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Transcript of 3, Building the innovative organization.pptx
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MOIContext
Building the innovative organization
Prof. V.Seshadri
SVKMs NMIMS
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Components of an innovative
organization
1. Shared Vision, leadership, will to innovate
2. Appropriate structure
3. Key Individuals4. Effective team working
5. High Involvement innovation
6. Creative climate7. External focus
MOI -Prof.V.Seshadri Ch 3 : Ref 1 2
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Components of the
Innovative organization ( 1 of 3)
1. Shared vision, leadership and the will to innovate: Clearly articulated, shared sense of purpose,stretching strategic intent; Top managementcommitment
2. Appropriate structure: Org design which enablescreativity; balance between organic andmechanistic.
3. Key individuals: High caliber inventors,Promoters, Champions, gatekeepers.
4. Effective team working: Appropriate use of teamsto solve problems
Prof.V.Seshadri MOI - Ref 1 Ch 11 3
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Components of the
Innovative organization ( 2 of 3)
5. Continuing and stretching individualdevelopment:Long term commitment toeducation and training
6. Extensive and appropriate communication:Within org. ( upwards, downwards and laterally),Between org. and Outside org.
7. High involvement in innovation: enthusiastic andcontinuous participation and support of senior
management.8. External focus: Extensive networking, Customer
focus
Prof.V.Seshadri MOI - Ref 1 Ch 11 4
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Components of the
Innovative organization ( 3 of 3)
9. Creative environment: Positive approach to
ideas, supported by relevant motivation
systems.
10. Learning organization: Fostering proactive
experimentation; sharing of experiences;
University linkages; knowledge capture,
documentation and dissemination.
Prof.V.Seshadri MOI - Ref 1 Ch 11 5
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Organizational types
Researchers Tom Burns & George Stalker(1950s) outlined the characteristics of Organicand Mechanistic organizations.
These are environments, the former suited forrapid change while the latter suited for stableconditions.
These are two poles on an ideal spectrum andthey provide some idea of organizationalstructures suited for effective innovation
Prof.V.Seshadri MOI - Ref 1 Ch 11 6
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Innovative organization
It is not correct to assume that innovation
occurs only in R&D, where an organic
structure often exists.
Increasingly, innovation is becoming a
corporate-wide task. So, the entire
organization needs to be re-structured
towards more organic models. However, it isnot advisable to take extreme positions.
Prof.V.Seshadri MOI - Ref 1 Ch 11 7
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Mintzbergsstructural archetypes
Simple structure: Centralized organic type (SME)
Machine bureaucracy: Centralized mechanistic type (McDonalds, Ford, TESCO)
Divisionalized form: Decentralized organic form.(L&T.Tata Motors)
Professional bureaucracy: Decentralized mechanisticform ( Formal R&D, IT, engineering groups)
Adhocracy: Project type organization (NASA) Mission-oriented( Charity organization like Dignity
Foundation)
Prof.V.Seshadri MOI - Ref 1 Ch 11 8
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2009 John Wiley & Sons Ltd.
www.wileyeurope.com/college/tidd
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2009 John Wiley & Sons Ltd.
www.wileyeurope.com/college/tidd
10
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2009 John Wiley & Sons Ltd.
www.wileyeurope.com/college/tidd
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2009 John Wiley & Sons Ltd.
www.wileyeurope.com/college/tidd
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Key Individuals
Key individuals (or sometimes a group) often
champion the cause of the innovation and can
provide some energy and valuable support
when roadblocks are encountered.
Example: James Dyson pioneered the double
cone vacuum cleaner which revolutionized the
industry. Hoover, Philips and Electrolux
Prof.V.Seshadri MOI - Ref 1 Ch 11 13
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Figure 11.1 The five-stage high-involvement innovation
model
2005 Joe Tidd, John Bessant and Keith Pavitt
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Table 11.4 Stages in the evolution of HII capability
2005 Joe Tidd, John Bessant and Keith Pavitt
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High Involvement in Innovation (HII)
Creative skills and Problem solving abilities are
processed by each & every employee.
Although each employee may be able develop
limited, incremental innovations, the sum ofthese have far reaching effects
e.g. The Japanese quality revolution
A study of British companies which have won theInvestor-in-people (IiP) award as against an
average company shows glaring differences.
MOI -Prof.V.Seshadri Ch 3 : Ref 1 16
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2009 John Wiley & Sons Ltd.
www.wileyeurope.com/college/tidd
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Effective Team Working
High level of team working and High
Involvement Innovation practices are vital for
delivering to customers what they want, when
they want and how they want. This is theessence of Mass customisation.
Apart from better working, teams result in
better fluency of idea generation and inflexibility of solutions developed.
Prof.V.Seshadri MOI - Ref 1 Ch 11 18
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Key Elements in high performance
team working
1. Clearly defined tasks and objectives
2. Effective team leadership
3. Good balance of team roles and match toindividual behavioral style
4. Effective conflict resolution mechanism
within group
5. Continuing liaison with external organization.
Prof.V.Seshadri MOI - Ref 1 Ch 11 19
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Creativity and Innovation
Microsoft's only factory asset is the human
imagination
- Bill Gates
Chance favors the prepared mind
- Louis Pasteur
Prof.V.Seshadri MOI - Ref 1 Ch 11 20
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Creativity and Innovation
Creativity is an attribute which everyone
possesses
But their preferred style of expressing it varies
widely
Prof.V.Seshadri MOI - Ref 1 Ch 11 21
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Creativity
Creativity in an organization gets stifled if:
1. Dominance of dominant vertical relationships
2. Poor lateral communication3. Limited tools and resources
4. Top-down dictates
5. Formal, restricted vehicles for change6. Reinforcing a culture of inferiority.
Prof.V.Seshadri MOI - Ref 1 Ch 11 22
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Organizational Culture
Organizational structures are visible artifacts ofinnovative culture
Culture is a complex concept, but it basically equates tothe pattern of shared values.
Culture can be understood in terms of three linked levels.The deepest is what every individual believes about the
world.
These shape individual behaviors and these in turn decide
the way a group behavesFinally these behaviors creates a set of artifacts
(structures, processes, symbols) which reinforce thepattern
Prof.V.Seshadri MOI - Ref 1 Ch 11 23
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Tools for sustaining a single-loop learning
approach to steady-state innovation.
training and development of staff;
development of a formal learning process basedon a problem-solving cycle;
monitoring and measurement; documentation;
experiment;
display;
challenge existing practices; use of different perspectives;
reflection learning from the past.
MOI -Prof.V.Seshadri Ch 3 : Ref 1 24
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Invention Factories Most large manufacturers generate and develop
innovative ideas through formal research anddevelopment units.
They are tailored to focus on inventions. The tasks arequite clear. A strategic plan is made for the inventions
they intend to work on, resources are allocated forthese and the resources and infrastructurerequirements are arranged. The facilities are usuallyhoused in a permanent building which is designed to beflexible to accommodate the people and the labs.
Inventions are churned out of these labs which arededicated for this purpose. similar to a factory.
These are euphemistically called Invention factories.
Prof.V.Seshadri MOI - Ref 3 Ch 2 25
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Skunkworks
A formal R&D is not the only structure forcreating innovative ideas. Some companies havegenerated ideas by temporarily bringing together
talented people with different perspectives withthe sole purpose of solving a particular problemor develop a unique concept/product.
Mostly these teams are sited in remote settings
to keep members focused or to maintain secrecy. The term skunkworksis often applied for these
focused project teams.
Prof.V.Seshadri MOI - Ref 1 Ch 11 26
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Skunkworks
Companies that have well established technology
are often faced with a difficult choice to counter a
potential threat from a new technology:
1. Abandon the present business in favor of therival technology
2. Hold onto the present and make it better.
3. Hold onto the present and begin investing in thenew technology as a hedge against the future.
Prof.V.Seshadri MOI - Ref 1 Ch 11 27
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Skunkworkscontd.
The third choice is usually logical:
a) The company may not have the requiredcompetency
b) The culture of the organization may notwelcome the new technology
c) Existing customers may pressure the company tostay in the old business.
The best solution to all these problems is todevelop the technology in a separate subsidiaryor operating unit. A skunkwork is ideal in thiscontext.
Prof.V.Seshadri MOI - Ref 1 Ch 11 28
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Skunkworkscontd.
The company sets up an autonomousorganization charged with building a new andindependent business around the disruptive
technology. Such set-ups, free of the power and influence
of the mainstream companys customers, canalign themselves with a different set ofcustomersthose who want the product ofthe disruptive technology.
Prof.V.Seshadri MOI - Ref 3 Ch 2 29