Contents

Introduction

Revolution in Innovation: 3 Stages

Reinventing Innovation: Shift to a Wholistic Multidisciplinary Approach

Systemic Approach to Innovation: 7 Interwoven Areas

Lessons from Jack Welch: Constantly Focus of Innovation

Balanced Business System

Sustainable Innovation – the Key to Survival and Success

Intellectual Assets – the Major Value Drivers of Business

Shift from Linear to Systemic Innovation

Synergy  See the slide

Success Story: Apples' Innovative Business Models and Value Propositions

Harnessing the Power of Diversity

The Tao of Value Innovation

1. Business Innovation

Business Model: 6+1 Components

Changes that Call for a New Business Model

Success Story: Direct Model of Dell Computers Corp.

Success Story: GE – Creating a Competitive Enterprise  See the slide

25 Lessons from Jack Welch

Success Story: British Petroleum

Lessons from Jack Welch: Live Speed

Fast Company

Success Story: Charles Schwab

High-growth Business Development: Launching a Crusade

Owning Your Competitive Advantage

Lessons from Jack Welch: Behave Like a Small Company

Corporate Venture Investing in External Start-Ups

Success Story:  Corporate Venture Investing by GE Equity

Venture Acquisitions

Balancing Outside-In and Inside-Out Strategies

Business Innovation and Growth Strategies

Business Architect

Business Model Innovation: New Roles of the IT Leader

Systems Thinking

Discovering and Building Synergies

Building Your Cross-functional Excellence

Harnessing the Power of Diversity

Creating Cross-functional Teams

2. Organizational Innovation

Shift from Industrial to Knowledge-driven Organization

9 Signs of a Losing Organization

Entrepreneurial Organization: 10 Characteristics and 5 Benefits

10 Steps to Developing Entrepreneurial Staff

Switching Responsibilities

Managing Organizational Change: The Wheel of Business Evolution

7Ss – Framework for Analyzing and Improving Organization

Adaptive vs. Unadaptive Corporate Cultures

Organization Fitness Profile (OFP)

Innovation-friendly Organization: 6 Components

Best Practices: Organizational Structure of Silicon Valley Companies

Flat Organization: Divisional Structure

Best Practices: IDEO's Hot Studio System

Best Practices: Shift to a Matrix Organization at British Geological Survey (BGS)

Success Story: British Petroleum – a Federation of 100 Business Units

Break Down Barriers To Communication

Lessons from Jack Welch: Get Rid of Bureaucracy

Success Story: Getting Rid of Bureaucracy at ABB

Lessons from Jack Welch: Involve Everyone

Success Story: GE Work-Out

Lessons from Dell: Mobilize Your People Around a Single Goal

Best Practices: Building a Growth Culture as Dell Computers

Employee Empowerment: 3 Levels

Nourish Entrepreneurial Spirit

Inspiring Culture

Lessons from Jack Welch: Energize Others  See the slide

Freedom to Fail

The Fun Factor

Creative Leadership

Lessons from Jack Welch: Create a Learning Culture

Best Practices: Getting the Most from Knowledge Workers in Silicon Valley

Building a Team Culture

Engaging Cross-functional Innovation Teams

Leading Systemic Innovation

Best Practices: Hot Groups at BP

Best Practices: Cross-functional Innovation Teams at Quantum

Best Practices: Silicon Valley Companies – Sharing Gain With Employees

Best Practices: Pre-IPO Company Ownership

Coaching in the Workplace: Key Benefits

Three Types of Knowledge Organizations: Learning, Teaching, Coaching

Leading Change: 8-Stage Process

Lessons from Jack Welch: Cultivate Leaders

3. Strategy Innovation

The Need for Strategy Innovation

Lessons from Jack Welch: See Change as an Opportunity

Strategy Pyramid vs. Strategy Stretch

Choosing Between Strategy and Opportunity Approach

Discovering Opportunities

Strategy Innovation: 4 Steps

Strategy Programming vs. Strategy Innovation

Best Practices: Dynamic Strategy Formulation by Silicon Valley Companies

Techniques for Fast Idea Evaluation

Lessons from Jack Welch: Stretch!  See the slide

Achieving Bottom-line Results and Top-line Growth

Best Practices: Using Innovation Portfolio by Silicon Valley Companies

Best Practices: Stretching Innovation Portfolio by Silicon Valley Companies

Competitive Strategies

Sustainable Competitive Advantage

Strategic Alliances

4. Technology Innovation

Technology Innovation: 4 Types

Corporate Innovation System: 5+1 Components

Strategic Alignment

Strategic Intent

Radical versus Incremental Innovation

Radical Innovation: Key Uncertainties

Fuzzy Front End

7 Challenges in Managing Radical Innovation

Venture Strategies: Internal and External Ventures

Success Story: Spinouts of Thermo Electron Corporation

Venture Management vs. Corporate Management

Success Story: In-company Ventures by Corning

Best Practices: Measuring Innovation by Silicon Valley Companies

5. Process Innovation

The Tao of Business Process Innovation

Service-Profit Chain

Process Innovation: Shift to Cross-functional Paradigm

Process Thinking

Enterprise-wide Business Process Management (EBPM): 8 Principles

Aligning Information Technology (IT) and Business

Lean Production: Doing More with Less

Kaizen and Radical Innovation

Kaizen and Kaikaku

10 Kaikaku Commandments

Best Practices: Process Improvement at Fidelity Investments

Using 80/20 Principle

Extended Enterprise

Virtual Integration

Managing Innovation vs. Managing Operations

Best Practices: Attributes of Effective Innovation in Silicon Valley

Innovation Process: Flexible Model

Business Synergies Approach to Innovation Project Management

The Jazz of Innovation

The Jazz of Innovation: Key Components

6. Product Innovation

Product Innovation: New Product Types

New Product Development by Cross-functional Teams

Lessons from IDEO: New Product Design

Keys to Successful Market Learning

Radical Innovation: A Different Role of Prototyping

Experimentation – The Key To Discovery

Measuring Innovation: New Product Metrics

7. Marketing Innovation

Synergistic Marketing and Selling

The Tao of Marketing Innovation

Creative Marketing

Creative Marketing: The Key To Explosive Growth

Creative Marketing: Selected Amazing Results

Best Practices: Estee Lauder's Winning Creatinve Marketing Ideas

Lessons from Steve Jobs: Sell Dreams and Emotional Benefits

Success Story: Half.com – Innovative Buzz Marketing

Best Practices: Burger King's Creative Customer Survey and Buzz Marketing

Creative Solving of Customer Problems

Success Story: Xerox Corporation – Innovative Revenue Model

Success Story: Amazon.com – Creating Value and Competitive Advantage

Differentiation Strategies

Positioning

Customer Intimacy

Lessons from Dell Computers: Segmentation by Customer

Lessons from Michael Dell: Turn Your Customers Into Teachers

Sample Smart & Fast Lessons  

Slide + Executive Summary

New Systemic Approach to Innovation

Until recently innovation has been seen principally as the means to turn research results into commercially successful products, but not all research leads to innovation and not all innovation is research-based. Certainly research is a major contributor to innovation, generating a flow of technical ideas and continually renewing the pool of technical skills.  It should be a vital ingredient in your enterprise strategy, particularly over long term, if you are to maintain a stream of competitive products on the market.

Important though research is as the source of invention, innovation encompasses more than the successful application of research results. Innovation can also stem from adopting new technologies or processes from other fields, or from new ways of doing business, or from new ways of marketing products and services. The evolution of the innovation concept – from the linear model having R&D as the starting point to the systemic model in which innovation arises from complex interactions between individuals, organizations and their operating environments – demonstrates that your innovation policies and practices must extend their focus beyond the link with research.

Hard vs. Soft Innovation

• Hard Innovation is organized R&D characterized by strategic investment in innovation, be it high-risk-high-return radical innovation or low-risk-low-return incremental innovation.

• Soft Innovation is the clever, insightful, useful ideas that just anyone in the organization can think up.

Case in Point: Lessons from Jack Welch

At GE, the sum is greater than its parts as both business and people diversity is utilized synergistically in a most effective way. "Practice systems thinking and holistic approaches," advised Jack Welch. Seek to improve and optimize the totality of your business rather than the profits of its components. "Everything about this enterprise is doing more with less. It needs rejuvenation all the time. Quality is the next in the learning process. Getting rid of layer. Getting rid of fat. Involving everyone. All that was to get more ideas. The whole thing here is to create a learning organization."

Start with Yourself

To lead innovation successfully you should start with yourself. A characteristic of CEOs in stagnant companies (often referred to as the "living dead") is that they ask their people to be entrepreneurial, to innovate and grow but do not do so themselves.

If people see that the boss is a "know-it-all," at the very best they'll be motivated to learn all the boss knows.

If the boss has a rich sense of curiosity that openly questions the impact of not only his actions but those of others, the business and competitors, than others will learn from this and do like wise.

Visionary Purpose and Goals

Leading innovation requires a visionary purpose and goals. Make sure you keep stretch in your vision, communicate it constantly, and keep linking the events of today to your vision, underscoring the relationship between the two. The constant tension between today's reality and your goals is what spurs extraordinary innovation... Emphasizing the importance of today's work keeps people focused, while linking it to the vision keeps them motivated. This communication should be enduring as each encounter people have with the firm's vision unveils another element of connection.

Establishing Purpose, Direction and Goals: Leader’s Tasks

Christopher Meyer, the author of Relentless Innovation, lists the following tasks of a corporate innovation leader.

• Stretch imagination of your people; establish growth attitude

• Share your thinking, communicate your stretched vision, purpose and direction constantly and within multiple contexts

• Inject passion to energize people and bring vision into life

• Follow up, keep linking the events of today to your vision, underscoring the relationship between the two

• Resurface constantly to test purpose and direction