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Bearing presentation for upc executive mbi - 2013-05-24

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Presentation on innovation and the dynamics of the market for the Executive MBA class at the Universitat Politecnica de Catalunya in Barcelona, 24 May 2013.

Presentation on innovation and the dynamics of the market for the Executive MBA class at the Universitat Politecnica de Catalunya in Barcelona, 24 May 2013.

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  • Vi som är här är Magnus Penker, Jan Snygg och Jörgen Eriksson.Vi undervisar alla tre vid den tredagarskurs i innovation management som vi ger genom DFK. Datum för kursen är 12-13 oktober samt 27 oktober. Jan Snygg är huvudlärare.Jag vill även nämna att Jan sitter i den svenska kommittén för standardisering av Innovation Management i Europa och deltar i standardiseringen av Innovation Management som ISO-9000 liknande verktyg.
  • Litteraturen visar många vägar till att lyckas med innovation.In search of Excellence – inte samma företag tio år senare
  • Vi som är här är Magnus Penker, Jan Snygg och Jörgen Eriksson.Vi undervisar alla tre vid den tredagarskurs i innovation management som vi ger genom DFK. Datum för kursen är 12-13 oktober samt 27 oktober. Jan Snygg är huvudlärare.Jag vill även nämna att Jan sitter i den svenska kommittén för standardisering av Innovation Management i Europa och deltar i standardiseringen av Innovation Management som ISO-9000 liknande verktyg.

Bearing   presentation for upc executive mbi - 2013-05-24 Bearing presentation for upc executive mbi - 2013-05-24 Presentation Transcript

  • This document is solely for the use of the receiver. No part of it may be circulated, quoted, orreproduced fordistribution outside the receivers organisation without prior written approval from Bearing ConsultingLtd.Innovation and the dynamics of themarketsUniversitat Politécnica de Catalunya, 24 May 24 2013“..because the execution of an idea is always moreimportantthan the brilliance of the thought..”(Harvard Business Publishing – Morgan, Levitt & Maleck – INVEST model)
  • 2Jörgen Eriksson, Founding Partnerin Bearing and adjunct Professor of InnovationManagement at the International University ofMonaco, resides in France and consultsinternationally.Has since 1995 led and participated as expert ina large number of projects related to innovationsystems, business development, restructuringand R&D in Europe, Africa, the Middle East andthe United States.Presenting today
  • 3Places where we have worked
  • 41. Globalisation and Hyper Competition2. Business in Hyper Competitive Markets3. What do we mean with Innovation?4. How can we work with Innovation?5. Corporate Innovation and common gaps6. How to make Corporate Innovation work7. The Innovation NavigatorAgenda
  • 5Two important articlesTodays seminar
  • This document is solely for the use of the receiver. No part of it may be circulated, quoted, orreproduced fordistribution outside the receivers organisation without prior written approval from Bearing ConsultingLtd.Globalisation and Hyper Competition
  • Sub heading7The innovation systemWe live in hypercompetitive globalmarketsHyper competition
  • 8Why hyper competition?• Globalisation – less trade barriers and efficient transport (e.g. containers)• Speed of hyper connected communication and the pace of modernbusiness• Disruptive TechnologiesA new technology that has a serious impact on thestatus quo and changes the way people have beendealing with something, perhaps for decadesSome drivers of hyper competition
  • Sub heading9European Union growth rates since 2001Source: The Economist
  • Sub heading10Worlds fastest growing economiesSource: The Economist
  • This document is solely for the use of the receiver. No part of it may be circulated, quoted, orreproduced fordistribution outside the receivers organisation without prior written approval from Bearing ConsultingLtd.Business in hyper competitive markets
  • 12Corporate world dominanceIn the year 1994, Motorola was world leader in (analogue)mobiles,seven years later Nokia was world leader in (digital) mobiles0%10%20%30%40%50%60%Market shares 1994 Market Shares 2001MotorolaNokia
  • 13From #1 to crises in less than three years…Why ?Nokia share price
  • 14Apple stock price down more than 40%
  • 15“Either you innovate or you’re in commodity hell. If youdo what everyone else does, you have a low-marginbusiness. That’s not where you want to be.”Sam Palmisano, former CEO IBMHyper competition
  • 16“Managing innovation better may be the only way out ofthe abyss called commodity hell”Jeffrey R. Immelt, CEO General ElectricHyper competition
  • This document is solely for the use of the receiver. No part of it may be circulated, quoted, orreproduced fordistribution outside the receivers organisation without prior written approval from Bearing ConsultingLtd.What do we mean with innovation?
  • 18What is Innovation?The literatureis not givingus aconsistentdefinition
  • 19Innovation is creative destruction, whereentrepreneurs combine existing elements innew ways…After Joseph Schumpeter (1883 – 1950)The definition
  • 20En definition...Innovation versus Invention
  • 21Train Car AirplaneInnovation ?”Invention” => Innovation => Effect (Globally)What is Innovation?Innovation can be incremental or disruptive / radical
  • 22Types of innovation
  • This document is solely for the use of the receiver. No part of it may be circulated, quoted, orreproduced fordistribution outside the receivers organisation without prior written approval from Bearing ConsultingLtd.How can we work with innovation?
  • 24Innovation across the business systemProduct &ServicesBusinessModelDelivery &Supply ChainOperationSales &Marketing
  • 25From ―hard‖ to ―soft‖ factors
  • 26Does Harley-Davidson sell motorcycles?
  • 27Does Harley-Davidson sell motorcycles?―…what we sell is the abilityfor a 43-year-old accountantto dress in blackleather, ride through smalltowns and have people beafraid of him―– an HD executive
  • 28The Lego StoryY2000 "Toy of theCentury" byFortune magazineand the BritishAssociation of ToyRetailersY2003 – 2004Huge losses, closeto bankruptcyY2004-03, theowner & CEOKjeld KirkKristiansen decideto go back tobasic!Y2004-10, JørgenVig Knudstorpappointed as newCEO
  • 29The Lego Story The situation 2004Demand decreasing, competition fromgames, movies, merchandisingPoor qualityPoor logisticsSlow in adoptionSimplistic leadership and laid-back cultureSources: HBR, DN, Guardian, BBC, Handouts European Offshoring Summit, (2009, Copenhagen)
  • 30The Lego StoryImprove thebusinessStabilizeoperationsOrganicgrowthRestore thebalance sheetDefineRaison dêtreValue CreatingPartnershipDeliver whatwe promiseDifferentiatedValue ChainConsumer DrivenValue ChainRigid ExecutionPlatform-1800-800200120022002003 2004 2005 2006 2007 2008OperationalProfitMDKYearInnovate ExecuteOffshoring
  • 31Lego – key achievementsClear Raison dêtre: ―we help children learn systematic and creativeproblem solving—a crucial twenty-first-century skill‖Gained consumer insights through ―direct sales to consumers‖through BuiltByMe without competing with existing distributionchannelCo-Branding with strong and selected partners such as Star warsand Harry Potter
  • 32Lego – key achievementsReduced lead time, 45 to 3 days tostoreCost saving through offshoring non-core competenciesA new supplier interfaceQA system in placeOpen Innovation, 120,000 peopleinvolved in external innovation work –DesignByMe, DreamtByMe, BuildByMeCommunity driven approach; the openplatform Mindstorm encouragingcustomers to design and develop their
  • 33Lego total innovation makeoverSupply ChainBusiness ModelMarketingCustomerEngagementServicesBrandProductPartner Model...and LEGO continues to deliver exceptional profitable growth onan oligopolistic/niche and international toy market...Internal InnovationExternal Innovation
  • 34Lego continues to innovateYesterday in California…
  • This document is solely for the use of the receiver. No part of it may be circulated, quoted, orreproduced fordistribution outside the receivers organisation without prior written approval from Bearing ConsultingLtd.Corporate Innovationand common gaps
  • 36The S-curveEmergent Growth MaturePerformance/ValueofferingEffort / TimeBusiness of the future(EXPLORATORY)Ongoing business(EXPLOITATIVE)Source: Tovstiga (2007)
  • 38Siemens Corporate Innovation Process (CIP)
  • 39En definition...Common gaps1. Framework of reference, lack of common terminology2. Heads on competition in market. Limited focus ondifferentiation3. Corporate Culture4. Not allow people time and space to be creative5. Focus only on exploitative business, not exploratory6. Creativity killed by process and procedure7. Too long time to market
  • This document is solely for the use of the receiver. No part of it may be circulated, quoted, orreproduced fordistribution outside the receivers organisation without prior written approval from Bearing ConsultingLtd.How to make corporate innovation work
  • 41Blue Ocean StrategyBlue OceanStrategy (2004)
  • 42Blue Ocean Strategy
  • 43Can You Say What Your Strategy Is?
  • 44StrategyThe successful growth of a business requires the developmentand implementation of a sustainable business strategy.To do this, we use a methodology we call sweet spotanalysis, where the objective is to work out a complete strategystatement in 35 words or less.For a business with several product lines or activities in anumber of different industries, it might be useful to develop oneoverall statement and then specific statements for the variousmain product lines.It is important to develop the strategy statement simple, clearand brief, to ensure that everyone in the business caninternalize and use it as a guiding light.A well-understood statement aligns behavior within thebusiness and allows everyone in the organisation to makeindividual choices that reinforce one another.The process to developing a strategy statement is to start withdefining the Mission and then Values end then defining theVision as the next important step.
  • 45Strategy
  • 46StrategyThe mission statement is your high-minded guiding light and your leastspecific. It spells out the underlying motivation for being in the business inthe first place. Firms in the same business often have the same or similarmission statements.As you work your way down the hierarchy, the statements become moreconcrete, practical, and ultimately unique. No other company will have thesame strategy statement, which defines your competitive advantage.
  • 47StrategyA strategy statement consists of three critical components, including objective, scopeand advantage.1. Any strategy statement must begin with the objective, a definition of the ends thatthe strategy is designed to achieve. ―If you don t know where you are going, anyroad will take you there‖ is an appropriate maxim.2. Since most firms compete in a fairly unbounded landscape, it is also crucial todefine the scope, or domain, being the part of the industry landscape in which thebusiness will operate. What are the boundaries beyond which it will not venture?3. The third component is the competitive advantages, which are the essence ofthe strategy.
  • 48StrategyTo define the above requires some criticaldecisions and trade-offs that cannot easily bereversed. The choice of objective will have aprofound impact.As regards the scope, it encompasses threedimensions: customer offering, geographiclocation and reach and vertical integration.Clearly defined boundaries in these areasshould make it clear to managers whichactivities they should concentrate on and, moreimportant, which they should not do. This willhelp to focus both the business and itsinnovation development.
  • 49StrategyThen, given that sustainable competitiveadvantages are the essence of strategy, itshould be no surprise that competitiveadvantage is the most critical aspect of astrategy statement.Clarity is the point that will help employeesin understanding how they can contributeto its successful execution.The complete definition of a businesscompetitive advantage consists of twoparts.The first is a statement of the customervalue proposition and the second is tocapture the unique activities or thecomplex combination of activities that willallow the business to deliver the customervalue proposition.
  • 50StrategyTo develop the strategy statement, the firststep is to make a careful evaluation of theindustry landscape.This includes developing a detailedunderstanding of customer needs, segmentingcustomers and then identifying the uniqueways of creating value for the ones thebusiness choses to serve.It also calls for an analysis of competitors’current strategies and a prediction of how theymight change in the future.The process must also involve arigorous, objective assessment of the firm’scapabilities and resources and those ofcompetitors.In Bearing we have a product we call theInnovation Navigator that we use to assessan organizations innovation capabilities.
  • 51StrategyThe creative art of developing strategy is findingthe sweet spot that aligns the businesscapabilities with customer needs in a way thatcompetitors (with their current capabilities)cannot match.There would be no point of competing in theintersecting triangle of all three circlesabove(however this is what many companiestend to do, keeping them in a low marginbusiness).The process of developing the strategy and then crafting thestrategy statement that captures its essence in a readilycommunicable manner should involve employees in all parts ofthe business and at all levels of the hierarchy.The wording of the strategy statement should be worked throughin painstaking detail.The end result should be a brief statement with a maximum of 35words that reflects all the three elements of objective, scope andcompetitive advantages.
  • 52Sweetspot analysisCustomers’needsCompetitors’offeringsCompany’scapabilitiesSweetSpotContext(technology, industry, regulatory, etc.)Where your firm meetscustomers needs in away in which yourcompetitors cannotWhat?Where?Why?How?123Sweet spot = unique spotHow to protect/define boundary 1,2,3llis & Rukstad (2008). Can You Say What Your Strategy Is?, HBR (April 2008)
  • 53Your Sweet Spot Defines Your Future SuccessCustomers’needsCompetitors’offeringsCompany’scapabilitiesSweetSpotContext(technology, industry, regulatory, etc.)Where your companymeets customersneeds in a way inwhich your competitorscannotWhat?Where?Why?How?123Sweet spot = unique spotHow to protect/define boundary 1,2,3llis & Rukstad (2008). Can You Say What Your Strategy Is?, HBR (April 2008)FirstDIFFERENTIATEfrom competitors
  • 54Your Sweet Spot Defines Your Future SuccessCustomers’needsCompetitors’offeringsCompany’scapabilitiesSweetSpotContext(technology, industry, regulatory, etc.)Where your companymeets customersneeds in a way inwhich your competitorscannotWhat?Where?Why?How?123Sweet spot = unique spotHow to protect/define boundary 1,2,3llis & Rukstad (2008). Can You Say What Your Strategy Is?, HBR (April 2008)THEN expand border 3 northtoward customer needs
  • 55Innovation CapabilitiesInnovation Capabilities- Determines how well you will succeed with your innovation effortsExamples:• Personas• Knowledge• Team structure• Tools• Processes.The most successful companies are those that focus ona particular, narrow set of common and distinctcapabilities that enable them to better execute theirchosen strategy.
  • 56The 12 Different Ways for Companies to Innovate
  • 57The Innovation RadarWolcott, Lippitz, ―Grow from Within‖
  • 58OfferingsOfferings are a firm’s products and services.Innovation along this dimension requires the creation of new productsand services that are valued by customers.
  • 59PlatformA platform is a set of common components, assembly methods ortechnologies that serve as building blocks for a portfolio of products orservices.Platform innovation involves exploiting the ―power of commonality‖ —using modularity to create a diverse set of derivative offerings morequickly and cheaply than if they were stand-alone items.Innovations along this dimension arefrequently overlooked even thoughtheir power to create value can beconsiderable.
  • 60SolutionsSolutions A solution is a customized, integrated combination ofproducts, services and information that solves a customer problem.Solution innovation creates value for customers through thebreadth of assortment and the depth of integration of the differentelements.
  • 61CustomersCustomers are the individuals or organizations that use or consumea company’s offerings to satisfy certain needs.To innovate along this dimension, the company can discover newcustomer segments or uncover unmet (and sometimes unarticulated)needs.Compare – Blue Ocean Strategy
  • 62Customer ExperienceCustomer Experience This dimension considers everything a customersees, hears, feels and otherwise experiences while interactingwith a company at all moments.To innovate here, the company needs to rethink the interface betweenthe organization and its customers.
  • 63Value CaptureValue Capture refers to the mechanism that a company uses torecapture the value it creates.To innovate along this dimension, the company can discover untappedrevenue streams, develop novel pricing systems and otherwise expandits ability to capture value from interactions with customers and partners.
  • 64ProcessesProcesses are the configurations of business activities used toconduct internal operations.To innovate along this dimension, a company can redesign its processesfor greater efficiency, higher quality or faster cycle time. Such changesmight involve relocating a process or decoupling its front-end from itsbackend.
  • 65OrganizationOrganization is the way in which a company structures itself, itspartnerships and its employee roles and responsibilities.Organizational innovation often involves rethinking the scope of the firm’sactivities as well as redefining the roles, responsibilities and incentives ofdifferent business units and individuals.
  • 66Supply ChainSupply Chain A supply chain is the sequence of activities andagents that moves goods, services and information from sourceto delivery of products and services.To innovate in this dimension, a company can streamline the flow ofinformation through the supply chain, change its structure or enhance thecollaboration of its participants.
  • 67PresencePresence Points of presence are the channels of distribution thata company employs to take offerings to market and the placeswhere its offerings can be bought or used by customers.Innovation in this dimension involves creating new points of presence orusing existing ones in creative ways.
  • 68NetworkingNetworking A company and its products and services are connectedto customers through a network that can sometimes become part of thefirm’s competitive advantage.Innovations in this dimension consist of enhancements to the networkthat increase the value of the company’s offerings.
  • 69BrandBrand are the symbols, words or marks through which a companycommunicates a promise to customers.To innovate in this dimension, the company leverages or extends itsbrand in creative ways.
  • 70The twelve dimensions of innovation
  • This document is solely for the use of the receiver. No part of it may be circulated, quoted, orreproduced fordistribution outside the receivers organisation without prior written approval from Bearing ConsultingLtd.The Innovation Navigator Framework
  • 72...the navigatorBearing Innovation NavigatorInitiated by the work of Sawhney, M., Wolcott, R. C., & Arroniz, I. (2006). The 12 Differetnt Ways for Companies toInnovate. MIT Sloan Management Review , 75-81.
  • 73ComparisonsBearing Innovation Navigator
  • 74Innovation frameworkWhyStrategic questionProfit / Market shareCompany Strategy•Incremental/Disruptive•Need seekers•Market readers•Technology driversWhatType of innovationProduct InnovationProcess InnovationOrganisational InnovationManagement InnovationProduction InnovationCommercial/MarketingInnovationService InnovationHowStyle•Cauldron•Spirale•Fertile•PacMan•ExplorerPeople•10 Faces of InnovationCapability & Process•Ideation•Project selection•Product development•CommercialisationSource: Penker (2011)
  • 75Why – Strategic Question?StrategicQuestionIncrease barriers to enter or copyDifferentiation and neutralization ofcompetitorsFocus on competitive advantagesBuilding the capabilities to increasethe internal efficiencyCost savingsDisruptive opportunitiesTo keep competitorsout keeping/gainingmarket shares?To increase the profit ?
  • 76How – Style & People―The Devil´s Advocate may never go away, but on a good day, the tenpersonas can keep him in place‖ (Kelly & Littman, 2005)Source: Kelly & Littman (2005)LearningpersonasAnthropologistExperimenterCross-PollinatorOrganisationalpersonasHurdlerCollaboratorDirectorBuildingpersonasExperienceArchitectSet DesignerStorytellerCaregiver
  • 77What – Types of Innovation• Creating or reinventing the business in itselfBusiness model• Changing the organisational structure, in its businesspractice, workplace organisation or external relationsOrganisationalstructure• Creation of better or more efficient internal processesProcesses• Improve the production stream and business methodsProduction• Development of new or improved productsProducts• Development of new or improved servicesServices• Development or implementation of more efficient orbetter management systemsManagementsystems
  • 784. Cultural ManagementExample of a Cultural Management process:Define thecultureneeded tosupportlong termsuccess‖DesiredCulture‖Identify thecurrentcultureIdentify andanalysegapsbetweenthe currentculture anddesiredcultureDevelop aculturemanagement planImplementandcommunicateMonitor theprocess
  • 79Innovation style• An entrepreneurialstyle where thebusiness model isconstantly challengingand is frequentlychallengedThe Cauldron• A style where you areconstantly innovatingthe existing businessand it over timechanges its nature.While it seems to stayin the same place.The SpiralStaircase• A style where theorganisation tries touse existingcapabilities andresources in a newway beyond thecompany’s existingoperations.The Fertile Field• A style where youinvest in start ups thathave already donethe strategydevelopment andR&DThe PacMan• A style where youexplore possibilitiesand invest time andmoney in themwithout demandingshort-term profitThe ExplorerSource: Loewe, Williamson and Wood(2001)
  • 80The Innovation PersonasSource: Kelly and Littman (2005)The world is changing at an acceleratingspeed and these personas are needed tohelp teams from becoming too internallyfocused.LearningPersonas• The Anthropologist• The Experimenter• The Cross-PollinatorEnables the ideas to move forward in theorganisation as even the best ideas mustcompete got time, attention andresources.The OrganisingPersonas• The Hurdler• The Collaborator• The DirectorThe building roles apply insights from thelearning roles and channel theempowerment from the organising rolesto make innovation happen.The BuildingPersonas• The Experience Architect• The Set Designer• The Storyteller• The Caregiver
  • 81How – Capabilities & ProcessIdeationSupplier anddistributorengagement inideation processIndependentcompetitive insightsfrom the marketplaceOpeninnovation/capturingideas at any point inthe processDetailedunderstanding ofemergingtechnologies andtrendsDeep consumer andcustomer insights andanalyticsProjectSelectionStrategic disruptiondecision making andtransition planTechnical riskassessment/managementRigorous decisionmaking aroundportfolio trade-offsProject resourcerequirementforecasting andplanningOngoing assessmentof market potentialProductDevelopmentReverse engineeringSupplier–partnerengagement inproduct developmentDesign for specificgoalsProduct platformmanagementEngagement withcustomers to provereal-world feasibilityCommercializationDiverse user groupmanagementProduction ramp-upRegulatory/government relationshipmanagementGlobal, enterprise-wide product launchProduct life-cyclemanagementPilot-userselection/controlledrolloutsSource: Jaruzelski & Dehoff (2010)
  • This document is solely for the use of the receiver. No part of it may be circulated, quoted, orreproduced fordistribution outside the receivers organisation without prior written approval from Bearing ConsultingLtd.Innovation Navigator project for Polyamp
  • Innovation Navigator project for Polyamp
  • 84Client Involvement•In-depth interviews interviews with key stakeholders•Survey: Capturing imperatives of the business, scopingthe case•Survey: Capture strategies, weaknesses, marketstructures, key drivers•Internal and external communication / enrolment•Presentation with recommendationsAnalysis process•Hypothesis•Internal and external data collection (survey)•Generating relevant benchmark data and innovationpatterns•Analysis•Strategic options generation•Evaluation and conclusions•RecommendationsInnovation Navigator project process
  • 85CEO MeetingInnovationAudit (4weeks)Presentation &Recommendation(1/2 day)ImplementInnovationGame Plan(30-60weeks)6-8 weeksNext step
  • Incremental need seeking, explorer stylefirm, innovating products, production andprocesses to increase market share.Polyamp Innovation Navigator classification
  • 87Innovation frameworkWhyStrategic questionProfit / Market shareCompany Strategy•Incremental/Disruptive•Need seekers•Market readers•Technology driversWhatType of innovationProduct InnovationProcess InnovationOrganisational InnovationManagement systemInnovationProduction InnovationService InnovationBusiness modelHowStyle•Cauldron•Spirale•Fertile•PacMan•ExplorerPeople•10 Faces of InnovationSource: Penker (2011)
  • 88Strategic Question?StrategicQuestionIncrease barriers to enter or copyDifferentiation and neutralization ofcompetitorsFocus on competitive advantagesBuilding the capabilities to increasethe internal efficiencyCost savingsDisruptive opportunitiesTo keep competitorsout keeping/gainingmarket shares?To increase the profit ?
  • 89Innovation StrategyNeed seekers• Actively and directlyengage current andpotential customers toshape new products andservices based onsuperior end-userunderstanding, and striveto be the first to marketwith those new offerings.Market readers• Watch their customersand competitorscarefully, focusing largelyon creating value throughincremental change andby capitalizing on provenmarket trends.Technology drivers• Follow the directionsuggested by theirtechnologicalcapabilities, leveragingtheir investment inresearch anddevelopment to drive bothbreakthrough innovationand incrementalchange, often seeking tosolve the unarticulatedneeds of their customersvia new technology.Source: Jaruzelski and Dehoff (2007)
  • 90Type of Innovation• Incremental innovations – Changes made in small stepsvs.• Disruptive innovations – Radical changesIncremental vs. Disruptive
  • 91Dimensions of Business Innovation• Creating or reinventing the business in itselfBusiness model• Changing the organisational structure, in its businesspractice, workplace organisation or external relationsOrganisationalstructure• Creation of better or more efficient internal processesProcesses• Improve the production stream and business methodsProduction• Development of new or improved productsProducts• Development of new or improved servicesServices• Development or implementation of more efficient orbetter management systemsManagementsystems
  • 92Innovation style• An entrepreneurialstyle where thebusiness model isconstantly challengingand is frequentlychallengedThe Cauldron• A style where you areconstantly innovatingthe existing businessand it over timechanges its nature.While it seems to stayin the same place.The SpiralStaircase• A style where theorganisation tries touse existingcapabilities andresources in a newway beyond thecompany’s existingoperations.The Fertile Field• A style where youinvest in start ups thathave already donethe strategydevelopment andR&DThe PacMan• A style where youexplore possibilitiesand invest time andmoney in themwithout demandingshort-term profitThe ExplorerSource: Loewe, Williamson and Wood(2001)
  • 93Innovation CapabilitiesInnovationCapabilities- Determines how well youwill succeed with yourinnovation effortsThe most successful companies are those that focuson a particular, narrow set of common and distinctcapabilities that enable them to better execute theirchosen strategy.Examples: personas, knowledge, teamstructure, tools, and processes
  • 94Innovation CapabilititesProducts:•Polyamp has a documented process in place to design, testand launch new products.•Innovates products.•Innovates production and logistics.Processes:•Polyamp has effective product management systems in place.•There is a testing methodology in place so that errors areidentified and addressed early in the process.Learning Capabilities:•Employees learn from each other and the customers.•The organisation learns from its mistakes.Perceived Strengths
  • 95Innovation CapabilititesOrganisation:•Lack of goal-oriented leadership style.•There is no internal reward system in place for the innovationwork.•Polyamp does not have a systematic way of looking for newtalent that can contribute to its development.Learning Capabilities:•Polyamp does not measure and systematically evaluate itsinnovation efforts.Customers:•There are no anthropologists in the company, i.e. there is noone studying customers actual behaviour. Also, there are noindependent market research taking place.Possible Weaknesses
  • 96Innovation CapabilitiesThere are ten typical personas needed to drive creativity through anorganisation. The idea behind The 10 Faces of Innovation is to create aclimate and culture stimulating innovative working, from idea to results. Oneperson might have one or several personas and the important thing is to makesure all profiles are present within an organisational context to stimulate andsupport the innovation processes.IDEO’s10 Faces of Innovation
  • 97TheAnthropologistThe ExperimenterThe Cross-PollinatorThe HurdlerTheCollaboratorThe DirectorThe ExpertenceArchitectThe Set DesignerThe StorytellerThe Caregiver10 FacesInnovation CapabilitiesWe are all a blend of personas (or roles) where some can be stronger thanothers…
  • 98The 10 Faces of InnovationThe world is changing at an accelerating speed and thesepersonas are needed to help teams from becoming too internallyfocused.Learning Personas• The Anthropologist• The Experimenter• The Cross-PollinatorEnables the ideas to move forward in the organisation as even thebest ideas must compete got time, attention and resources.The OrganisingPersonas• The Hurdler• The Collaborator• The DirectorThe building roles apply insights from the learning roles andchannel the empowerment from the organising roles to makeinnovation happen.The BuildingPersonas• The Experience Architect• The Set Designer• The Storyteller• The CaregiverSource: Kelly and Littman (2005)
  • 99The AnthropologistThe Anthropologist• Brings new learning and insights into theorganisation by observing human behaviour anddeveloping a deep understanding of how peopleinteract physically and emotionally withproducts, services and spaces.• Practices the principle of ‖beginner’s mind‖ andare able to observe with an open mind.• Embraces human behaviour and empathizewithout judgement.• Listens to their intuition.• Writes down things that surprises them.• Looks for insights where they are least expected.Typical anthropologists:- Background in Social science, such aspsychology, linguistics and anthropology.- People with informed intuition or ‖deep smarts‖.The real act of discovery consists notin finding new lands, but seeing withnew eyes.- Marcel Proust
  • 100The Cross-PollinatorLeave the beaten trackoccasionally and dive into thewoods. Every time you doso, you will be certain to findsomething that you havenever seen before.– Alexander Graham BellEncourage cross-pollination by:• Hires people with diversebackgrounds.• Uses the work space to formmultidisciplinary teams.• Takes inspiration from outside thinkersand ‖know how‖ speakers.• Looks for the t-shaped people; thosewho have a breadth of knowledge inmany fields and in depth expertise inat least one area.The Cross-Pollinator• Explores other industries andcultures, then translates those findingsand revelations to fit the unique needs oftheir organisation.• Can create something new and betterthrough the unexpected juxtaposition ofseemingly unrelated ideas or concepts.
  • 101The HurdlerThe Hurdler• Knows the path to innovation is strewn withobstacles and develops a knack for overcomingor outsmarting those roadblocks.• Gets a charge out of trying to do something thathas never been done before.We choose to go to themoon in this decade anddo the other things, notbecause they areeasy, but because theyare hard.- John F. Kennedy5/25/61• Does more with less.• Risk-takers that show determination.• Their optimism and perseverance can help bigideas upend the status quo as well as turnsetbacks into an organisations greatestsuccesses.
  • 102The DirectorThe Director• Not only gathers together a talented castand crew but also helps to spark theircreative talents.• Maps out the production and brings outthe best in people.• Gets things done.• Gives centre stage to others.• Gladly step up and lead when needarises, love finding new projects.• Rises to tough challenges.• Lays out goals that may seem impossibleto achieve and shoots for the moon.• Embraces the unexpected.I dream for aliving.- Steven Spielberg
  • Incremental need seeking, explorer stylefirm, innovating products, production andprocesses to increase market share.Polyamp Innovation Navigator classification
  • 104Navigator Footprint
  • 105Navigator FootprintCustomers = redInternal = green
  • 106Navigator FootprintCustomers Sweden= redCustomers interntaional=green• International customers see a lack of productdevelopment• International and Swedish customers agree thatPolyamp could be better at clarifying its advantage over
  • 107Navigator FootprintEmployees = redManagement =green
  • 108INNOVATE – EXECUTE™… the world will never be the same
  • 109Bearing on the webBearing has a blog withan active debateblog.bearing-consulting.comRead more about what wedo on the Bearing homepagewww.bearing-consulting.com