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

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

  • K6201 Scholarly Paper Presentation
    By Group #16:
    GU QIQI (RACHEL)
    MAO YANLAN (ELAINE)
    ANG HUN BEET (ELVIN)
    Strategic Innovation: Embedding Innovation as a Core Competency in Your Organization
  • Defining Innovation
    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.
    Battelle, 1973, p. 1
    2
  • Defining Innovation
    Benefits of Innovation
    Cost reduction for goods in widespread use.
    Development of entirely new goods and services.
    Powell & Snellman, 2004, p. 202
    3
    View slide
  • Example #1: SegwayPT
    4
    View slide
  • Example #2: The Shipping Container
    5
  • Innovation Embedment
    The concept of embedment is analogous to the institutionalization of a core competency.
    Prahalad and Hamel (1990) wrote about core competency creation especially stress that sustaining core competencies for the long run is critical to creating value.
    6
  • Innovation Embedment
    Training vs Embedment
    7
  • Innovation Embedment
    What does that mean to Whirlpool?
    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.
    8
  • Introduction
    End of Era …
    At the end of 20th century
    New levels of expectations to create share holders value
    Whirlpool’s CEO & Executive Committee vision
    Through long-term strategy focusing on customer loyalty
    9
  • Introduction
    Removing Barriers with Innovation
    Barriers to address:
    Barrier 1: Long product life cycles.
    Barrier 2: Indirect customers.
    Barrier 3: The mental of customers.
    10
  • Introduction
    What is Innovation?
    Any product or service that creates unique compelling solutions valued by their customers, real and sustainable competitive advantages, and extraordinary value for their shareholders.
    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.
    Must drive a reallocation of their resources to be more focused on their strategic objectives.
    11
  • Introduction
    The Beginning of Innovation at Whirlpool
    Seeking Models and Partners
    With no models among other organizations, they sought a consultant.
    Concepts categorized from suggested consultants are,
    Great Man Theory
    Skunkworks
    Creativity and Games
    Technology
    Strategy (re)Formulation
    Product Bells and Whistles
    Training and More Training
    12
  • Introduction
    To Take their Own Journey
    Lack of literature to support the need for innovation embedment.
    Strategos was the consultant
    They did not want a long-term relationship with Whirlpool and would not create consultant dependency.
    They admitted that they did not have all the answers.
    They wanted to work with Whirlpool to discover new ways to embed innovation.
    Strategos' Approach
    Refreshing approach put the emphasis on learning for ourselves (Whirlpool).
    Creating a systemic approach to embedment that would become self-sustaining.
    13
  • Introduction
    The Whirlpool’s Organizational Structure
    Chairman and CEO
    Global VP of Innovation
    Strategos (external consultants to VP and I-Teams)
    Global Director, KM
    Latin America Regional VP/GM of Innovation
    Latin America Regional VP/GM of Innovation
    Latin America Regional VP/GM of Innovation
    KM Manager
    KM Manager
    KM Manager
    I-Board Senior Leaders from Latin America
    I-Board Senior Leaders from Latin America
    I-Board Senior Leaders from Latin America
    14
  • The Embedment Wheel
    Source: © 2002 Whirlpool Corporation. All rights reserved.
    15
  • Vision and Goals
    Whirlpool's Enterprise-Wide and Innovation Visions
    16
  • Vision and Goals
    The Five CFPM Whirlpool Statements
    Enterprise-Wide Vision
    Every Home . . . Everywhere
    Our vision proposes a higher order of purpose: Every home is our domain . . .
    every consumer and consumer activity our opportunity. This vision will fuel the
    passion that we will develop for our consumers. This means not just building
    white boxes . . . but rather providing a wide range of innovative solutions that
    uniquely meet our customers' needs.
    Innovation
    Value Ideas from Everyone and Everywhere
    Innovation will become a core competency of the enterprise. Innovation will
    come from everyone, from everywhere, and in everything that we do. Our
    heroes will be the people who seize opportunities, not just the people who solve
    internal problems. We will rid ourselves of processes and practices that hamper
    risk-taking and innovation. We will view falling short of risk-taking goals as
    learning, not failure. All of this will allow us to continuously win consumer loyalty.
    We will value the diversity of our people and their ideas, as only significant
    diversity at our company will lead to great innovation. Innovation will allow us
    to win customer loyalty and create value.
    17
  • Vision and Goals
    The Five CFPM Whirlpool Statements
    Strategy
    Branded Solutions That Build Consumer Loyalty
    Branded solutions represent an immense transformation for our company. These
    strategies will change our jobs and how we work with each other and it will
    force a personal connection with the consumer. They will create mindset
    changes, actions and outcomes that will build exceptional consumer loyalty to
    our brands . . . thus continually expanding our opportunities. This will lead
    to the growth and performance that we must deliver.
    Resource Creation
    Investments in Great Ideas
    We will understand that the focus and beneficiaries of our resource decisions
    must be the consumer and shareholder. This will require us to look at all of our
    activities with a new perspective. We will create purposeful investments around
    great ideas. We will stop feeding the status quo and underperforming activities
    and fund those activities that contribute to our success with our consumers and
    value for our shareholders. We will put our money and talent behind innovative
    consumer solutions and invest in doing this faster than anyone else.
    18
  • Vision and Goals
    The Five CFPM Whirlpool Statements
    Organization Structure and Decision Making
    Open. Flat. Fast.
    We will organize around our brands as our key connection to the consumer. We
    will be open, flat and consumer-centered. We will drive decision-making close
    to the markets and at the appropriate level. We will spell out clear accountabilities
    for every job that, in turn, will propel us to have a sense of urgency for what
    is important. We will create great jobs that challenge our spirit. We will create
    well-defined “decision space” where people know their decision-making
    accountabilities, and then we will get out of the way and let our people do their
    jobs. We will move faster internally than the external world.
    19
  • Vision and Goals
    Goal Trilogy
    Innovation Embedment
    Goal Trilogy
    Results
    Goals
    Embedment
    Goals
    Individual Capability
    Goals
    20
  • Vision and Goals
    Result Goals
    The amount of new revenue generated from innovation
    The number of projects in the innovation pipeline
    The number of intellectual property rights generated
    The number of people in the process
    The number of new customers as a result of innovation
    The number of new methods of distribution and doing business
    21
  • Vision and Goals
    Embedment Goals
    The amount in seed funds set aside and used to fund innovation projects
    The number of or diversity of people certified in levels of innovation expertise
    The number of change management projects defined to drive innovation
    The number of key barriers removed to allow innovation to thrive
    The number of jobs changed due to innovation
    22
  • Vision and Goals
    Individual Goals
    Number or percentage of people in your work group who can describe how innovation has changed their job
    Number of job descriptions rewritten to include innovation
    Ways in which people use innovation in their day-to-day job
    Identification and removal of barriers to innovation in your work group
    Written statements about how each person has used innovation tools
    Number of performance appraisals that have listed innovation goals for individuals
    23
  • Leader Accountability & Development
    Innovation at the Top Leadership Level
    24
  • Leader Accountability & Development
    Leaders' Behavior and Cultural Change
    Co-Creation
    Time and Space for Involvement
    Out-of-the-Box Thinking
    Balancing Day-to-Day Pressures
    An Innovation-Rich Environment
    25
  • Leader Accountability & Development
    Developing Leaders' Innovation Skills
    Leadership Education and Training
    Embedment Immersion Workshops
    Regular Leadership Events
    Leadership Exchange Programmes (with other Companies)
    Leadership Training
    On-the-Job Experience
    I-Boards
    I-Teams and Projects
    Development Feedback
    360-Degree Feedback and Development Planning
    One-on-One Coaching
    26
  • Culture and Values
    Edward Schein (1992), defined organizational culture
    “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”
    27
  • Culture and Values
    Cultural and Values Descriptions of Whirlpool
    28
  • Culture and Values
    Cultural and Values Descriptions of Whirlpool
    29
  • Culture and Values
    Cultural Change and the Embedment Wheel
    Vision
    Leader Systems
    Resources
    Knowledge Management and Learning Systems
    Change Management and Strategic Communications
    Rewards and Recognition
    Measurement and Reporting Systems and System Alignment
    30
  • Resource Creation
    Creation vs Allocation
    31
  • Resource Creation
    Resource Creation
    Funding
    Communiqué
    People Talent
    32
  • Knowledge Mgmt & Learning Systems
    Knowledge Management Efforts
    I-Pipe
    33
  • Knowledge Mgmt & Learning Systems
    Knowledge Management Efforts
    Innovation E-Space
    34
  • Knowledge Mgmt & Learning Systems
    Developing Knowledge Management
    Knowledge Management Team
    Knowledge Management Primer
    Common Knowledge Management Definitions
    Knowledge Management Vision
    Whirlpool will create a knowledge-rich culture with the ability to transform knowledge and expertise into a superior market value.
    KM Mission
    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.
    35
  • Knowledge Mgmt & Learning Systems
    Common Knowledge Management Definitions
    Knowledge Management (KM)
    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:
    • What knowledge needs to be managed and shared?
    • 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.
    Types of Knowledge
    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.
    • 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.
    • 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.
    36
  • Knowledge Mgmt & Learning Systems
    Common Knowledge Management Definitions
    Experts
    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.
    Community of Interest
    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.
    37
  • Strat. Communications & Change Mgmt
    Path of Change Management
    38
  • Strat. Communications & Change Mgmt
    Path of Change Management
    39
  • Strat. Communications & Change Mgmt
    Path of Change Management
    Change at Individual Level
    Formal Dimension
    Psychological Dimension
    Social Dimension
    40
  • Strat. Communications & Change Mgmt
    Path to Strategic Communications
    Corporate Communications
    Innovation Days and Road Shows
    41
  • Rewards & Recognition
    The Power of Intrinsic Rewards
    Individual Reward Programs
    Getting Asked to the Party
    Becoming a Strategic Thinker
    Increased Marketability and Job Potential
    Expanding their Networks
    Being Free to Think Outside the Box
    Running Their Own Business
    External Recognition
    Leaders at the Middle Manager Level
    42
  • Rewards & Recognition
    Team Reward Programs
    Part of an Innovation Team and Strategy
    Visibility with Senior Leadership
    New Friends and Diverse Views
    New Ways of Working as a Team
    Organizational Reward Programs
    Balanced Scorecard Measures
    Financial Systems
    Communications
    43
  • Measurement & Reporting Systems
    Measuring Embedment
    Business Measures
    Embedment Measures
    Measuring Embedment by Going Around the Wheel
    Measuring by Executive Committee Measures
    Measuring by Innovation Board Measures
    Individual Measures
    System and Process Alignment
    Human Resource
    Product Development
    Finance Systems
    Other Systems
    44
  • Conclusion
    No idea at the moment…
    45
  • Questions & Answers
  • Thank You!