Uploaded byHaydn Shaughnessy
The elastic enterprise and radical adjacency
Haydn Shaughnessy's document discusses innovation in organizations and highlights significant shifts such as externalization, radical adjacency, the device economy, and narrow innovation. It emphasizes the need for companies to adapt to a service-driven economy by leveraging external relationships and exploring new markets while addressing differentiated needs of the emerging global middle class. The document also suggests that a small percentage of staff can be encouraged to be more creative and innovative through strategic decision-making and resource delegation.
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The elastic enterprise and radical adjacency
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- 2. How Do YouBecome More Innovative? What Does That Organization Look Like? Fit For The Future? How About The People In It?
- 3. “Normally when peoplethink of making music they think write, record, mix. We don’t do that at all. It is confusing and terrifying to some artists but we do all three at the same time. Write, mix, open audio files, throw things onto the phone….” Mike Shinoda Linkin Park Eclectic, knowledgeable, good decisions
- 4. “He (producer SalaamRemi) started going through his sample library and all these different crazy drums. And there were these loud, obnoxious, just destructive drums, and I was like, Yeah! A girl on fire is loud and obnoxious and destructive and just, like, totally unrelenting and she’s free….” Alicia Keyes on writing Girl on Fire
- 5. FOR EXAMPLE Launching this Beforethis…. Options, judgement
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- 8. ServicesServices EmployeesEmployees The CEO The CEO External Risk External Risk 1990-922007 - 102000-03 2004-06 A Semantic Analysis of 20 years of business writing in The Harvard Business Review, source Haydn Shaughnessy Transition point Transition point INTERNALITIES EXTERNALITIES How we are transitioning
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- 10. A Basic EnterpriseMaturity Model THE PRODUCT OF THE 21ST CENTURY IS Hardware- software- service- and-communications
- 11. Lab-based, driven by oligopoliesthat shape new markets Attempts to interpret and adapt to the service economy The organization is the innovation CLOSE UP
- 12. THE BIG SHIFT2 RADICAL ADJACENCY THE REQUIREMENT TO GO OUT INTO OTHER MARKETS WITH NEW PRODUCTS, OR TO GO WHERE YOU HAVE NO TRACK RECORD OR CORE COMPETENCY. How come Apple is the world’s top retailer?
- 13. RADICAL ADJACENCY EXAMPLES Apple intosmartphones, and into retail Microsoft into telephony and devices Google into Mobile, Lending and Autos Walmart trying to open a bank
- 14. The BIG SHIFT3 THE DEVICE ECONOMY MORE AND MORE ACTIVITY IS MEDIATED VIA A DEVICE WHICH IN TURN MEANS YOU NEED A DEVICE STRATEGY
- 15. The Device Economytakes us from production to services to device-software-service 500 BILLION New device businesses – social connections, health, entertainment, reading, cooking, travel….
- 16. THE BIG SHIFT4 – NARROW INNOVATION MULTIPLE SIMULTANEOUS INNOVATIONS TO SERVE NEW, NARROWER MARKETS FOR THE GLOBAL MIDDLE CLASS. Google Glass will launch with 2,000 apps
- 17. Why is itimportant now? The new global middle class creates massively differentiated needs, and low cost, good enough goods 900 million – 2 billion people by 2030 = x 3 or x 7 Unprecedented opportunity.
- 18. Narrow Innovation Example: Samsung Over150 different types of phone in the US alone Makes every type of display – OLED, LCD, PLASMA Make computers, phones, tablets, TVs, white goods etc
- 19. The Big Shift ProductionService ELASTIC Siloed IT structure, programmatic strategy, closed R&D, five year plans, clubbish Plug and play IT, Outsourcing, Knowledge Management, Services, Agile, Open management Platform and Cloud, Mobility, APIs. Externalized. Ideation, Crowd, Elastic Resources Narrow, Radical Adjacency
- 20. DECISION MAKING WHAT DOESMY COMPANY EXPECT ME TO DO? WHAT IS THE RIGHT THING TO DO? HOW CAN I LEARN A NEW BASIS FOR DECISION MAKING CENTRED ON EXTERNAL RELATIONSHIPS?
- 21. DECISION MAKING WHICH ARETHE RIGHT PARTNER OPTIONS IN THE GROUPS I DEAL WITH? HOW CAN WE DEVOLVE RISK? HOW CAN WE CREATE MORE OPTIONS? ARE THERE ANY ECOSYTEM OPPORTUNITIES AVAILABLE?
- 22. NOW THAT WECAN NO L0NGER SIMPLIFY EVERYTHING WHY DON’T WE REACH OUT TO NEW HORIZONS AND ACHIEVE OUR DREAMS?
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- 24. The 10% rule Youwill not make your staff creative and innovative but you may make 10% of them more so. Lean Decision improvement Delegate budget Delegate BI Find your 10%