Peter Kawalek - Talk Innovation and Transformation


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Presentation from Professor Peter Kawalek of Manchester Business School at the TALK Innovation and Transformation event in London on October 14th, 2008.

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Peter Kawalek - Talk Innovation and Transformation

  1. 1. Transformation & Innovation The Spirit of our Times Peter Kawalek
  2. 2. <ul><li>Of Bookshops & Councils </li></ul><ul><li>Anna Eagin </li></ul><ul><li>Top of the Pops </li></ul>
  3. 3. <ul><li>Of Bookshops and Councils </li></ul>
  4. 4. <ul><li>In 1982 Tim Waterstone founded Waterstone’s booksellers. He was to sell it eleven years later for £300m, having had a huge impact on the retail book industry. </li></ul><ul><li>Waterstone’s key idea was to cater for the enthusiasm of book buyers. He provided a warm, friendly, thought-provoking environment that was well-suited to browsing. He allowed academic texts to sit alongside fiction, biography beside children’s. He made sure that shops were staffed by knowledgeable book enthusiasts. </li></ul><ul><li>Still, in the end, a bookstore was still a bookstore. For this reason we call Waterstone’s efforts refinement or enhancement , not transformation. </li></ul>
  5. 5. <ul><li>In 1995, Jeff Bezos launched, an online bookstore. Today it is perhaps the most iconic of all online retailers. This is at a time when the online market continues to grow ahead of industry projections. Amazon sells a wide range of products, not just books, and has revenues of close to $9billion. </li></ul><ul><li>Bezos understood that there were many ways in which people could become interested in a book or browse book offerings, without actually having to hold the book itself. Today Amazon allows viewers to read sections of books, to read or contribute reviews and to find related titles. Moreover, Amazon is ubiquitous: available in the office, bedroom, cafe or even on the high street. </li></ul><ul><li>With Amazon there is no bookstore. In many cases there is no warehouse either. Sometimes, the book hasn’t even been printed before you order it. Therefore we deserve to label Amazon in a more fundamental way than Waterstone’s. It deserves to be called a transformation. </li></ul>
  6. 6. So, what is Transformation? <ul><li>The CIO Discussion paper on Transformation does not precisely define the term, ‘transformation.’ Instead it identifies a set of voiced outcomes with which transformation will be associated: </li></ul><ul><li>Our vision is that people will be able to say the following about local public services: </li></ul><ul><li>“ I feel a sense of engagement in local decisions and ownership of the outcomes.” </li></ul><ul><li>“ I know who is responsible for which services and I can hold them to account.” </li></ul><ul><li>“ I feel that local policies and services are tailored to my needs.” </li></ul><ul><li>“ I can see that the public services are being responsive and creative in their </li></ul><ul><li>approaches to local problems.” </li></ul><ul><li>“ I perceive local public services as accessible, easy to use, comprehensible (I know what they can and can’t do) and joined-up when they need to be.” </li></ul><ul><li>“ I feel that local public services are doing things in the most efficient way.” </li></ul><ul><li>“ As a business, I understand the legislation that affects me and the support available to me locally”. </li></ul>
  7. 7. So, what is Transformation? <ul><li>We are going a bit further. </li></ul><ul><li>We are saying that transformation is at the radical end of a continuum …. It is the stuff that challenges the existing model (hey, no bookstore, no warehouse!!) </li></ul><ul><li>These really big changes are associated with new technology (any new technology, not just IT e.g. railways transformed goods transportation). This is always the case because new technologies tend to affect the economic basis of operations, allowing new organisational patterns and requiring new skills. </li></ul><ul><li>Hence, we see new processes, organisations and skills in transformation. </li></ul>
  8. 8. So, in a nutshell… <ul><li>Transformation is: </li></ul><ul><li>At the radical end of a continuum of change. </li></ul><ul><li>New technology </li></ul><ul><li>New processes, </li></ul><ul><li>New organisation (e.g. a whole new organisational structure) </li></ul><ul><li>New skills & culture. </li></ul>If we don’t see 1+2+3+4, then we should be a bit suspicious!!
  9. 9. The Transformometer Definitely refinement Definitely transformation Amazon Waterstone’s
  10. 10. The Transformometer Excelsis Join the debate … have we got this right? yet to really tap the transformational potential? P2B Simple, but picks up a few points because of the partnership Important, but concerned with getting the existing model working, rather than reinventing it A culture within a culture, an organisation within the organisation. Its our heavyweight champion, but will it stay there? CCP Digipen projects but could be way out east
  11. 11. Tesco <ul><li>Tesco have become a world renown retailer, with their online operation known as one of the most successful in the sector. </li></ul><ul><li>All over the UK, and in many other countries, new stores are being established, taking an ever greater range of products to the marketplace. </li></ul><ul><li>However, as with some other transformed companies, much of the magic lies behind the scenes. They use large-scale IT to make sure that their supply, stocking and stacking processes are the most cost-efficient in the sector. </li></ul><ul><li>In the future they will be much more efficient again. Tiny RFID tags will ensure that re-orders are made as soon as a product enters your basket. Perhaps, even, your regular items will enter your basket as soon as you drive into the car-park. </li></ul>
  12. 12. The Transformometer Definitely refinement Definitely transformation Amazon Waterstone’s Media Industry Tesco Amazon, the Banks & Tesco: all would be positioned comfortably to the right of our government projects. Do you agree?
  13. 13. The Transformometer Definitely refinement Definitely transformation It is no disgrace to focus on refinement. Arguably, this is what government concentrates upon, especially given its performance measures culture. However, technological initiatives like e-gov are trying to pull it to the right. Will they succeed? Traditional Retail Mature Markets e.g. automotive Radical leaders The .coms, Banking!, Media Industry M&A plus common platforms drive the automotive industry Government Government has a strong refinement culture. Its e-gov projects are trying to pull it to the right.
  14. 14. The Anna Eagin Hypothesis A sketch on how young people are already changing the rules.
  15. 15. <ul><li>… in which it is said that transformation is both inevitable and inevitably radical </li></ul>
  16. 16. We prefer to go on MySpace than own a dog <ul><li>MySpace reckons that about the same number of people use its social networking website as own a dog - there are some 10.3 million dog owners across the country - and it is more popular than drinking bitter, with around 9.2 million real ale drinkers in the UK. </li></ul><ul><li>Source BBC Technology News July 2007 </li></ul>V
  17. 17. 120,000 weblogs created every day 1.4 weblogs created every second 70million weblogs We’re expressing our own views instead of accepting others
  18. 18. We’re preferring the internet over traditional media
  19. 19. <ul><li>Top of the Pops </li></ul>
  20. 20. Born 1964, died 2006
  21. 21. Conclusion <ul><li>All of this is a contest over power. </li></ul>
  22. 22. Peter Kawalek Affiliation: Professor, Manchester Business School, Manchester, England. Visiting Professor, Instituto de Empresa, Madrid, Spain. Visiting Professor, Letterkenny Institute of Technology, Ireland. Blog: Email: peter. [email_address] .ac. uk MBS Centre for Engagement: