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The Art of War for the Enterprise
The Art of War for the Enterprise
The Art of War for the Enterprise
The Art of War for the Enterprise
The Art of War for the Enterprise
The Art of War for the Enterprise
The Art of War for the Enterprise
The Art of War for the Enterprise
The Art of War for the Enterprise
The Art of War for the Enterprise
The Art of War for the Enterprise
The Art of War for the Enterprise
The Art of War for the Enterprise
The Art of War for the Enterprise
The Art of War for the Enterprise
The Art of War for the Enterprise
The Art of War for the Enterprise
The Art of War for the Enterprise
The Art of War for the Enterprise
The Art of War for the Enterprise
The Art of War for the Enterprise
The Art of War for the Enterprise
The Art of War for the Enterprise
The Art of War for the Enterprise
The Art of War for the Enterprise
The Art of War for the Enterprise
The Art of War for the Enterprise
The Art of War for the Enterprise
The Art of War for the Enterprise
The Art of War for the Enterprise
The Art of War for the Enterprise
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The Art of War for the Enterprise

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What are the Key Elements of Agility and Innovation in Business, read on....

What are the Key Elements of Agility and Innovation in Business, read on....

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  • 1. The Art of War for the Enterprise: The Key Elements of Agility and Innovation in Business Author: Richard Platt Former Intel Corporate Innovation Program Manager and The Senior Instructor for Innovation Methods CONTACT INFO | EMAIL: rplatt_inov8@comcast.net | PHONE: (503) 805-7612
  • 2. Author: Richard Platt | All Rights Reserved Using the Analogy of Warfare? Competition: The struggle among organisms for food, space and other vital requirements (Webster’s Dictionary) Put another way: Competition is the wrestling for resources or having desired relationships Survival Analogies in the Animal Kingdom explain the mechanisms but not the Rules / Guidelines Warfare as the ‘Ultimate Competition’ Hard to refute, is there a better one that works? The argument against the use of Warfare Analogy is based on Utopian ideals and being PC; not practical, or useful There are Rules, Guidelines and Principles for Warfare and Non- Rules “All’s Fair in Love and War” Who Wins dependant on…Who is the most Adaptable Where do you find a rules for Adaptability in an ever changing environment? 10/16/07 Property of Strategy + Innovation Group LLC 2
  • 3. Author: Richard Platt | All Rights Reserved Best Fit Model for Adaptability Business can be described as Darwinian – “Survival of the Fittest” – Adaptability Most Adaptable (Fastest, Biggest, Smartest, etc…) The benefits of being “Alpha” of their species: Get to eat 1st Procreate 1st Garner the largest amount of resources, etc… Competition for Resources and Survival Hindsight is insufficient. Essential to have an effective way to look toward the future, and create it. - Got to have tools to do this 10/16/07 Property of Strategy + Innovation Group LLC 3
  • 4. Business Warfare is about Winning Author: Richard Platt | All Rights Reserved ‘Hearts and Minds’ & Gaining Competitive Advantage There are multiple battlegrounds: Primarily in the mind of the customer AND then in the marketplace: Market share and influence in the mind of the customer– harmonizing with customers needs/wants Competing against a ‘brother’ company in the innovation space – out innovating your competitor Competing against a ‘brother’ company in the core competency space – known as Red Ocean There are multiple others….. Source: Adapted from the Book – “Customer Chemistry” -- http://www.inc.com/resources/inc500/existingcustomers.html 10/16/07 Property of Strategy + Innovation Group LLC 4
  • 5. Author: Richard Platt | All Rights Reserved Data: The Hard Truth Fortune 500: 46 year period (on average) 1970 – 1983: 1/3 fell of the list or out of business 30 companies left the list every year; 6% turnover / year Forbes 100: 70 Year period 1917 – 1987: 61 companies no longer existed Average of 1 company / year disappeared S&P 500: Originally 90 top companies, expanded to 500 in 1957 1997: 74 companies remained of the original 500 Avg. Mortality Rate: 10 companies / year Avg. Life Span: steadily decreased from 50 to 25 years “By 2020, > ¾ of the S&P 500 will consist of companies that don’t exist today.” Key Question: Why? Source: “Business Model Warfare” article by Langdon Morris • May 2003 10/16/07 Property of Strategy + Innovation Group LLC 5
  • 6. Author: Richard Platt | All Rights Reserved A Sobering Yet Clear Pattern Projecting forward its likely that only about 1/3 of today’s major corporations will survive as significant businesses for the next 25 years. “Most will die or be bought out and absorbed because they are too slow to keep pace with change in the market.” Source: Richard Foster and Sarah Kaplan. Creative Destruction. Currency Doubleday, 2001. P. 14. 10/16/07 Property of Strategy + Innovation Group LLC 6
  • 7. Author: Richard Platt | All Rights Reserved A Change Conspiracy The three most critical market factors are: Accelerating Change Increasing Competition Increasing Complexity Resulting in drastically compressed planning and execution horizon for every company requiring faster responses throughout company Root Cause Issue: Adaptability Source: Business Model Warfare by Langdon Morris • May 2003 10/16/07 Property of Strategy + Innovation Group LLC 7
  • 8. Author: Richard Platt | All Rights Reserved Poor Habits Contribute “Change, is the common condition, not stability” observed more than 60 years ago by economist Joseph Schumpeter ...the very nature of market evolution to weaken some companies while creating opportunities for others. Instinctive habit of management is to look backwards to the past to guide a course into the future. In an era characterized by a “Change Conspiracy”, this approach cannot succeed. “This misplaced focus is usually only evident in hindsight, when market share, jobs, or stock value have already been lost.” Source: Business Model Warfare by Langdon Morris • May 2003 10/16/07 Property of Strategy + Innovation Group LLC 8
  • 9. Author: Richard Platt | All Rights Reserved 戦略法 The Way of Strategy 10/16/07 Property of Strategy + Innovation Group LLC 9
  • 10. Author: Richard Platt | All Rights Reserved Getting Grounded on the Basics Highest Form of Competing: “Winning without Fighting” a.k.a. getting the true Win-Win. Harmonizing with customer’s needs is KEY Compete where your competitor is NOT. You need tools for this: using “Blue Ocean Strategy” (BOS) is one of the best Col. John R. Boyd developed O-O-D-A Loops Observe – Orient – Decide – Act same approach martial artists use and based in part on the AOW Framework on unfolding competitive awareness that provides a capability to look at the landscape while adapting to changes real time 10/16/07 Property of Strategy + Innovation Group LLC 10
  • 11. Author: Richard Platt | All Rights Reserved What OODA Loop speed really means Quickly understand Know what what’s going on to do And be able to do it Decide Act Observe Orient Implicit Implicit Cultural Guidance Guidance Unfolding Traditions & Control & Control Circumstances Genetic Analyses & Heritage Synthesis Feed Decision Action Feed Feed Observations Forward Forward Forward (Hypothesis) (Test) New Previous Information Experience Outside Unfolding Information Interaction With Unfolding Environment Interaction Feedback With Feedback Environment While learning from the experience Source: Adapted from presentation by Chet Richards author of “Certain to Win”; http://www.belisarius.com/index.htmli 10/16/07 Property of Strategy + Innovation Group LLC 11
  • 12. Author: Richard Platt | All Rights Reserved OODA and Agility of the Enterprise Agility is a time based strategy for operational success and not based on size. Agility is a relative concept, not an absolute concept. Agility is an important attribute for project success, large or small. • Rapid prototyping projects and then refine by iterating (Read “Serious Play” by Michael Schrage) • Recommend Rule Developing Experimentation (Blue Elephants) application Agility depends on organizational culture. What Determines OODA Speed? • Ultimately Culture & climate of Trust encourages people to use their initiative to further the goals of the organization • In such a climate, people solve the technical problems Source: “What Lessons Can the Agile Community Learn from a Maverick Fighter Pilot?” article by Steve Adolph http://www.belisarius.com 10/16/07 Property of Strategy + Innovation Group LLC 12
  • 13. Author: Richard Platt | All Rights Reserved Operating Inside Their OODA Loop “It’s like they’re moving in slow motion.” —Boyd describing “operating inside opponents’ OODA loops.” “It’s like you’re commanding both sides.” — typical impression of a successful cheng / ch’i operation. cheng - “orthodox, expected” ch’i - “unorthodox, shocking, irregular.” Operating inside an opponent’s OODA loop, (decision making process) makes it easier to set up and exploit cheng / ch’i situations Source: Adapted from presentation by Chet Richards author of “Certain to Win”; http://www.belisarius.com/index.htmli 10/16/07 Property of Strategy + Innovation Group LLC 13
  • 14. Author: Richard Platt | All Rights Reserved Proof of OODA Loops in Action A time-compressed company does the same thing as a A time-compressed company does the same thing as a pilot in an OODA Loop … It’s the competitor who acts on pilot in an OODA Loop … It’s the competitor who acts on information faster who is in the best position to win. information faster who is in the best position to win. George Stalk, Jr. & Tom Hout, “Competing Against Time”, 180-181. Toyota Production and Development Systems are 2X faster than most of their competitors Apple iPod + iTunes combination and taking advantage of Napster’s failure with stakeholders (Recording Industry) Dell’s supply chain is shorter (in time) than its competitors Honda – Yamaha War: 18 month war Honda had 2X the # of designs in the marketplace (testing in the marketplace) – out innovated Yamaha Yamaha left with 12 months of unsellable inventory – they lost Source: Adapted from presentation by Chet Richards author of “Certain to Win”; http://www.belisarius.com/index.html 10/16/07 Property of Strategy + Innovation Group LLC 14
  • 15. Author: Richard Platt | All Rights Reserved Way of Strategy Summary 1. Rigorously assess ALL environmental factors Use OODA or something else that works? 2. Determine your company’s competitive stance Competitor focused (fast follower) or customer focused? 3. Find your Gaps – determine what you provide is effective and what is not Find out your technical shortcomings ASAP and solve quickly 4. Find out what the customer wants (explicitly and implicitly) Get into the Mind Of the Customer (MOC) – there are tools for this 5. Incorporate findings from above and rapidly Prototype different Strategies (Virtual is cheapest and fastest) Investigate – Propose – Iterate – Learn – Refine – Deploy 10/16/07 Property of Strategy + Innovation Group LLC 15
  • 16. Author: Richard Platt | All Rights Reserved 革新法 The Way of Innovation 10/16/07 Property of Strategy + Innovation Group LLC 16
  • 17. Corporate Infrastructure Author: Richard Platt | All Rights Reserved Barrier or Enabler of Innovation? Decisions made at mid- Snr Mgmt expects the level, made even more mid-level mgmt to vet difficult across silo’d orgs, good from bad ideas which then turns it into a before it gets to them political discussion For the Innovator: This is what passes for an Get your track shoes on to Innovation Pipeline in run the “corporate gauntlet” Innovative Concept most companies today For Corporations: This isn’t a system its “trial by fire” 10/16/07 Property of Strategy + Innovation Group LLC 17
  • 18. Author: Richard Platt | All Rights Reserved Impact to Speed & Efficiency Impact of a corporate structure on innovation: Corporation NOT setup to Integrate or Effectively Exploit innovation opportunities Even profitable ideas don’t make the cut Political element enters into decision making (away from data driven decision making) Inadequate / Insufficient / No resourcing Momentum and Speed of implementation slowed or stopped Siloed efforts (not-holistic) RESULT: Few new Strategies to enable corporation in new markets or profitability. Bureaucracy rules, if the ones at the top are the only one’s with good ideas 10/16/07 Property of Strategy + Innovation Group LLC 18
  • 19. Author: Richard Platt | All Rights Reserved What is Industrial Innovation*? …something that people VALUE and are willing to pay for (it’s about providing jobs a.k.a. as solving problems) * A.K.A.: Commercial Innovation Source: David Verduyn (c2c-solutions Inc) - All Rights Reserved 10/16/07 Property of Strategy + Innovation Group LLC 19
  • 20. Author: Richard Platt | All Rights Reserved Why is Industrial Innovation Important? Technology and Service Based Business commoditize over the long run…Global Competition Drives Down the Price Innovation (Value Provided to Customer) is the fighter of Product and Service Price Deflation -- this is where Margin Lives!! Innovation is actually a Core Competency UNDERSTAND: strategy and Innovation are inexorably tied together. Strategy pulls everything together, without it innovation is rudderless over the long term Other Reasons: Aging Product / Service Lines Business Decline Customer Defection Bureaucracy of Large Enterprise 10/16/07 Property of Strategy + Innovation Group LLC 20
  • 21. Author: Richard Platt | All Rights Reserved Systematic Innovation Methods …improves an engineer / problem solver’s ability to get to fundamental root cause, along with suggesting innovative solutions to solving problems 1/3 of Top 25 Most Innovative Companies (BusinessWeek) use Systematic Innovation Methods, and ½ of the Top 10 of those Compelling results show these have been used to help tough solve technical problems enhancing innovativeness of world class companies Companies Now using Systematic Innovation Methods: All brands, logos and trademarks remainInnovation Group LLC of their respective owners Property of Strategy + the sole property 10/16/07 21 All brands, logos and trademarks remain the sole property of their respective owners
  • 22. Author: Richard Platt | All Rights Reserved Systematic Innovation Methods Mapped to Problems Property of: Richard Platt (Strategy + Innovation Group LLC) and David Verduyn (c2c-solutions Inc) 10/16/07 Property of Strategy + Innovation Group LLC 22
  • 23. Author: Richard Platt | All Rights Reserved What Methods Increase Speed and Growth? New Product Development (NPD) investments should impact: Speed to market Profitability Accelerating NPD Study of 233 Manufacturing firms 9 different NPD Acceleration approaches: Used by Permission. Original presentation by SBTI – Sigma Breakthrough Technologies Inc 10/16/07 Property of Strategy + Innovation Group LLC 23
  • 24. Author: Richard Platt | All Rights Reserved 1st What Type of Competitor Are You What type of a competitor are you? Pioneer ? Creates new markets, new-to-world products … Fast Follower ? Studies markets and enters when they ramp-up … General ? Core business area competitor, #1, or #2 in market ownership Can be both pioneering and fast following Do you fit in one category, or does each NPD team need to be classified by their goals? Used by Permission. Original presentation by SBTI – Sigma Breakthrough Technologies Inc 10/16/07 Property of Strategy + Innovation Group LLC 24
  • 25. Author: Richard Platt | All Rights Reserved 9 Approaches Supplier Involvement (SCI) Lead User Involvement (LUI) Acceleration of activities and tasks (AST) Reduction of parts and components (DFA) Training and Rewarding Employees (TRE) Implementation of support Systems and Structures (SST) Stimulating Cross-Functional Cooperation (XFC) Customer Emphasis (VOC) Simplification of organizational structure (SOS) Used by Permission. Original presentation by SBTI – Sigma Breakthrough Technologies Inc 10/16/07 Property of Strategy + Innovation Group LLC 25
  • 26. Author: Richard Platt | All Rights Reserved Key Results: Pioneers, Market Creators Pioneers have emphasis on either speed or profitability, NPD teams must choose their approach carefully if pioneering SCI LUI AST DFA TRE SST XFC VOC SOS 1.2 Listening to the customer / user is 1 both speedy and 0.8 more profitable 0.6 Profitability Beta Anything that 0.4 No structure for increases speed innovation, reduced 0.2 is goodness profitability 0 -1 -0.8 -0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8 1 -0.2 Bureaucratic structures -0.4 can’t get speed Increase speed of -0.6 supplier response -0.8 Matrixed groups help but still -1 won’t overcome internal politics Used by Permission. Original presentation by Speed Beta which slows speed SBTI – Sigma Breakthrough Technologies Inc 10/16/07 Property of Strategy + Innovation Group LLC 26
  • 27. Author: Richard Platt | All Rights Reserved Opportunity-driven Business Development Summary on Moving with Speed Fast Fast Sustaining Fast to decision- speed thinking market making Technology Trend Launching a crusade Simplicity Setting guidelines Forecasting & road- Reduce Time-To- Boundarylessness mapping Reduce Time-To- Market (Rapid Decision Anticipating by Prototyping) Self-confidence & looking for growth attitude Getting rid of Owning competitive problems bureaucracy advantage Financial flexibility Spotting trends Getting suppliers to Shuffling Business Process Apply Systematic move fast portfolios Innovation Methods Mgmt System Staying beneath the Rule Developing Putting every idea radar Managing the Experimentation through the innovation pipeline Institutionalizing “grinder” – letting innovation Constantly the best idea win Staying close to the reassessing customer 10/16/07 Property of Strategy + Innovation Group LLC 27 Adapted from “It’s not be big that eat the small…It’s the fast that eats the slow”, J.Jennings & L.Haughton Source: www.1000ventures.com
  • 28. Summary Author: Richard Platt | All Rights Reserved There are Rules, Guidelines and Tools for Effectively and Efficiently Competing (Winning) Increase Speed of Decision Making and Shorten the Time To Process Aggressively cut wasteful time consuming processes - You gain a valuable commodity Disciplined and Systematic Approach towards Innovating is done by “Best-In-Class” companies, no process, limited results (at best) Increase Value for Customers / Users – You get increased shareholder value as a Result CONTACT INFO | EMAIL: rplatt_inov8@comcast.net | PHONE: (503) 805-7612 10/16/07 Property of Strategy + Innovation Group LLC 28
  • 29. BACKUP
  • 30. Other Corporate Systematic Innovation Users Author: Richard Platt | All Rights Reserved All brands, logos and trademarks remain the sole property of their respective owners Automotive Medical Technology Petroleum Aerospace Optics/Electronics Consumer Goods Chemical Microelectronics 10/16/07 Property of Strategy + Innovation Group LLC 30
  • 31. Author: Richard Platt | All Rights Reserved Innovation Assumption There aren’t any decent metrics for Innovation Innovation = Growth 1. = Change = Measure Profitability over time Both lagging and leading indicators are available Qtr-to-Qtr profitability and growth measures & targets “Real Options Theory” used as predictive tool for profitability of a project 2. = Change Over Time Measure 1st and then you can actually begin to see where your process isn’t working TTP – Time-to-Productivity TTM – Time-to-Market TPT – Through Put Time of Cycle You only get results from what you measure and “…you cannot manage what you don’t measure.” – Andy Grove 10/16/07 Property of Strategy + Innovation Group LLC 31

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