be competitively unpredictable! - make it happen with innovation
DESCRIPTION
Competitively unpredictable: two words that spell the key to success in today’s fast paced, highly competitive business arena. If your company has the ability to consistently outmaneuver the competition in ways they never see coming, then the future is bright. Why is being competitively unpredictable so essential now? One key reason is the ever-shrinking window of opportunity. In the past decades, depending on your industry, you could count on having three or five or even seven years after bringing something new to market to make good money before you needed to come up with the next new thing to keep revenues growing. This is no longer the case. While the pace of innovation used to be fast but still manageable, now the window of opportunity is getting shorter and moving faster so you’re forced to innovate ever faster. One of the best examples is the mobile phone industry where they are now counting in months. Open innovation and business model innovation are key concepts for becoming competitively unpredictable and in this session Stefan Lindegaard shares his views on how companies can embrace these concepts in order to bring better innovation to market faster. Specifically, he provides: • an overview of the current state of innovation and what the future will bring us • examples on how leading-edge companies merge open innovation and business model innovation • insights on why companies must embrace failure for better innovation • insights on how companies can use social media for their innovation effortsTRANSCRIPT
www.15inno.com
15inno by Stefan Lindegaard at LinkedIn Groups
Twitter: @lindegaard
Be Competitively Unpredictable!
Hey! Free books on 15inno.com!
Faster pace, shrinking window of opportunity, less time for cash cows
Open innovation and biz model innovation is key for becoming competitively unpredictable!
We need a more holistic approach to innovation!
Credit: OVO Innovation
Directive, invitational Directive, participative
Suggestive, invitational Suggestive, participative
Instructions
Invitations
Directed
None
Relatively few “Everyone”
Supplier Summits, Entrepreneur Days
Partnerships, alliances, consortia, networks
Communities – real life and virtual
FMCG PHARMAMEDTECH
Cycle time, money, IPR and conservatism
Go beyond the obvious areas!
Participation is the new brand
We have no choice!
Current pilot projects:• "People are much more likely to act their way into a new way of
thinking, than think their way into a new way of acting."• Richard Pascale
• Therefore we run pilot projects• - in our production area (solving hard, “unsolvable” problems)• - on improving the core LEGO experience through crowdsourcing• - on how to improve core HR processes• - on an Open Innovation platform
Most corporate innovation teams play catch-up!
Where is the vision and drive?
They lack communication skills and efforts!
They lack the courage to speak up!
They do not innovate on the innovation process!
They do not develop their mindset and toolbox!
Be selective – you don’t have enough resources!
Educate up, down and outside!
Build on existing culture – and learn from others!
Understand the TBX (O) dynamics!
Experiment, iterate – and learn from failure!
CONSIDER: Lean startup methods, social media for innovation efforts and reverse innovation
EMBRACE: Open innovation, business model innovation and the new corporate garage
RETHINK: Disruptive innovation, Crosssing the Chasm and Blue Ocean Strategy
Inditex / H&M: Value chain innovation on steroids
Microsoft Kinect: New technology, new markets
Better Place: Establishing new ecosystem
Premium Ingredients: Mini-factories and communities
AppleP&GGE
NaturaGrundfos
Rolls-Royce
www.15inno.com
15inno by Stefan Lindegaard at LinkedIn Groups
Twitter: @lindegaard
Embrace Failure for Better Innovation
Hey! Free books on 15inno.com!
Companies must embrace experimentation – and the failures that come along with it!
Small failures are accepted, but not big ones: 47 %
Failure is not accepted here: 7 %
More than half of the companies do not recognize failure as an inherent part of an
innovation culture!
“Two types of failure:
- honorable failure is where an honest attempt at something new or different has been tried
unsuccessfully and
- incompetent failure where people fail for lack of effort or competence in standard
operations.”
Credit: Paul Sloane
“A mistake is when you do something wrong, even though you knew the right way to do it.
Failure is when you are trying something new, and you don’t know ahead of time how to
make it successful.
Credit: Jamie Notter
Developing a culture that is constructive about failure requires a new vocabulary.
Smartfailing
When an organization embraces smartfailing, it de-stigmatizes failure internally and uses
failure as an opportunity to learn and to find a better course.
System failure (collapse of communism)
Start-up failure (Pets.com going out of business)
Idea failure (Apple Navigator protype, no launch
Product failure (New Coke tanking)
Major firm failure (Enron going out of business)
System component failure (stock market crash)
Credit: Tim Kastelle
The failure to anticipate / execute on…
…how companies innovate
External change is faster than internal change! You win or lose in these pockets of opportunity!
…platforms for bringing innovation to market
…markets and technologies
Don’t make your platform too complicated!
Don’t mess up like Intuit!
Persistency / consistency is key…
…for becoming preferred partner of choice
Is Intuit moving towards next generation of OI?
Can P&G make next leap with experimentation?
They are building the platforms!
There are no quick fixes because the top executives that got us into this mess are not
ready to lead us out of it!
Too much focus on products, technology
Silo rather than collaborative approaches
Poorly defined innovation strategy (if any)
Lack of resources in budget, people, infrastrucure
Unrealistic expectations on time, resources
Identify reasons, create learning process!
Reward learning behaviors!
Educate up and down on innovation!
Be open – more communication, new terms!
Go beyond products and technologies!
Stage 1: Shock and Surprise
Stage 4: Depression
Stage 6: Insights and Change
Stage 5: Acceptance
Stage 3: Anger and Blame
Stage 2: Denial
Credit: Steve Blank
Six stages of failure and redemption
Get to insights to change behavior…
…commit to challenge / do different next time
Don’t skip acceptance of your role
Don’t get stuck in 2, 3 or 4 – move forward
Credit: Steve Blank
www.15inno.com
15inno by Stefan Lindegaard at LinkedIn Groups
Twitter: @lindegaard
Social Media for Innovation Efforts
Hey! Free books on 15inno.com!
Social media, communities and mobility will drive the next wave of open innovation!
Develop the right conditions and framework
Be competitively unpredictable
Change how we innovate
Clorox
Premium IngredientsIBM
SAP
NineSigma
Nokia
Crowdsourcing, communities, Twitter and LinkedIn
Social media can also work for BtB companies!
…tools, services and platforms that drive virtual interaction and involvement for innovation efforts
Promote corporate innovation capabilities
Get market and competitor insights
Generate more ideas, faster
Identify and interact with innovation partners
What’s in it for me?
Purpose is not defined
Too many digital visitors; few residents
No proven first-mover effect, more Qs than As
Management = What’s in it for them?
Lack of time leads to Catch 22
Facilitators must educate – up as well as down
Identify your focus area, develop content strategy
Set up your platform and channels
Become a curator, start sharing
Track, improve, expand, experiment - iterate
Get in touch!
www.15inno.com
15inno by Stefan Lindegaard at LinkedIn Groups
Twitter: @lindegaard
Hey! Free books on 15inno.com!