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[object Object],[object Object],[object Object],[object Object],Ten Rules for Strategic Innovators
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],What is Innovation? Knows not that it cannot be done Sees what everyone sees But thinks what no one else does
What should be our strategy? ,[object Object],[object Object],Box 1 Manage the present Box 2 Selectively forget the past Create the future Box 3 ,[object Object],[object Object],[object Object],The fundamental difference in present to future is -  present is about linear changes while future is about discontinuous changes
The fundamental question arises as to what effectively should I do today to engineer tomorrow Next 25 years, explosive growth will reach the current level of world income This cannot happen with the same business models The organization response has to be non linear ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Change in rules of the game –  Competing for knowledge – game shifting from H/w to S/w Britannica & Encarta could not become today’s Google!! Success Models in India :- Pre 1990  Success in license management 1990 – 2005 Reverse Engineering 2006 onwards Innovations ,[object Object]
Olympic Gold Medal Winners in High Jump 1900 1920 1940 1960 1980 1.8 2.6 2.4 2.2 2.0 1.6 Couldn’t find a similar pictures as mentioned in the presentation hardcopy You would require to explain to me  the context /background in order for me to find a suitable replacement
Strategic Balance Box 1 Competition for the present Box 2 and Box 3 Competition for the future Performance Gap Opportunity Gap Renewal Restructuring Every Strategy has a finite life and capability BOTH THESE NEED A BALANCE ,[object Object],[object Object]
Sources of Market Discontinuities ,[object Object],[object Object],[object Object],This will show our focus on tomorrow Pressure  for changing the rules of the game Technology Demographics Competitors Globalization Lifestyle Customers
Box 2 and Box 3 Thinking Breakthrough  Ideas Breakthrough Execution x Computer has become an information appliance – the redesign creates the opportunities anew.  A breakthrough execution will disrupted Television, Video, rental music recording and many other business models
Elements of Strategy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Growth Initiatives Core Business Adjacent Space Non – Adjacent  Space Horizon 1 Horizon 3 Horizon 2 Here & Now Extending Core Competencies beyond current business 5 -10% resources to conduct experiment  ‘Don’t bet your Company Time Continuum  2006 2008 2008 - 2015
[object Object],[object Object],[object Object],[object Object],[object Object]
Criteria For Strategic Intent ,[object Object],[object Object],[object Object],Strategic Intent usually includes a wide failure probability What is probability of success even if the objective probability is 5%.  The successful organization sees the universe within the 5%
The Apollo Program ,[object Object],[object Object]
Apollo 13 EARTH MOON X
Apollo 13 EARTH MOON X
Apollo 13 EARTH MOON X
“  We will  “ - has a ring of confidence & conviction – only then does the flock follow ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Think Make Sure Do
The Top 10 Things You Can Do  With a Dead Horse  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Payoffs From A Bold Intent Resources Ambition A Very High Slack Limited B Very Limited Stretch Very Large Is there enough experimentation happening to make current models obsolete? Make a judgment between ‘’cannibalization” vs. creating new business models as a consequence
Xerox’s Rules of the Game ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Marathon Race We Are Here 400 Meters 400 Meters 400 Meters Miles 26 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Xerox’s Bullet – Proof Castle Patents Direct Sales Force Service Organization Lease Base Brand Name
Xerox’s Bullet – Proof Castle Patents Direct Sales Force Service Organization Lease Base Brand Name IBM Kodak
Xerox’s Bullet – Proof Castle Patents Direct Sales Force Service Organization Lease Base Brand Name CANON R.I.P  IBM R.I.P  KODAK
Core Competencies What They Are  Not ,[object Object],[object Object],[object Object],[object Object]
Core Competencies Definitions ,[object Object]
Core Competencies Three Tests ,[object Object],[object Object],[object Object],[object Object],(3) (2) (2) (4)
Honda Small Engine Design Automobiles Snowmobiles Outdoor Power Tools Snow Blowers Lawn Mowers Lawn Mowers Motorcycles ,[object Object],[object Object],[object Object],[object Object],Strategic Intent “ Six Honda in a Two – Car Garage”
Prioritizing New Business Opportunities ,[object Object],Large Size of the opportunity Small Low High 1 2 3
Outline ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
What is the logic of Silicon Valley?  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Can some of the above be inculcated within the company
Concept of Business Model Innovation Value Chain Architecture Customer Value
Role of Venture Capitalists ,[object Object],[object Object],[object Object],[object Object]
Venture Capital Industry ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Average Return on Investment
Logic of Silicon Valley Market for Talent Market for Ideas Market for Capital Attract and retain entrepreneurs First generation immigrants Younger Huge upside potential No Stigma for failure Basic research at Standford /Berkeley/Caltech Company building infrastructure Rich network of relationships High employee mobility Availability of risk capital Distributed resource allocation model
Logic of Biological Evolution Variation Retention Selection Exploitation Exploration ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Organizational DNA of Rule Changers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Ecology for Innovation : The Case of 3 M ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Business Model Comparison ,[object Object],[object Object],Core Competency Can predict next years results +/- 100% ,[object Object],Uncertainty ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Value Chain Architecture ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Value Proposition ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Customer NYTD NYT
Forgetting – Three Common Mistakes ,[object Object],[object Object],[object Object]
Borrowing – Three Common Mistakes ,[object Object],[object Object],[object Object]
Learning – Three Common Mistakes ,[object Object],[object Object],[object Object]
Borrowing – Three Common Mistakes ,[object Object],[object Object],[object Object]
The Best Sign of a Healthy Learning Process : ,[object Object],Learning Accuracy of Predictions Years Wild Guesses Informed  Estimates Reliable Forecasts
Ten Rules ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],FORGET BORROW LEARN

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Innovative Strategies

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  • 6. Olympic Gold Medal Winners in High Jump 1900 1920 1940 1960 1980 1.8 2.6 2.4 2.2 2.0 1.6 Couldn’t find a similar pictures as mentioned in the presentation hardcopy You would require to explain to me the context /background in order for me to find a suitable replacement
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  • 9. Box 2 and Box 3 Thinking Breakthrough Ideas Breakthrough Execution x Computer has become an information appliance – the redesign creates the opportunities anew. A breakthrough execution will disrupted Television, Video, rental music recording and many other business models
  • 10.
  • 11. Growth Initiatives Core Business Adjacent Space Non – Adjacent Space Horizon 1 Horizon 3 Horizon 2 Here & Now Extending Core Competencies beyond current business 5 -10% resources to conduct experiment ‘Don’t bet your Company Time Continuum 2006 2008 2008 - 2015
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  • 15. Apollo 13 EARTH MOON X
  • 16. Apollo 13 EARTH MOON X
  • 17. Apollo 13 EARTH MOON X
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  • 21. Payoffs From A Bold Intent Resources Ambition A Very High Slack Limited B Very Limited Stretch Very Large Is there enough experimentation happening to make current models obsolete? Make a judgment between ‘’cannibalization” vs. creating new business models as a consequence
  • 22.
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  • 24. Xerox’s Bullet – Proof Castle Patents Direct Sales Force Service Organization Lease Base Brand Name
  • 25. Xerox’s Bullet – Proof Castle Patents Direct Sales Force Service Organization Lease Base Brand Name IBM Kodak
  • 26. Xerox’s Bullet – Proof Castle Patents Direct Sales Force Service Organization Lease Base Brand Name CANON R.I.P IBM R.I.P KODAK
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  • 34. Concept of Business Model Innovation Value Chain Architecture Customer Value
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  • 37. Logic of Silicon Valley Market for Talent Market for Ideas Market for Capital Attract and retain entrepreneurs First generation immigrants Younger Huge upside potential No Stigma for failure Basic research at Standford /Berkeley/Caltech Company building infrastructure Rich network of relationships High employee mobility Availability of risk capital Distributed resource allocation model
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