Innovation + Social Enterprise = Monopoly Profits

Jim Stikeleather

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Sources of profit and growth since the industrial revolution

Supply & Demand Chains

6 Process Improvement

Innovation

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Really?

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Innovation is the process that takes new ideas and implements them in a way that creates value by solving unmet needs.

New ideas + Forward thinking + Feasible + Viable + Valuable

Not a marketing term

Not invention

Products andservices

Business model

Processesmodel Operations

DevelopmentSales & Marketing

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With Innovation Plan

Without Innovation Plan Business model and process

Pro

du

cts

& S

erv

ice

sNew

Nearto

existing

NewNear to existing

Breakthrough Disruptive change

BreakthroughIncrementalSustaining

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First you think about the future

IDEATION

INTERNAL RESOURCES

IDEATION

EXTERNAL RESOURCES

DRAFT NEW PRODUCT

CONCEPTS

NARROW CONCEPTS

UNDER

CONSIDERATION

OUTLINE FEATURES/

BENEFITS

EXPOSE TO

TARGET

CUSTOMERS

(QUALITATIVE)

KILL

CONTINUE

REFINE

ESTABLISH

SUCCESS

CRITERIA

KILL

TEST MARKET

(NEW PRODUCT

INCUBATOR)

EXECUTIVE

MANAGEMEN

T

REVIEW

(Investment

Committee)

POST

TEST MARKET

EVALUATION

DESIGN,

DEVELOP &

PILOT

(Project

Launched)

FOR

M

TEA

M

DEFINE THE

PROBLEM/

OPPORTUNITY

EXPOSE TO TARGET

CUSTOMERS FOR

VOLUME ASSESSMENT

(QUANTITATIVE)

TEST

MARKETING

PREPARATION

HIGH LEVEL

REQUIRE-

MENTS

DEVELOP BUS

CASE/OBTAIN

APPROVAL TO

PROCEED

(Mgt Review)

KILL

CONTINUE

REFINE

FINAL

ROLLOUT

PLAN

FINAL

TIMELINE

WAR

GAMES

EXECUTIVE

GROUP

REVIEW

TRAINING

KILL

ROLL-

OUT

EVALUATION

AND

MEASUREMENT

PLAN

DEVELOPMENT

AND

INITIAL TIME LINE

(Proj Request/Sizing)

TURN OVER

TO PRODUCT

MANAGEMENT

How far back depends on feedback received

May require refinement of business case and financials

Some, or all of these stages may not apply to smaller efforts, or those with low execution risk/low capital

investment For large projects, or those requiring post-pilot review and approval, these stages will apply (e.g.

Investment Committee level projects).

Project Release Management Flow Begins (see next page)

Project Lifecycle

Project Lifecycle

START

Start Project

End Project

Convergent Thinking Divergent ThinkingAnalytic / RationalQuantitative / SequentialConstraint-driven / ObjectiveSpecific details

Creative / IntuitiveQualitative / SubjectivePossibilities / HolisticConceptual abstractions

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Then you organize your thoughts

IP, patents

Insight

StrategicPlanning

Frameworks

Innovation for market challenges

Innovation for customer & operational challenges

Relative innovation

Value challenges

Foresight

Scenarios

Themes

Signals, trends

ReferenceArchitectures

Outcomes andMetrics

R&D

Standards, laws

Invest ExecutePlan ofinvestigation

Continualimprovement

Plan of intent

Plan of record

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Right People

Common Language

Leadership Role

Modeling

Right Rewards

Incentives

Createa cultureof

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Innovationscorecard

The right people / innovators DNA:• Don’t quite fit the establishment• Outsider• Questioning• Networking• Observing• Experimenting

Common language

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Meet people’s needs

Teach/support creativity

Nurture passion

Make the work matter

Provide the time

Renew, reflect, recharge

Actively participate

Engaged review

Shape context

Break processes

Available

Leadershiprole modeling

Appropriate rewards and incentives

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Then you make things happen

(Socialization, Externalization, Combination and Internalization)

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Execution: a storm is coming…

Enterprise 2.0

Management 2.0

Capitalism 2.0

Economics 2.0

IT 2.0

New game, new playing field, new rules, new players…Means innovation, flexibility, agility, and more…

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Welcome to the serendipity economy(or the world wide jam session)

Image courtesy of Yoan Blanc - http://www.flickr.com/photos/greut/502095764/ http://danielwrasmus.com/default.aspx

The process of creation is distinct from value realization

Value realization is displaced in time from the act that initiated the value

The measure of value requires external validation

Value is not fixed and cannot be forecasted

Looking at a network in the present cannot anticipate either its potential for value nor any actual value it may produce

Serendipity may enter at any point in the value web, and it may change the configuration of the value web at any time

http://sixdegrees.hu/last.fm/

http://www.medienkunstnetz.de/exhibitions/serendipity/

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Consilience, complexity and emergence…

Cynefin Frameworkhttp://en.wikipedia.org/wiki/Cynefin

http://www.youtube.com/watch?v=N7oz366X0-8 http://www.youtube.com/watch?NR=1&v=NugRZGDbPFU&feature=endscreen

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Collaboration and Co-creation: Sur/PetitionCustomers, staff, partners, suppliers, competitors

Sur/Petition – Moving Beyond Competition

Competition, with its focus on what others are

doing, is only the baseline for survival.

“Sur/petition” focuses on value creation, going

beyond traditional strategic competition to exploit

the vast potential of “integrated values” that

surround the purchase and use of products and

services.

de Bono, Edward, Sur/petition, Harper Collins,

London

http://www.digital-ecosystems.org/book/2006-4156_PROOF-DCS.pdf

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People – Humanities greatest resourceManagement – Humanities greatest invention

Create Customers, Lower

Transaction Costs, Overcome

Economic Friction

Planning to Preparation

Directing to Mentoring

Staffing to Engaging

Controlling to Framing

Division of Labor to Self Selection

Unity of Command to Emergence of Direction

Scalar Chain of Command to Dynamic Leadership

Span of Control to Self Organization

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The Workforce New and Old– Not what it used to be….

http://www.theimaginationage.net/2010/01/smarter-work-data-visualizations.html

http://www.youtube.com/watch?v=u6XAPnuFjJc

http://www.youtube.com/watch?src_vid=dk8UJ-JWg-o&feature=iv&annotation_id=annotation_593316&v=XCH4FrnLlls

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http://www.zdnet.com/blog/hinchcliffe/the-state-of-enterprise-20/143

http://www.boostzone.fr/en/the-fractal-nature-of-entreprise-2-0/

The fractal organization and Enterprise 2.0

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Necessary Condition for Success:The Socially Enabled Enterprise

http://moogsoft.wordpress.com

http://blog.thecustomerframework.com/?Tag=socially+enabled+business

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Thank you.

Stike_Stikeleather@dell.com

http://www.managementexchange.com/users/jim-stikeleather

Twitter: @stikeyoda

http://www.amazon.com/Business-Innovation-Cloud-Executing-Computing/dp/0929652185