When in Newport. Strategic Innovation 1. Innovation 101

Transcription

1 When in Newport Strategic Innovation 1. 1

2 When In Newport Stopover OUTLINE. Strategic Innovation Innovation vs Invention 03 Strategic Innovation Context Industry Strategic Innovation Paradigm 05 Summary and Conclusions We are here 2

3 When in Newport: Strategic Innovation A brief bee journey about Innovation ❶ What? ❸ How? ❺ When? Types? ❻ ❷ Why? ❹ Where? 3

4 ❶ What? Innovation, just as many of the strategy concepts we have seen in our Strategy Volvo Ocean Race , means different things for different people. Innovation is a trendy word. It is fashionable to call everything Innovation Let s see some definitions of innovation. [At HP,] we think about innovation as translating ideas into a meaningful impact for our customers. When we talk about innovation at HP, we mean innovation with a purpose. Deborah Nelson, Managing Partner Timmaron Group Strategic Innovation is about re-imagining your growth strategy. Aviv Consulting. My definition until about two years ago (before the financial crisis of 2008) was doing something game-changing. But with the financial free-fall that the world is in today, my new definition is saving our great companies, saving ourselves and creating our futures by doing something really gamechanging. Julie Anixter, Executive Director, AIGA At Microsoft, we think of [innovation] in terms of inventions and reinventions that are brought to the market and actually transform the experience for the customer. Stephanie Ferguson, General Manager Microsoft We define innovation as taking risks to make people s lives better. It could be doing something that hasn t really been done before or finding a workaround to a problem that currently exists. Caroline Strzalka CEO, Co-Founder at It'sByU (Techstars+Target 2016, Blackbox Connect 20) Innovation is about people. It s about putting an idea into motion. Linda Brigance Retired VP IT Supply Chain FEDEX 4

5 ❶ What? Levels and categories of Innovation (Tidd 2001, Von Stamm 2003) Transformation Cars instead of horses Internet banking Pilkington's floating glass Internet Radical Incremental Hydrogen powered cars New Car model A new kind of mortgage Different mortgage feature Gas-filled thermos glass panes Differently colored glass Online Sales and Distribution of Computers Selling books through APPS instead of selling through Amazon Product Service Process Business Model Innovation = new idea + implementation + creating value 5

6 ❶ What? Innovation is a frame of mind (A mental framework). It is the art of making new connections and continuously challenging the status quo without changing things for change s sake. B. Von Stamm The first thing about understanding innovation is that it is, in essence, a new frame of mind about seeing, perceiving and solving problems in creative ways. 6

7 ❷ Why? 1.The word is full of problems that are hard to solve and aren t going away Innovation is needed to find visionary, creative ideas and solutions required to solve them. It is the only way to improve the quality of people life and the way we live. 3. Taking advantage of the global entrepreneurship movement Entrepreneurship is becoming a global movement and especially in emerging markets, where China and India are leading the pack and Africa is the next hot spot. Innovation is an organic enabler of entrepreneurship. 2. Adapting to Black Swan Events Black Swans are random and unpredictable events that cannot be anticipated. Innovation is required to see and solve problems and to respond to Black Swan Events and external crises in different ways. 4. Competing via blue ocean possibilities with lean & agile start-up methodologies Innovation is the trigger to discover new blue ocean possibilities, creating new industries, and incorporate lean and agile start-up methodologies. 7

8 ❷ Why? 5. Flowing with advances in technology The Industry 4.0 and the connectivity, sharing of data between digital devices, the resulting aggregation of data are creating entirely new business models and revenue streams. It is changing the basis of competition. Innovation will help us to create new products, services, processes and business models advancing with technology. 7. Responding to increasing customer expectations and choices As much as our customers have different expectations and needs and wants, innovation is the key to provide answers to these new choices from our clients. 6. Adapting to changing workplace dynamics and trends Innovation is the key to adapt to the evolution of the generations in the workplace. As more baby boomers retire, Gen X and Millennials are also swapping jobs at increasing rates as they seek more meaningful work, collaboration environments, autonomy and equality. Hiring processes are changing, freelancing and contracting are becoming a way of life. 8. Maximizing globalization connectivity Global businesses need innovation to increase connectivity and collaboration to occur if they wish to thrive in the future. reasons-innovation-important-businesses-today/ 8

9 ❸ How? There are several frameworks for innovation. Each consulting firm (the main relevant firms) do have their own innovation methodologies applied to products, hybrid products, services, processes, business models, disruptive technologies, etc. It is important to understand which methodology would you like to apply case by case. It is not the same to innovate business models than to innovate new products! Traditional frameworks have been linear. Let me show you some of the linear frameworks: 9

10 ❸ How? Sense Start Seed Set-up Businesses Ideas Selection Process Support Activities Venture Unit Business Creation Architecture Model for Innovation of Businesses (Buckland, Hatcher and Birkinshaw, 2003) 10

11 ❸ How? Innovation Sourcing Curation Prioritization Solution Exploration and Hypothesis Testing Incubation Integration and Refactoring Over a period of days, a group generates a list of problems, ideas, and technologies that might be worth investing in The innovators get out of their own offices and talk to colleagues and customers. To identify related internal projects already in existence, and to find commercially available solutions. It also sought to identify legal, security, and support issues. Once a list of innovation ideas has been refined by curation, it needs to be prioritized. One of the quickest ways to sort innovation ideas is to use the McKinsey Three Horizons Model. The ideas that pass through the prioritization filter enter an incubation process. An example is: I-Corps, the system adopted by all U.S. government federal research agencies to turn ideas into products. This six- to ten-week process delivers evidence for defensible, data-based decisions. Once hypothesis testing is complete, many projects will still need a period of incubation as the teams championing the projects gather additional data about the application, further build the MVP, and get used to working together. Incubation requires dedicated leadership oversight At this point, if the innovation is ready, it s time to integrate it into the existing organization. In addition, innovation projects carry both technical and organizational debt. For more information go to: 9/what-your- innovation-process- MVP: Minimum Viable Product should-look-like 11

12 ❸ How? There are circular and spiral innovation frameworks. Spiral Innovation: A Framework for Successful Biomedical Engineering Capacity Building Developing Biomedical Engineering Capacity in Africa: A Pivotal AfDB Role by Samson Jarso June 18, Design Thinking: This framework integrates classic creative problem-solving (CPS) with art and design methodologies. Source: Creativityatwork.com

13 ❹ Where? Innovation as a framework can be applied to everything we do. It is possible to innovate in each and every industry of the planet. And not just only that, we can create new industries too. In addition, it is possible to be innovative in mature markets and emerging markets. In addition, we can create new lands or extend our land over the oceans. Source: 13

14 ❹ Where? Location is important when we decide to make innovation. Remember Location is related not just to the place (the physical village, city, country or region), but also it is related to the industry of our business model. The location for our innovations can be in more than one place: For example we can do our development of new product-services in China, and the testing of the prototype in the USA. Or we can decide to do all the pre-development activities in India, meanwhile the Product Development, Testing and Commercialization in Switzerland. This is the benefit of our inherited globalization. For example, I can be hired in El Salvador, to do a new product development for Chile, and lead it from here, with all the Chilean cultural variables. Of course I need a team in Chile to test the prototype and validate my hypothesis. That is a benefit of internet-collaboration. 14

15 ❺ When? When to do innovation? In relation to business model innovation, should it be a onetime exercise, or does it call for an ongoing capability? In relation to new product development, processes, services, markets, when is it appropriate to do innovation? The answer is simple: it depends! It depends of the level of innovation (if it is incremental, radical or transformational). Source: 15

16 Types? When In Newport Stopover. Strategic Innovation ❻ This is an interpretation from Greg Satell about 4 different types of innovation. For more information follow the link below. Source: 16

17 Thank you! Today we have covered the introduction domain of Innovation, it is a general overview about the theme innovation. On my next post: We will continue with the fundamentals: Innovation vs. Invention Thank you. Innovation is inherent to failure. Innovation efforts are inherently risky and can (by definition) fail. And failure can sting. So if you haven't figured out how to take some of the sting out of failure, you won't get innovation. (Sundheim, 2013) Several Boats at the Volvo Ocean Race have been dismasted. 17