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CROSS BORDER INNOVATION
Dr. Iris Berdrow
Innovation news: Maybach
June 25, 2013: "Sadly, luxury maker Maybach was recently closed down by Daimler, but its one-off prototype Exelero lives on in the dreams of deluxe auto fans as one of the most expensive concept cars ever made. The reported sale price to rapper Birdman: $8 million. Commissioned by Fulda Tyres to test wide tires, the Exelero has a 700-horsepower twin-turbo V-12 engine that does 0 to 60 mph in 4.4 seconds with a top speed of 218 mph."
The Maybach Exelero concept is a production commissioned by Fulda Tyres to test wide tires. The
700-horsepower engine powers a car that was modeled after luxury streamlined cars of the 1930s.
February 8, 2006 12:23 PM PSTPhoto by: Chicago Auto Show
INNOVATION TYPOLOGYFROM Doblin Group, Chicago
FINANCE
Bu
sin
ess
Mo
de
l
How you
make money
Ne
two
rks
and
A
llia
nce
s
How you join forces with other companies for mutual
benefit
PROCESSESE
nab
ling
P
roce
sse
s
How you support the company’s
core processes
and workers
Co
re
Pro
cess
es
How you create
and add value to
your offerings
OFFERINGS
Pro
duct
P
erf
orm
ance
How you design
your core offerings
Pro
duct
S
yste
mHow you
link and/or
provide a platform
for multiple products
Se
rvic
e
How you provide value to
customers beyond
and around
your products
DELIVERY
Ch
ann
el
How you get your offerings to market
Bra
nd
How you communicate your offerings
Cu
sto
me
r E
xpe
rien
ce
How your customers feel when
they interact
with your company
and its offerings
What is missing?
CONTEXT
Innovating where?
Domestic Cross-Border Global
STAKEHOLDER
Innovation for who?
Social Innovation
Environ-mental
Innovation
LIFE-CYCLE
What about the after life?
Reduce Reuse Recycle
LANGUAGE OF INNOVATION
Focus on processes and systems**:• Autonomous – can be
introduced without modifications to other components
• Systemic – requires significant modifications in other components
Focus on knowledge needed*:• Competence Enhancing –
improvement building on existing know-how
• Competence Destroying – shift in skills and knowledge base required
Focus on what is offered:• Invention, Radical,
Breakthrough• Optimization, Incremental,
Line Extension
*Tushman & Anderson, 1986** Teece 1996
INNOVATING LEARNING INNOVATION
Radical and Incremental Innovation
1-6
Disruptive InnovationsClayton M. Christensen
1. An innovation (or technology) that disrupts an existing market.
2. "Generally, disruptive innovations were technologically straightforward, consisting of off-the-shelf components put together in a product architecture that was often simpler than prior approaches. They offered less of what customers in established markets wanted and so could rarely be initially employed there. They offered a different package of attributes valued only in emerging markets remote from, and unimportant to, the mainstream.“
Christensen, Clayton M. (1997). The innovator's dilemma: when new technologies cause great firms to fail. Harvard Business Press.
For example…
EXAMPLES OF DISRUPTIVE TECHNOLOGIES (from Wikipedia)
Innovation Disrupted market Innovation Disrupted market
8 inch floppy disk drive 14 inch floppy disk drive Steamships Sailing ships
5.25 inch floppy disk drive 8 inch floppy disk drive Telephones Telegraphy
3.5 inch floppy disk drive 5.25 inch floppy disk drive Automobiles Rail transport
Downloadable Digital Media CDs, DVDs Private jet Supersonic transport
Hydraulic excavators Cable-operated excavators Plastic Metal, wood, glass etc
Mini steel mills vertically integrated mills Light-emitting diodes Light bulbs
Minicomputers Mainframes Digital synthesizer Electronic organ and piano
Personal computersMinicomputers, Workstations. Mobile Telephony Mobile Discount Operators
Desktop publishing Traditional publishing LCD CRT
Computer printers Offset printing Digital calculator Mechanical calculator
Digital photography Chemical photography UltrasoundRadiography (X-ray imaging)
High speed CMOS video sensors Photographic film Podcasting Broadcast Radio & TV
S-Curve for Performance
1-10
Disruptive technologies
initially appear at a lower performance level than that of
the existing technology.
INNOVATION AS A LEARNING PROCESS
The process of purposeful problem solving!
Innovation as a learning process Innovation is the creation of a solution to a
problem. Innovation requires knowledge. Learning is the process of acquiring and/or
creating knowledge.
INNOVATION PROCESS & IDEATION (Davila et al, 2006: p.125)
Generation of IdeasRadical
Innovation
IncrementalInnovation
Sel
ectio
n
E
xecu
tion
Cre
atio
nO
f V
alueGeneration
of Ideas
Generation of Ideas
Product, Service and/or
Process Innovation
Symptoms of learning disability
Disbelief in effectiveness of innovation Accidental rather than strategic execution of
innovation projects Focus solely on incremental innovation Lack of investment in innovation
Knowledge position
Innovation position
Product/MarketPosition
What innovation position can we execute given what we know?
What knowledge is needed to support our innovation position?
Given what we know what product/market position can we execute?
What do we need to know to execute our product/market position?
What innovation position should we pursue given our product/market position?
Given our innovation position, what product/market position make the most sense?
Knowledge, Learning & InnovationMcDonough, E., M.E.Zack, H.Lin & I. Berdrow. 2008. “Integrating Innovation Style and
Knowledge into Strategy. MIT Sloan Management Review, 50(1), pp.53-58.
Characteristics of learning(Davila et al, 2006: p.212)
Specific processes for learning are in place (e.g. post project reporting)
Systems view of the organization (double loop learning)
Shared vision of what is important to the organization
Flexibility and agility to change Proactive rather than reactive decisions Collaboration that maximizes creative tension and
minimizes destructive tension
How do organizations learn?(Davila et al, 2006)
Learning to act – Can we improve things we are already doing? Incremental improvement of current actions.
Learning to learn – how do we create, acquire, adapt and disseminate knowledge? Are we good at it? Questioning current actions and seeking new opportunities.
Where does knowledge reside?
Individuals – vision, experience, images, metaphors
Groups – shared meaning, language, conversation
Organizations – routines, systems, rules and procedures, artifacts
External – universities, government think tanks, consultants
Example of Innovation as Learning:RoboBees : Robotic insects make first controlled flight
Pursuit of Knowledge: “I want to create something the world has never seen before. It’s about the excitement of pushing the limits of what we think we can do, the limits of human ingenuity.” Kevin Y. Ma, a graduate student at SEAS
Innovation as Inspiration: Inspired by the biology of a fly, with submillimeter-scale anatomy and two wafer-thin wings that flap almost invisibly, 120 times per second, the tiny device not only represents the absolute cutting edge of micromanufacturing and control systems, but is an aspiration that has impelled innovation in these fields by dozens of researchers across Harvard for years.
Building the capability: “It’s really only because of this lab’s recent breakthroughs in manufacturing, materials, and design that we have even been able to try this.“
Innovation as problem solving: “We would get one component working, but when we moved onto the next, five new problems would arise. It was a moving target.”
Learning how to innovate: “We can now very rapidly build reliable prototypes” … the team has gone through 20 prototypes in just the past six months.
Extending what was learned: “Now that we’ve got this unique platform, there are dozens of tests that we’re starting to do, including more aggressive control maneuvers and landing,” says Wood.
Learning how to collaborate: “This work is a beautiful example of how bringing together scientists and engineers from multiple disciplines to carry out research inspired by nature and focused on translation can lead to major technical breakthroughs.”
