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WelcomeTo Leading For Innovation614 MSOP Scott Bohlin Phase 6.1

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Hello and Welcome To Leading For Innovation1

Formal StrategyFor formal strategy to work we need Strategic Planning- which is a systematic process of envisioning a desired future, and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them.

Formal StrategyFor formal strategy to work we need Strategic Planning- which is a systematic process of envisioning a desired future, and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them.

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InnovationThe Business Dictionary defines Innovation as-The process of translating an idea or invention into a good or service that creates value or for which customers will pay. However, to truly be an innovation, an idea must be repeatable at economical cost and must satisfy a specific need. Harvey Schachter describes three types of innovation in his writings- Core innovation: This covers incremental changes to existing products and incremental inroads in new markets.Adjacent innovation: This involves leveraging something the company does well in a new market space.Transformational innovation: This focuses on creating new offerings to serve new markets.

The Business Dictionary defines Innovation as-The process of translating an idea or invention into a good or service that creates value or for which customers will pay. However, to truly be an innovation, an idea must be repeatable at economical cost and must satisfy a specific need.

Harvey Schachter describes three types of innovation in his writings-

Core innovation: This covers incremental changes to existing products and incremental inroads in new markets.

Adjacent innovation: This involves leveraging something the company does well in a new market space.

Transformational innovation: This focuses on creating new offerings to serve new markets.

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Here is another look at the three innovations. Take a moment before moving on.

Here is another look at the three innovations. Take a moment before moving on.4

Innovation cannot do it aloneHow Innovation is brought to reality, is with tools such as the value chain.Value Chains are defined in two ways-Within a company they describe the various value-added stages from purchasing materials to distributing, selling, and servicing the final product. They also delineate the value-added stages from raw material to end-user as a product is manufactured and distributed, with each stage representing an industry.These are also known as the internal and external value chains.

How Innovation is brought to reality, is with tools such as the value chain.

Value Chains are defined in two ways-

1. Within a company they describe the various value-added stages from purchasing materials to distributing, selling, and servicing the final product. 2. They also delineate the value-added stages from raw material to end-user as a product is manufactured and distributed, with each stage representing an industry.

These are also known as the internal and external value chains.

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Organizational TensionFor an organization to grow and mature there must be tension and that tension must be generated by conflict--the conflict of honest men and women seeking to improve the organization as a whole. Understand- simple change and interaction create tension because it is a new interaction to our environment. Try to make changes productive.A productive tension example would be something like a change to a production line, to ease that tension on the workers and make it a positive change try using their collective input on the new design.

For an organization to grow and mature there must be tension and that tension must be generated by conflict--the conflict of honest men and women seeking to improve the organization as a whole.

Understand- simple change and interaction create tension because it is a new interaction to our environment. Try to make changes productive.

A productive tension example would be something like a change to a production line, to ease that tension on the workers and make it a positive change try using their collective input on the new design.

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Stress Reduction Technique

Strategic ExperimentsThe next important part to successful Innovation is the Strategic Experiment.Historically, planning and control systems were designed to implement a proven strategy by ensuring accountability under the presumption of reliable predictability. Planning systems for strategic experiments, by contrast, should be designed to explore future strategies by supporting learning, given the unpleasant reality of reliable unpredictability. In other words an organization must be willing to invest time and resources without its usual safety barriers or assurances.In order to get access to the technology needed for certain R&D a company must be willing to make lasting partnerships so they do not have to shoulder the financial weight of everything needed for some experiments.

The next important part to successful Innovation is the Strategic Experiment.

Historically, planning and control systems were designed to implement a proven strategy by ensuring accountability under the presumption of reliable predictability. Planning systems for strategic experiments, by contrast, should be designed to explore future strategies by supporting learning, given the unpleasant reality of reliable unpredictability. In other words an organization must be willing to invest time and resources without its usual safety barriers or assurances.

In order to get access to the technology needed for certain R&D a company must be willing to make lasting partnerships so they do not have to shoulder the financial weight of everything needed for some experiments.

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Innovation and Organizational GrowthSuccessful results feed growth within an organization. Company growth is based on three dimensions-Dimension 1- Existing market growth- once established a firm can expand by increasing existing market share through price and other sources of competitive advantage.Dimension 2- Customer driven market growth- A business grows by helping to create new customers for existing offerings.Dimension 3- Innovation driven products and services growth- This occurs when companies create new markets by offering innovative products, services, or business models.How this growth happens is in the form of organizational development.

Successful results feed growth within an organization. Company growth is based on three dimensions-

Dimension 1- Existing market growth- once established a firm can expand by increasing existing market share through price and other sources of competitive advantage.

Dimension 2- Customer driven market growth- A business grows by helping to create new customers for existing offerings.

Dimension 3- Innovation driven products and services growth- This occurs when companies create new markets by offering innovative products, services, or business models.

How this growth happens is in the form of organizational development. 9

In ClosingThe long-term health of organizations has always depended, and will always depend, on innovation. Competitors relentlessly copy great products, creative services and best practices. The only way to avoid becoming old is continuously to create the new.

Ideas are not solutions; they are the raw material of solutions. Arthur VanGundy

Thank you for your time

In ClosingThe long-term health of organizations has always depended, and will always depend, on innovation. Competitors relentlessly copy great products, creative services and best practices. The only way to avoid becoming old is continuously to create the new.

Ideas are not solutions; they are the raw material of solutions. Arthur VanGundy

Thank you for your time

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ReferencesCompetitive Advantage, Porter, Michael E., 1985, Ch. 1, pp 11-15. The Free Press. New York.Strategic Management: a methodological approach, Rowe, Mason, Dickel, Mann, Mockler. 4th Edition, 1994. Addison-Wesley. Reading Mass.Strategy: the motivation for innovation, Ian Stewart Technology Innovation Centre, University of Central England, UK and Peter Fenn MACE, University of Manchester, Manchester, UKUsing value-chain analysis to discover customers strategic needs, David W. Crain and Stan AbrahamOrganizational Learning and Strategic Renewal , Crossan, Mary M ; Berdrow, Iris . Strategic Management Journal 24.11 (Nov 2003): 1087-1105.Business is sent back to the classroom, By Vijay Govindarajan and Chris Trimble: Financial Times [London (UK)] 08 Oct 2004: 1.Strategic Innovation and the Science of Learning, Vijay Govindarajan and Chris Trimble