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Workshop on Game Changing Innovation to drive your Business ...
Workshop on Game Changing Innovation to drive your Business ...
Workshop on Game Changing Innovation to drive your Business ...
Workshop on Game Changing Innovation to drive your Business ...
Workshop on Game Changing Innovation to drive your Business ...
Workshop on Game Changing Innovation to drive your Business ...
Workshop on Game Changing Innovation to drive your Business ...
Workshop on Game Changing Innovation to drive your Business ...
Workshop on Game Changing Innovation to drive your Business ...
Workshop on Game Changing Innovation to drive your Business ...
Workshop on Game Changing Innovation to drive your Business ...
Workshop on Game Changing Innovation to drive your Business ...
Workshop on Game Changing Innovation to drive your Business ...
Workshop on Game Changing Innovation to drive your Business ...
Workshop on Game Changing Innovation to drive your Business ...
Workshop on Game Changing Innovation to drive your Business ...
Workshop on Game Changing Innovation to drive your Business ...
Workshop on Game Changing Innovation to drive your Business ...
Workshop on Game Changing Innovation to drive your Business ...
Workshop on Game Changing Innovation to drive your Business ...
Workshop on Game Changing Innovation to drive your Business ...
Workshop on Game Changing Innovation to drive your Business ...
Workshop on Game Changing Innovation to drive your Business ...
Workshop on Game Changing Innovation to drive your Business ...
Workshop on Game Changing Innovation to drive your Business ...
Workshop on Game Changing Innovation to drive your Business ...
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  • 1. IBM Global Services and the IBM Executive Business Institute Workshop on Game Changing Innovation to drive your Business Strategy Steve Roehm Faculty Member The IBM Executive Business Institute Ho Chi Minh, Vietnam October 5-7, 2005 © Copyright IBM Corporation 2005
  • 2. IBM Executive IBM Global Services and the IBM Executive Business Institute Development Programme Think …….Differently ……More Openly "It's impossible to get out of a problem using the same kind of thinking that it took to get into the problem.“ "If at first the idea is not absurd, then there is no hope for it." Albert Einstein Nobel Laureate © Copyright IBM Corporation 2005 Page 2
  • 3. IBM Executive IBM Global Services and the IBM Executive Business Institute Development Programme Do Your Own Thinking "..best practices discovered by others are not as meaningful to organizations as the discoveries they make themselves.... …we (and they) found that real change happened only when organizations generated their own tools and approaches." © Copyright IBM Corporation 2005 Page 3 SOURCE: Richard Foster + Sarah Kaplan, Creative Destruction, 2001
  • 4. IBM Executive IBM Global Services and the IBM Executive Business Institute Development Programme Introductions Your Name Your Organization Your Job Responsibilities One Expectation for this class © Copyright IBM Corporation 2005 Page 4
  • 5. IBM Executive IBM Global Services and the IBM Executive Business Institute Development Programme Seminar Objectives To identify strategic innovation opportunities and challenges To identify and apply strategic innovation tools or methods To build an initial assessment of your organizations’ current innovation state, and what you could do to leverage it © Copyright IBM Corporation 2005 Page 5
  • 6. IBM Executive IBM Global Services and the IBM Executive Business Institute Development Programme Agenda Day 1 Strategic Innovation Overview Customer Innovation Focus Open Innovation Asymmetries and Innovation Theory Visual Strategy Strategy Canvas Strategy Framework Day 2 Business Design Assessment Customer Presentation IT and Business Alignment Innovation Capability Assessment Action Plan © Copyright IBM Corporation 2005 Page 6
  • 7. IBM Executive IBM Global Services and the IBM Executive Business Institute Development Programme Flow of Seminar Ideas and Customers Tools and Methods Business Design Customer Innovation Focus Assessment Innovation Open Innovation Capability Assessment Asymmetries and Innovation Theory Visual Strategy Action Plan Strategy Canvas Strategy Framework © Copyright IBM Corporation 2005 Page 7
  • 8. IBM Executive IBM Global Services and the IBM Executive Business Institute Development Programme Let’s examine your definitions of Innovation and Strategy and use them as a basis of discussion for this workshop. Activity #1: In a group at each table, use a flip chart to record your answers to the following: What is your definition of Innovation ? What is your definition of Strategy ? What is your definition of Strategic Innovation ? Be prepared to discuss your definitions. Timing: - Definition 10 minutes - Workshop discussion 10 minutes © Copyright IBM Corporation 2005 Page 8
  • 9. IBM Executive IBM Global Services and the IBM Executive Business Institute Development Programme What is a Definition of Strategic Innovation ? Strategic Innovation : is applying the appropriate type of innovation via a product, service, or business model that provides the customer the best value, and provides strategic leverage and value for the organization © Copyright IBM Corporation 2005 Page 9
  • 10. IBM Executive IBM Global Services and the IBM Executive Business Institute Development Programme Why Strategic Innovation ? - 2X Profit !! - TSR Leader - Recovery Leader - Greater New Product Success Rate - Growth and Leadership © Copyright IBM Corporation 2005 Page 10
  • 11. IBM Executive IBM Global Services and the IBM Executive Business Institute Development Programme Not Innovating is Costly Also… No. 2 Discount Retailer Kmart Chief Executive Quits at Merck; Files for Bankruptcy Insider Steps Up Reuters, Jan 23, 2002 NY Times, BUSINESS/FINANCIAL DESK | May 6, 2005 “A crisis of creativity is causing Rumblings in the Food Industry In 126 Years, Ericsson Economist | May , 2005 Has Never Experienced Anything Like This.... United Airlines FT-4/3/03 Chairman Resigns Ericsson chairman FT, 10/28/01 steps down as losses widen ..FT,10/28/01 Corus warns of big job cuts .......FT,3/12/03 Bethlehem Steel Files Lucent Posts $3.25 Billion Q3 Loss for Chapter 11 $7-9 B Writeoff coming.... AP, October 15, 2001 up to 47,000 to be laid off...AP, 7/24/2001 In 1997-2000, innovations in food and beverages - S&P Downgrades Lucent Debt to Junk Status outpaced those in another crucial consumer-goods , Economist, 6/14/2001 market, personal care products….That has since been reversed. The Economist, 7 May 2005 © Copyright IBM Corporation 2005 Page 11
  • 12. IBM Executive IBM Global Services and the IBM Executive Business Institute Development Programme What Do These Industries Have In Common? Watches Electric Motors Industrial Robots Autos Photocopiers Machine Tools Cameras Ship Building Optical Equipment Stereos Software Consulting Services Medical Equip Food Processors Computer Hardware Color TV's Microwave Ovens Textiles Hand Tools Athletic Equipment Airlines Radial Tires Semiconductors Financial Services M. Tushman + C. O'Reilly, Winning Through Innovation © Copyright IBM Corporation 2005 Page 12
  • 13. IBM Executive IBM Global Services and the IBM Executive Business Institute Development Programme Coffee/Tea Break -- 20 Minutes © Copyright IBM Corporation 2005 Page 13
  • 14. IBM Executive IBM Global Services and the IBM Executive Business Institute Development Programme Types of Innovation Disruptive New Market Competes against non-consumption. Creates new growth by making it easier for people to do something that historically required deep expertise or great wealth. Low End Disruption Occurs when existing products and services are “too good” and hence overpriced relative to the value existing customers can use. Sustaining Occurs when improvements are made to existing products on dimensions historically valued by customers. Source: Seeing What’s Next, Clayton Christensen et al, and EBI © Copyright IBM Corporation 2005 Page 14
  • 15. IBM Executive IBM Global Services and the IBM Executive Business Institute Development Programme Types of Innovation Disruptive New Market Competes against non-consumption. Creates new growth by making it easier for people to do something that historically required deep expertise or great wealth Internet eBay Palm Pilot Automobile Mainframe computer Airplane Telephone Source: Seeing What’s Next, Clayton Christensen et al, and EBI © Copyright IBM Corporation 2005 Page 15
  • 16. IBM Executive IBM Global Services and the IBM Executive Business Institute Development Programme Types of Innovation - Example Low End Disruption Occurs when existing products and services are “too good” and hence overpriced relative to the value existing customers can use. Low cost airlines Software as a Service Wal-Mart Steel Mini-mills Source: Seeing What’s Next, Clayton Christensen et al, and EBI © Copyright IBM Corporation 2005 Page 16
  • 17. IBM Executive IBM Global Services and the IBM Executive Business Institute Development Programme Types of Innovation - Example Sustaining Occurs when improvements are made to existing products on dimensions historically valued by customers. Features of telephones Enhancements to parts of airplanes Incremental enhancements to any product/service Source: Seeing What’s Next, Clayton Christensen et al, and EBI © Copyright IBM Corporation 2005 Page 17
  • 18. IBM Executive IBM Global Services and the IBM Executive Business Institute Development Programme What Type of Innovation Does Your Idea Represent ? And, why ? Activity #2: 1) From below, select what type of innovation your idea represents? a) Disruptive New Market – Competes against non-consumption. Creates new growth by making it easier for people to do something that historically required deep expertise or great wealth b) Low End Disruption - Occurs when existing products and services are “too good” and hence overpriced relative to, the value existing customers can use. c) Sustaining - Occurs when improvements are made to existing products on dimensions, historically valued by customers. 2) What are the important characteristics or attributes of the type of innovation you selected, and why does it match your new idea ? 3) Please be prepared to discuss your assessment. Approximate Timing: - Preparation 10 minutes - Discussion 10 minutes © Copyright IBM Corporation 2005 Page 18
  • 19. IBM Executive IBM Global Services and the IBM Executive Business Institute Development Programme Ingredients for Strategic Innovation Ingredients Ingredients 1- Ideas 2- Capital 3- Talent SOURCE: G. Hamel, Strategos © Copyright IBM Corporation 2005 Page 19
  • 20. IBM Executive IBM Global Services and the IBM Executive Business Institute Development Programme Discussion: Ideas to Build Strategic Innovation Let’s discuss your organization: Who is responsible for generating ideas ? How are ideas evaluated, and compensated ? How is the failure of an idea assessed, and what is the impact ? How many ideas does your organization generate, and how many make it to the CIO ? ……the CFO ? …versus what a Venture Capitalist sees? © Copyright IBM Corporation 2005 Page 20
  • 21. IBM Executive IBM Global Services and the IBM Executive Business Institute Development Programme Capital Needed for Strategic Innovation Financial Imagination Structural Entrepreneurial Intellectual Is the capital there to support Innovation in your organization ? SOURCE: G. Hamel, Strategos © Copyright IBM Corporation 2005 Page 21
  • 22. IBM Executive IBM Global Services and the IBM Executive Business Institute Development Programme Talent Needed for Strategic Innovation Resource Attraction vs. Resource Allocation How are resources allocated in your organization ? SOURCE: G. Hamel, Strategos © Copyright IBM Corporation 2005 Page 22
  • 23. IBM Executive IBM Global Services and the IBM Executive Business Institute Development Programme Summary Defined Strategic Innovation Why Strategic Innovation is Important Types of Innovation Ingredients for successful Strategic Innovation ….a baseline to begin our dialog © Copyright IBM Corporation 2005 Page 23
  • 24. IBM Executive IBM Global Services and the IBM Executive Business Institute Development Programme Sample Readings/Sources •Henry William Chesbrough, Open Innovation, 2003 •Clayton Christensen, The Innovator's Dilemma, 1997 •Clayton Christensen and Michael Raynor, The Innovator's Solution, 2003 •Clayton Christensen et al, Seeing What’s Next, 2004 •Richard Foster and Sarah Kaplan, Creative Destruction, 2001 •Tom Friedman, The Lexus and the Olive Tree, 1999 •Tom Friedman, The World Is Flat, 2005 •Gary Hamel, Leading the Revolution, 2000 •Marco Iansiti et al, The Keystone Advantage, 2004 •Frans Johansson, The Medici Effect, 2004 •W. Chan Kim and Renee Mauborgne, Blue Ocean Strategy, 2005 •Michael Lewis, Next: The Future Just Happened, 2001 •Jeff Mauzy and Richard Harriman, Creativity, Inc, 2003 •Carlota Perez, Technological Revolutions and Financial Capital, 2003 •Michael Schrage, Serious Play, 1999 •Robert Sutton, Weird Ideas that Work, 2001 •Adrian Slywotzky, D. Morrison, B. Andelman, The Profit Zone, 2001 •Strategy & Innovation Magazine •Peter Schwartz, The Art of the Long View, 1995 •M. Tushman and C. O'Reilly, Winning Through Innovation, 1997 •Eric Von Hippel, Democratizing Innovation, 2005 © Copyright IBM Corporation 2005 Page 24
  • 25. IBM Executive IBM Global Services and the IBM Executive Business Institute Development Programme Thank You ! scroehm@us.ibm.com (845) 512-5278 IBM Executive Business Institute Palisades, New York 10964 - USA http://www.ibm.com/ibm/palisades/abi © Copyright IBM Corporation 2005 Page 25
  • 26. IBM Executive IBM Global Services and the IBM Executive Business Institute Development Programme Another View - Types of Innovation Disruptive New Market Disruptive New Market Or, Low-end Disruption Disruptive Disruptive Strategic New Business Product Concept DEGREE Sustaining Sustaining ++ Continuous Business Process Incremental Improvement Re-engineering Component System BREADTH SOURCE: G. Hamel, Leading the Revolution © Copyright IBM Corporation 2005 Page 26

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