Skip navigation
Twitter   Follow us  •   Share   Share    Become a member
0

 

Innovation. Everyone wants it; few achieve it — or at least not easily. That’s a fact I was considering recently when I interviewed Faye Sahai, Executive Director of Innovation and Advanced Technology at Kaiser Permanente, on the topic of “Seeding Innovation.”

 

Fostering innovation-- a topic we have discussed previously in a blog and another here -- is gaining new urgency. Scan the news these days and you’ll see summer camps, professional organizations, governments, and of course businesses in every industry and country, offering awards, incentives, contests and funds for new ideas. They all seem to know that without innovative approaches and fresh ideas, the economy will stagnate and progress will stall. Why, then, is it still so tough to really execute on these goals?

 

One reason, alluded to by Google’s CEO Larry Page last week, is that you have take risks. In response to questions about the company’s innovation model, he was quoted as saying: “When we started doing search, people thought we were crazy.” Clearly, that risk has paid off.

 

Another big innovation inhibitor is funding. Even Google’s Page and other executives — never mind those lower down in the organization — have to defend some seemingly “crazy” investments to nervous boards and investors who don’t see innovation for its own sake as a good business model.

 

Additionally, many experts say that in order to succeed, you have to expect some failures along the way — and that’s not always easy to accept. In fact, at many organizations, corporate culture can become a barrier that restrains innovation. Unless everyone is in sync — and makes innovation part of the way the enterprise operates — it will be tough to pull off.

 

These are all points that Sahai addressed during our interview. Kaiser — one of the nation’s largest not-for-profit health plans with $424.2 billion in 2010 revenue and more than 8.6 million members — seems to have conquered these innovation obstacles, and a long list of awards and accolades demonstrates that it’s on the right track.

 

It certainly helps that Chairman and CEO George Halvorson is on board, as is the CIO, Phil Fasano. But even with buy-in, innovation could get stalled in the discussion phase without someone like Sahai and her team driving it forward every day.

 

As she told me, “Innovation is in the company’s DNA; it’s part of our root and core.” To some, Sahai may have a dream job, with access to internal and external partners and the weight of Kaiser’s Garfield Innovation Center at her disposal. But her own diverse background in both IT and business has helped her to champion ideas and inspire others while aligning with the business every step of the way.

 

With healthcare reform and competitive pressures, she knows that there’s a lot riding on leapfrogging others with new robotics, e-health and predictive analytics, as well as fast delivery of member services. At the same time, she needs the support of the doctors, nurses and providers who are often more concerned about high touch than high tech.

 

Her tactics are to collaborate closely with IT to “operationalize” innovation rather than keeping it in silos. For instance, she uses an internal social media platform to share ideas and expertise among employees “so it bubbles up” through the organization. Additionally, HR rewards idea-generation as part of employee performance reviews. It takes “technology, people and funding,” to put ideas into action, she says.

 

Sahai makes it seem easy to seed innovation — and maybe it is. Her advice? Open the environment to employees and partners; identify a leader and a strategy and fund the efforts, and encourage sharing of both successes and failures.

 

Hey, it’s worth a try …

 

You can find more data on IT innovation in this article on Smart Enterprise Exchange. For more details on Kaiser’s efforts, read the current issue of Smart Enterprise magazine. Also, listen to the full podcast with Faye Sahai and let me know your thoughts.

 

 

 

Paula Klein

 

Editor and Community Manager

 

Smart Enterprise Exchange

1

 

CIOs have faced criticism in the last year or so for not embracing social media, consumer IT and cloud platforms in their enterprises. Many experts — some quoted on Smart Enterprise Exchange, in fact — were quick to say that CIOs must adapt more rapidly to the demands of their business users, partners and consumers.

 

Well, that seems to be changing. While challenges remain, the days of the "CI-No" are waning, based on the results of a new research report published by IDC and CA Technologies.

 

The white paper, titled, “IT Consumers Transform the Enterprise: Are You Ready?” finds that: “Consumer adoption of the cloud is here, with cloud-based applications and social networking becoming the norm.” Specifically, 19 percent of those whom IDC defines as worldwide leaders are improving agility, gaining competitive advantage and seeing benefits by scaling up consumer technologies.

 

Figure 7 - signature2297CB.jpg


Follow the Leaders

IDC defines “leaders” as IT organizations that are self-reportedly proactive in their adoption of public cloud, mobile and social technologies. Fully two-thirds (66 percent) of respondents are well on their way to integrating these technologies into their IT strategy, according to the research. Where does that leave the CIO?

 

According to Crawford Del Prete, IDC's Chief Research Officer: "Today's CIOs have an opportunity to lead both business and IT innovation as they help their organizations decide how to best exploit the trend toward consumerization and personalization of IT."

 

Although 15 percent of respondents said that consumer technology is brought into the enterprise with no IT involvement, Del Prete sees opportunities for CIOs “to work closely with business decision makers to create safe, secure, well-managed environments that allow the company to communicate and collaborate with customers and employees anytime, anywhere.”

 

It’s still IT’s job to “lead the charge in order to ensure that customers are engaged, confidential data is protected, employee productivity is enabled, and the enterprise is getting the greatest return possible on every IT dollar it spends," he says.

 

The report concludes that we are currently at a “tipping point” where mainstream organizations will continue to aggressively embrace the adoption of consumerized technologies for the enterprise, and others must make their move.

 

Of course, the study notes both opportunities and challenges for IT departments and “CIOs will continue to face tremendous pressure to satisfy the growing demand for data and services from business users within their organizations”, said Dave Hansen, General Manager, CA Technologies. Yet, they are already responding by offering new services and collaborating with stakeholders, he said.

 

IDC surveyed 804 IT executives from organizations of more than $1 billion in revenue, and separately surveyed 1,040 IT consumers who use the public cloud, smart mobile devices, and/or social networks for personal or business purposes. Taken together, the reports shed light on the state of consumer-driven IT in several ways. Key among these:

 

  • Leaders conduct more interactions with their customers via smart mobile devices (41% compared with 28% of mainstream organizations).
  • Leaders are more proactive when it comes to social media. They are more likely to use social networks to capture detailed insights about their customers (44% compared with 24% of mainstream organizations) and are more concerned about providing a consistent user experience to customers via social networks across all devices or browsers.
  • Leaders’ use of cloud services outpaces that of their mainstream counterparts. Thirty-four percent use Platform as a Service (PaaS), 32 percent use Software as a Service, and 27 percent use Infrastructure as a Service.
  • Leaders’ use of interactive technologies such as video, Skype and chat is increasing.
  • Leaders are more concerned about their ability to guarantee an end-to-end user experience via mobile devices (41%, compared with 27% of the mainstream organizations).
  • Leaders use public or private cloud to provide remote personal productivity

 

Want more information? Read our feature article on collaborative tools and Navigating the Social Business. Interestingly, we found that many times IT and CIOs — even at large organizations such as AARP and JetBlue — are supporting social media strategies that are initiated and managed by other business units or social media “owners.”

 

Where does your business lie on this spectrum? Does IT lead social media or support the initiatives of business units and stakeholders? Share your experiences on the Exchange.

 

 

Paula Klein

Editor and Community Manager

Smart Enterprise Exchange

We encourage your feedback. Reach out via the "Contact the Editor" and "Contact the Concierge" services for any needs, questions or comments. We look forward to serving you!

Paula Klein, Smart Enterprise Exchange Editor
e-mail

Ellen Lalier, Smart Enterprise Exchange Concierge
e-mail
phone 516-562-5727; fax 516-562-5466