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Developing Innovative OrganizationsA teaser
Cercle des investisseurs, November 20, 2012
Prof. B. Gailly
INNOVATION IN WONDERLAND
Innovation is about creativity
Innovation is about R&D
Innovation is good for you
MYTH N°1: INNOVATION = CREATIVITY
MUCH MORE THAN GENERATING IDEAS
“Genius is 1% inspiration and 99% perspiration.”
Thomas A. Edison
“Operational excellence is the crucial part of innovation”
Jeff Immelt, GE Chairman
Innovation
CHANGE
NEWNESS
MYTH N°2: BETTER INNOVATION = MORE R&DCross-industry analysis
R2 = 0.0079
R&D as % of sales, 1999
Sal
es g
row
th 1
999-
2004
, %
“There is no discernible statistical relationship
between R&D spending levels and nearly all measures of business
success”Booz Allen Hamilton
“Higher R&D spending does not ensure better performance in terms of growth, profitability or shareholder returns” (European Commission)
R2 = 0.0079
IDENTIFYING OPPORTUNITIES
Accidents Routines
Environment
Markets Technologies
Question, observe, experiment, network
STRATEGY IS CHOOSING WHAT NOT TO DO
3000 IDEAS
100 PROJECTS
4 LAUNCHESONE
JACKPOT
Only one in 6 million high tech business ideas ends up with an IPO Stanford Technology Ventures 2006
MYTH N°3: INNOVATION IS GOOD FOR YOUGive me more time to innovate
“[…] Apple is a brutal and unforgiving place, where accountability is strictly enforced, decision are swift, and communication is articulated clearly from the top. …[Jobs] is a corporate dictator who makes every critical decisions”
Fortune, May 23, 2011, p. 45
EVEN DINOSAURS DIE
THE AMBIDEXTROUS ORGANIZATION
MANAGEMENT (MARS)
Centralization
Efficiency
Data
Reliability
Planning et control
Jobs
Profits
THE MACHINE
INNOVATION (VENUS)
Complexity
Revolutions
Perceptions
Dynamism
Experimentation
People
Success rate
THE LIVING BODY
BREEDING ENTREPRENEURS Managerial levers to create the right context
What’s in for me?
What do others around think?
Is it feasible here?
Diagnosis Potential factors/levers
• Necessity• Perception of risk (e.g. vs. safety)•Awareness and sense of urgency• Recruitment and selection•…• Tolerance for failure/mistakes• Support for risk taking and change• Recruitment, promotion and evaluation• Celebration of success• …
• Skills and training, access to knowledge• Access to resources, deployment• Stress and stretch, collaboration, self-esteem• Team compositions and assignments•…
Resources Regional and global environment
INNOVATION STRATEGY
Corporate purpose
WHY DO YOU INNOVATE?
Which are my Sources of Competitive Advantages?
What are the Key Success Factors in my
environment?
BUILD YOUR CAPABILITIES
IN A NUTSHELL
Managing innovation is about managing change.
More R&D does not necessarily lead to better innovation
Innovation is a means, not an end per se
Innovation is about entrepreneurship
Managing innovation means developing the capabilities to identify, prioritize and implement new opportunities, in line with your strategy
Innovation champions are made, not born. You can all learn to become one
Executive program in innovation management
Vendredi de l’innovation
Boost your Innovation Potential
www.www. .be.be
Innovation Management
Innovation Champions
Meet our experts
Developing Innovative OrganizationsA teaser
Cercle des investisseurs, November 20, 2012
Prof. B. Gailly