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)
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)
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 prac.cal Guide to Leading Organiza.onal Change and Renewal
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
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
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
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)?
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)
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
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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