BOF APAC 2011: New Business Creation Innovation

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BOF APAC 2011: New Business Creation Innovation

  1. 1. New Business Creation Governance and Roadmap-- Innovation Insights from Our Research and Consulting è pé “Roc” , ng April 18, 2011 RADICAL INNOVATION GROUP
  2. 2. Radical Innovation Group Origins and FocusRadical Innovation Groupfounded in 2001 to respond torequests for consulting associatedwith December 2000 book release.Focus on most difficult partof consulting equation -not “What?” but “How To?”. Uncovering new pathways for growth and corporate renewal through new business creation. RADICAL INNOVATION GROUP © 2001-2011 All Rights Reserved 2
  3. 3. Some of Our Clients (Past and Present)Client Base Fortune 1000 Companies. Diverse Industry Sectors. Medium and Large Size Global Players. RADICAL INNOVATION GROUP © 2001-2011 All Rights Reserved 3
  4. 4. New Business Creation (NBC)Creating a common language and discipline to drive growth RADICAL INNOVATION GROUP
  5. 5. Innovation Continuum: NPD and NBC Worlds Degree of Low Medium High Uncertainty Type of Innovation NPD: Incremental NBC: Evolutionary NBC: Breakthrough Categories of Low Uncertainty Levels Mix of Uncertainty Levels High Uncertainty Levels Uncertainty (MTRO) Market Timing Short Term: Medium Term: Long Term: 0 to 2 Years 2 to 5 Years 5+ Years Strategic Drivers New Products to Extend Next Generation and New Emerging Markets and Existing Business Business Models for Technologies for Growth Growth and RenewalOpportunity Selection Customer Voice and Customer or Market Voice Market and/or Technology Market Research Voice and Opportunity Recognition Market Focus Existing Base Existing Base, Adjacent New Customers, Markets and New Applications and Unknown Application Areas Business Areas Process Stage Gate and Learning Models and Learning Models and Concurrent Engineering Discovery Driven Discovery Driven Processes ProcessesTransition Readiness Ready for New Product Incubation, Acceleration Incubation, Acceleration Development (NPD) and Interface and Interface Management Process Management RADICAL INNOVATION GROUP © 2001-2011 All Rights Reserved 5
  6. 6. Driving Growth through a Disciplined Approach RPI 2006 Research Findings: R&D Investment + Performance NBC Capability Value Added R&D Investment Alone Time RADICAL INNOVATION GROUP © 2001-2011 All Rights Reserved 6
  7. 7. NBC System and Competency RequirementsInsights from RPI’s ResearchRADICAL INNOVATION GROUP © 2001-2011 All Rights Reserved 7
  8. 8. RPI Research: Moving from Project to System Research Phase I Research Phase II 1995 to 2000 2001 to 2006The journey to make New Business Creation (NBC) a discipline for sustainable global advantage. RADICAL INNOVATION GROUP © 2001-2011 All Rights Reserved 8
  9. 9. New Business Creation Management Model Technical Market Resource OrganizationUncertainty Uncertainty Uncertainty UncertaintyChallenge 1:Ideas toOpportunities Challenge 2: Living with DIA Model  Chaos Challenges and Challenge 3: Market Uncertainties Learning Challenge 4: Business Model Challenge 5: Resource Governance Model Challenge 6: Acquisition Transition Challenge 7: Management Business Individual Strategy Initiative Infrastructure RADICAL INNOVATION GROUP © 2001-2011 All Rights Reserved 9
  10. 10. Corporate Entrepreneurs Challenge Status Quo Self-Described Characteristics:Traditional New Product Development Teams:  Superior technical capabilities Cross Functional  Inquisitive  Not afraid to be different  Extremely curious  Assertive (perceived as aggressive) vs.  Risk takers  Entrepreneurial  Passionate  Broadly educated New Business Creation  IntegrativeTeams: Cross-Functional  Embrace change Individuals  Goal-oriented  Business and market savvy RADICAL INNOVATION GROUP © 2001-2011 All Rights Reserved 10
  11. 11. DIA Model Drives Competencies and Structure NBC Hub or Focal Point Orchestrates System and Oversees Transitions/Interfaces Discovery Incubation Acceleration Creation, Evolving the Ramping recognition, opportunity into up the elaboration, business to a business articulation stand on its proposal of opportunities own Conceptualization Experimentation Commercialization Research Technical Focus Internal Hunting Market Learning Respond External Scouting: Market Creation Invest License/Purchase/ Strategic Domains Partner/Invest RADICAL INNOVATION GROUP © 2001-2011 All Rights Reserved 11
  12. 12. Effective Management System Required Clear Mission and Scope of Innovation Activities Appropriate Supportive Metrics and Leadership &Reward Systems CultureLearning-Based IdentifiableMethodologies, OrganizationProcesses and Structure and Tools Rich Interfaces Requisite Skills Governance and Decision Development and Talent Making at Project, Portfolio Management and Strategic Levels RADICAL INNOVATION GROUP © 2001-2011 All Rights Reserved 12
  13. 13. NBC Roadmap™ and Critical Success FactorsAvoiding the “Valley of Death”RADICAL INNOVATION GROUP
  14. 14. NBC Roadmap to Architect for Success Strategic Strategic or Innovation Intent. Innovation Entrepreneurial and Operations Cultures. Agenda Education and Expectations Management. Portfolio Right Type and Level of Resource Innovation Commitment. System and Portfolio Flow, Pacing and Transitions. Talent Appropriate Evaluation Criteria and Metrics. Management Internal and External Interface Management. Project Uncertainty Reduction.Team Learningand Uncertainty Staged Learning. Management Career Paths and Recognition. RADICAL INNOVATION GROUP © 2001-2011 All Rights Reserved 14
  15. 15. NBC Roadmap to Cross the Valley of Death Strategic Intent Portfolio Management and Strategic Coaching Defined and Takes place throughout DIA project maturation GovernanceModel Developed Transition Readiness Opportunity Assessment Placement 1. Acceleration Decision for Operations NBC versus Discovery 2. Market NPD Opportunity Acceleration 2 Recognition Tool Traditional NPD Value Articulation Processes and Tools Incubation 1 Learning Plan Project Commercialization Path Research Marketing & Sales Valley of Death RADICAL INNOVATION GROUP 15
  16. 16. NBC Governance and Roadmap for Business Sustainability1. Make investment in evolutionary and breakthrough innovation strategically relevant;2. Maximize return on investment in innovation and realize this return more quickly;3. Manage a portfolio of diverse innovation investments tied to strategic intent and level of risk;4. Navigate the divide between innovation and dominant operational excellence cultures; and5. Prepare leadership team to bring a new discipline to these chaotic, uncharted waters. RADICAL INNOVATION GROUP © 2001-2011 All Rights Reserved 16

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