EVALUATION

AN INDEPENDENT EVALUATION OF THE LCNF
ANNEX F – DEFINITION OF INNOVATION LEVELS
F.1 Low innovation
Little or no interest in innovation with few innovation projects and no overall programme
examining opportunities. There is very limited implementation of new ideas into ‘business
as usual’. Resources devoted to innovation are small and organisations are very reluctant
to identify and commit further resources. Links with academia, external (potentially
disruptive) service providers, and international bodies and organisations – for comparison
purposes – are limited and even where they exist they are not strongly pursued.
Innovation is regarded as something undertaken by manufacturers and other suppliers
(such as IT companies) and network companies are passive subsequent purchasers. The
benefits of an active innovation programme are not perceived or recognised by senior
management. Cost, business processes, technical standards and service levels are static
or improving at a very low rate.
F.2 Medium innovation
Some interest in innovation but a relatively small number of innovation projects and no
overall programme examining opportunities. Implementation of new ideas into ‘business
as usual’ is very slow and a risk adverse approach is adopted. People devoted to
innovation are comparatively few in number and tend to also have other responsibilities,
or to be individuals with a special interest in the development of new approaches.
Organisations are reluctant to identify and commit further resources. There are some
links with academia, external potentially disruptive service providers, and internationally
for comparison purposes but progress and the implementation of real change is slow.
Innovation is still regarded as something primarily undertaken by others (such as
manufacturers and IT companies) with network companies only really becoming involved
at the final trialling and pilot implementation stages. Changes are ‘pushed’ through by
others (including the regulator) rather than ‘pulled’ by network companies. The benefits of
an active innovation programme are only recognised and seen as a priority to a limited
extent by senior management. Cost, business processes, technical standards and
service levels are only slowly changing.
F.3 High innovation
Innovation is recognised as a vital ingredient of the business whose success is dependent
upon it. Senior management plays a major role in the innovation programme and that role
is fully visible both within and outside the company. A comprehensive innovation
programme and suite of projects has been developed and is actively managed. The
resources to undertake such a programme are provided and reinforced when necessary.
There are clear processes for identifying new opportunities and for incorporating maturing
developments into “business as usual”. The resources required for this are understood
together with the necessary commitment needed from senior management.
Risks are identified and managed rather than avoided. The level of resource allocated to
the whole ‘end-to-end’ process is adequate. It is accepted that it is in the nature of
innovation that some projects will fail and this is acceptable as long as the project has
been adequately managed. Staff who specialise in innovation have a route by which they
can progress to senior management posts. Links with academia, external potentially
disruptive service providers, and internationally for comparison purposes are vigorously
pursued and are seen as a vital contributor to the development of the organisation.
PÖYRY MANAGEMENT CONSULTING
October 2016
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