motorola presentation latest 28 apr 11
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NUBS, INNOVATION MANAGEMENT 2011
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NUBS, 2011 - 2 -
Rubaneswaran
Thevasenabathy
(004229)
Manimakudom
Karuppiah
(008371)
NUBS, INNOVATION MANAGEMENT 2011
MOTOROLA
INNOVATION PERFORMANCE
Jasminka
Grgas(008734)
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NUBS, 2011
AGENDA
- 3 -
16,17,18
15
14
13
10,11,12
9
5 - 8
19,20
Introduction and Legacy
Innovative Organization
Strategy
Linkages
Innovation Audit
Learning
Processes
Recommendation & Conclusion
NUBS, INNOVATION MANAGEMENT 2011
5 - 8 Mission & Vision Statement
4
5,6,7,8
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10,11,12,13
14
15
16
17,18,19
20,21
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MISSION STATEMENT
We are a global communications leader powered by a
and an unceasing commitment to advance the way
the world connects. Our communication solutions allow
people, businesses and governments to be more connected
and more mobile.
VISION
Our history is rich. Our future is dynamic. We are Motorola
and the is what drives us."
NUBS, INNOVATION MANAGEMENT 2011
Source: http://www.company-statements -slogans.info/list-of-
companies-m/motorola.htm
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INTRODUCTION
Founded in 1928 by Galvin brothers
Founding company : Galvin Manufacturing Corporation in Chicago
Listed in NYSE in 1946
Fortune 500 company listing.
Rev USD 22,063m (2010)
Employees: 60,000
Own approximately 24,500 patents and patent applications, worldwide.
Strong legacy in innovation
25000 Motorola scientist and engineers
NUBS, INNOVATION MANAGEMENT 20115
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MOTOROLA LEGACY
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1920s 1930s 1940s 1950s 1960s 1970s 1980s 1990s 2000s 2010s
Founding
of
Company
Sep 1928
First
product
launched
Nov 1928Motorola
brand
introduced
Jan 1930
TV and radio sales
contribute 70%
sales of revenue
1954
NUBS, INNOVATION MANAGEMENT 2011
INNOVATION PERFORMANCE OVER 80 YEARS
Provided vital
communication
tool in WWII1940
Public stock
offering
May 1943
Stylized MMotorola logo
Jun 1955
First words
from the moon
Jul 1969
Invented global
standard six
sigma quality
process
1986
Merger with
General
Investment
Corporation
2000
Motorola Inc.
splits intotwo and
streamlined
business
operations
2011
Awarded National
Medal of Technology,
thehighesthonour for
technological
innovation2004
Listed in NYSE
May 1946
First
International
subsidiary
1952
Motorola RAZR
sold 120m units
and captured
second spot
2005
Source: http://www.motorolasolutions.com/US-
EN/About/Company+Overview/History/Timeline#2000
7
Introduced
industry
standard for
colour TV
picture tube
1947
Acquisition of
Symbol
Technologies Inc.
2007
Timeline
First National
advertising
campaign
1936MOTOROL
AS
JOURNEY
Sold TVbusiness to
Panasonic
Jul 1969
Motorola
Foundation
1953
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HISTORY OF ENTERPRISE INNOVATION
Source: http://www.motorolasolutions.com/US-
EN/About/Company+Overview/History/Timeline#2000
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INNOVATION AUDITcompleted by external auditing team
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0
1
2
3
4
5
6
7
Strategy = 5.56
Innovative
organization =
5.87
Processes = 5.5Linkages = 6.0
Learning = 5.5
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Rothwells Five Generations* analysis Motorola
Generation Key Features* Products
First/second 1950s-mid 60s
Simple linear models Technology push
Innovation process transformation
or role of market place not priority
1943 First FM portable two way radio 1969 First words from the moon replayed by Motorola
Transponder
Second
Mid 60s-early 70s
Market pull/need pull
Growth & diversification
Technological incremental danger
1970 First wireless data system
Third
Early 70s-mid 80s
Coupling model
Consolidation and rationalization Project execution factors &
corporate level factors
1978 First trunked radio system
1980 First handheld laser scanner 1983 First portable cellular phone - DynaTAC
Fourth
Early 80s-mid 90s
Parallel model
Manufacturing strategies, global
strategy
Integrated innovation process
1992 First operational project 25 system, first commercial TETRA
contract
Fifth
Mid 90s +
Systems integration
Time based strategy, focus
on quality/non-price factors
Lean innovation
2000 First 700 MHz public safety wide band high speed data field
trial
2001 First IP based two way wide area system
2007 First ISSI multivendor demo (interoperability)
2008 Industry leading subscriber designs: APX, TETRA, ATEX and
Covert
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ANALYSIS - ROTHWELL
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BLUE OCEAN STRATEGY
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Blue Ocean represents all potential markets which do not exist and must be created
defined by W. Chan Kim and Renee Mauborge
Create Uncontested Market Space
Make Competition Irrelevant
Create and Capture New Market
Break the value/cost trade off
Handie-Talkie Two Way Radio
1928
Atrix 4G Smart Phone2011
Motorazr
2004
IDEN i1000plus Handset
1999
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CORE COMPENTENCIESThe concept of core competency originated as a resource-based approach to
corporate strategy; the concept was first introduced by C.K. Prahalad and GaryHamel. The Core Competence of the Corporation (1990), they describe core
competence as something that a firm can do well that meets three conditions:
1. It provides consumer benefits;
2. It is not easy for competitors to imitate;
3. It can be leveraged widely to many products and markets.
MOTOROLA CORE COMPENTENCIES
People - High level of innovation culture and history of success
Network Integrated network of suppliers and customers worldwide
Technology High amount of R&D investment and patents
12
Source: http://sbinfocanada.about.com/od/management
/g/corecompetence.htm
http://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/management -
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STRATEGIZING INNOVATION
NUBS, INNOVATION MANAGEMENT 2011
COST
LEADERSHIP
FOCUS
DIFFERENTIAL
CUSTOMERDRIVEN
INWARDEMPLOYEE
DRIVEN
OUTWARDEMPLOYEE
DRIVEN
TECHNOLOGYDRIVEN
Porters Strategy combined with
generic innovation strategies to
produce Motorola Innovation
Strategy
Differential + Technology Driven
Strategy
PORTERSSTRATEGY
INNOVATION
STRATEGY
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Source: http://www.cogproject.org/strateg-innovat-mngmnt.html
http://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/management -
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LEARNINGINNOVATIVE TRAINING AT MOTOROLA
Helped employees to achieve a certain
level of expertise.
Duration of 1987 1997, Motorola saved
their overall cost due to effective training
programs by USD 10 billion.
Employee production up by 139%
Globally recognized as the creators of Six
Sigma reducing defect and increasing
efficiency
13 NUBS, INNOVATION MANAGEMENT 2011
Source: http://www.slideshare.net/ganeshramb/motorola-
university-presentation
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http://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/managementhttp://sbinfocanada.about.com/od/management -
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LINKAGES EXTENDED ENTERPRISE
CORE
COMPET.
StrategicAlliances
Customer
Partnership/Ventures
Outsourcing
Virtual
Integration
Datamax ONeil, IBM, Microsoft,
Oracle, SAP, Zebra
MSCV 20 portfolio co.
(VIVOtech, AirClick, Camero)
Notable exits
MMCV 18 portfolio co.,
(AMIMON, Black Arrow,
Tune Wiki)
2003 10 yr global infrastructure
outsourcing pact w/Computer Science
Corporation
2008 to 50% handset output (ODM,
Compal Communications, Chi Mei
Communications System)
Vertical integration ( Auburn
Hills, Saturn Electronics andEngineering)
Sources:
www.1000ventures.com www.securitydirectornews.com
www.technewsworld.com
www.fiercedeveloper.com
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http://www.1000ventures.com/http://www.securitydirectornews.com/http://www.technewsworld.com/http://www.technewsworld.com/http://www.securitydirectornews.com/http://www.1000ventures.com/ -
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PROCESSES VIRTUAL INTERGRATION
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Sanjay JHA, Chairman and CEO
Dan Moloney, President
Marshal Brown, VP Chief of Staff
John Bucher, Corporate VP Chief
Strategic Officer
Scott Crum, Senior Vice President,
Chief People Officer Mike Flemming, Senior VP Chief
Supply Chain Officer
Greg Brown, Director and Chairman
and CEO
Michael Annes, Corporate VP
Bruce Brada, Senior VP General
Manager
Eduardo Courado, Chief Marketing
Officer
Michele Aguilar Carlin, Senior VP HR
Edward J. Fitzpatric, CFO
NUBS, INNOVATION MANAGEMENT 2011
INNOVATIVE ORGANIZATION
Source: http://www.motorola.com/staticfiles/Consumers/CLP/MY-
EN/index_MY-EN.html
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http://www.motorola.com/staticfiles/Consumers/CLP/http://www.motorola.com/staticfiles/Consumers/CLP/http://www.motorola.com/staticfiles/Consumers/CLP/http://www.motorola.com/staticfiles/Consumers/CLP/http://www.motorola.com/staticfiles/Consumers/CLP/http://www.motorola.com/staticfiles/Consumers/CLP/http://www.motorola.com/staticfiles/Consumers/CLP/http://www.motorola.com/staticfiles/Consumers/CLP/http://www.motorola.com/staticfiles/Consumers/CLP/http://www.motorola.com/staticfiles/Consumers/CLP/ -
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HUMAN RESOURCES STRATEGY
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Source:http://mediacenter.motorola.com/Content/Detail.
aspx?ReleaseID=12028&NewsAreaID=2
18
Supportive of business strategy
Long term commitment to human capital development
Investing in employee development (MY invested ~ RM1,700.00/
employee on training and development, ~ 43 hrs/employee/year)
Learning and development global opportunities (Six Sigma)
Local universities and graduates (partnership projects with local
universities, Inter-School and Inter-Varsity Engineering Challenge (ISEC &
IVEC) organized by IIUM and the NRIC by University Sains Malaysia
(USM).
For excelling students - annual Motorola Gold & Scholarships Awards
(cash prizes and an internship program)
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DYNAMIC CAPABILITIES
PRODUCTDEVELOPMENT
Science basedtrajectory +,fast/standard track
New productdevelopment (R&D,ventures)
Emerging marketsdevelopment
Services
STRATEGIC DECISIONMAKING
CO-CEO structure
Board of Directors
Six Sigma -
improvement ofexisting processes orin designing a newproduct or processes(operations, design ormanufacturing )
ALLIANCING
Partnerships/Venturesin Motorola Mobilityand Motorola
Solutions Supplier diversity
(registration tool onwebsite + othermarketing strategies)
NUBS, INNOVATION MANAGEMENT 2011
Source: 2010 Annual Report, www.motorola.com
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RECOMMENDATIONMOTOROLA CONTINUE EVOLVING ON ENTERPRISE ROAD MAP
NUBS, INNOVATION MANAGEMENT 201120
Source: http://www.allbusiness.com
CUSTOMERS HUMAN CAPITAL INNOVATION/R&D
New Blue Oceaninitiatives andcontinuous upgrading
Consolidate product
lines
Continue streamliningorganizational structure
Continue with 6 Sigmaprocess improvementstrategies
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CONCLUSION
Continue to focus on:
Customers
Human Capital Innovation / R&D
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THANK YOU
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REFERENCES Rothwell, R., (1994) Towards the fifth generation innovation model, International Marketing Review, 11, 1,
7-15
Tidd, J., Bessant, J., (2005) Managing Innovation, www.wileyeurope.com/college/tidd Annual report 2010 - http://investors.motorolasolutions.com/secfiling.cfm?FilingID=1193125-11-39822
https://reader009.{domain}/reader009/html5/0504/5aebb04c01737/5aebb05c18526.jpg Afuah, A. (2003). Innovation management: strategies, implementation, and profits, Oxford University
Press, USA (2nd ed )
Barney, J. (1991). Firm Resources and Sustained Competitive Advantage, Journal of Management; Mar1991; Vol. 17, No. 1; p. 99-120.
http://www.fiercedeveloper.com/story/motorola-accelerate-outsourcing-efforts-2008/2007-12-18
http://mediacenter.motorola.com/Content/Detail.aspx?ReleaseID=12028&NewsAreaID=2 (HR)
http://www.hrmreport.com/article/Motorola-expands-candidate-network-with-Peopleclick-Authoria/
Image source wikepedia http://en.wikipedia.org/wiki/File:Motorola.svg
Motorola TOM/six sigma Thinking managers Total Quality: TQM, business process reengineering andsuccessful management
http://www.securitydirectornews.com/?p=article&id=sd201103voER4l
http://www.thinkingmanagers.com/management/total-quality.php
Rothwell, R., (1994) Towards the fifth generation innovation model, International Marketing Review, 11, 1,7-15
Tidd, J., Bessant, J., (2005) Managing Innovation, www.wileyeurope.com/college/tidd
http://www.tata.com/company/releases/inside.aspx?artid=i9lFYO4hjfw=NEOTEL
http://www.technewsworld.com/story/21114.html
http://www.wileyeurope.com/college/tiddhttp://investors.motorolasolutions.com/secfiling.cfm?FilingID=1193125-11-39822http://www.coolheads.com/egov/combined/topicmap/s145/img11.jpghttp://mediacenter.motorola.com/Content/Detail.aspx?ReleaseID=12028&NewsAreaID=2http://mediacenter.motorola.com/Content/Detail.aspx?ReleaseID=12028&NewsAreaID=2http://www.hrmreport.com/article/Motorola-expands-candidate-network-with-Peopleclick-Authoria/http://www.securitydirectornews.com/?p=article&id=sd201103voER4lhttp://www.thinkingmanagers.com/management/total-quality.phphttp://www.wileyeurope.com/college/tiddhttp://www.tata.com/company/releases/inside.aspx?artid=i9lFYO4hjfw=NEOTELhttp://www.technewsworld.com/story/21114.htmlhttp://www.technewsworld.com/story/21114.htmlhttp://www.tata.com/company/releases/inside.aspx?artid=i9lFYO4hjfw=NEOTELhttp://www.wileyeurope.com/college/tiddhttp://www.thinkingmanagers.com/management/total-quality.phphttp://www.thinkingmanagers.com/management/total-quality.phphttp://www.thinkingmanagers.com/management/total-quality.phphttp://www.securitydirectornews.com/?p=article&id=sd201103voER4lhttp://www.hrmreport.com/article/Motorola-expands-candidate-network-with-Peopleclick-Authoria/http://www.hrmreport.com/article/Motorola-expands-candidate-network-with-Peopleclick-Authoria/http://www.hrmreport.com/article/Motorola-expands-candidate-network-with-Peopleclick-Authoria/http://www.hrmreport.com/article/Motorola-expands-candidate-network-with-Peopleclick-Authoria/http://www.hrmreport.com/article/Motorola-expands-candidate-network-with-Peopleclick-Authoria/http://www.hrmreport.com/article/Motorola-expands-candidate-network-with-Peopleclick-Authoria/http://www.hrmreport.com/article/Motorola-expands-candidate-network-with-Peopleclick-Authoria/http://www.hrmreport.com/article/Motorola-expands-candidate-network-with-Peopleclick-Authoria/http://www.hrmreport.com/article/Motorola-expands-candidate-network-with-Peopleclick-Authoria/http://www.hrmreport.com/article/Motorola-expands-candidate-network-with-Peopleclick-Authoria/http://www.hrmreport.com/article/Motorola-expands-candidate-network-with-Peopleclick-Authoria/http://www.hrmreport.com/article/Motorola-expands-candidate-network-with-Peopleclick-Authoria/http://www.hrmreport.com/article/Motorola-expands-candidate-network-with-Peopleclick-Authoria/http://mediacenter.motorola.com/Content/Detail.aspx?ReleaseID=12028&NewsAreaID=2http://mediacenter.motorola.com/Content/Detail.aspx?ReleaseID=12028&NewsAreaID=2http://www.coolheads.com/egov/combined/topicmap/s145/img11.jpghttp://investors.motorolasolutions.com/secfiling.cfm?FilingID=1193125-11-39822http://investors.motorolasolutions.com/secfiling.cfm?FilingID=1193125-11-39822http://investors.motorolasolutions.com/secfiling.cfm?FilingID=1193125-11-39822http://investors.motorolasolutions.com/secfiling.cfm?FilingID=1193125-11-39822http://investors.motorolasolutions.com/secfiling.cfm?FilingID=1193125-11-39822http://www.wileyeurope.com/college/tidd -
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MOTOROLA INNOVATION AUDIT -
SCORES
1 5 2 7 3 6 4 7 5 5
6 5 7 6 8 5 9 6 10 7
11 7 12 6 13 5.5 14 7 15 7
16 5 17 5 18 6 19 5 20 5
21 5.5 22 7 23 5 24 6 25 5
26 6 27 5 28 5.5 29 5 30 4
31 5 32 5 33 6 34 6 35 5
36 6 37 6 38 5 39 6 40 6TOTAL: 44.5 47 44 48 44
: by 8 5.563 5.875 5.5 6 5.5
SCORE: 5.563 5.875 5.5 6 5.5
Strategy Processess Organization Linkages Learning
Source: Tidd, J., Managing Innovation, 601