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Miodrag Kostić, CMC
Innovation training
Living and working in the USA for 16 yearsLiving and working in the USA for 16 years
Training: “Japanese model for business in Serbia”Training: “Japanese model for business in Serbia”
18.03.2014 - Belgrade Chamber of Commerce18.03.2014 - Belgrade Chamber of Commerce
Public trainingPublic training:: Business improvements using leanBusiness improvements using lean
methodologymethodology –– Belgrade Chamber of CommerceBelgrade Chamber of Commerce -- March 2016March 2016
Miodrag Kostić
What is the main goal of this workshop?
How much do we know of what we don’t know?
Challenge
No. 1
“Any fool can know. The point is to understand.”
― Albert Einstein
How much do we understand of what we know?
Challenge
No. 2
“Easy to understand, hard to apply!”
-- Marshal Goldsmith
How do we apply of what we understand?
Challenge
No. 3
Placed in all Japanese schools
“only” 1 % better
Why we need innovation?
How competitive is global marketplace?
CapGemini’s reports that since 2000, 52% of companies
in the Fortune 500 have either gone bankrupt, been
acquired or ceased to exist.
"It is not the strongest of the species that survives,
nor the most intelligent that survives.
It is the one that is the most adaptable to change”
-- Charles Darvin
Not strong or intelligent but innovative
What is innovationWhat is innovation??
What was invented by Ray TomlinsonWhat was invented by Ray Tomlinson??
Innovation = profitable new ideas
How do we know if new idea is profitableHow do we know if new idea is profitable??
CHALLENGE
What was Jules Verne's innovationWhat was Jules Verne's innovation??
“INNOVATION = profiting in some way (environmentally,
economically or socially) from the latent potential of ideas
which are new to your organization!”
-- CENTRIM, UK!
What isWhat is
innovation?innovation?
What must be theWhat must be the
result of innovationresult of innovation??
What company is thisWhat company is this??
Are they innovatorsAre they innovators??
1976 company value $3.000
Why?Why?
2018 company value over $1.000.000.000.000
How much was their company transformedHow much was their company transformed??
Is word ”innovation” noun or verbIs word ”innovation” noun or verb??
In grammar, it is a noun. But in business, it is a verb:
Implementing great ideas – transforming organization
Why are these companies most innovativeWhy are these companies most innovative??
Fast and effective transformation - change
“An organization's ability to learn,
and translate that learning into action rapidly,
is the ultimate competitive advantage!"
-- Jack Welch
Why is it called “digital transformation”Why is it called “digital transformation”
not ”digital innovation”not ”digital innovation”??
Result of innovation must be transformation/change
People were seeing and understanding innovation
as new ideas not as business transformation
Do people like to change?
What are yourWhat are your
innovation prioritiesinnovation priorities??
For the top chances / risks –
evaluation of readiness
Readiness of…
• internal / external communication
• know-how
• products and services
• business model(s)
• processes
Digital Transformation
In der Fabrik der Zukunft sind Prozesse
weitgehend automatisiert.
Daten von Maschinen und Objekten werden über
Sensoren gesammelt und miteinander in Verbindung
gebracht. Diese Prozesse werden durch eine kleine
Gruppe hochqualifizierter Spezialisten gesteuert und
überwacht. Andere Unternehmen der Wertschöp­
fungskette werden in die Datenströme aktiv einge­
bunden.
Industrielle 3D­­Drucker und additive Fertigungsme­­
thoden finden Einzug in die industrielle Fertigung. Der
Kunde wird als Partner gesehen und bereits in die
frühe Ideenphase eingebunden.
3D­Druck und
additive Fertigung
Fabrik der Zukunft
Das Ziel ist immer die Entwicklung erfolgsverspre-
chender, innovativer Produkte, Dienstleistungen oder
Geschäftsmodelle.
Verändert wird der Innovationsprozess, dieser ist über die
Unternehmensgrenzen hinaus offen.
Das Zusammenspiel von internen und externen Ideen,
Technologien, Prozessen und Vertriebswegen bezieht die
Unternehmensumwelt aktiv in den Innovations­prozess
ein.
Die Einbindung von Mitarbeitern, Kunden, Lieferan­ten,
Lead Usern, Universitäten, Mitbewerbern oder Unter­
nehmen aus anderen Branchen vergrößert das eigene
Innovationspotential.
GESCHÄFTSMODELLE UND WERTSCHÖPFUNGSKETTE
Open Innovation
Innovation für alle
GT3
Digital Transformation
GESCHÄFTSMODELLE UND WERTSCHÖPFUNGSKETTE
Speed Boat
SWOT Analyses
Where should you look for innovationWhere should you look for innovation??
Innovation radar
After you find your innovation prioritiesAfter you find your innovation priorities
How do you decide what to do firstHow do you decide what to do first??
DECISIONDECISION Criteria 1Criteria 1
Ease ofEase of
implementaimplementa
tiontion
CriteriaCriteria 22
Effect onEffect on
improvingimproving
motivationmotivation
CriteriaCriteria 33
The cost ofThe cost of
implementaimplementa
tiontion
CriteriaCriteria 44
Effect onEffect on
workwork
performanceperformance
TotalTotal
RelevancyRelevancy
1 Innovation 1
2 Innovation 2
3 Innovation 3
4 Innovation 4
5 Innovation 5
6 Innovation 6
Total
Decision making matrix
Where do youWhere do you
find opportunitiesfind opportunities
for innovationfor innovation??
CRISISCRISIS
challengechallenge opportunityopportunity
Challenge presents opportunity for improvement
www.dogshirts.com
What was my own crisisWhat was my own crisis??
challengechallenge opportunityopportunity
In 50 years, every street in London will be buried under
nine feet of manure – London Times Newspaper 1894
The crisis accelerating invention of automobileThe crisis accelerating invention of automobile
How people react to opportunities for innovation?
What is ”Peacock principle”?
What is ”Peacock principle”?What is ”Peacock principle”?
Peacock is having a “credible handicap”, he is credible
because by all logical reasoning he should be dead.
””Peacock principle” in actionPeacock principle” in action
$9.95 per square inch = $100.000 per 10 m2
1 square inch wooden sticks and
deed for land ownership in Hawaii
How do you createHow do you create
innovation ideasinnovation ideas??
“You can't just ask customers what they want and then
try to give that to them. By the time you get it built,
they'll want something new.” -- Steve Jobs
How to implementHow to implement
innovationinnovation??
Why do we need to planWhy do we need to plan??
"In preparing for battle I have
always
found that plans are useless, but
planning is indispensable."
-- Dwight D. Eisenhower
Who should participate in innovationWho should participate in innovation??
Who won the Toyota innovation award for 2012?
WhatWhat competences are needed for innovationcompetences are needed for innovation??
What are theWhat are the phases of working on innovationphases of working on innovation??
5 phases
5 phases of5 phases of
innovationinnovation
How do you get people motivated to innovateHow do you get people motivated to innovate??
1. Involving everybody 2. Visible impact
„„People would willingly support the decisions if theyPeople would willingly support the decisions if they
participated in the decision making processparticipated in the decision making process!“ –!“ – Ichak AdizesIchak Adizes
Very IMPORTANTNo. 1
Involving everybody
No. 2
Visible (measurable) impact
How to executeHow to execute
an action planan action plan??
How do you improve any business?How do you improve any business?
What did Henry Ford find out?
Did Japanese found it out too?Did Japanese found it out too?
What is the essence of KAIZEN?
Continuous improvement
“Sometimes when you innovate, you make mistakes. It is
best to admit them quickly and get on with improving your
other innovations.” -- Steve Jobs
Learning by “trial and error”
PlanPlan DoDo ActActCheckCheck
In his book, "Lean Startup," author Eric Ries described validated
learning as a small unit of progress that can be quickly verified to
determine whether a chosen direction is correct.
What are theWhat are the
obstacles to innovationobstacles to innovation??
“Everything that can be invented has been invented”
(Charles H Duell,. Commissioner of the US Patent Office 1899.)
“I think there is a market for about five computers”
(Thomas J. Watson, chairman of the Board of IBM, 1943.)
“640 K ought to be enough for anybody”
(Bill Gates, 1980.)
“We don’t like their sound. Groups of guitars are on the way out”
(Decca Recording Company when turning down the Beatles in 1962.)
How do you feel when youHow do you feel when you are toldare told
youyou “must” innovate“must” innovate??
Is it easy to implement innovation?Is it easy to implement innovation?
““Constantly think about how you could be doingConstantly think about how you could be doing
things better and questioning yourself!”things better and questioning yourself!”
-- Elon Musk-- Elon Musk
What did you learnWhat did you learn??
LESSIONS LEARNED?LESSIONS LEARNED?
This is only a short version of our full presentation,
50% of our innovation training contains interactive
exercises and case studies from domestic companies
IMPORTAN
T
THANK YOU!THANK YOU!
www.www.businessknowledge.bizbusinessknowledge.biz
www.miodragkostic.cowww.miodragkostic.co
mm

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Innovation training and transformational management in Belgrade Serbia

  • 2. Living and working in the USA for 16 yearsLiving and working in the USA for 16 years
  • 3.
  • 4. Training: “Japanese model for business in Serbia”Training: “Japanese model for business in Serbia” 18.03.2014 - Belgrade Chamber of Commerce18.03.2014 - Belgrade Chamber of Commerce
  • 5. Public trainingPublic training:: Business improvements using leanBusiness improvements using lean methodologymethodology –– Belgrade Chamber of CommerceBelgrade Chamber of Commerce -- March 2016March 2016
  • 6.
  • 8. What is the main goal of this workshop? How much do we know of what we don’t know? Challenge No. 1
  • 9. “Any fool can know. The point is to understand.” ― Albert Einstein How much do we understand of what we know? Challenge No. 2
  • 10. “Easy to understand, hard to apply!” -- Marshal Goldsmith How do we apply of what we understand? Challenge No. 3
  • 11. Placed in all Japanese schools “only” 1 % better
  • 12. Why we need innovation? How competitive is global marketplace?
  • 13. CapGemini’s reports that since 2000, 52% of companies in the Fortune 500 have either gone bankrupt, been acquired or ceased to exist.
  • 14. "It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change” -- Charles Darvin Not strong or intelligent but innovative
  • 15. What is innovationWhat is innovation??
  • 16. What was invented by Ray TomlinsonWhat was invented by Ray Tomlinson??
  • 17. Innovation = profitable new ideas How do we know if new idea is profitableHow do we know if new idea is profitable?? CHALLENGE
  • 18. What was Jules Verne's innovationWhat was Jules Verne's innovation??
  • 19. “INNOVATION = profiting in some way (environmentally, economically or socially) from the latent potential of ideas which are new to your organization!” -- CENTRIM, UK! What isWhat is innovation?innovation?
  • 20. What must be theWhat must be the result of innovationresult of innovation??
  • 21. What company is thisWhat company is this??
  • 22. Are they innovatorsAre they innovators?? 1976 company value $3.000 Why?Why?
  • 23. 2018 company value over $1.000.000.000.000 How much was their company transformedHow much was their company transformed??
  • 24. Is word ”innovation” noun or verbIs word ”innovation” noun or verb?? In grammar, it is a noun. But in business, it is a verb: Implementing great ideas – transforming organization
  • 25. Why are these companies most innovativeWhy are these companies most innovative?? Fast and effective transformation - change
  • 26. “An organization's ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage!" -- Jack Welch
  • 27. Why is it called “digital transformation”Why is it called “digital transformation” not ”digital innovation”not ”digital innovation”?? Result of innovation must be transformation/change People were seeing and understanding innovation as new ideas not as business transformation
  • 28. Do people like to change?
  • 29. What are yourWhat are your innovation prioritiesinnovation priorities??
  • 30. For the top chances / risks – evaluation of readiness Readiness of… • internal / external communication • know-how • products and services • business model(s) • processes Digital Transformation
  • 31. In der Fabrik der Zukunft sind Prozesse weitgehend automatisiert. Daten von Maschinen und Objekten werden über Sensoren gesammelt und miteinander in Verbindung gebracht. Diese Prozesse werden durch eine kleine Gruppe hochqualifizierter Spezialisten gesteuert und überwacht. Andere Unternehmen der Wertschöp­ fungskette werden in die Datenströme aktiv einge­ bunden. Industrielle 3D­­Drucker und additive Fertigungsme­­ thoden finden Einzug in die industrielle Fertigung. Der Kunde wird als Partner gesehen und bereits in die frühe Ideenphase eingebunden. 3D­Druck und additive Fertigung Fabrik der Zukunft Das Ziel ist immer die Entwicklung erfolgsverspre- chender, innovativer Produkte, Dienstleistungen oder Geschäftsmodelle. Verändert wird der Innovationsprozess, dieser ist über die Unternehmensgrenzen hinaus offen. Das Zusammenspiel von internen und externen Ideen, Technologien, Prozessen und Vertriebswegen bezieht die Unternehmensumwelt aktiv in den Innovations­prozess ein. Die Einbindung von Mitarbeitern, Kunden, Lieferan­ten, Lead Usern, Universitäten, Mitbewerbern oder Unter­ nehmen aus anderen Branchen vergrößert das eigene Innovationspotential. GESCHÄFTSMODELLE UND WERTSCHÖPFUNGSKETTE Open Innovation Innovation für alle GT3 Digital Transformation GESCHÄFTSMODELLE UND WERTSCHÖPFUNGSKETTE
  • 33. Where should you look for innovationWhere should you look for innovation?? Innovation radar
  • 34. After you find your innovation prioritiesAfter you find your innovation priorities How do you decide what to do firstHow do you decide what to do first??
  • 35. DECISIONDECISION Criteria 1Criteria 1 Ease ofEase of implementaimplementa tiontion CriteriaCriteria 22 Effect onEffect on improvingimproving motivationmotivation CriteriaCriteria 33 The cost ofThe cost of implementaimplementa tiontion CriteriaCriteria 44 Effect onEffect on workwork performanceperformance TotalTotal RelevancyRelevancy 1 Innovation 1 2 Innovation 2 3 Innovation 3 4 Innovation 4 5 Innovation 5 6 Innovation 6 Total Decision making matrix
  • 36. Where do youWhere do you find opportunitiesfind opportunities for innovationfor innovation??
  • 38. www.dogshirts.com What was my own crisisWhat was my own crisis?? challengechallenge opportunityopportunity
  • 39. In 50 years, every street in London will be buried under nine feet of manure – London Times Newspaper 1894 The crisis accelerating invention of automobileThe crisis accelerating invention of automobile
  • 40. How people react to opportunities for innovation?
  • 41. What is ”Peacock principle”?
  • 42. What is ”Peacock principle”?What is ”Peacock principle”? Peacock is having a “credible handicap”, he is credible because by all logical reasoning he should be dead.
  • 43. ””Peacock principle” in actionPeacock principle” in action $9.95 per square inch = $100.000 per 10 m2 1 square inch wooden sticks and deed for land ownership in Hawaii
  • 44. How do you createHow do you create innovation ideasinnovation ideas??
  • 45. “You can't just ask customers what they want and then try to give that to them. By the time you get it built, they'll want something new.” -- Steve Jobs
  • 46. How to implementHow to implement innovationinnovation??
  • 47. Why do we need to planWhy do we need to plan?? "In preparing for battle I have always found that plans are useless, but planning is indispensable." -- Dwight D. Eisenhower
  • 48. Who should participate in innovationWho should participate in innovation?? Who won the Toyota innovation award for 2012?
  • 49. WhatWhat competences are needed for innovationcompetences are needed for innovation??
  • 50. What are theWhat are the phases of working on innovationphases of working on innovation?? 5 phases
  • 51. 5 phases of5 phases of innovationinnovation
  • 52. How do you get people motivated to innovateHow do you get people motivated to innovate?? 1. Involving everybody 2. Visible impact
  • 53. „„People would willingly support the decisions if theyPeople would willingly support the decisions if they participated in the decision making processparticipated in the decision making process!“ –!“ – Ichak AdizesIchak Adizes Very IMPORTANTNo. 1 Involving everybody
  • 55. How to executeHow to execute an action planan action plan??
  • 56. How do you improve any business?How do you improve any business? What did Henry Ford find out?
  • 57. Did Japanese found it out too?Did Japanese found it out too? What is the essence of KAIZEN? Continuous improvement
  • 58. “Sometimes when you innovate, you make mistakes. It is best to admit them quickly and get on with improving your other innovations.” -- Steve Jobs Learning by “trial and error”
  • 60. In his book, "Lean Startup," author Eric Ries described validated learning as a small unit of progress that can be quickly verified to determine whether a chosen direction is correct.
  • 61. What are theWhat are the obstacles to innovationobstacles to innovation??
  • 62. “Everything that can be invented has been invented” (Charles H Duell,. Commissioner of the US Patent Office 1899.) “I think there is a market for about five computers” (Thomas J. Watson, chairman of the Board of IBM, 1943.) “640 K ought to be enough for anybody” (Bill Gates, 1980.) “We don’t like their sound. Groups of guitars are on the way out” (Decca Recording Company when turning down the Beatles in 1962.)
  • 63. How do you feel when youHow do you feel when you are toldare told youyou “must” innovate“must” innovate??
  • 64. Is it easy to implement innovation?Is it easy to implement innovation?
  • 65. ““Constantly think about how you could be doingConstantly think about how you could be doing things better and questioning yourself!”things better and questioning yourself!” -- Elon Musk-- Elon Musk
  • 66. What did you learnWhat did you learn?? LESSIONS LEARNED?LESSIONS LEARNED?
  • 67. This is only a short version of our full presentation, 50% of our innovation training contains interactive exercises and case studies from domestic companies IMPORTAN T