paperJam Workshop on Strategic Innovation

Reinventing your Business
The Who, What, How of Strategic Innovation

$ 1.600.000,-

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Strategic Innovation

What are we going to do today?
Why does Strategic Innovation matter?
What is Strategic Innovation?
How to get started?

How are we going to do it?
The Process

Why Strategic Innovation?

What‘s wrong with strategy today?
Content
Too much focus on best practices, operational effectiveness and incremental improvements in cost and quality
Too much imitation of competitors‘ moves
Too much holding on to one strategic position
Operational effectiveness is NOT strategy
 „Herding“, clustering of companys around the most successful one
Process
Strategy as incremental adaptation of last year‘s plan (no search for new opportunities, differentiation, and new growth.
Planning being too formal and analytical
No creativity
The assumption of linearity of the process
Tools
Tools being too analytical
Focus on control
Tools were developed for a different purpose (analysis, planning and control)
Conventional tools provide a snapshot of conventional wisdom
„No battle plan survives contact with the enemy.“ General Collin Powell
It all started with criticism of strategic management.

“Business model innovation matters and it is a top priority of CEOs.”

„Innovation is front and center on the corporate agenda, according to a global survey. Executives are adding more breakthrough innovations and business model changes to their portfolio to fuel the growth engine.“
Business Week, November 16, 2009

Buzz Groups
What is „strategic innovation“ to you?
How do you define „business model innovation“?
What about things like „Blue Ocean Strategy“, „disruptive innovation“,...?
Please discuss with your neighbours (groups of 3)
Exercise
10 minutes

The Innovation Map
4 Types of Innovation
Internal
Management Innovation
Operational Innovation
Continuous
Discontinuous
Product & Service Innovation
Strategic Innovation
External

Strategic Innovation is about growth
© Doujak Corporate Development

„There‘s no good just being better,
...you got to be different.“
Charles Handy

“Hey! They’re lighting their arrows!
Can they do that?”

Achieving growth and/or differentiation through...
Superior Financial Performance

It‘s all about...

Describing your business
Please describe your business by answering these 3 questions.
Exercise
10 minutes

Coffee Break
until 10:25

Context
Conditions Surrounding Strategic Innovation Activities
The Dimensions
Content
Result of Strategic Innovation Activities
Organizational Purpose
Input to Strategic Innovation Activities
Process
Flow of Strategic Innovation Activities
Apdated from De Wit and Meyer „Strategy: Process, Content, Context“ 3rd edition 2004 Thompson Learning

Deep Dive
Walking Gallery
Until 11:00

„…the real barrier to strategic innovation is more than denial – it‘s a matrix of deeply held beliefs about inherent superiority of a business model; beliefs that have been valitated by millions of customers; beliefs that have been enshrined in physical infrastructure and operating handbooks; beliefs that have hardened into religious convictions; beliefs that are held so strongly, that nonconforming ideas seldom get considered, and when they do, rarely get more than grudging support.“
Gary Hamel, The Future of Management

„The organizational designs that support innovation are very different from those that support delivery of current performance.“
John Roberts, Professor
Stanford Graduate School of Business

© Marc Sniukas
Set the context
Guide the process in a participative and fair way
Clearly communicate reasons, and expectations
Educate employees
Shield creative teams from distractions and pressure
Appreciate distinctiveness in people and their thinking
Welcome change
Ask itself what it does to promote or inhibit innovation and how to get rid of these obstacles.
Questioning attitude
Rewards success and failure, punishes inaction
Tolerates mistakes
Slack is welcomed
Supports risk taking and change
Supports teamwork and collaboration
Variety (internal and external)
Collaboration
Educated in regard to the strategy and skills needed
People
Leadership
Culture
Context
Characteristics of Strategic Innovators
Systems
Structure
Processes
Support the process of strategic innovation
Enable collaboration
Enable the use and creation of knowledge
Reward risk taking and action
Used to create relationships with customers
Metrics & rewards support innovation
Fast and flat
Small units
Encourages collaboration
Autonomous teams at the front line
Fast and unbureaucratic
Decentralized decision making
Support idea generation, experimentation and execution

Outside Industry Boundaries
Looking for opportunities & inspiration?
Other
Countries
Within the industry
Trends
Competitors
Suppliers
Assets
Capabilities
Other
Regions
Needs
Existing
Strategic
Groups
Customers
1st Tier
Trends
Other
Industries
Other
Types of
Organizations
Non-Customers
2nd Tier
Non-Customers
3rd Tier
© Marc Sniukas

Where do you create value...?
Value Innovation
© Marc Sniukas
Following Kim and Mauborgne “Blue Ocean Strategy” Harvard Business School Press, 2005

How radical is your (new) strategy?
The Strategic Innovation Profile
© Marc Sniukas

Which customers to target?
Market Innovation
© Marc Sniukas

What‘s your business model like?
Business Model Innovation
© Marc Sniukas

How to redefine the product?
Value Innovation
© Marc Sniukas

What does the customer want?
The Empathy Map
© Marc Sniukas
What does he
THINK and FEEL?
Fears, worries, aspirations, wants, needs, frustrations,....
What does he
SEE?
Environment
Others
What does the market offer?
...
What does he
HEAR?
What others say
Influencers
Companies
...
What does he
DO?
Behaviors
Attitudes
Appearance
...
© Alex Osterwalder

What‘s your value proposition?
The Strategy Canvas
© Marc Sniukas
high
low
Following Kim and Mauborgne “Blue Ocean Strategy” Harvard Business School Press, 2005

25 ways to reinvent your business
MARKET INNOVATION
#11 Target non-customers
#12 Target less profitable customers
#13 Target the least satisfied customers
#14 Target the chain of buyers
#15 Segment according to commonalities
#16 Segment according to circumstances
#17 Desegment the customer based
#1 Challenge industry assumptions
VALUE INNOVATION
#2 Offer complementary products and services
#3 Offer solutions and experiences
#4 Offer bundles
#5 Switch your appeal: functional versus emotional
#6 Focus on the job to be done
#7 Selectively eliminate, reduce, raise and create
#8 Look at subsitutes
#9 Expand the use of your assets and capabilities
#10 Look at the customer experience
BUSINESS MODEL INNOVATION
#18 Reinvent the customer interface (channels)
#19 Reinvent your customer relationships
#20 Invent new revenue streams
#21 Price differently
#22 Reinvent you cost base
#23 Re-assess your key activities
#24 Collaborate with suppliers, partners, the network and ecosystem
#25 Look at completely different industries
© Marc Sniukas

© Marc Sniukas
Define the purpose, scope and focus of innovation activities
Mobilize the organization
Align business and innovation strategies
Build leadership alignment & commitment
Build a common language and understanding
Innovation audit – Assessing need and capabilities
Definition of goverance structures and processes
Definition of metrics
Identifying internal and external opportunities
Sensing, seeking and shaping opportunitiesDescribe the current business model
Explore and understand consumer and customer needs, motivations, behaviors
Understand emerging markets, industry and socio-ecological trends
Setting the Stage
Bringing successful ideas to market
Financial impact
Incubation
Acceleration
Transition
Business Model Innovation
Discovery
Commercialization
A Discovery-Driven Approach
Development
Turn ideas into market ready concepts
Road-test the idea portfolio with key stakeholders, consumers, internal and external
Prototyping, Technical feasibility
Experimentation & learning
Customer & stakeholder feedback
Business planning, venturing, secure founding
Decide of organizational and governance structures
Evolution & optimization
Conversion
Develop and select ideas
Develop an idea portfolio
Idea Generation (In-house, cross-units, external)
Idea Evaluation
Idea Selection
Strategic decision making

Formal
Focused
Open
Inside
NewCo
Innovation tensions
Revolutionary
Evolutionary
Outside
CoreCo
Holistic
Closed
Informal
How do you organize your innovation activities?
The Innovation Wheel
© Marc Sniukas

Business Model Canvas
Download the poster for free at http://www.businessmodelalchemist.com/tools

Reinventing your Business
Any new ideas?
Exercise

Small Group Discussions
What was new to me?
What I found most interesting / irritating?
How could I get started in my organisation?
Please discuss in small groups of 4-5 people
Exercise
20 minutes

Any Questions?

How to get started?
Meet with your (management) team
Goal = Setting the stage
Answer these questions:
Does your organization understand the need for innovation/change/transformation/renewal?
Is your organization committed to innovation/change/transformation/renewal?
Does it have the right capabilities for innovation/change/transformation/renewal?
Agree on a common view
Map out the current business model & value proposition
Downloads: „Reinventing your Business Discussion Guide“ and „Business Model Handbook“.
Define the purpose of your innovation activities, align business and innovation strategies
Agree on how to proceed
Define governance structures, processes and metrics
A leadership agenda
Action Steps

www.nin.com

Want more?
www.doujak.eu
www.sniukas.com

Research
Dynamic Capabilities (i.e. activities, processes and routines) leading to Business Model Innovation.
Managerial capabilities for creating, developing and leading these capabilities.
Would you like to participate?

Contact Details
Marc Sniukas
Doujak Corporate Development
Lainzer Strasse 80
A-1130 Vienna
Mobile: +43 699 122 333
marc.sniukas@doujak.eu

“The difficulty lies not in the new ideas,...
…but in escaping from the old ones.”
John Maynard Keynes

Next sessions
20.05.2010 Strategy ImplementationHow to engage the Organization.
06.07.2010 The Living OrganizationSystems Thinking and Management.
Looking forward to seeing you again...

Worth reading
Download: Reshaping Strategyhttp://www.sniukas.com/2009/11/reshaping-strategy/
Download: Discussion Guidehttp://www.sniukas.com/2010/03/discussion-guide-challenging-your-strategy/
A list with books on amazon.dehttp://www.amazon.de/Innovation-for-paperJam/lm/R3R3Z352PL1O8A/
Videos on New World of Work, Motivation and Creativityhttp://video.ted.com/talks/podcast/DanielPink_2009G.mp4http://www.ted.com/talks/lang/eng/ken_robinson_says_schools_kill_creativity.html
Further references

Thanks for your attention!
Looking forward to seeing you again...

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paperJam Workshop on Strategic Innovation

by Marc Sniukas

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