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THE MYTH OF INNOVATION
STRATEGIES FOR CORPORATE SURVIVAL
Benny Corvers
25 March 2014
2
CLIENT Market, Sell, Design, Produce & Deliver
IN THE BEGINNING, THERE WAS A START-UP
3
CLIENT Market, Sell, Design, Produce & Deliver
IT ATTRACTED MANY CLIENTS
4
CLIENT
LOADS OF CLIENTS, ACTUALLY …
Market, Sell, Design, Produce & Deliver
5
TIME FOR OUR FIRST NEW HIRE!
6
CLIENT
SO ADMIN SUPPORT SHOULD DO THE TRICK FOR NOW
Market, Sell, Design, Produce & Deliver
Admin
7
CLIENT
THEN WE DECIDED TO SPLIT SALES & OPERATIONS
Sales & Marketing
Admin
Design, Production &
Transport
8
CLIENT
BUT THOSE DAMN CLIENTS KEPT COMING …
Sales & Marketing
Admin
Design, Production &
Transport
9
TIME FOR OUR SECOND HIRE!
10
CLIENT
SO WE ADDED OUR FIRST MANAGEMENT LAYER
Sales & Marketing
Admin
Design, Production &
Transport
Sales Management
11
CLIENT
THEN WE SPLIT UP OPERATIONS
Sales & Marketing
Admin
Design
Sales Management
Production &
Transport
12
CLIENT
AND WE ISOLATED MARKETING FROM SALES
Sales
Admin
Design
Sales Management
Marketing
Production &
Transport
13
AND WHY NOT CREATE A SPECIALIZED PRESALES UNIT?
Sales
Admin
Design
Sales Management
Production &
Transport
Marketing Pr...
14
NOW WE NEED SOMEONE TO TACKLE THE COMPLEXITY
Sales
Admin
Design
Sales Management
Production &
Transport
Marketing Presa...
15
WHO STARTED BY CREATING TWO MORE UNITS
Sales
Admin
Sales Management
Design TransportMarketing Presales Production
Opera...
16
AND ALSO THE SUPPORT DEPARTMENT KEPT GROWING
Sales
Admin
Sales Management
Design TransportMarketing Presales Production...
17
EVEN THE OPERATIONS NOW NEED SUPPORT STAFF
Sales
Admin
Sales Management
Design TransportMarketing Presales Production
O...
18
IN THE END, IT WAS CLEAR WE LACKED LEADERSHIP
19
SO WE ADDED SOME BIG HONCHOS ON TOP
Admin
Design
Sales Director
TransportMarketing Presales
Supervisor
Production
Invoi...
20
WE ARE NOW LOSING SIGHT OF OUR CLIENT
21
OUR ORGANIZATION HAS BECOME TERRIBLY COMPLEX
22
AND WE ARE ALL LOCKED UP IN OUR FUNCTIONAL SILOS
23
THE END RESULT? WE ARE LOST …
24
HOW CAN WE BECOME MORE ‘INNOVATIVE’?
TEN ‘PROVEN’ RECIPES
#1 Change the company culture
#2 Hire an Innovation Manager
#...
25
MYTH #1: IT’S A BIG BANG
26
INCEPTION
ORGANIZATIONAL LIFE CYCLES
TIME
SALESVOLUME
GROWTH
MATURITY
DECLINE
* Source: Smith et al. (1985)
27
MYTH #2: IT’S ABOUT LUCKY SHOTS
28
TRENDS GAZELLEN ARE NO LUCKY SHOTS
Actions Difference
New methods for producing/delivering
products or services
+6%
Log...
29
MYTH #3: IT’S ABOUT CULTURE
30
MYTH #4: IT’S ABOUT YOUNG PEOPLE AND START-UPS
31
MYTH #5: IT’S ABOUT TECHNOLOGY
Technology Innovation Social Innovation
Technological knowledge
Investment in ICT
Resear...
32
FIVE MYTHS OF INNOVATION
INNOVATION
It’s a big
bang
It’s about
lucky shots
It’s about
Culture
It’s only for
start-ups
I...
33
CLIENT
SO HOW CAN WE GET BACK TO THE EARLY DAYS?
Market, Sell, Design, Produce & Deliver
Clients take center stage
A si...
34
FIGHTING THE FANATIC FRACTIONALIZATION OF FUNCTIONS
FUNCTIONAL STRUCTURE
Function 1 F2 Fn…
FLOW
BASED
STRUCTURE
Client ...
35
WITH SELF-ORGANISING MULTI-DISCIPLINARY TEAMS
CLIENT
PROSPECTING
ACCOUNT
MANAGEMENT
BUSINESS
ADVISORY
SKILLS
PRESALES
E...
36
IN AUTONOMOUS CLIENT-FOCUSED MINI-COMPANIES
LARGE
ACCOUNT
MANAGER
MARKETING
SPECIALIST
BUSINESS
CONSULTANT
PRESALES
CON...
37
WITH MORE ENGAGEMENT AND MOTIVATION
JOB CONTROL
JOB DEMANDS
LOW-STRAIN
JOBS
ACTIVE
JOBS
HIGH-STRAIN
JOBS
PASSIVE
JOBS
M...
38
Client-Centric
Organization
THE END RESULT
Ownership Motivation
Agility
Reduced
Complexity
Better
Coordination
CLIENT
39
THE IMPLICATIONS FOR IT DEPARTMENTS
CLIENT
Client-Centric
Organization
Enabling horizontal
coordination
Catering for
Di...
40
MORE ABOUT WORKPLACE INNOVATION
41
IT CAN BE DONE …
The Myth of Innovation - Strategies for Corporate Survival
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The Myth of Innovation - Strategies for Corporate Survival

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Mature organizations, confronted with their lack of innovative capabilities, readily turn to standard recipes. In an effort to create a quick fix, they blindly follow the core myths about innovation.

Creating a sustainable stratgegy for survival requires an integral approach though, one that looks beyond technological innovation and includes the systemic dimensions of the oranization's social fabric.

Published in: Business
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The Myth of Innovation - Strategies for Corporate Survival

  1. 1. THE MYTH OF INNOVATION STRATEGIES FOR CORPORATE SURVIVAL Benny Corvers 25 March 2014
  2. 2. 2 CLIENT Market, Sell, Design, Produce & Deliver IN THE BEGINNING, THERE WAS A START-UP
  3. 3. 3 CLIENT Market, Sell, Design, Produce & Deliver IT ATTRACTED MANY CLIENTS
  4. 4. 4 CLIENT LOADS OF CLIENTS, ACTUALLY … Market, Sell, Design, Produce & Deliver
  5. 5. 5 TIME FOR OUR FIRST NEW HIRE!
  6. 6. 6 CLIENT SO ADMIN SUPPORT SHOULD DO THE TRICK FOR NOW Market, Sell, Design, Produce & Deliver Admin
  7. 7. 7 CLIENT THEN WE DECIDED TO SPLIT SALES & OPERATIONS Sales & Marketing Admin Design, Production & Transport
  8. 8. 8 CLIENT BUT THOSE DAMN CLIENTS KEPT COMING … Sales & Marketing Admin Design, Production & Transport
  9. 9. 9 TIME FOR OUR SECOND HIRE!
  10. 10. 10 CLIENT SO WE ADDED OUR FIRST MANAGEMENT LAYER Sales & Marketing Admin Design, Production & Transport Sales Management
  11. 11. 11 CLIENT THEN WE SPLIT UP OPERATIONS Sales & Marketing Admin Design Sales Management Production & Transport
  12. 12. 12 CLIENT AND WE ISOLATED MARKETING FROM SALES Sales Admin Design Sales Management Marketing Production & Transport
  13. 13. 13 AND WHY NOT CREATE A SPECIALIZED PRESALES UNIT? Sales Admin Design Sales Management Production & Transport Marketing Presales
  14. 14. 14 NOW WE NEED SOMEONE TO TACKLE THE COMPLEXITY Sales Admin Design Sales Management Production & Transport Marketing Presales Operations Manager
  15. 15. 15 WHO STARTED BY CREATING TWO MORE UNITS Sales Admin Sales Management Design TransportMarketing Presales Production Operations Manager
  16. 16. 16 AND ALSO THE SUPPORT DEPARTMENT KEPT GROWING Sales Admin Sales Management Design TransportMarketing Presales Production Operations Manager Invoicing
  17. 17. 17 EVEN THE OPERATIONS NOW NEED SUPPORT STAFF Sales Admin Sales Management Design TransportMarketing Presales Production Operations Manager Invoicing Quality Warehouse
  18. 18. 18 IN THE END, IT WAS CLEAR WE LACKED LEADERSHIP
  19. 19. 19 SO WE ADDED SOME BIG HONCHOS ON TOP Admin Design Sales Director TransportMarketing Presales Supervisor Production Invoicing Quality Warehouse CTO COOCEO Sales
  20. 20. 20 WE ARE NOW LOSING SIGHT OF OUR CLIENT
  21. 21. 21 OUR ORGANIZATION HAS BECOME TERRIBLY COMPLEX
  22. 22. 22 AND WE ARE ALL LOCKED UP IN OUR FUNCTIONAL SILOS
  23. 23. 23 THE END RESULT? WE ARE LOST …
  24. 24. 24 HOW CAN WE BECOME MORE ‘INNOVATIVE’? TEN ‘PROVEN’ RECIPES #1 Change the company culture #2 Hire an Innovation Manager #3 Set up an Innovation Board #4 Provide some funding #5 Create a spin-off or acquire a start-up #6 Set up an innovation pipeline #7 Roll-out a training program #8 Kick-in new incentives #9 Set up co-creation initiatives #10 Start from #1
  25. 25. 25 MYTH #1: IT’S A BIG BANG
  26. 26. 26 INCEPTION ORGANIZATIONAL LIFE CYCLES TIME SALESVOLUME GROWTH MATURITY DECLINE * Source: Smith et al. (1985)
  27. 27. 27 MYTH #2: IT’S ABOUT LUCKY SHOTS
  28. 28. 28 TRENDS GAZELLEN ARE NO LUCKY SHOTS Actions Difference New methods for producing/delivering products or services +6% Logistics innovation +28% Technological innovation +6% Organization design +15% Human resources management +19% * Source: Hendrik Delagrange (2011) - SERV
  29. 29. 29 MYTH #3: IT’S ABOUT CULTURE
  30. 30. 30 MYTH #4: IT’S ABOUT YOUNG PEOPLE AND START-UPS
  31. 31. 31 MYTH #5: IT’S ABOUT TECHNOLOGY Technology Innovation Social Innovation Technological knowledge Investment in ICT Research & Development Knowledge creation Management knowledge Investment in education Organization & Collaboration Acquire, integrate and apply new knowledge Explains 25% of innovation success Explains 75% of innovation success * Source: Henk Volberda, Erasmus University Rotterdam (2013)
  32. 32. 32 FIVE MYTHS OF INNOVATION INNOVATION It’s a big bang It’s about lucky shots It’s about Culture It’s only for start-ups It’s about Technology
  33. 33. 33 CLIENT SO HOW CAN WE GET BACK TO THE EARLY DAYS? Market, Sell, Design, Produce & Deliver Clients take center stage A simple and transparent organization Efficiency and low overhead cost Agility to change course
  34. 34. 34 FIGHTING THE FANATIC FRACTIONALIZATION OF FUNCTIONS FUNCTIONAL STRUCTURE Function 1 F2 Fn… FLOW BASED STRUCTURE Client Order 1 O2 On …
  35. 35. 35 WITH SELF-ORGANISING MULTI-DISCIPLINARY TEAMS CLIENT PROSPECTING ACCOUNT MANAGEMENT BUSINESS ADVISORY SKILLS PRESALES EXPERTISE PRICING KNOWLEDGE TECHNICAL WRITING SKILLS OPERATIONS EXPERTISE HR EXPERTISE
  36. 36. 36 IN AUTONOMOUS CLIENT-FOCUSED MINI-COMPANIES LARGE ACCOUNT MANAGER MARKETING SPECIALIST BUSINESS CONSULTANT PRESALES CONSULTANT PRODUCT MANAGER HR SPECIALIST ACCOUNT MANAGERS MARKETING SPECIALIST BUSINESS CONSULTANT TECHNICAL WRITER QUALITY MANAGER FINANCE SPECIALIST LARGE ACCOUNT MANAGER ACCOUNT MANAGERS BUSINESS CONSULTANT PRESALES CONSULTANT LEGAL OFFICERS BUDGET & CONTROL SPECIALIST STREAM A STREAM B STREAM C
  37. 37. 37 WITH MORE ENGAGEMENT AND MOTIVATION JOB CONTROL JOB DEMANDS LOW-STRAIN JOBS ACTIVE JOBS HIGH-STRAIN JOBS PASSIVE JOBS MOTIVATION & LEARNING STRESS * Source: Karasek, 1979
  38. 38. 38 Client-Centric Organization THE END RESULT Ownership Motivation Agility Reduced Complexity Better Coordination CLIENT
  39. 39. 39 THE IMPLICATIONS FOR IT DEPARTMENTS CLIENT Client-Centric Organization Enabling horizontal coordination Catering for Diversity Let people focus on the primary process Supporting Client Centricity
  40. 40. 40 MORE ABOUT WORKPLACE INNOVATION
  41. 41. 41 IT CAN BE DONE …

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