paperJam Workshop on Strategic Innovation

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The slide deck from a 1/2 workshop on strategic innovation and business model innovation for the paperJam Business Club in April 2010 in Luxembourg.

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paperJam Workshop on Strategic Innovation

  1. 1. Reinventing your Business<br />The Who, What, How of Strategic Innovation<br />
  2. 2. © Marc Sniukas - Doujak Corporate Development<br />
  3. 3. © Marc Sniukas - Doujak Corporate Development<br />
  4. 4. $ 1.600.000,-<br />© Marc Sniukas - Doujak Corporate Development<br />
  5. 5. © Marc Sniukas - Doujak Corporate Development<br />
  6. 6. © Marc Sniukas - Doujak Corporate Development<br />
  7. 7. © Marc Sniukas - Doujak Corporate Development<br />
  8. 8. FreeDownload<br />© Marc Sniukas - Doujak Corporate Development<br />
  9. 9. Strategic Innovation<br />© Marc Sniukas - Doujak Corporate Development<br />
  10. 10. What are we going to do today?<br />© Marc Sniukas - Doujak Corporate Development<br />Why does Strategic Innovation matter?<br />What is Strategic Innovation?<br />How to get started?<br />
  11. 11. How are we going to do it?<br />The Process<br />© Marc Sniukas - Doujak Corporate Development<br />
  12. 12. Why Strategic Innovation?<br />© Marc Sniukas - Doujak Corporate Development<br />
  13. 13. What‘s wrong with strategy today?<br />Content<br />Too much focus on best practices, operational effectiveness and incremental improvements in cost and quality<br />Too much imitation of competitors‘ moves<br />Too much holding on to one strategic position<br />Operational effectiveness is NOT strategy<br /> „Herding“, clustering of companys around the most successful one<br />Process<br />Strategy as incremental adaptation of last year‘s plan (no search for new opportunities, differentiation, and new growth.<br />Planning being too formal and analytical<br />No creativity<br />The assumption of linearity of the process<br />Tools<br />Tools being too analytical<br />Focus on control<br />Tools were developed for a different purpose (analysis, planning and control)<br />Conventional tools provide a snapshot of conventional wisdom<br />„No battle plan survives contact with the enemy.“ General Collin Powell<br />It all started with criticism of strategic management.<br />© Marc Sniukas - Doujak Corporate Development<br />
  14. 14. “Business model innovation matters and it is a top priority of CEOs.”<br />© Marc Sniukas - Doujak Corporate Development<br />
  15. 15. „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.“<br />Business Week, November 16, 2009<br />
  16. 16. © Marc Sniukas - Doujak Corporate Development<br />
  17. 17. What is Strategic Innovation?<br />© Marc Sniukas - Doujak Corporate Development<br />
  18. 18. Buzz Groups<br />What is „strategic innovation“ to you?<br />How do you define „business model innovation“?<br />What about things like „Blue Ocean Strategy“, „disruptive innovation“,...?<br />Please discuss with your neighbours (groups of 3)<br />© Marc Sniukas - Doujak Corporate Development<br />Exercise<br />10 minutes<br />
  19. 19. What is Strategic Innovation?<br />© Marc Sniukas - Doujak Corporate Development<br />
  20. 20. The Innovation Map<br />4 Types of Innovation<br />Internal<br />Management Innovation<br />Operational Innovation<br />Continuous<br />Discontinuous<br />Product & Service Innovation<br />Strategic Innovation<br />External<br />© Marc Sniukas - Doujak Corporate Development<br />
  21. 21. What is Strategic Innovation?<br />Strategic Innovation is about growth<br />© Doujak Corporate Development<br />
  22. 22. „There‘s no good just being better,<br />...you got to be different.“<br />Charles Handy<br />
  23. 23. “Hey! They’re lighting their arrows!<br />Can they do that?” <br />© Marc Sniukas - Doujak Corporate Development<br />
  24. 24. What is Strategic Innovation?<br />Achieving growth and/or differentiation through...<br />© Marc Sniukas - Doujak Corporate Development<br />Superior Financial Performance<br />
  25. 25. © Marc Sniukas - Doujak Corporate Development<br />
  26. 26. What is Strategic Innovation?<br />It‘s all about...<br />© Marc Sniukas - Doujak Corporate Development<br />
  27. 27. Describing your business<br />Please describe your business by answering these 3 questions.<br />© Marc Sniukas - Doujak Corporate Development<br />Exercise<br />10 minutes<br />
  28. 28. Coffee Break<br />until 10:25<br />© Marc Sniukas - Doujak Corporate Development<br />
  29. 29. Context<br />Conditions Surrounding Strategic Innovation Activities<br />What is Strategic Innovation?<br />The Dimensions<br />© Marc Sniukas - Doujak Corporate Development<br />Content<br />Result of Strategic Innovation Activities<br />Organizational Purpose<br />Input to Strategic Innovation Activities<br />Process<br />Flow of Strategic Innovation Activities<br />Apdated from De Wit and Meyer „Strategy: Process, Content, Context“ 3rd edition 2004 Thompson Learning<br />
  30. 30. Deep Dive<br />Walking Gallery<br />© Marc Sniukas - Doujak Corporate Development<br />Until 11:00<br />
  31. 31. „…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.“<br />Gary Hamel, The Future of Management<br />
  32. 32. „The organizational designs that support innovation are very different from those that support delivery of current performance.“<br />John Roberts, Professor<br />Stanford Graduate School of Business<br />
  33. 33. © Marc Sniukas <br /><ul><li>Set the context
  34. 34. Guide the process in a participative and fair way
  35. 35. Clearly communicate reasons, and expectations
  36. 36. Educate employees
  37. 37. Shield creative teams from distractions and pressure
  38. 38. Appreciate distinctiveness in people and their thinking
  39. 39. Welcome change
  40. 40. Ask itself what it does to promote or inhibit innovation and how to get rid of these obstacles.
  41. 41. Questioning attitude
  42. 42. Rewards success and failure, punishes inaction
  43. 43. Tolerates mistakes
  44. 44. Slack is welcomed
  45. 45. Supports risk taking and change
  46. 46. Supports teamwork and collaboration
  47. 47. Variety (internal and external)
  48. 48. Collaboration
  49. 49. Educated in regard to the strategy and skills needed</li></ul>People<br />Leadership<br />Culture<br />Context<br />Characteristics of Strategic Innovators<br />Systems<br />Structure<br />Processes<br /><ul><li>Support the process of strategic innovation
  50. 50. Enable collaboration
  51. 51. Enable the use and creation of knowledge
  52. 52. Reward risk taking and action
  53. 53. Used to create relationships with customers
  54. 54. Metrics & rewards support innovation
  55. 55. Fast and flat
  56. 56. Small units
  57. 57. Encourages collaboration
  58. 58. Autonomous teams at the front line
  59. 59. Fast and unbureaucratic
  60. 60. Decentralized decision making
  61. 61. Support idea generation, experimentation and execution</li></li></ul><li>Outside Industry Boundaries<br />Looking for opportunities & inspiration?<br />Other<br />Countries<br />Within the industry<br />Trends<br />Competitors<br />Suppliers<br />Assets<br />Capabilities<br />Other<br />Regions<br />Needs<br />Existing<br />Strategic<br />Groups<br />Customers<br />1st Tier<br />Trends<br />Other<br />Industries<br />Other<br />Types of<br />Organizations<br />Non-Customers<br />2nd Tier<br />Non-Customers<br />3rd Tier<br />© Marc Sniukas <br />
  62. 62. Where do you create value...?<br />Value Innovation<br />© Marc Sniukas <br />Following Kim and Mauborgne “Blue Ocean Strategy” Harvard Business School Press, 2005<br />
  63. 63. How radical is your (new) strategy?<br />The Strategic Innovation Profile<br />© Marc Sniukas <br />
  64. 64. Which customers to target?<br />Market Innovation<br />© Marc Sniukas <br />
  65. 65. What‘s your business model like?<br />Business Model Innovation<br />© Marc Sniukas <br />
  66. 66. How to redefine the product?<br />Value Innovation<br />© Marc Sniukas <br />
  67. 67. What does the customer want?<br />The Empathy Map<br />© Marc Sniukas <br />What does he<br />THINK and FEEL?<br />Fears, worries, aspirations, wants, needs, frustrations,....<br />What does he<br />SEE?<br />Environment<br />Others<br />What does the market offer?<br />...<br />What does he<br />HEAR?<br />What others say<br />Influencers<br />Companies<br />...<br />What does he<br />DO?<br />Behaviors<br />Attitudes<br />Appearance<br />...<br />© Alex Osterwalder<br />
  68. 68. What‘s your value proposition?<br />The Strategy Canvas<br />© Marc Sniukas <br />high<br />low<br />Following Kim and Mauborgne “Blue Ocean Strategy” Harvard Business School Press, 2005<br />
  69. 69. 25 ways to reinvent your business<br />MARKET INNOVATION<br />#11 Target non-customers<br />#12 Target less profitable customers<br />#13 Target the least satisfied customers<br />#14 Target the chain of buyers<br />#15 Segment according to commonalities<br />#16 Segment according to circumstances <br />#17 Desegment the customer based<br />#1 Challenge industry assumptions<br />VALUE INNOVATION<br />#2 Offer complementary products and services<br />#3 Offer solutions and experiences<br />#4 Offer bundles<br />#5 Switch your appeal: functional versus emotional<br />#6 Focus on the job to be done<br />#7 Selectively eliminate, reduce, raise and create<br />#8 Look at subsitutes<br />#9 Expand the use of your assets and capabilities<br />#10 Look at the customer experience<br />BUSINESS MODEL INNOVATION<br />#18 Reinvent the customer interface (channels)<br />#19 Reinvent your customer relationships<br />#20 Invent new revenue streams<br />#21 Price differently<br />#22 Reinvent you cost base<br />#23 Re-assess your key activities<br />#24 Collaborate with suppliers, partners, the network and ecosystem<br />#25 Look at completely different industries<br />© Marc Sniukas <br />
  70. 70. © Marc Sniukas <br /><ul><li>Define the purpose, scope and focus of innovation activities
  71. 71. Mobilize the organization
  72. 72. Align business and innovation strategies
  73. 73. Build leadership alignment & commitment
  74. 74. Build a common language and understanding
  75. 75. Innovation audit – Assessing need and capabilities
  76. 76. Definition of goverance structures and processes
  77. 77. Definition of metrics
  78. 78. Identifying internal and external opportunities
  79. 79. Sensing, seeking and shaping opportunitiesDescribe the current business model
  80. 80. Explore and understand consumer and customer needs, motivations, behaviors
  81. 81. Understand emerging markets, industry and socio-ecological trends</li></ul>Setting the Stage<br /><ul><li>Bringing successful ideas to market
  82. 82. Financial impact
  83. 83. Incubation
  84. 84. Acceleration
  85. 85. Transition</li></ul>Business Model Innovation<br />Discovery<br />Commercialization<br />A Discovery-Driven Approach<br />Development<br /><ul><li>Turn ideas into market ready concepts
  86. 86. Road-test the idea portfolio with key stakeholders, consumers, internal and external
  87. 87. Prototyping, Technical feasibility
  88. 88. Experimentation & learning
  89. 89. Customer & stakeholder feedback
  90. 90. Business planning, venturing, secure founding
  91. 91. Decide of organizational and governance structures
  92. 92. Evolution & optimization</li></ul>Conversion<br /><ul><li>Develop and select ideas
  93. 93. Develop an idea portfolio
  94. 94. Idea Generation (In-house, cross-units, external)
  95. 95. Idea Evaluation
  96. 96. Idea Selection
  97. 97. Strategic decision making</li></li></ul><li>Formal<br />Focused<br />Open<br />Inside<br />NewCo<br />Innovation tensions<br />Revolutionary<br />Evolutionary<br />Outside<br />CoreCo<br />Holistic<br />Closed<br />Informal<br />How do you organize your innovation activities?<br />The Innovation Wheel<br />© Marc Sniukas <br />
  98. 98. Business Model Canvas<br />Download the poster for free at http://www.businessmodelalchemist.com/tools<br />© Marc Sniukas - Doujak Corporate Development<br />
  99. 99. Reinventing your Business<br />Any new ideas?<br />© Marc Sniukas - Doujak Corporate Development<br />Exercise<br />
  100. 100. Small Group Discussions<br />What was new to me?<br />What I found most interesting / irritating?<br />How could I get started in my organisation?<br />Please discuss in small groups of 4-5 people<br />© Marc Sniukas - Doujak Corporate Development<br />Exercise<br />20 minutes<br />
  101. 101. Any Questions?<br />
  102. 102. How to get started?<br />Meet with your (management) team<br />Goal = Setting the stage<br />Answer these questions:<br />Does your organization understand the need for innovation/change/transformation/renewal?<br />Is your organization committed to innovation/change/transformation/renewal?<br />Does it have the right capabilities for innovation/change/transformation/renewal?<br />Agree on a common view<br />Map out the current business model & value proposition<br />Downloads: „Reinventing your Business Discussion Guide“ and „Business Model Handbook“.<br />Define the purpose of your innovation activities, align business and innovation strategies<br />Agree on how to proceed<br />Define governance structures, processes and metrics<br />A leadership agenda<br />© Marc Sniukas - Doujak Corporate Development<br />Action Steps<br />
  103. 103. © Marc Sniukas - Doujak Corporate Development<br />
  104. 104. © Marc Sniukas - Doujak Corporate Development<br />
  105. 105. © Marc Sniukas - Doujak Corporate Development<br />
  106. 106. © Marc Sniukas - Doujak Corporate Development<br />
  107. 107. www.nin.com<br />© Marc Sniukas - Doujak Corporate Development<br />
  108. 108. Want more?<br />www.doujak.eu<br />www.sniukas.com<br />© Marc Sniukas - Doujak Corporate Development<br />
  109. 109. Research<br />Dynamic Capabilities (i.e. activities, processes and routines) leading to Business Model Innovation.<br />Managerial capabilities for creating, developing and leading these capabilities.<br />Would you like to participate?<br />© Marc Sniukas - Doujak Corporate Development<br />
  110. 110. Contact Details<br />Marc Sniukas<br />Doujak Corporate Development<br />Lainzer Strasse 80<br />A-1130 Vienna<br />Mobile: +43 699 122 333<br />marc.sniukas@doujak.eu<br />© Marc Sniukas - Doujak Corporate Development<br />
  111. 111. “The difficulty lies not in the new ideas,...<br />…but in escaping from the old ones.”<br />John Maynard Keynes<br />© Marc Sniukas - Doujak Corporate Development<br />
  112. 112. Next sessions<br />20.05.2010 Strategy ImplementationHow to engage the Organization. <br />06.07.2010 The Living OrganizationSystems Thinking and Management.<br />Looking forward to seeing you again...<br />© Marc Sniukas - Doujak Corporate Development<br />
  113. 113. Worth reading<br />Download: Reshaping Strategyhttp://www.sniukas.com/2009/11/reshaping-strategy/<br />Download: Discussion Guidehttp://www.sniukas.com/2010/03/discussion-guide-challenging-your-strategy/<br />A list with books on amazon.dehttp://www.amazon.de/Innovation-for-paperJam/lm/R3R3Z352PL1O8A/<br />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<br />Further references<br />© Marc Sniukas - Doujak Corporate Development<br />
  114. 114. Thanks for your attention!<br />Looking forward to seeing you again...<br />

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