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Innovation in CorporationsInnovation in Corporations

Productive Creativity in a BoxProductive Creativity in a Box

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OutlineOutline

BackgroundBackground Innovation GridInnovation Grid Patterns of Industrial InnovationPatterns of Industrial Innovation Innovation PerspectiveInnovation Perspective Guidelines for Successful Guidelines for Successful

IntrapreneurshipIntrapreneurship

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Productivity/CreativityProductivity/Creativity

Pro

duct

ivit

y

High

Low

CreativityLow High

Maturity

Revitalization

Stagnation Start Up

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Productivity/CreativityProductivity/Creativity

Pro

duct

ivit

y

High

Low

CreativityLow High

Maturity

Revitalization

Stagnation Start Up

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Productivity/CreativityProductivity/Creativity

Pro

duct

ivit

y

High

Low

CreativityLow High

Maturity

Revitalization

Stagnation Start Up

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Productivity/CreativityProductivity/Creativity

Pro

duct

ivit

y

High

Low

CreativityLow High

Maturity

Revitalization

Stagnation Start Up(Start Over)

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Productivity/Creativity & Productivity/Creativity & InnovationInnovation

Productivity

Creativity

Innovation

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Types of InnovationTypes of Innovation

NatureNature ProductProduct ProcessProcess ProcedureProcedure

ClassClass IncrementalIncremental DistinctiveDistinctive BreakthroughBreakthrough

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Nature of InnovationNature of Innovation

ProductProduct Things interacting with thingsThings interacting with things Customer function or formCustomer function or form

ProcessProcess People interacting with thingsPeople interacting with things Way product is developed, produced, distributed, etc.Way product is developed, produced, distributed, etc.

ProcedureProcedure People interacting with peoplePeople interacting with people How products and processes are integrated into the How products and processes are integrated into the

enterpriseenterprise

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Class of InnovationClass of Innovation

Breakthrough

Distinctive

Incremental

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The S-Curve and InnovationThe S-Curve and Innovation

IncrementalTime

Pro

duct

ivity

Incremental

Incremental

Incremental

Distinctive

Distinctive

Breakthrough

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Innovation GridInnovation Grid

Product

Process

Procedure

Incr

emen

tal

Distin

ctive

Break

thro

ugh

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IBM Austin Cultural Change IBM Austin Cultural Change ProgramProgram

Incremental

Distinctive

Breakthrough

Product

Process

Procedure

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Automotive HistoryAutomotive History

Experimenters & HobbyistsExperimenters & Hobbyists Search & LearnSearch & Learn A Car for EveryoneA Car for Everyone Living Room on WheelsLiving Room on Wheels Synthesizing Market DemandsSynthesizing Market Demands Life Style on WheelsLife Style on Wheels

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Automotive History: Automotive History: Experimenters & HobbyistsExperimenters & Hobbyists

Incremental

Distinctive

Breakthrough

Product

Process

Procedure

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Automotive History: Search & Automotive History: Search & LearnLearn

Incremental

Distinctive

Breakthrough

Product

Process

Procedure

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Automotive History: A Car for Automotive History: A Car for EveryoneEveryone

Incremental

Distinctive

Breakthrough

Product

Process

Procedure

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Automotive History: Living Automotive History: Living Room on WheelsRoom on Wheels

Incremental

Distinctive

Breakthrough

Product

Process

Procedure

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Automotive History: Automotive History: Synthesizing Market Synthesizing Market DemandsDemands

Incremental

Distinctive

Breakthrough

Product

Process

Procedure

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Automotive History: Life Style Automotive History: Life Style on Wheelson Wheels

Incremental

Distinctive

Breakthrough

Product

Process

Procedure

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Personal Computer HistoryPersonal Computer History

PC (1970s): Researchers & HobbyistsPC (1970s): Researchers & Hobbyists PC (1981-1986): Market DevelopmentPC (1981-1986): Market Development PC (1987-1993): CloningPC (1987-1993): Cloning PC (1993-1995): Market ExpansionPC (1993-1995): Market Expansion PC (1995-?): Windows on the WorldPC (1995-?): Windows on the World

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PC (1970s): PC (1970s): Researchers & HobbyistsResearchers & Hobbyists

Incremental

Distinctive

Breakthrough

Product

Process

Procedure

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PC (1981 - 1986):PC (1981 - 1986):Market DevelopmentMarket Development

Incremental

Distinctive

Breakthrough

Product

Process

Procedure

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PC (1987 - 1993):PC (1987 - 1993):CloningCloning

Incremental

Distinctive

Breakthrough

Product

Process

Procedure

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PC (1993 - 1995):PC (1993 - 1995):Market ExpansionMarket Expansion

Incremental

Distinctive

Breakthrough

Product

Process

Procedure

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PC (1995 - ?):PC (1995 - ?):Windows on the WorldWindows on the World

Incremental

Distinctive

Breakthrough

Product

Process

Procedure

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Innovation PerspectiveInnovation Perspective

Market

Stakeholders OrganizationCapability

OrganizationCapacity

Strategy

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Innovation PerspectiveInnovation Perspective

Market

Stakeholders OrganizationCapability

OrganizationCapacity

Strategy

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The MarketThe Market

CustomersCompetitors Technologies

Social Political

Economic

Demographic

Scientific

Opportunity Threat

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CustomersCustomers

Present CustomersPresent Customers Identified Potential Identified Potential

CustomersCustomers Unidentified Unidentified

Potential CustomersPotential Customers

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CompetitionCompetition

DirectDirect IndirectIndirect StructuralStructural

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TechnologyTechnology

EmbeddedEmbedded SupportiveSupportive EnablingEnabling

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Driving Forces for ChangeDriving Forces for Change

Social

Political

Economic

Demographic

Scientific

Customer Technological CompetitiveNeeds Capabilities Responses

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Innovation PerspectiveInnovation Perspective

Market

Stakeholders OrganizationCapability

OrganizationCapacity

Strategy

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StakeholdersStakeholders

StockholdersStockholders EmployeesEmployees CustomersCustomers SuppliersSuppliers Strategic PartnersStrategic Partners CommunitiesCommunities

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Innovation PerspectiveInnovation Perspective

Market

Stakeholders OrganizationCapability

OrganizationCapacity

Strategy

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The OrganizationThe Organization ProjectsProjects ResourcesResources

CapitalCapital PeoplePeople Strategic RelationshipsStrategic Relationships Facilities, Equipment and LandFacilities, Equipment and Land KnowledgeKnowledge

CultureCulture

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Innovation PerspectiveInnovation Perspective

Market

Stakeholders OrganizationCapability

OrganizationCapacity

Strategy

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StrategyStrategy Organization DependentOrganization Dependent Provides Competitive DifferentiationProvides Competitive Differentiation Way to Capitalize on the OpportunityWay to Capitalize on the Opportunity How to Minimize or Avoid ThreatsHow to Minimize or Avoid Threats Effectively Utilizes the OrganizationEffectively Utilizes the Organization Satisfies StakeholdersSatisfies Stakeholders

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Strategic PlanStrategic Plan VisionVision MissionMission Goals Goals ValuesValues StrategiesStrategies

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IBM Instruments: StrategyIBM Instruments: Strategy

Incremental

Distinctive

Breakthrough

Product

Process

Procedure

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IBM Instruments: IBM Instruments: Technological CapabilityTechnological Capability

Incremental

Distinctive

Breakthrough

Product

Process

Procedure

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IBM Instruments: Customer IBM Instruments: Customer NeedsNeeds

Incremental

Distinctive

Breakthrough

Product

Process

Procedure

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IBM Instruments: CompetitionIBM Instruments: Competition

Incremental

Distinctive

Breakthrough

Product

Process

Procedure

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IBM Instruments: OpportunityIBM Instruments: Opportunity

Technology

Customers

Competition

Opportunity Product ProcessProcedure

Incr

emen

tal

Dis

tinct

ive

Bre

akth

roug

h

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IBM InstrumentsIBM Instruments

IncrementalDistinctive

Breakthrough

ProductProcess

Procedure

ProductProcess

Procedure

IncrementalDistinctive

Breakthrough

Strategy Opportunity

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Innovation StrategiesInnovation Strategies

Customer Needs

Existing New

Cu

stom

ers

Exi

stin

gN

ew

Staying Put

MarketDevelopment

ProductDevelopment

Diversification

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Innovation StrategiesInnovation Strategies

Customer Needs

Existing New

Cu

stom

ers

Exi

stin

gN

ew

Staying Put

MarketDevelopment

ProductDevelopment

Diversification

BackwardIntegration

ForwardIntegration

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Guidelines for Strategic Guidelines for Strategic InnovationInnovation Define the “window of opportunity’Define the “window of opportunity’ Delineate the marketDelineate the market Delight customersDelight customers Anticipate competitionAnticipate competition Forecast technologyForecast technology Appraise resources & capabilitiesAppraise resources & capabilities Assess stakeholdersAssess stakeholders Incorporate the purpose and culture of the enterpriseIncorporate the purpose and culture of the enterprise

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Glocal Vantage, Inc.Glocal Vantage, Inc.

PO Box 161475PO Box 161475 Austin, TX 78716Austin, TX 78716 (512) 632-6586(512) 632-6586 paul.schumann@glocalvantage.compaul.schumann@glocalvantage.com www.glocalvantage.com http://incollaboration.com Twitter: innovant2003Twitter: innovant2003

Paul SchumannPaul Schumann

Futurist and innovation consultantFuturist and innovation consultant Application of web 2.0 to market & strategic Application of web 2.0 to market & strategic

intelligence systemsintelligence systems Web 2.0 tools & technologiesWeb 2.0 tools & technologies Application of web 2.0 to democratic processesApplication of web 2.0 to democratic processes Broad perspectives on the futureBroad perspectives on the future ServicesServices

Strategic market research & technology forecastingStrategic market research & technology forecasting Intelligence systems consultingIntelligence systems consulting Seminars, webinars & presentationsSeminars, webinars & presentations

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