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Professor Ping Lan
University of Alaska Fairbanks,
USA April 2012 for NArFU & SKOLKOVO
Farmer, Official and Academia in China. PhD from UK. Journalist, academia and entrepreneur in
Thailand, Australia, Canada, Alaska. Keynote speaker in China, Japan, India,
Brazil, USA on Innovation and Change Management.
Creator of Arctic Innovation Competition www.arcticinno.com.
Copyright © Ping Lan
Understand Changes for ◦ Having right people◦ At right place◦ In right time◦ Doing right thing
Facilitate Changes by enabling◦ Disciplined people◦ Develop disciplined thought◦ Conduct disciplined action
Copyright © Ping Lan
Three basic changes
Seven change continents
Seven change stages
Three change roots
Copyright © Ping Lan
Functionality change--New or modified product/service/function which alters utility of an identity.
Delivery change--New or modified process/method which alters efficiency of an action.
Relationship change--New or modified linkage which alters the distribution of value.
Copyright © Ping Lan
Copyright © Ping Lan
Functionality changecreates a container for
holding something
Relationship change affects the quantity of the
thing put into the container
Delivery change determines the density of the thing put into the container
Early Ford: developed Model T, invented assemble line, and made double pay.
Transformed Apple: designed iPod, created iTunes, partner with Labels.
Initiated Google: arranged new listing, stacked computers, created Adsense.
Copyright © Ping Lan
An overall map of changes
Each continent’s uniqueness◦ Key components◦ Typical landscaping◦ Implications
Copyright © Ping Lan
7
Functionality1
Delivery2
Relationship3
-Function; -Feature-Feasibility-Consequence
-Procedures-Structure -Cost-Speed-Quality-Efficiency
-Stakeholders-Linkage-Revenue-Strategy-Organization
6
54
-Platform-Product families-New biz line
-Partnership -Culture-Managing style
-Biz model-Value chain-Vertical integration
Paradigm
Copyright © Ping Lan
Procedure◦ Define the change tripartite of an organization◦ Check the content of each one◦ Determine its comparative importance in a
competitive environment◦ Obtain the final result of the tripartite combination
Example--AltaVista ◦ Functionality: pioneer in automatic indexing◦ Delivery: lack efforts & uniqueness in delivery◦ Relationship: chaotic in management◦ Status: 1, quick up & quick down with features
Copyright © Ping Lan
Copyright © Ping Lan
Temporal dynamics of changes
A change chain
A change chain with a Loop
Time
Change
Relationship
Delivery
Functionality
Temporal Dynamics of ChangesTemporal Dynamics of Changes
Copyright © Ping Lan
Overall S Curve
Change
Radical Cross Restructure Dichotomy Dual-core Incremental Engagement
A Change Chain with A Loop A Change Chain with A Loop
Time
Copyright © Ping Lan
F F+R F+R+D D D + R R D + F
Prototype produced
Have a consumption beachhead
Standardization
Obtain a dominant design
Diversification of product or service
Drop & stabilize price
Product or service is discontinued
New/Modified Product or service
is introduced
Time
Changes
Radical Cross Restructure Dichotomy Dual-core Incremental Engagement
Patented by Sholes,50 modelswere made
1868-74
Yost, Remington& No. 2, author consumption1875-80
Caligraph,Crandell, Hammond, Hall Typists,Separate thinking from Doing1881-88
Dominant Remington 18000special equip1889-95
Adler in Germany1896-1908
Cost Sensitive Underwood control over50% market Remington, Royal, Smith & Bothers, A lot M&As1909-1929
Remington
Underwood tried E-typewriter and failed
IBM bought E- Typewriter Inc. 1933
Many firms left1930--
Wagner DesignUnderwood Royal last entry
Copyright © Ping Lan
Change
Radical Cross Restructure Dichotomy Dual-core Incremental Engagement
Loops in the Typewriter Industry Loops in the Typewriter Industry
Time
F F+R F+R+D D D + R R D + F
1933-1963: electric-powered typewriters
1964-1976: word processors
1977-1990s: Faded out of typewriters
Copyright © Ping Lan
External change marker (God/Environment/Out of control)
Internal change marker◦Three change roots◦Their work mechanism◦Changes they may bring about
Copyright © Ping Lan
Functionality change
Delivery change
Relationship change
Contents Habit for selecting learning areas & mechanisms (dealing with known/unknown by using knowledge conversion modes)
Effects Add expertise Increase sensitivity (Questioning: pose queries that challenge common wisdom; Observing: scrutinize the behavior of actors to identify new ways of action)
Working areas
Crucial Important Important
Case Amazon’s Jeff Bezos.
Copyright © Ping Lan
Functionality change
Delivery change
Relationship change
Contents Habit for associating unrelated areas (drawing connections between questions, problems, or ideas from unrelated fields)
Effects Add integration or wholeness; Create a vision, or a platform; (Networking--meet people with different ideas and perspectives)
Working areas
Important Important Crucial
Case Apple’s Steve Jobs connecting dots
Copyright © Ping Lan
Functionality change
Delivery change
Relationship change
Contents Habit for solving problems through focusing and persistent engagement /commitment
Effects Facilitate action Increase simplicity
Working areas
Important Crucial Important
Case Intel’s Andrew Grove
Copyright © Ping Lan
Disciplined people to
Develop disciplined thought, and to
Conduct disciplined action
Copyright © Ping Lan
Build up a leadership hierarchy
Have active crew members
Copyright © Ping Lan
Based on Collins 2001
Based on Collins 2001
Leading with principles
Eyeing the large picture
Acting on bright spots
Developing something from the non-existing
Enabling what needs to be done
Reviewing fairly and constructively
Copyright © Ping Lan
Right People = Tasks {match} Abilitires
Get on or off a bus;Remain in a bus.
Known destination or task;Unsure destination or task;Unknown destination or task.
Fat men fish;Fat men run;Fat men fish & run.
Copyright © Ping Lan
Confront the brutal fact
Develop hedgehog concept
Copyright © Ping Lan
Find & face facts. Continually refine the path with the brutal facts of reality.
Retain an unwavering faith in the game.
Copyright © Ping Lan
A Change Chain
Based on Collins 2001A single economic denominator
Gain the flywheel effect
Avoid the doom loop
Keep using creation/innovation
Copyright © Ping Lan
Based on Collins 2001
Based on Collins 2001
Creation/Innovation
Problems within a given boundary
Copyright © Ping Lan
New Scope
New Angle
New Method
New Effect