Page 1 Summit of the Future, May 2006 Mick Yates.

Summit of the Future, May 2006Mick Yates

connectivity &

modularity

sense & respond

directed evolution

©© Hasbro Parker Bros

o return on innovation investment ?

o organizational rules of engagement ?

o scientific convergence … … yet with a knowledge explosion … and coming ever faster ?

ebbs, flows and residual impact of business fads

Richard T. Pascale 1998

telecom

nanotechnology

materials science

computationcomputationbioinformaticsbioinformatics

molecular sciencemolecular science

quantum science

photonics

combinatorial chemistry

robotics

internet

proteomics

genomics

1. CUSTOMER CENTRICTY

return on innovation investment?

kenji kawakami

The microwave is essential for me!

I love baking on a Sunday afternoon

I love exotic and adventurous food

I have to stick to a budget

I care about the environment

“Our mission is to earn and grow the lifetime loyalty of our customers”

customer data

customer insight

customer programs

customer loyaltyenables

to build

to grow

SMART PRICING

3%4%

9%

8%

6%4%

4%5%

6%4%

7%

9%

2%

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

annual same store sales growth since 1993

2. NETWORKS

organizational rules of engagement?

Networks do not just replace current structures …

… they co-evolve with them

strong links - with family, work teams etc.

weak links- critical to finding new knowledge

some thoughts on making Networks work harder

1. Purpose

effective Networks have a clear business / organizational purpose which must be pre-defined

outputs must be both useful and measurable

2. Member identity

skills, knowledge, motivations, problems, geographic location, time linkages, goals and beliefs

demands data based understanding and communication

A Community of Practice is not a club - it has identity defined by a shared domain of interest and a shared competence

Members engage in joint activities and share information; relationships emerge to enable learning and creation of new knowledge

Members are practitioners - they develop a shared repertoire of resources, experiences, tools, and ways of addressing problems

after Etienne Wenger

3. Actionability

something new and innovative actually happens as a result of the Network’s existence …

… a corollary is that links in the Network must have practical value in real interactions

4. Searchability

to answer real world questions

informational … best Thai restaurants?

intellectual … learn from research?

actionable … better sales results?

relational … team works better?

judgmental … decide right actions?

contextual … balance risks?

“P&G has focused more on

supporting its existing big brands and

scaled back its corporate R&D

funding, seeking lower-risk

programs that will add steadily

to sales”

5. Network trustworthiness

depends on

- the nodal identity of an authority

- the actionability of the links

open systems

open development

Nonaka & Takeuchi“Hypertext Organization”

MAKE TACIT KNOWLEDGE EXPLICIT

1. Purpose

2. Member identity

3. Actionability

4. Searchability

5. Network trustworthiness

3. SENSE AND RESPOND

complex & emergent systems

scientific convergence … and knowledge explosion?

Capital One – 40,000 + offers per year

o specify a few simple ruleso rules are linear – outcomes aren’t –

experiment

o understanding present status criticalo determines next state

o demands continuous connectivityo information systems

o needs organizational empowerment

1. CUSTOMER CENTRICTY 2. NETWORKS

3. SENSE & RESPOND

connectivity &

modularity

sense & respond

directed evolution

Page 1 Summit of the Future, May 2006 Mick Yates.

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