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5 “Innovation Styles” for Organizing the Innovation Process

5 “Innovation Styles” for Organizing the Innovation Process The Cauldron The PacMan The Fertile Field The

The Cauldron

5 “Innovation Styles” for Organizing the Innovation Process The Cauldron The PacMan The Fertile Field The

The PacMan

5 “Innovation Styles” for Organizing the Innovation Process The Cauldron The PacMan The Fertile Field The

The Fertile Field

5 “Innovation Styles” for Organizing the Innovation Process The Cauldron The PacMan The Fertile Field The

The Spiral Staircase

5 “Innovation Styles” for Organizing the Innovation Process The Cauldron The PacMan The Fertile Field The

The Explorer

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The Cauldron

The Cauldron Unleash entrepreneurial energy in a concentrated mixture of Unleash entrepreneurial energy in a concentrated

Unleash entrepreneurial energy in a concentrated mixture of

Unleash entrepreneurial energy in a concentrated mixture of

talent, ideas and resources

talent, ideas and resources

Key Levers

 

Internal markets for new ideas

Venture capital model of internal entrepreneurs seeking funding from both internal and approved external sources

Use of peers, rather than bosses, to screen and evaluate opportunities

Loose structure and frequent organizational changes

Example: Enron

“You cannot control the atoms within a nuclear fusion reaction.

We

allow people to go in which ever direction that they want to go. And

they’re incented to do all the steps of innovation themselves. And

around that, we put broad risk-reward controls.” Enron Capital & Trade Resources

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– Ken Rice,

The Fertile Field

The Fertile Field Cultivate and harvest a rich portfolio of strategic assets and Cultivate and harvest

Cultivate and harvest a rich portfolio of strategic assets and

Cultivate and harvest a rich portfolio of strategic assets and

core competencies

core competencies

Key Levers

Manage the overall portfolio of core competencies and strategic

assets Bring people together across organizational boundaries to share

information and discover opportunities Create mechanisms that gather, disseminate, and track new ideas and learnings for all employees Determine when and if to spin off a growing business

Examples

Emerson Electric (Growth Process) Royal Dutch/Shell (Gamechanger) Lucent Technologies

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The Spiral Staircase

The Spiral Staircase Continuously improve and innovate in in the core business • Key Levers –

Continuously

Continuously improve

improve and

and innovate

innovate inin the

the core

core business

business

Key Levers

 

Create a profound sense of core purpose

Let everyone know their innovation contribution is important

Give teams the leadership and autonomy they need to win

Create a culture of experimentation and commitment to learn

Examples

Charles Schwab

British Airways

Allstate (BVP Process)

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The PacMan Acquire successful innovators and integrate competencies Acquire successful innovators and integrate competencies into existing

The PacMan

Acquire successful innovators and integrate competencies

Acquire successful innovators and integrate competencies

into existing businesses

into existing businesses

Key Levers

 

Use strategic intent to guide the entrance into new markets and

 

development of new competencies

 

Develop alternatives early in the innovation process

Take stakes in promising start-ups, using the market as a

 

screen

 

Assess competitive responses to strategy innovations

Examples:

Cisco

Microsoft, WorldCom

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The Explorer Unleash entrepreneurial energy in a concentrated mixture of Unleash entrepreneurial energy in a concentrated

The Explorer

Unleash entrepreneurial energy in a concentrated mixture of

Unleash entrepreneurial energy in a concentrated mixture of

talent, ideas and resources

talent, ideas and resources

Key Levers

 

Aspire beyond what seems possible

Design and carry out effective and low-cost experiments

Use Strategic Intent to guide the entrance into new markets and

 

development of new competencies

 

Emphasize continuous, cumulative learning

Examples:

Monsanto (15 years to shift from chemicals to life sciences)

Corning (12 years to develop optical fiber)

Motorola (10 years to develop cell phones)

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Characteristics of Various Innovation Styles

IsIs the

the primary

primary focus

focus to ...

to

...

Improve on

Improve on

existing

existing

business?

business?

Create new

Create new

businesses?

businesses?

Characteristics of Various Innovation Styles Is Is the primary focus to ... ... Improve on Improve

Spiral Staircase

Do you need new

Do you need new

assets and

assets and

competencies?

competencies?

How well defined is

How well defined is

  • the the opportunity opportunity and and

how long will it

how long will it

take?

take?

Near term with

Near term with

defined

defined

market?

market?

Long term with

Long term with

undefined

undefined

market

market

  • develop new assets

How can you best

How can you best

develop new assets

and competencies?

and competencies?

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Develop new

Develop new

rapidly

rapidly

Characteristics of Various Innovation Styles Is Is the primary focus to ... ... Improve on Improve
  • Cauldron

Leverage

Leverage

existing over

existing over

time

time

Characteristics of Various Innovation Styles Is Is the primary focus to ... ... Improve on Improve

Fertile Field

Characteristics of Various Innovation Styles Is Is the primary focus to ... ... Improve on Improve

Acquire in

Acquire in

marketplace

marketplace

  • PacMan

Develop Develop internally internally
Develop
Develop
internally
internally

Explorer