MCE^3 - C. Todd Lombardo - Organizational Dynamics of Innovation
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It is not the strongest that survives, rather the most adaptable. What structural, behavioral, cultural, and organizational factors play into a company's success in producing hit product after hit product? Examining both successful and unsuccessful examples, this talk presents a framework for teams to set themselves up for repeated innovation success
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MCE^3 - C. Todd Lombardo - Organizational Dynamics of Innovation
- 1. Organizational Dynamics of Innovation C. Todd Lombardo Chief Design Strategist - Fresh Tilled Soil Adjunct Professor - IE Business School @iamctodd
- 2. For Sale: Socks. Three. Different colors.
- 3. A $5M Idea?
- 6. Why not Zara? H&M?
- 7. Every major corporation in the 21st century is dealing with issues of disruption. Steve Blank, 8-TIME ENTREPRENEUR, AUTHOR, STARTUP GURU
- 8. differentmeasureofperformance time performance time new market disruption compete against nonconsumption low end disruption adressing overserved customers with a low cost business model sustaining technology bringing a better product into an established market most demanding customers least demanding customers
- 9. disruptive innovations low-end disruptions new-market disruptions SSD Hard Drives JetBlue / EasyJet Zipcar AirBnB
- 10. Case Studies
- 15. Formula…?
- 16. Formula…? ○ Raise some venture backing: $16M >> $41M
- 17. Formula…? ○ Raise some venture backing: $16M >> $41M ○ Hire the best engineers you can find
- 18. Formula…? ○ Raise some venture backing: $16M >> $41M ○ Hire the best engineers you can find ○ Give them space (a 22,000 ft2)
- 19. Formula…? ○ Raise some venture backing: $16M >> $41M ○ Hire the best engineers you can find ○ Give them space (a 22,000 ft2) ○ Pray they make something valuable
- 26. H4 H3 Innovation Emerging Scaling Operating Problem/Solution Product/Market Efficiency (core) H2 H1 Scale
- 27. H4 H3 H2 H1 Product Development Innovation Services Startup Accelerator DESIGN SPRINTS, WORKSHOPS, EVENTS FIVE EXTERNAL STARTUPS
- 30. Organizational Factors WHAT’S IT LIKE AT YOU COMPANY?
- 31. 1850 1890 1900 1915 1940 1960 1970 1985 1995 2005 2015 2020 2025 2030 Source: XPLANE
- 32. 1850 1890 1900 1915 1940 1960 1970 1985 1995 2005 2015 2020 2025 2030 Source: XPLANE Peak of II Industrial Revolution
- 33. Slavery Average manufacturing had less than 4 employees Average lifespan of S&P500 is 67 years Pay by performance Capital budgeting Task design Divisionalization Brand management Women couldn’t vote Management 1.0 90% of people were in agriculture Ford makes 500K cars/yr Social segregation Colonialism No environmental care Communism No Google No Airbnb 1850 1890 1900 1915 1940 1960 1970 1985 1995 2005 2015 2020 2025 2030 US Steel has $1B market capitalization Source: XPLANE Peak of II Industrial Revolution
- 34. Slavery Average manufacturing had less than 4 employees US Steel has $1B market capitalization Pay by performance Capital budgeting Task design Divisionalization Brand management Women couldn’t vote Management 1.0 90% of people were in agriculture Ford makes 500K cars/yr Social segregation Colonialism No environmental care Communism No Google No Airbnb Peak of II Industrial Revolution 1850 1890 1900 1915 1940 1960 1970 1985 1995 2005 2015 2020 2025 2030 Source: XPLANE
- 35. Slavery Average manufacturing had less than 4 employees US Steel has $1B market capitalization Pay by performance Capital budgeting Task design Divisionalization Brand management Women couldn’t vote Management 1.0 90% of people were in agriculture Ford makes 500K cars/yr Social segregation Colonialism No environmental care Communism No Google No Airbnb Peak of II Industrial Revolution 2ND Innovation Consultants 3RD Venture Design Human-Centered Co-Creation Ethnography Customer Journey 1850 1890 1900 1915 1940 1960 1970 1985 1995 2005 2015 2020 2025 2030 Rise of Design for Innovation Source: XPLANE 1ST Digital change agents
- 36. Slavery Average manufacturing had less than 4 employees US Steel has $1B market capitalization Pay by performance Capital budgeting Task design Divisionalization Brand management Women couldn’t vote Management 1.0 90% of people were in agriculture Ford makes 500K cars/yr Social segregation Colonialism No environmental care Communism No Google No Airbnb Peak of II Industrial Revolution 2ND Innovation Consultants 3RD Venture Design Human-Centered Co-Creation Ethnography Customer Journey 1850 1890 1900 1915 1940 1960 1970 1985 1995 2005 2015 2020 2025 2030 Rise of Design for Innovation Source: XPLANE 1ST Digital change agents
- 37. Slavery Average manufacturing had less than 4 employees US Steel has $1B market capitalization Pay by performance Capital budgeting Task design Divisionalization Brand management Women couldn’t vote Management 1.0 90% of people were in agriculture Ford makes 500K cars/yr Social segregation Colonialism No environmental care Communism No Google No Airbnb Peak of II Industrial Revolution 2ND Innovation Consultants 3RD Venture Design Human-Centered Co-Creation Ethnography Customer Journey 1850 1890 1900 1915 1940 1960 1970 1985 1995 2005 2015 2020 2025 2030 Rise of Design for Innovation Source: XPLANE Average lifespan of S&P500 is 67 years Average lifespan of S&P500 is 15 years 1ST Digital change agents
- 38. 1850 1890 1900 1915 1940 1960 1970 1985 1995 2005 2015 2020 2025 2030
- 39. 1850 1890 1900 1915 1940 1960 1970 1985 1995 2005 2015 2020 2025 2030 Traditional Organizations from the 20th Century
- 40. 1850 1890 1900 1915 1940 1960 1970 1985 1995 2005 2015 2020 2025 2030 Traditional Organizations from the 20th Century Organizations with a more conscious approach
- 41. 1850 1890 1900 1915 1940 1960 1970 1985 1995 2005 2015 2020 2025 2030 Traditional Organizations from the 20th Century Organizations with a more conscious approach Modern Organizations from the 21st Century
- 42. Traditional Organizations More Conscious Organizations Modern Organizations THREE ORG TYPES Source: XPLANE
- 43. Traditional ORG - The “Pyramid” Source: XPLANE
- 44. Rigid Organizations ○ No formal innovation framework ○ Innovation initiatives untied to company strategy ○ Siloed ○ Misaligned metrics
- 45. Conscious ORG - The “Family” Source: XPLANE
- 46. Modern ORG - The “Organism” Source: XPLANE
- 47. An Evolution? Pyramid Family Organism Source: XPLANE
- 48. 20TH TO 21ST CENTURY ORG MODELS Change Source: XPLANE
- 49. 20TH TO 21ST CENTURY ORG MODELS Change Source: XPLANE
- 51. Allocation of Resources MONEY WHERE YOUR MOUTH IS?
- 52. Twenty percent of our new products are now required to be driven by innovation. CHIEF STRATEGY OFFICER, FORTUNE 500 COMPANY
- 53. Twenty percent of our new products are now required to be driven by innovation. CHIEF STRATEGY OFFICER, FORTUNE 500 COMPANY Do you set aside 20% of your company’s time & resources??
- 54. Twenty percent of our new products are now required to be driven by innovation. CHIEF STRATEGY OFFICER, FORTUNE 500 COMPANY Do you set aside 20% of your company’s time & resources?? ME
- 55. Source: Innovation LeaderTotal exceeds 100% as many respondents cited more than one reason.
- 56. Source: Innovation Leader Total exceeds 100% as many respondents cited more than one reason.
- 57. Valuing Design DO YOU, REALLY?
- 58. Design leads to innovation and innovation demands design. Indra Nooyi CEO, PEPSICO
- 59. Source: UK Design Council
- 62. What tools are you using? 21ST CENTURY TOOLS FOR 21ST CENTURY PROBLEMS
- 64. Product Roadmapping VISION OBJECTIVES PRIORITIZE ROADMAP USER GOALS SOLUTIONS THEMES
- 65. Programmatic Factors INNOVATION PROGRAMS? WHAT CAN WE DO?
- 69. Top-down sponsorship and bottom-up effort is essential to make meaningful culture transformation progress. Dane Howard DIRECTOR OF USER EXPERIENCE, EBAY
- 70. } } } DESIGN SPRINT INTERVALS AGILE SCRUM Define Understand Build Test Ideate WEEK 1 Refine Build Test WEEK 2 Refine Build Test WEEK 3 Refine Build Test WEEK 4 Refine Build Test WEEK n
- 71. Individual Factors HOW DO YOU THINK?
- 72. You have 3 sheets of paper Build the Tallest Tower In 3 minutes Challenge
- 73. 00:03:00
- 74. 00:02:30
- 75. 00:02:00
- 76. 00:01:30
- 77. 00:01:00
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- 79. 00:00:00
- 83. Focus on the “job” NOT THE TECH, NOR THE PRODUCT
- 89. OPPORTUNITY IDENTIFICATION PROJECT ACCEPTANCE INVENTOR V0.1 V0.2 V0.3 LAUNCH TECHNICAL CREATIVITY
- 90. OPPORTUNITY IDENTIFICATION PROJECT ACCEPTANCE INVENTOR CHAMPION V0.1 V0.2 V0.3 LAUNCH TECHNICAL CREATIVITY POLITICAL SAVVY
- 91. OPPORTUNITY IDENTIFICATION PROJECT ACCEPTANCE INVENTOR CHAMPION IMPLEMENTER V0.1 V0.2 V0.3 LAUNCH TECHNICAL CREATIVITY POLITICAL SAVVY PROJECT MANAGEMENT
- 92. OPPORTUNITY IDENTIFICATION PROJECT ACCEPTANCE INVENTOR CHAMPION IMPLEMENTER V0.1 V0.2 V0.3 LAUNCH TECHNICAL CREATIVITY POLITICAL SAVVY PROJECT MANAGEMENT SERIAL INNOVATOR
- 97. Tension Brutal Honesty. Mixed Viewpoints.
- 98. Tension Brutal Honesty. Mixed Viewpoints. Agility Quickly change. Learn fast.
- 99. Tension Brutal Honesty. Mixed Viewpoints. Agility Quickly change. Learn fast. Space Experiment. Fail. Collaborate.
- 100. Tension Brutal Honesty. Mixed Viewpoints. Agility Quickly change. Learn fast. Space Experiment. Fail. Collaborate. Mindset Designer + Scientist. FOCUS ON PEOPLE PROBLEMS