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.
3
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.
4
Mack Institute for Innovation Management
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
Mack Institute for Innovation Management
5
Our Impact
Mack Institute for Innovation Management
6
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
Mack Institute for Innovation Management
WHO WE ARE
7
What We StudyResearch Priorities and Publications
Research Priorities
9
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
Mack Institute for Innovation Management
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
Mack Institute for Innovation Management
10
Research Programs
11
Mack Institute for Innovation Management
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
12
PUBLISHED ARTICLES
Innovation Prowessby George S. Day
Mack Institute for Innovation Management
Fortune Makersby Michael Useem, Harbir Singh, Neng Liang, and
Peter Cappelli
Ways to EngagePartnership and Ongoing Programs
Current Corporate Partners
14
Mack Institute for Innovation Management
15
Partnership Benefits
Mack Institute for Innovation Management
New and Ongoing Programs
16
Mack Institute for Innovation Management
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
17
Mack Institute for Innovation Management
Conference Agenda
18
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
Mack Institute for Innovation Management
The Strategic Leader’s RoadmapHarbir Singh and Michael Useem
20
Mack Institute for Innovation Management
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%.
21
Mack Institute for Innovation Management
Integrate strategy and leadership
Learn to lead strategically
Ensure strategic fit
Convey strategic intent
Layer leadership
Decide deliberatively
The Strategic Leader’s Roadmap
22
Mack Institute for Innovation Management
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
?
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
23
Mack Institute for Innovation Management
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…
24
Mack Institute for Innovation Management
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
Mack Institute for Innovation Management
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
26
Mack Institute for Innovation Management
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?
27
Mack Institute for Innovation Management
The Boom Years(1982-1990)
The Bust(1991-1998)
The Comeback?(1998-2007)
The Apple Story – in Pictures
28
Mack Institute for Innovation Management
WinningBig Time!!
Can AppleSustain itsSuccess??
The Apple Story (2003-2013)
29
Mack Institute for Innovation Management
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
30
Mack Institute for Innovation Management
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
31
Mack Institute for Innovation Management
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?
32
Mack Institute for Innovation Management
Today’s AgendaTopics and Schedule
Conference Agenda
34
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
Mack Institute for Innovation Management