Competitively unpredictable: two words that spell the key to success in today’s fast paced, highly competitive business arena. If your company has the ability to consistently outmaneuver the competition in ways they never see coming, then the future is bright. Why is being competitively unpredictable so essential now? One key reason is the ever-shrinking window of opportunity. In the past decades, depending on your industry, you could count on having three or five or even seven years after bringing something new to market to make good money before you needed to come up with the next new thing to keep revenues growing. This is no longer the case. While the pace of innovation used to be fast but still manageable, now the window of opportunity is getting shorter and moving faster so you’re forced to innovate ever faster. One of the best examples is the mobile phone industry where they are now counting in months. Open innovation and business model innovation are key concepts for becoming competitively unpredictable and in this session Stefan Lindegaard shares his views on how companies can embrace these concepts in order to bring better innovation to market faster. Specifically, he provides: • an overview of the current state of innovation and what the future will bring us • examples on how leading-edge companies merge open innovation and business model innovation • insights on why companies must embrace failure for better innovation • insights on how companies can use social media for their innovation efforts

1. BeCompetitivelyUnpredictable!
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3. Faster pace, shrinking window of opportunity,
less time for cash cows
Open innovation and biz model innovation is
key for becoming competitively unpredictable!
We need a more holistic approach to innovation!

4. Partnerships, alliances, consortia, networks
Directed
Supplier Summits, Entrepreneur Days
Instructions
Directive, invitational Directive, participative
Communities – real life and virtual
None Suggestive, invitational Suggestive, participative
Relatively few Invitations “Everyone”
Credit: OVO Innovation

5. FMCG MEDTECH PHARMA
Cycle time, money, IPR and conservatism

6. We have no choice!
Participation is the new brand
Go beyond the obvious areas!

7. Current pilot projects:
• "People are much more likely to act their way into a new way of
thinking, than think their way into a new way of acting."
• Richard Pascale
• Therefore we run pilot projects
• - in our production area (solving hard, “unsolvable” problems)
• - on improving the core LEGO experience through crowdsourcing
• - on how to improve core HR processes
• - on an Open Innovation platform

8. Most corporate innovation teams play catch-up!
Where is the vision and drive?

9. They do not innovate on the innovation process!
They do not develop their mindset and toolbox!
They lack the courage to speak up!
They lack communication skills and efforts!

10. Build on existing culture – and learn from others!
Understand the TBX (O) dynamics!
Educate up, down and outside!
Be selective – you don’t have enough resources!
Experiment, iterate – and learn from failure!

11. EMBRACE: Open innovation, business model
innovation and the new corporate garage
CONSIDER: Lean startup methods, social media
for innovation efforts and reverse innovation
RETHINK: Disruptive innovation, Crosssing the
Chasm and Blue Ocean Strategy

12. Microsoft Kinect: New
technology, new markets
Better Place: Establishing
new ecosystem
Inditex / H&M: Value
Apple chain innovation on
P&G steroids
GE
Natura
Grundfos Premium Ingredients: Mini-
Rolls-Royce factories and communities

13. EmbraceFailure for Better Innovation
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14. Companies must embrace experimentation
– and the failures that come along with it!

15. Small failures are accepted, but not big ones:
47 %
Failure is not accepted here:
7%
More than half of the companies do not
recognize failure as an inherent part of an
innovation culture!

16. “Two types of failure:
- honorable failure is where an honest attempt
at something new or different has been tried
unsuccessfully and
- incompetent failure where people fail for
lack of effort or competence in standard
operations.”
Credit: Paul Sloane

17. “A mistake is when you do something
wrong, even though you knew the right way to
do it.
Failure is when you are trying something
new, and you don’t know ahead of time how to
make it successful.
Credit: Jamie Notter

18. Developing a culture that is constructive about
failure requires a new vocabulary.
Smartfailing
When an organization embraces
smartfailing, it de-stigmatizes failure internally
and uses failure as an opportunity to learn and
to find a better course.

19. System failure (collapse of communism)
System component failure (stock market crash)
Major firm failure (Enron going out of business)
Start-up failure (Pets.com going out of business)
Product failure (New Coke tanking)
Idea failure (Apple Navigator protype, no launch
Credit: Tim Kastelle

20. The failure to anticipate / execute on…
…markets and technologies
…platforms for bringing innovation to market
…how companies innovate
External change is faster than internal change!
You win or lose in these pockets of opportunity!

21. Don’t make your platform too complicated!

22. Don’t mess up like Intuit!
Persistency / consistency is key…
…for becoming preferred partner of choice
Is Intuit moving towards next generation of OI?

23. Can P&G make next leap with experimentation?

24. They are building the platforms!

25. There are no quick fixes because the top
executives that got us into this mess are not
ready to lead us out of it!

26. Too much focus on products, technology
Unrealistic expectations on time, resources
Lack of resources in budget, people, infrastrucure
Silo rather than collaborative approaches
Poorly defined innovation strategy (if any)

29. Identify reasons, create learning process!
Go beyond products and technologies!
Be open – more communication, new terms!
Reward learning behaviors!
Educate up and down on innovation!

30. Stage 1: Shock and Surprise
Stage 2: Denial
Stage 3: Anger and Blame
Stage 4: Depression
Stage 5: Acceptance
Stage 6: Insights and Change
Credit: Steve Blank

31. Six stages of failure and redemption
Don’t get stuck in 2, 3 or 4 – move forward
Don’t skip acceptance of your role
Get to insights to change behavior…
…commit to challenge / do different next time
Credit: Steve Blank

32. Social Media for Innovation Efforts
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Twitter: @lindegaard
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33. Social media, communities and mobility will
drive the next wave of open innovation!

34. Change how we innovate
Be competitively unpredictable
Develop the right conditions and framework

35. NineSigma
Nokia Clorox
SAP
IBM Premium Ingredients

36. …tools, services and platforms that drive virtual
interaction and involvement for innovation efforts
Crowdsourcing, communities, Twitter and LinkedIn
Social media can also work for BtB companies!

37. Generate more ideas, faster
Identify and interact with innovation partners
Get market and competitor insights
Promote corporate innovation capabilities

38. What’s in it for me?
Purpose is not defined
Too many digital visitors; few residents
No proven first-mover effect, more Qs than As

39. Management = What’s in it for them?
Lack of time leads to Catch 22
Facilitators must educate – up as well as down

40. Identify your focus area, develop content strategy
Set up your platform and channels
Become a curator, start sharing
Track, improve, expand, experiment - iterate

41. Get in touch!
www.15inno.com
15inno by Stefan Lindegaard at LinkedIn Groups
stefanlindegaard@me.com
Twitter: @lindegaard
Hey! Freebookson 15inno.com!