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Design management |
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Part 1: Guide to managing innovation |
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ICS 03.100.01 |
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NO COPYING WITHOUT BSI PERMISSION EXCEPT AS PERMITTED BY COPYRIGHT LAW
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BS 7000-1:1999

Committees responsible for this

British Standard
This British Standard was prepared by Technical Committee MS/4, Design
management systems, upon which the following bodies were represented:

Association of Innovation Management

Association of MBAs
Association of Project Managers
British Standards Society
Chartered Society of Designers
Defence Manufacturers' Association
Department of Trade and Industry
Design Council
Electricity Association
Federation of Small Businesses
GAMBICA (BEAMA Ltd.)
Institute of Quality Assurance
Institution of Civil Engineers
Institution of Engineering Designers
Institution of Electrical Engineers
Institution of Mechanical Engineers
Ministry of Defence (Defence Procurement Agency)
Royal Institute of British Architects
University of Glasgow
University of Leeds
Co-opted members

This British Standard, having

been prepared under the
direction of the Management
Systems Sector Committee, was
published under the authority of
the Standards Committee and
comes into effect on
15 November 1999

 BSI 11-1999
Amendments issued since publication
First published January 1989 as
BS 7000 (subsequently Amd. No. Date Comments
renumbered as part 1)
BS 7000-1:1989 superseded by
BS 7000-2:1997, BS 7000-3:1994
and BS 7000-4:1996
Second edition November 1999

The following BSI references

relate to the work on this
standard:
Committee reference MS/4
Draft for comment 99/402550 DC

ISBN 0 580 33057 5

 BS 7000-1:1999

Contents

Page
Committees responsible Inside front cover
Foreword ii
0 Introduction 1
1 Scope 1
2 Normative references 2
3 Terms and definitions 2
4 Innovation, ªnewnessº and an overview of the basics of innovation
management 5
5 Managing innovation at the organizational level 12
6 Implementing a complete innovation management framework: system and
mechanics 22
7 Tools and techniques for managing innovation 28
Annex A (informative) Innovation self-assessment questionnaire 1 Ð
The organization 33
Annex B (informative) Innovation self-assessment questionnaire 2 Ð
Products and services 34
Bibliography 35
Figure 1 Ð The length of the innovation highway with milestones 3
Figure 2 Ð Flow chart giving an overview of the complete innovation
management framework 6
Figure 3 Ð How products change over time 8
Figure 4 Ð Spectrum of ªnewnessº 10
Figure 5 Ð Where opportunities might be found to innovate at every stage of
the value chain 11
Figure 6 Ð Iterative analysis from corporate objectives to master innovation
programme 13
Figure 7 Ð Flow chart giving an overview of the innovation management
framework 20
Figure 8 Ð The length of the innovation highway 23
Figure 9 Ð Possible aspects of the width of innovation highways 24
Figure 10 Ð Risk vs. potential 27
Figure 11 Ð Some factors in assessing risks of undertaking innovative projects 31

 BSI 11-1999 i
BS 7000-1:1999

Foreword

This part of BS 7000 has been prepared by Technical Committee MS/4. In October 1993,
BS 7000:1989, Guide to managing product design was renumbered BS 7000-1:1989 to
accommodate the addition of further parts.
BS 7000-1:1989 was replaced by BS 7000-2:1997, BS 7000-3:1994 and BS 7000-4:1996, and
was withdrawn in 1997 while a new part 1 (this part) was prepared.
BS 7000, Design management systems currently comprises the following parts:
Ð Part 1: Guide to managing innovation (this part);
Ð Part 2: Guide to managing the design of manufactured products;
Ð Part 3: Guide to managing service design;
Ð Part 4: Guide to managing design in construction;
Ð Part 10: Glossary of terms used in design management.
Other parts might be added.
Because of the novel nature of the subject matter, Technical Committee MS/4 invites
users to submit technical comments, observations and suggestions to the Committee
Secretary at BSI (see address on back cover). This will assist the Committee when it
reviews the standard in due course and when it considers the preparation of further
parts of BS 7000.
A British Standard does not purport to include all the necessary provisions of a
contract. Users of British Standards are responsible for their correct application.
Compliance with a British Standard does not of itself confer immunity
from legal obligations.

Summary of pages
This document comprises a front cover, an inside front cover, pages i and ii, pages 1
to 36, an inside back cover and a back cover.
The BSI copyright notice displayed in this document indicates when the document was
last issued.

ii  BSI 11-1999
 BS 7000-1:1999

0 Introduction 0.4 Innovation is not for all

Although this standard is aimed at those who have
0.1 General
determined that innovation is right for them and
This standard describes how senior executives or wish to innovate, it is important to underline that
principals within organizations can plan their innovation might not be right for every enterprise, or
products and services a significant time into the for every product of innovative organizations.
future: the product/service generation after the Typically, innovation takes longer, costs more, and is
generation after the next (3-Gen products and riskier than product improvement. Therefore,
services). It has been prepared in part to help incremental product improvement might be a
disparate enterprises (especially those that are new preferable option.
or very small, with little experience of innovation) to
enhance their performance and form effective 0.5 Structure of this standard
innovative alliances fast. This standard puts forward a comprehensive
Research has revealed that organizations that evolve framework and outlines how key issues might be
a framework for long-term innovation react faster to tackled.
threats or surprises, are more likely to take effective Clause 4 explains the important role of innovation,
action, and are better at sustaining the momentum of describes the various kinds of innovation and gives
change. As such, they are more likely to suceed. guidance on innovation management processes.
NOTE 1 Research undertaken as groundwork for this standard Clause 5 outlines issues that need to be dealt with
took the form of in-depth interviews with senior executives from when managing innovation at the organizational
selected organizations in the United Kingdom that offer a wide
spectrum of products and services. All were considered to be level.
innovative and many had won awards for design, technology or Clause 6 gives guidance on aspects of management
innovation during the 1990s. The largest employed 58 000 people from idea generation through to integration within
around the world; the smallest consisted of just three individuals.
Annual turnovers ranged from £12 000 to £8.4 billion. an organization's culture.
NOTE 2 The term ªproductº also encompasses services and Clause 7 describes tools and techniques for
processes (including business processes). managing innovation.
NOTE 3 For the sake of brevity, the term ªprincipalsº is used in
most instances to denote owner-managers, partners, board
directors and other top executives. 1 Scope
0.2 Survival of the fittest This part of BS 7000 gives guidance on managing
innovation: specifically the development of
The first priority of an organization is to ensure that innovative and competitive products that will satisfy
it survives and prospers. customers' perceived and latent needs in the
Survival usually depends on growth from the long-term future (the generation after the generation
expansion of existing markets, withdrawal from beyond those currently under development). It does
stagnant markets and taking advantage of new not encompass continuous improvement in the short
opportunities, while keeping a firm control of term.
finances. The accumulation of market intelligence This standard stretches the horizon of design
and a researched knowledge base of customer management and should be used by those with
requirements are also key to formulating realistic overall responsibility for an organization's well-being
business strategies and delivering products that to plan future product strategies and so help ensure
generate growth. An organization that fails to long-term survival. It should be used in conjunction
develop its product range continuously is unlikely to with the other design management guides in the
grow in real terms, especially with the increase in BS 7000 series. The proposals in this standard
open competition across the globe. Eventually it dovetail into those of BS 7000-2, BS 7000-3 and
might be forced to cease trading. BS 7000-4.
0.3 Innovation goes beyond technology This standard is relevant to all types of products and
It is also important to emphasize that innovation can services, and to the business processes involved in
occur in all parts of an organization and at all stages their creation, fabrication, delivery and sustenance in
of the value chain: research, design, manufacture, the market, right through to final disposal, including
distribution and marketing, servicing, maintenance the management of obsolescence.
and the eventual disposal of products. Worthwhile It also applies to all levels of staff and management
contributions should be sought through innovation at in all types of organizations operating in the
all stages of a product's life. manufacturing, process, service and construction
NOTE Worthwhile contributions will not necessarily relate to industries as well as in the public and ªnot-for-profitº
financial outcomes, particularly where public and ªnot-for-profitº sectors. The principles and procedures outlined
organizations are concerned.
should be of particular interest to small and
medium-size enterprises (SMEs).

 BSI 11-1999 1
BS 7000-1:1999

Guidance is given on the application of general 3.1

principles and techniques to the management of innovation
innovation. Discussion of the techniques themselves,
〈product〉 transformation of an idea into a novel
such as the management of people and time, and
product, operational process or new service in
their application to areas other than innovation and
industry or commerce
design is excluded.
[BS 7000-10:1995, definition 23011a)]
The guidance provided in this standard provides
NOTE 1 It consists of all scientific, technological, commercial
insights into what should eventually be attained at all and financial steps necessary for the successful development and
levels of an enterprise. marketing of novel manufactured products, the commercial use of
NOTE 1 Appropriate reference is made to other documents for new or improved processes and equipment, or the introduction of
guidance on general management techniques. A Bibliography is a new service.
given at the end. NOTE 2 This definition also applies to public sector and
NOTE 2 Guidance on procedures needed to meet statutory not-for-profit organizations where the products might not be
requirements (such as health and safety, or product certification saleable as such but are created for the good of society.
and liability) are not intended to be comprehensive. Reference
should be made to other documents where appropriate. 3.2
NOTE 3 This standard is intended to complement innovation
BS EN ISO 9001:1994 to which reference should be made. 〈techniques, materials〉 employment of design or
construction techniques, or materials, that do not
2 Normative references have a proven history of performance or are not
covered by the organization's current practice
The following normative documents contain
provisions which, through reference in this text, [BS 7000-10:1995, definition 23011b)]
constitute provisions of this part of this British NOTE This applies mainly to the construction industry.
Standard. For dated references, subsequent 3.3
amendments to, or revisions of, any of these
innovation
publications do not apply. For undated references,
the latest edition of the publication referred to 〈ideas〉 successful exploitation of new ideas
applies. NOTE This definition is widely promoted by the Department of
Trade and Industry.
BS 3811:1993, Glossary of terms used in
terotechnology. 3.4
BS 4778-3.1:1991, Quality vocabulary Ð Availability, 3-Gen product
reliability and maintainability terms Ð Guide to long-term product or service that will become
concepts and related definitions. available, typically in the generation after the
BS 4778-3.2:1991, Quality vocabulary Ð Availability, generation beyond those currently under
reliability and maintainability terms Ð Glossary of development
international terms. 3.5
BS 7000-2, Design management systems Ð Guide to innovative alliance
managing the design of manufactured products.
formal collaboration between two or more
BS 7000-3, Design management systems Ð Guide to individuals and/or enterprises in order to develop
managing service design. innovative ideas
BS 7000-4, Design management systems. Guide to
managing design in construction. 3.6
BS 7000-10:1995, Design management systems Ð innovation brief
Glossary of terms used in design management. statement that describes the purpose and required
BS 6079:1996, Guide to project management. performance of a product, service or process
BS EN ISO 8402:1995, Quality management and 3.7
quality assurance Ð Vocabulary. innovation champion
BS ISO 10007:1996, Quality management Ð person dedicated to the promotion of, and strategic
Guidelines for configuration management. thinking behind, 3-Gen products
NOTE Such individuals will be involved in, or have influence in,
the formative stage of the process as well as the final
3 Terms and definitions decision-making, however, they might not be responsible for any
For the purposes of this standard, the terms and aspect of work.
definitions given in BS 7000-10:1995, BS 3811:1993, 3.8
BS 4778-3:1991, BS 6079:1996, BS EN ISO 8402:1995 innovation highway
and BS ISO 10007:1996 and the following apply.
NOTE The terms in this clause will help to clarify the different
permissible route over which long-term future
types of innovation as well as differentiate long-term product and products and services will be planned
service creation from short-term product and service development. NOTE See also 3.26, 3.45 and Figure 1.

2  BSI 11-1999
 BS 7000-1:1999

NOTE Although the highway appears to be direct, in practice it is likely to meander, change in width and
perhaps even change direction. Furthermore, progress will be iterative.
Figure 1 Ð The length of the innovation highway with milestones

3.9 3.15
innovation leader innovation review
〈activities〉 person who takes the lead in innovative formal, documented, comprehensive and systematic
activities examination of an innovation to evaluate its capacity
3.10 to fulfil stated requirements, identify problems, if
any, and propose the development of solutions
innovation leader
NOTE 1 Examinations can take the form of meetings constituted
〈authority〉 person accepted as being the key of those most closely concerned with innovation, or affected by
authority where matters relating to innovation are the innovations that arise, and ideally chaired by an individual not
concerned directly connected with the project.
NOTE 2 Innovation reviews might take place several times
3.11 during the progress of an innovative project. The aims are to:
innovation leader a) ensure the innovation continues to conform with set briefs;
〈initiation〉 person who is first to introduce a b) modify (through the originator) the innovation brief to meet
particular innovation reasonable economic or practical difficulties wherever they
might be perceived.
NOTE This definition could also refer to enterprises.
NOTE 3 Innovation reviews can be conducted at any stage of the
3.12 innovation process, and should definitely be conducted at the
innovation leader completion of this process.

〈driving〉 person who consistently drives innovation 3.16

and has an acknowledged record of achievement innovation spiral
through innovation
process of building innovations effectively on their
3.13 predecessors
innovation leader NOTE This process should ensure that:
〈trend-setting〉 person who sets trends in markets a) the innovations are exploited fully;
and industries and is acknowledged to be at the b) subsequent innovations develop from a more advanced
forefront of innovation practice foundation;
NOTE This definition could also refer to enterprises. c) resources are not wasted retracing ground covered before.

3.14 3.17
innovation plan innovation strategy
subsection of the overall business or corporate plan chosen path formulated to achieve business and
that brings together all elements relating to innovation objectives supported by an indication of
innovation whether dealing with output, processes or how resources will be committed
parts of an organization

 BSI 11-1999 3
BS 7000-1:1999

3.18 3.26
backcasting length of the innovation highway
process by which attainment of a desired vision in period of time over which new long-term products
the long-term future is plotted progressively back to and services will be planned
the present through a series of milestone NOTE 1 This will be from the time when the existing products
achievements which effectively map out the way and services go into decline forward to three product generations
ahead.
forward
NOTE 2 See also 3.7, 3.45 and Figure 1.
NOTE This process could apply to markets, products, services,
processes and organizations. 3.27 product generation
3.19 〈enterprise〉 step advance for an organization or
industry
blue-sky thinking
3.28
unbounded thinking, and research, during which
ideas are explored without concern as to their product generation
practicality, applicability or marketability 〈standard〉 advance that establishes a new standard
that others adopt
3.20
3.29
innovation management system
product generation
formal infrastructure encompassing objectives,
strategies and processes, organizational structures 〈advantage〉 advance that results in a significant
and values by which an organization administers competitive advantage
innovation 3.30
3.21 product generation
〈platform〉 advance that establishes a new ªplatformº
innovation philosophy
from which to build future output
general stance of an organization towards innovation
and the value attached to the contribution it makes 3.31
to business performance product generation
NOTE This is the ªinnovationº equivalent of a business mission 〈obsolescence〉 advance that makes old products
which articulates the basic reason for innovating within the obsolete
organization and formalizes its role.
3.32
3.22 product generation
master innovation programme 〈attitude〉 advance that forces a significant change in
programme that integrates all activities and perception and the way things are done
investments to be undertaken by an enterprise over a 3.33
specified period, broken down into stages, with
resources to be committed and associated timescales product generation
〈transformation〉 change that transforms a market
3.23 (changes rules, direction, opens up new
corporate software avenues, etc.).
knowledge, skills, experience, intellectual property 3.34
and other intangible attributes within an organization product generation
3.24 〈progressive change〉 integration of several changes
envisioning introduced separately over time to offer a new,
upgraded product that is perceived to be of higher
capacity to conceive of a future state value
3.25 3.35
ªif onlyº analysis product generation
prescription of what could or would be done if 〈simultaneous change〉 change or cluster of changes
certain materials, processes or technologies were incorporated into a product at the same time
available, or specified events were to take place 3.36
NOTE 1 These differ from ªwhat ifº analyses in that the starting
point is a specified desired future state, not the present. See 3.44.
parametric product brief
NOTE 2 ªIf onlysº are critical enablers of, or pathways to, the limitations as specified in the length and width of the
achievement of a new vision. innovation highway
NOTE This will include products that will be allowed to be
developed by the organization over a specified time period. It will
also provide the primary determinants against which long-term
new product and service ideas are eliminated.

4  BSI 11-1999
 BS 7000-1:1999

3.37 4 Innovation, ªnewnessº and an

sensitivity analysis overview of the basics of innovation
〈degrees of change〉 estimation of impact of different
degrees of change in a particular factor on the
management
overall situation (performance, outcomes, etc.) under 4.1 Flow chart of the complete innovation
consideration management framework
3.38 The framework for innovation management is
sensitivity analysis outlined in its entirety in Figure 2 and indicates the
〈constituent factors〉 determination of the relative general direction to be followed. In practice, there
impacts of equal variations in different constituent might be iteration back to earlier stages for
factors on the situation under examination clarification or as new and better information
NOTE Factors and constraints can be added or removed to becomes available. Opportunities for concurrent
produce ªbestº, ªworstº and ªmost probableº cases. processing should be considered by all technical and
3.39 non-technical personnel. This will help to reduce the
serial innovation time-to-market for new products.
group of interrelated innovations that need to be It is possible to implement all the stages of this
effected together in order to achieve desired framework immediately and this can then be used to
innovative outcome direct innovation management. The stages apply
NOTE These often arise as a result of groundwork or equally well to small enterprises and large
follow-through necessary in the value chain to enable the target organizations. The procedures adopted are similar;
innovation. the differences should be principally in the degree
3.40 and scale involved.
technological route map Explanations of the terms used in this framework
description of an anticipated series of developments are given in clause 4. Relevant portions of this
and milestones in identified technologies that figure will be highlighted near the start of clauses 5
provides guidance on the way forward in the and 6.
foreseeable future 4.2 Planning beyond current horizons
NOTE With judicious planning, new products could be conceived
to use anticipated technological developments as they come on The research undertaken revealed that there is very
stream. little that cannot be planned up to three product
3.41 generations into the future. This span will vary
value chain depending on the type of products with which the
organization is involved, but might be ten or so years
all the activities undertaken by an organization that
ahead. Many organizations in the United Kingdom
contribute to the value of its products as perceived
and abroad already have processes in place for the
by customers and users, from first conception
through to final disposal management of their new products over that horizon.
3.42 This time span is not especially long. Most people
would like to ensure the survival of their
visual imagery organization and security of their employment for at
visual rendition of ideas and concepts least ten years into the future. This can only be
3.43 achieved with a constant supply of well-designed
visualization products and services. Their introduction needs to
process by which ideas and concepts are expressed be planned, as does the withdrawal of products and
or represented more vividly, and with greater services in decline. Furthermore, new products and
tangibility, using visual imagery services need to be developed along an identified
3.44 ªhighwayº into the future: this sets the direction an
organization will follow over a specified planning
ªwhat if?º analysis period and the milestones to be achieved in order to
exploration of a problem or opportunity to develop the requisite products and services at
determine how performance and outcomes might specified times.
alter should circumstances change, particularly if
constraints and barriers could be removed
NOTE Such analyses differ from ªif onlyº analyses in that the
starting point is the known present rather than a desired future
state. See 3.24.
3.45
width of the innovation highway
parameters (including financial) that must be met by
long-term products and services
NOTE See also 3.7, 3.26 and Figure 1.

 BSI 11-1999 5
BS 7000-1:1999

Numbers in bold face refer to the relevant clauses in this standard

NOTE In small firms, the owners will probably be involved in the specific search for innovative products. In these
cases, the following activities might occur during top management brainstorming sessions (6.5): analyses of
customer±product experience cycles (7.4), visualization (7.5), scenario planning (7.2), backcasting (7.3), evaluation of
intellectual property (7.6), and the establishment of strategic alliances (5.9).

Figure 2 Ð Flow chart giving an overview of the complete innovation management

framework

6  BSI 11-1999
 BS 7000-1:1999

Figure 2 Ð Flow chart giving an overview of the complete innovation management

framework (continued)

 BSI 11-1999 7
BS 7000-1:1999

4.3 Assignment of tasks and responsibilities 4.5 Nature of innovation

In large organizations, tasks and responsibilities Innovation is the creation of change which
relating to innovation will probably be discharged by introduces a significant element of ªnewnessº in
different individuals. In small organizations, they thought (for example, through blue-sky thinking) and
might be undertaken by a single person. All those action. Typically, the change itself is radical, though
involved should be aware of what is required of it might be smaller in scale, perhaps the last piece of
them: therefore, it is recommended that they achieve a jigsaw that leads directly to a more radical advance
an understanding of the full content of this standard or transformation.
while paying special attention to the section that is The changes brought about by innovation might
most directly relevant to them. relate to a wide spectrum of factors such as
4.4 How products change over time knowledge, perceptions, values, understanding
needs, technology, design and business processes.
Normally, products are upgraded over time. Within They tend to be unusual and unexpected advances.
an existing product concept, there are periods of Consequently they might not be obvious when first
incremental improvement (such as improvements in encountered, though those affected, the
the ergonomics of a product or its aesthetics). stakeholders, might quickly accept them.
Occasionally, radical improvements in performance
might be achieved through advances in existing A close link between idea and action is essential:
technologies, ergonomics and business practices, or ideas need to be followed by action and the outcome
the introduction of new technologies and should be seen to be beneficial to stakeholders,
procedures. Innovative phases tend to be followed though the benefits need not be evaluated in
by ªstableº phases where incremental enhancements financial terms.
are introduced until a further radical change occurs An innovation might be a ªsingle stepº change or
(see Figure 3). comprise an imaginative combination of changes,
Radical phases might herald new generations of some of which might involve making better use of
products, however most innovations are in reality existing knowledge and practices as well as
ªsub-innovationsº that do not transform the overall introducing smaller evolutionary advances.
product even if one or more components might have Innovations might provide new insights which might
been substantially altered. lead to new perspectives and a crucial restructuring
of problems and recommended solutions.
Innovation might be the achievement of a critical
cost, hence price, reduction which opens up the
market. It might lead to technical advances being
brought to market much faster than anticipated, thus
providing substantial competitive advantage.
Innovation might lead to the transformation of
products and the redefinition of customer
expectations. An organization might change the way
it operates which, in turn, might lead to a
restructuring of a market; new standards and
legislation might also be brought in to elevate
performance and safeguard users' and the general
public's interests.
The radical ªstepº nature of change brought on by
innovations might result in uncomfortable
discontinuities. However, even dramatic change can
be brought about in a seamless manner if planned
properly. More often than not, success is determined
by factors other than the technical content of an
innovation, not least the manner in which it is
Figure 3 Ð How products change over time launched and sustained once implemented. In some
instances, serial innovation might occur with
complementary changes through the value chain: for
example, in relationships with customers and
suppliers. The ªspiralsº of innovation that might
result should help reinforce technical and market
leadership.

8  BSI 11-1999
 BS 7000-1:1999

4.6 Reasons to innovate h) have shortcomings that are easy to rectify;

Many reasons make innovation an imperative for a i) have a high ªfun contentº in addition to
substantial proportion of business enterprises, presenting real challenges to those who develop
particularly those of small and medium sizes. them;
The following list summarizes the principal reasons j) are difficult for others to copy or surpass;
why innovation should be among an organization's k) set new ªstandardsº in markets which
core competencies: competitors struggle to reach.
a) to survive adverse changes in operating
4.8 Degrees of ªnewnessº
circumstances;
The spectrum of change that might be introduced
b) to make life easier for their customers and help
through innovation extends from ªnew to the worldº
them improve their businesses;
at one extreme through to ªnew to an individualº at
c) to raise margins and profitability; the other.
d) to gain competitive advantage; The former encompasses changes that have never
e) to protect market share; been seen or done before as far can be ascertained.
f) to comply with legislation (actual or The latter might encompass existing technologies
anticipated); and practices that are familiar to others or common
in different situations.
g) to reposition an enterprise and raise its market
profile; The former also holds the potential to generate the
greatest impact and returns; while the potential
h) to lead the market and reinforce a reputation as impact and returns of the latter are strictly limited.
market leader; As change in the former is relatively greater and less
i) to open new horizons so as to get out of a rut or familiar, the risks in seeking and implementing such
avenues with limited potential; ªnewnessº are considerably greater; those associated
j) to stimulate staff with interesting and with the latter are commensurately lower. These are
challenging work; crucial factors when determining the kinds of
k) to attract and retain higher calibre staff; innovations to be developed. The spectrum of
newness' is shown in Figure 4.
l) to provide stability for the workforce;
m) to attract extra funding; 4.9 Sources of ªnewnessº
n) to attract alliance partners; The sources of ªnewnessº might be personal to
individuals or relate collectively to groups within an
o) to encourage those with good ideas to approach enterprise or whole enterprises. They should be
the company; sought in the following:
p) to reduce competition and/or the influence of a) aspirations and ambitions;
competitors.
b) attitude towards the future;
4.7 ªHigh productivityº innovation c) attitude towards problems, constraints, threats;
To gain competitive advantage in circumstances d) vision and perceptions of the future;
where resources are necessarily constrained, it is
crucial for enterprises to focus efforts on e) where boundaries are placed;
opportunities that yield greatest operational, f) the distance ahead it is sought to work and
psychological and financial benefits. influence;
The curiosity of staff members, the challenge to do g) how things are put together;
better within a company, customer requests or h) how the future is linked to the present;
dissatisfaction, and competitive pressures all act as i) what is done;
spurs to innovation. However, particular special
efforts should be made to generate, ªhigh j) how these things are done.
productivityº innovations that: ªNewnessº might be at the core of a product or
a) spawn further innovations; process and suffuse it; or it might be superficial and
confined to a minor part. For example, the adoption
b) solve more problems than originally envisaged; of a new manufacturing process might require
c) interest and inspire more people; radical changes to the design and assembly of a
d) are easy to ªsellº, internally and externally; product's components. However, these significant
e) are easy for colleagues to comprehend, adopt changes might be invisible as the external
and make their own; appearance of the product and the way it is operated
might remain unaltered. By contrast, simply changing
f) arise out of trouble-free development; the colour of a product to one that is unique in the
g) are easy to implement and fit more readily into market might transform it in the eyes of customers.
host organizations;

 BSI 11-1999 9
BS 7000-1:1999

Figure 4 Ð Spectrum of ªnewnessº

4.10 The value chain e) Use and make widely accessible the skills,
Research reveals consistently that success with knowledge and experience within the enterprise
innovation requires attention to far more than the (the ªcorporate softwareº).
technical content of products: this might not be f) Motivate all staff involved whilst understanding
understood by customers, or they might take it for organizational capabilities and limitations.
granted (see note to Figure 2).
g) Use advances in information technology to
Potential innovations should be sought throughout speed and expand the potential for more effective
the value chain not just in the technical aspects of communication throughout the enterprise.
product development, for example, by examining
how an organization operates, the way it creates new h) Ensure that there is a system by which
products, its fabrication processes and marketing innovative work is undertaken and that this is
through to final disposal of products. communicated to and accessible to all employees.
The full span of the value chain is set out in i) Place staff on the front line of innovation and
Figure 5. promote their ability to contribute to the corporate
innovation programme.
4.11 Basis of effective innovation management
The following list summarizes the key actions in j) Promote innovation through teamwork to
effective innovation management, the prerequisites in expand opportunities tackled and increase overall
the context of this standard. benefits. Encourage internal and external
a) Establish a culture in which there is a networking.
fundamental belief that the future can be planned k) Build an image, in the market, of achievement
over the long term and that the future can be through innovation to encourage outsiders to bring
created. their ideas and predispose them favourably to
b) Formulate a clear long-term vision with clear collaborating when approached.
objectives and tangible goals, then ensure that l) Encourage the generation of ideas or
short-term work is a seamless part of the approaches where there is little or no competition.
long-term continuum. m) Ensure innovations are properly supported, and
c) Adopt a holistic approach to products. that there is provision of adequate resources
d) Rehearse and plan customer experiences over (personnel, funding and facilities) throughout the
complete product life cycles as the basis for value chain.
design work.

10  BSI 11-1999
 BSI 11-1999

Figure 5 Ð Where opportunities might be found to innovate at every stage of the value chain

BS 7000-1:1999
11
BS 7000-1:1999

n) Form innovative alliances to reinforce market 5.2 Responsibility for innovation

positioning and reduce the impact of competition. An organization's capacity to innovate is affected far
o) Encourage innovation in the way problems are more by those who set the environment in which
defined, especially in the way needs are innovation is to occur and manage innovative
articulated: creative briefing goes a long way activities than those who undertake the creative
towards the formulation of creative solutions. work, including specialists brought together into
innovative teams. Therefore, it is essential that
p) Encourage an imaginative configuration of competent and experienced executives are assigned
projects, especially in the expertise and resources responsibility for innovative activities.
brought to bear on a problem.
Ultimate responsibility for promoting and sustaining
q) Encourage innovative solutions, especially in innovative activity in an organization rests with
terms of providing comprehensive solutions to owner-managers, partners, or the chairmen of
consumer and business needs: copying becomes company boards of directors. These individuals have
considerably more difficult when creative a collective responsibility to ensure that their
solutions cover greater ground and incorporate organizations have a clear stance and direction with
ªsoft intangiblesº. respect to innovation so that full benefits might be
r) Establish a ªgatewayº review system to monitor reaped through such activity. Owner-managers,
progress at opportune intervals, allow opt-outs, partners and chief executives in larger enterprises
revisit previous ªfailedº initiatives, and tailor work are responsible for ensuring that this direction is
to changing circumstances. followed effectively and that innovation does,
indeed, make a full contribution to an organization's
s) Maintain a genuine and visible commitment to performance.
effective innovation and design, and ensure that NOTE For the sake of brevity, the term ªprincipalsº is used in
innovations are exploited to their full potential. most instances in this standard to denote owner-managers,
partners, board directors and other top executives.
t) Be aware of customers interests and needs in
order to be able to offer a complete solution to It is critical that the principals of an enterprise drive
customer requirements. corporate innovation to ensure their organizations
survive profitably well into the future. Colleagues at
u) Maintain a commitment to quality and lower levels in the organization should inevitably be
reliability. more focused on the present and short-to-medium
v) Be aware of competitors and their innovative term futures, therefore they are less likely to have
activities as well as other relevant activity in other time or resources to explore the long-term future.
fields relating to innovation. Principals might assign day-to-day executive
w) Evolve a blame-free culture that also underlines responsibility for innovation to colleagues who
the value of learning the lessons from failures. report directly to them. All these individuals should
demonstrate a clear understanding of their
x) Encourage innovative thinking by providing a responsibilities and commitment to innovation
stimulating work environment that might require through their statements and actions. It is important
some individualization of workspaces. that their job descriptions clearly state their roles
and responsibilities in promoting innovation. These
5 Managing innovation at the should be reviewed and updated periodically.
Aspects of responsibility for innovation should be
organizational level clearly communicated to junior colleagues so that
5.1 General they know who to turn to for guidance, who to
submit ideas to for assessment, who to gain
This clause addresses matters that relate to the authorization from in order to proceed with
management of innovation from the perspective of particular ideas or projects, or who to turn to for
an enterprise as a whole. It focuses on the direction other decisions relating to innovation.
and guidance that should be expected from
Broadly, those who have responsibility for, lead or
owner-managers and partners in small firms, or champion innovation should:
board directors and senior executives in larger
a) promote the view, and convince colleagues, that
enterprises.
the organization can influence and even create the
Organizations develop their competencies in future;
managing innovation in stages. The way principals b) establish that planning products and activities
progress through these stages is strongly influenced for the long-term future is worthwhile and is
by their personal interests, the specific undertaken seriously;
circumstances of their organizations and the markets c) have a tangible record of achievement through
served. innovation;
NOTE The term ªcorporateº in this standard is used in relation d) develop a corporate environment that nurtures
to the top-level perspective in large, medium and small
enterprises, as well as issues that span the entire organization.
innovation and ensures that, where appropriate,
time, resources and support are committed to
long-term products and services;

12  BSI 11-1999
 BS 7000-1:1999

e) provide a future vision that drives the corporate

innovation effort;
f) provide a role model that inspires colleagues;
g) instil values and understanding of the
organization's mission and objectives, and provide
a framework by which colleagues can operate,
then leave them to get on with innovating to
generate success;
h) tolerate a greater freedom of action to allow
innovation to flourish;
i) make innovation an explicit and ªvisibleº aspect
of an organization's culture;
j) communicate the organization's innovation
philosophy in a way that can be ªpassed onº
without difficulty throughout the organization and
personalized by each employee;
k) promote the best use of the organization's
intellectual property and endeavour to make better
use of what competitors and others have;
l) have the facility to ªnavigateº through the full
range of disciplines, processes and projects within
an enterprise as well as through major corporate
change programmes;
m) act as ªexpert impresariosº who can bring
together the right skills, teams and resources, and
create alliances to address appropriate issues;
n) promote an organization's reputation for
successful innovation.
5.3 Formulation of innovation objectives,
strategies and programmes
5.3.1 Context for longer-term product creation
Research has revealed consistently that innovations
that address market needs have the highest record of
success. Therefore, all innovative activity should
seek to deliver clear customer benefits while being
anchored to the achievement of corporate objectives
and to facilitate corporate strategies (see note to
Figure 2).
When dealing with the longer term, care should be
taken not to base plans substantially on current
customer needs and market trends. Extrapolation of
such factors is equivalent to a ªtechnology pushº
approach which has a significantly inferior record of
success.
Clearer guidance on market relevance and customer
value will derive rather more from a vision of the
future based on a deep understanding of the
principal drivers of change in markets and the core
technologies used. Therefore, the context for
creating long-term products should be a clear future
vision. A carefully crafted statement of an Figure 6 Ð Iterative analysis from corporate
organization's business mission might provide a objectives to master innovation programme
powerful motivation and sense of direction in this
respect.
Figure 6 outlines the iterative analysis that principals
should undertake to formulate an innovation
programme built on the solid foundation of
corporate objectives.

 BSI 11-1999 13
BS 7000-1:1999

5.3.2 Corporate objectives, strategies and Ð meticulous planning for the introduction and
mission efficient implementation of innovations;
Corporate objectives should provide the foundation Ð training to upgrade innovative performance;
for innovative activities. Principals should formulate Ð acknowledgement and celebration of innovative
such objectives in a precise and, whenever possible, achievements and success;
quantifiable manner. Corporate strategies should be Ð a passion to learn from all experiences,
drawn up as prescriptions of approaches to be taken especially failures, as well as from others.
and of how resources will be harnessed to achieve
the corporate objectives set. Care should be taken to ensure that the products
These objectives, strategies and, where appropriate, and associated outputs reflect and enhance the
a vision and a mission statement should be organization's identity, and that innovation and
documented in a business (or corporate) plan, and innovation management procedures are coordinated
cited in operating and departmental plans. and in harmony with the prevailing corporate
culture.
Principals might also wish to publicize and explain
objectives and strategies in their organization's other 5.3.4 Future vision
communications such as annual reports, briefings to The context for long-term planning is a vision of the
financial institutions and staff training programmes. future that sets out the key characteristics of target
5.3.3 Innovation culture markets, what the principal drivers will be in terms
of customer needs and activities, perceptions and
Those who lead innovation should take account of
expectations, and hence the bases of purchase
the corporate identity and culture of the
decisions and determinants of satisfaction and
organization: the physical, operational and human
loyalty.
features and values that give the organization its
unique personality. The vision will also set out how the organization
It is essential to evolve a culture that nurtures intends to position itself in that future and contribute
innovation. Such cultures are chracterized by the to making that future become reality.
following: These scenarios will include descriptions of how
Ð a core belief that the future can be influenced, people live and go about their business. Therefore,
and planning the long-term is worthwhile; they will be informed by changes in the natural and
built environment, core technologies as well as life
Ð a restlessness with the current situation: the
styles, developments in business practice and society
necessity to change being at the core of all
activities; generally.
Ð a clear vision of the future and the role of the 5.3.5 Innovation philosophy
organization and its products in that future; Innovation philosophy, objectives and strategies are
Ð all changes are geared to the attainment of among the prime determinants of what is acceptable
clear stakeholder benefits; to the organization in terms of innovative activities
Ð an openness to ideas coming from anywhere and investments. Consideration should be given to
that will help enhance products; formulating a statement of an organization's
Ð an openness to ideas that point to different innovation philosophy to complement its business
interpretations of requirements and approaches to mission. This should explain an organization's
tackling problems as well as unusual solutions; general stance towards innovation, the prime reasons
for promoting innovation and its contribution to
Ð all staff feel they can contribute to change
corporate performance.
within their organization;
Ð the stamina to achieve visionary objectives; 5.3.6 Innovation objectives and strategies
Ð a greater tolerance of uncertainty; Principals should ascertain, document and
Ð a higher level of experimentation and an communicate the implications in relation to
acceptance that not all attempts succeed; innovation of their organization's overall business
objectives, culture, future vision and strategies.
Ð staff devote a fair time working on ideas to
Innovation objectives and strategies should then be
enhance products and the customer experience;
formulated and, wherever possible, quantified.
Ð a holistic perspective of products;
Principals should also nurture a proactive attitude
Ð a willingness to take bigger risks, though on a among colleagues: for example, staff should have an
much better informed basis; open invitation to put forward innovative suggestions
Ð an enlightened yet rigorous system for vetting to facilitate the implementation of corporate
innovative ideas with fast decision-making; strategies, hence the achievement of corporate
Ð direct staff access to ªcorporate softwareº to objectives. Where appropriate, support should be
make best use of skills, knowledge and provided to develop these suggestions into formal
experience; proposals for longer-term investments that are
Ð an emphasis on appropriate teamwork and reviewed before being sanctioned for implementation
networking; (see also 6.10).

14  BSI 11-1999
 BS 7000-1:1999

5.3.7 Business, innovation, design and product 5.3.9 Master innovation programme
plans All approved proposals for investments in innovation
Innovation should be considered in all major plans should be coordinated within a master innovation
drawn up within organizations. Principals should programme that sets out specific innovative activities
ensure that all relevant innovation and innovation to be undertaken, the outcomes sought and the
management issues are addressed during the contributions to the attainment of corporate
planning cycle, and that the results of deliberations objectives.
are documented in the business (or corporate) plan. The programme should encompass all innovative
If a separate section on innovation cannot be activities, both long- and short-term, broken down
created, these issues should be clearly identified in into stages. Skills and other resources to be
other sections. committed, outcomes and deliverables at each stage
Such plans should address the manner in which should be specified together with associated
market demand, specific customer needs and time-scales.
technological advances will be brought together in It is important that this programme can be referred
the range of products offered by the organization. to by all those involved and interested in innovation
Industries, markets and specific niches where in a formal, easily accessible working document.
attention and resources will be concentrated should 5.4 Communication of innovation objectives,
be highlighted. strategies, philosophy and programme
The emergence of new markets and forecasts of Managing innovation has been likened to managing
potential demand should be complemented by chaos. Innovation certainly thrives on a degree of
assessments of the positions of current products in freedom, therefore an ability to control innovation
their life cycle, and hence of future turnover and with a light and enlightened touch is a distinct
profits. This analysis will reveal potential gaps in advantage.
corporate performance. Strengths and weaknesses,
The value of plans will be enhanced if they are
as well as opportunities and threats in relation to
documented and communicated effectively.
innovation, should then be explored.
Principals, executives and staff need to be fully
This information could be expanded into a separate aware of the direction and objectives set, as well as
document focusing specifically on the organization's the parameters that define the innovation highway,
current and planned range of products. so that they know the rules, are familiar with the
5.3.8 Innovation highway pitch and understand the ªgame planº. This
The creation of a future vision should be followed by knowledge will help them to focus their efforts and
a wide-ranging review of an organization's current work in unison. Yet most organizations restrict the
capabilities, and current and emerging technologies circulation of plans to key executives. Considerable
and practices, in order to draw up a clear, benefits might be derived from informing virtually all
challenging ªinnovation briefº. This should guide and staff of the essential features of plans through team
inspire colleagues throughout the organization to briefings, staff conferences and company
come forward with appropriate propositions to be newsletters.
developed into long-term products. It is also important that stakeholders outside an
organization are kept appropriately informed of its
Such a review should encompass: analyses of
overall intentions and strategies. This will give
customer experience with the organization and its
reassurance that proper preparations have been
products; scenario setting, envisioning future
made to ensure future prosperity, and that there is
markets, events and activities; anticipated changes in
the clear sense of direction and leadership to turn
legislation; trends in leading edge practices;
those intentions into reality.
competitor analyses.
Staff often get the impression that ideas for change
The results of these analyses might then feed into
and the implementation of change are the
the innovation team brainstorming sessions in which
prerogative of senior colleagues and they have little
principals might participate to generate further ideas
chance of influencing outcomes. This misconception
on opportunities to be targeted in markets,
is dangerous. All staff should be made aware of their
technologies, practices or products.
individual responsibility for the successful
The outcome of these sessions will be the implementation of plans and efforts should be made
determination of the innovation highway that will to issue a summary reference and other working
take the organization to its desired future. This is documents that inspire and motivate staff, and help
made up of two key components: to build team spirit.
a) the time into the future which will be planned Visualization and the use of design might do much to
(or the length of the highway); bring to life textual and quantitative information, by
b) business and operating constraints within which providing fresh perspectives and vivid presentation
innovative opportunities will be sought and using stimulating and easily comprehensible visual
developed (or the width of the highway). imagery.

 BSI 11-1999 15
BS 7000-1:1999

5.5 Infrastructure for managing innovation 5.6 Environmental dimension of innovation

Enlightened innovation management requires an management
infrastructure of values, policies and procedures that The environmental dimension of product
goes beyond the personal interests and approaches development and business processes should be given
of the individuals in charge. A system of greater attention. There is increasing legislation to
management should be adopted formally and linked protect the environment and to curb waste and
to the equivalent systems of other business pollution. Consumers often appreciate buying from
disciplines. organizations known to be responsible members of
It is a key responsibility of principals to create such the community.
a ªlivingº system and promote it to the point where it Organizations should address environmental issues
is fully implemented, operates smoothly, is openly continuously to:
appreciated and is firmly embedded within an a) reduce consumption of energy in their
enterprise. processes;
An organization's innovation management system b) reduce their products' consumption of energy
should encompass the following key issues: during use;
a) innovation responsibility and leadership; c) reduce material waste (for example, during
manufacture and in packaging);
b) development and sustenance of a culture within
enterprises that nurtures innovation; d) reduce or eliminate adverse impact on the
environment through emissions and discharge of
c) innovation philosophy and strategy formulation; waste;
d) auditing innovation and innovation management e) eliminate complication in fabrication and
practices; assembly (for example, by reducing unnecessary
e) creation of a future vision for the enterprise; variety in materials and components used);
f) determination of the innovation highway; f) introduce recycling of materials and spent
g) new idea generation and processing; components;
g) ensure continuity of their product range,
h) monitoring market and technological allowing compatibility when upgrading without the
development and trends; need for replacement;
i) capturing and making best use of corporate h) extend the durability and the useful life of
knowledge, skills and experience; products by designing out unnecessary
j) development and/or harnessing appropriate obsolescence;
technologies; i) increase efficiency of distribution by reducing
k) assessment of opportunities and risks, size, and improving stackability and storage;
particularly in relation to timing and degree of j) contain or reduce costs (including those for
innovation; disposal of used or obsolete products).
l) planning the introduction and sustenance of NOTE Refer to the ISO 14000 series for more detailed
guidance on environmental issues.
innovations;
m) development of the impresario skills needed to 5.7 Legal dimension of innovation management
put together innovative projects; The legal aspects of managing innovation are of
n) establishment of protocols for sharing critical importance because of increasingly stringent
information and the formation of innovative statutory regulations, and a greater frequency of
alliances; litigation by those affected adversely by products
and the manufacturing process.
o) establishment and support of corporate
With the higher rate of development and
innovation teams;
convergence of technologies used, copying
p) training programmes to upgrade innovation and innovations is much easier and faster. There is also
innovation management skills and performance; more widespread counterfeiting and more frequent
q) funding/resourcing of innovation activities; infringement of intellectual rights. Therefore, there is
r) assessment, protection and exploitation of a need for considerable care and vigilance to ensure
intellectual property; that an organization remains within the law wherever
it operates, protects its intellectual assets and profits
s) evaluation of the contribution of innovation to from them for as long as possible.
an organization's performance;
There should also be formal procedures in place to:
t) projection of a reputation for achievement a) register designs, patents, and trade and service
through innovation; marks;
u) security arrangements for keeping innovation b) detect counterfeiting and other infringements
plans and programmes confidential within the quickly, and take strong action to stop them;
organization. c) deal with product defects and complaints;

16  BSI 11-1999
 BS 7000-1:1999

d) pick out fundamental flaws in design that might j) Speed processing of innovations.
trigger an early recall from the market; k) Build better understanding of customers,
e) keep track of new legislation in all countries suppliers, technologies and practices.
where the organization has interests; l) Restructure products or market.
f) make appropriate representations to influence m) Transform enterprise by adopting practices and
the debate about proposed new regulations or standards of partners.
laws;
n) Promote early buy-in thus achieving smoother
g) ensure the organization is ready to comply with implementation and longer-term survival of
new legislation whenever necessary; innovations.
h) check compliance with all existing and
o) Surmount barriers and speed entry to markets.
anticipated standards, testing procedures,
regulations relating to health and safety at work, Apart from setting objectives, there should be
and disposal of packaging and products after use. agreement on the scope, timing and duration of
alliances. Smaller enterprises should also weigh
5.8 Designing the total product experience carefully the benefits of entering into very close
Customers' satisfaction arises out of their overall working relationships with substantially larger
experience with products and associated services, organizations, not least to ensure an ªequivalenceº of
including the way in which an organization responds contributions and a sensible separation of assets
when contacted. Therefore, careful attention should should the alliance be terminated for whatever
be paid to those components of the total product reason.
that contribute to this experience. Sensitivity
analyses will help determine the priorities set by 5.10 Investment programmes
customers and users, and the effects of each 5.10.1 Resourcing the long term
component on the attractiveness of the total product.
Products and associated services are the lifeblood of
Principals should ensure that all these elements are
organizations. Skimping on investment in new
identified and defined, understood by and familiar to
product and service creation is very likely to
staff.
jeopardize future competitiveness and profitability.
5.9 Innovative alliances
Public sector organizations should ensure they gain
With the increased complexity of technology and approval from appropriate government departments,
scarcity of resources, organizations should consider while voluntary agencies will need to satisfy their
harnessing the skills and experience of external governing bodies.
parties around the world. Customers, suppliers,
distributors and even competitors might become Principals should ensure that appropriate resources
members of an organization's innovation team are available to undertake the research, design and
whether or not collaborative initiatives and development work as well as the training indicated
longer-term alliances are formed. in the master innovation programme. This goes
beyond releasing existing funds or generating
Innovative alliances might be formed at any stage additional funding for specific projects: continuity of
within product development or the rest of the value resources at sensible levels is essential to raise
chain. They might involve expert consultants, standards, and then sustain excellence.
universities or research institutions in advancing the
technologies needed for future products. They might Resourcing long-term research costs relatively little:
involve organizations with reputations as innovators typically an additional 5 % on existing product
or leaders in particular business procedures or development budgets made up virtually exclusively
practices such as marketing or customer care. of people's time. In many organizations, this
The list below summarizes the reasons mentioned represents roughly 0.25 % of annual turnover. Such a
most frequently for establishing innovative alliances. small investment should not affect share value,
therefore the short-termism of financial analysts and
a) Lighten the burden of financial investment. institutions should not be used as an excuse for
b) Spread workload. desisting from such important commitments.
c) Gain access to knowledge, skills, and Organizations that seek to maximize short-term
experience, and extend geographic reach. profitability from current products and services
d) Gain access to other resources. (ªcash cowsº) are likely to have insufficient invested
e) Put together more comprehensive, better in long-term product planning.
integrated offers to customers. The payback period on this investment might be
f) Gain competitive advantage through critical long-term, perhaps twenty or so years, so the
mass (size, resources, market share, etc.). investment might be written off as an expense.
g) Generate new initiatives that would not be It will be necessary to create a ªtreasure chestº to
possible otherwise. fund innovative ideas and ventures. This will also
h) Reposition and raise profile of enterprise. help to control the costs associated with such
i) Attract funding. initiatives.

 BSI 11-1999 17
BS 7000-1:1999

In several instances, work on longer-term product Financial planning for longer-term products, and the
development might generate shorter-term benefits. costing of long-term market and product
Care should be taken to act appropriately on ideas conceptualizations should be facilitated by an easily
that are likely to generate revenues in the comprehensible system of budgeting. Guidelines on
short-to-medium term, to ensure that they do not appropriate expenditure on different elements and
jeopardize long-term work. the fair allocation of overheads will also be helpful.
5.10.2 Financial plans Among the details that should be specified in
financial plans are the following:
Principals should ensure that funds allocated to
long-term product conceptualization and a) levels, timing and nature of cash calls;
development are spent as intended and not withheld b) anticipated market and share;
or diverted unless there are overriding reasons. c) revenues to be generated over a specified time;
These should be clearly stated and carefully
checked. If funds have to be reallocated, the impact d) anticipated margins to be achieved;
on individual initiatives and the overall innovation e) profits or surpluses to be generated;
programme should be taken into consideration and f) payback periods;
the plans revised. g) rating of risks involved;
It is vital that the financing of innovative activities, h) other budgetary constraints;
particularly the conceptualization of new products, is
written into corporate, business and operating plans. i) cost-benefit analyses;
Administering imaginative projects from stage to j) returns on investment and/or capital employed;
stage in an undisciplined manner rarely leads to k) maximum project budgets;
successful outcomes. Therefore, the resource
l) monitoring of expenditure;
requirements and cash-flow implications of
conceiving and developing long-term product m) revision of allocated budgets where necessary.
designs, as well as the business systems and 5.10.3 Resource plans
procedures that will enable these to be undertaken
effectively, should be forecast and set out in the Resource plans should specify the resources to be
financial plans as well as in the master innovation committed to addressing innovation and innovation
programme. This should ensure that funds are management issues. Particular attention should be
available when required. given to the following questions.
A proper balance should be established between a) Does the proposed activity make appropriate
funding activities from, say, departmental revenues use of in-house knowledge, skills and experience?
and making new corporate funds available from the b) Will new technologies be developed, bought in
centre. Principals have to make clear which activities or contracted out to specialists and suppliers?
will be sustained entirely from central (corporate) c) Will new equipment or design aids be developed
funds, which will be financed entirely from specifically for the enterprise or could standard
departmental budgets, and which parts of an versions be used, perhaps with minor
enterprise will be expected to contribute a customization?
proportion of the budget. These should be agreed d) Is adequate accommodation available (for
beforehand. example, space, location and controlled work
Moreover, the required funding should be split environments) to allow team members to operate
between capital and revenue accounts. Capital effectively?
allocations should be made for anticipated changes e) Are administrative systems in place to enable
in facilities and equipment to take advantage of the activity to progress smoothly from initiation
enhancements in technology and systems. All these through to completion? Are these systems
factors should feature in the master innovation adequately coordinated across the different
programme that sets out clearly when funds will be functions and disciplines within the enterprise?
required. Where appropriate, figures should be
discounted to make allowance for the passage of f) Are the necessary ancillary resources and
time and so reveal net present values. activities planned so that innovative activity
progresses smoothly without cross-functional
Capital assets earmarked for innovation should not difficulties, especially at the transitions between
be utilized for operational purposes if such use stages where responsibilities might transfer from
jeopardizes the innovation programme. However, one function to another?
offsetting the capital cost by sharing facilities and
expenses should, if feasible, help to optimize the
costs of, and returns from, innovation activities.

18  BSI 11-1999
 BS 7000-1:1999

Two further key components of any innovation 5.12 Evaluation

investment programme relate to training which: In evaluation, the three most significant assessments
a) raises awareness of innovation and raises that need to be undertaken are the following:
tolerance to uncertainty and risk, as well as a) the contribution of innovation to the
enhancing the capacity of all staff to be innovative; performance of an enterprise, especially the
b) enhances innovation management skills. outcomes of innovative activities, the extent to
Where an enterprise seeks to sustain a close working which innovation goals and the organization's
relationship with customers and suppliers, overall objectives are met, and the financial
consideration should be given to offering them the results;
opportunity to join in such training: those who train b) the overall cost of an innovation programme
together often relate better and work better together. assessed against the whole-life returns from
Substantial benefits could derive from a better innovations as well as capital and opportunity
understanding between the parties, a common means costs;
of expression, and a convergence of attitudes and c) the master innovation programme (including
approaches. control of progress, addressing an organization's
innovation requirements, proper resourcing of
5.11 Review and control of innovative
activities, effective integration of all disciplines in
activities and procedures
innovative activities, sanctioning of innovative
Principals are responsible for monitoring the level projects and reinforcement of the position of
and nature of innovative work undertaken by, or on innovation within the organization).
behalf of, their organizations. This requires regular
There should be a formal procedure by which
reviews of outcomes from different departments,
investments in innovation are reviewed, evaluated
facilities, subsidiaries and agents. Reviews should
and sanctioned. That procedure should be formally
also enable the creativity of ideas and quality of their
documented, transparent and familiar to a wide
execution to be checked, as well as the ªfitº with the
range of personnel within the organization. The
future vision and parameters set in the innovation
criteria for approving proposals should be clearly
highway.
stated with guidance to assist employees in putting
Reviews should be extended periodically to examine forward proposals that have a good chance of being
innovation management procedures. The same approved. Similar principles should apply to the
applies to practices and facilities that might help review of projects in progress.
nurture innovation (location and quality of work
Innovation objectives, strategies and programmes
environment, amenities, equipment and so on).
should be reviewed periodically to check their
Annual reviews of innovation management continuing relevance and effectiveness, not least in
procedures will normally be adequate to provide sustaining the challenge they present in taking the
insights and allow corrective action to be taken. organization forward. Annual reviews are normally
There should be a formal procedure for monitoring adequate, though six-monthly reviews might be
the progress of the master innovation programme in considered in organizations operating in fast
which the staff involved should participate. These developing technological areas.
reviews should be scheduled into the programme It is important to stress that evaluation should not
itself. become an end in itself, but should always be
Outcomes should be circulated widely within the viewed as a means to more effective performance. It
organization for information and debate, especially should never become a burden on those who
to those who can act on the information to improve innovate, or disrupt the momentum of innovative
performance. Principals should be informed of any activity. Responsibility for carrying out appropriate
slippage or deviations in parameters and goals, and assessments lies squarely with innovation leaders.
the remedial action taken. Principals should ensure that the lessons learnt from
Reviews can be assisted through the use of evaluations are properly documented and
checklists such as the self-assessment questionnaires disseminated. Sharing experiences should help avoid
set out in annexes A and B. the repetition of mistakes and the unnecessary
duplication of work. Another likely benefit is that
problems should be anticipated or diagnosed earlier,
leading to prompter, more effective action.
Finally, the performance of those with
responsibilities for innovation should be evaluated at
appropriate intervals. This might lead to revisions of
job descriptions, adjustments in responsibilities,
seniority, reporting lines and the upgrading of skills.

 BSI 11-1999 19
BS 7000-1:1999

Numbers in bold face refer to the relevant clauses in this standard

NOTE In small firms, the owners will probably be involved in the specific search for innovative products. In these cases, the following activities
might occur during top management brainstorming sessions (6.5): analyses of customer±product experience cycles (7.4), visualization (7.5),
scenario planning (7.2), backcasting (7.3), evaluation of intellectual property (7.6), and the establishment of strategic alliances (5.9).
Figure 7 Ð Flow chart giving an overview of the innovation management framework

20  BSI 11-1999
 BS 7000-1:1999

Figure 7 Ð Flow chart giving an overview of the innovation

management framework (continued)

 BSI 11-1999 21
BS 7000-1:1999

6 Implementing a complete innovation Considerable increases in pace might be achieved

with the introduction of parallel working wherever
management framework: system and possible and adding resources when necessary. The
mechanics increase in revenues which are likely to arise from
6.1 General getting innovations implemented quicker might
justify the extra resources involved.
This clause gives guidance on aspects of innovation
management from the generation of an idea through 6.4 Top management review
to bedding it into an organization's culture. The Before planning the future, the current situation
stages are set out in the order in which they need to should be identified and quantified in a
be undertaken; principals should endeavour to broad-ranging review covering the activities
complete each stage before moving on to the rest. described in clause 5 of this standard. This should
However, the stages are iterative and checks should include an analysis of strengths, weaknesses,
be made back, perhaps making changes to earlier opportunities and threats as well as a skills audit to
stages as more information becomes known or identify the existing skills resource.
circumstances change.
6.5 Top management brainstorming: scope and
The stages apply equally well to small enterprises
activities
and large organizations. The procedures adopted will
be similar, the differences should be in the degree of Groups of principals will meet over a series of
scale involved. brainstorming sessions to identify the basic
parameters within which new products must fit.
The key documents that set out the long-term
Their aim will be to plan the direction of the
development of business and innovation strategy are
organization which spans three or more product
tied in closely with the corporate mission. They
generations. They will determine the length and
should include consideration of how to translate
width of the innovation highway. It is not the
core objectives into products over the planning
purpose of these sessions to distil specific product
period and factors that cannot be planned ten years
ideas or project initiatives; however, if any emerge,
(or three generations) ahead.
they should be recorded for consideration and
They will indicate what it means to adopt a holistic, appraisal at a later stage (see 6.9).
complete life cycle perspective to product
One of the keys is to identify what an organization
conception and development, from first customer
does well and then plan to develop those strengths.
awareness to final disposal.
It might be that the organization aims to spread the
6.2 Informal communication influence of the brand. For example, if the
Though a framework (see Figure 7) should be organization has a reputation as a leader in specific
prescribed, this need not replace the informal areas, it might be possible to enhance the associated
communication that exists within an organization. goodwill or extend its influence into additional areas.
Informal organization tends to reduce the burden of To create the stability necessary for the later stages
bureaucratic paperwork and should be encouraged. of long-term product development, the outcome from
It should also be remembered that people and these brainstorming sessions should not be altered
internal politics are nearly always more than 50 % of more than once a year.
the process.
6.5.1 Determining the length of the innovation
6.3 Fast-tracking highway
It is not advocated that organizations introduce a The aim is to plan three product generations ahead.
fast-track for the development of long-term or This time will vary depending on the type of
short-term products or services. The process here products the organization offers. This is shown in
describes a route that should be followed with all Figure 8. By carefully planning the length of the
long-term developments. Any fast-track procedure innovation highway, it should be possible to generate
that involves omitting stages or tackling them less seamless change even with radical innovation.
rigorously should be avoided as these are very likely
to increase the risks of failure.

22  BSI 11-1999
 BS 7000-1:1999

Figure 8 Ð The length of the innovation highway

6.5.2 Determining the width of the innovation Some parameters are shown in Figure 9.
highway The width of the innovation highway identifies the
Having determined the period over which new kinds of products and market sectors that might be
products will be planned, the next stage is to targeted for development over the planning horizon.
determine the parameters that circumscribe that It might even provide parametric product briefs.
work. This is the width of the innovation highway. Care should be taken when specifying parameters: if
These parameters might include: too restrictive, they might stifle the potential of the
a) financial factors such as the maximum that can organization; if too vague, those involved in
be invested in any project, the minimum return on development work will have insufficient direction.
investment or maximum payback period; The width of the innovation highway will be the first
b) maximum development time to bring a product ªtest gateº for checking the ªfitº of new product and
to market; service ideas with corporate innovation objectives
c) performance and risk measures against which and strategies. Those that do not pass the test and
ideas and project proposals will be judged cannot be amended appropriately should be
(see 4.9); eliminated, or archived for future reference.
d) specific benefits sought perhaps to enhance 6.6 Choose innovation leaders
customers' experience of the organization and its At this point, it will be necessary to nominate one or
products; more individuals to take charge of the efforts to plan
e) emerging technologies and practices that hold the longer-term future. People who think
particular interest and promise; strategically are needed to champion long-term
f) strengths to build on: core technologies and products. It is advisable that team leaders are senior
practices that need to be boosted and protected; people and, to ensure continuity, those likely to
g) new technologies and practices that ought to be remain with the organization for a significant time
introduced to reinforce core technologies; into the future, at least long enough to complete the
h) weaknesses that need to be eliminated; development to market.
i) sources of likely threats and counter strategies;
j) organizations that might be approached with a
view to collaboration.

 BSI 11-1999 23
BS 7000-1:1999

Figure 9 Ð Possible aspects of the width of innovation highways

6.7 Select the innovation team 6.7.1 Job security

Potential team members will be identified with the It is not possible to innovate over the long-term if
help of skills audits (see 4.2 and 6.4). In smaller people do not feel secure in their jobs or foresee a
companies, the same people are likely to be involved threat to their security of employment as a result of
in both short- and long-term product development. In innovations they might generate. Enlightened
larger organizations, there might be different (though organizations do all they can to guarantee long-term
equally important) groups of people. Where separate job security for certain members of the organization.
groups are established, care should be taken to The fact that an organization is planning some period
foster harmony and common ownership of projects. into the future should indicate to employees greater
Those involved in longer-term activities should not job security. Further into the framework it should be
divest themselves of responsibility for the projects possible to identify specific skills needed to develop
once they have played their part as this attitude long-term products. This should underline to
might lead to antagonism between long-term employees with those skills their place in the
innovators and short-term developers. Open company's future product plans.
communication between these groups, and some
common members, are often instrumental in
enhancing working relationships.

24  BSI 11-1999
 BS 7000-1:1999

6.8 Develop a system for recording and These brainstorming sessions need to occur
archiving ideas regularly, say, every four months or so depending on
One aspect of long-term product development is the the type of products being developed. As the
need to retrieve ideas that have been considered outcomes of these sessions might be referred to over
before, perhaps several years previously. Before many years, it is necessary to archive the future
proceeding further, it is necessary to develop an ideas generated during these sessions (see 6.8). The
effective method for recording, organizing and tools and techniques that are used in the
retrieving ideas that emerge during the subsequent development of ideas at this stage are described in
stages of development. clause 7.
Ideas might hover around an organization for many Individuals within an organization will only discover
years; during that time, people might retire, find jobs the future if they look for it. Long-term products are
elsewhere, or simply forget. If ideas, discussions and likely to be fundamentally different from those the
processes are not documented, they are likely to be organization produces now. Therefore, those
lost. Furthermore, there needs to be an effective involved should try to think in a less constrained
archive of future ideas, probably stored by electronic manner, challenging conventional boundaries. Ideas
means and designed to provide easy access that emerge from this process are opportunities that
whenever required. An effective index will be needed need to be submitted to qualitative and quantitative
so that these ideas can be retrieved. For example, it examination.
might not be possible to develop these ideas One aim of this programme is to exploit innovations
immediately if current technologies cannot deliver to the full. This might require further brainstorming
the desired changes. However, once technologies sessions to identify a wider use of the innovations
advance to the required point, action should be being identified and subsequently developed.
taken promptly in a manner that avoids the In large organizations with branches or facilities that
unnecessary repetition of work. work on particular products, it might be possible to
This archive should also be in a form that remains designate these as ªcentres of excellenceº which
effective when computer systems have become focus on particular areas, with their own authority
obsolete. and autonomy.
6.9 Innovation team brainstorming: scope and 6.9.2 Mapping important milestones
activities Initially, a ªbroad brushº approach should be
6.9.1 General adopted to plan when products will need to be
enhanced (through short-term product repositioning
A second series of brainstorming sessions should
and upgrades) or replaced (longer-term product
now take place with the aim of creating the products
re-creation) as the current range declines in
and services that will fulfil top management's future
competitive appeal, and hence in profitability.
vision for the organization: to create the future
rather than simply respond to it. Several activities related to markets and emerging
technology might need to be executed concurrently
The purpose is to develop methods to envision
and associated milestones plotted over the length of
desired futures and new ideas, and then to identify
the highway; perhaps these could be displayed on a
the products that will be developed along the
wall of a secure office.
innovation highway.
Brainstorming sessions and detailed analyses of
These sessions will involve individuals identified as
customer±product experience cycles should help to
being able to contribute, who might be drawn from
identify potential product enhancements as well as
any department within the organization or from
new products. Once identified, significant research
outside. It can be helpful to establish internal and
might be necessary to determine the viability and
external networks of experts who have a particular
potential of the ideas.
facility or knowledge to think about critical aspects
of the future. Staff might be supplemented by Further brainstorming sessions are likely to alternate
outsiders with specified skills, for example, with complementary work, around identified
academics, futurists, specialists, consultants, problems and outcomes, which is assigned to
customers, suppliers and other alliances. individuals. Work should focus progressively on
more specific problems until it is possible for a
Employees are often too busy coping with the
product to be designed according to guidance
demands of the present to think properly about the
provided in BS 7000-2, BS 7000-3 and BS 7000-4.
future. Time allowances should be specified within
job specifications for employees to work on After running the activities described above for some
long-term future activities. Research for this standard time, several embryonic ideas should have been
has shown that these might range from 5 % to 15 % of generated, some having reached a more advanced
employees' time. The use of outsiders should help stage. These need to be developed in the
employees to think beyond their day-to-day jobs or shorter-term future.
the short-term projects they might be involved in.

 BSI 11-1999 25
BS 7000-1:1999

6.9.3 Mapping out future technology These ideas should be combined with those
Certain products might only become possible when generated as described in 6.9.2 and 6.9.3. The better
new technology becomes available; others might be ideas will be those that combine effectively.
created through advances in current technologies, by This process should also indicate where new
introducing unfamiliar technologies from other alliances might be forged for mutual benefit, perhaps
industries never considered before, or by using to deal with research or marketing processes, or to
familiar technologies in unfamiliar ways. attract funding. Internal alliances might be forged as
The methodology at this stage might take two well as those with external parties. Different
directions. departments or other subsidiaries within a group
might be invited to participate if they have the
a) Identify, over the length of the innovation
relevant skills and resources.
highway, products that could be developed and
then wait until the technology appears that makes It is at this point that a range of options for future
these possible. It is necessary, therefore, to seek products is fully revealed and evaluation of the best
relevant emerging technologies and this task alternatives can proceed.
should be written into the job specification of 6.10 Assess and filter new ideas
relevant employees of the organization. It might be
possible to ªpromptº other companies to develop As new ideas are generated, they will need to be
the technology, perhaps by creating appropriate assessed quickly to select those with the best
alliances. potential.
b) Identify technologies used or in development The first method of filtering ideas is to eliminate
elsewhere, then check how an organization might those that do not fit the length or width of the
apply them. Again procedures should be in place innovation highway as specified by top management.
to seek out useful technologies. Wherever possible, It is not possible to draw up a full specification
organizations should endeavour to incorporate the before this stage, therefore the normal method of
ªclever bitsº of products found elsewhere into appraising ideas against specifications is not
their own. possible. Furthermore, details cannot be planned at
this stage and it is unlikely that many of the ideas
The map of future technology might indicate gaps in that emerge from these brainstorming sessions can
techniques, materials, processes, procedures or be developed immediately. If they can, the
practice which can be filled in when the relevant procedures described in BS 7000-2, BS 7000-3 and
information becomes available. A technology route BS 7000-4 should be used.
map can be developed from this to span the length
of the innovation highway, showing the milestones at It might be that some particular product or service
which identified new technologies are likely to has been identified through these brainstorming
emerge and what targeted markets might make of sessions as being significantly different and in
likely applications. These technologies are more advance of products currently on the market and, at
likely to gain approval within the organization if they the same time, can be developed now. These
have been identified as ªfavoured areas of products are of the type that will ªleap-frogº the
technologyº (see 5.3.7). organization significantly ahead of the competition.
The best measures of likely 3-Gen products will
6.9.4 Mapping out future markets almost certainly relate to the whole life of the
Another way to proceed is to identify potential product.
future markets on the innovation highway and then It is wise to achieve a balanced-risk portfolio. The
plan the products and services to exploit those portfolio of likely 3-Gen products will include some
markets. that are high risk with high returns, and some that
It might be possible to identify the technology are low risk with higher returns. Those with low
necessary to develop particular markets, then to risks and high returns will be favoured over those
establish an alliance with organizations that could with high risks and low returns; wherever possible,
develop that technology. Such an alliance could the latter will not be taken up. This is shown in
assist in developing the technology. Alternatively, the Figure 10. Methods of identifying risk are outlined
alliance could become a customer, raising potential in Figure 11.
sales to a level that would make its development There are likely to be some threats associated with
worthwhile. any proposal, often from existing competition. These
Another way of investigating future markets is to need to be identified and appraised. Ideas that will
analyse the customer±product experience cycle and not overcome those threats should be eliminated.
then determine aspects that might be improved with But even these ideas should be appraised to judge
new products (see 7.4). whether aspects can be included to provide
incremental improvements or serial innovations.

26  BSI 11-1999
 BS 7000-1:1999

Figure 10 Ð Risk vs. potential

If the organization is exploring innovations that no 6.12 Plan product withdrawals and
one else is believed to be tackling, then there is no replacements
competition. If these are successful then the benefits Most organizations do not plan the withdrawal of
will be considerable so long as competitors cannot their products. Having identified products that will
copy them quickly. If an innovation is not successful emerge along the innovation highway, organizations
when first attempted, efforts should be made to gain should also be able to determine when products
as much feedback as possible, if viable, improve the should be withdrawn, even those that have yet to be
product, according to the lessons learnt, and
developed. The continued supply of spare parts and
relaunch it as soon as possible to maintain its
support services are likely to be important
market position and goodwill.
considerations in withdrawal plans.
6.11 Develop staged project work programmes
If there are gaps on the highway, the life of products
The planning should now have reached a point might be extended with incremental changes to fill
where only a staged, and more detailed, work
the intervals before an innovative product is ready
programme can be drawn up for each potential
for launch. Typically, the life of products might be
product. This should include milestones and
deadlines. Product specifications will gradually doubled by judicious improvements. Research has
emerge as the programme develops. Innovation shown a strong trend of organizations increasing
programmes tend to be highly iterative at this stage. product life cycles through incremental changes
while reducing the ªtime to marketº and the intervals
It should also be possible to identify work areas that
can be executed in-house and areas where help will between new model introductions. Decisions to
be required. This might be bought in, out-sourced or extend product cycles should follow careful analyses
lead to the formation of alliances. of costs and returns on resources employed.
In many cases, it might still be several years before it
is possible, or advisable, to develop a model or
prototype. Even so, development work should start
as soon as possible.

 BSI 11-1999 27
BS 7000-1:1999

From the customer's point of view, it is increasingly 7 Tools and techniques for managing
important that there is a seamless transition between
existing products and their replacements so that
innovation
upgrading leads to minimal inconvenience. Where 7.1 Brainstorming
customers seek to create some disruption in order to Brainstorming is a pivotal activity in the
create a new order, careful planning should help identification of future innovations (see 6.5 and 6.9).
achieve successful implementation and the desired Many have heard of brainstorming but relatively few
outcomes. undertake such sessions effectively.
6.13 Evaluate the framework Teams generate more effective ideas than individuals
Evaluations should be undertaken periodically to and brainstorming sessions are effective ways of
reveal whether the management of innovation has drawing out new ideas from teams. The sessions
been effective. Such evaluations should also help to should be held in comfortable surroundings away
determine and analyse the costs of operating this from distractions such as telephones. Those involved
framework as well as the opportunity cost of not per session should not exceed nine people, and a
undertaking other activities. Although the large leader should be nominated to facilitate sessions.
number of variables to be considered over a ten-year Initially the team should be put into the right frame
rolling horizon make it very difficult, wherever of mind by undertaking some trivial task that
possible, these costs should be compared with the encourages them to think in a less constrained
actual and potential whole-life financial returns from manner, challenging conventional boundaries. For
the ideas generated through the framework. example, they might be asked to spend a few
minutes thinking of possible uses of a safety pin.
Evaluations should also highlight where risks of
failure might be minimized in future, and reveal The guidelines should then be introduced (for
where financial potential has been over- or example those relating to the width of the highway).
under-estimated. Steps could then be taken to Ideas should be encouraged and early in the process
improve forecasts and performance. it is important to obtain a large number of ideas
without any form of appraisal. It is normal at the
Over a longer period, it will also be necessary to
start to have ªold and obviousº ideas which can later
evaluate the contribution and impact of innovation
be discarded.
on overall corporate performance. Agreed measures
might be used but most are likely to be financial, When ideas appear to dry up, the session should be
particularly those based on the cost of the ended and those involved allowed to move on to
innovation programme, including the opportunity other activities. This period of ªgestationº is a
cost and a factor covering the cost of capital. necessary part of brainstorming and, when the
brainstorming session is reconvened, the team is
All such evaluations will be assisted by the use of
likely to have new and more useful ideas.
checklists and innovation audit questionnaires, such
as the examples in annexes A and B. The leader of these sessions should ensure that
criticism of ideas and people are forbidden.
It is also worthwhile compiling case studies of good
Contributions from reticent members should be
practice to enhance the ªcorporate memoryº and
drawn out, and no individual should be allowed to
help improve the development of subsequent
dominate proceedings, especially more senior
products.
members, as the quality of ideas is not necessarily
6.14 Maintain flexibility to change course related to seniority. Furthermore, when an idea is
If it is found that an organization has been moving in put forward, it should be treated as a ªgroup ideaº;
the wrong direction, or discovers a better this prevents members comparing their ideas with
opportunity, then the direction needs to be changed, ideas proposed subsequently.
and quickly. There might also be instances when As the period under consideration spans many years,
new opportunities arise which offer more attractive it is important to have an effective method for
prospects than those projects sanctioned in the archiving and retrieving ideas. The system of
current programme. These new opportunities should retrieval should be configured and used so as to
be given serious consideration. prevent the brainstorming sessions inadvertently
The framework proposed is flexible and adaptable; going over ground covered in earlier sessions.
new circumstances should be assessed and remedial These brainstorming sessions should be purposeful
action taken quickly and easily implemented. The with clear written objectives communicated to all
organization should record and archive the mistakes participants. However, care should be taken to avoid
to prevent them recurring. rushing them as the products that result will usually
be required when the products after those currently
offered go into decline. Therefore, there will be
sufficient time to consider and appraise fully all
ideas generated, even to revisit them over a period
of months or years.

28  BSI 11-1999
 BS 7000-1:1999

7.2 Scenario planning experiences, ideally through role-playing featuring all

One of the tools in the second stage of brainstorming relevant parties, should help distil how and at what
is the envisioning of the future. Often people points innovation and design can facilitate and
speculate that more frequent and increasingly radical enhance those experiences. The way target
changes will occur in the future than actually audiences (particularly key customers) react to
transpires. Apart from certain areas of rapid proposed new product concepts, features and
development, change tends to be slow and therefore improvements will provide insights into how they
relatively easy to predict. value those propositions as well as their perceived
priorities.
Whilst envisioning the future, the focus can be
improvements to lifestyles, the effects on the Analyses of ªexperience cyclesº provide powerful
environment, forthcoming legislation, or radical triggers for developing technologies that contribute
transformations in work methods. to successful product design, manufacture and
delivery. The dialogue that is established and
The future presents multiple possibilities, some
nurtured between the innovation team, users,
beneficial, some threatening. In order to cope with
suppliers, distributors and other specialists gets to
these eventualities, we need to ªmapº them out and
the root of current perceptions, thinking and
formulate strategies to avoid or deal with them. That
practices. It also encourages exploration of the ideal
planning process and much of the subsequent
future: the ªif onlyº world. Future products that
actions are fundamentally design processes: we
match needs and aspirations closely, and deliver
design desired futures then design the means to
favourable customer use and ownership experiences,
bring them about.
are more likely to come from such analyses than
Visualization is a key tool for ªpreviewingº these from mere ªtechnology pushº strategies. Moreover,
futures, typically through scenarios and concepts for the creation process should be more involving and
specific products, services and environments. These inspiring because it is more human, fun and
enable people to gain a more tangible hold on ªwhat rewarding. Experiences represented through
might beº and this facilitates implementation. The visualization provide the most vivid ªlivingº briefs to
facility to ªcreate the future todayº is a characteristic work to. The design and innovation processes are
of innovation leaders. effectively ªdialogues with the futureº.
Care should be taken not to limit perceptions of
7.5 Visualization
satisfaction of needs to current use in defined
circumstances. Though ideas are communicated predominantly with
words and numbers, there is increasing evidence that
7.3 Backcasting many people ªthink in picturesº. Moreover,
Several ideas will be at the very earliest stage of observation is a major factor in learning and
consideration, perhaps in the form of scenarios. understanding.
Having determined a future vision for the Images in the mind change as ideas take shape,
organization as a desirable long-term destination, it develop and become embedded. They ªplayº in the
is important to speculate on the journey from the mind almost always accompanied by a ªsoundtrackº
ideal future back to the present. This can be done by as individuals ªconverseº with themselves and other
mapping out key events back to the present (a parties connected with the ideas in hand. Ideas come
blueprint) indicating the stages or milestones over to life, are tested and personalized through a
time. progression of animated images. As such, there are
7.4 Customer±product experience cycles considerable benefits to be gained from
underpinning communication with imagery, not least
Customer satisfaction derives from the range of when it is critical to ªget on the same wavelengthº
experiences from first awareness through to final quickly and build a binding spirit between diverse
disposal. Commercial success, for industrial and people who need to work together effectively.
consumer products, is achieved by managing those
experiences: each phase has considerable potential Visualization and envisioning are about ªseeing in the
to delight or antagonize customers and actual users. mind's eyeº, externalizing and sharing those images.
Understanding those experiences forms the soundest The design activity provides to these endeavours
foundation to designing satisfying products so that with ªtangibilityº and ªfinishing powerº.
valued ªhighsº can be planned in and debilitating This added dimension is generally taken to be
ªlowsº eliminated as far as possible. non-threatening, largely because most people
All such ªcustomer±product experience cyclesº have consider themselves to be ªvisually literateº through
common phases such as awareness, interest and widespread familiarity with cinema, television,
information gathering, purchase, first use, on-going computer games and so on. This view holds even
use and disposal. Each phase can be analysed in though relatively few have developed skills in
detail to map out the likely sequences of key events. drawing or other techniques of visual representation.
Rehearsing the acquisition, ownership and use

 BSI 11-1999 29
BS 7000-1:1999

When speed and radical change are sought, 7.7 Evaluating and protecting intellectual
harnessing the ªvisual dimensionº is critical to property
success, not least because its ªinclusivenessº Innovation over the long term is likely to generate
encourages collaboration and facilitates rapid many ideas that should be protected. Team members
acquisition and application of new knowledge and need to safeguard the confidentiality of discussions
skills. that could prove problematic when outsiders are
Special care should be taken to ensure that content involved. Sometimes secrecy can be maintained
and presentation are mutually reinforcing: the through confidentiality agreements with staff and
credibility of communication should not be third parties.
compromised by poor visual aids that negate its Often, ideas might not be developed sufficiently for a
content and impact. The effective use of design can patent application, otherwise the product could be
help present innovative messages in fresh ways that developed immediately. New aspects of technology
provide immediate demonstrations of how things already developed could be patented for use in
might be done differently, to higher standards. future products. However, the cost of maintaining a
The benefits to be gained from using visualization patent and the loss in life of the patent whilst
are that it: waiting for the rest of the product to be developed
a) facilitates rapid comprehension and faster might make it advisable to delay a patent application
adoption of new knowledge and skills; whilst keeping the idea secure within the
organization.
b) opens eyes to fresh perspectives and
encourages multiple viewpoints; Conversely, if it were suspected that a competitor
were undertaking similar development work, it
c) illustrates and helps devise enlightened ways to
would be worth patenting aspects of a likely future
apply new ideas and technical advances;
product. This might help dissuade competitors from
d) helps in the evaluation of user appeal through stopping a company from benefiting from work in
value analyses and preferences ranking; that area. Monitoring R&D among competitors
e) enables user comprehension to be tested as should provide valuable insights into how they might
well as users' sophistication in the use of products upgrade products and avenues they consider to be
and services; important in the forward development of their
f) provides checks on technical feasibility and products.
isolates potential conflicts between marketing and Intellectual property can also be exploited through
performance specifications; sale or licensing to other organizations.
g) provides guidance and exemplars for sales and 7.8 World Wide Web
other service/support personnel;
The World Wide Web (Internet) is a rich source of
h) establishes common experiences and information. All organizations interested in
understanding among development team members, introducing ªnewnessº into their products should
either created together or subsequently shared; search through it for relevant ideas. However, staff
i) isolates inconsistencies of approach and might require guidance on ªsurfing the Netº
gaps/disjoints in experiences during projected life effectively, otherwise considerable time might be
cycles; wasted.
j) provides messages that are more vivid and real Search routines might be set up and ªfavourite sitesº
to target audiences, yet allow flexibility and specified to be visited regularly or whenever
personalization, hence greater potential for further updated. A procedure should be instituted whereby
development. relevant information is disseminated to all who might
make use of it.
7.6 Risk assessment
Ideas should be judged initially against the 7.9 Intranets and websites
parameters specified in the innovation highway; Another important step for organizations is to
those that do not fit should be eliminated. establish intranets and websites to encourage staff
Ideas might be judged for potential returns against (and certain outsiders) to share information and
the probabilities and risks of conceiving successful exchange ideas, particularly with colleagues whom
products. Risk analysis goes beyond potential they would not normally meet or consult.
profitability and should include consideration of
whole-life costs, time-scales, safety and the likely
effect on the environment (see Figure 11).

30  BSI 11-1999
 BS 7000-1:1999

NOTE Check boxes with an 3 at the appropriate point on the scale.

Figure 11 Ð Some factors in assessing risks of undertaking innovative projects

 BSI 11-1999 31
BS 7000-1:1999

The principal reasons for setting up intranets and j) publicize innovation success stories from across
websites are to: the organization and acknowledge individuals
a) establish a focal contact point for staff and involved;
third parties, especially when there is an open k) document case studies of ªgood practiceº and
invitation to make inputs (such as ideas for achievements;
improvement, lessons learnt, interesting l) provide a forum for a competitive ªinternal
information gleaned from elsewhere, issues that marketº such as a ªBest five long-term ideas of the
ought to be investigated and opportunities for monthº competition;
collaboration);
m) advise on best procedures for use of Internet
b) help communicate the innovation mission (guidance on key sources of information and how
statement, the future vision of the organization to carry out searches).
and the parameters of the innovation highway;
Once they are set up, it is important to update
c) set out the protocol for sharing, divulging and websites and intranets regularly to feature new
using information (extent, safeguards, guidelines); information that will attract staff and encourage
d) provide direct access to useful information, and constant use. ªHot linksº to other appropriate sites
speed applications by presenting it in a ªready to of further interest will facilitate more fruitful
useº format; searches and networking. The aim should be to
e) list current and emerging core technologies and make these the first ªport of callº for staff seeking
business areas of particular interest; information or help. Moreover, procedures should be
introduced to ensure prompt responses to queries
f) list ªleading edge players/best practicesº in all
and suggestions ªpostedº on sites. It is essential for
technologies/business processes of interest;
intranets to be secure against access by those who
g) list on-going projects and those involved; are not authorized, while encouraging and
h) list skills and experience within the maintaining ease of access of those who do have
organization (including those individuals to be that authority.
consulted on groundwork and on gaining support
for potential proposals);
i) provide guidance on refining ideas, formulation
and submission of project proposals;

32  BSI 11-1999
 BS 7000-1:1999

Annex A (informative) entirely made up of people's time. Such a modest

figure is unlikely to affect share value and, as a result,
Innovation self-assessment the organization should not use a short-termist attitude
questionnaire 1 Ð The organization among financial analysts as a reason for holding back
from investing in planning for the long term.
A.1 What types of innovation do you have in
your organization? Allowing 5 % to 10 % of specified employees' time for
this activity is a useful guideline to work to.
Innovative changes can be introduced throughout the
value chain. For example, within the product, during A.8 Is planning 3-Gen products a specifically
manufacture, in distribution, in marketing or by defined activity within your organization?
supporting the product in the market. The fastest areas Planning for the long term is different from short-term
for innovation (and, in many ways, the easiest and new product development. Time should be allocated
most profitable) relate to the services that complement for this activity and should also be written into the job
products. specifications of particular employees.
A.2 Does your organization have a procedure A.9 Does an innovative attitude permeate your
for developing 3-Gen products and services? organization?
A.3 Is this procedure documented? A culture that nurtures innovation should permeate an
It has been shown that the organizations most effective organization and not just be confined to the new
at long-term innovation follow a documented product development department. Ideas for future
procedure. Most enterprises have introduced aspects of products and services could be generated in all parts
such a procedure but have still to write them down. of the organization. These should be encouraged, just
Mapping out procedures in this way will reveal gaps in as failure should be tolerated. See clause 5.
practice and methodology; these can then be addressed A.10 How is this innovation attitude
using tools, techniques and methods outlined in this communicated internally and externally?
standard. Clause 6 describes such a procedure.
Having developed an attitude that encourages
A.4 If the process is documented, how widely is innovation throughout the organization, this should
it distributed? also be communicated outside the organization, as part
So that all team members are made aware of the of its corporate identity.
approved process for introducing innovations, and A.11 Does your organization have a skills audit?
work to the same procedures, full copies should be
An analysis of the skills, techniques and practices
issued to all relevant members. For specific
within your organization can help to identify the types
innovations, it is advisable to show which specific part
of products and services that should be focused on in
relates to the individuals involved.
the future. These will help to determine the width of
A.5 How does your enterprise use its long-term the innovation highway. When considering specific
vision of the future to influence and inform products, it will also indicate areas where skills
present activities? shortages exist, which might be filled through alliances.
New products should form a seamless continuum into See clauses 4.3, 6.4 and 6.7.
the future. It is possible to identify the products and A.12 Is your organization involved in any
services at specific milestones along the length of the alliances?
innovation highway. Generally, life cycles of existing
It is unlikely that your organization will have all the
products can be increased through incremental
skills or experience necessary to complete its
changes while the time-to-market is being reduced.
long-term development programme. Mutually beneficial
This should make it possible to achieve this seamless
alliances might be formed to supplement skill
continuum.
shortages. These alliances could be made with other
A.6 What is your organization's budget for new enterprises within your own group or outside
product development? organizations and could provide benefits throughout
This depends on the type of market you are in and will the value chain; from research, through product
typically be between 3 % and 20 % of annual turnover. development and marketing, to servicing and even
disposal. See 5.9.
A.7 How much of this budget is set aside for
innovating 3-Gen products? A.13 What are your organization's weaknesses
in long-term product conceptualization and
This also depends on the product and the type of development?
market you are in but, typically, this will be 5 % of the
budget set aside for new product development. As this Weaknesses can be addressed only if they have first
represents between 0.15 % and 1 % of annual turnover, been identified. With each weakness consider how
it is a small investment especially as it is almost these shortcomings can be remedied. See 5.11, 5.12
and 6.13.

 BSI 11-1999 33
BS 7000-1:1999

A.14 What mechanism does your organization B.3 What kinds of ªnewnessº are incorporated
have to react fast to threats or surprises from in this product?
the competition? Figure 2 shows the type of newness that might exist in
Even though plans might be in place for your organization relating to this type of product.
developing 3-Gen products, competitors, often those Normally, the further down the spectrum the proposed
not currently within your market, can occasionally product can be related, the lower is the likely risk
appear with a product or service that threatens your associated with this product.
share of the market. As part of your organizational
procedures there should be a mechanism for dealing B.4 Who is the long-term product champion for
with such emergencies. If the process for this new product?
developing 3-Gen products is effective, such threats are Ensure someone is assigned formally to drive the
less likely to come as surprises. development so as to ensure it is given the greatest
chance of success. People who think strategically tend
A.15 How does your organization protect its to make the most appropriate champions of 3-Gen
intellectual property? products. See 6.6.
This is not as easy as it would first appear. Patents are
important to the development of 3-Gen products, but B.5 Apart from the product champion, who else
there is a downside to this: applications might not will be involved in this 3-Gen product
succeed, or competitors might copy them in countries conceptualization and development?
where protection is not secured, once the substance of It is necessary to identify the majority of the team
innovations is revealed. Care should also be taken to early in the process. They will be selected using a
protect intellectual property when staff leave. See 5.7 skills audit. Any shortages in available skills might be
and 7.7. made up through alliances, once the deficiencies have
been identified. See 6.7 and 6.7.1.
A.16 How does your organization learn from
failures? B.6 What aspects of this 3-Gen product do you
There needs to be a system of evaluation both for believe cannot be planned ahead?
products and the processes used in their development. Perhaps, surprisingly, almost all aspects of 3-Gen
If measures are put on these it will be possible to products can be planned a long way into the future. In
identify failures and it should then be possible to avoid practice, it tends to be detailed specifications and the
such pitfalls in future. See 5.11, 5.12 and 6.13. aesthetics which cannot. Most other aspects can.
B.7 In planning this particular product, which
Annex B (informative) of the following will you use?
a) Brainstorming (6.5, 6.5.1 and 6.5.2).
Innovation self-assessment
b) Backcasting (clause 7).
questionnaire 2 Ð Products and services
NOTE This questionnaire is to be used for the development of
c) Scenario planning (7.2).
specific 3-Gen products or services. d) Mapping out future technology (6.9.1).
B.1 What is the length of the innovation e) Mapping out future markets (6.9.3).
highway for this particular product? f) Assessing and filtering new ideas (6.10).
This should represent three generations of the product g) Analyses of customer±product experience
(see 6.5.1). cycle (7.4); rehearsals of experience management.
B.2 What is the width of the innovation h) Visualization.
highway?
This determines what the organization will allow
including aspects of finance, time and market(s)
(see 6.5.2).

34  BSI 11-1999
 BS 7000-1:1999

Bibliography

NOTE Of all the publications listed in this Bibliography, only BS EN ISO 9001 is referred to informatively in the body of the text.

Standards publications
BS 4335, Vocabulary of terms used in project management.1)
BS 6079-3, Project management Ð Part 3: Management of business related project risks.2)
BS 7373:1998, Guide to the preparation of specifications.
BS EN ISO 9001:1994, Quality systems Ð Model for quality assurance in design, development, production,
installation and servicing.
BS EN ISO 14001:1997, Environmental management systems Ð Specification with guidance for use.
BS EN ISO 14004:1997, Environmental management systems Ð General guidelines on principles, systems and
supporting techniques.
BS EN ISO 14040:1997, Environmental management Ð Life cycle assessment Ð Principles and framework.
EUROPEAN COMMUNITIES. Council regulation No. 1836/93. Eco-management and audit scheme.
Luxembourg: Office for Official Publications of the European Communities.
ISO/IEC DIS 12207-1, Information technology/software Ð Part 1: Software life-cycle process.

Other publications
Strategic management and planning

CHATTERJI, D. Accessing external sources of technology. Research-Technology Management, 1996,

March±April.
HIRSHHORN, L., and T. GILMORE. The new boundaries of the ªboundary-lessº company. Harvard Business
Review, 1992, May±June.
HOUSTON, W. Riding the business cycle. Boston: Little, Brown, 1996.
MacMILLAN, I.C., and R.G. McGRATH. Discover your products' hidden potential. Harvard Business
Review, 1995, May±June.
MINTZBERG, H. The rise and fall of strategic planning. Upper Saddle River: Prentice Hall, 1994.
NONAKA, I. The knowledge-creating company. Harvard Business Review, 1991, November±December.
PETER, E. Web weaving, intranet and extranet and strategic alliances. Woburn: Butterworth±Heineman, 1998.
PORTER, M.E. Competitive Advantage. New York: The Free Press, 1985.
SENGE, P.M. The fifth discipline: The art and practice of the learning organization.
New York: Currency/Doubleday, 1990.
STACEY, R. Strategic management and organizational dynamics. London: Pitman, 1996.
TOPALIAN, A. Developing a corporate approach to design management. In: M. OAKLEY, ed.
Design management: A handbook of issues and methods. Oxford: Blackwell, 1990.
TOPALIAN, A. Design leadership in business: The role of non-executive directors and corporate design
consultants. Journal of General Management, 1990, 16(2).
TOPALIAN, A. Design in strategic planning. In: P. McGRORY, ed. The challenge of complexity.
Helsinki: University of Art and Design, 1997.
WHEELWRIGHT, S., and K. CLARK. Revolutionizing product development. New York: The Free Press, 1992.

1) This standard will be revised and renumbered BS 6079-2.

2) In course of preparation.

 BSI 11-1999 35
BS 7000-1:1999

Long-range planning, envisioning and visualizing the future

AINSWORTH-LAND, V. Imaging and creativity: An integrating perspective. In: J. HENRY, ed.

Creative management. London: Sage, 1991.
BURNSIDE, R.M. Visioning: Building pictures of the future. In: J. HENRY and D. WALKER, eds.
Managing innovation. London: Sage, 1991.
EDGE, G. Thinking about the technology future. R&D Management, 1995, 25(2).
GIBSON R., ed. Rethinking the future. London: Nicholas Brearley, 1997.
GRADEL T.E. Streamlined life-cycle auditing. Upper Saddle River: Prentice Hall, 1998.
HAMEL, G., and P.K. PRAHALAD. Competing for the future. Boston: HBS Press, 1994.
HOLLINS, B., and G. HOLLINS. Over the horizon. Chichester: Wiley, 1999.
MERCER, D. Future revolutions: A comprehensive guide to life and work in the next millennium.
Buckingham, Open University Press, 1998.
NORDIC COUNCIL. Product life cycle auditing principles and methodology. Copenhagen:
The Nordic Council, 1992.
RINGLAND, G. Scenario planning: Managing for the future. New York: Wiley, 1998.
SCHWARTZ, P. The art of the long view. New York: Doubleday, 1998.
SLAUGHTER, R. The foresight principle: Cultural recovery in the 21st century. London: Adamantine, 1995.

Creativity and innovation

BUZAN, T., and B. BUZAN. The mind map book. London: BBC, 1993.
CHESBOROUGH, H.W., and D.J. TEECE. When is virtual virtuous? Organizing for innovation. Harvard
Business Review, 1996, January±February.
McCASKEY, M.B. Mapping: Creating, maintaining and relinquishing conceptual frameworks. In: J. Henry ed.
Creative management. London: Sage, 1991.
OSBORNE, A. Applied imagination. New York: Scribner, 1993.
SUTTON, R.I., and A. HARGADON. Brainstorming groups in context: Effectiveness in a product design firm.
Administrative Science Quarterly, 1996, 41, December.

36  BSI 11-1999
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