(“MVP”) to be tested in the market,
and based on the customer response
pivot or persevere. Another option
is to work closer with customers
and partners and thus share the

11
 Lessons from the Largest
SME Accelerator in the World
By Dr. Hitendra Patel – IXL Center for Innovation and Project Leader
of Colombia’s 10x SME Accelerator - Colciencias

Google created Alphabet because its down or even stopping innovation. innovating these inefficiencies.
founders were concerned that the In SMEs, the CEO already knows The impact of innovation growth
company had become too big and it how to buy, make and sell, hire and in SMEs is significant, as it creates
had stopped innovating. Innovation is fire, and navigate complexity, while accelerated growth compared to big
typically associated with startups and in a startup the CEO is still learning. corporations.
SMEs, but startups face many In SMEs, the CEO is often present in
challenges as they navigate the innovation meetings and decisions About Colciencias: 10x SME program
infantry stage. But what about SMEs? are made at the moment, and so in Colombia has promoted regional
Could SMEs hold the magic formula are resource allocations; while in economic growth by building
to nurture innovation? SMEs have a big companies the CEO delegates innovation capacity at hundreds
higher success rate with new ideas responsibilities and is not present. of small enterprises. Delivered in
for commercialisation than startups cooperation with the Colombian
or large companies. In startups, the Innovations pursued by SMEs are National Administrative Department
CEO is not a proven businessman or oftentimes me-too products, but of Science, Technology and Innovation
manager; and in large companies, offered with a better value proposition (Colciencias) and five metropolitan
inputs and decisions are distributed along the value chain of an existing governments, it guides companies
across the organisation, slowing company. SMEs unlock value by from idea to purchase order.

12
Public Sector Case Study
The UAE Journey Towards Innovation
Interview with Dr Saeed Al Dhaheri – Chairman of Smartworld and Advisor to several UAE government Entities

Can you provide a brief history The 4th cycle of the UAE government recognition, and rewards for staff
of innovation in the UAE? excellence model adopted in 2016 efforts to innovate, employees tend
is now emphasising innovation to lose momentum and passion, and
Innovation in the UAE government
as an enabler, and giving 20% become discouraged to come up
can be traced back to 1997, with
weight in the evaluation of with creative ideas or solutions.
the establishment of the first Dubai
innovation management practices
Government Excellence Program Last but not least, organisations
in government organisations. The
DGEP, followed in 2009 by the struggle with creating a risk
Initiative for Government Innovation
Abu Dhabi Award for Excellence environment that nurtures new
(IBDAA) now has four innovation
in Government Performance, ventures. Innovation requires
categories: the most innovative
and in 2010 by the Federal experimentation and risk taking.
government department, the most
Government - Sheikh Khalifa If the environment does not allow
creative idea, the most creative
Government Excellence Program. employees to experiment and try
government employee and the
These programs emphasised new things with acceptable risk of
most creative government leader.
innovation as a necessary ingredient failure, they will be afraid to test
These innovation programs have
for government excellence. and try different approaches/ways
significantly helped instill a good
to implement their ideas, which will
innovation culture and practices in
In 2015, the UAE government stifle innovation.
UAE government entities.
launched the ‘National Innovation
Strategy’, emphasising innovation
in government as a cornerstone for What would you recommend
What are the most common
social and economic development to a government entity embarking
challenges that government
and key for increasing UAE on the journey of innovation?
entities face when it comes
competitiveness, providing new job
to innovation? Government entities should establish
opportunities, and improving the
innovation strategies, link them to
overall quality of life and happiness The Innovation climate in the UAE
their organisational strategy, and
of people. government is becoming more
ensure to have a clear innovation
and more visible as innovation
process that should be reviewed and
is supported and championed
assessed from time to time.
by leadership on many levels of
government, and exercised in almost Adopting an agile mindset and agile
all of government entities. Yet, there practices, such as agile software
exist some challenges including development framework is of
insufficient allocated budgets to importance to government entities,
implement the accepted creative in order to be responsive to changes
ideas coming through ideation and for their provision of new
systems. This can result in delaying innovative services.
the implementation of good ideas,
Innovation is more about
which slows down innovation pace,
collaboration; internal collaboration
or sometimes renders those ideas
within the organisation and external
irrelevant if not implemented on time.
collaboration with customers and
Providing and linking incentives other stakeholders. Government
to performance of staff is another entities need to capitalise on
challenge that government entities innovation technology to make
are facing. Without proper incentives, collaboration possible.

13
 About the Authors

Carlos Guevara - Partner at Sia Dr. Hitendra Patel - Founding Partner Dr. Saeed Al Dhaheri - Chairman of
Partners. of the IXL Center for Innovation and Smartworld and Advisor to UAE Space
Board Member of the Global Innovation Agency
Author and speaker on Strategy and
Management Institute.
Innovation. Board Member of the Institute Founding Partner of the Boston-based
for Strategy Execution. Certified Trainer Founding Partner of the Boston-based Dr. Saeed is an academician and ICT
by the Global Innovation Management global innovation consulting firm expert. Former Director General of the
Institute. A Mechanical engineer with IXLCenter, Board member of the Global Emirates Identity Authority. Member of
an MBA from IE Business School. Innovation Management Institute and the international advisory committee of
ex-head of innovation of Monitor Group. the UAE space agency. Has led several
Member of the Hult Prize judges in programs including Dubai government
You can reach Carlos at:
collaboration with President Bill Clinton. excellence program (DGEP), the GCC
carlos.guevara@sia-partners.com
MBA from Kellogg School of Management, e-government award, and the UAE Drones
a BSEE from ashington University in St. and AI & Robotics for Good Awards.
Louis and a Ph.D. in Materials Science and Holds a Ph.D degree in biomedical
Engineering from Iowa State University. engineering from Drexel University.

You can reach Hitendra at: You can reach Saeed at:
hitendra.patel@ixl-center.com ddsaeed@gmail.com

14
Collaborators
Sudarshan Chakravarthi
Marketing Excellence & Corporate Marketing & Communications Leader 3M Gulf

Lisa Nyman
Head of Strategy & Business Innovation at Ericsson RMEA

Anthony Denatale
Head of the Innovation Unit at the Dubai Airports Freezone (DAFZA)

Founded in 2009, the Global Innovation Management Institute, GIM Institute or GIMI,
is the global nonprofit standard certification board for innovation and innovation
management.

IXL Center helps corporations, governments, universities, and individuals develop

breakthrough strategic solutions and world-class innovation management capabilities
in order to drive significant, sustainable growth.

15
 Abu Dhabi

Amsterdam

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YOU R Casablanca

C O N TA C T Charlotte

Carlos Guevara
Doha
Partner
Government - Dubai
carlos.guevara@sia-partners.com
Dubai

Hong Kong

Houston

London

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