from innovation to incubation. business success through grassroots innovation
TRANSCRIPT
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From Innovation to IncubationBusiness Success Through Grassroots Innovation
Prof.dr. Stefan Stremersch
Erasmus University Rotterdam IESE Business SchoolRotterdam, the Netherlands Barcelona, Spain
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“The rules have changed. In a single generation, revolutions in technology have transformed the way we live, work and do business. (…) We need to out-innovate, out-educate, and out-build the rest of the world.”
How to Deal with Constant Change?
White House Director of SpeechwritingThis quote is from Obama’s State of the Union Address
(January 2011)
Jon Favreau
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Building a Culture of Innovation
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The greatest challenge to deliver business results is
creating a climate for innovation within the organization
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“Innovation distinguishes between a leader and a follower”
“The real source of wealth and capital in this new era is not material things… it is the human mind, the human spirit, the human imagination, and our faith in the future”
How to Deal with Constant Change?
Steve Jobs
Steve Forbes© Property of Stefan Stremersch ©
You Need Three Things to Initiate Innovation
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Identify unmet needs of your customers.
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1 2 3
Find a great solution for such customer needs.
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1 2 3
Define a strategy to make profit$ from your great $olution.
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But How to Unleash Such Creativity and Out-Innovate Competition?
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Strategy 1: The Visionary Leader
1. Strong and visionary leadership
2. Ferocious planning: defining all details on execution
3. Capacity to sense customer needs
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Risks of Visionary Leader Strategy
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Lack of sustainability of the “Visionary Leader” model?
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Strategy 2: The Lab Elite
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Accomplishments Bell Labs: Transistor, silicon solar cell, first communication satellites, first
cellular telephone systems …
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Risks of Lab Elite Strategy: The Rise and Fall of Corporate Labs
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Risks of Lab Elite Strategy: Intolerance for Contrarian Spirits
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(frog in the kettle)
Management reaction: “That’s cute but doesn’t use films, so don’t tell anyone about it.”
X
Steve Sasson was the first to propose a digital camera
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The Lab Elite
The Visionary Leader
Innovation is not the job of the happy few, but the responsibility of MANY
Grassroots Innovation – emerges from the grassroots. It’s the most natural source of change.
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Why is Grassroots Innovation Successful?
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The Journey of the HMS Beagle
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Charles Darwin (1809-1882)
In the Galapagos islands Darwin found that genetic variation allowed species to adapt to local conditions and improve survival.
Different species of finches in the Galapagos, developed beaks adapted to the particular type of food they needed to eat.
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Think of Your Business as a Finch!
Experiment and Adapt!19
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Principles
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Experiment(Innovation)
Incubate(Survival)
Learn(Adaptation
)
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Experiment (Innovation
)
Incubate (Survival)
Learn (Adaptation
)
Grassroots Innovation and Experimentation
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Principle 1: Embrace grassroots experiments as an organic source of innovation.
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Experiment (Innovation
)
Incubate (Survival)
Learn (Adaptation
)
Survival and Incubation
Principle 2: Incubation allows you to experiment on a scale where failure is survivable.
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Principle 1: Embrace grassroots experiments as an organic source of innovation.
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Principle 3: Gather market feedback, learn and use such insights to adapt and transform your organization.
Learn, Adapt and Transform
Principle 2: Incubation allows you to experiment on a scale where failure is survivable.
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Principle 1: Embrace grassroots experiments as an organic source of innovation.
Experiment (Innovation
)
Incubate (Survival)
Learn(Adaptation
)
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Organic Innovation
Changing Mindset
People Development
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Adapt and Transform: Three Key Benefits of Grassroots Innovation
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Organic Innovation
Changing Mindset
People Development
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Adapt and Transform: Boosting Organic Innovation
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Successful Organic Innovation at 3M
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Organic Innovation
Changing Mindset
People Development
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Adapt and Transform: Changing Mindset
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Changing Mindset: Grassroots vs. Top-Down Philosophies
Top-
Dow
nGr
assr
oots Management Inspires
and Engages Employees, Bringing out their Energy and Helping Them Grow
Management Inspires Participatory and
Experimentation Values
Management Challenges Employees to Innovate and Take
Responsibility
Management Supports Employees By Allocating the
Resources they Need to Implement the
Company’s Strategy
Management Defines a Clear, Deliberate and
Bold Strategy
Management Challenges Employees
to Implement and Execute the Company’s
Strategy
Vision Challenge Support
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Organic Innovation
Changing Mindset
People Development
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Adapt and Transform: Developing People
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Skill DevelopmentUnique Learning and
Coaching OpportunitiesMotivate Staff to
Raise Their Own Baby
Your Staff Helps You Define the Future of Your Firm
Promote Networkingand Relationship Building
Reward and Support YourMost Innovative Employees
Grassroots Innovation Programs: Developing Your Employees
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Grassroots Innovation: Create Passionate New Leaders
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How to Implement Grassroots Innovation?
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THE BEST WAY TO GET STARTED IS TO STOP TALKING AND BEGIN DOING!
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Grassroots Innovation: A Four-Step Process of Business Experimentation
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1. First, inspire your employees to share their innovative ideas.
2. Help employees form winning teams to experiment with their ideas.
3. Identify high-potential teams and build a business case to support their experiments.
4. Support and launch the most promising ideas.
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Real-World Example of a Grassroots Innovation Process
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Innovation is a journey…
Prof. Dr. Stefan Stremersch
Why not follow me on Twitter? Follow @StStremersch
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…not a destination.© Property of Stefan Stremersch ©