The Myth of Innovation - Strategies for Corporate Survival

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Mature organizations, confronted with their lack of innovative capabilities, readily turn to standard recipes. In an effort to create a quick fix, they blindly follow the core myths about innovation.

Creating a sustainable stratgegy for survival requires an integral approach though, one that looks beyond technological innovation and includes the systemic dimensions of the oranization's social fabric.

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  • The idea of grassrootsinnovation, where the whole of a firmbecomesaninnovationecosystem, is not a new concept. Alsonot new is the utter failure of most firmstocreateanymeaningfulinnovationcapability, let aloneonethatexistsenterprise-wide. Iffirmswouldaddress the structuresand the innovation-chillingexamples of leadershipby policy – the overhead andbureaucracyassociatedwith large firmscouldyieldto a culture that is notonlywillingto change itself, but entireindustries.
  • The myth of epiphany. Few mention the millions of “epiphanies” people have had that ended in years of failure. We love stories of flashes of insight and they dominate how creativity is reported. Epiphany stories project illusions of certainty since they’re always about successful ideas. Epiphanies are a consequence of effort, not just the inspiration for it. When you hear a story about a flash of insight, the useful questions to ask are 1) how much time the creator spent working before the flash happened and 2) how much work they did after to make the idea successful. An epiphany doesn’t find investors, make prototypes, sacrifice free time or persist in the face of rejection: only you can do that and you’ll have to do it without a guarantee of success.
  • Red MonkeysCopying GoogleTrainingSeparate innovationfunctionHR Systems: perfevaluation 1 kpi’s
  • The Myth of Innovation - Strategies for Corporate Survival

    1. 1. THE MYTH OF INNOVATION STRATEGIES FOR CORPORATE SURVIVAL Benny Corvers 25 March 2014
    2. 2. 2 CLIENT Market, Sell, Design, Produce & Deliver IN THE BEGINNING, THERE WAS A START-UP
    3. 3. 3 CLIENT Market, Sell, Design, Produce & Deliver IT ATTRACTED MANY CLIENTS
    4. 4. 4 CLIENT LOADS OF CLIENTS, ACTUALLY … Market, Sell, Design, Produce & Deliver
    5. 5. 5 TIME FOR OUR FIRST NEW HIRE!
    6. 6. 6 CLIENT SO ADMIN SUPPORT SHOULD DO THE TRICK FOR NOW Market, Sell, Design, Produce & Deliver Admin
    7. 7. 7 CLIENT THEN WE DECIDED TO SPLIT SALES & OPERATIONS Sales & Marketing Admin Design, Production & Transport
    8. 8. 8 CLIENT BUT THOSE DAMN CLIENTS KEPT COMING … Sales & Marketing Admin Design, Production & Transport
    9. 9. 9 TIME FOR OUR SECOND HIRE!
    10. 10. 10 CLIENT SO WE ADDED OUR FIRST MANAGEMENT LAYER Sales & Marketing Admin Design, Production & Transport Sales Management
    11. 11. 11 CLIENT THEN WE SPLIT UP OPERATIONS Sales & Marketing Admin Design Sales Management Production & Transport
    12. 12. 12 CLIENT AND WE ISOLATED MARKETING FROM SALES Sales Admin Design Sales Management Marketing Production & Transport
    13. 13. 13 AND WHY NOT CREATE A SPECIALIZED PRESALES UNIT? Sales Admin Design Sales Management Production & Transport Marketing Presales
    14. 14. 14 NOW WE NEED SOMEONE TO TACKLE THE COMPLEXITY Sales Admin Design Sales Management Production & Transport Marketing Presales Operations Manager
    15. 15. 15 WHO STARTED BY CREATING TWO MORE UNITS Sales Admin Sales Management Design TransportMarketing Presales Production Operations Manager
    16. 16. 16 AND ALSO THE SUPPORT DEPARTMENT KEPT GROWING Sales Admin Sales Management Design TransportMarketing Presales Production Operations Manager Invoicing
    17. 17. 17 EVEN THE OPERATIONS NOW NEED SUPPORT STAFF Sales Admin Sales Management Design TransportMarketing Presales Production Operations Manager Invoicing Quality Warehouse
    18. 18. 18 IN THE END, IT WAS CLEAR WE LACKED LEADERSHIP
    19. 19. 19 SO WE ADDED SOME BIG HONCHOS ON TOP Admin Design Sales Director TransportMarketing Presales Supervisor Production Invoicing Quality Warehouse CTO COOCEO Sales
    20. 20. 20 WE ARE NOW LOSING SIGHT OF OUR CLIENT
    21. 21. 21 OUR ORGANIZATION HAS BECOME TERRIBLY COMPLEX
    22. 22. 22 AND WE ARE ALL LOCKED UP IN OUR FUNCTIONAL SILOS
    23. 23. 23 THE END RESULT? WE ARE LOST …
    24. 24. 24 HOW CAN WE BECOME MORE ‘INNOVATIVE’? TEN ‘PROVEN’ RECIPES #1 Change the company culture #2 Hire an Innovation Manager #3 Set up an Innovation Board #4 Provide some funding #5 Create a spin-off or acquire a start-up #6 Set up an innovation pipeline #7 Roll-out a training program #8 Kick-in new incentives #9 Set up co-creation initiatives #10 Start from #1
    25. 25. 25 MYTH #1: IT’S A BIG BANG
    26. 26. 26 INCEPTION ORGANIZATIONAL LIFE CYCLES TIME SALESVOLUME GROWTH MATURITY DECLINE * Source: Smith et al. (1985)
    27. 27. 27 MYTH #2: IT’S ABOUT LUCKY SHOTS
    28. 28. 28 TRENDS GAZELLEN ARE NO LUCKY SHOTS Actions Difference New methods for producing/delivering products or services +6% Logistics innovation +28% Technological innovation +6% Organization design +15% Human resources management +19% * Source: Hendrik Delagrange (2011) - SERV
    29. 29. 29 MYTH #3: IT’S ABOUT CULTURE
    30. 30. 30 MYTH #4: IT’S ABOUT YOUNG PEOPLE AND START-UPS
    31. 31. 31 MYTH #5: IT’S ABOUT TECHNOLOGY Technology Innovation Social Innovation Technological knowledge Investment in ICT Research & Development Knowledge creation Management knowledge Investment in education Organization & Collaboration Acquire, integrate and apply new knowledge Explains 25% of innovation success Explains 75% of innovation success * Source: Henk Volberda, Erasmus University Rotterdam (2013)
    32. 32. 32 FIVE MYTHS OF INNOVATION INNOVATION It’s a big bang It’s about lucky shots It’s about Culture It’s only for start-ups It’s about Technology
    33. 33. 33 CLIENT SO HOW CAN WE GET BACK TO THE EARLY DAYS? Market, Sell, Design, Produce & Deliver Clients take center stage A simple and transparent organization Efficiency and low overhead cost Agility to change course
    34. 34. 34 FIGHTING THE FANATIC FRACTIONALIZATION OF FUNCTIONS FUNCTIONAL STRUCTURE Function 1 F2 Fn… FLOW BASED STRUCTURE Client Order 1 O2 On …
    35. 35. 35 WITH SELF-ORGANISING MULTI-DISCIPLINARY TEAMS CLIENT PROSPECTING ACCOUNT MANAGEMENT BUSINESS ADVISORY SKILLS PRESALES EXPERTISE PRICING KNOWLEDGE TECHNICAL WRITING SKILLS OPERATIONS EXPERTISE HR EXPERTISE
    36. 36. 36 IN AUTONOMOUS CLIENT-FOCUSED MINI-COMPANIES LARGE ACCOUNT MANAGER MARKETING SPECIALIST BUSINESS CONSULTANT PRESALES CONSULTANT PRODUCT MANAGER HR SPECIALIST ACCOUNT MANAGERS MARKETING SPECIALIST BUSINESS CONSULTANT TECHNICAL WRITER QUALITY MANAGER FINANCE SPECIALIST LARGE ACCOUNT MANAGER ACCOUNT MANAGERS BUSINESS CONSULTANT PRESALES CONSULTANT LEGAL OFFICERS BUDGET & CONTROL SPECIALIST STREAM A STREAM B STREAM C
    37. 37. 37 WITH MORE ENGAGEMENT AND MOTIVATION JOB CONTROL JOB DEMANDS LOW-STRAIN JOBS ACTIVE JOBS HIGH-STRAIN JOBS PASSIVE JOBS MOTIVATION & LEARNING STRESS * Source: Karasek, 1979
    38. 38. 38 Client-Centric Organization THE END RESULT Ownership Motivation Agility Reduced Complexity Better Coordination CLIENT
    39. 39. 39 THE IMPLICATIONS FOR IT DEPARTMENTS CLIENT Client-Centric Organization Enabling horizontal coordination Catering for Diversity Let people focus on the primary process Supporting Client Centricity
    40. 40. 40 MORE ABOUT WORKPLACE INNOVATION
    41. 41. 41 IT CAN BE DONE …

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