emerging innovation leadership challenges for global … · emerging innovation leadership...

Emerging Innovation Leadership Challenges for Global FirmsMack Institute Fall Conference 2017Wharton | Philadelphia

Who We AreOur Mission, Major Roles, and Faculty Leadership

Our Mission

The Mack Institute fosters industry and academic communities to transform our innovation research into real-world impact.

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Mack Institute for Innovation Management

A Central Node in a Knowledge Network

We act as the hub of a global network linking scholars, industry leaders, and students.

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Our Roles

Provide a research-based, cross-industry, inter-disciplinary approach to innovation challenges

Cultivate thought leadership through scholarly research in innovation management

Connect academic theory to managerial practice, focusing on established and growing organizations

Expand student and alumni opportunities to enable innovation across the university


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Our Impact


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Mack Institute activities focus on research, managerial practice, and students.

$3.4M Research funding since 2001

431 Research projects funded since 2001

537 Working papers, scholarly articles, and books/book chapters

30K Academic citations as of 2017

9 Countries represented in corporate partner network

2050 Approximate total of unique conference attendees since 2001

143K Annual MOOC enrollment

5000+Students engaged in programs, faculty-led courses, and events annually

TERRI BUTRYMOWICZProgram Manager

MICHELLE ECKERTMarketing and Communications Coordinator

LORI ROSENKOPFSimon and Mildred Palley Professor of Management; Vice Dean and Director, Wharton Undergraduate Division

KARL T. ULRICHVice Dean of Innovation; CIBC Professor; Professor of Operations and Information Management

SIDNEY G. WINTERDeloitte and ToucheProfessor Emeritus

WILLIAM HAMILTONRalph Landau Professor Emeritus of Management and Technology

JOE NEBISTINSKYAssociate Director for Industry Engagement

NICOLAJ SIGGELKOWCo-director, Mack Institute; David M. Knott Professor and Professor of Management

GEORGE S. DAYGeoffrey T. Boisi Professor Emeritus

HARBIR SINGHCo-director, Mack Institute; Vice Dean for Global Initiatives and Mack Professor of Management

RAPHAEL (RAFFI) AMITRobert B. Goergen Professor of Entrepreneurship; Academic Director, GoergenEntrepreneurial Programs; Academic Director, Wharton Global Family Alliance

SAIKAT CHAUDHURIExecutive Director, Mack Institute; Adjunct Associate Professor of Management

CHRISTIAN TERWIESCHCo-director, Mack Institute; Andrew M. Heller Professor; Senior Fellow, Leonard Davis Institute for Health Economics

JOHN PAUL MACDUFFIEDirector, PVMI, Mack Institute; Professor of Management

KATE FITZ-HENRYAdmin Coordinator

Mack Institute Staff

Mack Institute Core Team

Faculty Directors

DAVID ASCHProfessor of Medicine, Medical Ethics and Health Policy, Anesthesiology and Critical Care Medicine, Health Care Management, and OPIM; Exec. Director, Center for Health Care Innovation

DAVID HSURichard A. Sapp Professor; Professor of Management

VIJAY KUMARNemirovsky Family Dean, School of Engineering and Applied Science; UPS Foundation Professor

BRIAN LITTProfessor of Neurology and Bioengineering; Director, Center for Neuroengineeringand Therapeutics

DANIEL LEVINTHALReginald H. Jones Professor of Corporate Strategy; Chair, Management Department

Faculty Emeritus in Residence

JITENDRA V. SINGHDean, Michael Jebsen Professor of Business, Hong Kong Science and Technology University


WHO WE ARE

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What We StudyResearch Priorities and Publications

Research Priorities

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The activities of the Mack Institute are guided by the research priorities we have jointly developed with our corporate partners, signaling issues for us to study and topics for our knowledge-building events.

Partners & Faculty

Mack Institute Research Priorities

ConferencesResearch funding

Publications


How do firms make wise bets on long-term innovation projects when prospects are distant and uncertain?

What is the right balance of risk and return in innovation portfolios?

CAPTURING ECONOMIC VALUE FROM INNOVATION

What new forms of organization and business models are enabled by advances in technology and enhanced globalization?

How do best practice firms act on opportunities and threats sooner than their rivals?

LEADING AND ORGANIZING FOR INNOVATION

What distinguishes growth leaders from laggards?

How do winning firms bring their innovations to market ahead of their rivals?

What strategies can help contain risk from moves into adjacencies and white spaces?

STRATEGIES FOR INNOVATING

How do emerging technology-based industries differ from established industries? How do they emerge and evolve?

What explains patterns of competitive entry, shakeout, and survival in these industries?

INNOVATION OPPORTUNITIES

Research Priorities


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Research Programs

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Each year, the Mack Institute funds research by Wharton faculty and PhD students on topics related to innovation management.

In 2016, the Mack Institute sponsored 27 faculty and PhD research fellowships with a total of $209,000 in funding.

Explore all recent projects at mackinstitute.wharton.upenn.edu/research

The Strategic Leader’s Roadmap

by Harbir Singh and Michael Useem

Publications by Faculty

“Which Industries are Served by Online Markets for Technology?”Science Direct, April 2017

“Building a More Intelligent Enterprise”MIT Sloan Review, March 2017

“Idea Generation and the Role of Feedback: Evidence from Field Experiments with Innovation Tournaments” - Production and Operations Management, January 2017

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PUBLISHED ARTICLES

Innovation Prowessby George S. Day


Fortune Makersby Michael Useem, Harbir Singh, Neng Liang, and

Peter Cappelli

Ways to EngagePartnership and Ongoing Programs

Current Corporate Partners

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Partnership Benefits


New and Ongoing Programs

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Engage with Us Online

Visit our site for our latest news, publications, events, and research updates:

http://mackinstitute.wharton.upenn.edu

Follow us on Facebook, Twitter, YouTube, and LinkedIn

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Conference Agenda

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9:00 a.m.–9:45 a.m. Welcome and Introduction

9:45 a.m.–10:45 a.m. Capabilities and Firm Survival

10:45 a.m.–11:00 a.m. Break

11:00 a.m.–12:00 p.m. Technology, Governance and Regulatory Implications

12:00 p.m.–1:00 p.m. Lunch and Networking

1:00 p.m.–2:00 p.m. Integrating Leadership and Strategy

2:00 p.m.–2:15 p.m. Break

2:15 p.m.–3:45 p.m. Workshop: See Sooner/Act Faster: The Role of Vigilant Leadership

3:45 p.m.–4:00 p.m. Closing Remarks


The Strategic Leader’s RoadmapHarbir Singh and Michael Useem

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Transforming NissanJapanese automaker Nissan had lost global market share (from 6.6 to 4.9%), lost money for the past 7 or 8 years, and had run up $19 billion in debt (with an annual debt service of $1 billion).

The Nissan CEO had set forward a turnaround plan (slashing auto “platforms, discontinuing unprofitable models, introducing SUVs, focusing on earnings and not just sales).

French auto maker Renault invests $5.4 billion, takes 36% ownership, installs Renault executive Carlos Ghosn as chief operating officer (#2) of Nissan.

Ghosn transforms Nissan, increasing factory utilization from 53 to 77%, cut suppliers by half, reduced administrative costs by 20%.

Strategy + Leadership => Nissan global market share in September, 2016: 8.5%.

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Integrate strategy and leadership

Learn to lead strategically

Ensure strategic fit

Convey strategic intent

Layer leadership

Decide deliberatively

The Strategic Leader’s Roadmap

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What factors explain these changes?

INDUSTRY

1970s Leaders

1980s/1990s Challengers

2000-2017 Winners

Automotive GM, Ford Toyota, Honda ?

Telecom AT&T, ITT MCI, Alcatel, NEC ?

Computer related industries

IBM, Burroughs Microsoft, Sun, Compaq

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Photo Film Kodak Fuji ?

Photocopiers Xerox Canon ?

Consumer Electronics GE, Philips Sony, Matsushita ?

Semiconductors TI, Motorola NEC, Fujitsu, Intel, Samsung

?

Sustaining Success Appears to be Difficult

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The Challenge: Established firms have many strengths, but often struggle to sustain their innovative edge over time

Source: Saikat Chaudhuri

Some have succumbed…

Some have reinvented themselves…

Many face the challenge now…

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S-Curves and New Discontinuous TechnologiesFigure 3-5: Technology S-Curves -- Introduction of discontinuous technology

Performance

Effort

Performance

Effort

a) New technology has steeper s-curve

b) New technology has higher s-curve

First technology

First technology

Second technology

Second technology

Source: Schilling25


Source: Saikat Chaudhuri

Clockwise: Chuck Robbins, Cisco Systems; Ursula Burns, Xerox; Jamie Dimon, J.P. Morgan Chase; Indra Nooyi, PepsiCo; Liu Chuanzhi, Lenovo; Meg Whitman, Hewlett Packard Enterprise

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Integrate Strategy and LeadershipIntegrate Strategy and Leadership. Master the elements of strategy and leadership both separately as a combined whole. Management questions:

Product Differentiation Strategy: How is the enterprise positioned in its markets, and how should managers respond to competitors, suppliers, and new entrants? Leadership: Are the right people and architecture in place to implement that market positioning?

Production Cost Strategy: What factors create or destroy value in the enterprise? Leadership: What people and architectural steps can be taken to increase value at the enterprise and reduce its loss?

Superior Value Proposition Strategy: What are the optimal decisions for strengthening a firm’s position and competitive advantage in the market? Leadership: What are the most effective people and architectural choices for achieving that position and realizing that strategy?

Sustained Value Proposition Strategy: Is a different strategic direction required given changes in the market? Leadership: How should the firm’s people and architecture be redeployed and restructured to achieve that new direction?

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The Boom Years(1982-1990)

The Bust(1991-1998)

The Comeback?(1998-2007)

The Apple Story – in Pictures

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WinningBig Time!!

Can AppleSustain itsSuccess??

The Apple Story (2003-2013)

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Nissan Revival Roadmap

Learn to lead strategically• Vision

• Directed learning, instructive experience

Value drivers: value proposition, differentiation, relative cost, sustained value for customer

Convert strategy into key initiatives, convey strategic intent, layer leadership

Build boards/advisory groups that also have a leader’s mindset

Develop managers who can think and act strategically

Source: Singh and Useem: The Strategic Leader’s Roadmap, 2016

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Ghosn: New Opportunities 2017

Localization of supply chainsDevelop supply chains for each key local region

Connected CarTechnology enabled driving

Internet applications

Zero emissionsClear goal espoused by younger demographic

Re introduce the joy of drivingMake it convenient, not a chore in traffic

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Questions

What are the hallmarks of a good strategy?

What are the hallmarks of good organizational leadership?

What does it mean to effectively link strategy and execution?

Examples ofGood strategy concept, poor organizational leadership?

Good organizational leadership, poor strategy?

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Today’s AgendaTopics and Schedule

Conference Agenda

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9:00 a.m.–9:45 a.m. Welcome and Introduction

9:45 a.m.–10:45 a.m. Capabilities and Firm Survival

10:45 a.m.–11:00 a.m. Break

11:00 a.m.–12:00 p.m. Technology, Governance and Regulatory Implications

12:00 p.m.–1:00 p.m. Lunch and Networking

1:00 p.m.–2:00 p.m. Integrating Leadership and Strategy

2:00 p.m.–2:15 p.m. Break

2:15 p.m.–3:45 p.m. Workshop: See Sooner/Act Faster: The Role of Vigilant Leadership

3:45 p.m.–4:00 p.m. Closing Remarks


emerging innovation leadership challenges for global … · emerging innovation leadership...

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