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Are your innova,ons big enough?
1. Self-‐Assess your ecosystem
2. How to balance BAU and Innova,on
3. Determining spend on innova,on
4. Ecosystems, partnerships and risks/rewards
Agenda
1. Self-‐Assess your ecosystem
This video propelled DropBox onto a trajectory that saw them acquire a huge heap of funding, 50 million customers and a 4 billion dollar valuation. They even had Steve Jobs knocking on their door looking to acquire their company.
Great stories are key
https://www.youtube.com/watch?v=w4eTR7tci6A
2. How to balance BAU and innova,on
Economies of scale resulted in func,onal centralisa,on – opera3ons, sales and finance
Silos that sustain products and geographic markets alignment
Matrix management is complex and difficult to co-‐ordinate
Now networked or virtual groups are emerging
Compe,,on and economic forces drive the need for new models
The challenge is about alignment of knowledge workers and IP rather than physical and financial assets
Globalisa,on has changed and challenged the environment
Therefore need to unlock value through innova3on
Restructuring is expensive and creates organisa3onal problems oBen as bad as the problem being solved
A system for innova3on is a set of tools to align and control an organisa,on’s behaviours and outcomes
Essen3al is an alignment of strategy and structure and a framework that measures the scores
Strategy map defines and communicates the purpose and impact and the scores are the table of results
Individuals are empowered to deliver accre3on of value to stakeholders – asset test / what value
Measure success under 4/5 headers – customers, financial, process, learning and growth
Investment required is measured under 10X principles
Innova,on is not separate but an integral part of BAU Measures
3. Determining spend on innova,on
Is spending on R&D the same as inves,ng in innova,on?
Top R&D Publicly traded 2014
Spending on R&D is not equivalent to inves,ng in innova,on. For sure, this is lab spending and out of labs come innova3ons – but R&D spending has mul3ple drivers.
Big R&D spenders are oVen spending money on historic programmes , following historical paJerns and defending/extending historical business.
By contrast -‐ Innovators don’t necessarily focus on what they spend, but rather where they spend it.
The companies most known for innova3on don’t keep spending money year aBer year on their old business.
They spend money puLng the pieces together in new, unique ways. They try to find new solu,ons to old problems.
What does your “strategic pack” look like:
• Strategic health check assessment (as is) • Assets / Financials / Products / People • Business Strategy and Plan (where you want to go)
4. Ecosystems, partnerships and risks/rewards
Is it Real?
Can we win?
Is it worth doing?
George Day is the Geoffrey T. Boisi Professor at the Wharton School, a co-‐director of the Mack Ins3tute for Innova3on Management, and a former execu3ve director of the Marke3ng Science Ins3tute.
Thank You! Contact us: [email protected] [email protected]
