ARC's Dick Slansky Culture of Innovation Presentation @ ARC Industry Forum 2010


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ARC's Dick Slansky Culture of Innovation Presentation @ ARC Industry Forum 2010 in Orlando, FL.
The Culture of Innovation: Strategies for Survival in the Post-Recession Economy
Innovation Will Be the Differentiator.
For Companies to Survive and The Largest Pool of New
Prosper in a Slow to Moderate
Growth Reset Economy, Innovation
Cost Reduction and Process Optimization Remain Important and Ultimately Enable Profitability, but Companies Must First Capture the Market Through Innovative Products and Services

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ARC's Dick Slansky Culture of Innovation Presentation @ ARC Industry Forum 2010

  1. 1. The Culture of Innovation: Strategies forSurvival in the Post-Recession EconomyThe Culture of Innovation: Strategies forSurvival in the Post-Recession EconomySurvival in the Post Recession EconomySurvival in the Post Recession EconomyDick SlanskySenior AnalystyARC Advisory
  2. 2. Innovation Will Define the Competition Innovation Will Be the Differentiator.For Companies to Survive and The Largest Pool of NewProsper in a Slow to ModerateGrowth Reset Economy, InnovationIs the Key The Best Time to Prepare forgIdeas, Concepts, andTechnology Breakthroughsare Outside the Walls of theEnterprise The Best Time to Prepare forExpansion is During a Recession. NotOnly are Assets cheap, but Talent isPlentifulEnterprise Innovation Can Create New Marketsand Sustain Presence in ExistingMarkets Cost Reduction and Process Cost Reduction and ProcessOptimization Remain Important andUltimately Enable Profitability, butCompanies Must First Capture theMarket Through Innovative Products6© ARC Advisory GroupMarket Through Innovative Productsand Services
  3. 3. Business Drivers & Challenges Mandate NewInnovation Strategies Companies Rank Innovation, Risk,Cost, and Collaboration as TheirPrimary Business Strategy InitiativesOutlook For Business in aRecovering Global Economy:Primary Business Strategy Initiatives Innovation is Regarded as the MostImportant Factor in New Growth Companies are Driving InnovationThe Most Innovative Products,Processes, and BusinessModels Will Win Companies are Driving InnovationBeyond Product Development, toBusiness Processes and Manufacturing Focus on R&D and the InnovationP ill b C iti l i th C tModels Will WinProcess will be Critical in the CurrentEconomic Climate: Companies withInnovative Products and Process willbe in Best Position for the EconomicRRecovery Managing and Protecting IntellectualProperty Ad ti f S t i bl (G )7© ARC Advisory Group Adoption of Sustainable (Green)Product Design & Mfg Processes
  4. 4. Which Companies are the Most InnovativeToday?*Apple – Products & Business ModelGoogle Customer ExperienceGoogle – Customer ExperienceToyota – ProcessesMicrosoft ProcessesMicrosoft – ProcessesProcter & Gamble – Products & Processes3M P d t & P3M – Products & ProcessesTata Group – Products & ServicesS th t Ai li C t E iSouthwest Airlines – Customer Experience – Customer Experience & Service8© ARC Advisory Group* Business Week Top 50 Most Innovative Companies for 2009
  5. 5. What Do These Companies Have in Common thatMakes Them Innovative?Actively Seek and Recruit Creative PeopleProvide an Environment that Fosters Creativity andProvide an Environment that Fosters Creativity andInnovation: Personal Freedom, Time, and TrustWilling to Take Risks, Make Mistakes, and Celebrateg , ,Failure (within limits)Provide a Collaborative Environment for Idea Sharing,E l ti d I l t tiEvaluation, and ImplementationHave Established an Innovation Management ProcessR i d R d C ti it d I ti WhRecognize and Reward Creativity and Innovation WhenTheir People DeliverUnderstand that Innovation is a Highly Social and Cultural9© ARC Advisory GroupUnderstand that Innovation is a Highly Social and CulturalProcess: Foster Social Innovation
  6. 6. Defining Our Terms• Culture: Shared, Learned, Symbolic System of Values,Beliefs and Attitudes that Shapes and InfluencesPerception and BehaviorPerception and Behavior• Innovation: A new way of doing something. Can beincremental, evolutionary, radical, and even revolutionaryincremental, evolutionary, radical, and even revolutionarychanges in thinking, products, processes, organizations,or entire business models. Ultimately, the goal ofinnovation is to effect Positive change that leads to betterinnovation is to effect Positive change that leads to betterproducts, more satisfied consumers, and increasedproductivity, all of which are the fundamental source ofeconomic growtheconomic growth• Creativity: A mental and social process involving theDiscovery of new Ideas or Concepts, or new associations10© ARC Advisory Groupy p ,of the Creative mind between existing ideas or concepts
  7. 7. Invention and Innovation: Two Sides ofthe Same Coin Ideation and the Inventions that result fromthe Creative process is only the Initial, albeitEssential Stage of the Larger and MoreEssential, Stage of the Larger and MoreComprehensive Innovation process Yo M st Ha e C eati e People to E en You Must Have Creative People to EvenBegin the Innovation Process Fostering a Culture of Innovation MeansProviding an Environment for CreativePeople to be Generate New Ideas Innovation is not just about invention;it’s about driving new ways of doingthings, bringing new ideas into the11© ARC Advisory Groupg , g gmarketplace
  8. 8. How To Establish a Culture of Innovation Establish a Center for Innovation &Core Competency Make Idea Generation Open to Allwithin the Company, not ConfinedOnly to R&D Designate Subject Matter Expertsas Ideation Mentors Discover What Isn’t There: GivePeople the Freedom and Time toThink about New Things and BetterWays Multiply Ideation by Sharing it:Social Innovation Cultivate Ideation and Innovation12© ARC Advisory GroupThrough Rewards and Recognition
  9. 9. Why Managing Innovation is Important “Managing Innovation”: The TermAppears to be Counter Intuitive, butthe Reality is that Great Ideas Don’tBecome Innovative Products &Processes by Accident h C The Most Innovative Companies AreSuccessful Because They Have aProcess to Manage Ideation &InnovationInnovation Managed Innovation MeansStainable Innovation thatContinuously Churns out NewyProducts, Processes, and ServicesTargeted to both Existing andEmerging Market Segments.13© ARC Advisory Group
  10. 10. PLM Solutions Accelerate the Innovation Process Provide a Collaborative EnvironmentNecessary to Foster the InnovationProcess Platform for Design Collaboration Collaborative PLM Platforms Enable & Collaborative PLM Platforms Enable &Expose Global Product & ProcessDevelopment Across the Enterprise Provides Portfolio Management and Provides Portfolio Management andNPDI Solutions Social Innovation: EstablishingKnowledge CommunitiesKnowledge Communities Provides a Platform to Manage theInnovation Process14© ARC Advisory Group
  11. 11. Today’s PLM Enables Innovation : FromConcept to Consumer3. Consumers(Experience)Social InnovationSocial InnovationCommunities2.Collaborators &Stakeholders(Share)( )Virtual CollaborationShared Workplace1. Creators:Designers/Engineers(Imagine)Any productd P16© ARC Advisory Groupand Process
  12. 12. PLM Maturity Curve: Collaboration & SocialInnovation EmergeEnterprise PLMEnterprise PLM:Next Generation PLM:• Social Innovation –Open PLM• SOA based PLMiExpanded Scope ofLifecycle: From DesignEngineering to Multiple Enterprise PLM:PLM Integrated withrest of enterprisearchitecture – ERP,CRM, SCMEnterpriseServices• KnowledgeCommunities• Integrated Productand ProcessesPLM: Multi-Engineering to MultipleStakeholders Across allDomainsProduct DataProduct DataMEngineeringdesignCompliance andQuality Systemsenterprisecollaboration.Lifecycle DomainIntegration. Webbased project/program mgmtMgmt:Single Repositoryfor EngineeringDesign. BOMmanagement in acentralized systemdesignsystems:/p g gEngineeringDesign Systems:Design repositoriesin each engineeringorganization and17© ARC Advisory Groupo ga a o a dsystem. ChangeMgmt & VersionControl
  13. 13. Thank You.Thank You.For more information, contact the author or visit our web pages atwww arcweb com18© ARC Advisory