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Innovate or die
This document provides an overview of key reasons for failure to innovate within organizations. It identifies the top ten causes of failure to innovate as: confusing the role of innovation, failing to clarify innovation goals, not recognizing innovation barriers, failing to engage the entire organization, lack of recognition of the importance of communication, underestimating the need for innovation resources, having an unclear process for selecting innovation projects, failure to create an innovation culture, and treating innovation as a destination rather than a journey. The document stresses that innovation is essential for success and provides frameworks to help organizations better foster innovation.
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Innovate or die
- 1. Innovate to succeedInnovateto failIntroduction to Foundations of Business Innovation September 8, 2011It’s about balancing the risk of innovating against the risk of not innovating
- 2. Why are wehere?Philosophical reasons: Take the course SCS 1724 Essential Western PhilosophersMeta-physical reasons:Read Stephen Hawking’s book “The Grand Design”To identify ways we can increase the likelihood of innovation success in our organizations Take SCS 2539 Foundations of Business InnovationToday we will provide an overview of the Business Innovation course by identifying:“The top ten causes of failure to innovate”
- 3. Ten key causesof failure:Confuse the role of innovationFail to clarify innovation goalsDon’t recognize innovation barriersFail to engage entire organizationLack of recognition of importance of communicationUnderestimate need for innovation resourcesUnclear process for selecting innovation projectsRecognize the importance of change managementFailure to create an innovation cultureRecognize innovation is a journey not a destination
- 4. 1. Confuse therole of innovationInnovation is:Introduction of a new good, or a new quality of a goodIntroduction of a new method of production (need not need include new technologies)The opening of a new market The securing of a new source of supplyThe creation of a new organization Joseph Schumpeter
- 5. Identify Innovation DriversInternaldriversUnexpected eventContradictionChange of work processChange in industry structure External DriversSocio-economic changesPolitical changesTechnology changesDrucker‘sInnovationFramework
- 6. Innovation not justtechnology developmentInnovation includes:Product Innovation
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- 9. Business model Innovation………..Greatest opportunities seen in business model innovation.Can be applied to both private and public organizationsIf your organization doesn’t innovate, someone else will..
- 10. Understanding Process InnovationAchange in the way a product or service is manufactured, created, or distributed
- 11. Process innovation involvesimplementation ofnew or improved production or delivery method.
- 12. Process innovations canbe intended to decrease unit costs of production or delivery, to increase quality, or to produce or deliver new or significantly improved products. Understanding Service InnovationMajority of individuals in Canada (and US) work in service industry
- 13. Even where peoplework in manufacturing, many of these individuals providesupport services
- 14. Service innovation isbiggestopportunity to increase competitiveness
- 15. Improvements in serviceinnovation can be measured in terms of increases productivity and value added Opportunities for Service InnovationContributes to competitive advantage
- 16. Requires specific socialand technical skills
- 17. Involves development andnew technology application
- 18. Costly to developneeded specialist and generalist skills
- 19. Requires integrated thinkingand agile environment
- 20. Can be implementedin all service areas
- 21. Most significant possibilitiesin financial and medical servicesUnderstanding Business Model Innovation New ways of doing business can also increase competitiveness and productivity by:
- 22. Creating enhanced utilityfor the customer
- 23. Enabling a differentpricing strategy
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- 25. To truly disrupta market a technology innovationrequires a business model innovation2. Fail to clarify innovation goalsImprove top line(revenues/market share)
- 26. Improve bottom line(profit/cost effectiveness)
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- 28. Improve shareholder/stakeholder perceivedvalue "Would you tell me, please, which way I ought to go from here?""That depends a good deal on where you want to get to," said the Cat."I don’t much care where--" said Alice."Then it doesn’t matter which way you go," said the Cat."--so long as I get SOMEWHERE," Alice added as an explanation."Oh, you’re sure to do that," said the Cat, "if you only walk long enough." Lewis Carroll
- 29. OrganicRenewalAcquisitionRenewalRenewal InnovationRecognize differenttypes of innovation EnhancementInnovationExperientialInnovationMarketingInnovationLine ExtensionInnovationPlatformInnovationProductInnovationHarvest& ExitDisruptiveInnovationApplicationInnovationIntegrationInnovationProcessInnovationValue MigrationInnovationValue EngineeringInnovationGeoffrey Moore Dealing with Darwin
- 30. 3. Fail torecognize innovation barriersOver time successful organizations developProcesses and procedures
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Editor's Notes
- #5 “The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man” George Bernard Shaw
- #8 Identification and targeting of key processes that have considerable impact on the organization’s ability to: Achieve its short, medium and long term Strategic Goals and ObjectivesIf improved, enable the organization to realize a high Return on the Investment (ROI) Identification of target processes for which complaints have been received from customers, trading partners or internal staff and which can result in productivity improvement Achieving initial success with BPM projects in one area of the organization, will create enthusiasm and buy-in from other groups.
- #12 Improving Performance: The ultimate reason for a firm to innovate is to improve its performance, for example by increasing demand or reducing costs. Market Advantage: A new product or process can be a source of market advantage for the firm. Productivity Enhancement: The firm gains a cost advantage over its competitors, allowing a higher mark-up at the prevailing market price or, depending on the elasticity of demand, the use of a combination of lower price and higher mark-up than its competitors to gain market share and increase profits. Product Innovation: the firm can gain a competitive advantage by introducing a new product, which allows it to increase demand and mark-ups.Product Differentiation: Firms can also increase demand through product differentiation, by targeting new markets and by influencing demand for existing products.Changes in Organizational Methods: Firms can improve the efficiency and quality of their operations, thereby increasing demand or reducing costs.Improving Production Processes: Innovation can also improve performance by increasing the firm’s ability to innovate. Improving the capabilities of production processes can make it possible to develop a new range of products, and new organisational practices can improve the firm’s ability to gain and create new knowledge that can be used to develop other innovations.
- #17 Recreated from Peter Skarzynski and Rowan Gibson,Building A Systemic Innovation Capability , Harvard Business Review, 2008. Fig 11.1
- #28 Ref. PaulTrott p. 97.