Point: Define priority innovation areas to harness employee energy

Story: When it comes to innovation, Harrah’s Entertainment doesn’t play games. The operator of a global chain of 50 casinos is pursuing a theme-focused innovation strategy similar to technology giant Hewlett-Packard and venture capital firm The Foundry Group. The company identified six areas of interest (akin to HP’s 8 themes and Foundry’s 5 themes – see Innovation Investment Strategy). Harrah’s target areas are: enabling technologies (such as wireless and radio frequency identification); enabling platforms (cloud computing, service-oriented architecture, anything-as-a-service); “smart” service (self-service kiosks); interactive CRM; next-generation gaming; and expanded channels to reach customers.

An innovation team of about 10 people from IT, marketing, customer service and gaming evaluate idea submissions from employees. Harrah’s also taps the innovations of vendors and is considering enlisting the public in seeking new innovations in gaming and entertainment. To gather even more feedback, Harrah’s created an “Innovation Portal” where employees can vote for their favorite innovation. Top management (CEO Gary Loveman and VP of Innovation Chris Chang) then decides which ideas ultimately get funded.

Action:

• Identify the areas of top priority to your firm, to help steer energy & momentum in the areas that will provide most value to your firm.
• Use themes to look for the deeper, long-term enablers and platforms rather than shallow short-term gadgets and projects.
• Ask employees for suggestions, feedback or votes on ideas within these areas
• Consider involving vendors, customers and the public as well, to expand the pool of ideas. (This strategy will require thinking through the IP issues.)

For more information on Harrah’s: Network Computing article

Point: Help your customers save water by making better use of your products
Story: The UN designated March 22nd as World Water Day, to draw attention to the need to manage this vital resource. Many companies are examining how to reduce their water usage. Some companies are also looking at their value chain of customers and suppliers, helping their partners reduce water consumption as well. JohnsonDiversey, one of the S.C. Johnson family of companies, is a leading global provider of institutional cleaning and hygiene products. Because it sells cleaning products to large companies, JohnsonDiversey explored how it could help its customers reduce water consumption. For example, breweries use five times as much water to clean their facilities as they do to make their product. JD realized it could help its customers improve their cleaning practices. JD audits water usage at customer plants and then shares best practices from among all customers to reduce water usage and costs. The company also helped food and beverage customers in 21 sites around the world save a billion gallons of water in 2007 through its water management program.

Action:

• In thinking about water conservation efforts, look beyond your company’s borders.
• Examine how your products influence water consumption by customers and consumers
• Create products that enable less water consumption
• Share ideas among your customers to help everyone reduce water usage and costs.

Sources: MIT Crossroads presentation by Antonio Galvao, VP Global Plan and Deliver at JohnsonDiversey and JohnsonDiversey’s Responsible Resource Solutions