five principles for building innovation capabilities in established companies
Post on 03-Mar-2017
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Five Principles for Building Innovation Capabilities In Established Companies
Tendayi VikiPrincipal Consultant
The basic problem confronting an organization is to engage in sufficient
exploitation to ensure its current viability and, at the same time, devote
enough energy to exploration to ensure its future viability...
James G. MarchStanford Professor
Author – Explorations in Organizations
It is important for large companies to learn how innovation really works and avoid engaging in
innovation theatre.
Principle 1 - Innovation Thesis
Innovation can not happen in a vacuum. Teams need to have strategic guidance.
We invest in large networks of engaged users,
differentiated by user experience, and defensible through network effects.
Fred WilsonVenture Capitalist
Union Square Ventures
This strategy is not rigid but emergent. It is a combination of leadership vision and market learnings.
Principle 2 - Innovation Portfolio
Every company should have a balanced portfolio of products, services and business models.
Principle 3 - Innovation Framework
Company must develop innovation frameworks to guide teams as they do their work.
The Waterfall
These frameworks must NOT be waterfall.
Frameworks must be iterative and allow teams to learn from the market
before they go to scale.
Principle 4 - Innovation Accounting
Innovation cannot be managed using traditional accounting methods.
Reporting KPIs● Connected to innovation practice:
○ The focus is on product teams, the ideas they are generating, the experiments they are
running and the progress they are making from ideation to scale.
Governance KPIs● Connected to innovation management:
○ The focus here is on helping the company make informed investment decisions on a particular project based on evidence and innovation stage.
Global KPIs● Connected to innovation strategy:
○ The focus here is on helping the company examine the overall performance of their investments in innovation in the context of the larger business.
Ideas are easy to spread, [but] practices are very hard to spread with fidelity, especially when they are not supported by good tools.
Jim Shelton Head of the Education Division
Chan Zuckerberg Initiative
Iterating is a method of systematically searching for
customer value and a sustainable business model.
Capture Idea
Identify Assumptions
Prioritize Assumptions
Brainstorm Tests
Falsifiable Hypotheses
Get Out Of The Building
Capture Learnings
Make Decisions
Thank You
http://thecorporatestartupbook.com/
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