Unleashing public innovation Serial innovation and the public
Unleashing public innovation Serial innovation and the public sector William D Eggers Research Director, Public Sector Deloitte
How do we typically innovate? Price in 2011 C$ Log scale and inverted More for More 1920 2011 Ford Model Tata Nano. T T $3, 200 $2, 100 20 33 Horsepower Bugati Type 35 $180 K 140 Horsepower Low end High end Bugati Veyron $1. 9 million 987 Horsepower
Higher education: 439% increase after inflation
2 000 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Health care inflation equally bad…. 2 500 000 Other third party payers and programs Health insurance Out of pocket 1 500 000 1 000 500 0
Innovation is about breaking tradeoffs
Bridge International Academies $4 $3 15: 1 47: 1 Fee per month of private education for 1 student Cost in bribes for public education for 1 student Pupil: teacher ratio at a Bridge school Pupil: teacher ratio at average Kenyan school
Bridge International’s “school in a box” model makes it easy to open and operate new schools. What started with 1 school in 2009… Is now more than 70 schools… With a target of 1, 800 schools by 2015
Key Factors for Public Innovation Authority Innovative activity that could create public value but is not permitted Public value Potential innovations that can’t happen created by innovation Capability Innovation that should happen but won’t Culture
Capabilities
The innovation process: One weak link in the chain can stump the flow of innovations Idea Generation Create systems to generate and maintain the flow of good ideas 1 Testing &Selection Filter good ideas by creating an efficient sorting process Implementation Convert ideas into products, services and practices GNL Senior Leaders - Innovation Workshop Sustaining & Diffusion Manage stakeholders and disseminate ideas widely
Measuring Innovation
There has typically been a wall between those on the inside of government and those on the outside Government …but that leaves a lot of minds untapped
Governments need to open up to everyone… Government …and engage the outside world in problem solving
Expanding the space for public innovation Authority Innovative activity that could create public value but is not permitted Public value Potential innovations that can’t happen created by innovation Capability Innovation that should happen but won’t Culture
NASA enlists the world’s help to advance the U. S. Space Program NASA will post its challenges online for a network of more than 180, 000 self-enlisted solvers to tackle
Kaggle’s Dark Matter Competition on the White House blog “The world’s brightest physicists have been working for decades on solving one of the great unifying problems of our universe” “In less than a week, Martin O’Leary, a Ph. D student in glaciology, outperformed the state-of-the-art algorithms”
Rules/authority
“Try again. Fail better. ” -Samuel Beckett
Chris Rock
Rapid prototyping, rapid engagement Gmail beta: 1 day
First version of Twitter: 2 weeks 24
Changing the rules • Hold a ‘failure case studies’ conference • Report to parliament on failures as well as successes • All annual reports include a section on failures and what was learnt • Put innovation into performance plans • Put failure into KPIs • Funding for failure • Have a system to share failures
OCTO Labs: Managing Risk the Right Away The idea was that we would throw hundreds of ideas on the wall and even if five of them survive, they will be transformative. ” –Vivek Kundra 26 Improving Policy Execution
Five Strategies for Innovation 1 Cultivate 4 2 Network Replicate 5 3 Open Source Partner
Tap all sources of innovation External Partners Partnered and networked government Employees Collaborative, outcome-focused government Government Innovator Internal Partners Joined-up and reinvented government 28 The Public Innovator’s Playbook Citizens/customers Participative and responsive government
Culture
Cultivate – Innovation from the Edges The Core and Edge Concept EDGE Growth Opportunities EDGE Edge Participants EDGE TYPES CORE Demographic Edge Geographic Edge Technologic Edge Characteristics FLOW Connect Participants Unmet Needs Unexploited Capabilities Greater Risk Tolerance Lower Inertia Increased Collaboration Robust Connections Knowledge Flow
20% Time The Public Innovator’s Playbook 31
Cultivate – Safe havens are separate units kept close to mainstream activities but away from the line organization. Skunk Works Ensure that emerging ideas get the time to develop, protected from short-term budget constraints and premature criticism Permit low-risk experimentation Motivate “renegade” thinkers -- not people seeking to undermine authority, but independent visionaries looking to achieve results. Havens of creativity within an organization Intraprenuers Employees who act as entrepreneurs within an organization
“People are very open minded about new things. As long as they are exactly like the old ones” - Charles Kettering
Bill Eggers Email: weggers@deloitte. com Twitter: @wdeggers Web: williameggers. com
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