Slides of Innovation Courses EGADEMOI Itesm aug 2014
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Transcript of Slides of Innovation Courses EGADEMOI Itesm aug 2014
moises.cielak.net
Mtro. Moisés Nathán Cielak www.academiadeinfluenciadigital.com @mcielak [email protected] Socio Director: ACADI RENATA P.R. FOR THE AMERICAS, ONG DEDICADA A LAS PYMES
Academic background
ITESM, CCM MBA focused in Marke1ng Master of Economics Tecnológico de Monterrey B. Sc. Computer Science
Miami Dade College Diploma in Social Media Marke1ng by The Social Media Marke1ng Academy Doctor A Prima, Univ. Wisconsin-‐Madison
Headlines Congressman ProRP y PRSA Researcher for the AssociaHon for Internet MarkeHng y de la U.S. Social Media MarkeHng Academy
Ex-‐Director Florida Campaign for Senator Barack Obama for President 2007-‐2008
Enterprise Backgrounder Head coach for Companies P&G, Cemex, FedEx Nestlé, Arcelor MiNal, DHL Miami, Master Research, Tecnotoon.com Ex-‐Marke1ng Manager HewleT Packard Latam Ex.Editor in Chief Editorial Televisa,
Writer and columnist for Pulso PYME, Expansión, Obras, Turnberry Interna1onal Real Estate Review.
Lecturer at Univ. Ibero, Westhill College, Univ. Anáhuac, Andina, PetromoN, Chilean Council
May 2014
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• Developing a corporate innovaHve philosophy provides a number of advantages:
1. This type of atmosphere oWen leads to the development of new products and services.
2. It creates a workforce that can help the enterprise maintain its compe11ve posture.
3. It promotes a climate conducive to high achievers and helps the enterprise mo1vate and keep its best people.
© 2012 Pearson EducaHon, Inc. publishing as PrenHce Hall
Introduc1on: The “I-‐Challenge”
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• Innova&ve thinking goes beyond the mere crea1on of business.
• “Ideas come from people. Innova1on is a capability of the many.”
• Innova1ve thinking is an integrated mindset that permeates individuals and organiza1ons.
© 2012 Pearson EducaHon, Inc. publishing as PrenHce Hall
Innova1ve Thinking
1-‐5
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InnovaHon, CreaHvity, and Entrepreneurship • Crea1vity is typically described as the process of genera1ng new ideas.
• Innova1on takes crea1vity a step further by being a process that turns those ideas into reality.
• Innova1on is the process by which entrepreneurs convert opportuni1es (ideas) into marketable solu1ons.
© 2012 Pearson EducaHon, Inc. publishing as PrenHce Hall
The Concept of Innova1on
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Types: • Product innova&on is about making beneficial changes to physical products.
• Process innova&on is about making beneficial changes to the processes that produce products or services.
• Service innova&on is about making beneficial changes to services that customers use.
© 2012 Pearson EducaHon, Inc. publishing as PrenHce Hall
Categorizing Innova1on
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Methods: • Inven%on: the crea1on of a new product, service, or process, oWen one that is novel or untried; revolu1onary.
• Extension: the expansion of a product, service, or process already in existence.
• Duplica%on: the replica1on of an already exis1ng product, service, or process adding the entrepreneur’s own crea1ve touch to enhance or improve the concept to beat the compe11on.
• Synthesis: the combina1on of exis1ng concepts and factors into a new formula1on.
© 2012 Pearson EducaHon, Inc. publishing as PrenHce Hall
Categorizing Innova1on
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Trajectories: � Radical innova%on is the launching of inaugural breakthroughs such as personal computers and overnight mail delivery.
� Incremental Innova%on refers to the systema1c evolu1on of a product or service into newer or larger markets. Examples include the typical improvements and advances in current products and services.
� Disrup%ve Innova%on goes beyond radical innova1on and transforms business prac1ce to rewrite the rules of an industry. In other words, the business prac1ce of an en1re industrial sector could be changed radically.
© 2012 Pearson EducaHon, Inc. publishing as PrenHce Hall
Categorizing Innova1on
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➤ Innova%on Is Planned and Predictable ➤ Technical Specifica%ons Must Be Thoroughly Prepared
➤ Big Projects Will Develop BeDer Innova%ons than Smaller Ones
➤ Technology Is the Driving Force of Innova%on Success.
© 2012 Pearson EducaHon, Inc. publishing as PrenHce Hall
Misconcep1ons of Innova1on
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• Learning how to innovate effec1vely entails managing knowledge within the organiza1on and offers the poten1al to enhance the way the organiza1on innovates.
• How an organiza1on acquires, processes, and learns from the prior knowledge that it has gained is cri1cal to the complete innova1on process.
© 2012 Pearson EducaHon, Inc. publishing as PrenHce Hall
Innova1on & Learning
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} Entrepreneurship: a dynamic process of vision, change, and innova&on. It requires an applica&on of energy and passion towards the crea&on and implementa&on of new ideas and crea&ve solu&ons. Essen&al ingredients include the willingness to take calculated risks—in terms of &me, equity, or career; the ability to formulate an effec&ve venture team; the crea&ve skill to marshal needed resources; the fundamental skill of building a solid business plan; and, finally, the vision to recognize opportunity where others see chaos, contradic&on, and confusion.
© 2012 Pearson EducaHon, Inc. publishing as PrenHce Hall
The Innova1ve Mindset in Individuals
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• Genera1on “E” Nearly 80% of would-‐be entrepreneurs in the United States are between the ages of 18 and 34.
} I = f (i) states that innova1on is a func1on of the innovator.
© 2012 Pearson EducaHon, Inc. publishing as PrenHce Hall
The Innova1ve Mindset in Individuals
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• Characteris1cs: Determina&on and Perseverance Goal Orienta&on Achievement Drive Tolerance for Failure Internal Locus of Control High Energy Level Tolerance for Ambiguity Crea&vity Calculated Risk Taking Vision
© 2012 Pearson EducaHon, Inc. publishing as PrenHce Hall
The Innova1ve Mindset in Individuals
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• The quest for new venture crea1on as well as the willingness to sustain that venture is directly related to an entrepreneur’s mo&va&on.
© 2012 Pearson EducaHon, Inc. publishing as PrenHce Hall
Entrepreneurial Mo1va1on
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© 2012 Pearson EducaHon, Inc. publishing as PrenHce Hall
A Model of Entrepreneurial Mo1va1on
Expecta1on/ Outcome
Comparison Intrinsic/Extrinsic
Rewards
PE PG PC
BE IDEA
Decision to Behave Entrepreneurially Entrepreneurial
Strategy Entrepreneurial Management Firm
Outcomes
Implementa1on/Outcome Percep1on
PC = Personal Characteris1cs PE = Personal Environment PG = Personal Goals BE = Business Environment
1-‐16
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• Venture crea1on is a lived experience that, as it unfolds, forms the entrepreneur. In fact, the crea1on of a sustainable enterprise involves three parallel, interac1ve phenomena: emergence of the opportunity, emergence of the venture, and emergence of the entrepreneur. None are predetermined or fixed, they define and are defined by one another.
© 2012 Pearson EducaHon, Inc. publishing as PrenHce Hall
The Experien1al View
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• Trends • Unexpected Occurrences • Incongrui&es • Process Needs • Industry and Market Changes • Demographic Changes • Perceptual Changes • Knowledge-‐Based Concepts
© 2012 Pearson EducaHon, Inc. publishing as PrenHce Hall
Drivers (Sources) of Innova1on
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• Individuals are Born to Innovate • Innovators Must be Inventors • FiIng the Innovator’s Profile • Innova%on is Being Lucky • Innovators are Gamblers
© 2012 Pearson EducaHon, Inc. publishing as PrenHce Hall
Mythology Associated with Innovators
1-‐19
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} Sources of Stress Insula%on Addic%on to the Innova%on Perfec%onist Syndrome Achievement Orienta%on
} Managing the Stress Network Refresh Yourself The Personal Touch Gain New Perspec%ves Delegate Exercise
© 2012 Pearson EducaHon, Inc. publishing as PrenHce Hall
Innova1on and Stress….Beware!
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• Managers must assume certain ongoing responsibili1es: Frame the Challenge Absorb the Uncertainty Define Gravity
© 2012 Pearson EducaHon, Inc. publishing as PrenHce Hall
Managing Innova1ve Individuals
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• Innova1on appears almost all the 1me, as one of the two or three first bullet points of the company’s agenda.
• The investment of a huge quan1ty of money and hard work in the area of innova1on has produced, really a small amount in what it comes to new wealth.
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• Research and Development
• There’s no sta1s1cal and discernable rela1onship between the spending levels in Research and Development, and almost all the measures in business success.
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• Taking advantage of a disrup1ve technology • One idea for one radical new product • One concept for a truly innova1ve service • One business model that transforms the game • Take advantage of a superior idea
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• Deep and superior capacity for Innova1on:
• One that impulses with consistency, the profitable growth of investments or that allows a company to maintain the compe11ve advantage. • Source of hope and inspira1on for the rest of the business community.
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• Cultural revolu1on of the company, in charge of the CEO and general director of GE, Jeff Immelt
• Innova1on as a deep and systema1c capacity working all through the company. • One engine that impulses and sustains the growth of new investments. • Extend the limits of the company, in an organic way • Transport GE to new business lines, new geographical zones and new customer segments.
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• New strategy leaded by the CEO of P&G, Alan G. Lafley
• Innova1on as the whole aspect, in how the company invents, produces, commercializes and distributes its products. • Reaching new levels of implacable and profitable growth each year. • Bringing the walls that separated the categories of the products, the business units, the sectors and brands down • New organiza1onal model called ‘Connect and Develop’
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• “Immelt and Lafley are riding through a path in which all the ones that dedicate themselves to business will eventually ride. Observe and
learn.”
-‐ Geoff Colvine from Fortune Magazine
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• “One innova1on coming from everyone and everywhere”
• -‐ Dave Whitman, ex CEO of Whirlpool (1999)
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• Implemen1ng innova1on as central compe11on at Whirlpool
• The naming of the vice-‐presidents of innova1on, both in global and regional levels. • The crea1on of big “Tran func1onal innova1on teams”, in each region, dedicated exclusively to the research of new forefront ideas. • The introduc1on of a training program for the whole company, addressed to the development and diffusion of innova1ve mentality and capaci1es. • The naming of 600 “innova1on mentors” and 25 “innova1on consultants”, in which they act as assis1ng experts. • The crea1on of “innova1on counsels”, for the supervision of the con1nual process of the innova1on’ capacity building. • The organiza1on of big communica1on events, called the Innova1on Days, in which the innova1on teams, present their ideas to the other members of Whirlpool, the media, and even Wall Street analysts.
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• Implemen1ng innova1on as central compe11on at Whirlpool
• The crea1on of a broad set of parameters, for measuring con1nually the performance of the company’s innova1ve development, as well as the progress to insert it as central compe11on.
• The establishment of a sophis1cated IT structure, called Innova1on E-‐Space, in which the whole staff of Whirlpool is integrated and mo1vated to show the effort for innova1on, and keep track at the same 1me, of the progress of the ac1vi1es for innova1on inside the company.
• Imagining exci1ng and relevant solu1ons for the customers.
• “If we keep innova1ng, we keep growing” –Jeff Feug, CEO of Whirlpool
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• Mexican and global company focused in the construc1on materials. • “One new category of formidable compe1tors”–Business Week • Third place in the global cement market • “…CEO of CEMEX, Lorenzo Zambrano, decided that the key factor for building a beNer future for his company was innova1on”
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• CEMEX’ Innova1on system elements:
• One group dedicated to innova1on, leaded by an innova1on director, with full-‐1me employees. • Mul1func1onal teams, in charge of genera1ng new ideas and forefront proposals. • One council of innova1on created for the selec1on and financing of these proposals. • Hundreds of “innova1on champions”, which are in charge of being mentors and guide every employee that has generated an idea. • Virtual and online compe11ons of “ping pong”, which allow other people to “rebound” ideas from one side to the other, including the whole organiza1on, and the best in the field.
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• CEMEX’ Innova1on system elements:
• One IT dedicated plaxorm, which accelerates the diffusion of new ideas throughout the whole company, and has an online bank of ideas, designed for facilita1ng the sharing of the employees’ ideas, either if their big or small. • The Innova1on Days, dedicated annually for the recogni1on and celebra1on of the innovators’ work, happen to given the “Oscar Award” to the best implemented ideas. • Ideas for big accelera1on of the company’s opera1ons, such as logis1cs.
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• The innova1on as systema1c capacity:
• Six Sigma • Cycling 1me • Quick customer service • One issue of wrongs and rights in the deep and central compe11on. Why the majority of the actual organiza1ons, even those where organic growth and supposedly innova1on are true strategic priori1es, s1ll don’t find something similar, or even a remotely systema1c and corpora1ve focus of innova1on?
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Real innova1on in the companies, and how to test it: Ask the employees:
Can you describe the innova1on corpora1ve system of your company? Do you consider that the important direc1ves think that every employee of the company is an innovator, that has a poten1al capacity for shaping the course that someday might follow the organiza1on?
Have you received any training for being a business innovator?
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Ask the employees:
What importance does the innova1on has in the evalua1on of your performance and remunera1on?
How hard would it be to get small amounts of experimental capital for trying a new idea?
Would you know who to talk to in the organiza1on to find coaches or mentors that might help with launching the progress of your idea?
The administra1ve process of your company (planning, strategy, budget and capital elabora1on, etc) support your work as innovator?
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Expect as an answer:
Blank looks, why?
There are several ways of suppor1ng the aggressive growth: Innova1on in its products, business models and management systems.
Strategy life cycles are geung shorter
You need a new strategic way of thinking
*The majority of the organiza1ons haven’t created a clear model
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The quality as systema1c and deep capacity * Training to the people * Supplying of useful instruments • Change of parameters and faculty giving of decision to the common workers.
The quality as intrinsic and generalized capacity
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Why are there faults in the quality management?
• Lack of knowledge about the processes, instruments and crucial mechanisms. • Lack of knowledge in how to create quality systems • The innova1on as secondary spectacle: something good to have and as conversa1on subject.
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Solu1on? INNOVATION!
Matryoshka Model Appears to be simple but… * When it opens, it has an effect of integrated pieces. *Require each piece for being complete.
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Matryoshka Model in the innova1on: * A deep and systema1c challenge * A band of interdependent dimensions * Innova1on is where these mechanisms should be integrated appropriately for effec1ve func1oning.
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• Calibrate again all of its systems and central management processes for the conversion of innova1on in one part of the common system.
• “The field has advanced more or less, to the same point where medicine was where leeches, liniments, and magic solu1ons, where the treatment of the era”
-‐ Larry Keeley
• The applied innova1on in the systema1c form, DOES work
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CULTURAL CHANGE for the INNOVATION:
-‐ Time, money and dedica1on -‐ From three to five years
“…manage and domain the innova1on as a disciplined business ac1vity, will help the organiza1on to cul1vate huge financial rewards”
*Make innova1on a way of life
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• Where does innova1on really comes from?
• How can you generate such a radical and rewarding idea that fundamentally changes the expecta1ons of the customer, reinvents the cost structure of your industry, or redefines the bases of the compe11on, in a way that devaluates the skills and ac1ves of your rivals?
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Progress: *Create in people’s lives, the 1me and necessary space for reflec1on, genera1on of ideas and experimenta1on. *Maximize the thinking diversity, required for innova1on. *Propi1ate the connec1on and conversa1on; the “chemical combina1on” that feels the bases for feeding the forefront ideas.
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• The lack of 1me in innova1on:
• The obstacle for the organiza1on to work in a harder and quicker way. • The obstacle complemented with the lack of aNen1on caused by small fragments and distrac1ons.
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Create a culture where the employees have 1me for imagining, experimen1ng and developing their
own ideas.
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Insert the innova1on as central compe11on:
• 75 people from three different geographic zone around the world, to create the process innova1on. • Challenge: formulate a strategic knowledge base of the market that could inspire a new radical thought and one new growth feed by innova1on. • Result:
• Genera1on of ideas, discipline applica1on, and judgment in the process of molding the opportuni1es for crea1ng aNrac1ve business plans and catch the financial value. • Release the employees’ imagina1on from the whole organiza1on and create a bunch of innova1on opportuni1es.
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Inser1ng innova1on as central compe11on:
• Time period: 9 months • “They included some of the highlighted talents of the organiza1on, isolated from their opera1ve func1ons at the moment, where the business needed them”
-‐ Nancy Zinder, Corpora1ve vice-‐president of innova1on at Whirlpool
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POST: A third part of the 75 people came back to their previous jobs to spread the innova1on concept among the lines. The other third part will be full-‐1me innova1on consultants. The remaining third part was assigned to lead new projects of innova1on.
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Par1cipa1on of: • Innova1on councils • Important direc1ves • “The mee1ngs separated the innova1on from the normal day, and turned to be the only place where innova1on took the center away from the daily business demands.”
-‐ Nancy Zinder
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Crea1on of: • Mul1func1onal team plaxorms for innova1on • 10 or 12 members in rota1on
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Crea1on of: • Mul1func1onal team plaxorms for innova1on:
• Challenge: • Explore innova1ve solu1ons rela1ve to big plaxorms or themes. • Develop between 8 and 10 strategic experiments focused on the subject of the assigned plaxorm.
• PROs: The team members first receive an intensive training for them to learn how to act as business innovators. • TIME:
• At least, one day per week, during three or four months. • Team replacement each 10 or 12 weeks.
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Dave Myers from Gore (Flagstaff, Arizona):
In charge of produc1on and new plas1c implants for the heart in Gore IDEA during his free 1me?: Cover the bicycles’ speed cables with plas1c for beNer turn.
RESULT?: Ride-‐On Cable for bicycles.
Next IDEA: Cover the guitar’s strings with plas1c. RESULT?: Elixir strings for acous1c guitars.
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70/20/10 Google’s Method:
70% of their 1me for the main business ac1vity.
20% of their 1me for new strategic projects such as Google News, Earth, Book Search, Checkout and Apps
10% of their 1me for “spoiled” projects.
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Discussions among ethnic, racial and gender diversity.
Bases: Laws approved by the government
and the poli1c conduct. Globaliza1on of business
Know and take advantage of quick demographic changes.
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“If you want to compete globally, you must understand that 80% of the world is not made by white people, and 50% is not made by males”
-‐ Luke Viscon1, partner and cofounder of DiversityInc Magazine
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Advantages of having employees from different na1onali1es:
Helps build bridges that direct to all segments and sub-‐segments plus
niches that exist in a more global customer base
Connect people with different sets of skills, capaci1es and perspec1ves
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How to select your team members? • People that have a divergent way of thinking and people who has a convergent way of thinking. • People who is more analy1cal and people who are more crea1ve. • People who live closer to the office, and people who work more far away. • People who are younger and people who are older. • People with a lot of experience and people with a lot of imagina1on. • People who know of technology and people who know about people. • People from inside the company and people from outside the company.
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High direc1ves
Where can we find the majority of the diversity in the tradi1onal organiza1onal diagram?
On the top or at the base? Broad organiza1on
Employees in charge of customer’s service
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Give voices to:
Young people
People who just arrived to the company
People from the geographic peripheries of the organiza1on.
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“I consider that some of our best ideas have come from the people who are more away from the offices of the CEO; which means, the line employees that interact with the customer on a daily basis. We have a wonderful team of crazy people who are working in our store located in ManhaNan, at 44th street and the fiWh avenue. Now, there is a huge Brazilian community close to the store and the manager said: “Hold on! We’re not doing anything for aNending this community!” therefore, I hired for the store, a selected staff who talks the language. Next, they discovered that many cruises with Brazilian people come to New York; they got in contact with the traveling agency and found that the store was a desired visit for them. Just like that, we receive every Sunday, buses with tourists. If we would’ve waited to someone from Minnesota to come with the idea, we’ll s1ll be wai1ng.”
-‐ Brad Anderson, CEO of Best Buy
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“Innova1on depends as much to the collec1ve different as it is to the aggregated capacity”
-‐ScoN Page, author of The Difference: How The Power of Diversity Creates BeZer Groups, Firms, Schools, and Society
• The different individuals see a problem given from different perspec1ves and try to resolve it in different ways. • The more diverse the group is, the larger the quan1ty of new thoughts for resolving a problem. • Conven1onal solu1ons avoidance.
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In respect of recruitment strategies for the Human Resources division:
DON’T introduce a clone legion Introduce different people that produces an awkward sensa1on in the interviewer. People who thinks different.
“Don’t oblige them to ‘homogenize’ because if they don’t, they’ll be fired”
-‐ Robert SuNon, professor at Stanford University and author of Weird Ideas That Work: 11 ½ Prac&ces for Promo&ng, Managing and Sustaining Innova&on
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“…mix the set of intellectual genes with other voices introduced from outside the organiza1on (and outside the industry) for bringing them together in the process of innova1on” “ The discoveries that happen in these project teams, characterized because of their diversity, oWen come back again to be planted at other industries.”
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A mix of: • Diversity • Energy • Youth • Loudness
A mix of: • Ethnic groups • Age groups • Skin colors • Cultures • Perspec1ves • Experiences • Values
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“Diversity defines health and wealth in the new century na1ons… The new rule is mixing… the mix wins over isola1on. Generates crea1vity, feeds the human spirit, encourages the economic growth and empowers the
na1ons”
-‐ Gregg Zachary, author of The Global Me
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Reaching of new important knowledge for the incorpora1on of a connected and conversa1onal web, full
of vitality.
Great ideas are born through the interac1on and the connec1on of a web, composed by a whole community of
diverse people.
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“…Innova1on is a maNer of a “chemical combina1on”; it’s about taking ideas, half-‐cooked no1ons, compe11ons, concepts and ac1ves that are there and recombine them in ways that allow them to do new interes1ng things or
invent en1rely new products and services”
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Success examples: The unassembled line from Henry Ford The sewing machines from Singer The canned products from Campbell’s The sauces and goods from H.J. Heinz The produc1on of the Star Wars’ saga from George Lucas The online bids from eBay by Pierre Omidyar The products set by Apple: iPod and iTunes
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Innova1on as “crea1ve collision” • Connec1on, conversa1on and modular interac1on “The big ideas rarely have just one progenitor. They
usually acquire form through a series of free associa1ons, automa1cally spontaneous among open
groups of people.” -‐ David Hill, Power Decision Group (San Francisco, USA)
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How do we create that associa1on degree and conversion to the size of a company?
How do we increase the connec1on and conversa1on degree, in which the business units are presented, the divisions, the groups of products, the departments, the research labs, the geographies, etc, as well as outside the company with customers, suppliers, distributors, strategic partners, colleges and universi1es and other groups?
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1. Rethink the organizaHonal diagram • New structures • Interac1on enhancement • Responsibility and experiences distribu1on through the organiza1on
2. Create an open market for ideas • Finish with the companies’ internal monopolies • Create a cultural for ideas with free expression
3. Use the web for taking advantage of the imaginaHon • Use the IT system of the company as global opera1on of innova1on • Engage thousands of members of the organiza1on for work inside the web • Create a 24/7 system • Learn how to use the web
4. Take more Hme for the face-‐to-‐face sessions • Share knowledge and generate ideas inside an experimental context • Create an appe1te for innova1on, and make it contagious
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Build the bases for knowledge, and then innovate through a forefront path
Uno acaba moliendo la misma vieja masa con el mismo viejo molino e invariablemente ob1ene el
mismo viejo pan” -‐ Gary Hamel
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Has your organiza1on reached a state where everyone or many of your colleagues think that
innova1on is part of their job?
Are you taking advantage of the diverse talents of your internal organiza1on, as well as the ones
from the broader markets, where you compete?
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} No Time } Poor Rewards } Under Funded } Job Domain } No Allies } Fellow Employees Neophobia Uninformed Judgments Cau&on Poli&cs
Obstacles to Corporate Innova1on
2-‐83 © 2012 Pearson EducaHon, Inc. publishing as PrenHce Hall
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• Sharing informa1on • Crea1ng opportuni1es for people to demonstrate their skills and competence
• Building and using influence networks
Building Social Capital
2-‐84 © 2012 Pearson EducaHon, Inc. publishing as PrenHce Hall
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• Borrowing • Begging • Scavenging • Amplifying
Resource Acquisi1on
2-‐85 © 2012 Pearson EducaHon, Inc. publishing as PrenHce Hall
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} Two phenomena cons1tute the domain of corporate entrepreneurship
} Corporate venturing approaches have as their commonality the adding of new businesses (or por1ons of new businesses via equity investments) to the corpora1on. This can be accomplished through three implementa1on modes – internal corporate venturing, coopera1ve corporate venturing, and external corporate venturing.
} Strategic entrepreneurship approaches have as their commonality the exhibi1on of large scale or otherwise highly consequen1al innova1ons that are adopted in the firm’s pursuit of compe11ve advantage. These innova1ons may or may not result in new business for the corpora1on.
Corporate Innova1on as a Strategy
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• DefiniHon: “A vision-‐directed, organiza%on-‐wide reliance on entrepreneurial behavior that purposefully and con%nuously rejuvenates the organiza%on and shapes the scope of its opera%ons through the recogni%on and exploita%on of entrepreneurial opportunity.”
Corporate Innova1on as a Strategy
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• The CriHcal Elements: 1. Create The Vision 2. Encouraging InnovaHve Thinking Radical Innova%on Incremental Innova%on 3.Establish an InnovaHve Environment 4.Develop InnovaHve Managers 5.Commit to InnovaHon Teams
Corporate Innova1on as a Strategy
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The CriHcal Elements: • Create The Vision • Encourage InnovaHve Thinking • Radical InnovaHon • Incremental InnovaHon • Establish an InnovaHve Environment • Develop InnovaHve Managers • Commit to InnovaHon Teams
Corporate Innova1on as a Strategy
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} Major Roles: Innovator: The person who has made the major technical innova1on.
Venture Manager: The internal entrepreneur responsible for the overall progress of the project.
Champion: Any individual who makes a decisive contribu1on to the project by promo1ng its progress through the cri1cal early stages, par1cularly up to the point of implementa1on.
Innova%ve CEO: The individual who is in charge of the venture and controls the alloca1on of resources (e.g., a sub-‐CEO, a division manager, or a venture division manager).
Sponsor: The high-‐level person in the parent company who acts as buffer protector, and modifier of rules and policies and who helps the venture obtain the needed resources.
Corporate Innova1on as a Strategy
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In order to maintain this innovaHve mindset in an organizaHon, managers must:
• Establish a clear defini&on of the specified challenges that everyone involved with innova&ve projects must address.
• Make the uncertainty of pursuing innova&ve projects less daun&ng. Create the self-‐confidence within all employees that they can act on innova&ve opportuni&es.
• Clear out any obstacles that arise as a result of the innova&ve project progress.
Sustaining Corporate Innova1on
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1. Challenging Orthodoxies 2. Harnessing Discon1nui1es
3. Leveraging Competencies and Assets 4. Understanding Unar1culated Needs
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• The radical innovators are repliers • They’re people that like polemics of a conven1onal concep1on • They’re people willing to reject these huge and unconver1ble orthodoxies of the industry • They ques1on beliefs that other people give as granted • If they don’t ask the orthodoxies, they might impose the possibility of new opportuni1es for genera1ng wealth in the organiza1on.
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Orthodoxies:
Conven1onalisms aNached to the boNom of a company or industry, shared by many, in respect
to what leads to success
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• Facing the orthodoxies of a company: • Example:
MicrosoW provides its soWware in a complete package presenta1on, when Google provides it through the web Obstacles? MicrosoW, because of checking every covered detail, create delays in the process of produc1on and mistakes for making the delivery in a quicker way, e.g. Vista
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• Troubles for the consumer: The MicrosoW’ updates are complex and slow. In the case of Google, the updates are short and easy to handle, because of the fragment of the chosen soWware.
¿Another compe1tor for MicrosoW? Linux. The company provides open licensees for the general public.
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• Troubles for the Consumer: The MicrosoW updates, must be bought, when Google gives them for free.
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Their profits are focused on: -‐ Investments from adver1sers -‐ The clickthrough of the browser -‐ The chance of free search -‐ The official installa1on of the browser and now available in new hardwares.
Their profits are focused on: -‐ SoWwares -‐ Updates -‐ Digital adver1sing
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• Study and reject the orthodoxies, or bring down the conven1onal beliefs.
• Advance in opposite direc1ons, and abandon the tradi1onal strategies
Example: • Whole Foods Market, Odwalla, Vita Water and Fresh Express • It’s not “value and commodity”, it’s “nutri1on and authen1city”
Result? Loyalty to the customer because of their leadership in innova1on of products and acquisi1on from bigger brands such as, Coca-‐ Cola
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• Conscious of the fact that things are now changing, in what it comes to fundamental and understand the revolu1onary pres1ge. • Catch by intui1on
“El futuro está enraizado en el presente” -‐ John NaisbiN
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• A.k.a. • Digitaliza1on • Globaliza1on • Emergence
• DISCONTINUITY: A sequence of trends that have the potenHal to drasHcally change the rules of the compeHHon, or the industry structures, discovering a specific quanHty of new opportuniHes
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• The people work more 1me now, than before • The number of mono-‐parental families is increasing in a constant way • The people now marries older than before • The people spend more 1me online
Where is the interacHon of these trends? When you bring them together, which is the major landscape
that shows up?
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• Looking for interac1ons among trends: • The older and experimented workers that look for updates and renova1on of skills • The interest for alterna1ve, naturalis1c and holis1c medicine • The search for spirituality, of equilibrium and life quality • The turn of informa1onal economy or knowledge • Cheaper and beNer quality informa1on • The capacity and desire of looking younger or conserving yourself younger, thanks to the medical improvements. • The birth rate is lower (in the developed countries, the people are having less kids) • The popula1on is geung older, but more ac1ve • The decrease in the savings rate
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• Looking there when your compe1tors don’t
• Amplify the weak signals for the an1cipa1on of the consequences in second or third instance.
• Try to understand the trends inside the historical context
• Look for interac1ons among trends
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• Organiza1ons as compe11ve porxolios and strategic assets
CENTRAL COMPETITION: Unique or rare set of skills, knowledge and experience that produces a benefit valued by the customers
and the differenHaHon of the compeHHon.
STRATEGIC ASSET: Possession of a company that is hard to imitate, develop or acquire, and represents the base of the compeHHve
advantage.
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• Create value for the customer
• Be unique or at least short (at least at the industry of its company, or what is beNer, in the world).
• Be sustainable through a long and significant period of 1me
• Be important for the actual posi1on of the company
• Allow its use in new products, markets or businesses.
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• Assets in form of inputs: access to suppliers, loyalty to the suppliers, financial capacity. • Assets in form of processes: protected technology, rules, func1onal experience, infrastructure • Assets in form of channels: access to distributors, loyalty to the distributors, webs of distribu1on. • Assets in form of consumers: informa1on of the customers, loyalty to the customers, brand recogni1on. • Assets in form of market knowledge: know the customer’s, compe1tors’ and suppliers’ behavior.
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• Introduce yourself to the body of the client • Use of IT systems for beNer sa1sfac1on and customer care
Customer’s knowledge: Unsa1sfied need, or customer’s frustra1on, that can be the
base of a new business opportunity.
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• Direct observa1on • Mapping the customer’s experience • Find analogies with other industries
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• Invest 1me, money and effort for building the truly new knowledge bases
• The unstudied dogmas
• The trends without explosion • The compe11ons and the underu1lized assets
• The needs of the clients without being expressed
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• Send the members of the discovery team to talk about the transversal sec1ons of the organiza1on
• Get opinions from other members working in the organiza1on
• The informa1on given will be used for the development of new knowledge.
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• The knowledge allows you to see new opportuni1es and discover the strategic implica1ons that will alter or change the rules of the game? • • Each knowledge represents a singular point of view, sponsored by documented learning (data, observa1on, interviews, secondary research)?
• The knowledge asks for the conven1onal and doesn’t go back simply to enunciate the evident?
• Each knowledge is well ar1culated (and doesn’t leave any space for much found interpreta1ons)?
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• Each discovery team has a knowledge porxolio? For example, the “orthodoxy” team and the “discon1nuity” team, have knowledge for each element of the business model? The “compe11on” team has gathered the knowledge that reflect the future and latent, central and possible compe11on?
• The “customer knowledge” team has knowledge about the complete experience of the client and all the meta important segments?
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Results of the Discovery Knowledge:
• Something that was unknown un1l now: “something that we’ve never seen before”
• Something that was underrated un1l now: “something we saw, but truly give as discounted, or not very important, because simply, it didn’t seem like relevant un1l now”.
• Something that was underes1mated un1l now: “something in which we were working already, and we know it’s important… but men! We should’ve done a lot more with it!”
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• How can we create new knowledge that lead to innova1ons that change the game?
• How can we know if we’re pushing our thinking and rejec1ng our central beliefs?
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• Since creaHvity is a set of thinking skills, it can be developed. Anyone can become more creaHve. CreaHve skills are built through developing the habit of looking for new problems, trends and opportuniHes in order to make things beTer for the people of the world.
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The Nature of Crea1vity
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• CreaHvity comes totally from the unconscious.
• Children are more creaHve than adults. • CreaHvity is spontaneous inspiraHon. • Many creaHve works go unrecognized and are only discovered decades later.
• Everyone is creaHve.
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Misconcep1ons Surrounding Crea1vity
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• In an organizaHonal sekng, we can say that creaHvity occurs when a manager has a new idea or sees an opportunity that is feasible and profitable for the company.
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Defining Crea1vity
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• Domain Skills • CreaHve Thinking Skills Divergent Thinking Convergent Thinking
• Intrinsic MoHvaHon
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Elements of Crea1vity
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• Phase 1: Background or Knowledge AccumulaHon
• Phase 2: The IncubaHon Process • Phase 3: The Idea Experience • Phase 4: EvaluaHon and ImplementaHon
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The Crea1ve Process
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• Idea Crea%vity • Material Crea%vity • Organiza%on Crea%vity • Rela%onship Crea%vity • Event Crea%vity • Inner Crea%vity • Spontaneous Crea%vity
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Crea1ve Areas
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Innova1on Accelera1on Transforming Organiza1onal Thinking
Part II
Individual InnovaHon Skills (I-‐Skills)
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Change is the key word in innova1on. The more we do something that fundamentally changes our market and forces our compe1tors to react to us, the more innova1ve we are.
Table 4-‐1 provides an adapted version of the Kirton Innova1on-‐Adap1on instrument for gauging whether you embrace rou1ne or change.
Introduc1on
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} Adaptor Characterized by precision, reliability, efficiency, methodical behavior, prudence, discipline, conformity.
Concerned with resolving problems rather than finding them.
Seeks solu1ons to problems in tried and understood ways.
Behavior Descrip1ons of Adaptors and Innovators
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} Innovator Seen as undisciplined, thinking tangen1ally, approaching tasks from unsuspected angles.
Could be said to discover problems and discover avenues of solu1on.
Queries problems’ concomitant assump1ons; manipulates problems.
Behavior Descrip1ons of Adaptors and Innovators
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• InnovaHon Mentorship • IncenHves for the InnovaHve Employee • InnovaHve Behavior
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Ingredients for Enhancing Innova1on at Work
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• Closed InnovaHon The closed approach to innova1on is an aNempt to generate new business breakthroughs through the u1liza1on of the people, knowledge, and technology within the company’s boundaries.
Approaches to Innova1on
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} Closed InnovaHon Principles 1. Hire the best and brightest people, so that they work for you and not your compe1tors. 2. Make discoveries and developments yourself, so that your company brings new products and services to market. 3. Discover something first so that you’re the first to market it. 4. Invest great amounts in R&D, in order to insure that your company generates the best ideas and stays ahead of the compe11on. 5. Control intellectual property, in order to ensure that your company profits from it and not your compe1tors.
Approaches to Innova1on
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• Open InnovaHon Open innova1on implies that the firm is not solely reliant upon its own resources for new technology, product, or business development purposes. Rather, the firm acquires cri1cal inputs to innova1on from outside sources.
Approaches to Innova1on
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The following quesHons are examples that can help guide you in gaining insights about your customer’s background, aktudes, and behavior:
} What common physical features do the customers have, if any?
} What common ac1vi1es do they do? } What do they typically wear? } What are typical jobs they hold? } Where do they typically live? } What is the most interes1ng thing about these customers?
} What one word or phrase best describes these customers?
Sources of Opportunity
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1. Social Goals 2. Life Goals 3. Problems 4. Fact Finding
Sources of Opportunity
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• CommodiHes and Materials • Products • Services • Experiences and TransformaHons
Seizing Opportunity
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} New Product Development Concept Development: The first step in conver1ng an opportunity into an innova1on is to develop a clear concept of what you want to achieve. Prototyping: Once the concept is well defined and evaluated, it is 1me to start to transform it into a physical product, service delivery model, or customer experience. Final Evalua%on: AWer a prototype is modeled, profitability analysis is performed to determine breakeven points in terms of ini1al investment as well as rates of return that will be realized through selling the product based on projected cash flows.
Conver1ng Opportunity Into Innova1on
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A Unique SWOT Analysis Approach } Diverge on the strengths, weaknesses, opportuniHes, and threats of your organizaHon.
} Converge on the main strengths, weaknesses, opportuniHes, and threats.
} Clarify and select the key strengths, weaknesses, opportuniHes, and threats.
} Add core competencies to the strengths column. } Explore how strengths and core competencies can be leveraged. } Explore ways to improve weaknesses. } Discuss threats.
Conver1ng Opportunity Into Innova1on
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The moment that management has decided the product, service, or experience is ready to launch, is called the point of commercializa%on. (Chapter 8 will explore this component in more detail)
Commercializa1on
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Personal Computers: Idea = Osborne/Apple Market =IBM Online Bookselling: Idea = Charles Stack Market = Amazon Diapers: Idea =Chicopee Mills Market =P&G
Table 4.4 Two Types of Innovators:
Idea Explorers and Market Creators
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Innova1on Accelera1on Transforming Organiza1onal Thinking
Part III
The Design FuncHon in InnovaHon (I-‐Design)
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Innova1on Accelera1on Transforming Organiza1onal Thinking
Chapter 5 The Design Thinking Process
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• Herbert A. Simon, professor and 1978 Nobel Laureate in Economics, once said,
“Engineers are not the only professional designers. Everyone designs who devises courses of ac&on aimed at changing exis&ng situa&ons into preferred ones.”
Introduc1on
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• Design is the process of shaping an idea into an ar1fact, which is something we can observe and manipulate.
• When we design, we bring an idea into the world for others to comprehend.
Design
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Figure 5-‐1
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Creativity
Proa
ctiv
ity
Innovation
Entrepreneurship
Design
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• Only arHsts, engineers, and architects use design. • R&D departments are where companies should do design.
• Design is too complex to be used by the average manager in the company.
• Design would cut into a manager's daily schedule and only lead to frustraHon.
• Design will slow down the innovaHon process.
Design Misconcep1ons
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• Design is too fuzzy and will take the manager away from the realiHes of business.
• Design is just another business fad. • Design is the same thing as innovaHon. • Design is too quirky for a business environment.
Design Misconcep1ons (cont.)
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Elements of Design Thinking • Accept that constraints are part of design. • Seek the peaceful coexistence of desirability, feasibility, and viability.
• Inspira%on • Proac%vity • Humility • Flexibility • Focus
Design Thinking
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} Paraphrase a design challenge into a form worth working on.
} UHlize restricHon-‐free thinking to avoid premature judgments.
} Gather informaHon from a variety of sources and arrange the knowledge into an associaHve network.
} Generate and refine ideas unHl they adapt to the secHon of the world for which they are intended.
} Ideas should be translated into different prototypes (e.g., visualizaHon, mock-‐ups, models).
} Designers should consciously select soluHon paths. } Search for feedback and involvement from people with diverse backgrounds and talents.
Design Guidelines
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• Step 1: Play-‐ Play is a vital aspect of the design process.
• Step 2: Display-‐ Once the concept has been fully developed, it is now ready to be displayed.
• Step 3: Watch the Replay-‐ The third step of the itera1ve process is called “Watch the Replay” because it is 1me to reflect on others feedback.
Itera1ons: The Secret Sauce
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• For a design to be taken further in the organizaHon it must fit with the company’s strategy. Given limited Hme, money, and other resources, you must ensure that the design meets the vision, mission, and goals of the company.
An Important Caveat to the Beginning Designer
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Innova1on Accelera1on Transforming Organiza1onal Thinking
Chapter 6 Design Driven Innova%on
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• The manager who can speak “geek,” as well as talk money, will be able to acquire needed feedback and gain the support of technical colleagues. Engineers and produc1on managers can become valuable partners in your innova1on journey. They will help you shape your ideas into more feasible and exci1ng products and services.
Introduc1on
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• Engineers are very goal oriented. • Engineers approach problems like an economist.
• Engineers seek the most efficient solu%on to a problem.
Engineering
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• Chemical Engineering • Civil Engineering • Electrical Engineering • Computer Engineering • Industrial Engineering • Mechanical Engineering • Industrial Designers
Engineering Disciplines
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• A prototype is a physical representaHon of your idea and is useful for aTaining more in-‐depth feedback. A model of your idea makes it more realisHc. It’s no longer just on paper, so others can look at it from every angle. Therefore, a prototype is rich with details of what you are hoping to build.
Prototyping
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Step 1: Drawing • Sketches: When you get an idea, the first thing you should do is draw a quick sketch and jot down notes.
• Technical drawing: As you progress with an idea, you may want the assistance of an engineer or draWsman to draw more technical sketches of the product.
Prototyping in 5 Steps
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STEP 2: Model building • Making it real: A complement to drawing is model building.
• Materials for model building: Paper, illustra1on board, heavy cardboard, poster board, bristol paper, chipboard, museum board, foamcore, canson paper, balsa wood and basswood are good materials to have on hand.
• Tips for building models • Business viability
Prototyping in 5 Steps
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Step 3: Conceptual Prototyping • The purpose of a conceptual prototype: A conceptual prototype advances the best elements of your previous rough prototype. The rough prototype should have given you a general idea of what the product might end up being, but the conceptual prototype starts to take on more detail of the form, fit, and func1on of the final design.
Prototyping in 5 Steps
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Step 3: Conceptual Prototyping Rapid prototyping techniques: • Computer-‐Aided DraWing (CAD) program • Laminated Object Manufacture (LOM) • Fused Deposi1on Modeling (FDM), • Solid Object Prin1ng (SOP) • Computer-‐Aided Manufacturing (CAM) systems
Prototyping in 5 Steps
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Step 3: Conceptual Prototyping The 3 dimensions of a good prototype: • The three criteria that determine the quality of a prototype are: func1onality, expressivity, and credibility.
• Manufacturability should also be considered.
Prototyping in 5 Steps
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Step 4: Working Prototype • The purpose of a working prototype • Building a working prototype • Machine principles • Presenta%on prototyping
Prototyping in 5 Steps
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Step 5: Manufacturing Processes • Manufacturing prepara%ons: Once the prototype has been approved, it’s 1me to manufacture it.
• Tooling up: If your product has a unique shape, tools and equipment may need to be prepared to manufacture the object.
Prototyping in 5 Steps
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• D.I.Y. stands for Do It Yourself, and it is increasingly becoming an ethic that is filtering into all areas of life.
• If there was ever a 1me to learn how to design and prototype, it is today. Companies are embracing design, and prototyping technologies are becoming easier to use, less expensive, and more available.
The Emergence of the DIY Movement
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• Commodity Prototyping Commodi1es are resources that are obtained from the natural world, and are typically u1lized to manufacture products.
• Service Prototyping Service-‐based businesses provide specific tasks customers want done but don’t want to do themselves.
• Experience Prototyping Experiences are memorable encounters a company provides to its customers.
• TransformaHon Prototyping Transforma1ons are experiences that help customers realize their aspira1ons and dreams. In a transforma1on, the customer is the product.
Prototyping Commodi1es, Services, Experiences, and Transforma1ons
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Find the way of taking advantage of all the latent crea1vity that is available in your
organiza1on, and your broad web of clients, supplies, and partners when looking for new
growth opportuni1es
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• Cul1vate the innovators among your organiza1on
• Use the power of the web
• See beyond the organiza1on
• Channel energy for the forma1on of a
voluntary community
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1. Your objec1ves: Are you looking for raw ideas? Ideas ready for the market? Products ready for the market?
2. The compe11on dynamic in your industry: Which is the rhythm of technology and the market change?
3. The strengths and the size of your company: How big is your global reach? How much recogni1on has your brand around
the world?
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• Who from outside would be interested in the problems of my company?
• What type of investment is required for waking up the sympathy and the trust of this community?
• What incen1ves, out of monetary, would emerge contribu1ons to the voluntary?
• What mechanisms, websites, revision processes from the pairs, discussion forums, rules and protocols, design instruments can we used for structuring their contribu1ons?
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Recognize that innova1on is in great part a game of numbers, in which you should
generate an infinity of ideas, where some will come as big winners
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Increase your probabili1es of inven1ng new value by opening your project process to a
broad range of opportuni1es for the innova1on, and not only to new products,
new technologies and one “forefront" design
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A range of new opportuni1es:
Technology innova1on Product innova1on Service innova1on
Opera1on innova1on Cost innova1on
Experience innova1on Management innova1on Business Model innova1on
Industry innova1on
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Look for ideas that have a true poten1al for
transforming the game, by contras1ng diverse types of knowledge among them, to see if, at the moment they crash, new opportuni1es are discovered for innova1on.
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• Study the shared orthodoxies in the company, and the industry, and ask what would happen if the rules were rejected.
• Iden1fy the deep trends that operate in the market for advantage of the company.
• Take a look to all the compe11on and assets, in search of new growth opportuni1es.
• Iden1fy needs of the client that haven’t been expressed or sa1sfied
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Results? • In the year 2000, PECO Energy Corpora1on merged with Unicom,
transforming their new name to PECO An Exelon Company. • Today, is the biggest nuclear energy producer in the USA.
• The 17 different installa1ons of Exelon generate 18% of the total nuclear energy available around the country.
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Briva by Whirlpool -‐ Trend: Homes occupied by just one person. -‐ UnsaHsfied need: -‐ Electro domes1cs designed for just one person.
-‐ Orthodoxy: “Why wouldn’t a dishwasher look like a microwave oven, which means smaller, more compact and quicker?” -‐ Central CompeHHon: Design, Produc1on y and Marke1ng of electro domes1cs.
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Create targets of innova1on, and address your genera1on of ideas to the center of
corpora1ve challenges, problems with clients, or ques1ons of the industry, defined with
clarity.
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How can we increase the volume of ideas that we would take in considera1on?
How can we improve the quality of the ideas
generated?
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ANending groups of unsa1sfied or unaNended customers
Supplying new or different benefits
Obtaining or giving value in an unusual way
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Low-‐cost advanced technology
A variety of unmistakable products in different segments of the standardized mass market
Offered specialty products in low prices, which is convenient to
the segment niche, among large volume businesses
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Conceptual map that describes the way in which a company creates, delivers and obtains value.
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Who are our clients?
Which segments of the market do we aNend and which geographies?
Who are the buyers of our goods and services?
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Which are the products and services that we sell?
What benefits and solu1ons do we deliver to our clients?
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Which distribu1on channels do we use?
Which is the configura1on of our supply value?
Which are the processes and central ac1vi1es that translate our compe11on, assets and other inputs in value for our clients
(products)?
Who are our partners?
How do our suppliers and partners help us to deliver value?
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For what do we charge our customers?
Which are the main costs that we constrain for being able to deliver what we offer?
How do we obtain value?
What model do we use for determining prices? (for example, the standard quota in front of a subscrip1on, own rate in front of the
adapted person; direct in front an indirect through the third par1es; by packages in front of a separate leNer; standard prices
in front of market bases; etc)
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How do we differen1ate ourselves from the compe1tors?
How do the clients experiment this difference?
To which differences might concede more value?
How sustainable is our differen1a1on?
Is it protected by central compe11ons and strategic assets that we only possess?
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Two different objec1ves for innova1on in the business model:
1. Try to invent totally new business models, that have never been seen at the industry
2. Propi1ate the con1nual evolu1on of the existent business model of your company
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A poten1al opportunity for crea1ng value, separa1ng themselves from the rules of the industry.
A poten1al blind side or an Achilles’ heel that compe1tors could
use for undermine or devaluate your posi1on
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Who do we target/aNend?
What do we offer?
How do we offer it?
How do we make money?
How do we differen1ate ourselves and maintain it as an advantage?
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Reexamine each component, by using the fundamentals of your new strategic knowledge, for detec1ng new innova1on
opportuni1es.
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“Make it about inven1ng fundamentally new business models, or propi1ate the evolu1on in which you already have, the acid test is for knowing the poten1al of any business model, for crea1ng superior value to the average, especially for the clients, and with it, new
wealth, which is the measure of its “radicalism”.·∙
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How can I get that my actual business model maintains itself fresh and innova1ve?
How can I make sure that we’re thinking in a sufficiently broad way when we look for new
opportuni1es?
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Innova1on Accelera1on Transforming Organiza1onal Thinking
Part IV
OrganizaHonal InnovaHon (I-‐Teams)
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Innova1on Accelera1on Transforming Organiza1onal Thinking
Chapter 7 Audi&ng Organiza&onal Innova&on
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According to ON (1989), some of the best defini1ons of culture include:
• It is made up of the values, beliefs, assump%ons, behavioral norms, ar%facts, and paDerns of behavior.
• A social energy that moves members to act. • It is a unifying theme that provides meaning, direc%on, and
mobiliza%on for organiza%on members. • It func%ons as an organiza%onal control mechanism,
informally approving or prohibi%ng behavior.
Introduc1on
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Entrepreneurial Readiness in Organiza%ons • The Organiza1onal Metaphor Innova%ve Readiness in Organiza%ons • Organiza1onal Assessment of Innova1on and Crea1vity
• The Corporate Entrepreneurial Assessment Instrument (CEAI)
Assessing Innova1on in Organiza1ons
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The Organiza%onal Metaphor • Assesses a firm’s entrepreneurial culture in an informal,
non-‐threatening way. Besides serving as an assessment method it also serves as an icebreaker and a way to open creaHve channels within groups of individuals. ParHcipants are asked to take factors of organizaHonal life and translate them into metaphorical images allowing employees to describe aspects of the firm that are not always posiHve in a way that is non-‐threatening and humorous.
Entrepreneurial Readiness
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} Purpose: This exercise evokes a descrip1on of your organiza1on from a dynamic living organism perspec1ve.
} Goal: To draw an animal that best represents our organiza1on – real or imaginary?
} InstrucHons: In your group, reach some agreement with answers to the following ques1ons or statements. The answers must be represented on the drawing…no words are allowed! ◦ What animal (real or imaginary really depicts the organizaHon today? ◦ Describe this animal in detail. ◦ Is it male, female, neither, both? ◦ Describe its temperament…gentle, domesHc, wild, unpredictable. ◦ What are its feeding habits, living rouHnes, and other habits? ◦ Describe its environment, how it succeeds in compeHHon for food? ◦ What are its strengths, weaknesses, vulnerabiliHes? ◦ How does it relate to the internal systems which comprise it? Does it use
its organs for funcHons to its advantage or cause harm to it? ◦ How would you adapt or change the animal if you had the power to do so
and why? (to be explained aqer the drawing is completed)
Table 7.1 Organiza1on Metaphor
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• One of the best ways to raise a good discussion about a firm’s “innova1ve readiness” is to fill out the following ques1onnaire, called the Organiza&onal Assessment of Innova&on and Crea&vity.
• Just follow the instruc1ons and when you are finished you will be given given further instruc1ons on how to score the ques1onnaire.
Innova1on Readiness
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• Another assessment instrument that has proven successful is the Corporate Entrepreneurial Assessment Instrument (CEAI). It is one of the few research-‐based surveys that aTempts to measure the innovaHve readiness within an organizaHon. While the instrument has been through a number of iteraHons since its first publicaHon (Kuratko, Montagno & Hornsby, 1990) the development of the survey items are extensively based on the research and wriHngs to date (Hornsby, Kuratko & Zahra, 2002; Hornsby, Kuratko, Shepherd, & BoT, 2009).
Corporate Entrepreneurial Assessment
Instrument (CEAI)
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The instrument features 48 Likert-‐style ques1ons that are used to assess antecedents of innova1ve behavior. Five stable antecedents of middle-‐level managers’ entrepreneurial behaviors are examined:
} (1) management support: the willingness of top-‐level managers to facilitate and
promote innova1ve behavior, including championing of innova1ve ideas and providing necessary resources,
} (2) work discre&on/autonomy: top-‐level managers’ commitment to tolerate failure, provide decision making la1tude and freedom from excessive oversight, and delegate authority and responsibility,
} (3) rewards/reinforcement: development and use of systems that reward based on performance, highlight significant achievements, and encourage pursuit of challenging work,
} (4) &me availability: evalua1ng workloads to assure 1me to pursue innova1ons and structuring jobs to support efforts to achieve short and long-‐term organiza1onal goals, and
} (5) organiza&onal boundaries: precise explana1ons of outcomes expected from organiza1onal work and development of mechanisms for evalua1ng, selec1ng, and using innova1ons.
}
Corporate Entrepreneurial Assessment
Instrument (CEAI)
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• The CEAI can significantly benefit organizaHons and is of value to managers seeking to develop a corporate innovaHon strategy. Why? Because the instrument provides an indicaHon of a firm’s likelihood of being able to successfully implement an innovaHon strategy. It highlights areas of the internal work environment that should be the focus of ongoing design and development efforts. Further, the CEAI can be used as an assessment tool for evaluaHng corporate training needs with respect to entrepreneurship and innovaHon.
Diagnosing the Internal “Readiness” for Corporate Innova1on
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A Corporate Innova%on Employee Development Program } (1) IntroducHon to Corporate InnovaHon
} (2) InnovaHve Breakthroughs } (3) CreaHve Thinking } (4) InnovaHon Development Process } (5) Barriers, Facilitators and Triggers to InnovaHve Thinking } (6) InnovaHon }
Create an Understanding of the Corporate
Innova1on Processes
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How radical is the idea? How big or important can it be?
What type of consequences would it have in the clients, the compe11on, the industry?
How big is the poten1al market? Would clients want it?
How interested would they be? How viable can this be?
How mature the technology is? Do we have the resources, compe11on, and capaci1es for
materializing it or can we obtain it somewhere else, meaning through socie1es?
Do we have distribu1on channels for taking this to the market?
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The incrementalism is no longer the way for resolving the func1onality and growth problems of the company
The solu1on is focused on radical innova1on that changes the
game
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One idea is radical if it goes through one or more of the three following challenges:
Does it have the strength for dras1cally recomposing the
expecta1ons and behaviors of the clients?
Does it have the strength to change the base of the compe11ve advantage?
Does it have the strength to change the industry’s economy?
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How do we get that the people be willing to pay for their own coffee previously, in a maNer of days or even weeks before?
Risky? The card offers the clients a solid benefit The risks were small and the performance huge
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If we gain success with this idea, how many people would be interested in it?
When would it change or improve the lives of the people as a
result of this idea?
How much produc1ve change would it produce in the industry as we know it today?
How much would the company’s/industry’s economy will
change?
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How do I get to a good equilibrium in the incremental and radical ideas that make part
of my porxolio?
How can I make sure that the radical innova1ons survive inside my company?
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A porxolio of growth plaxorms
A porxolio of clients’ problems
One architecture of innova1on
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Then, you need congruence:
What we are today
Create op1ons Create a direc1on
What we Can be someday
The racism or the cluster of opportuni1es creates one new growth plaxorm
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• Types of clients: Which segments of poten1al clients would we focus on?
• Benefits of the client: Which are the main benefits that we will offer to the clients that we want to aNend?
• Products/services offers: Which areas we will dominate with our offers?
• Geography: Do we ambi1on to be a local, regional or global leader?
• Central Compe11on: What compe11ons do we wish to dominate or employ?
• Economic model or u1li1es: What investment and u1li1es model we will employ? For example, we will go from a shopping model to a subscrip1on one.
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The goal is to define the specific vectors that the company will follow for transforming its existent business model or reinvent the rules of the industry.
First innova1on vector
Second innova1on vector
Third innova1on vector
Opportunity cluster
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• Each exis1ng project or ini1a1ve in the company, can be evaluated in terms of how good it aligns with the emphasis of innova1on inside the
organiza1on. • Each decision of where should the resources should be des1ned, can
be evaluated with the reason of the same dimensions.
• Are we developing an innova1on architecture, that prints congruence and consistency to our opportunity porxolio and that defines what we
wish the company to be?
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• Do we find consensus? Does it exist a shared point of view in respect of what will the company be?
• Will these answers amaze the compe1tors? Or, are the same type of things that we will listen if we assist to a conference at the industry, meaning: “we should have more environmental conscience”, “we should act by thinking
more in the clients”, etc?
• Does these answer reflect the priori1es of the company to a short period of 1me? For example, to create new compe11on, follow new types of people, link to new partners, meaning, specific steps that connect with the point of view on a longer period of 1me, how do we wish to reform the company in
the world?
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• It’s given in original and deep knowledge… that they’re understood as a visceral form.
• It has been dis1lled in many op1ons of compe11on… through a transparent process
• Has audacity aspira1ons… but is immediate prac1ce. • Has been born from a deep engagement… but its tenta1ve in fair
measure.
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• Look to the future: Does it represent our singular point of view about the future that we wish to create?
• It’s dis1nc1ve: is it clearly different from the other compe1tors’ tradi1onal strategies and non-‐tradi1onal threats?
• Its founded on facts: Is it well constructed in protected knowledge about orthodoxies, trends, compe11on/assets and clients?
• Its inspiring: Will it allow to the organiza1on to expand? Will it generate the passion of the func1onal and future leaders?
• Its prac1cal: It will supply: a clear guide for the posi1oning, the assignment of budget, the acquisi1ons, the management ac1vi1es and the talent assigna1on?
Will it supply goals for the experimenta1on and learning process?
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• It’s cohesive: Makes the organiza1on unite because it limits the reach of the debate, in respect of what we’re going to be and what we’re
going to do or not to do? • It’s cumula1ve: Will it supply consistency and accumulate with 1me?
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• Which exis1ng compe11ons should we employ?
• Which compe11on should we acquire? • Which new func1onali1es should launch?
• Which new groups of clients we should try to understand? • Which new distribu1on channels should we explode?
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• How do I establish the structure for innova1on, in a way that my innova1on ac1vi1es have direc1on and
congruence? • How can I get that all the levels buy and feel owners
of our innova1on architecture?
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Innova1on Accelera1on Transforming Organiza1onal Thinking
Part IV
OrganizaHonal InnovaHon (I-‐Teams)
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Innova1on Accelera1on Transforming Organiza1onal Thinking
Chapter 9 Team-‐Based Innova&on
© 2012 Pearson EducaHon, Inc. publishing as PrenHce Hall 9-‐3
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Teams are an important component to the success of corporate innovaHon and entrepreneurship. They are different from groups because they have a common purpose, complimentary skills, common goals, and joint accountability.
UHlized effecHvely, teams enhance performance, quality, efficiency, and innovaHon.
Introduc1on
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• The basic tenet of work teams is that jobs and organiza1ons should be designed around processes instead of func1ons and that the basic produc1on unit should be the team and not the individual. Fully mature work teams set their own work goals and perform all the tasks associated with the work process. Teams are formed for synergy; that is, to accomplish more than individuals can accomplish separately. The focus of teams is to improve quan1ty and/or quality of outputs.
•
Overview of Team Development
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• FuncHonality
Func%onal teams: Team members are from the same work unit.
Cross-‐func%onal teams: Cross-‐func1onal teams are comprised of members from different func1onal units or departments to work on mutual problems.
Levels of Work Team Implementa1on
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• Purpose Problem-‐solving teams: Team members are focused on specific issues to develop and implement solu1ons. Developmental teams: Team members concentrate on developing new products or systems.
Levels of Work Team Implementa1on
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• DuraHon
Project: The team is created for a specific purpose and is dissolved when the task has been completed. Once the objec1ve is completed they should disband to allow team members to focus on their regular tasks. Permanent: Permanent teams have a long-‐term focus in order to effec1vely handle major projects or issues.
Levels of Work Team Implementa1on
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• DiscreHon Semi-‐autonomous: The team has control over enforcing team norms but the manager s1ll has typical human resource authority for selec1on, performance assessment, and discipline. Autonomous: The team has full control over its opera1ons and leadership.
Levels of Work Team Implementa1on
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• Forming Stage • Storming Stage • Norming Stage • Performing Stage • Adjourning Stage
Stages of Team Forma1on
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Norming Stage
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• Management Commitment • Training and Development • InformaHon Resources • Reward Systems
Key Organiza1onal Elements of Work Teams
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• Personality – Myers Briggs Type Indicator (MBTI)
Extravert (E) or Introvert (I): Where you prefer to focus and where you get your energy.
Sensing (S) or Intui1ng (N): Type of preferred informa1on.
Thinking (T) or Feeling (F): How you prefer to make decisions.
Judging (P) or Perceiving (P): How you prefer to cope with the outside world.
Person-‐Team Fit: Personality & Interpersonal Skills
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• CommunicaHon Two major aspects of communica1on to focus on for development include self disclosure and recep1vity to feedback.
Person-‐Team Fit: Personality & Interpersonal Skills
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• Conflict ResoluHon Five types of conflict management styles.
• Forcing • Compromising • Avoiding • Accommoda%ng • Collabora%ng
Person-‐Team Fit: Personality & Interpersonal Skills
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• EffecHve management of conflict comes from the following steps… IdenHfying and understanding root causes of conflict;
Recognizing styles of conflict and working towards a collaboraHve resoluHon;
Exploring needs and differences amongst team members; and
Working toward construcHve resoluHon of the conflict.
Person-‐Team Fit: Personality & Interpersonal Skills
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Decision Making } Step 1: Iden%fying/Defining the Problem } Step 2: Solu%on Genera%on } Step 3: Ideas to Ac%on } Step 4: Implemen%ng the Decision } Step 5: Team Decision Making Evalua%on
Person-‐Team Fit: Personality & Interpersonal Skills
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• Resistance to Change • Lack of Proper Direc%on • Employee Security
Common Barriers to Implementa1on
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ImplemenHng EffecHve Teams: • Prepare the organiza%on for the change. • Make sure the appropriate team structure is selected to
address the problem at hand. • Be selec%ve when it comes to team leaders. • U%lize a process for crea%ve or lateral thinking. • Evaluate team effec%veness on a regular basis and seek
ways to con%nuously improve.
Conclusion
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Innova1on Accelera1on Transforming Organiza1onal Thinking
Part V
ImplementaHon of InnovaHon (I-‐Plans)
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Innova1on Accelera1on Transforming Organiza1onal Thinking
Chapter 10 Innova&on to Commercializa&on
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InnovaHons are not successful without commercial appeal. New products and services, no maTer how technologically advanced or sophisHcated, will not sell without having an authenHc connecHon with the customer.
Working with your knowledge of the customer, you will
prepare elements of your innovaHon that your stakeholders will be most curious about. You will then be able to craq the story you will tell others about your innovaHon.
Introduc1on
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Understanding the Real PotenHal Market • 1. Define the Research Purpose and Objec%ves • 2. Select Type of Data • 3. The Survey Process • 4. Construct the Ques%onnaire • 5. Analyze Results and Write Report
Market Research
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Tips for Survey Development
• Each ques1on should pertain to a specific objec1ve for the purpose of the study. • Keep each ques1on short and simple. • Avoid double-‐barreled items (eg. using “and,” “or,” and “but” with ques1ons). • Place simple ques1ons first and difficult-‐to-‐answer ques1ons later. • Avoid leading and biased ques1ons. • When possible, use scaled ques1ons rather than simple yes/no ques1ons to measure
intensity. • Make sure the ques1ons assess what you are trying to measure. • Keep the survey under two pages if possible. • Test face validity on a few people before administering the survey for real.
Market Research
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• Business model • Value
VALUE = PERCEIVED BENEFITS ÷ PERCEIVED COSTS
• Credibility • LegiHmacy • LocaHon • Business Level Strategy
Preparing for Commercializa1on
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Customer Mapping: • Step 1: Describe the product or service idea you have. • Step 2: What is the value proposiHon you are offering? • Step 3: Who is the target market for this idea? • Step 4: Provide a product concept combining the product
descripHon, value proposiHon, and target market. • Step 5: Put the product concept on an index card and place it in
the middle of a large sheet of paper. • Step 6: Answer the following quesHon as many Hmes as possible,
“Why would the target market be interested in this product or service?”
Marke1ng the Innova1on
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Customer Mapping: • Step 7: Place each answer on separate index cards and place above
the first card. Then draw lines up to each card from the original box.
• Step 8: Now ask why customers would be interested in the answers to Step 7 and place the new answers to the quesHons on index cards.
• Step 9: Now answer the following quesHon and place the responses on individual index cards, “What features would customers expect this service to have?” or “How could you provide this service to the customer?”
• Step 10: Now check the logic of your customer map by asking “If…will…?” quesHons.
Marke1ng the Innova1on
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• Once an innovaHon is developed and the markeHng strategy determined, the next major challenge is presenHng the idea to your key stakeholders.
• A compelling story will sustain the innovaHon as it passes different trials both inside and outside the company.
Selling Your Innova1on Story
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• The oral presentaHon—commonly known as an elevator pitch (because of the analogy of riding an elevator and having only two minutes to get your story told to another person in the elevator) provides the chance to sell the innovaHon to senior managers.
Selling Your Innova1on Story
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SuggesHons for PresentaHon • Focus on the pain for which your innova1on will be the solu1on.
Pinpoint the target of your solu1on. • Demonstrate the reachable market: the immediate reachable
group of customers that will be targeted. • Explain the business model. How does this innova1on make
money for the company? How does it fit within the company’s current financial strategies?
• Tout the I-‐team’s capacity for delivering and opera1onalizing the innova1on.
Selling Your Innova1on Story
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SuggesHons for PresentaHon • Explain your metrics. Rather than using generic assump1ons such
as the famous “1% rule” (when someone claims that the company will simply get 1% of a huge market with no research to back the claim up), highlight the metrics that were used to calculate the market size and the revenue projec1ons.
• Mo1vate the audience. The en1re purpose of a presenta1on is to move the audience to the next step: another mee1ng to discuss everything in detail.
• Why your company and why now?
Selling Your Innova1on Story
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What to Expect • InnovaHons bring much uncertainty with them. A large capital
investment on an untested innovaHon brings great risk. Senior managers may pressure the I-‐team to test their innovaHon as well as their meTle.
• Thus, the I-‐team must expect and prepare for a criHcal (and someHmes skepHcal) audience of execuHve decision makers.
Selling Your Innova1on Story
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• Remember that bringing innovaHons to market is more similar to a marathon than a sprint.
• The goal is not so much to succeed the first Hme as it is to succeed!
Conclusion
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Innova1on Accelera1on Transforming Organiza1onal Thinking
Part V
ImplementaHon of InnovaHon (I-‐Plans)
Aqer finishing Kuratko´s theory
Coming
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Innova1on Accelera1on Transforming Organiza1onal Thinking
Chapter 11 Effec&ve Innova&on Plans
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• Realis%c goals must be set. These goals must be specific, measurable, and set within a Hme frame.
• All involved managers, employees, and team members must be commiDed to the venture plan.
• Milestones must be set for conHnual and Hmely evaluaHon of progress.
• Obstacles should be an%cipated with flexible provisions for dealing with a bad turn of events.
• Alterna%ve strategies must be devised in the event of unforeseen pi{alls.
Introduc1on to Planning
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DefiniHon • The wriTen document that details the proposed innovaHon and its
commercial potenHal as a venture. It must describe current status, expected needs, and projected results of the new concept. Every aspect needs to be covered: the project, markeHng, research and development, manufacturing, management, criHcal risks, financing, and milestones or a Hmetable. All of these facets of the proposed venture are necessary to demonstrate a clear picture of what that venture is, where it is projected to go, and how the innovator proposes it will get there. The innovaHon plan is the roadmap for a successful enterprise.
The Innova1on Plan
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An EffecHve InnovaHon Plan will: • Describe every aspect of a par1cular innova1on; • Include a marke1ng plan; • Clarify and outline financial needs; • Iden1fy poten1al obstacles and alterna1ve solu1ons; • Establish milestones for con1nuous and 1mely evalua1on; and • Serve as a communica1on tool for all assessment purposes.
The Innova1on Plan
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• No RealisHc Goals • Failure to AnHcipate Issues • No Commitment or DedicaHon • Lack of Demonstrated Experience (Business or Technical)
• No Market Niche (Segment)
Planning Pixalls
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• The Hme, effort, research, and discipline needed to put together a formal innovaHon plan force the innovator to view the venture criHcally and objecHvely.
• The compeHHve, economic, and financial analyses included in the innovaHon plan subject the innovator to close scruHny of his or her assumpHons about the concept’s success.
• Since all aspects of the innovaHve concept as a viable venture must be addressed in the plan, the innovator and the I-‐Team develop and examine operaHng strategies and expected results for outside evaluators.
• The innovaHon plan quanHfies objecHves, providing measurable benchmarks for comparing forecasts with actual results.
• The completed innovaHon plan provides the innovator and I-‐Team with a communicaHon tool for the execuHve team to analyze as well as an operaHonal tool for guiding the new innovaHon toward success.
Benefits of Innova1on Plans
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• Execu%ve summary • Descrip%ons of the innova%on • Marke%ng • Opera%ons segment • Management • Cri%cal Risks • Financial Forecas%ng • Harvest Strategy • Milestone Schedule • Appendix
Components of an Innova1on Plan
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• Remember that an innovaHon plan gives investors their first impression of a company. Therefore, the plan should present a professional image.
• An aTracHve appearance, proper length, an execuHve summary, a table of contents, and professionalism in grammar, spelling, and typing are important factors in a comprehensive innovaHon plan. Believe it or not, when reviewed by outside funding sources, these characterisHc separate successful plans from failed ones.
• The wriTen plan should not exceed 30 pages (20-‐25 is ideal). The cover page
should be aTracHve, and it should contain the company name and address.
Preparing the Innova1on Plan
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Table 11-‐3: InnovaHon Plan Assessment • This assessment tool can help you and your I-‐Team self-‐evaluate the innova1on plan
before it is submiNed to senior execu1ves. The brief descrip1on of each component will help you write that sec1on of your plan. AWer comple1ng your plan, use the scale provided to assess each component.
5 = Outstanding – thorough and complete in all areas 4 = Very Good – most areas covered but could use more detail 3 = Good – some areas covered in detail but other areas missing 2 = Fair – a few areas covered but very liTle detail 1 = Poor – no wriTen parts
A Complete Assessment of the Components
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AcHon Planning Process
• Choosing the team. • Naming and describing the specific goal to be accomplished.
• Describing the current reality that forms the environment for the project.
• Discerning the key acHons that need to be performed. • CreaHng a calendar of acHons and assignments for team members.
Organizing an Ac1on Plan
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AcHon Planning Process
• Achieving Success You now have an AcHon Plan that can be used as a tool for achieving the success you desire. You must now put this plan in moHon. Everyone has assignments and deadlines. Your job is to build and maintain momentum for your plan. You must:
• Keep everyone informed and moHvated; • Use milestones with specific dates; • Update the plan when needed, and; • Acknowledge successes, even small ones.
Conclusion
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Innova1on Accelera1on Transforming Organiza1onal Thinking
Part V
ImplementaHon of InnovaHon (I-‐Plans)
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Innova1on Accelera1on Transforming Organiza1onal Thinking
Chapter 12 Accelera&ng Momentum: The “I-‐Solu&on”
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} A final challenge confronHng senior level managers is how to sustain any innovaHve momentum that is developed. More importantly they need to accelerate that momentum so the innovaHve pace conHnues.
} There are two major aspects of this challenge: the role of managers and the role of the organizaHon.
Sustaining the Innova1on Strategy
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The Role of Managers • Frame the Challenge • Absorb the Uncertainty • Define Gravity • Clear the Obstacles • Keep a Finger on the Pulse of the Project
Sustaining the Innova1on Strategy
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The Role of the Firm: Reengineering Organiza%onal Thinking • The “hardware” side of organizaHons (strategy, structure, systems,
and procedures) is the contextual framework within which individuals take their behavioral cues. The “soqware” side of organizaHons (culture and climate), while more subtle and informal, is the locus for the acceptance or rejecHon of true entrepreneurial acHvity.
Sustaining the Innova1on Strategy
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➤ Set explicit innova%on goals. ➤ Create a system of feedback and posi%ve reinforcement. ➤ Emphasize individual responsibility. ➤ Provide rewards for innovaHve ideas. ➤ Do not punish failures.
Sustaining the Innova1on Strategy
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Ask the Key QuesHons • Does your company encourage innova&ve thinking?
• Does your company provide ways for innovators to stay with their ideas?
• Are people in your company permiZed to do the job in their own way, or are they constantly stopping to explain their ac&ons and ask for permission?
Sustaining the Innova1on Strategy
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Ask the Key QuesHons • Has your company evolved quick and informal ways to access the resources to try new ideas?
• Has your company developed ways to manage many small and experimental innova&ons?
• Is your system set up to encourage risk taking and to tolerate mistakes?
Sustaining the Innova1on Strategy
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Ask the Key QuesHons • Are people in your company more concerned with new ideas or with defending their turf?
• How easy is it to form func&onally complete, autonomous teams in your corporate environment?
Sustaining the Innova1on Strategy
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Final Thoughts • The words used to describe the new innovaHon regime of the 21st Century are: Dream, Create, Explore, Invent, Pioneer, and Imagine!
• It is a Hme requiring innovaHve vision, courage, calculated risk-‐taking, and strong leadership.
• It is simply “the innova%ve impera%ve of the 21st Century.”
Conclusion
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