The document discusses the development of an innovation ecosystem at Lockheed Martin to enhance agility in response to shifting business strategies and adaptive challenges. It outlines the implementation of an 'open innovation' approach, which involves strategic collaboration among over 20 companies to address complex problems like predictive maintenance for the Navy's destroyer fleet. Through a structured process known as strategic doing, trust is built among participants, enabling them to form partnerships and create a strategic agenda for collaborative investments.

1. Developing an Ecosystem
to Innovate: Lockheed
Ed Morrison
Scott Hutcheson
Liz Nilsen
Purdue Agile Strategy Lab

2. Launch
Scale
Optimize
Transform
Exit
Experiment
Strategy is dynamic…the demands of strategy
shift as the business context changes

3. Agility enables companies to jump S-Curves…
But how does company become agile?
Source: Accenture
Performance
Time

4. Companies also face adaptive challenges…
Complex messes with no clear technical fix

5. Example: the Navy asked Lockheed to develop
a roadmap for deploying predictive
maintenance across the destroyer fleet

6. Problem: Lockheed’s Surface Naval Innovation
Center did not have access to all the technologies
needed to address the challenge…

7. We proposed the idea of a platform on which
Lockheed could form fast collaborations with
outside companies to solve the problem
Organization A Organization B
Organization C

8. Dec Jan Feb Mar Apr May Jun
Design sessions
Workshop
We used this drawing to explain to Lockheed
executives how a strategy process would unfold

9. We delivered on our “open innovation” promise
by using Strategic Doing to build trust among
20+ companies working on the roadmap
Ten Skills
of Collaboration
Strategic Doing Cycle
Ten Rules of Strategic Doing

10. Interested
Community
Community of
Practice
Innovating
Network
Innovate
Together
Learn
Together
Advocate
Together
Trust
level
Time
The challenge of open innovation involves
building trust at scale quickly among companies
that have never worked together in this way

11. Conversation shifts.--
Collaborations begin to form
with conversations among
companies that share a
similar “competitive space”.
Participants begin testing
ideas about colabrotion.
Network forms.-- As focused
conversations continue,
common interests emerge.
These shared interests drive
conversations to deeper
detail. Connections among
!rms become stronger.
Strategic agenda emerges.--
Members of the emerging
network begin to focus on
strategic opportunities.
These opportunities emerge
as !rms “link and leverage”
their assets.
Anchor investments made.--
As the collaborations form,
members develop a strategic
agenda: a portfolio of
investments to strengthen
themselves through
collaboration.
Collaboration continues to
invest, adapt and expand.--
Connections within the
network become more dense
and spontaneous. New
shared investments build out
the collaboration.
Time
Level of
Network
Development
Conversation shifts
Network forms
Strategic agenda emerges
Anchor investments made
Networks continue to
invest, adapt, expand
1
1
2
3
4
5
2 3 4 5
Strategic Doing accelerates the formation of trust
at scale by moving companies through a
rigorous process

12. Strategic Doing solved Lockheed’s challenge of
identifying potential partners. We also provided a
clear path for participants to follow.

13. To learn more about how a protocol of simple rules
can make an organization more agile and open,
visit us online: agilestrategylab.org
Ed Morrison
edmorrison@purdue.edu
Purdue Agile Strategy Lab