" Grange: Fergang agrees that the more you can show business leaders something concrete, the more they will back innovation. "When the business realized we were expending energy on innovation that could have been applied to known production needs, they asked, 'What are you doing?' Fergang says. "But when we started showing them our prototypes on a regular basis, that went away." The key, he says, is to gain the trust of business leaders by executing well on the basics. "You can't apply resources to innovation when you're not taking care of the rest of the business," he says.
" Equinix: The main thing, Lillie says, is to ensure innovation is focused on moving the business forward. "It's important to stay not only current with customers but, really, even ahead of them," he says. To fund innovations, Lillie takes an indirect approach, reserving a portion of his budget for innovation projects. "I don't formally say, 'This is our innovation budget,'" he says. "But in my budget [request], I always leave an earmark for innovation."
How do you involve external organizations?
" CapitalOne: Establishing a community with technology companies, academic institutions, startups, venture capitalists and collaboratives is essential to innovation, according to Shivanandan. CapitalOne works with MIT, Stanford University, Georgia Tech and the University of Virginia on research initiatives and is active in communities such as Fintech, an annual program run by the Partnership Fund for New York City and Accenture to encourage startups developing cutting-edge financial services technology products. The company also participates in hackathons and has sponsored some of these events in its lab.
" Equinix: After hearing a speaker discuss gamification at the Innovative CIO program at Stanford University (which Lillie helped develop), Lillie worked with Deloitte to revamp the company's sales processes using gaming principles and ideas. "We brought these ideas back from Stanford and drove them into the organization," he says. The sales system incorporates game elements such as leader boards, rewards and avatars and is being deployed across the globe, Lillie says.
" American Cancer Society: Ferro agrees that innovation is spurred by communicating with outsiders, which in his case include businesses like IBM and Johnson & Johnson. "We look at how we can learn from the industry standards and best practices in the private sector and apply that to our organization," he says. An example is a recent conversation he had with Terry Jones, founder of Travelocity, who emphasized the importance of being open to everyone and everything. "The trick is not getting overwhelmed by all the input, and that's where having established innovation processes comes in," Ferro says.
" MasterCard: According to Lyons, MasterCard Labs taps into a number of external sources to spark innovation and is currently opening up its services to others through open APIs.
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