ObjectiveA Brief Introduction to:Innovation ManagementTarget AudienceNotice This is an individual opinion irrelevant of GE strategy either globally or locally. Some of the materials used in this slide are copyright protected. Please keep it internally.
Innovation Management RECAP - Why Innovation? Differentiator thus Growth Driver (vs. Saving) Long-Term Sustainability Driver vs. Short-Term Spoke “Business has only two basic functions- marketing and innovation.” - Peter Drucker
Innovation Management RECAP - Why Innovation? Unique Function of Homo Sapiens Take Greater Advantage of Human Capital by Embracing Creativity vs. Sound Operational Device Creativity Induces Motivation, thus Performance
Innovation Management RECAP - What is Innovation?Innovations are "the carrying out of new combinations." - Joseph SchumpeterIt’s about introducing novel / tweaked valuesin society: Product / Process / Marketing Continual / Non-Continual Renovation (Kaizen)
Innovation ManagementRECAP - 3 Megatrends around Innovation Industrial / Informational / Technological Experiential Closed Open Commercial Social
Innovation Management Why Innovation Management? AS-IS TO-BE Sole Coincidence Institutional Control R&D’s Responsibility Everybody’s Responsibility Static Budget Allocation Dynamic Portfolio Mgmt Secondary to D2D Primary Mission of Operations Company / CEO Local Ad Hoc Operation Designated+Shared Process by PL / Knowledge Product-out Market-in Cost Center Mentality Profit Center Mentality
Innovation ManagementTaking Analogy from Governance ModelCtrl Approach Risk Approach - Bottom up - Top down - Authoritative - Strategic - Thorough - Selective - Feedback - Feed forwardR&D Innovation - Technology out - Market in - Allocation - Investment - X-Biz Fairness - Weighted
Innovation ManagementMISSION - Sensor for Megatrends Wherever Is beyond Direct Interests of Day-to-Day Business Exploring Deep Implicit Wants
Innovation ManagementMISSION - Taktstock for Rhythmical Innovation Opportunity Search / CatalogGemba Market Multi-Functional Screening / Matching Innovation + Biz Ideation Board F it Biz Modeling / F easible Pilot Test Needs Seeds A ttractiveInnovation Fund
Innovation ManagementMISSION - Feeder to Incubation PipelineAssess Design Pilot Scale Launch Scale IM Lead BU Lead / IM Consult
Innovation ManagementMISSION - Support CEO in Building Innovation DNA Grow Innovation “neuron” throughout the Company Thoroughly strategize up to embedding in performance evaluation Cultural events for awareness / interest Open, Creative People / Culture Strategic Alignment CEO Commitment
Innovation Management MISSION - Mobilize People and Knowledge Framework / Evangelize Motif R&D Marketing Suppliers IncentivizeCatalyze Indirect Manu- Connect Functions facturing Distributors Retailers Consumers Open, Creative People / Culture Strategic Alignment CEO Commitment
Innovation Management TOOLS for Facilitating InnovationIdeation / Co-creation Facility(e.g. “Future Center”) Communication / KM Tools Professional Facilitators Crowdsourcing Innovation Governance Tools Market / Customer Knowledge
Innovation Management Why Designated Innovation Mgmt?Disruptive Innovations, by its nature, require good Is a long-term on-goingdetachment from existing biz investment vs. short-term profit making Involves unique know-hows (vs. luck) esp. for large entities with multiple BUs Requires to fairly represent X- Implicit view to “Innovation” is business / X-functional stakes different bet. CEO and employees Can embrace merit of scale in general market research, etc.
Innovation Management Watch-outs Innovation is FRAGILE! First candidate for cost reduction Underlying skepticism from middle managementMixed up with Biz Planning teams Occasionally the name is used for nominal role for rewarding / rest
Innovation Management Key to Success – Consistent Ecosystem CEO / Gov’ce Team Every mgrs / emps with Struct Innovation ResponsibilityDomainPriorities ure Process & PolicyDO’s / DONT’s Reward & Recog. KM System Strate Syste gy ms SharedOpen, Values Trend Sensingoptimisticleadership Ideation / Modeling Experiments Style Skills Staff Creative / Proactive Rcs
Innovation Management … and beyond. History Economic SystemCulture Ethnicity Society Nationality
Disclaimer This presentation is the authors personal opinion and is NOT the representation of his employer or any organization he is associated with. Some of the materials used in this presentation are (possibly) copy-right protected. Even without any commercial purpose, please kindly advice if there is any issue.
Author Shake the World! Junichi OTAGAKI Innovation Manager / Social Media Navigator USCPA Japanese: @jotagaki English: @jo_overseas Thanks to my Innovation Gurus: