K6201 Scholarly Paper Presentation<br />By Group #16:<br />GU QIQI (RACHEL)<br />MAO YANLAN (ELAINE)<br />ANG HUN BEET (EL...
Defining Innovation<br />Innovation is a complex series of activities beginning at “first conception”, when the original i...
Defining Innovation<br />Benefits of Innovation<br />Cost reduction for goods in widespread use.<br />Development of entir...
Example #1: SegwayPT<br />4<br />
Example #2: The Shipping Container<br />5<br />
Innovation Embedment<br />The concept of embedment is analogous to the institutionalization of a core competency.<br />Pra...
Innovation Embedment<br />Training vs Embedment<br />7<br />
Innovation Embedment<br />What does that mean to Whirlpool?<br />Embedment refers to a wide range of actions that assimila...
Introduction<br />End of Era …<br />At the end of 20th century<br />New levels of expectations to create share holders val...
Introduction<br />Removing Barriers with Innovation<br />Barriers to address:<br />Barrier 1: Long product life cycles.<br...
Introduction<br />What is Innovation?<br />Any product or service that creates unique compelling solutions valued by their...
Introduction<br />The Beginning of Innovation at Whirlpool<br />Seeking Models and Partners<br />With no models among othe...
Introduction<br />To Take their Own Journey<br />Lack of literature to support the need for innovation embedment.<br />Str...
Introduction<br />The Whirlpool’s Organizational Structure<br />Chairman and CEO<br />Global VP of Innovation<br />Strateg...
The Embedment Wheel<br />Source: © 2002 Whirlpool Corporation. All rights reserved.<br />15<br />
Vision and Goals<br />Whirlpool&apos;s Enterprise-Wide and Innovation Visions<br />16<br />
Vision and Goals<br />The Five CFPM Whirlpool Statements<br />Enterprise-Wide Vision<br />Every Home . . . Everywhere<br /...
Vision and Goals<br />The Five CFPM Whirlpool Statements<br />Strategy<br />Branded Solutions That Build Consumer Loyalty<...
Vision and Goals<br />The Five CFPM Whirlpool Statements<br />Organization Structure and Decision Making<br />Open. Flat. ...
Vision and Goals<br />Goal Trilogy<br />Innovation Embedment<br />Goal Trilogy<br />Results<br />Goals<br />Embedment<br /...
Vision and Goals<br />Result Goals<br />The amount of new revenue generated from innovation<br />The number of projects in...
Vision and Goals<br />Embedment Goals<br />The amount in seed funds set aside and used to fund innovation projects<br />Th...
Vision and Goals<br />Individual Goals<br />Number or percentage of people in your work group who can describe how innovat...
Leader Accountability & Development<br />Innovation at the Top Leadership Level<br />24<br />
Leader Accountability & Development<br />Leaders&apos; Behavior and Cultural Change<br />Co-Creation<br />Time and Space f...
Leader Accountability & Development<br />Developing Leaders&apos; Innovation Skills<br />Leadership Education and Training...
Culture and Values<br />Edward Schein (1992), defined organizational culture<br />“a pattern of shared basic assumptions t...
Culture and Values<br />Cultural and Values Descriptions of Whirlpool<br />28<br />
Culture and Values<br />Cultural and Values Descriptions of Whirlpool<br />29<br />
Culture and Values<br />Cultural Change and the Embedment Wheel<br />Vision<br />Leader Systems<br />Resources<br />Knowle...
Resource Creation<br />Creation vs Allocation<br />31<br />
Resource Creation<br />Resource Creation<br />Funding<br />Communiqué<br />People Talent<br />32<br />
Knowledge Mgmt & Learning Systems<br />Knowledge Management Efforts<br />I-Pipe<br />33<br />
Knowledge Mgmt & Learning Systems<br />Knowledge Management Efforts<br />Innovation E-Space<br />34<br />
Knowledge Mgmt & Learning Systems<br />Developing Knowledge Management<br />Knowledge Management Team<br />Knowledge Manag...
Knowledge Mgmt & Learning Systems<br />Common Knowledge Management Definitions<br />Knowledge Management (KM)<br />KM is t...
How do we acquire that knowledge?
How is that knowledge stored?
How it is distributed, shared and re-used to create leverage or new knowledge?
KM has a human as well as the technical side.</li></ul>Types of Knowledge<br />There are two types of knowledge: explicit ...
Tacit information is what people cannot easily tell you. Tacit knowledge includes: know-how, judgment, routines, experienc...
Knowledge Mgmt & Learning Systems<br />Common Knowledge Management Definitions<br />Experts<br />People in the organizatio...
Strat. Communications & Change Mgmt<br />Path of Change Management<br />38<br />
Strat. Communications & Change Mgmt<br />Path of Change Management<br />39<br />
Strat. Communications & Change Mgmt<br />Path of Change Management<br />Change at Individual Level<br />Formal Dimension<b...
Strat. Communications & Change Mgmt<br />Path to Strategic Communications<br />Corporate Communications<br />Innovation Da...
Rewards & Recognition<br />The Power of Intrinsic Rewards<br />Individual Reward Programs<br />Getting Asked to the Party<...
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Book Review Strategic Innovation Embedding Innovation As A Core Competency In Your Organization

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Book Review Strategic Innovation Embedding Innovation As A Core Competency In Your Organization

  1. 1. K6201 Scholarly Paper Presentation<br />By Group #16:<br />GU QIQI (RACHEL)<br />MAO YANLAN (ELAINE)<br />ANG HUN BEET (ELVIN)<br />Strategic Innovation: Embedding Innovation as a Core Competency in Your Organization<br />
  2. 2. Defining Innovation<br />Innovation is a complex series of activities beginning at “first conception”, when the original idea is conceived; proceeding through a succession of interwoven steps of research, development, engineering, design, market analysis, management decisions making, etc.; and ending at “first realization”, when an industrially successful “product”, which may actually be a thing, a technique, or a process, is accepted in the market place.<br />Battelle, 1973, p. 1<br />2<br />
  3. 3. Defining Innovation<br />Benefits of Innovation<br />Cost reduction for goods in widespread use.<br />Development of entirely new goods and services.<br />Powell & Snellman, 2004, p. 202<br />3<br />
  4. 4. Example #1: SegwayPT<br />4<br />
  5. 5. Example #2: The Shipping Container<br />5<br />
  6. 6. Innovation Embedment<br />The concept of embedment is analogous to the institutionalization of a core competency.<br />Prahalad and Hamel (1990) wrote about core competency creation especially stress that sustaining core competencies for the long run is critical to creating value.<br />6<br />
  7. 7. Innovation Embedment<br />Training vs Embedment<br />7<br />
  8. 8. Innovation Embedment<br />What does that mean to Whirlpool?<br />Embedment refers to a wide range of actions that assimilate, incorporate, internalize, and imbue the entire fabric or lifeblood of an organization with the mind-set and skills of innovation.<br />8<br />
  9. 9. Introduction<br />End of Era …<br />At the end of 20th century<br />New levels of expectations to create share holders value<br />Whirlpool’s CEO & Executive Committee vision<br />Through long-term strategy focusing on customer loyalty<br />9<br />
  10. 10. Introduction<br />Removing Barriers with Innovation<br />Barriers to address:<br />Barrier 1: Long product life cycles.<br />Barrier 2: Indirect customers.<br />Barrier 3: The mental of customers.<br />10<br />
  11. 11. Introduction<br />What is Innovation?<br />Any product or service that creates unique compelling solutions valued by their customers, real and sustainable competitive advantages, and extraordinary value for their shareholders.<br />Innovation should create a clear linkage to their customer loyalty mission, drive breakthrough levels of thinking, and include a wide scope of work from core products to new-to-the-world offerings.<br />Must drive a reallocation of their resources to be more focused on their strategic objectives.<br />11<br />
  12. 12. Introduction<br />The Beginning of Innovation at Whirlpool<br />Seeking Models and Partners<br />With no models among other organizations, they sought a consultant.<br />Concepts categorized from suggested consultants are,<br />Great Man Theory<br />Skunkworks<br />Creativity and Games<br />Technology<br />Strategy (re)Formulation<br />Product Bells and Whistles<br />Training and More Training<br />12<br />
  13. 13. Introduction<br />To Take their Own Journey<br />Lack of literature to support the need for innovation embedment.<br />Strategos was the consultant<br />They did not want a long-term relationship with Whirlpool and would not create consultant dependency.<br />They admitted that they did not have all the answers.<br />They wanted to work with Whirlpool to discover new ways to embed innovation.<br />Strategos&apos; Approach<br />Refreshing approach put the emphasis on learning for ourselves (Whirlpool).<br />Creating a systemic approach to embedment that would become self-sustaining.<br />13<br />
  14. 14. Introduction<br />The Whirlpool’s Organizational Structure<br />Chairman and CEO<br />Global VP of Innovation<br />Strategos (external consultants to VP and I-Teams)<br />Global Director, KM<br />Latin America Regional VP/GM of Innovation<br />Latin America Regional VP/GM of Innovation<br />Latin America Regional VP/GM of Innovation<br />KM Manager<br />KM Manager<br />KM Manager<br />I-Board Senior Leaders from Latin America<br />I-Board Senior Leaders from Latin America<br />I-Board Senior Leaders from Latin America<br />14<br />
  15. 15. The Embedment Wheel<br />Source: © 2002 Whirlpool Corporation. All rights reserved.<br />15<br />
  16. 16. Vision and Goals<br />Whirlpool&apos;s Enterprise-Wide and Innovation Visions<br />16<br />
  17. 17. Vision and Goals<br />The Five CFPM Whirlpool Statements<br />Enterprise-Wide Vision<br />Every Home . . . Everywhere<br />Our vision proposes a higher order of purpose: Every home is our domain . . .<br />every consumer and consumer activity our opportunity. This vision will fuel the<br />passion that we will develop for our consumers. This means not just building<br />white boxes . . . but rather providing a wide range of innovative solutions that<br />uniquely meet our customers&apos; needs.<br />Innovation<br />Value Ideas from Everyone and Everywhere<br />Innovation will become a core competency of the enterprise. Innovation will<br />come from everyone, from everywhere, and in everything that we do. Our<br />heroes will be the people who seize opportunities, not just the people who solve<br />internal problems. We will rid ourselves of processes and practices that hamper<br />risk-taking and innovation. We will view falling short of risk-taking goals as<br />learning, not failure. All of this will allow us to continuously win consumer loyalty.<br />We will value the diversity of our people and their ideas, as only significant<br />diversity at our company will lead to great innovation. Innovation will allow us<br />to win customer loyalty and create value.<br />17<br />
  18. 18. Vision and Goals<br />The Five CFPM Whirlpool Statements<br />Strategy<br />Branded Solutions That Build Consumer Loyalty<br />Branded solutions represent an immense transformation for our company. These<br />strategies will change our jobs and how we work with each other and it will<br />force a personal connection with the consumer. They will create mindset<br />changes, actions and outcomes that will build exceptional consumer loyalty to<br />our brands . . . thus continually expanding our opportunities. This will lead<br />to the growth and performance that we must deliver.<br />Resource Creation<br />Investments in Great Ideas<br />We will understand that the focus and beneficiaries of our resource decisions<br />must be the consumer and shareholder. This will require us to look at all of our<br />activities with a new perspective. We will create purposeful investments around<br />great ideas. We will stop feeding the status quo and underperforming activities<br />and fund those activities that contribute to our success with our consumers and<br />value for our shareholders. We will put our money and talent behind innovative<br />consumer solutions and invest in doing this faster than anyone else.<br />18<br />
  19. 19. Vision and Goals<br />The Five CFPM Whirlpool Statements<br />Organization Structure and Decision Making<br />Open. Flat. Fast.<br />We will organize around our brands as our key connection to the consumer. We<br />will be open, flat and consumer-centered. We will drive decision-making close<br />to the markets and at the appropriate level. We will spell out clear accountabilities<br />for every job that, in turn, will propel us to have a sense of urgency for what<br />is important. We will create great jobs that challenge our spirit. We will create<br />well-defined “decision space” where people know their decision-making<br />accountabilities, and then we will get out of the way and let our people do their<br />jobs. We will move faster internally than the external world.<br />19<br />
  20. 20. Vision and Goals<br />Goal Trilogy<br />Innovation Embedment<br />Goal Trilogy<br />Results<br />Goals<br />Embedment<br />Goals<br />Individual Capability<br />Goals<br />20<br />
  21. 21. Vision and Goals<br />Result Goals<br />The amount of new revenue generated from innovation<br />The number of projects in the innovation pipeline<br />The number of intellectual property rights generated<br />The number of people in the process<br />The number of new customers as a result of innovation<br />The number of new methods of distribution and doing business<br />21<br />
  22. 22. Vision and Goals<br />Embedment Goals<br />The amount in seed funds set aside and used to fund innovation projects<br />The number of or diversity of people certified in levels of innovation expertise<br />The number of change management projects defined to drive innovation<br />The number of key barriers removed to allow innovation to thrive<br />The number of jobs changed due to innovation<br />22<br />
  23. 23. Vision and Goals<br />Individual Goals<br />Number or percentage of people in your work group who can describe how innovation has changed their job<br />Number of job descriptions rewritten to include innovation<br />Ways in which people use innovation in their day-to-day job<br />Identification and removal of barriers to innovation in your work group<br />Written statements about how each person has used innovation tools<br />Number of performance appraisals that have listed innovation goals for individuals<br />23<br />
  24. 24. Leader Accountability & Development<br />Innovation at the Top Leadership Level<br />24<br />
  25. 25. Leader Accountability & Development<br />Leaders&apos; Behavior and Cultural Change<br />Co-Creation<br />Time and Space for Involvement<br />Out-of-the-Box Thinking<br />Balancing Day-to-Day Pressures<br />An Innovation-Rich Environment<br />25<br />
  26. 26. Leader Accountability & Development<br />Developing Leaders&apos; Innovation Skills<br />Leadership Education and Training<br />Embedment Immersion Workshops<br />Regular Leadership Events<br />Leadership Exchange Programmes (with other Companies)<br />Leadership Training<br />On-the-Job Experience<br />I-Boards<br />I-Teams and Projects<br />Development Feedback<br />360-Degree Feedback and Development Planning<br />One-on-One Coaching<br />26<br />
  27. 27. Culture and Values<br />Edward Schein (1992), defined organizational culture<br />“a pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems”<br />27<br />
  28. 28. Culture and Values<br />Cultural and Values Descriptions of Whirlpool<br />28<br />
  29. 29. Culture and Values<br />Cultural and Values Descriptions of Whirlpool<br />29<br />
  30. 30. Culture and Values<br />Cultural Change and the Embedment Wheel<br />Vision<br />Leader Systems<br />Resources<br />Knowledge Management and Learning Systems<br />Change Management and Strategic Communications<br />Rewards and Recognition<br />Measurement and Reporting Systems and System Alignment<br />30<br />
  31. 31. Resource Creation<br />Creation vs Allocation<br />31<br />
  32. 32. Resource Creation<br />Resource Creation<br />Funding<br />Communiqué<br />People Talent<br />32<br />
  33. 33. Knowledge Mgmt & Learning Systems<br />Knowledge Management Efforts<br />I-Pipe<br />33<br />
  34. 34. Knowledge Mgmt & Learning Systems<br />Knowledge Management Efforts<br />Innovation E-Space<br />34<br />
  35. 35. Knowledge Mgmt & Learning Systems<br />Developing Knowledge Management<br />Knowledge Management Team<br />Knowledge Management Primer<br />Common Knowledge Management Definitions<br />Knowledge Management Vision<br />Whirlpool will create a knowledge-rich culture with the ability to transform knowledge and expertise into a superior market value.<br />KM Mission<br />Build a global knowledge-driven environment which will enable all Whirlpool HR people to spontaneously create, easily capture, and share their knowledge, expertise and skills. This will be accomplished so that we exploit scalable and sustainable innovative opportunities, support faster and effective customer solutions, and ensure a unique competitive advantage that is hard to duplicate.<br />35<br />
  36. 36. Knowledge Mgmt & Learning Systems<br />Common Knowledge Management Definitions<br />Knowledge Management (KM)<br />KM is the ability to acquire, integrate, store and share knowledge in a continual manner using both human and electronic or technical systems. KM systems address:<br /><ul><li>What knowledge needs to be managed and shared?
  37. 37. How do we acquire that knowledge?
  38. 38. How is that knowledge stored?
  39. 39. How it is distributed, shared and re-used to create leverage or new knowledge?
  40. 40. KM has a human as well as the technical side.</li></ul>Types of Knowledge<br />There are two types of knowledge: explicit and tacit. Both are critical aspects of a knowledge management system. Often we fail to capture tacit knowledge because it is harder to codify in an information system—it often requires face to face interaction.<br /><ul><li>Explicit information includes data, records, presentations, and what people report. For us, in the customer knowledge area, this meant hard data about customer satisfaction, preference, needs and wants, often collected from interviews, focus groups, external sources and surveys.
  41. 41. Tacit information is what people cannot easily tell you. Tacit knowledge includes: know-how, judgment, routines, experiences and lessons learned. For customer knowledge this comes from direct experience with the customer such as service technicians, people in the call center and trade partner sales people. This type of information is harder to collect and share widely than explicit knowledge.</li></ul>36<br />
  42. 42. Knowledge Mgmt & Learning Systems<br />Common Knowledge Management Definitions<br />Experts<br />People in the organization who have a unique set of skills or knowledge-set in the practice area. These were the people we mentioned earlier that have specific customer information such as people in market research, strategic planning, product development and product design.<br />Community of Interest<br />Groups of people who, on an ongoing basis, create and share know-how and knowledge and then put that knowledge into practice. Communities of interest may not even think of themselves as a community or as a formal group, and often the group is not chartered or formally organized. For us, the community of practice for customer knowledge was almost anyone in Whirlpool who had a strong interest in the customer and using data and knowledge for innovation or other purposes.<br />37<br />
  43. 43. Strat. Communications & Change Mgmt<br />Path of Change Management<br />38<br />
  44. 44. Strat. Communications & Change Mgmt<br />Path of Change Management<br />39<br />
  45. 45. Strat. Communications & Change Mgmt<br />Path of Change Management<br />Change at Individual Level<br />Formal Dimension<br />Psychological Dimension<br />Social Dimension<br />40<br />
  46. 46. Strat. Communications & Change Mgmt<br />Path to Strategic Communications<br />Corporate Communications<br />Innovation Days and Road Shows<br />41<br />
  47. 47. Rewards & Recognition<br />The Power of Intrinsic Rewards<br />Individual Reward Programs<br />Getting Asked to the Party<br />Becoming a Strategic Thinker<br />Increased Marketability and Job Potential<br />Expanding their Networks<br />Being Free to Think Outside the Box<br />Running Their Own Business<br />External Recognition<br />Leaders at the Middle Manager Level<br />42<br />
  48. 48. Rewards & Recognition<br />Team Reward Programs<br />Part of an Innovation Team and Strategy<br />Visibility with Senior Leadership<br />New Friends and Diverse Views<br />New Ways of Working as a Team<br />Organizational Reward Programs<br />Balanced Scorecard Measures<br />Financial Systems<br />Communications<br />43<br />
  49. 49. Measurement & Reporting Systems<br />Measuring Embedment<br />Business Measures<br />Embedment Measures<br />Measuring Embedment by Going Around the Wheel<br />Measuring by Executive Committee Measures<br />Measuring by Innovation Board Measures<br />Individual Measures<br />System and Process Alignment<br />Human Resource<br />Product Development<br />Finance Systems<br />Other Systems<br />44<br />
  50. 50. Conclusion<br />No idea at the moment…<br />45<br />
  51. 51. Questions & Answers<br />
  52. 52. Thank You!<br />

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