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The (corporate) architecture of strategy and innovation

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Christian Rangens presentation at Strategy Summit 2015.

Published in: Business

The (corporate) architecture of strategy and innovation

  1. 1. The architecture of strategy & transformation
  2. 2. What…?!?!
  3. 3. ..... Cut costs and defend the core business Let’s analyzeI want to see the financials Your typical Board of Directors or Top Managemement teams
  4. 4. Cost-cutting$$$
  5. 5. Transformational capacity Legacy core business
  6. 6. Escape dominant logic1
  7. 7. Design astructure for transformation 2
  8. 8. 3 kinds of innovation ClayChristensen,Harvard
  9. 9. Efficiency-based innovations LEAN, Simplify Cutcosts, Downsizing, Frees up, preserves capital STEP: Statoil Technical EfficiencyProgram
  10. 10. Performance –improving innovations Improve whatalready is Product upgrades Limiteduse of capital Nordan: Smart Doors
  11. 11. Market-creating innovations Create new business models+ Create newcustomers Putcapital to use Most valueis created Shackleton, Zaptec, Lyse Fiber
  12. 12. …most understand …many thinkabout ….few grasp
  13. 13. What leaders do HermanaIbarra,INSEAD
  14. 14. ‘’Doer’’
  15. 15. ‘’Mobilizer’’
  16. 16. ‘’Strategyzers’’
  17. 17. ‘’Architects’’
  18. 18. Makinginnovationhappen RitaMcGrath,Columbia
  19. 19. ”The problem is NOT new ideas”
  20. 20. The problem is the system, processes, methods, tools and resource allocation.
  21. 21. …it’s the HOW of the organization
  22. 22. Innovation proficiency Ideas & Discovery Idea development Follow exponential technologies Trend hunting Basic research Incubation Incubation Testing, Prototyping Market creation Strategy & business model experiments Acceleration Ramp-up Scale Significant investments
  23. 23. .....runs 2000+business model experiments peryear
  24. 24. ‘’Weplant seeds that may take 7+ years to bearfruits’’
  25. 25. ‘‘…ifwe needed financial results in 2-3 years, most of ourthingswouldnever havehappened’’
  26. 26. How can youbuild an architecture of transformation?
  27. 27. From a singular logic to a system logic Ideas & Discovery Idea development Follow exponential technologies Trend hunting Basic research Incubation Incubation Testing, Prototyping Market creation Strategy & business model experiments Acceleration Ramp-up Scale Significant investments
  28. 28. M + S + M
  29. 29. M + S + M Architecture
  30. 30. Money + Structure + Mandate Architecture
  31. 31. Money #1 We have easy access to minor investment funds for new ideas and new ventures #2 As a company, we are truly great at making explorative investments
  32. 32. Structure #3 We have a unit (person, team, department) responsible for entirely new business development #4 We have a corporate structure for early ventures, strategy experiments, growth, spin-ins, spin-outs for new businesses
  33. 33. Mandate #5 We have an explicit growth ambition from the Board of Directors and Top Management #6 We have a license to think big, dream big and take calculated strategic risks
  34. 34. Transformational capacity Legacy core business
  35. 35. Your turn; Designing a transformation
  36. 36. Strategy & innovation cunsulting company Contact www.engage-innovate.com christian@engage-innovate.com Twitter: @engageinnovate Visit us at Innovation Dock

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