Develop Innovation GloballyProfessor Martin
1.	  Innova)on	  is	  more	  than	  new	  products	  
The	  innova)on	  wheel	  helps	  to	  visualize	  the	                 innova)on	  direc)on	  Source:	  Mahon	  Sawhney	 ...
The	  example	  of	  Dell	  
The	  example	  of	  MAN	  Ferrostaal	                                             Products	                              ...
The	  example	  of	  ???	                                             Products	                                           ...
2.	  Aligning	  strategy	  and	  innova)on	  is	  key	                                                                    ...
3.	  Strategy	  AND	  innova)on	  depend	  on	                       your	  )me	  horizon	  Three	  horizon	  model	  of	 ...
4.	  Cri)cal	  tasks	  will	  follow	  your	  decision	  Characteris)cs	  and	  challenges	  of	  three	  horizons	       ...
5.	  You	  have	  to	  seperate	  horizon	  3	                                                           innova)on	  teams...
6.	  You	  will	  have	  a	  hub-­‐	  and	  an	  integrated	                            R&D	  network	  simultaneously	  S...
7.	  What	  is	  the	  purpose	  of	  your	  R&D	  site?	                          Home-­‐base	  exploi)ng	               ...
8.	  Understanding	  your	  culture	  is	  key	  to	                  kick-­‐start	  innova)on	  • unplanned connections  ...
9.	  Leadership	  is	  key	  for	  innova)on	  •  Encourage	  new	  ideas,	  especially	  from	  below	  and	  from	  unex...
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Develop Innovation Globally


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Develop Innovation Globally

  1. 1. Develop Innovation GloballyProfessor Martin
  2. 2. 1.  Innova)on  is  more  than  new  products  
  3. 3. The  innova)on  wheel  helps  to  visualize  the   innova)on  direc)on  Source:  Mahon  Sawhney  2002  
  4. 4. The  example  of  Dell  
  5. 5. The  example  of  MAN  Ferrostaal   Products   (What)   R&D   PlaHorms   Networking   Solu8ons   Customers   Channels   (Who)   (Where)   Logis8cs/   Customer  Experience   Supply  Chain   Value  Chain   Revenue  Model   Processes  Source:  Mahon  Sawhney  2002   (How)  
  6. 6. The  example  of  ???   Products   (What)   R&D   PlaHorms   Networking   Solu8ons   Customers   Channels   (Who)   (Where)   Logis8cs/   Customer  Experience   Supply  Chain   Value  Chain   Revenue  Model   Processes  Source:  Mahon  Sawhney  2002   (How)  
  7. 7. 2.  Aligning  strategy  and  innova)on  is  key   Strategy   •  Where  to  compete?     •  How  to  compete?     Cri)cal  Tasks   •  The  3-­‐5  concrete  things  you   need  to  do  to  execute  your   Human  Resources   strategy   Culture   •  Do  people  have  the  necessary   •  What  are  the  norms,  values,   competencies?   aMtudes,  and  behaviors   •  Are  they  mo)vated?   needed?   Formal  Organiza)on   •  Structure?   •  Controls?   •  Rewards?   •  Careers?  Following:  Tushman,  OReilly:  Winning  through  Innova.on  –    A  Guide  to  Leading  Organiza.onal  Change  and  Renewal  
  8. 8. 3.  Strategy  AND  innova)on  depend  on   your  )me  horizon  Three  horizon  model  of  sustainable  business  development   Tasks  of  Business   management  volume  (cumulated)   Create  viable   Horizon  3   op)ons  for  fu-­‐   ture  businesses   Build  and   Horizon  2   grow  start-­‐up   businesses   Protect  and   Horizon  1   expand  core   businesses   Today   Time  Source:  Baghai/Coley/White,  1999  
  9. 9. 4.  Cri)cal  tasks  will  follow  your  decision  Characteris)cs  and  challenges  of  three  horizons   Horizon  3   Horizon  2   Horizon  1   Characte-­‐   •  Core  business   •  Fast  growing   •  Op)on  for  business   ris8cs   of  today   business   of  the  future   •  Limited  growth   •  Start-­‐up  phase   •  More  than  just  an   poten)al   of  lifecycle   idea   •  High  profit  and   •  High  investment   •  Limited  invest-­‐   cash  flow   required   ment   Management   •  Protect  and  expand   •  Build  and  grow   •  Seed  many   challenges   market  posi)on   market  presen-­‐   different  op)ons   •  Incremental     ce   •  Develop  entre-­‐   innova)on   •  Bring  innova)on   preneurial   •  Commodi)za)on   to  marktes   behavior   and  restructuring  
  10. 10. 5.  You  have  to  seperate  horizon  3   innova)on  teams   4  organiza8onal  designs  to  develop  and  deliver  innova8ons   The scope of the ambidextrous organization Alignment of: Exploitative Business Exploratory Business Func8onal  designs   Unsupported  teams   General   General   Strategic intent cost, profit innovation, growth Manager   Manager   operations, efficiency, adaptability, new products, Emerging   Critical tasks incremental innovation breakthrough innovation MfG   Sales   R&D   MfG   Sales   R&D   Business   Competencies operational entrepreneurial Cross-­‐func8onal  teams   Ambidextrous  organiza8ons   Structure formal, mechanistic adaptive, loose General   General   Manager   Manager   Controls, rewards margins, productivity milestones, growth Exis8ng   Emerging   MfG   Sales   R&D   Business   Business   efficiency, low risk, risk taking, speed, flexibility, Culture quality, customers experimentation Emerging  Business   MfG   Sales   R&D   MfG   Sales   R&D   Leadership role authoritative, top down visionary, involvedSource:  OReilly  III  /  Tushmann,  HBR  April  2004  
  11. 11. 6.  You  will  have  a  hub-­‐  and  an  integrated   R&D  network  simultaneously  Source:  Gassmann,  Zedtwitz  1999     Important  ques8ons  to  ask:   •  Do  we  have  the  competencies  centrally?   •  Does  regional  demand  require  adapted  or  new  solu)ons?   •  Is  the  demand  purely  regional  or  are  there  other  regions  with  similar  demand  (size  of  the   market  for  poten)al  new  solu)on)?  
  12. 12. 7.  What  is  the  purpose  of  your  R&D  site?   Home-­‐base  exploi)ng   Home-­‐base  augmen)ng   Exploit  exis)ng  stock  of  knowledge   Develop  new  knowledge   Generally  located  close  to   Close  to  ins)tu)ons  of  scien)fic   manufacturing  site   excellence       Challenges:   Challenges:   •  Manage  growth   •  Finding  the  right  leader  (from   •  Enable  careers   outside?)   •  Respect  btw.  central  and   •  Knowledge  transfer  back  to   decentral  R&D   headquarter   Underlying  challenge  is  the  transfer  of  knowledge.  Some  ideas:   •  Temporary  exchange  of  people   •  Inhouse  science  fairs   •  Transperent  performance  systems  Source:  Kuemmerle,  W.  (1996)  
  13. 13. 8.  Understanding  your  culture  is  key  to   kick-­‐start  innova)on  • unplanned connections High   • complex• diversity network communal • long term• slack • innovation all over• radical Sociability   Informality Fun Teamwork • visionary leadership• slow implementation Participation • planned, measured• individuals fragmented mercenary • incremental• creative and completers • separated• slack through autonomy Cognitive Market • no slack• recruitment key Low   Conflict pressure • fast implementation Low   Solidarity   High   Adapted  from  Goffee/Jones  
  14. 14. 9.  Leadership  is  key  for  innova)on  •  Encourage  new  ideas,  especially  from  below  and  from  unexpected   sources.  •  Look  ahead,  not  behind.  The  past  is  prologue  but  not  necessarily   precedent.  •  Leave  some  slack  for  experimenta8on,  whether  spare  )me  or  seed   money.  •  Look  for  improvements,  not  cri)ques.  Encourage  collabora8on  toward   common  goals.  •  Be  flexible.  Stress  substance  over  form,  ac)on  over  calendar.  Allow  for   unplanned  opportuni)es.  •  Open  strategic  discussions  to  new  voices.  •  Accept  that  stretch  goals  mean  some  things  wont  work.  Avoid  public   humilia)on;  promote  public  recogni8on  for  innova)ve  accomplishments.  •  Foster  respect  for  people  and  their  talents.  •  And  know  learning  is  an  impera)ve.  Everyone,  even  the  most   experienced,  must  be  open  to  learning.   Source:  Kanter,  R.  HBR  Blog,  2013  
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