experience center innovation governance model · 2018-10-08 · other examples: lockhead martin....
TRANSCRIPT
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Experience Center
Innovation governance model
For conference purpose only
September 2018
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Ever-increasing challenges to achieve growth goals
Stretch
Goals
M&A
Gap
Today Tomorrow
Innovation
EB
IT, R
ev
en
ue
Growth Goal
HardWork
Business Development
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Focus on breakthorugh innovations
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Once the direction is set, it is time to decide upon the optimal organizational structure for innovation.
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Cross
divisionalSiloed
Top Down
Bottom Up
There are typically seven designs:
1. Corporate Intent
2. Innovation labs
3. Skunk works
4. Business unit innovation
5. Practice driven innovation
6. Innovation for hire
7. C&D (Connect & Develop)
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1. Corporate intent.Unified vision driven by the CEO
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What they do:Define the innovation and
corporate intent
Strengths:Unified vision
Weaknesses:Requires strong leadership
and the right visionPotential for infighting and
territory battles
Example:
Apple
1. Formulate here
2. Execute as objectives
CEO
•Innovation Intent
Steve Jobs(Visionary)
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Other Examples: GE “Ecoimagination”,US Department of Defence “Own the Night”
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Innovation labs.Innovation through incubation and diffusion
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Example:Samsung Product Innovation Group
Strengths:Independent,
recognized (budget), and forward-
looking.
1. Develop concepts here
2. Sell concept here
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Corporate
Weaknesses:Politics with business
units (not shared objectives, credit,
relevance)Independence makes it difficult to reintegrate
into business.
What they do:Think tank for identifying
and developing new opportunities. Research,
needs finding, concept development.
Other Examples: Lego Concept Lab, and most major corporations
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Skunk works.Innovation through independent, informal initiatives
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Corporate
1. Bottom Up Invent, prototype and engineer here
2. Sell-in here
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Example: Google
Strengths:Commitment from
team owners
What they do:Independent invention
Weaknesses:Management sell-in (no
owner)Note: Google has made
sell-in an objective (formalized it)
Other Examples: Lockhead Martin
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Business unit innovation.Innovation driven by business unit interests
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Corporate
1. Understand here
2. Feed in here
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Example: Bosch
Strengths:Relevant for the
bottom line.
What they do:Forecasting, market
analysis, trend analysis, roadmaps relevant for
their division
Weaknesses:Vision narrowed by
business unit objectives - tend to more incremental innovations.
Common model in most siloed corporations.
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Practice driven innovation.Holistic practice-based, long-term innovation
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Corporate
1. Understand here
2. Diffuse to relevant units here intent
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Example:
Intel
Strengths:Decoupling short
term business unit objectives from long
term strategic thinking. Keeps
limitations of day to day business from
hampering long term vision.
What they do:Broad understanding of practice area (defined by
activities, people and environments rather than
products) - and using insights to objectives relevant business
units.
Weaknesses:More abstract - requires more
filtering and translation
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Innovation for hire.Semi independent R/D unit
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Parent Company1. Hire here
ExternalClients
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Example:
Xerox
Other Examples: Porsche Design, BMW Designworks
Strengths:Have own P/L and business
objectives, semi-independent.
What they do:Semi-independent, project-based initiatives working on a consultancy model.
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Weaknesses:Detached from the culture of parent company - may
feel or want to be more independent, making them
function more like a consultancy.
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C&D - Connect and Develop.Using networks to distribute innovation and increase hit rates
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Corporate
1. Find
here
2. Build here
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Example:
P&G
Other Examples: LEGO, Kraft
Strengths:Distributed, leveraged and an effective use of
internal resources.
What they do:What they do
Seek innovation opportunities
through a network (both open
and closed) of talented and
independent innovators
(small to medium sized
businesses). Objectives set by
corporate group; use a
competition model.
Weaknesses:Coordination of resources,
need to find and build the
right network, trust based
and informal relationships
may be less reliable.
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Contact
Ján Uriga
PwC Experience Center Leader
+420 731 132 666