From Innovation to Incubation: Business Success Through Grassroots Innovation

From Innovation to Incubation
Business Success Through Grassroots Innovation

Prof.dr. Stefan Stremersch

Erasmus University Rotterdam IESE Business School
Rotterdam, the Netherlands Barcelona, Spain

© Property of Stefan Stremersch ©

How to Deal with Constant Change?

“The rules have changed. In a single generation,
revolutions in technology have transformed the
way we live, work and do business. (…) We need
to out-innovate, out-educate, and out-build the
rest of the world.”
Jon Favreau
White House Director of Speechwriting
This quote is from Obama’s State of the Union Address
(January 2011)


Building a Culture of Innovation

The greatest challenge to deliver business results is
creating a climate for innovation within the
organization

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How to Deal with Constant Change?

“Innovation distinguishes
between a leader and a follower”
Steve Jobs

“The real source of wealth and capital
in this new era is not material things…
it is the human mind, the human spirit,
the human imagination, and our faith
in the future” Steve Forbes
4

You Need Three Things to Initiate
Innovation

5

Identify unmet needs of your
customers.

1 2 3
6

Find a great solution for such
customer needs.

1 2 3
7

Define a strategy to make profit$
from your great $olution.

1 2 3
8

But How to Unleash Such Creativity
and Out-Innovate Competition?

9

Strategy 1: The Visionary Leader

1. Strong and visionary
leadership
2. Ferocious planning:
defining all details on
execution
3. Capacity to sense
customer needs

10

Risks of Visionary Leader Strategy

Lack of sustainability of the “Visionary Leader” model?
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Strategy 2: The Lab Elite

Accomplishments Bell Labs: Transistor, silicon
solar cell, first communication satellites, first
cellular telephone systems …
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Risks of Lab Elite Strategy:
The Rise and Fall of Corporate Labs

13

Risks of Lab Elite Strategy:
Intolerance for Contrarian Spirits

Management reaction: “That’s
cute but doesn’t use films, so
don’t tell anyone about it.”
(frog in the kettle)

X

Steve Sasson was the
first to propose a
digital camera
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Innovation is not the job of the happy
few, but the responsibility of MANY

The Lab Elite

The Visionary Leader

Grassroots Innovation – emerges from the grassroots. It’s the
most natural source of change.
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Why is Grassroots Innovation
Successful?

16

The Journey of the HMS Beagle

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© Property of Stefan Stremersch © stefan.stremersch@mti2.eu

Charles Darwin (1809-1882)
In the Galapagos islands Darwin found
that genetic variation allowed species
to adapt to local conditions and
improve survival.

Different species of finches in the
Galapagos, developed beaks adapted
to the particular type of food they
needed to eat.

18

Think of Your Business as a Finch!

Experiment and Adapt!
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Principles

Experiment Incubate Learn
(Innovation) (Survival) (Adaptation)

20

Grassroots Innovation and
Experimentation
Principle 1: Embrace grassroots experiments as an organic
source of innovation.


21

Survival and Incubation

Principle 2: Incubation allows you to experiment on a scale
where failure is survivable.


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Learn, Adapt and Transform

Principle 2: Incubation allows you to experiment on a scale
where failure is survivable.
Principle 3: Gather market feedback, learn and use such
insights to adapt and transform your organization.


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Adapt and Transform: Three Key
Benefits of Grassroots Innovation

Organic
Innovation

People Changing
Development Mindset
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Adapt and Transform:
Boosting Organic Innovation

Organic
Innovation

People Changing
Development Mindset
25

Successful Organic Innovation at 3M

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Changing Mindset

Organic
Innovation

People Changing
Development Mindset
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Changing Mindset:
Grassroots vs. Top-Down Philosophies

Vision Challenge Support
Top-Down Grassroots

Management Inspires
Management Inspires Management and Engages
Participatory and Challenges Employees Employees, Bringing
Experimentation Values to Innovate and Take out their Energy and
Responsibility Helping Them Grow

Management Supports
Management Employees By
Management Defines a Challenges Employees Allocating the
Clear, Deliberate and to Implement and Resources they Need to
Bold Strategy Execute the Company’s Implement the
Strategy Company’s Strategy
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Developing People

Organic
Innovation

People Changing
Development Mindset
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Grassroots Innovation Programs:
Developing Your Employees

Unique Learning and Motivate Staff to
Skill Development Coaching Opportunities Raise Their Own Baby

Your Staff Helps You Define Promote Networking Reward and Support Your
the Future of Your Firm and Relationship Building Most Innovative Employees
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Grassroots Innovation:
Create Passionate New Leaders

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How to Implement
Grassroots Innovation?

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THE BEST WAY TO GET STARTED
IS TO STOP TALKING AND BEGIN
DOING!

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Grassroots Innovation: A Four-Step
Process of Business Experimentation
1. First, inspire your employees to share their
innovative ideas.
2. Help employees form winning teams
to experiment with their ideas.
3. Identify high-potential teams and build a
business case to support their experiments.

4. Support and launch the most promising ideas.
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Real-World Example of a Grassroots
Innovation Process

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Prof. Dr. Stefan Stremersch

Why not follow me on Twitter? Follow @StStremersch

Innovation is a journey…
…not a destination.
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From Innovation to Incubation: Business Success Through Grassroots Innovation

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From Innovation to Incubation: Business Success Through Grassroots Innovation