the-new-age-of-innovation-1225032304294444-9

Apr 8, 2023 1

The New Age The New Age of Innovationof Innovation

C. K. PrahladC. K. Prahlad

M. S. KrishnanM. S. Krishnan

Apr 8, 2023 2- Vinay Chaganti -

Structure of this presentationStructure of this presentation

Introduction of the authorsIntroduction of the authors Introduction to the bookIntroduction to the book New age of innovation, and what it meansNew age of innovation, and what it means Framework: N = 1 & R = GFramework: N = 1 & R = G Strategies to gain Competitive AdvantageStrategies to gain Competitive Advantage Managerial Requirements for InnovationManagerial Requirements for Innovation

Interaction Interaction


Author profilesAuthor profiles

Coimbatore Krishnarao PrahladCoimbatore Krishnarao Prahlad

EducationEducation B. Sc, University of Madras – 1960B. Sc, University of Madras – 1960 PGDBA, IIM Ahmedabad – 1966PGDBA, IIM Ahmedabad – 1966 D.B.A, Harvard Business School – 1975D.B.A, Harvard Business School – 1975

Dean at University of MichiganDean at University of Michigan Has been in the top ten management thinkers by most Has been in the top ten management thinkers by most

surveys globally, continuously over the last decadesurveys globally, continuously over the last decade Ranked by TIME as the “Most influential management Ranked by TIME as the “Most influential management

thinker”thinker” First recipient of Lal Bahadur Shastri award for Contribution First recipient of Lal Bahadur Shastri award for Contribution

to management and public administration, from the to management and public administration, from the president of India in 2000president of India in 2000

Author of books:Author of books: Competing for the future, with Gary Hamel in 1994Competing for the future, with Gary Hamel in 1994 The future of competition, with Venkata Ramaswamy in 2004The future of competition, with Venkata Ramaswamy in 2004 Fortune at the bottom of the pyramid, in 2004Fortune at the bottom of the pyramid, in 2004 The new age of Innovation, with M.S. Krishnan in 2008The new age of Innovation, with M.S. Krishnan in 2008


Author profilesAuthor profiles

Mayuram S KrishnanMayuram S Krishnan EducationEducation

B. Sc, University of Delhi – 1984B. Sc, University of Delhi – 1984 M.C.A, University of Delhi – 1987M.C.A, University of Delhi – 1987 M.S, Carnegie Mellon University – 1993M.S, Carnegie Mellon University – 1993 Ph. D, Carnegie Mellon University – 1996Ph. D, Carnegie Mellon University – 1996

Professor at University of MichiganProfessor at University of Michigan Co-director, Center for Global resource leverage - IndiaCo-director, Center for Global resource leverage - India Recognized by American Society for Quality as one of the Recognized by American Society for Quality as one of the

top 21 voices for quality in the 21top 21 voices for quality in the 21stst century century Serves various boards as associate editor of journals in Serves various boards as associate editor of journals in

Management science and Information systems researchManagement science and Information systems research Published research articles in IEEE and HBR JournalsPublished research articles in IEEE and HBR Journals Co-author of the book, The new age of InnovationCo-author of the book, The new age of Innovation


Contents of the BookContents of the Book

Expected to give the strategies for re-designing systems to Expected to give the strategies for re-designing systems to co-create value with customers and connect all parts of a co-create value with customers and connect all parts of a firm to this process, the chapters of the book were firm to this process, the chapters of the book were organized as below:organized as below:

Transformation of BusinessTransformation of Business Business Processes: The enablers of InnovationBusiness Processes: The enablers of Innovation Analytics: Insights for InnovationAnalytics: Insights for Innovation IT Matters: Technical Architecture for InnovationIT Matters: Technical Architecture for Innovation Organizational Legacies: Impediments to Value creationOrganizational Legacies: Impediments to Value creation Efficiency and Flexibility: Managing the tensionEfficiency and Flexibility: Managing the tension Dynamic Reconfiguration of TalentDynamic Reconfiguration of Talent Agenda for Managers: Focus on the essence of InnovationAgenda for Managers: Focus on the essence of Innovation


Innovation in 21Innovation in 21stst Century Century

InnovationInnovation Successful application of an inventionSuccessful application of an invention Complex processes of change characterized by co-Complex processes of change characterized by co-

evolution of scientific, technological, societal and evolution of scientific, technological, societal and economic systemseconomic systems

Creative work translated to useable outcomeCreative work translated to useable outcome 2121stst Century requirements of innovation: Century requirements of innovation:

OpenOpen CollaborativeCollaborative Multi-disciplinaryMulti-disciplinary GlobalGlobal

Source:Source: Somewhere from Google Somewhere from Google


Why Innovate at all?Why Innovate at all?

With the advent of digitization, ubiquitous connectivity With the advent of digitization, ubiquitous connectivity and globalization, Transformation will need to be and globalization, Transformation will need to be radically altered, to change the very nature of the firm radically altered, to change the very nature of the firm and how it creates valueand how it creates value

Competitive advantage in 21Competitive advantage in 21stst century can be gained century can be gained only through a combination of cost leadership and only through a combination of cost leadership and differentiation, Specialization and the best information differentiation, Specialization and the best information management systemsmanagement systems

Scalable means survival, sinceScalable means survival, since Cost arbitrage sought can only go downwardsCost arbitrage sought can only go downwards Cost of talent arbitrage can only go upwardsCost of talent arbitrage can only go upwards

WORLD CAN ONLY BE MORE COMPLEXWORLD CAN ONLY BE MORE COMPLEX


N = 1 and R = GN = 1 and R = G

N = 1N = 1 Value will increasingly be co-created with Value will increasingly be co-created with

consumersconsumers Every consumer is uniqueEvery consumer is unique

R = GR = G No single firm has the complete knowledge, No single firm has the complete knowledge,

skills and resources it needs to co-create value skills and resources it needs to co-create value with consumerswith consumers

Every company has a gap between the Every company has a gap between the strategic intent and its capacity to act from strategic intent and its capacity to act from within the organizationwithin the organization


Reality by 2015Reality by 2015

5 Billion people are connected through Mobiles and 5 Billion people are connected through Mobiles and InternetInternet

1 Billion people are active in using Social networks1 Billion people are active in using Social networks Easy access to InfrastructureEasy access to Infrastructure Ever increasing competitionEver increasing competition Easy to use and cheaper cost technologies coming Easy to use and cheaper cost technologies coming

throughthrough Future consumers are here, very young todayFuture consumers are here, very young today

WORLD IS A PLACE FOR INDIVIDUALSWORLD IS A PLACE FOR INDIVIDUALS


StrategyStrategy

ThemeTheme Enhance mission critical business processesEnhance mission critical business processes

FocusFocus Designing processes to ‘enable innovation’ irrespective of the Designing processes to ‘enable innovation’ irrespective of the

manifestation of innovation itselfmanifestation of innovation itself Action ItemsAction Items

Integrate and maintain the access to capital and other resourcesIntegrate and maintain the access to capital and other resources Manage the relationship between Ideas, Information, and Manage the relationship between Ideas, Information, and

KnowledgeKnowledge Make the processes connect strategic intent to day-to-day Make the processes connect strategic intent to day-to-day

operationsoperations Possible Causes of FailurePossible Causes of Failure

Lack of senior management involvement in designing business Lack of senior management involvement in designing business processesprocesses

Focus on either Profitability or Growth aloneFocus on either Profitability or Growth alone


StrategyStrategy

ThemeTheme Build analytics at every level of the systemBuild analytics at every level of the system

FocusFocus Research oriented data, not transactional dataResearch oriented data, not transactional data

Action ItemsAction Items Connect to the strategy and identify the required analyticsConnect to the strategy and identify the required analytics Improve the level of granularity, clarity, and visibility of Improve the level of granularity, clarity, and visibility of

processes to leverage on global resourcesprocesses to leverage on global resources Possible Causes of FailurePossible Causes of Failure

Dominant Logic: What you see depends on where you have Dominant Logic: What you see depends on where you have beenbeen

Failure to identify the emerging trend; and not looking Failure to identify the emerging trend; and not looking down for emerging players in the businessdown for emerging players in the business

Working on un-actionable insightsWorking on un-actionable insights


StrategyStrategy

ThemeTheme IT matters: Improve the technical architectureIT matters: Improve the technical architecture

FocusFocus Technology enabling strong business foundation, compliant to Technology enabling strong business foundation, compliant to

environment.environment. Technology with evolving capabilities that can confront reality Technology with evolving capabilities that can confront reality

and changeand change Should communicate the displacement of center of gravity at Should communicate the displacement of center of gravity at

any timeany time Quality – Speed : Event Driven – Scalable : Cost advantage – Change and Quality – Speed : Event Driven – Scalable : Cost advantage – Change and

FlexibilityFlexibility Interface – Ease of use – Ease to work - IntegrationInterface – Ease of use – Ease to work - Integration

Possible Causes of FailurePossible Causes of Failure Lack of senior management involvement, in identifying the need Lack of senior management involvement, in identifying the need

for technology, and the suitable technology for businessfor technology, and the suitable technology for business


StrategyStrategy

ThemeTheme Be efficient and flexible at the same time: EFFECTIVEBe efficient and flexible at the same time: EFFECTIVE

FocusFocus Managing the tension; Social Architecture and Technical Managing the tension; Social Architecture and Technical

ArchitectureArchitecture Action ItemsAction Items

Change the roles and responsibilities of people to fit the Change the roles and responsibilities of people to fit the strategystrategy

Put governance to work; not to change policies, but create a Put governance to work; not to change policies, but create a transparent platform to create policies – custom fit to transparent platform to create policies – custom fit to consumersconsumers

Increase the elasticity: the extent to which processes can be Increase the elasticity: the extent to which processes can be stretched to accommodate strategically dissimilar businessesstretched to accommodate strategically dissimilar businesses

Possible Causes of FailurePossible Causes of Failure Lack of Training to personnelLack of Training to personnel


StrategyStrategy

ThemeTheme Reconfigure the talent; Make it mobileReconfigure the talent; Make it mobile

FocusFocus Ceaseless improvementCeaseless improvement

Action ItemsAction Items Identify the talent within the organization; have access talent Identify the talent within the organization; have access talent

outsideoutside Make the talent work towards a goal and help it manage stressMake the talent work towards a goal and help it manage stress Create capacity to reduce with frictional losses during Create capacity to reduce with frictional losses during

reconfigurationreconfiguration Possible Causes of FailurePossible Causes of Failure

Temptation to outsource, rather than mobilize talentTemptation to outsource, rather than mobilize talent Losing sight of the vision, due to possible breakthroughsLosing sight of the vision, due to possible breakthroughs


Obstacles to InnovationObstacles to Innovation

Improper Organizational StructureImproper Organizational Structure Misalignment of GoalsMisalignment of Goals False StartFalse Start Lack of DisciplineLack of Discipline Organizational LegaciesOrganizational Legacies Weak AccountabilityWeak Accountability Individuals’ domination in thought processIndividuals’ domination in thought process No Sense of UrgencyNo Sense of Urgency Gut feel managementGut feel management

Source:Source: Just one of our recipe Just one of our recipe


Managerial Requirements for Managerial Requirements for InnovationInnovation

Realize the paradigm, N = 1 and R = GRealize the paradigm, N = 1 and R = G Remember, What got you here won’t get you thereRemember, What got you here won’t get you there Transition is about Speed and StaminaTransition is about Speed and Stamina Make transition measurableMake transition measurable Articulate capabilities and point of departures, Articulate capabilities and point of departures,

clearlyclearly Migration should be well planned, and executed in Migration should be well planned, and executed in

phasesphases Block and Tackle, Keep moving towards the goalBlock and Tackle, Keep moving towards the goal Be ready for troubles. It is never certain anywhereBe ready for troubles. It is never certain anywhere Time lag is inevitable. Learn coping up with itTime lag is inevitable. Learn coping up with it


Welcome for Interaction Welcome for Interaction

Flexibility is not about load balancing, but about Flexibility is not about load balancing, but about continuously balancing load, depending on the continuously balancing load, depending on the nature of the task with appropriate resources. nature of the task with appropriate resources. Therefore:Therefore:

Connect | Collaborate | Co-CreateConnect | Collaborate | Co-Create


Thank you all…Thank you all…

Vinay ChagantiVinay Chaganti

Associate, ATGOCSAssociate, ATGOCS

Work Mail ID: Work Mail ID: [email protected]@atgocs.com

Personal Mail ID: Personal Mail ID: [email protected]@gmail.com

Mobile: +91 97040 53338Mobile: +91 97040 53338

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