SESION 11 INNOVATION CURVE, ORG CYCLE, PRODUCT CYCLE

Types and extent of innovation

Radical or incremental:
The extent to which a technology has changed, or the degree of novelty of an innovation.
Radical include breakthroughs/Technological revolutions

Incremental include the million little things that involve minors changes to existing products.

Continuous or discontinuous:
-

Affects the way existing things are done.

Commonly is difficult to break away from previous technologies, and you have to destroy existing successes

Corporate life cycles are defined by the interrelationship of:

-

Flexibility and control.

They are not defined by a company's chronological age, sales or assets, or number of employees. The goal is to reach-and stay at--Prime.
Corporate life cycles are defined by the interrelationship of:
-

Flexibility and control.

They are not defined by a company's chronological age, sales or assets, or number of employees. The goal is to reach-and stay at--Prime.
Courtship
Would-be founders focus on ideas and future possibilities, making and talking about ambitious plans.
Courtship ends and infancy begins where the founders assume risk.
Infancy
The founders' attention shifts from ideas and possibilities to results.
The need to make sales drives this action-oriented, opportunity-driven stage.
Nobody pays much attention to paperwork, controls, systems, or procedures.
Founders work 16-hour days, six to seven days a week, trying to do everything by themselves.
GoGo
This is a rapid-growth stage. Sales are still king.
The founders believe they can do no wrong.
Because they see everything as an opportunity, their arrogance leaves their businesses vulnerable to notorious
mistakes.
They organize their companies around people rather than functions; capable employees can--and do--wear many hats,
but to their staff's consternation, the founders continue to make every decision.

Adolescence
During this stage, companies take a new form.
The founders hire chief operating officers but find it difficult to hand over the reins.
An attitude of us (the old-timers) versus them (the CEO and his or her supporters)
There are so many internal conflicts, people have little time left to serve customers.
Companies suffer a temporary loss of vision.
Prime
With a renewed clarity of vision, companies establish an even balance between control and flexibility.
Everything comes together. Disciplined yet innovative, companies consistently meet their customers' needs.
New businesses sprout up within the organization, and they are decentralized to provide new life-cycle opportunities.
Stability
Companies are still strong, but without the eagerness of their earlier stages.
They welcome new ideas but with less excitement than they did during the growing stages.
The financial people begin to impose controls for short-term results in ways that short long-term innovation.
The emphasis on marketing and research and development decline.
Aristocracy
Not making waves becomes a way of life.
Outward signs of respectability--dress, office decor, and titles--take on enormous importance.
Companies acquire businesses rather than incubate start-ups.
Their culture emphasizes how things are done over what's being done and why people are doing it.
Company leaders rely on the past to carry them into the future.
Recrimination
In this stage of decay, companies conduct witch-hunts to find out who did wrong rather than try to discover what went
wrong and how to fix it.
Cost reductions take precedence over efforts that could increase revenues.
Corporate infighting rule.
Executives fight to protect their turf, isolating themselves from their fellow executives.
Petty jealousies reign supreme.
Bureaucracy
If companies do not die in the previous stage--maybe they are in a regulated environment where the critical factor for
success is not how they satisfy customers but whether they are politically an asset or a liability--they become
bureaucratic.
Procedure manuals, paperwork abounds, and rules and policies suffocate innovation and creativity.
Even customers--forgotten--find they need to devise elaborate strategies to get anybody's attention.

Death
The final stage may creep up over several years, or it may arrive suddenly, with one massive blow.
Companies crumble when they cannot generate the cash they need; the outflow finally exhausts any inflow.
Organizational Life Cycle

SESSION 12 AND 13 INNOVATION

A mix for my proyect
The foundation of everything about designing a product are in QFD methodology.
The perfect way to hear from the clients and to build problems prototype is in Lean Canvas.
Running Lean
Meta principles
-

Document your plan A.

Identify the riskiest parts of your plan.
Systematically test your plan.

Lean Canvas. Document your plan A.

Many founders carry their hypotheses in their heads alone, which, though the fastest way to iterate, only helps to
further support their own reality distortion fields
Write down your initial vision and then share it.
Use the one page format to do it, is fast, concise, and portable.

Lean Canvas. Document your plan A.

Customers dont care about solutions. They care about their problem
Lean Canvas. Step 2: Identify the riskiest parts of your plan

Lean Canvas. Step 3: Systematically Test your plan

What is an experiment?
A cycle around the validated learning loop.
Lean Startup methodology is strongly rooted in the scientific method.
Lean Canvas. Step 3: Systematically Test your plan
What is an experiment? A cycle around the validated learning loop.

SESSION 14 INNOVATION MANAGEMENT SYSTEMS

Management Systems
It is the management systems that make the mechanism happen.
Big companies need systems to manage innovation (communication) more than small.
Innovation must be managed, there is a resistance about it.
Innovation systems are established policies, procedures, and information mechanisms that facilitate the innovation
process within and across organizations.
Making innovation needs communication among many departments: R&D, manufacturing, marketing, sales, finance,
processes, decision making. Five roles of an innovation system:

Five roles of an innovation system:

Efficiency:

The system needs to move great ideas from concept to commercialization.

With Speed.
Minimum use of resources.

Appropriate lines of communication:

From outside and inside.

Planning and follow up.

Coordination with the minimum effort:

Ensure that resources are available on time.

Uses of the minimum communication.
Right people at the right time.

Learning:

From the experience

Introducing new knowledge in the company

Alignment:

Leadership element
Creating a vision and enrolling skills

Stages:

Ideation
Experimentation
Funding decisions
Prototyping
Execution of the innovation project (commercialization)
Making Deals

Innovation Process:

Ideation:

All ideas start with the recognition of gaps

Challenge: create an environment to nurture the generation of large quantities of great ideas about
the gaps and move them to next stages.

Experimentation:

Test
Refute
Modify

Validate potential breakthrough

Necessity to learn to expect the unexpected

Prototyping
Anything simple that enables you to visualize and understand better where your ignorance exists.
Rules:

Think modularly
Fail fast and cheaply
Fail often in order to succeed faster

Experimentation

Test
Refute
Modify

Validate potential breakthrough

Necessity to learn to expect the unexpected

Prototyping
Anything simple that enables you to visualize and understand better where your ignorance exists.
Rules:

Think modularly
Fail fast and cheaply
Fail often in order to succeed faster

Must be a core competency of the innovation team:

Challenge the existing mental models of the team.

Uncover patterns of results from which the team can learn
Pull the team together and create a common, shared vision and language.
Generate a level of excitement that traditional means cannot equal.
Generate new thinking that eventually becomes the radical innovation.

Making Deals
Include a process step that turns the idea into a sufficiently complete picture that potential investors can see the real
value and risks of investing.
Must manage the dualities of:

Technology and business models

Radical and incremental innovation
Creativity and value capture
Networks and platforms

SESSION 18 THE STRATEGIC MANAGEMENT OF INNOVATION

Managing innovation it is:

Too important
Expensive
Risky
It is about producing results

The strategic Management of Innovation

IvT assists the management of innovation, only when an appropriate strategy is developed and deployed with related
organizational and skills issues being addressed.

Technology can reduce the cost, increase the speed, and ameliorate some of the uncertainty of
innovation.
A company must be ready to adapt different IvTs.
Competencies: knowledge, skills, values.
There competencies are adapted and changed over time by what are called dynamic capabilities: those
elements of firms that facilitate the reconfiguration of existing, and creation of new, competencies to
meet new opportunities.

The impact of IvTs on strategic management

Capabilities:

Integrating across boundaries

Organizing internal structures and processes
Learning, creativity and knowledge

Capabilities:

Some firms are making the transition from being product-based to becoming solutions providers.
Use of IvT provides opportunities for firms to realign themselves in their value stream and has enabled
some firms to position themselves as systems integrators.

Key amongst these capabilities are:

The way in which firms integrate across boundaries, organize themselves, and manage knowledge,
creativity and learning

Capabilities: Integrating across boundaries

Strategic integration is the fifth generation innovation process.

Relationships between firms and their external environments.
Ensure that organizational structures and technology are supportive.
Integrating with customers.
Integrating with suppliers.
Integrating with the science base.
Integrating with competitors
Systems integrators: are responsible for coordinating a network of upstream component suppliers and
subcontractors, designing and integrating systems and providing services that add value to the
product.

Capabilities: Organizing internal structures and processes

How companies organizes and structures to exploit the existing ways of doing things and explore
new ones.
IvT: technology may assist in delivering the ambidexterity to organize for incremental and
disruptive circumstances.

Project-based structures: offer a new model for coordinating loose networks of highly skilled
individuals performing specific tasks and for coordinating complex innovations involving a variety
of contributors.
Team working: use of IvT enables distributed and diverse teams to become more effective.
Produces greater confidence in the teams ability to integrate different components or elements
of a product, service, or project, facilitate more effective knowledge flow. Enable knowledge to
be created.
Physical work environment: cells, hives, dens, clubs. Challenge.
Merging media
Skills and skills mix
Skills:
Applying analogies: developing insights.
Multiple insights: creating options.
Think systematically: integrations of a new idea during implementation.
Skills mix:
Key account management.
Risk analysis and management
Legal skills
Information management
Portfolio management
Leadership

Capabilities: Learning, creativity, and knowledge

IvT, learning, and knowledge

IvT and creativity

Capabilities: Organizing internal structures and processes

How companies organizes and structures to exploit the existing ways of doing things and explore new
ones.

Session 20 Customer Centricity

Product and Service Innovation
What is it?
The process of innovating and offering improvements and radical proposals about PS to the market.
Potential benefits of effective new product development:

Market position: a new product can set industry standards, barriers to competitors or open up new
markets.
Resource utilization: capitalizing on prior R&D Investments, improving the returns on existing assets,
applying new technologies to products and manufacturing processes.
Commitment, innovation, and creativity of the entire organization.

Failure in PSI:

Failure is common.
Failures are in the market place.
Do not meet users needs.
Are not sufficiently differentiated from the products and services of competitors.
Do not meet technical specifications.

Are too highly priced compared to theirs perceived value.

Do not comply with regulatory requirements
Compete with the companys other products and services
Lack strategic alignment with the companys business portfolio.

Failure in PSI:

PSI face:
Market risks
Competitive risks
Technological risks
Organizational risks
Operational risks
Financial risks
Provide the basis for:
New approaches to marketing.
New product concepts.
New technological alternatives.
New information about customers that may lead to major product reorientation.
Identification of weak links in the organization.
Inoculation of strong elements of the organization against replication of failure patterns.

To be successful companies need to:

Creative and controlled

Share information and protect it as major source of competitiveness
Respond to the market demands as well as produce differentiated products and PS

Internal organizational integration for PSI:

Being client centric

Capabilities to be a company client centric:

Clear vision
Specific Customer Experience targets
Ongoing measurements of Customer experience.
Company wide governance model to keep the top and middle management engaged and to break
down walls between silos in the company.
Change management to enable employees to put the customer in the center.

Session 24 Design Thinking

What is design thinking?
As a style of thinking, design thinking is generally considered the ability to combine empathy for the context of a
problem, creativity in the generation of insights and solutions, and rationality to analyze and fit solutions to the context.
While design thinking has become part of the popular lexicon in contemporary design and engineering practice, as well
as business and management, its broader use in describing a particular style of creative thinking-in-action is having an
increasing influence on twenty-first century education across disciplines.
Process Stanford Methodology

Friendly organizations to DT (Design Thinking)

IBM Method

How to create yourself as a design leader

1.
2.
3.
4.
5.
6.

Be selective in choosing which organizations to work with

Work with senior leaders to build strong intent and an embedded culture of design
Be a system thinker
Focus on human interactions and social processes
Exercise will-directed discipline when implementing new processes
Kill some sacred cows

7. Help organization to learn more about itself from experience

Design thinking also encompasses several related types of innovation intelligence.
Emotional Intelligence: the ability to understand and embrace in the context of culture that moves us to act and that
creates attachment, commitment, and conviction.
Integral intelligence: is the ability to bring together diverse customer needs and business ecosystem capabilities into
complete systems that deliver value and reflect the values of the birth organization.
Experiential intelligence: is the ability to understand and activate all five human senses to make innovation tangible,
known and vibrant

SESSION 25 26 INNOVATION CREATIVITY

Creativity at work
What allows a company to respond proactively to diverse pressures is the development of creativity as a core
competence.
Core competence: well developed ability or characteristic that is central to your firms ability to succeed.
Creativity and value creation

The Company do a lot of things to try to be creative and to create value like: trained its employees in creative thinking,
implemented a portfolio system for monitoring projects, or introduced a rapid prototyping systems, product
development process.
Are all this efforts value creation?
NOT all the time, in many cases this are the results:

Creativity programs that leave people feeling good but dont produce tangible results.
Good ideas that cant be commercialized
Extensive development systems that dont produce breakthrough products or services.
New ventures that dont make sense as a business
Flavor of the month, initiatives for quality, change or culture
Enterprises that are misaligned with strategy and goals

What is creativity?
Is a purposeful activity (or set of activities) that produces valuable products, services, processes, or ideas that are
better or new.
Whether or not you call the results of creativity, innovation
4 main types of creativity - profiles

Internal and external forces that affect creativity at work

External:

Competition
Technology
Demographics
Government regulations
Consumer demands
Politics Macroeconomics
Shareholders
Social concerns

Internal:
Organizational
characteristics
Organizational
culture, values

People in each profile ->

SESSION 26 LEGO
Innovation Strategy
Guides decisions on how resources are to be used to meet a firms objectives for innovation and thereby deliver value
and build competitive advantage.
Model of innovation strategy

Innovation strategy fit with overall company strategy, existing innovation efforts and the context in which it operates.
The identified targets are the technologies and markets that managers believe will create and deliver best value for
their firms.
Resources for innovation:

Resources available for innovation: the assets a firm owns and to which it has preferential and secured
access

Innovative capabilities:

That guide and enable those resources to be assessed, configured, and reconfigured.

Innovation processes:

Used to deliver results: the combinations of management and organization around RandD, new
product and service development, operations, and commercialization that deliver innovation.

Types of innovation strategy

SESSION 27
Management of research and development
Is the major source of rejuvenation and growth for companies, providing and important contribution to innovation
and competitive advantage.
Managing R&D teams
Project management system based on roles

Managing creativity in research

Managing research to encourage creativity involves resolving what has been called the dialectical process of synthesis
between multiple dilemmas:

Freedom and control

Flexibility and focus

Differentiation and integration
Instrumentalism and discontinuity

Effective group and team management is essential for creativity and the success of R&D projects, but it is also
important to manage key individuals.
You need to identify these people, nurture their creativity, and ensure they remain with the company.
Project selection - Budgets for creativity
Choosing the right R&D project remains an uncertain decision. Tools, such as Multi-Criteria Assessment (MCA) help in
the choice.
MCA is used in the very early stages of an innovation process, when design problems are being defined and focused.
MCA facilitated process: assist individuals to articulate their ideas, encourages group brainstorming and collates and
presents results.
MCA facilitated process: assist individuals to articulate their ideas, encourages group brainstorming and collates and
presents results.
MCA Steps

1. A group from different organizational responsibilities is brought together.

2. Each individual in the group articulates, maps and chooses options related to the innovations issue
being addressed.
3. Each individual decides which criteria are important to them and provides why.
4. The group assigns scores to the performance/outcomes of the carious options.
5. Weightings are added, rating and ranking the importance of each criterion.
6. Results are computed: often the scores under each criterion are multiplied by the weightings to
produce relative scores for each option.
SESSION 29 BUSINESS BY DESIGN
Business by design
To maximize the impact on corporate outcomes design should be:

The path to understanding stakeholder priorities,

The tool for visualizing and prototyping concepts,
And the process for translating cutting-edge ideas into effective strategies.

Why Business by Design is important?

The Greatest payout of design thinking is in the design of business itself: the design of strategies and business models
for enterprise success.
Open up new opportunities, set more growth strategies, and evolve the business model to better seize market
opportunities
The NEED of a company is: the ability to navigate through change.
The dynamic is created by:

Economic instability around the world calls for new ways to address big challenges
Social values are sighting and causing higher expectations for corporate social and environmental
responsibilities.

Global access to world markets opens up new opportunities for commerce and expanded access to
talent and business resources.
Technology has profoundly changed the ways in which people connect and ways business gets done.
Market place expectations are higher than ever. Consumers have come to expect better, more
sophisticated offerings and greater customizations, expectations now is that all people in all markets
should have access to life-enhancing solutions.

Process Stanford Methodology

The METHOD: the three gears of business design

The METHOD
Incorporates empathy and deep use understanding, concept visualization and prototyping, and strategic business
design.
It is not a linear process: offers a framework for iteration that knits together user needs, powerful ideas, and
enterprise success.
You get: bigger breakthroughs faster value conceptual solutions and extracting strategic intent from the concepts to
recast strategic business models.
Gear one: Deep user understanding
Why is so important to understand the client?
It is this deeper understanding of needs that reveals important opportunities
The first step is to understand your customer more broadly and deeply.
It helps reframe the business challenge thought the eyes of the ultimate end user and establish a human context for
innovation and value creation. Companies are often quite well versed in measurement of the human factor in their
business, but are often lacking in broad and deep understanding of the customer.

Look for a company that really understand the client and it is design by the client

Gear two: Concept visualization

Begins with the broad exploration of possibilities for serving the unmet needs discovered in Gear One, and moves
through multiple prototyping and concept enrichment, ideally with users.
Look beyond what is to what could be, using imagination to generate solutions.
There are no constraints, only possibilities.
It is not enough to imagine, also envision is needed.
Gear two: Concept visualization
How can a team get to bigger ideas faster?
Ideation and prototyping capture the creativity of an organization and help generate possibilities for creating user
value in a more imaginative, compelling, and concrete way.

Gear three: Strategic business design

Align broad concepts with future realities through strategy formulation and design of the business models itself.
We explore what it would take to make the big idea commercially viable.
Articulating the strategies and capabilities required
Identifications and design of interrelated activities
Net Gain of investment
This phase entails prototyping the business model to integrate the parts and assess the evolved activity system as a
whole.
It is critical to: identify which strategies will drive success, to prioritize which activities and organization must
undertake to deliver those strategies, and to define the relationship of those parts strategically, operationally and
economically.

A tool to integrate strategy is the Activity System and bring a concept to life.
Requires to translate and idea into a strategy for competitive advantage
Activity system: a complex network of interrelated strategies and tactics that redefine the game rules of an industry.

This represents the core strategies driving a company to success, including the equities and established capabilities
from which the products are built.
Final step to strategic business design is integrating new concepts back into the current operating model.
Prototyping
Constant assessment of user value
Formulate a strategy for a new level of innovation and competitive advantage
It is possible to design new models that symbiotically create value for the market and the enterprise
In here MINDSET MATTERS
MINDSET MATTERS
The make of break ingredient is the mindset of individuals on the team: