Master of Business Synergies (MBS):

Systemic Innovation

Systemic Innovation

The New Holistic Approach for the New Knowledge-Driven Economy

New Realities and New Survival Strategies

In today's tidal wave of global economic, technological, and social change, the name of the game for you and your organization is survival. You are not going to survive in this new economy through technology innovation alone. "Growing numbers at all levels believe that, to have a better chance of success, organizations need to engage the energy, creativity and intelligence of the whole workforce and involve other stakeholders, like customers, suppliers, investors and community."⁹

The New Era of Systemic Innovation

Innovation used to be a linear trajectory from new knowledge to new product. Now innovation is neither singular nor linear, but systemic. It arises from complex interactions between many individuals, organizations and their operating environment. Firms which are successful in realizing the full returns from their technologies and innovations are able to match their technological developments with complementary expertise in other areas of their business, such as enterprise-wide business process management, manufacturing, distribution, human resources, marketing, and customer service.

Innovation is not divisible – ‘good in parts’ is no good at all. Innovation systems are only as strong as their weakest links. "You can't do carpentry if you only have a saw, or only a hammer, or you never heard of a pair of pliers. It's when you put all those tools into one kit that you invent," advised Peter Drucker.

• Process Innovation

  • Survival Strategy: Linear innovation

  • Market Leadership Strategy: Systemic innovation... More

Holistic Approach

Innovation is the key driver of competitive advantage, growth, and profitability. There are many parts of the whole field of innovation: strategy innovation, new product development, creative approaches to problem solving, idea management, suggestion systems, etc.

All of these components are important. "Yet approaching them piecemeal will bring piecemeal results... These seemingly disparate issues must be integrated into a single overarching strategy if they are to be mobilized in the quest for growth."⁶ In this new era of systemic innovation, you must design your firm's innovation process holistically.

6Ws of Corporate Growth

To achieve sustainable corporate growth, you and your people should live the principles of  6Ws of corporate growth. The "Six Ws" – what, why, who, when, where and how – are very powerful words. Use them constantly to seek, either from yourself or from others, the answers needed to manage effectively... More

7 Dimensions of Strategic Innovation

The Strategic Innovation framework weaves together seven dimensions to produce a range of outcomes that drive growth.

A company's Organizational Readiness may drive or inhibit its ability to act upon and implement new ideas and strategies, and to successfully manage operational, political, cultural and financial demands that will follow... More

3 Strategies of Market Leaders

The market leader is dominant in its industry and has substantial market share. If you want to lead the market, you must be the industry leader in developing new business models and new products or services. You must be on the cutting edge of new technologies and innovative business processes. Your customer value proposition must offer a superior solution to a customers' problem, and your product must be well differentiated... More

Business Architect – the Leader of Systemic Innovation

In today's knowledge- and innovation-driven complex economy, business architects are in growing demand.  They are cross-functionally excellent people who can tie several silos of business development expertise together, lead business innovation, create synergies, design winning business models and a balanced business system and then lead people who will put their plans into action... More

Manage Systemic Innovation by Cross-Functional Teams

In strategic innovation road-mapping, the starting point for knowledge building and learning about the innovation concept is to establish a shared view of trends, disruptive technologies and other discontinuities, and related events that could shape the future. To move efforts forward, cross-functional teams, either formal or informal, need to be formed. For incremental innovation product or service development projects, a cross-functional team  typically includes a technical guru, engineer, designer, manufacturing expert, supply chain specialist, and marketing specialist. Your major suppliers and customers need also to be kept well informed of your new product/service development plans and allowed to work together to build these new solutions.

Bibliography:

1. "Radical Innovation", Harvard Business School

2. "Venture Catalyst", Donald L. Laurie

3. "Leading Change", James O'Toole

4. "A Manager's Guide for the New Millennium:, Ken Matejka & Richard J. Dunsing

5. "Relentless Growth", Christopher Meyer

6. "Driving Growth Through Innovation", Robert B. Tucker

7. "Communication on Innovation Policy", European Commission

8. Jack Welch, interview, July 22, 1997

9. "Making a Difference", Bruce Nixon

10. "Smart Corporate Leader," Vadim Kotelnikov

11. "Smart Business Architect," Vadim Kotelnikov

12. "Innovation," Vadim Kotelnikov

13. "Entrepreneurial Creativity," Vadim Kotelnikov

14. "Systemic Innovation," Vadim Kotelnikov

15. "Innovation-friendly Organization," Vadim Kotelnikov

16. "The Jazz of Innovation," Vadim Kotelnikov

17. "Business BLISS," Vadim Kotelnikov