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“The organisational designs that support innovation arevery different from those that support delivery ofcurrent performan...
Today You Will• Get an overview about the innovation process• How companies can define an innovation  governance model?• H...
Amazon vs Barnes Noble
Understanding innovation
Invention vs Innovation• Invention is the process • Innovation is the act of  of discovering something   introducing that ...
Journey to innovation
What is your Purpose?• Understand your business strategy• Its not just a matter of being better at what you do; it’s a mat...
Define Innovation Governance Model                                   Where and When to    Why Innovate?                   ...
Kinds of Innovation           Exploit                     Explore• Achieve maximum          •   Develop new  performance d...
Organising for Performance          EXPLOITATION
Advantages                 Disadvantages• Predictable               • Innovation does not• Focus on value creation     cha...
Organising for Breakthrough        Innovation           Exploration
What is required?•   Imagination•   Thinking outside the box•   Willingness to take significant risk•   Accept failures (c...
How to do it?Organisational norms supporting     Organisational models  innovation• Establish multiple R&D groups         ...
Limitations• Not easy to realise benefits• Highly risky• Suitable for universities but difficult to implement in  corporat...
Combining Top Down and Bottom Up           Innovation         Top Down innovation         Somewhere Here …        Bottom U...
Key Learning …Develop an innovation governance systemthat allows to:• search for new opportunities• select among identifie...
Organizing for innovation
Organizing for innovation
Organizing for innovation
Organizing for innovation
Organizing for innovation
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Organizing for innovation

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"Innovation that does not align with company strategy and does not provide it a distinctive position in the market has little value from a strategic perspective."

Today's businesses are under constant pressure to innovate and stay relevant to their customer or lose their market share to other competitors.

In this presentation I will be looking to answer the following three questions about how businesses can organise for innovation:

1- How to organise to innovate within the scope of existing businesses?
2- How to organise to radically innovate beyond the scope of existing businesses into new markets?
3- How to go about implementing an Innovation Governance Process to achieve business objectives?

Published in: Business, Technology
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Organizing for innovation

  1. 1. “The organisational designs that support innovation arevery different from those that support delivery ofcurrent performance.” John Roberts, Stanford Graduate School of BusinessOrganising for Innovation Shoaib Shaukat Iteration Manager – Customer Systems REA-GROUP @shoaibshaukat | shoaibshaukat.com
  2. 2. Today You Will• Get an overview about the innovation process• How companies can define an innovation governance model?• How companies can organise for performance and growth?• How companies can organise for radical innovation?
  3. 3. Amazon vs Barnes Noble
  4. 4. Understanding innovation
  5. 5. Invention vs Innovation• Invention is the process • Innovation is the act of of discovering something introducing that idea new or come up with an into the market and idea commercialising it• an idea
  6. 6. Journey to innovation
  7. 7. What is your Purpose?• Understand your business strategy• Its not just a matter of being better at what you do; it’s a matter of being different at what you do• Good strategy makes the company different and gives it a unique position
  8. 8. Define Innovation Governance Model Where and When to Why Innovate? Innovate? And How Much Innovation? Ne ation Cr gy w e ate Bu s tr sin ain ess ch lue Va• How? • Processes Creativity• Portfolios With whom? • Skills• Commercialisation • Values• Performance Measurement Who? • Mindset/Behaviours
  9. 9. Kinds of Innovation Exploit Explore• Achieve maximum • Develop new performance delivering opportunities the current strategy • High degree of• Requires focus and uncertainty precise execution • Radical innovations• Focus on continuous outside the current innovation in current business landscape business • Requires some slack
  10. 10. Organising for Performance EXPLOITATION
  11. 11. Advantages Disadvantages• Predictable • Innovation does not• Focus on value creation change the scope of• Easy to measure business • No radical innovation
  12. 12. Organising for Breakthrough Innovation Exploration
  13. 13. What is required?• Imagination• Thinking outside the box• Willingness to take significant risk• Accept failures (celebrate them)• Openness to the new and untried• Slack resources to generate and develop ideas
  14. 14. How to do it?Organisational norms supporting Organisational models innovation• Establish multiple R&D groups supporting innovation• Do not attempt to coordinate and rationalise activity across • Innovation Project Team them• Encourage direct (e.g. IBM) communication among the • Expert Network groups• Give them the freedom and • Shared Services autonomy to decide how and Organisation what to work on• Performance measures & • Innovation Community of rewards: subjective evaluations Practice or milestones achieved (not • Ambidextrous financial numbers generated) Organisation • Innovation Council
  15. 15. Limitations• Not easy to realise benefits• Highly risky• Suitable for universities but difficult to implement in corporates• Difficult to measure
  16. 16. Combining Top Down and Bottom Up Innovation Top Down innovation Somewhere Here … Bottom Up innovation
  17. 17. Key Learning …Develop an innovation governance systemthat allows to:• search for new opportunities• select among identified opportunities• build new businesses• run existing ones• exit others… all at once

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