building innovation capabilities: insights on leadership and culture

Honing innovation capabilities: Leadership

and Culture

Pavan SoniInnovation Evangelist and

Researcher [email protected]

www.pavansoni.com

What are capabilities?

Repeatability | Reliability | Embedded | Purposeful | Coordinated

How capabilities come into being

05/01/2023 Pavan Soni, Innovation Evangelist 3

Products Services Processes Customers …

Processes People Culture

Leadership Founder/ Entrepreneur

Business Model Institutions

Formal | Informal

Environment Munificence | Dynamism | Complexity

Creating a stretch “Developing capital-intensive premium products through disruptively innovative process engineering that could deliver affordable pricing and make a difference to global healthcare.”

- Kiran Mazumdar-Shaw, Founder and CMD, Biocon Ltd.

1978- Enzymes (solid substrate fermentation)

1996- Statins using

fermentation

2007- Enters Biosimilars

Exits enzymes biz.

2003- Insulin (Pichia expression system)

2004- INSUGEN®(rh-insulin)2006- BIOMAb-EGFR™(Nimotuzumab), India’s first anti-cancer drug 2009- BASALOG®(Glargine) 2013- ALZUMAb™(Itolizumab), a 'first in class' anti-CD6 monoclonal antibody2014- CANMAb™ (Trastuzumab)


2006- Launches Biocon

Biopharmaceuticals

2009- Tie-up with Mylan for

Biosimilars

World-leading research on Oral Insulin

Leadership

Sensing and shaping opportunities


“To be a discovery-led global pharmaceutical company.”

- Anji K Reddy, Founder, Dr. Reddy’s Lab

1984- DRL develops APIs (Methyldopa)

1980-84- Uniloids, Standard Organics

1986- Formulations, Enters US market

1991- First to enter Russia and Soviet block

1993- First to set-up discovery research

1996- Forms biotechnology division

1997- First to co-license to Novo Nordisk

2001- Enters US generics

2008- Sets up Speciality Pharma/ Complex

Generics

Discovery- centricity

Patient- centricityCost- centricity

Leadership

State of perpetual crisis


“We want to beat Sony by 2005!”- Eric Kim, Head of Marketing, Samsung (2001)

“Change everything, except your wife and kids.”- Lee Kun-hee, Chairman, Samsung

Public burning of over 100,000 cordless phones at Samsung Gumi factory on March 9, 1995

Paradoxes that drive Samsung: Size and speed Diversified but specialized Japanese and American management styles combined

Innovation through Bold investments Being the fast

follower Co-opetition Owner-led

transformation

Leadership

Setting impossible goals


Leadership

“Now it is time to build a car that is better than the best in the world.”- Eiji Toyoda, 1983

The birth of Lexus LS400

Impossible challenges Top speed of 155 mph Fuel efficiency of over 22.5 mpg A drag of .29 Noise level of 58 dB at 60 mph A curb weight of 3800 pounds

Not to match, but to beat Mercedes and BMW!

The outcome 5 decibels quieter 120 pounds lighter 17 miles per hour faster 4 more miles per gallon $30,000 less than BMW 735i

6 years, 1400 designers, 3700 engineers, 900 engine prototypes, 450 test models

As a leader


Leadership

Creating a stretch Setting impossible goals Maintaining a state of

perpetual crisis Sensing and shaping

opportunities

Variation and selection


Great Ideas are born at the Intersection of Disciplines- Frans Johansson

Discovering Intersections

Operating Engineer Model (1994) Diploma holders 25% built-in attrition 80+% of shop floor- 50+ plants Systemic innovation

Leadership embraces failure Operational autonomy Non pharma scientists in IPDOSelf Managed Teams (2001)

Culture

Operational autonomy and financial accountability


Culture

“We believe that any significant growth requires investment, and, very often, the growth that we see is linked to the level of investment that we make. A challenge, though a tough one, is to manage the conflict of investing in building the future without diluting the current results.”

- Azim H Premji, Chairman of Wipro Ltd.

Stage Gate Model of R&D funding (2001)

Quantum Innovations (2006)

Technology Themes (2008)

Centers of Excellence (1996)

Practice Framework (2002)

Point Solutions (2003)

Let a million flowers blossom

Innovation as a ‘culture’


“The year 2010-11 was ‘testing the waters.' 2012 and 2013 were about accelerating the journey; and 2014 and 2015 are about embedding the journey in the roots of every Group.”- MS Shankar, Sr. Director of Technology and Innovation, ANAND Group

“We declared that any improvement which is beyond 30% is innovation. With such broad definitions, we found that immediately people caught on to that, and we started seeing innovations in almost all spheres of the company- inventory reduction, account receivables, productivity, maintenance, quality, etc. We have moved from operations, to products, and now getting into materials.” - Sunil Kaul, MD of MAHLE Behr India

Dedicated Sr. Director level anchor Focus on culture, and not outcome Defining 30% as conversion ratio Shadow team with Erehwon- i5 and i7 Sponsorship from CEOs of Group

Companies

Rollout based on success stories, instead of a big bang approach

Innovation anchors in each group company ‘Live Concourse’ to share outcomes and

felicitate innovators Clearly defined ‘Rewards & Recognition’

policies

Culture

Enabling improvisation


Culture

On the culture


Culture

Introducing variation and selection


An innovation anchor Focus on innovation culture,

not outcome Enabling improvisation

In summary


Introducing variation and selection


An innovation anchor Focus on innovation

culture, not outcome Enabling improvisation

Culture Leadership

Creating a stretch Setting impossible

goals Maintaining a state of

perpetual crisis Sensing and shaping

opportunities

building innovation capabilities: insights on leadership and culture

Leadership & Management