From Innovation to Incubation. Business Success Through Grassroots Innovation

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From Innovation to IncubationBusiness Success Through Grassroots Innovation

Prof.dr. Stefan Stremersch

Erasmus University Rotterdam IESE Business SchoolRotterdam, the Netherlands Barcelona, Spain

© Property of Stefan Stremersch ©

“The rules have changed. In a single generation, revolutions in technology have transformed the way we live, work and do business. (…) We need to out-innovate, out-educate, and out-build the rest of the world.”

How to Deal with Constant Change?

White House Director of SpeechwritingThis quote is from Obama’s State of the Union Address

(January 2011)

Jon Favreau


Building a Culture of Innovation

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The greatest challenge to deliver business results is

creating a climate for innovation within the organization


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“Innovation distinguishes between a leader and a follower”

“The real source of wealth and capital in this new era is not material things… it is the human mind, the human spirit, the human imagination, and our faith in the future”

How to Deal with Constant Change?

Steve Jobs

Steve Forbes© Property of Stefan Stremersch ©

You Need Three Things to Initiate Innovation

5© Property of Stefan Stremersch ©

Identify unmet needs of your customers.

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1 2 3© Property of Stefan Stremersch ©

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1 2 3

Find a great solution for such customer needs.


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1 2 3

Define a strategy to make profit$ from your great $olution.


But How to Unleash Such Creativity and Out-Innovate Competition?


Strategy 1: The Visionary Leader

1. Strong and visionary leadership

2. Ferocious planning: defining all details on execution

3. Capacity to sense customer needs


Risks of Visionary Leader Strategy

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Lack of sustainability of the “Visionary Leader” model?


Strategy 2: The Lab Elite

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Accomplishments Bell Labs: Transistor, silicon solar cell, first communication satellites, first

cellular telephone systems …


Risks of Lab Elite Strategy: The Rise and Fall of Corporate Labs


Risks of Lab Elite Strategy: Intolerance for Contrarian Spirits

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(frog in the kettle)

Management reaction: “That’s cute but doesn’t use films, so don’t tell anyone about it.”

X

Steve Sasson was the first to propose a digital camera


http://www.youtube.com/watch?v=wfnpVRiiwnM



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The Lab Elite

The Visionary Leader

Innovation is not the job of the happy few, but the responsibility of MANY

Grassroots Innovation – emerges from the grassroots. It’s the most natural source of change.


Why is Grassroots Innovation Successful?


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The Journey of the HMS Beagle


Charles Darwin (1809-1882)

In the Galapagos islands Darwin found that genetic variation allowed species to adapt to local conditions and improve survival.

Different species of finches in the Galapagos, developed beaks adapted to the particular type of food they needed to eat.


Think of Your Business as a Finch!

Experiment and Adapt!19


Principles

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Experiment(Innovation)

Incubate(Survival)

Learn(Adaptation

)


Experiment (Innovation

)

Incubate (Survival)

Learn (Adaptation

)

Grassroots Innovation and Experimentation

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Principle 1: Embrace grassroots experiments as an organic source of innovation.



)

Incubate (Survival)

Learn (Adaptation

)

Survival and Incubation

Principle 2: Incubation allows you to experiment on a scale where failure is survivable.

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Principle 3: Gather market feedback, learn and use such insights to adapt and transform your organization.

Learn, Adapt and Transform

Principle 2: Incubation allows you to experiment on a scale where failure is survivable.

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)

Incubate (Survival)

Learn(Adaptation

)


Organic Innovation

Changing Mindset

People Development

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Adapt and Transform: Three Key Benefits of Grassroots Innovation


http://www.nanotechproject.org/process/assets/images/7094/originals/istock_000004713771xsmall.jpg

Organic Innovation

Changing Mindset

People Development

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Adapt and Transform: Boosting Organic Innovation



Successful Organic Innovation at 3M


Organic Innovation

Changing Mindset

People Development

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Adapt and Transform: Changing Mindset



Changing Mindset: Grassroots vs. Top-Down Philosophies

Top-

Dow

nGr

assr

oots Management Inspires

and Engages Employees, Bringing out their Energy and Helping Them Grow

Management Inspires Participatory and

Experimentation Values

Management Challenges Employees to Innovate and Take

Responsibility

Management Supports Employees By Allocating the

Resources they Need to Implement the

Company’s Strategy

Management Defines a Clear, Deliberate and

Bold Strategy

Management Challenges Employees

to Implement and Execute the Company’s

Strategy

Vision Challenge Support


Organic Innovation

Changing Mindset

People Development

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Adapt and Transform: Developing People



Skill DevelopmentUnique Learning and

Coaching OpportunitiesMotivate Staff to

Raise Their Own Baby

Your Staff Helps You Define the Future of Your Firm

Promote Networkingand Relationship Building

Reward and Support YourMost Innovative Employees

Grassroots Innovation Programs: Developing Your Employees


Grassroots Innovation: Create Passionate New Leaders


How to Implement Grassroots Innovation?


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THE BEST WAY TO GET STARTED IS TO STOP TALKING AND BEGIN DOING!


Grassroots Innovation: A Four-Step Process of Business Experimentation

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1. First, inspire your employees to share their innovative ideas.

2. Help employees form winning teams to experiment with their ideas.

3. Identify high-potential teams and build a business case to support their experiments.

4. Support and launch the most promising ideas.



Real-World Example of a Grassroots Innovation Process


Innovation is a journey…

Prof. Dr. Stefan Stremersch

Why not follow me on Twitter? Follow @StStremersch

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From Innovation to Incubation. Business Success Through Grassroots Innovation

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