“ Innovation is the effort to create purposeful focused change in an enterprise’s economic or social potential” - Peter Drucker

Large companies appear to have been more successful in Six Sigma, Kaizen, TPM, etc.!

The balance between creativity & value capture changes… …as the organization matures Bias towards creativity Balance creativity & value capture Focus on value capture Challenge for startup companies Challenge for mature companies As organizations mature over time Source: Davila, Epstein & Shelton, 2006

Efficiency requires stable routines  Stable & controlled environment Innovation requires creativity & new ideas  Loose & flexible environment Managing the Tension

“ We treat innovation as if it were magical, not subject to guidance or nurturing, much less planning. If we study history, however, we know that’s simply untrue. There are times, places & conditions under which innovation flourishes” - Sam Palmisano, CEO, IBM

Designing Organizational Systems & Processes that can deliver Ongoing Innovation The Challenge How to prevent administrative structures & control systems from stifling innovation

Blending discipline and creativity Motivating without losing business focus Creating a virtuous cycle Continuous learning Embedding learning within organization

Creating “small company” feel within a large company The Solutions? Decentralisation Intrapreneurship Internal Corporate Venturing Bringing Silicon Valley Inside