seeking organization - · pdf filethe 20th century, 3m credits innovation. ... priority given...

Q4312

Nicolas Bry HEC / Academic thesis fast innovation, march 8, 2010

Nicolas BryHEC / Master MUSTAcademic defense > Monday March 8th 2010

for fast innovation

SeekingorganizationQ4312

Q4312


Q4312Introduction of Jean-Louis Constanza, Orange Vallée CEO

This is the whole value of Nicolas’ work. He is capable of clearly drawing models for innovative organization that seem to me adaptable to all industries, from big equipment goods to mass products.

The French information technologies industry is potentially powerful. In practice, it should take inspiration from works such as Nicolas’ to learn how to organize itself and transform this potential power into global products.

Orange Vallée, which Nicolas describes, is a skunk works. It’s the whole of the company that has to become innovative, is what Nicolas explains.

I also agree with him on the importance of small coherent teams.

For those who know Apple, Jobs “genius” wasn’t to invent products, but mostly to create a perfectly efficient organization on these two contradictory aspects, which are: existing business and innovation.

A truly excellent organization has to perfectly manage the priority of these two businesses. This way, it can devote its collective intelligence to the things that will really make a difference with its competitors : tastes, original ideas, culture or vista.

Q4312


Introduction of Jean-Louis Constanza, Orange Vallée CEO

Innovation is a combat sport.

For a company, innovating is always synonymous with self-denial.

The associate or the department of a big company that is dedicated to innovation always runs against resistance on three levels.

The first level of resistance is linked to strategy.

The second level of resistance is linked to organization.

The third level of resistance is linked to the outside world: clients and competitors.

Practically speaking, the value of innovation work is limited as long as big companies don’t know how to organize themselves in order to transform an abstract strategy into concrete products.

Q4312


Q4312Agenda

> Innovation context at Orange

> Fast innovation, why ?

> Fast innovation, how? Q Analysis methodQ Proposition of a modelQ Application at Orange ValléeQ Conclusion

> New perspectives for fast innovation

Q4312


Questioning innovation ?

> After years of Didier Lombard’s presidency, marked by innovation, a new era of presidency begins with Stéphane Richard.

> What are Stéphane Richard’s thoughts on innovation?

≥ “My priority is to prepare Orange for the arrival of Free Mobile by securing client loyalty and increasing innovation” Le Figaro, 11 décembre 2009

≥ “It’s up to us to create a diversified offer based on innovation and new partnerships.” Challenges, 25 février 2010

≥ SR questions the usefulness of the innovations launched by Orange these past few years.

Q4312


Q4312Innovating, what are the results ?

With “skunk works” Lockheed began a series of revolutionary airplanes that still ensures them the loyalty of the American army to this day.

To explain its continuous growth from the beginning to the end of the 20th century, 3M credits innovation.

According to Procter & Gamble, the fact that its market value doubled from 2000 to 2004 is due to its open innovation policy.

To face the “mountain” of generic products, Sanofi developed a new R&D model.

For Oticon, the only way to react is to outperform its competitors in the innovation department.

When Décathlon structured innovation around its passion brands, its sales figures went up from 2 to 5 Md € en 10 years.

>

>

>

>

>

>

Q4312


Fast innovation, why?

In a globalized market, competitors from the other end of the world are close to you: you have to react fast.

It’s difficult to secure consumer loyalty : innovation is key to seduce them and it has to be done fast because it quickly becomes obsolete.

Fast innovation is also necessary since the second version is often the right one!

Development speed increases the qualities of the forecasts that can be made.

>

>

>

>

Q4312


Q4312Analysis method

Academic sources

Corporate casesKey points

for fast innovation

Fast innovation

model

Application for Orange

Vallée

Q

Q4312


The evolution of innovation

> From a linear model to an interactive model.

> The necessity of sharing knowledge.

> The emergence of an innovation market.

> A cyclic model is born from exchanges between communities.

Q tim

e

Q4312


Q43122 innovation models

3M, Procter & Gamble, Cisco, Open Source, Sanofi, Renault

Oticon, Decathlon, Gore,Jeux vidéo

Lockheed, Saturn, Ideo, EDF Business Innovation

Thriving innovation model

A model of internal and external interactions in a global innovation culture

Dedicated entity model

An autonomous unity pursuing new and uncertain activity lines

Q4312


9 tips for fast innovation

≥ Adapt the processes.

≥ Buy time.

≥ Master the complexity with an incremental approach. Prototype early and often

≥ Professionalize the pre-development stage.

≥ Staff projects to drive them faster.

≥ Work with open-minded experts.

≥ Let the team manage itself.

≥ Constantly work on reducing risks.

≥ Be mindful, learn from the experience !

Q4312


Q4312Proposed model for fast innovation

Mixed entityoutside and inside

Creative tension

Alignedinnovation strategy

Fast innovation

Q4312


Application at orange valléeRule no1

Structure and leadershipA mix of the two models

Degree of application of the rule

A dedicated innovation structure, in a separate entity, attached to the highest management level and allowing risk taking

An external leader and experts detached from the orthodoxy of the parent company build an organization with a different DNA

Priority given to speed and flexibility, the majority of ressources are alloted to innovation.

The leadership develops autonomy and creates co-leaders.

The organization is based on management by project and open network innovation.

A strong cooperation culture with the parent company.

A selection of links to develop cooperation.1

2

4

4

4

4

1 2 3 4 5

5

Q4312


Q4312RecommandationsRule no 1Priority given to the implementation of the cooperation culture

> Detachment from the resources coming from the parent company.

> A network of decision makers.

> The investment of the parent company.

> A portfolio reflecting shared innovation goals between the parent company and the dedicated entity.

Q4312



Culture and processCreative tension


A culture and atmosphere that favour innovation

A culture of diversity, circulation of knowledge in a short cycle

Project teams as box and accelerator of innovation

Short delay management of the evolution from the “creative-reflective” domain to the “mechanic-structured” domainAn open personal innovation process paired with a fast integration job, combining openness, acquisition, appropriation, aggregation and execution without flaws and in very short delays

A strategic management of the innovation projects portfolio

A framework of goals to support creativity

3

3

1 2 3 4 5

2

2

4

4

5

Q4312


Q4312RecommandationsRule no 2Toward an Orange Vallée 2.0, open to external innovation and quick to integrate it

orangeLab

opennetwork

ideas focusbrief

innovation network

screeningengagementintegration

OV 2.0connect & develop

Projet

R&DGroup Marketing

TCLOBBU

take to market

OV innovation factory

Q4312



EnvironnementCommitment of general management


Direct link to general management

A sponsor for the dedicated entity

Innovation goals for the parent company

Common goals for the parent company and the dedicated entity

Common values and “knowledge communicators”

1 2 3 4 5

3

2

5

2

1

Q4312


Q4312RecommandationsRule no 3a sponsor for Orange Vallée and the innovation culture of the Group

> A member of the group’s executive committee, he ensures a healthy relationship, he reinforces the difference and explains why the development of Orange Vallée is important

> A complementary mission of the sponsor: bring the Group toward an updated conception of innovation in the next 3 years.

> Quantified innovation goals for Orange.

> A series of common values.

> Knowledge communicators

> Appropriate transfer prices.

orange2.0

Q4312


ConclusionsToward an Orange 2.0…

An innovation without a business model remains an invention!The process must first be human: picking the team and creating situations that make sense has to be THE first concern of its leader during the creation of the entity.

orange2.0

orange vallée

2.0 1Innovation market

Mixed entity outside

and inside

Creative tension

Open innovation

Fast integration

Aligned innovationstrategy

Q4312


Q4312PerspectivesShort term : Orange Vallée has a sponsor !

“Raoul Roverato will keep his position as

Executive Director responsible for new

growth activities. Raoul Roverato will

supervise the activity of Orange Vallée,

which will remain linked to the CEO”

Reorganization of Stéphane Richard’s executive committee, 25 02 2010

Q4312


PerspectivesIn the medium term, several Orange Vallée ?Rule of design satellites at Renault ( Patrick le Quément )

orange vallée

2.0

orange vallée

2.0

orange vallée

2.0

orange vallée

2.0orange vallée

2.0orange vallée

2.0

Q4312


Nicolas BryHEC / Mastère MUST

Q4312

seeking organization - · pdf filethe 20th century, 3m credits innovation. ... priority given...

Documents