als12_rene domingo_managing pitfalls of innovation_july 27,2011_new world hotel
DESCRIPTION
Pitfalls in managing innovationTRANSCRIPT
Peter
Paul
Applying Innovation
• Product design
• Service design
• Process design
• Policy design• Policy design
• Organizational design
• Strategy Design
• Business Model
Failure to unlearn(Trying to be smarter than a fifth grader)
1/10
(Trying to be smarter than a fifth grader)
A little knowledge is a dangerousthing, so is a lot.” –Albert Einsteinthing, so is a lot.” –Albert Einstein
Michelangelo when asked how he created the sculpture David:
“David was always there in the rock. I justremoved away the bits that weren’t David.”removed away the bits that weren’t David.”
I applaud the graduates today for taking amuch more direct route to your degrees.For my part, I’m just happy that theCrimson has called me “Harvard’s mostsuccessful dropout.” I guess that makes mevaledictorian of my own special class … Idid the best of everyone who failed.
“HARVARD’S MOST SUCCESSFUL DROPOUT”
But I also want to be recognized as the guywho got Steve Ballmer to drop out ofbusiness school. I’m a bad influence. That’swhy I was invited to speak at yourgraduation. If I had spoken at yourorientation, fewer of you might be heretoday.
Celebrate absurditiesCelebrate absurdities
BenchmarkingBenchmarking
Failure to collaborate(Do-it-all, I-know-everything mindset)
2/10
(Do-it-all, I-know-everything mindset)
“If I have seen further it is by standing on theshoulders of giants.” – Isaac Newtonshoulders of giants.” – Isaac Newton
Listening too much to customers(VOC obsessed)
3/10
(VOC obsessed)
“Satisfied customers are not loyal customers.”
Overuse of consensus
4/10
“If everyone is thinking alike, then noone is thinking” - Benjamin Franklinone is thinking” - Benjamin Franklin
Failure to have fun
5/10
Failure to have fun
Not knowing when to stop“Creeping elegance”
6/10
“Creeping elegance”
“It will be finished when it’s finished.”
Michelangelo responding to a follow up call by a royal client.
“The boss is always right” culture
7/10
Failure to create a crisis
8/10
Failure to create a crisis
Typical excuses not to innovate
• We are busy with our work.
• We have to catch up with our sales volume.
• We can meet our goals with our current products.
• I don’t have anyone to spare for that project.• I don’t have anyone to spare for that project.
• That’s not the priority of our boss.
• (Silently) “I won’t get promoted for doing that.”
Disruptive Technology
Innovation as a KPIInnovation as a KPI
Treating innovation as typicalinvestment and work
9/10
investment and work
PAYBACKIRR
NPV ROI
ATTENDANCEINCENTIVESCHEMES
INNOVATIONNPV ROI
BreakevenAnalysis PUNCTUALITY
PERFORMANCEAPPRAISAL
Celebrate failuresCelebrate failures
IBM founder Thomas J. Watson Sr.,
"Fire you? Why would I do that? I've just spent $10 millioneducating you. Now let's talk about your next project.”
"I did not fail 1000 times, I discovered 1000 wayshow not to make a lightbulb.“ - Edison
Failure of Imagination
10/10
Failure of Imagination
“Once you eliminate the impossible, whateverremains, no matter how improbable, must be
the truth.” – Sherlock Holmesthe truth.” – Sherlock Holmes
Pitfalls in Managing Innovation
1. Failure to unlearn
2. Failure to collaborate
3. Listening too much to customers
4. Overuse of consensus
5. Failure to have fun5. Failure to have fun
6. Not knowing when to stop
7. “The boss in always right” culture
8. Failure to create a crisis
9. Treating innovation as typical investment and work
10.Failure of imagination
“Stay hungry, stay foolish”- Steve Jobs
Stanford U. Commencement AddressJune 12, 2005
