Professor Ping Lan University of Alaska Fairbanks, USA April 2012 for NArFU & SKOLKOVO.

Professor Ping Lan

University of Alaska Fairbanks,

USA April 2012 for NArFU & SKOLKOVO

Farmer, Official and Academia in China. PhD from UK. Journalist, academia and entrepreneur in

Thailand, Australia, Canada, Alaska. Keynote speaker in China, Japan, India,

Brazil, USA on Innovation and Change Management.

Creator of Arctic Innovation Competition www.arcticinno.com.

Copyright © Ping Lan

Understand Changes for ◦ Having right people◦ At right place◦ In right time◦ Doing right thing

Facilitate Changes by enabling◦ Disciplined people◦ Develop disciplined thought◦ Conduct disciplined action


Three basic changes

Seven change continents

Seven change stages

Three change roots


Functionality change--New or modified product/service/function which alters utility of an identity.

Delivery change--New or modified process/method which alters efficiency of an action.

Relationship change--New or modified linkage which alters the distribution of value.



Functionality changecreates a container for

holding something

Relationship change affects the quantity of the

thing put into the container

Delivery change determines the density of the thing put into the container

Early Ford: developed Model T, invented assemble line, and made double pay.

Transformed Apple: designed iPod, created iTunes, partner with Labels.

Initiated Google: arranged new listing, stacked computers, created Adsense.


An overall map of changes

Each continent’s uniqueness◦ Key components◦ Typical landscaping◦ Implications


7

Functionality1

Delivery2

Relationship3

-Function; -Feature-Feasibility-Consequence

-Procedures-Structure -Cost-Speed-Quality-Efficiency

-Stakeholders-Linkage-Revenue-Strategy-Organization

6

54

-Platform-Product families-New biz line

-Partnership -Culture-Managing style

-Biz model-Value chain-Vertical integration

Paradigm


Procedure◦ Define the change tripartite of an organization◦ Check the content of each one◦ Determine its comparative importance in a

competitive environment◦ Obtain the final result of the tripartite combination

Example--AltaVista ◦ Functionality: pioneer in automatic indexing◦ Delivery: lack efforts & uniqueness in delivery◦ Relationship: chaotic in management◦ Status: 1, quick up & quick down with features



Temporal dynamics of changes

A change chain

A change chain with a Loop

Time

Change

Relationship

Delivery

Functionality

Temporal Dynamics of ChangesTemporal Dynamics of Changes


Overall S Curve

Change

Radical Cross Restructure Dichotomy Dual-core Incremental Engagement

A Change Chain with A Loop A Change Chain with A Loop

Time


F F+R F+R+D D D + R R D + F

Prototype produced

Have a consumption beachhead

Standardization

Obtain a dominant design

Diversification of product or service

Drop & stabilize price

Product or service is discontinued

New/Modified Product or service

is introduced

Time

Changes


Patented by Sholes,50 modelswere made

1868-74

Yost, Remington& No. 2, author consumption1875-80

Caligraph,Crandell, Hammond, Hall Typists,Separate thinking from Doing1881-88

Dominant Remington 18000special equip1889-95

Adler in Germany1896-1908

Cost Sensitive Underwood control over50% market Remington, Royal, Smith & Bothers, A lot M&As1909-1929

Remington

Underwood tried E-typewriter and failed

IBM bought E- Typewriter Inc. 1933

Many firms left1930--

Wagner DesignUnderwood Royal last entry


Change


Loops in the Typewriter Industry Loops in the Typewriter Industry

Time

F F+R F+R+D D D + R R D + F

1933-1963: electric-powered typewriters

1964-1976: word processors

1977-1990s: Faded out of typewriters


External change marker (God/Environment/Out of control)

Internal change marker◦Three change roots◦Their work mechanism◦Changes they may bring about


Functionality change

Delivery change

Relationship change

Contents Habit for selecting learning areas & mechanisms (dealing with known/unknown by using knowledge conversion modes)

Effects Add expertise Increase sensitivity (Questioning: pose queries that challenge common wisdom; Observing: scrutinize the behavior of actors to identify new ways of action)

Working areas

Crucial Important Important

Case Amazon’s Jeff Bezos.



Delivery change

Relationship change

Contents Habit for associating unrelated areas (drawing connections between questions, problems, or ideas from unrelated fields)

Effects Add integration or wholeness; Create a vision, or a platform; (Networking--meet people with different ideas and perspectives)

Working areas

Important Important Crucial

Case Apple’s Steve Jobs connecting dots



Delivery change

Relationship change

Contents Habit for solving problems through focusing and persistent engagement /commitment

Effects Facilitate action Increase simplicity

Working areas

Important Crucial Important

Case Intel’s Andrew Grove


Disciplined people to

Develop disciplined thought, and to

Conduct disciplined action


Build up a leadership hierarchy

Have active crew members


Based on Collins 2001

Leading with principles

Eyeing the large picture

Acting on bright spots

Developing something from the non-existing

Enabling what needs to be done

Reviewing fairly and constructively


Right People = Tasks {match} Abilitires

Get on or off a bus;Remain in a bus.

Known destination or task;Unsure destination or task;Unknown destination or task.

Fat men fish;Fat men run;Fat men fish & run.


Confront the brutal fact

Develop hedgehog concept


Find & face facts. Continually refine the path with the brutal facts of reality.

Retain an unwavering faith in the game.


A Change Chain

Based on Collins 2001A single economic denominator

Gain the flywheel effect

Avoid the doom loop

Keep using creation/innovation


Based on Collins 2001

Creation/Innovation

Problems within a given boundary


New Scope

New Angle

New Method

New Effect

Professor Ping Lan University of Alaska Fairbanks, USA April 2012 for NArFU & SKOLKOVO.

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