building an innovative enterprise

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Building an Innovative Building an Innovative Enterprise Enterprise The Key to Creating New Resources and Wealth Paul Schumann Glocal Vantage Inc.

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Building an innovative enterprise can be your most significant accomplishment for it can live beyond the your tenure or even your life. Innovation is the way of transforming the resources of an enterprise through the creativity of people into new resources and wealth. Innovation also reduces costs and increases profitability. But innovation is risky. Most innovations fail resulting in increased costs. On the other hand, to stay competitive you must innovate. To reduce risks you must target your innovations to meet customer needs and you must assure that your business is optimized to implement the innovation required by your customers. Innovation is the lifeblood of a enterprise. It courses through a vital enterprise spawning new markets, enlarging existing markets, increasing market share or swelling profits. Innovation flows from a strategy that balances the opportunities and threats in a market, the desires of stakeholders, the capability and capacity of the enterprise for innovation. Values derived from the market drive the development of the enterprise's resources, focus the organizational culture of the enterprise and align the enterprise's five innovation enablers inspiring people to be effective and efficient. Innovation is not static. The need for innovation is a moving target that must be forecast as far into the future as it will take the enterprise to respond. Your foresight has to be greater than your ability to innovate.

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Page 1: Building An Innovative Enterprise

Building an Innovative EnterpriseBuilding an Innovative Enterprise

The Key to Creating New Resources and Wealth

Paul Schumann

Glocal Vantage Inc.

Page 2: Building An Innovative Enterprise

Glocal Vantage Inc. 2

Topics

• Introduction

• Innovation

• Enterprise Innovation

• Organizational Development

• Innovation Commons

• Getting Started

Page 3: Building An Innovative Enterprise

Glocal Vantage Inc. 3

Topics

• Introduction

• Innovation

• Enterprise Innovation

• Organizational Development

• Innovation Commons

• Getting Started

Page 4: Building An Innovative Enterprise

Glocal Vantage Inc. 4

Topics

• Introduction

• Innovation

• Enterprise Innovation

• Organizational Development

• Innovation Commons

• Getting Started

Page 5: Building An Innovative Enterprise

Glocal Vantage Inc. 5

Innovation Definition

Innovation is the way of transforming the resources of

an enterprise through the creativity of people into new

resources and wealth.

Page 6: Building An Innovative Enterprise

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Innovation Definition

Innovation is the way of transforming the resources of

an enterprise through the creativity of people into new

resources and wealth.

E=MCE=MC22

Page 7: Building An Innovative Enterprise

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Innovation Definition

Innovation is the way of transforming the resources of

an enterprise through the creativity of people into new

resources and wealth.

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Page 8: Building An Innovative Enterprise

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Results of Innovating

• Create new markets

• Expand existing markets

• Increase market share

• Open existing markets

• Increase profits

• Reduce costs

• Attract & retain the best

Failure

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Why Do Innovations Fail?

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Why Do Innovations Fail?

• Not anticipating customer needs

• Failure to understand and utilize technology appropriately

• Lack of understanding of competitor strategy and capability

• Misjudging implementation difficulty

• Ineffective implementation

• Timing - too early or too late in the market

• Being stakeholder driven instead of market driven

• Not having the resources for implementation

• Being driven by personal agendas

• Un-supportive organizational culture, or culture driven strategies

• Attempting to cause change rather than exploiting change

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Types of Innovation

• Class - how big a change

• Nature - where

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Class of Innovation

• Incremental

• Distinctive

• Breakthrough

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The S-curve & Innovation

Incremental Time

Pro

duct

ivity

Incremental

Incremental

Incremental

Distinctive

Distinctive

Breakthrough

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Nature of Innovation

• Product

• Process

• Procedure

Page 15: Building An Innovative Enterprise

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Innovation Map

• Class– Incremental– Distinctive– Breakthrough

• Nature– Product– Process– Procedure

Product

Process

Procedure

Incr

emen

tal

Distin

ctiv

e

Break

thro

ugh

Page 16: Building An Innovative Enterprise

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Automotive History

• Experimenters & Hobbyists (1820s - 1900s)

• Search & Learn (1900s - 1908)• A Car for Everyone (1908 - 1927)• Living Room on Wheels (1920s -

1950s)• Synthesizing Market Demands (1950s -

1980s)• Life Style on Wheels (1980s - 2000s)

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Experimenters & Hobbyists

Incremental

Distinctive

Breakthrough

Product

Process

Procedure

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Search & Learn

Incremental

Distinctive

Breakthrough

Product

Process

Procedure

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A Car for Everyone

Incremental

Distinctive

Breakthrough

Product

Process

Procedure

Page 20: Building An Innovative Enterprise

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Living Room on Wheels

Incremental

Distinctive

Breakthrough

Product

Process

Procedure

Page 21: Building An Innovative Enterprise

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Synthesizing Market Demands

Incremental

Distinctive

Breakthrough

Product

Process

Procedure

Page 22: Building An Innovative Enterprise

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Life Style on Wheels

Incremental

Distinctive

Breakthrough

Product

Process

Procedure

Page 23: Building An Innovative Enterprise

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Exercise 1

• Use the innovation map to brainstorm potential innovations for your organization.

• Work together in a team if there are more than one from the same organization.

• Place each suggested idea in its appropriate box.

• Have at least one entry in each of the nine boxes.

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Topics

• Introduction

• Innovation

• Enterprise Innovation

• Organizational Development

• Innovation Commons

• Getting Started

Page 25: Building An Innovative Enterprise

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Goals for an Innovative Enterprise

• Increase success rate of innovation

• Create wealth

• Achieve regeneration

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Regenerative Innovative Enterprise

Resources Wealth

New Resources

Creativity

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Innovation Creates Wealth

Stage 1Stage 1Stage 2Stage 2

Stage 3Stage 3

Non-productiveNon-productive

Counter Counter

productiveproductive

Hyper-Hyper-

productiveproductive

75 75 yearsyears

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System for an Innovative Enterprise

Market

Strategy

OrganizationStakeholders

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Market

Customers

TechnologyCompetition

Demographic

Sociopolitical

Scientific

Economic

EmbeddedSupportiveEnabling

PresentPotentialPossible

DirectIndirect

Structural

Page 30: Building An Innovative Enterprise

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Stakeholders

• Stockholders/Owners

• Creditors

• Employees

• Vendors/Suppliers

• Customers

• Society

Page 31: Building An Innovative Enterprise

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Strategy

• Vision

• Mission

• Goals

• Strategies

• Plans

Page 32: Building An Innovative Enterprise

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Topics

• Introduction

• Innovation

• Enterprise Innovation

• Organizational Development

• Innovation Commons

• Getting Started

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Organization

CultureCulture

ResourcesResources

ProjectsProjects

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Resources

PeoplePeople

CapitalCapital

ToolsToolsPartnersPartners

NaturalNatural

KnowledgeKnowledge

FacilitiesFacilities

Page 35: Building An Innovative Enterprise

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People

• Creativity

• Personality

• Information

• Skills

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Exercise 2

• For each of the resources, identify at least one thing that you could do to utilize or change that resource to improve innovation in your organization.

• Work together in groups if more than one from your organization.

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Organizational Culture

Beliefs

Values

Behaviors

Results

Consequences

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Innovation Values (Vitality)

• Self development• Communication• Awareness• Multiple skills• Teamwork

• Vision• Leadership• Creativity• Innovativeness• Knowledge

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Innovation Values (Quality)

• Achievement• Effectiveness• Appropriate

technology• Service• Productivity

• Efficiency• Control• Pioneering progress• Community• Self actualization

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Service

Community

Productivity

Self Development

Achievement

Multiple Skills

Teamwork

Values Example

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Organizational Scenario Example

This organization is driven by the desire to meet goals and expectation established within the company but outside of the organization. At the same time, the members feel the need to protect their own futures through self improvement. This tension provides the energy to accomplish the results desired by the organization. The members of this organization are motivated to make a contribution through their work. In order to do so, they think that they require a broad perspective and several expert skills. The members of this organization require a strong sense of community. They want to build community through teamwork and the shared desired to make a significant contribution through their work.

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Innovation Map

PRODUCTPROCESS

PROCEDURE

INCREMENTAL

DISTINCTIVE

BREAKTHROUGH

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

20.00

Percent of Effort

Nature of Innovation

Class of Innovation

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Exercise 3

• Check the three most important vitality values and the four most important quality values in your organization now.

• Repeat this for what you think that they should be in five years.

• Are there any differences?

• What do the differences mean to you?

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Innovation Enablers

EducationEducation CommunicationCommunication

InfrastructureInfrastructure IncentivesIncentives

MeasurementsMeasurements

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Exercise 4

• How can you increase innovation in your organization?

• For each of the enablers, list 1 to 3 things that you could do in your organization that would increase the amount of innovation.

Page 46: Building An Innovative Enterprise

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Topics

• Introduction

• Innovation

• Enterprise Innovation

• Organizational Development

• Innovation Commons

• Getting Started

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Innovation Commons

A space (physical or virtual) that enables

innovation through the mutual and

interdependent creativity of its

members

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Innovation Commons (cont.)

• Open system (bounded)• Everyone contributes• Everyone can use the results• Members who don’t contribute

are shunned or excluded• Fluid & flexible• An abundant resource system

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Innovation Commons Boundaries

Competitors

Company

Partners

Vendors/Suppliers

Customers

Stakeholders

Project

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Open Source Principles

• Transparency• Vetting of participants only after

they’ve gotten involved• Low cost and ease of engagement• A legal structure and enforcement

mechanism• Leadership

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Open Source Principles (cont.)

• Common standards• Peer review and feedback loops• A shared conception of goals• Incrementalist - small players

can make useful contributions• Powerful non-monetary

incentives

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Topics

• Introduction

• Innovation

• Enterprise Innovation

• Organizational Development

• Innovation Commons

• Getting Started

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How to Build an Innovative Enterprise

UnderstandUnderstand

AsseAssessss

ForecastForecast

InterpretInterpret

CreateCreate

PlanPlan

MeasureMeasure

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Principles of an Innovative Enterprise

• Ennoble

• Enable

• Empower

• Encourage

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Regenerative Innovative Enterprise

Resources Wealth

New Resources

Creativity

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Glocal Vantage, Inc.

• PO Box 161475

• Austin, TX 78716

• (512) 632-6586

[email protected]

• www.glocalvantage.com

• http://incollaboration.com

• Twitter: innovant2003

Page 57: Building An Innovative Enterprise

Paul Schumann

• Futurist and innovation consultant

• Application of web 2.0 to market & strategic intelligence systems

• Web 2.0 tools & technologies

• Application of web 2.0 to democratic processes

• Broad perspectives on the future

• Services– Strategic market research & technology forecasting

– Intelligence systems consulting

– Seminars, webinars & presentations

Glocal Vantage, Inc. 57

Page 58: Building An Innovative Enterprise

•This work is licensed under the This work is licensed under the Creative Commons Attribution Creative Commons Attribution

license. You may distribute, license. You may distribute, remix, tweak, and build upon this remix, tweak, and build upon this work, even commercially, as long work, even commercially, as long as you credit me for the original as you credit me for the original

creation as Paul Schumann, creation as Paul Schumann, Glocal Vantage Inc, Glocal Vantage Inc,

www.glocalvantage.com.www.glocalvantage.com.