IMT Lecture: Innovation Pattern MM Biztel 29 Jun09.
1. Design and Implementation
of
Technology Strategy:
Pattern of Industrial Innovation
Lecture by:
by:
Djadja.Sardjana@gmail.com
28-Jun-09
28-Jun- IMT MM-Biztel
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2. Design and Implementation
of
Technology Strategy:
Pattern of Industrial Innovation
BMW
1m05
Definition, Scope and
Perspective
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3. Management Innovation is…
A marked departure from
traditional management
principles, processes,
and practices or a
departure from the
customary organizational
forms that significantly
alters the way the work of
management if performed
Gary Hamel , Harvard Business Review, February 2006
6/28/2009 3
4. Operational vs Management Innovation
Operations innovation
focuses on business
processes while
management innovation
targets the company’s
management processes
Gary Hamel , Harvard Business Review, February 2006
6/28/2009 4
5. General Manager’s Perspective
Integrating of managing innovation and the impacts of
innovation upon organizations into a coherent whole still
remains a significant challenge.
They arise across the boundaries of functional
organizations, in many ways. Example, finding ideas for
Example,
new products, and the challenge of uncovering new
markets, isn’t just a marketing problem.
An organization’s structure, the systems, and the formal
and informal mechanisms powerfully influences the
types of ideas that get surfaced, pushed forward, and
surfaced,
adopted.
Burgleman, Robert, Christensen, Clayton, and Wheelwright, Steven.
Strategic Management of Technology and Innovation, Irwin McGraw-Hill, 2008
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6. Is not simply of
engineering management
Many projects lack an adequate strategy for selecting
and evaluating potential projects
Failure to stay abreast of important technologies has little
to do with :
the intrinsic difficulty or
newness of the technologies
The failure frequently can be traced to biases in decision
tools
such as return-on-investment calculations employed in the
return-on-
resource allocation process
Burgleman, Robert, Christensen, Clayton, and Wheelwright, Steven.
Strategic Management of Technology and Innovation, Irwin McGraw-Hill, 2008
28-Jun-09
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7. Management of Technology /
Innovation re.Christensen
Only from the viewpoint of the leader can the complex
challenges of
integrating the work of people in multiple functions be
understood and
the apparent performance problems in new product
development be traced to their underlying causes.
And only the leader can mold
the resources, processes and values that affect
innovation into a coherent capability
to develop and launch superior new products and
services repeatedly
(Christensen, 1999)
1999)
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8. Management of Technology /
Innovation evolutionary perspective
1. Firm’s technology strategy emerges from its
technological competencies and capabilities;
2. Technology strategy is shaped by external
(environmental) and internal (organizational
forces); and
3. The enactment of technology strategy the
experience that it generates develop the
firm’s technological competencies and
capabilities.
Burgleman, Robert, Christensen, Clayton, and Wheelwright, Steven.
Strategic Management of Technology and Innovation, Irwin McGraw-Hill, 2008
28-Jun-09
28-Jun- IMT MM-Biztel
MM- 8
9. Design and Implementation
of
Technology Strategy:
Pattern of Industrial Innovation
The Pattern
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10. Why Its Matter?
General Electric
brought management discipline to the chaos of scientific
discovery
DuPont
developed standards of comparing performance of its product
departments
Procter & Gamble
creates value out of intangible assets
Visa
formed a consortium in the US in the early 1970’s that created
one of the world’s best known brands
Linux
open source development is highly effective in coordinating the
efforts of geographically dispersed individuals
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11. Why Its Matter?
General Electric, DuPont,
IBM, Procter & Gamble,
Visa, Linux & Toyota
What makes them stand out?
Great Products? Great people? Great
leaders?
IBM
30s
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12. Why Its Matter?
Management Innovation
creates lasting advantage
when it is:
a novel principle that
challenges management
orthodoxy
systemic
part of on-going invention
on-
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13. Toyota Case Study
Harnessing employee intellect
at Toyota
Employees are more than cogs
They are problem solvers,
innovators and change agents
Gave every employee the skills,
tools and the permission to solve
problems
Real advantage was ability to
harness intellect of “ordinary”
employees
More unconventional the
principle, the longer it takes for
competitors to respond
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14. GE Case Study
Growing great leaders at GE
Persistent
Dedicated training facility in
Crotonville,
Crotonville, NY
360-
360-degree feedback
Power law: Innovation
numbers game
the more you do, greater
payback
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15. Elements of Management Innovation
Commit to a big problem
Search for new approaches
Deconstruct your management
orthodoxies
Exploit the power of analogy
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16. Commit to a big problem
What are the tough
tradeoffs that your
company never seems to
get right
What are big companies
bad at?
What are the emerging
challenges the future has
in store for your
company?
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17. Search for new approaches
Hunt down unlikely
analogies that suggest
new ways of tackling
problems
Study the unconventional
Push autonomy and self-
self-
direction
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18. Deconstruct your management
orthodoxies
Able to distinguish
between what is
apparently true and
what is eternally true
Is belief toxic to
ultimate goal?
Can you imagine
an alternative to the
reality the belief
reflects?
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19. Exploit the power of analogy
Hunt down unlikely
analogies that
suggest new ways of
tackling problems
Study the
unconventional
Push autonomy and
self-
self-direction
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21. Design and Implementation
of
Technology Strategy:
Pattern of Industrial Innovation
Walk The Talk
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22. The Strategic Management Process
Hitt, Ireland & Hoskisson
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23. The Challenge - Developing
Strategies in an Uncertain World
How do we cope with risk and uncertainty?
How do we select the right indicators to track?
How do we identify key trends and
developments?
How do we spot new opportunities, ‘white spaces’
and the potential for major discontinuities?
How do we plan, operate and survive in a
turbulent and fast-changing world?
fast-
How do we handle those not playing by ‘our
rules'?
rohit@fastfuture.com
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24. Shaping Strategy in the Face of
Uncertainty The Economy
Climate Commercial
Global
Developments Developments
Infrastructure Media
S&SR
Lifestyles Education
People
Knowledge Values Resources & Crime
Natural
Management Culture Core Skills
World
Operational
Processes &
Structures
Providers
Technology of Finance
Financial and Social Performance
Government Suppliers
Policy
Environment Interest Alternative Workers
Public
Providers
Groups Regulation Expectation Substitutes
& Values
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25. Strategic Leadership to
Strategic Competitiveness
Effective Strategic
Leadership
Shape the formation
of
Strategic Intent Strategic Mission
Influence
Successful
Strategic Actions
Formulation Implementation
of Strategies of Strategies
Strategic
Competitiveness Hitt, Ireland & Hoskisson
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31. Diffusion Social or Determination
economic of opportunity
impact 7 or need
6 1
Demonstration
5 Innovation 2
of feasibility
Life Cycle
Widespread
adoption 4
3
Prototype
Commercial or field trial
introduction or
operational use
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32. Establishing Determining
Balance Strategic
Controls 6 Direction
1
Maintaining
Innovation Core
Competencies
5 2
Strategic
Emphasizing
Ethical
4
Leadership
3
Practices
Developing
Sustaining an Human
organizational Capital
culture
Hitt, Ireland & Hoskisson
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34. Design and Implementation
of
Technology Strategy:
Pattern of Industrial Innovation
Back to Orbit
6m06
Conclusion & Final Words
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