Developing Innovative OrganizationsA teaser

Cercle des investisseurs, November 20, 2012

Prof. B. Gailly

INNOVATION IN WONDERLAND

Innovation is about creativity

Innovation is about R&D

Innovation is good for you

MYTH N°1: INNOVATION = CREATIVITY

MUCH MORE THAN GENERATING IDEAS

“Genius is 1% inspiration and 99% perspiration.”

Thomas A. Edison

“Operational excellence is the crucial part of innovation”

Jeff Immelt, GE Chairman

Innovation

CHANGE

NEWNESS

MYTH N°2: BETTER INNOVATION = MORE R&DCross-industry analysis

R2 = 0.0079

R&D as % of sales, 1999

Sal

es g

row

th 1

999-

2004

, %

“There is no discernible statistical relationship

between R&D spending levels and nearly all measures of business

success”Booz Allen Hamilton

“Higher R&D spending does not ensure better performance in terms of growth, profitability or shareholder returns” (European Commission)

R2 = 0.0079

IDENTIFYING OPPORTUNITIES

Accidents Routines

Environment

Markets Technologies

Question, observe, experiment, network

STRATEGY IS CHOOSING WHAT NOT TO DO

3000 IDEAS

100 PROJECTS

4 LAUNCHESONE

JACKPOT

Only one in 6 million high tech business ideas ends up with an IPO Stanford Technology Ventures 2006

MYTH N°3: INNOVATION IS GOOD FOR YOUGive me more time to innovate

“[…] Apple is a brutal and unforgiving place, where accountability is strictly enforced, decision are swift, and communication is articulated clearly from the top. …[Jobs] is a corporate dictator who makes every critical decisions”

Fortune, May 23, 2011, p. 45

EVEN DINOSAURS DIE

THE AMBIDEXTROUS ORGANIZATION

MANAGEMENT (MARS)

Centralization

Efficiency

Data

Reliability

Planning et control

Jobs

Profits

THE MACHINE

INNOVATION (VENUS)

Complexity

Revolutions

Perceptions

Dynamism

Experimentation

People

Success rate

THE LIVING BODY

BREEDING ENTREPRENEURS Managerial levers to create the right context

What’s in for me?

What do others around think?

Is it feasible here?

Diagnosis Potential factors/levers

• Necessity• Perception of risk (e.g. vs. safety)•Awareness and sense of urgency• Recruitment and selection•…• Tolerance for failure/mistakes• Support for risk taking and change• Recruitment, promotion and evaluation• Celebration of success• …

• Skills and training, access to knowledge• Access to resources, deployment• Stress and stretch, collaboration, self-esteem• Team compositions and assignments•…

Resources Regional and global environment

INNOVATION STRATEGY

Corporate purpose

WHY DO YOU INNOVATE?

Which are my Sources of Competitive Advantages?

What are the Key Success Factors in my

environment?

BUILD YOUR CAPABILITIES

IN A NUTSHELL

Managing innovation is about managing change.

More R&D does not necessarily lead to better innovation

Innovation is a means, not an end per se

Innovation is about entrepreneurship

Managing innovation means developing the capabilities to identify, prioritize and implement new opportunities, in line with your strategy

Innovation champions are made, not born. You can all learn to become one

Executive program in innovation management

Vendredi de l’innovation

Boost your Innovation Potential

www.www. .be.be

Innovation Management

Innovation Champions

Meet our experts

Developing Innovative OrganizationsA teaser

Cercle des investisseurs, November 20, 2012

Prof. B. Gailly