NurturingInnovation Culture
Eric Ma, Acting CEO,
Hong Kong – Shenzhen Innovation and
Technology Park Limited
17 April 2018
4
- Innotech Forum on Geotechnology
The Most Innovative Companies of 2018
5
Siemens Unilever BASF Expedia Johnson&
Johnson
JPMorgan
Chase
Bayer Dow
Chemical
AT&T Allianz
Intel NTT
Docomo
Daimler AXA Adidas BMW Nissan Pfizer Time
Warner
Renault
3M SAP Dupont
InterConti
nental
Hotels Grp
Disney Huawei Procter &
Gamble
Verizon Philips Nestlé
1 2 3 4 5 6 7 8 9 10
11 12 13 14 15 16 17 18 19 20
21 22 23 24 25 26 27 28 29 30
31 32 33 34 35 36 37 38 39 40
41 42 43 44 45 46 47 48 49 50
Source: 2017 BCG Global Innovation Survey. 1 Includes Nokia. 5. Includes all Samsung business groups. 33. Includes Mercedes-Benz
What do they have in common?
We participate only in markets where we can make a significant
contribution.
We believe in saying no to thousands of projects so that we can really
focus on the few that are truly important and meaningful to us.
We believe in deep collaboration and cross-pollination of our
groups, which allow us to innovate in a way that others cannot.
We don’t settle for anything less than excellence in every
group in the company, and we have the self-honesty to admit when
we’re wrong and courage to change.
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Apple: Passion, Ambition, Focus, Excellence
Source: Apple’s Core Values, Apple Inc. 2012
Do what you love
Put a dent in the universe
Creating is connecting things
Say no to 1,000 things
Create “insanely great” experiences
Master the message
Sell dreams, not products
Source: The 7 Innovation Secrets of Steve Jobs, Forbes 2014
We believe that we’re on the face of the Earth
to make great products.
We believe in the simple, not the complex.
We believe that we need to own and control
the primary technologies behind the
products we make.
Google: Empowering employees, Get out-of-the box
7
The story of innovation has not changed. It has always been a
small team of people who have a new idea, typically not
understood by people around them and their executives.
Eric Schmidt, Board Member (former Chairman), Alphabet Inc.
Source: Creating a Culture of Innovation, Eight ideas that work at Google, G Suite; Google’s Secrets of Innovation: Empowering its Employees, Forbes 2013
Think 10X
70% dedicated to
core business
20% related
to core
business
10% unrelated to
core business
Encourage
new ideas and
big dreams
Hire the right people
Crowd source–
many channels
Listen to user feedback
Innovation culture is crucial to achieving strong financial performance
8Source: Strategy& Global Innovation 1000, Why
Culture is Key, 2011
9% 44%
27% 20%
Innovation Strategy and Cultural Alignment Matrix
LOW
LOW ALIGNMENT
HIGH ALIGNMENT
MODERATE ALIGNMENT
MODERATE ALIGNMENT
Companies that outperform
on growth in both profits
and enterprise value
Alignment of Business Strategyto innovation Strategy HIGH
Cu
ltu
ral S
up
po
rt fo
r in
no
va
tio
n
LO
WH
IGH
Building innovation culture involves both behavior and value changes
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EXPLICIT
IMPLICIT
CORE VALUES
BEHAVIORS
ATTITUDES
BELIEFS
Culture as the “software of the
mind… provides a guide for
humans on how to think and
behave”
Geert Hofstede
The Cultural Iceberg
Best practices to create a culture of innovation
1. Create a safe space for innovation
Manage innovation
projects as separate
businesses
� Dedicated team, dedicated
resources
� Different performance
measures
� Artistic workplace to
inspire creativity
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Best Practices for Leading via Innovation, Harvard Business Review 2012 https://hbr.org/2012/08/best-practices-for-leading-via
Mature
business
Growth
business
Emerging
business
*Adapted from The Alchemy of Growth, by Baghai, Coley and White (1999)
Innovation and Business Growth, William R Kerr, Harvard University
Measures � Profit
� ROIC
� Costs
� Productivity
� High revenue growth
� Market share growth
� New customers
acquisitions
� Profit
� Project-based milestones
� Use experiments to reduce
uncertainty
� Involve customers,
suppliers, partners
IBM’s Horizons Model to classify innovations*
Best practices to create a culture of innovation
2. Enable organizational agility
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The eight essentials of innovation, McKinsey & Company 2018, https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/the-eight-essentials-of-innovation
Best Practices for Leading via Innovation, Harvard Business Review 2012 https://hbr.org/2012/08/best-practices-for-leading-via
• Bypass unnecessary early approvals
• Test ideas with customers early in the process
Process
• Cross-functional Project team
• Innovation project’s success above success of individual
functions
Organisation
• Channels to propose innovative ideas to Top
Management
• Spare time for innovative activities
Talent
Best practices to create a culture of innovation
3. Broaden perspectives
Co-create with ecosystem partners
� Source innovative ideas from your employees,
thought leaders, customers, suppliers, technology
and business partners
� Recognize the value of different parties and
incentivize them
� Effective IT infrastructure to support collaboration
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Best Practices for Leading via Innovation, Harvard Business Review 2012 https://hbr.org/2012/08/best-practices-for-leading-via
Best practices to create a culture of innovation
4. Celebrate success and learn from setbacks
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Best Practices for Leading via Innovation, Harvard Business Review 2012 https://hbr.org/2012/08/best-practices-for-leading-via
Government should promote innovation culture across the organisation
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Open minded to new ideas
Collaborate with the industry to foster new ideas & technologies
Empower officers to exercise their discretion
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Clients should have the vision and courage to drive innovation
Prioritize technology factor in procurement
Take risk and tolerate failure in innovation initiatives
“Failure is an option here.
If things are not failing,
your are not innovating enough.”
Elon MuskFounder, CEO and lead designer, SpaceX
Co-founder, CEO and product architect of TEsla
Co-founder and CEO, Eeuralink
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Thank You
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