'Innovation is a Game of Chance,' says CEO of Philips Innovation Campus
Added 13th Oct 20101. Your predecessor Alexious Collete defined innovation as the 'art of making money'. What's your definition of innovation?
[Menhardt, Wido] It is the art of making money. It's making money by providing surprisingly clever, useful, simple and valuable solutions to our customers, such that they will pay us money for it. Neither Alexius nor I define innovation as primarily technology related, because the next step in the evolution of our products need not be technological - it could be the channel, the business model, and sometimes even less technology and more simplicity.
2. What are some of the biggest problems with India's healthcare system?
[Menhardt, Wido] Accessibility, availability, and affordability. These are the problems that we at Philips are trying to address. Cost is one aspect, but it's not only about cost - you also need to get the people and the products together.
3. Given this situation - (low broadband penetration, inadequate computer literacy), do you think innovation in technology can improve things?
[Menhardt, Wido] Business model, innovative partnership (public-private, healthcare providers, etc.) can all improve the situation, and so can technology. But we need to think out of the box. One thing is obvious, technology that works in the US or Europe does not necessarily work here. That's challenging and exciting - those that understand this, will win.
4. You've been long associated with the healthcare industry; can you share with some anecdotal examples of some of the innovations you have been a part of?
[Menhardt, Wido] In 1990, computer graphics and animation was limited to the domain of researchers and geeks at universities. I joined ISG Technologies in Canada, and we developed the first interactive 3D workstation for medical imaging. We used large UNIX machines and integrated our own parallel processor technology. Today this can of course be done on an iPhone. A couple of years later, still with ISG Technologies, we developed the first image-guided surgery system - a GPS for surgeons. Again, this is now standard equipment for neurosurgeons. As an example of non-technology innovation, at Philips, we introduced pay-per-click radiology image management systems in the US and Europe. We put our equipment in hospitals without any up-front costs - only when X-rays or Ultrasound images get stored in our systems do we take a small fee per case. The hospital only pays for what they use, and Philips has a dependable revenue stream. Innovative business solutions may well be the key to unlock the Indian market.
5. What are some of the soft skills a CIO needs to cultivate in order to become a good leader?
[Menhardt, Wido] In the software product development world, the most important thing is to recognize that people are people, and that people are different. You have to provide people with the incentives and motivations that correspond to their needs and you have to recognize that each software engineer is an entrepreneur that can take their business elsewhere. Working with software engineers is a partnership to create great solutions; it is not like running a manufacturing plant.
6. How can a CIO keep his team motivated to bring creative, 'out of the box' solutions to business problems?
[Menhardt, Wido] Focus on the customer! As long as we build software to some spec for some abstract user who we never see it will be just a job. Seeing our products come to live in the hands of an actual user - that is exciting, motivating, and challenging. Seeing a radiologist clicking the same "Ok" button 50 times in a day makes you think.... "do we really need the Ok button"?
7. Every innovation is accompanied with an aspect of uncertainty and risk. How does a CIO develop a healthy appetite to tackle risk and failure?
[Menhardt, Wido] The obvious answer: celebrate risk taking, look at failure as a learning opportunity, and promote people that take an entrepreneurial approach.
8. Professor Rishikesha, author of the famous book, " From Jugaad to Systematic Innovation " believes that innovation should be a systemic and calculated approach. Do you agree?
[Menhardt, Wido] I need to read the book, thanks for pointing it to me! I think that what needs to be system and calculated is the environment in which your teams think and work. It's about creating challenges, pushing back, encouraging, and pulling in the right strategic direction. But innovation itself, in my humble opinion, is a game of chance - you need to place smart bets, but it always remains a bet.
9. What does it take to be working at PIC? Is there a matrix for you to ascertain innovation quotient in the talent you would be hiring?
[Menhardt, Wido] We look for people that are smart. Secondarily, we look for people that have already achieved things in their career. And thirdly, we look for people that have superior academic credentials. Smart people are those that are flexible and adaptable, think out-of-the-box, come up with surprising solutions, and yet always keep the customer - and thus reality - in mind.
10. Does information technology enjoy more of a glamorous image at PIC or is it looked at as a granted hygiene-habit to enable the critical R&D work?
[Menhardt, Wido] I think these worlds are merging. The pay-per-click radiology solution mentioned above is a cloud computing infrastructure combined with clinical depth. The latter is typical R&D work, whereas the former is a typical IT challenge - their marriage creates a superior solution. We will see that more and more as SaaS and Cloud solutions become more prevalent, and I feel these kinds of solutions may have the potential to leapfrog more conventional software solutions in India.
11. How do you see the near future for PIC shaping up? Are we going to be witnessing more disruptive technologies surfacing off PIC in the next coming years?
[Menhardt, Wido] I am sure. We are starting to focus more on the Indian market, as a company, and as PIC. This comes all the way from the top at Philips, with more autonomy for the local organization. In order to unlock the Indian market we have to come up with disruptive solutions - some of these are already in the works at PIC, and others will emerge as we are focusing on customer insights in the Indian market.
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