4. 1- DEFINITIONS
CREATIVITY INNOVATION
is the ability of Is the process by
conceiving which we create and
something original act on ideas that
or unusual. have value.
5. 1- DEFINITIONS
â INNOVATION is
the successful implementation
of new ideas in any aspect of a
business.â
6. VIDEO 1
What is Innovation?
(1min20)
http://youtu.be/5Uh1KxcpWz0
10. Innovations can be hard to identify
This âtelephoneâ has too many
shortcomings to be seriously
considered as a means of
communication. The device is inherently
of no value to us.â
Western Union internal memo, 1876.
11. Innovations can be hard to identify
âI think there is a world
market for maybe 5
computers.â
Thomas Watson, Chairman IBM, 1943
12. Innovations can be hard to identify
âThere is no reason why anyone
would want a computer in their
home.â
Ken Olson, president, chairman and founder of Digital Equipment
Corporation, 1977.
14. 5 Myths of Innovation
Research was conducted over a three-year period in
cooperation with a group of leading companies.The
participants came from various sectors: consumer
products (Mars, Sara Lee, Best Buy, Whirlpool),
pharmaceuticals (Roche Diagnostics, GSK),
broadcasting (BBC), energy (BP), information and
com- munication technology (BT, IBM), business
information (Thomson Reuters) â as well as two
banks that were at the center of the recent financial
crisis (UBS and RBS). We could have excluded them
http://www.istockphoto.com/stock-photo-1931448-research.php?st=187d274
from the study, but they faced distinctive challenges
that significantly enriched the study. We interviewed
a total of 54 people, some of them several times, in
these companies, and we wrote up detailed case
studies about six of the companies (Mars, Roche,
GSK, IBM, BT and UBS).
Birkinshaw et al 2011
15. 5 myths about innovation
1. Eureka moment
2. Build IT and they will come
3. Open innovation is the future
4. Pay is paramount
5. Bottom-up innovation is best
NOTE: Details in the MIT Innovation Report
Birkinshaw et al 2011
15
31. NOTES
The challenges you face are very complex and are likely
to have been explored by predecessors. You will have a
higher likelihood of success at solving such complex,
difficult, and already-examined problems by
intentionally assembling the right team of people. This
team will work best if it consists of a core group of 3-8
individuals, one of whom is the facilitator. By mixing
different disciplinary and educational backgrounds, you
will have a better chance of coming up with unexpected
solutions when these people approach problems from
different points of view.
32. NOTES
Having a separate project space allows the
team to be constantly inspired by imagery
from the field, immersed in their post-it
notes, and able to track the progress of the
project. If possible, find a dedicated space for
your design team to focus on the challenge.
33. NOTES
Many people notice that they work best
with deadlines and concrete timelines.
Likewise, an innovation project with a
beginning, middle, and end is more likely
to keep the team motivated and focused
on moving forward.
34. Human-Centered Design (HCD)
is a process and a set of
techniques used to create new
solutions for the world.
Solutions include
products, services, environments, organizations, and mode
of interaction.
43. 4- TEAM INNOVATION
Source: West, Michael A. and SACRAMENTO, C.A. (2006). Flourishing teams: developing creativity and innovation. IN: Creative
Management and Development. Henry, J. (ed.) London: Sage
44.
45. 4- TEAM INNOVATION
Process Task
Group
Environ-
Compos-
ment
ition
Source: West, Michael A. and SACRAMENTO, C.A. (2006). Flourishing teams: developing creativity and innovation. IN: Creative
Management and Development. Henry, J. (ed.) London: Sage
46. 4- TEAM INNOVATION
TASK
Should be Intrinsically
motivating
Team members autonomy
Significant
Appropriate to achieving goals
West, Michael A. and SACRAMENTO, C.A. (2006). Flourishing teams: developing creativity and innovation. IN: Creative Management
and Development. Henry, J. (ed.) London: Sage
47. 3- TEAM INNOVATION
Group
Composition
Team of individuals
who demonstrate
high levels of
âopennessâ
Barrick, M.R., Stewart, G.L., Neubert, M.J., Mount, M.K. (1998) Relating member ability and personality
to work-team processes and team effectiveness. Journal of Applied Psychology, 83, 377â91.
48. 3- TEAM INNOVATION
Group
Composition
A team of
individuals with
different
backgrounds and
diverse range of
skills is more
innovative
Desivilya et al. , Innovation and Conflict Management in Work Teams: The Effects of Team Identification and Task and
Relationship conflict, Negotiation and Conflict Management Research, 3(1)
49. 33- TEAM INNOVATION
Environment
Extrinsic rewards have a positive
effect on enhancing the
innovating spirit within a team
Eisenberger, R. and Cameron, J. (1996) Detrimental effects of reward: Reality of myth?
American Psychologist, 51(11), 1153â66
50. 3- TEAM INNOVATION
Environment
Optimal Climate for
innovation:
challenge, encourag
ement, and work
group support
Amabile, T.M. Conti, R., Coon, H., Lazenby, J., and Herron, M. (1996) Assessing the work
environment for creativity. Academy of Management Journal, 39, 1154â84
51. 3- TEAM INNOVATION
Process
Reflexivity
has been found to be a âTeam reflexivity is the extent
key factor enhancing to which team members
collectively reflect upon the
innovation among team teamâs objectives, strategies
members and processes as well as their
wider organizations, and
adapt to them accordinglyâ
West, M.A. (2000) Reflexivity, revolution, and innovation in work teams.) Advances in Interdisciplinary Studies of Work Teams:
Product Development Teams Stamford, Connecticut: JAI Press. (pp. 1â29)
56. 4.1 The Organizational
Innovation Radar
Source: Sawhney M., Wolcott R.C., Arroniz I.; The 12 Different Ways for Companies
to Innovate; MIT Sloan Management Review, Winter 2011
57. 4.1 The Innovation Radar
7
6
5
4
3
2
1
Source: Sawhney M., Wolcott R.C., Arroniz I.; The 12 Different Ways for Companies to Innovate; MIT Sloan Management Review, Winter 2011
58. 4.1 The Innovation Radar
58
Source: Sawhney M., Wolcott R.C., Arroniz I.; The 12 Different Ways for Companies to Innovate; MIT Sloan Management Review, Winter 2011
59. 4.1 The Innovation Radar
Source: Sawhney M., Wolcott R.C., Arroniz I.; The 12 Different Ways for Companies to Innovate; MIT Sloan Management Review, Winter 2011
60. The Innovation Radar consists of
4 key business anchors
1
4 2
3 Source: Sawhney M., Wolcott R.C., Arroniz I.; The 12 Different Ways
for Companies to Innovate; MIT Sloan Management Review, 2011
61. 4.1 The Innovation Radar
1 OFFERINGS
(WHAT)
A
COMPANY
CREATES
Source: Sawhney M., Wolcott R.C., Arroniz I.; The 12 Different Ways
for Companies to Innovate; MIT Sloan Management Review, 2011
62. 4.1 The Innovation Radar
1 OFFERINGS
(WHAT)
Develop
innovative new
products or
services
Source: Sawhney M., Wolcott R.C., Arroniz I.; The 12 Different Ways
for Companies to Innovate; MIT Sloan Management Review, 2011
63. 4.1 The Innovation Radar
CUSTOMERS
(WHO)
2 IT
SERVES
Source: Sawhney M., Wolcott R.C., Arroniz I.; The 12 Different Ways
for Companies to Innovate; MIT Sloan Management Review, 2011
64. The Innovation Radar
CUSTOMERS
(WHO)
Discover unmet
2 customer needs or
identify underserved
customer segments.
Source: Sawhney M., Wolcott R.C., Arroniz I.; The 12 Different Ways
for Companies to Innovate; MIT Sloan Management Review, 2011
65. The Innovation Radar
PROCESSES
(HOW)
IT
EMPLOYS
3
Source: Sawhney M., Wolcott R.C., Arroniz I.; The 12 Different Ways
for Companies to Innovate; MIT Sloan Management Review, 2011
66. 4.1 The Innovation Radar
PROCESSES
(HOW)
Redesign core
operating processes
to improve
efficiency and
effectiveness.
3
Source: Sawhney M., Wolcott R.C., Arroniz I.; The 12 Different Ways
for Companies to Innovate; MIT Sloan Management Review, 2011
67. 4.1 The Innovation Radar
PRESENCE
(WHERE)
TO TAKE
4
OFFERINGS
TO MARKET
Source: Sawhney M., Wolcott R.C., Arroniz I.; The 12 Different Ways
for Companies to Innovate; MIT Sloan Management Review, 2011
68. The Innovation Radar
PRESENCE
(WHERE)
Create new
distribution
4 channels or
innovative points of
presence.
Source: Sawhney M., Wolcott R.C., Arroniz I.; The 12 Different Ways
for Companies to Innovate; MIT Sloan Management Review, 2011
69. 4.1 The Innovation Radar
OFFERINGS
(WHAT)
PLATFORM
PLATFORM is a set of common
components, assembly
methods or
technologies that
serve as building
blocks for a portfolio of
products or services.
Source: Sawhney M., Wolcott R.C., Arroniz I.; The 12 Different Ways
for Companies to Innovate; MIT Sloan Management Review, 2011
70. 4.1 The Innovation Radar
OFFERINGS
(WHAT)
PLATFORM
PLATFORM
Use common
components or
building blocks to
create derivative
offerings.
Source: Sawhney M., Wolcott R.C., Arroniz I.; The 12 Different Ways
for Companies to Innovate; MIT Sloan Management Review, 2011
71. 4.1 The Innovation Radar
OFFERINGS
(WHAT)
SOLUTIONS
PLATFORM
customized, integrated
SOLUTIONS combination of
products, services and
information that solves
a customer problem
Source: Sawhney M., Wolcott R.C., Arroniz I.; The 12 Different Ways
for Companies to Innovate; MIT Sloan Management Review, 2011
72. 4.1 The Innovation Radar
OFFERINGS
(WHAT)
PLATFORM
SOLUTIONS
SOLUTIONS
Create integrated
and customized
offerings that solve
end-to-end
customer problems.
Source: Sawhney M., Wolcott R.C., Arroniz I.; The 12 Different Ways
for Companies to Innovate; MIT Sloan Management Review, 2011
73. 4.1 The Innovation Radar
CUSTOMER
EXPERIENCE
everything a customer
sees, hears, feels and
otherwise experiences
CUSTOMERS while inter- acting with
(WHO) a company at all
CUSTOMER
moments.
EXPERIENCE
Source: Sawhney M., Wolcott R.C., Arroniz I.; The 12 Different Ways
for Companies to Innovate; MIT Sloan Management Review, 2011
74. 4.1 The Innovation Radar
CUSTOMER
EXPERIENCE
Redesign customer
interactions across
CUSTOMERS
all touch points and
(WHO) all moments of
contact.
CUSTOMER
EXPERIENCE
Source: Sawhney M., Wolcott R.C., Arroniz I.; The 12 Different Ways
for Companies to Innovate; MIT Sloan Management Review, 2011
75. 4.1 The Innovation Radar
VALUE
CAPTURE
Mechanism that a
company uses to
recapture the value it
CUSTOMERS creates
(WHO)
CUSTOMER
EXPERIENCE
VALUE
CAPTURE
Source: Sawhney M., Wolcott R.C., Arroniz I.; The 12 Different Ways
for Companies to Innovate; MIT Sloan Management Review, 2011
76. 4.1 The Innovation Radar
VALUE
CAPTURE
Redefine how
company gets paid
CUSTOMERS or create innovative
(WHO) new revenue
CUSTOMER
streams.
EXPERIENCE
VALUE
CAPTURE
Source: Sawhney M., Wolcott R.C., Arroniz I.; The 12 Different Ways
for Companies to Innovate; MIT Sloan Management Review, 2011
77. 4.1 The Innovation Radar
ORGANIZATION
The way in which a
company structures
itself, its partnerships
and its employee roles
and responsibilities
ORGANIZATION
PROCESSES Source: Sawhney M., Wolcott R.C., Arroniz I.; The 12 Different Ways
(HOW) for Companies to Innovate; MIT Sloan Management Review, 2011
78. 4.1 The Innovation Radar
ORGANIZATION
Change form,
function or activity
scope of the firm.
ORGANIZATION
PROCESSES Source: Sawhney M., Wolcott R.C., Arroniz I.; The 12 Different Ways
(HOW) for Companies to Innovate; MIT Sloan Management Review, 2011
79. 4.1 The Innovation Radar
SUPPLY
CHAIN
The sequence of
activities and agents
that moves goods,
services and
information from
source to delivery of
SUPPLY products and services
CHAIN
ORGANIZATION
PROCESSES Source: Sawhney M., Wolcott R.C., Arroniz I.; The 12 Different Ways
(HOW) for Companies to Innovate; MIT Sloan Management Review, 2011
80. 4.1 The Innovation Radar
SUPPLY
CHAIN
Think differently
about sourcing and
fulfillment.
SUPPLY
CHAIN
ORGANIZATION
PROCESSES Source: Sawhney M., Wolcott R.C., Arroniz I.; The 12 Different Ways
(HOW) for Companies to Innovate; MIT Sloan Management Review, 2011
81. 4.1 The Innovation Radar
NETWORKING
A company and its
NETWORKING products and services
are connected to
PRESENCE
customers through a
(WHERE) network that can
sometimes become part
of the firmâs competitive
advantage.
Source: Sawhney M., Wolcott R.C., Arroniz I.; The 12 Different Ways
for Companies to Innovate; MIT Sloan Management Review, 2011
82. 4.1 The Innovation Radar
NETWORKING
Create network-
NETWORKING centric intelligent and
integrated offerings.
PRESENCE
(WHERE)
Source: Sawhney M., Wolcott R.C., Arroniz I.; The 12 Different Ways
for Companies to Innovate; MIT Sloan Management Review, 2011
83. 4.1 The Innovation Radar
BRAND
BRAND
the symbols, words or
NETWORKING marks through which a
company communi-
PRESENCE cates a promise to
(WHERE) customers
Source: Sawhney M., Wolcott R.C., Arroniz I.; The 12 Different Ways
for Companies to Innovate; MIT Sloan Management Review, 2011
84. 4.1 The Innovation Radar
BRAND
BRAND
Leverage a brand
NETWORKING
into new domains.
PRESENCE
(WHERE)
Source: Sawhney M., Wolcott R.C., Arroniz I.; The 12 Different Ways
for Companies to Innovate; MIT Sloan Management Review, 2011
85. 4.1 The Innovation Radar
Source: Sawhney M., Wolcott R.C., Arroniz I.; The 12 Different Ways
for Companies to Innovate; MIT Sloan Management Review, 2011
86. 4.1 The Innovation Radar
Source: Sawhney M., Wolcott R.C., Arroniz I.; The 12 Different Ways
for Companies to Innovate; MIT Sloan Management Review, 2011
87. 4.1 The Innovation Radar
EXAMPLE: Appleâs 1st IPod
Apple attacked not only the offerings
and platform dimensions but also the
supply chain (content owners), presence
(portability of a customerâs entire
collection of music, photos and
videos), networking (connecting with
Mac or Windows computers), value
capture (iTunes), customer experience
(the complete iPod experience) and
brand (extending the Apple brand).
88. 4.2 ORGANIZATIONAL INNOVATION
DIFFUSION MODEL
Source: http://www.core77designawards.com/wp-content/uploads/2011/07/Strategy-Student-e401-a.pdf
90. THE INNOVATION ADVOCATE
is a person or people who foster and facilitate the creation and
acceptance of innovation and its diffusion
throughout an organization
Source: http://www.core77designawards.com/wp-content/uploads/2011/07/Strategy-Student-e401-a.pdf
91. 1- INNOVATION ADOPTED AS A CORE VALUE
1
To move innovation from a talking point to a value set for which
the organization is willing to make operational investments for
long-term growth.
Source: http://www.core77designawards.com/wp-content/uploads/2011/07/Strategy-Student-e401-a.pdf
92. 2- COMMUNICATION STRATEGY
2
Communicate to employees that the organization not only
values their ideas, but has a method by which to collect them
and potentially transform them into reality.
Source: http://www.core77designawards.com/wp-content/uploads/2011/07/Strategy-Student-e401-a.pdf
93. 3- SYSTEM FOR CONSIDERING NEW IDEAS
3
Facilitates the removal of barriers that might otherwise
have blocked an idea before it could reach the decision
makers in leadership positions.
Source: http://www.core77designawards.com/wp-content/uploads/2011/07/Strategy-Student-e401-a.pdf
94. 4- FILTRATION
The ideas are
measured
against how
well they meet
organizational
objectives
4
Source: http://www.core77designawards.com/wp-content/uploads/2011/07/Strategy-Student-e401-a.pdf
95. 5- BUY-IN
Creation of
communications
that engage the
intended
audience
toward
innovation 5
initiatives.
Source: http://www.core77designawards.com/wp-content/uploads/2011/07/Strategy-Student-e401-a.pdf
96. 6- RESOURCE ALLOCATION
To build multi-
disciplinary
teams for
implementation
6
Source: http://www.core77designawards.com/wp-content/uploads/2011/07/Strategy-Student-e401-a.pdf
97. 7- REFLECTION & REGENERATION
Opportunity to
learn from
process 7
successes and
identifies
areas for
improvement.
Source: http://www.core77designawards.com/wp-content/uploads/2011/07/Strategy-Student-e401-a.pdf
102. Group Activity
Hand over devices to each team (or show them
on the screen) and ask them to come up with
one change they would like to see in the product
and declare ( as a Team).
This becomes their company product.
Now the twist is that they make sales pitch with
features that they would add to their product in
ten years from now. As crazy ideas as possible.