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  • PA Knowledge Limited 2014 1

    MASTERING DEVELOPMENT WHENTECHNOLOGY LEADS INNOVATIONThriving in a world of disruptive innovation

    Simon MillerApril 2014

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  • PA Knowledge Limited 2014 2

    Thriving in a world of disruptive innovationTechnology used to be an enabler for innovation development Ensure alignment between technologies and business aimsEmbrace failure as the route to successSecure portfolio sustainability

    Agenda

  • PA Knowledge Limited 2014 3

    Thriving in a world of disruptive innovation

    In 1993 after 5,127 prototypes and 15 years of frustration and perseverance Dyson launched the first bagless vacuum cleaner. Dyson recently set out to quadruple its UK engineering force by 2020.

    Apple launched the iPOD in 2001 since then: Classic 6 generations ~ 24m mean Mini/Nano 9 generations ~ 13m mean Shuflle 4 generations Touch 5 generationsApple launched the iPhone in 2007: 7th generation launched in 2013 ~ 12m meanThe first iPad was released in 2010: 5th generation iPad Air & 2nd generation iPad

    mini launched in 2013 ~ 10m mean

    In 1993

    Thriving in a world of disruptive innovation...

    Many organisations aspire to use disruptive innovation to gain competitive edge. Dyson and Apple have demonstrated how successful this strategy can be.

    Even with increasing product complexity innovation life cycles are ever shorter

  • PA Knowledge Limited 2014 4

    Technology used to be an enabler for innovation developmentnow it is often the driver

    Technologies emerge much faster than before

    This brings a set of challenges for organisations not used to being inspired and led by step changes in technology. They have to move quickly to reap new value and maintain or enhance their market position.

    These challenges need to be understood and addressed or they can lead to organisational tension and ultimately value destruction

    To get 50 million users took:Radio 38 years

    TV 13 years The internet 4 years

    IPOD 3 years Facebook 200+ million

  • PA Knowledge Limited 2014 5

    Align your technology and core business aims and take risks whilst establishing those new capabilities that will enable a sustainable and dynamic portfolio

    Thriving in a world of disruptive innovation...

  • PA Knowledge Limited 2014 6

    ENSURE ALIGNMENT BETWEEN TECHNOLOGIES AND BUSINESS AIMS

    1

    Ensure alignment between technologies and business aims

  • PA Knowledge Limited 2014 7

    Manage the technologies through an innovation dialogue

    Ensure alignment between technologies and business aims

    Develop road-maps with different horizons

  • PA Knowledge Limited 2014 8

    Expose the business to new technologies in environments that will drive creativity

    Reactive Proactive

    Giant Leaps

    Small steps

    Car sharing dominates

    Evolved working patterns

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    Effective linkage between infrastructure investment and land value

    Transport investment creates wealth

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    Green, smart, cheap infrastructure costsInfrastructure re-invents city structure and sets framework for growth

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    Car ownership dominates

    Unchanged working patterns

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    No linkage between infrastructure investment and land value

    Transport investment follows demand

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    Transport reflects current thinking and assumptionsH

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    Expensive, dumb, high carbon infrastructure costs

    Infrastructure follows/meets demand

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    Planned Integrated

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    Travelling customers

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    Safety leads agenda

    Overall value captured for business case

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    Education and messaging promote behaviour change

    Travelling users

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    Safety side-lined

    Limited business case ignores overall value

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    FutureScape: How will transport evolve to meet the

    challenges of World Cities in 2025?

    Disparate

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    Transport linked to health agenda

    No link between tran