Strategic innovation

710 views

Published on

There are different Strategic Innovation methodologies, frameworks and models that aid organizations, particularly with technology driven, production companies. Most companies must innovate and continually improve to maintain a competitive advantage, but how they accomplish these process improvements differs significantly from Strategic Innovation. Traditional strategies rely on process improvements and product development through lessons learned, adoption of internal and external best practices, and improvements that are incremental and nature that are often found in Total Quality Management programs. Strategic Innovation requires a culture that can create breakthroughs within a company’s current market, and potentially enter a new market or segment. Strategic Innovation, and the implementation models that follow, are not for every organization, and a review of traditional strategies and risks associated with Strategic Innovation will be covered.

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
710
On SlideShare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • Ben
  • Ben
  • Ben
  • Ben
  • Ben
  • Ben(http://www.gmac.com/why-gmac/gmac-news/gmnews/2004/march-april/hamel-challenges-b-schools-to-stay-ahead-of-the-curve-and-change-the-world.aspx)
  • Ben
  • Ben
  • BenCrop chart to remove “The Innovation Process” titile
  • Jon
  • Jon
  • Jon
  • JonSee more at: http://www.ideaconnection.com/blog/2011/11/the-serendipity-strategy/
  • Jon
  • Jon
  • Jon
  • Jon
  • Joe
  • Joe
  • Joe
  • Joe
  • Joehttp://hbr.org/2012/09/better-customer-insight-in-real-time/ar/http://www.fresh-insight.eu/Weblog.php?category=1
  • Joehttp://preparingbusinessreview.com/scope/identify-the-organizations-core-competencies/
  • Joe
  • Joe
  • Joe
  • Jon
  • Jon
  • Jon
  • Ben
  • Benhttp://sloanreview.mit.edu/article/responses-to-disruptive-strategic-innovation/
  • Ben
  • Ben
  • Ben
  • Ben
  • Ben
  • Pravin
  • Pravin
  • Pravin
  • Pravin
  • Pravin
  • Pravin
  • AliciaRisks are always there. Follow the process.
  • Alicia
  • Alicia
  • Alicia
  • AliciaShare good and bad aspects of new service. What problems it addresses, What is drawback.
  • AliciaShare good and bad aspects of new service. What problems it addresses, What is drawback.
  • AliciaShare good and bad aspects of new service. What problems it addresses, What is drawback.
  • AliciaShare good and bad aspects of new service. What problems it addresses, What is drawback.
  • Pravin
  • Pravin
  • Pravin
  • Strategic innovation

    1. 1. Strategic Innovation: A New Strategy Model for the 21st Century Pravin Asar December 2 2013 1
    2. 2. Strategic Innovation 2
    3. 3. Why Strategy? "The enterprise that does not innovate inevitably ages and declines… and in a period of rapid change such as the present…the decline will be fast“ — Peter F. Drucker 3
    4. 4. Strategic Innovation "Innovation distinguishes between a leader and a follower" - Steve Jobs 4
    5. 5. Why Innovation as Strategy ? • Innovation is the single most important driver of competitive success in many industries • Many firms earn over one-third of sales on products developed within last five years (e.g. Apple iPod, iPhone, iPad, etc.) • Globalization has increased competitive pressure 5
    6. 6. Why Innovate? • Product innovations help firms protect margins by offering new, differentiated features • Process innovations help make manufacturing more efficient • Service innovation leads to higher customer satisfaction “Innovation is the only way to stay ahead of the curve and change the world” – Gary Hamel 6
    7. 7. Importance of Innovation 7
    8. 8. Traditional Approach 8
    9. 9. Traditional Approach • • • • • • • Customer driven Competition driven Technology driven Stakeholder driven Project driven Resource driven Culture driven 9
    10. 10. Serendipitous Strategy SERENDIPITY The effect by which one accidentally stumbles upon something truly wonderful, especially while looking for something entirely unrelated 10
    11. 11. Serendipitous Strategy • It’s part luck, part skill • Incorporates a process to create and takes advantage of serendipitous moments • Sounds like planning for accidents, right? 11
    12. 12. Serendipitous Strategy • While this concept may seem counter intuitive, but it actually makes a lot of sense • Integrate the best of both strategy and chance into your plans • Cannot plan for all of the unexpected opportunities that may come your way, but what you can do is analyze the unplanned opportunities 12
    13. 13. Patterns of Serendipitous Innovations • These patterns can vary wildly: – Discovery that was being sought, but found in an unexpected way (e.g. Goodyear Tire) – Discovery that was not sought (e.g. Velcro) – Discovery is different than originally planned (e.g. Post-It) 13
    14. 14. Serendipitous Strategy Synchronicity SERENDIPITY Ordinary Events NOWHERE “Our bravest and best lessons are not learned through success, but through misadventure. ” — Amos Bronson Alcott Stop Think Observe Proceed 14
    15. 15. From Concept to Product 15
    16. 16. Innovation Strategies • Globalization has increased competitive pressure • Product innovations help firms protect margins by offering new, differentiated features • Process innovations help make manufacturing more efficient • Service innovation leads to higher customer satisfaction 16
    17. 17. Other Strategic Innovation Models • All models focus on change • Level of change varies – Gradual Change – Continuous Change – Discontinuous Change 17
    18. 18. Seven Dimension Framework 8
    19. 19. Managed Innovation • Core of the innovation process • Creative Methodology and strategic thinking • Sharing the vision of success with all stakeholders • Goal is to reach equilibrium between – External Perspective – Internal Capabilities • IT Technology and collaboration are key factors 19
    20. 20. Strategic Alignment • Needs internal support and commitment among key stakeholders • Committed for strategic innovation • Engage the organization around a unifying vision and goals which align its strategies and business models • Industry Level Engagement is also important 20
    21. 21. Industry Foresight • A top-down perspective used to understand – Complex forces that drive change – Includes emerging and converging trends – The latest technology – Competitive dynamics – Alternative scenarios 21
    22. 22. Consumer/Customer Insight • Bottom-up perspective used to understand – Consumer • Current Needs • Unrecognized Needs • Potential Needs – Business sector • Current market needs • Potential market needs 22
    23. 23. Core Technologies and Competencies • Internal capabilities and competencies needed deliver value to the customers • Technologies, intellectual property, brand equity and strategic relationships + = 23
    24. 24. Quote on Core Competencies 24
    25. 25. Organizational Readiness • It is the determination and ability to: – Implement new ideas and strategies – Successfully manage and sustain those ideas and strategies • Three areas of readiness: – Cultural – Process – Structural 25
    26. 26. Disciplined Implementation • The organization’s capability to effectively sustain the life cycle of innovation • The sustainment is dependent on the organization's ability to repeat each step of the innovation life cycle over and over again 26
    27. 27. Five Phase Life Cycle Model • Five Phases of Innovation – Generate – Conceptualize – Optimize – Implement – Capture • Repeat as needed 27
    28. 28. Strategic Implementation: Recipe for Success • • • • • Recognize need for radical transformation Create inspiration Innovate with clear principles Learn from initial innovation Encourage emergent strategy 28
    29. 29. Invent and Re-invent "I have not failed. I've just found 10,000 ways that won't work.“ — Thomas 29
    30. 30. Disruptive Strategic Innovation • A specific type of strategic innovation – Leads to a new way of doing the business – Conflicts with the traditional way of doing business • Examples: – Internet – Low-cost airlines – Direct insurance – Online brokerage trading – Distribution of news – Home delivery of grocery stores 30
    31. 31. Characteristics of Disruptive Strategic Innovation • Emphasis on different product or service attributes – Traditional brokers sell services on the basis of research and advice – Online brokers sell on price and speed of execution • Innovators become attractive to new segments 31
    32. 32. Characteristics of Disruptive Strategic Innovation • Start out as small and low-margin businesses – Rarely gain support or long-term commitment from established competitors – The innovations are small and not attractive until they grow • Grow to capture a large share of the established market. – Improvements are made over time – They are able to deliver comparable performance – Established competitors model the new attributes 32
    33. 33. Applied Examples 33
    34. 34. GE’s Six Part Growth Model 34
    35. 35. Space-X • Developed new engines and a new launch vehicle • Resulting in NASA and commercial customers signing on to 40+ manifests • Focused on Disruptive Strategic Innovation • Developing the Grasshopper vertical takeoff and landing (VTVL) vehicle 35
    36. 36. Technological Industry Examples • Dell Inc. redesigned the company’s direct-sales model • IBM changed its practice of independently selling hardware and software to selling complete solutions • Canon Inc. developed photocopiers for small offices instead of large corporations • Eastman Kodak pioneered IT operations outsourcing 36
    37. 37. HANDS-ON EXPERIENCE 37
    38. 38. NASA GOPDb – Innovation by Pravin Asar • This is hands-on work done by a team led by Pravin Asar, for NASA’s Tri-programs (GSDO, SLS and ORION). • This game-changing revolutionary technology has changed how the large organization develop their new product/program. • Included here is a brief summary Web Application Software for Ground Operations Planning Database (GOPDb) Management Monday, 10 June 2013 A Web application facilitates collaborative development of the ground operations planning document. This will reduce costs and development time for new programs by incorporating the data governance, access control, and revision tracking of the ground operations planning data. Ground Operations Planning requires the creation and maintenance of detailed timelines and documentation. The GOPDb Web application was created using state-of-the-art Web 2.0 technologies, and was deployed as SaaS (Software as a Service), with an emphasis on data governance and security needs. Application access is managed using two factor authentication, with data write permissions tied to user roles and responsibilities. Multiple instances of the application can be deployed on a Web server to meet the robust needs for multiple, future programs with minimal additional cost. This innovation features high availability and scalability, with no additional software that needs to be bought or installed. For data governance and security (data quality, management, business process management, and risk management for data handling), the software uses NAMS. No local copy/cloning of data is permitted. Data change log/tracking is addressed, as well as collaboration, work flow, and process standardization. The software provides online documentation and detailed Web-based help. There are multiple ways that this software can be deployed on a Web server to meet ground operations planning needs for future programs. The software could be used to support commercial crew ground operations planning, as well as commercial payload/satellite ground operations planning. The application source code and database schema are owned by NASA. More details : http://www.techbriefs.com/component/content/article/16585 38
    39. 39. KSC Ground Operations Planning Database (GOPD) 39
    40. 40. KSC-GSDO Emphasis on Ground Operations Planning • NASA HQ/ESMD objectives dictated that the GSDO development approach must “significantly reduce the resources…required for exploration…over legacy systems” – Lessons learned from Shuttle and ISS prescribe that program operations costs will be unaffordable if lifecycle cost implications of decisions made during development are ignored or poorly understood – The gross majority of life cycle costs will be incurred in the operational phase of Constellation systems • To meet this objective, GSDO initiated processes to: – Define and communicate the operations baseline – Drive operability into vehicle and ground systems design – Streamline processing infrastructure – Provide in depth trades and analysis to inform decision makers 40
    41. 41. GOPD Workflow Evolution (Document to Database) Old - Ground Operations Planning Document New - Ground Operations Planning Database 41
    42. 42. GOPD: Integrated Planning Database 42
    43. 43. Ground Operations Planning Database (GOPD) Authoritative and Integrated Single Data Source Metrics (example: launch to launch critical path) Operational Timelines Ground Ops Planning Document Process Visualization Discrete Event Simulation Custom Reports (example: GSE allocation) GOPD facilitates operations planning and design analysis by providing a common, authoritative data repository 43
    44. 44. GOPD Potential Applications Other potential applications for the GOPD include planning activity for complex assembly or manufacturing process such as – Commercial space users – Automobile manufacturing – Aircraft manufacturing or overhaul planning – Shipbuilding or overhaul planning – Major construction efforts 44
    45. 45. Risks in Strategic Innovation Amos Bronson Alcott One approach does NOT fit 45
    46. 46. Risk Management Applied to Product Innovation • Delve into product innovation until ready to kick-off • Use time effectively – Portfolio Mapping – Innovation Roadmaps – Innovation Funnel – Stage Gate Innovation • Open innovation has emerged as viable mitigation strategy 46
    47. 47. Risk Management Applied to Service Innovation • • • • Innovate while providing service Invest in new service infrastructure Customers finance the development cost Risks – Higher service costs/reduced profit margins – Contract penalties – Uncertainty of outcomes/customer satisfaction – Soiled reputation 47
    48. 48. Risk in Service Innovation • • • • Phased/Pilot implementation may yield desired outcome Avoid singular mindset Open to suggestions Critical elements: – Entrepreneurial culture – Incentives – Knowledge management 48
    49. 49. Risk Management in Service Innovation • Prepare for Service Innovation – Examine alignment of business model, infrastructure, operations – Identify gaps – Take actions (hire experts, separate business models) • Master the learning challenge – Collaborate with frontline stakeholders – Knowledge dissipation/training – Knowledge capture/feedback 49
    50. 50. Risk Management in Service Innovation • Customer collaboration – Setup the stage/expectations – Positive customer engagement – Knowledge capture • Learn from the knowledge – Look at past and current initiatives and Key Performance Indicators (KPIs) – Adjust as needed 50
    51. 51. Risk Management in Service Innovation Service B Service A Service KPI Service KPI • Facts: – Service Innovation happens in “real-world” – Initial service delivery does not yield returns right away – Benefits come from “hits-and-misses” analysis and corrective measures Service B overlap Service A Time Time 51
    52. 52. Risk Management in Service Innovation • Better results can be achieved by: – Cross-functional decision making – Organizational alignment – Knowledge management – Incentives and rewards 52
    53. 53. Overview of Key Functions (Concept Through Delivery) Sponsorship Strategy Project/Portfolio Management Creative Problem Solving Decision Making Budget and Financial Management Resource Management Innovation Project & Portfolio Management Creativity, R & D Idea Evaluation, Quality Assurance Technology Performance & Metrics Continuous Improvement and Maturity Tools and Techniques Governance Oversight Operations and Administration Solution Delivery Education & Training Rewards & Recognition Model/Framework, methodology and approach Development Solution/Process development & maintenance Culture Development & maintenance Competency and Training development Toolbox/Technique development Knowledge Base Collaboration and communication facilitation Practice and Capability management Library/Repository Knowledge Sharing/Management Subject Matter/Process Experts, Consultants Facilitators, Liaisons Product Distributors, Service Dealer Champions, Mentors 53
    54. 54. The Ten C’s of Employee Engagement 1. Connect: Show that employees are valued 2. Clarity: Communicate a clear vision 3. Convey: Clarify expectations and provide feedback 4. Career: Provide challenging and meaningful work 5. Congratulate: Give recognition 6. Contribute: Help people see and feel how they are contributing 7. Control: Create opportunities for employees to exercise control 8. Collaborate: Be a team builder; create an environment that fosters trust 9. Credibility: Demonstrate high ethical standards 10.Confidence: Be an exemplar of high ethical and performance standards 54
    55. 55. Conclusion • Strategic innovation is the key to sustained innovation • Strategic innovation framework is applicable to new product as well as service development • Technology is important, but key success factors are leadership, management and employees • Strategic Innovation is all about SMART goal setting "Innovation has nothing to do with how many R&D dollars you have. When Apple came up with the Mac, IBM was spending at least 100 times more on R&D. It's not about money. It's about the people you have, how you're led, and how much you get it.“ — Steve Jobs 55

    ×