Innovation: The Only Sustainable Advantage

Is innovation the only strategy left?

Jim Stikeleather

Crafting organizations that can change as fast as change itself.

2 ServicesConfidential

Sources of profit and growth since the industrial revolution

Supply & Demand Chains

6s Process Improvement Innovation


Innovation is the process that takes new ideas and implements them in a way that creates value by

solving unmet needs.

New ideas + Forward thinking + Feasible + Viable + Valuable

Not a marketing term

Not inventionProducts andservices

Business model

ProcessesmodelOperations

DevelopmentSales & Marketing


With Innovation Plan

Without Innovation Plan Business model and process

Pro

du

cts

& S

erv

ices

New

Nearto

existing

NewNear to existing

Breakthrough Disruptive change

BreakthroughIncrementalsustaining


First you think about the future

IDEATION

INTERNAL RESOURCES

IDEATION

EXTERNAL RESOURCES

DRAFT NEW PRODUCTCONCEPTS

NARROW CONCEPTSUNDERCONSIDERATIONOUTLINE FEATURES/BENEFITS

EXPOSE TOTARGETCUSTOMERS(QUALITATIVE)

KILL

CONTINUE

REFINE

ESTABLISHSUCCESSCRITERIA

KILL

TEST MARKET(NEW PRODUCTINCUBATOR)

EXECUTIVEMANAGEMENTREVIEW(Investment Committee)

POST TEST MARKETEVALUATION

DESIGN, DEVELOP & PILOT(Project Launched)

FORMTEAM

DEFINE THEPROBLEM/OPPORTUNITY

EXPOSE TO TARGETCUSTOMERS FOR VOLUME ASSESSMENT(QUANTITATIVE)

TEST MARKETING PREPARATION

HIGH LEVELREQUIRE-MENTS

DEVELOP BUS CASE/OBTAINAPPROVAL TO PROCEED(Mgt Review)

KILL

CONTINUE

REFINE

FINAL ROLLOUT PLAN FINAL TIMELINE

WARGAMES

EXECUTIVEGROUPREVIEW

TRAINING

KILL

ROLL-OUT

EVALUATIONANDMEASUREMENT

PLAN DEVELOPMENT AND INITIAL TIME LINE(Proj Request/Sizing)

TURN OVERTO PRODUCTMANAGEMENT

How far back depends on feedback received

May require refinement of business case and financials

Some, or all of these stages may not apply to smaller efforts, or those with low execution risk/low capital investment For large projects, or those requiring post-pilot review and approval, these stages will apply (e.g. Investment Committee level projects).

Project Release Management Flow Begins (see next page)

Project Lifecycle

Project Lifecycle

START

Start Project

End Project

Convergent Thinking Divergent ThinkingAnalytic / RationalQuantitative / SequentialConstraint-driven / ObjectiveSpecific details

Creative / IntuitiveQualitative / SubjectivePossibilities / HolisticConceptual abstractions


Then you organize your thoughts

IP, patents

Insight

Strategicplans

Frameworks

Innovation for market challenges

Innovation for customer & delivery challenges

Relative innovation

Value challenges

Foresight

Scenarios

Themes

Signals, trends

Referencearchitectures

Outcomes andmetrics

R&D

Standards, laws

Invest ExecutePlan ofinvestigation

Continualimprovement

Plan of intent

Plan of record


Right People

Common Language

Leadership Role

Modeling

Right Rewards

Incentives

Creatinga cultureof


Talent: Idea innovators;

development drivers; market

drivers

Training

Relative innovation metrics

Customer innovation metrics

Employee metrics

Innovationscorecard

The right people / innovators DNA:• Don’t quite fit the establishment• Outsider• Questioning• Networking• Observing• Experimenting

Common language


Meet people’s needs

Teach/support creativity

Nurture passion

Make the work matter

Provide the time

Renew, reflect, recharge

Actively participa

te

Engaged review

Shape context

Break processe

s

Available

Leadershiprole modeling

Appropriate rewards and incentives


Then you make things happen

(Socialization, Externalization, Combination and Internalization)


A perfect storm is on the horizon…

Enterprise 2.0

Management 2.0

Capitalism 2.0

Economics 2.0

IT 2.0

New game, new playing field, new rules, new players…Means innovation, flexibility, agility, and more…


Welcome to the serendipity economy(or the world wide jam session)

Image courtesy of Yoan Blanc - http://www.flickr.com/photos/greut/502095764/ http://danielwrasmus.com/default.aspx

The process of creation is distinct from value realization

Value realization is displaced in time from the act that initiated the value

The measure of value requires external validation

Value is not fixed and cannot be forecasted

Looking at a network in the present cannot anticipate either its potential for value nor any actual value it may produce

Serendipity may enter at any point in the value web, and it may change the configuration of the value web at any time

http://sixdegrees.hu/last.fm/

http://www.medienkunstnetz.de/exhibitions/serendipity/


Consilience, complexity and emergence…Cynefin Framework

http://en.wikipedia.org/wiki/Cynefin

http://www.youtube.com/watch?v=N7oz366X0-8 http://www.youtube.com/watch?NR=1&v=NugRZGDbPFU&feature=endscreen


Collaboration and co-creation: Sur/PetitionCustomers, staff, partners, suppliers, competitors

Sur/Petition – Moving Beyond Competition

Competition, with its focus on what others are doing, is only the baseline for survival. “Sur/petition” focuses on value creation, going beyond traditional strategic competition to exploit the vast potential of “integrated values” that surround the purchase and use of products and services.

de Bono, Edward, Sur/petition, Harper Collins, London


People: Humanities greatest resourceManagement: Humanities greatest inventionMANAGEMENT SCHOOLS

Beginning Dates

Emphasis

CLASSICAL SCHOOLManaging workers and organizations more efficiently.

Scientific Management 1880s

Administrative Management

1940s

Bureaucratic Management

1920s

BEHAVIORAL SCHOOLUnderstanding human behavior in the organization.

Human Relations 1930s

Behavioral Science 1950s

QUANTITATIVE SCHOOL Increasing quality of managerial decision-making through the application of mathematical and statistical methods.

Management Science 1940s

Operations Management

1940s

Management Information Systems

1950s—1970s

SYSTEMS SCHOOL 1950s Understanding the organization as a system that transforms inputs into outputs while in constant interaction with its' environment.

CONTINGENCY SCHOOL 1960s Applying management principles and processes as dictated by the unique characteristics of each situation.

Create customers,

lower transaction

costs, overcome economic friction

Planning to preparation

Directing to mentoring

Staffing to engaging

Controlling to framing

Division of labor to self selection

Unity of command to emergence of direction

Scalar chain of command to dynamic leadership

Span of control to self organization

Figurehead

Spokesperson

Liaison

Monitor

Leader

Entrepreneur

Resource allocator

Negotiator


The workforce new and old – not what it used to be

http://www.theimaginationage.net/2010/01/smarter-work-data-visualizations.html

http://www.youtube.com/watch?v=u6XAPnuFjJc


http://www.zdnet.com/blog/hinchcliffe/the-state-of-enterprise-20/143

http://www.boostzone.fr/en/the-fractal-nature-of-entreprise-2-0/

The fractal organization and Enterprise 2.0


How do you eat the elephant?????

1 - Ignore the blind wise men

2 – Create an Innovation Group&Create a Systemic Innovation Process

3 – Human Interaction ManagementHuman Augmentation Support

4 – Create a Culture of Innovation

http://executiveinsight.typepad.com/executive_insight/2011/10/realizing-the-value-of-innovation.html

Fractal OODA

5 – Executehttp://www.dreaming5gw.com/2009/08/social_ooda_loop.php

Thank you.

[email protected]

http://www.managementexchange.com/users/jim-stikeleather

Twitter: @stikeyoda

http://www.amazon.com/Business-Innovation-Cloud-Executing-Computing/dp/0929652185

mailto:[email protected]

http://www.managementexchange.com/users/jim-stikeleather





Innovation: The Only Sustainable Advantage

Documents

Transcript of Innovation: The Only Sustainable Advantage