Innovation in Organizations

The Context of Innovation: Lecture 1

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Week 1 Lecture 1 Leading Strategic Innovation in Organizations

David A. Owens, PhD

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Innovation = What we do to them Change = What they do to us

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Think Outside the Box!?


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Not Too Edgy Not Too Difficult

Not Too Risky

What a PUNY idea!

Not To

o Weird

Thinking Outside the Box?

Heres what else

happens


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Why Does Innovation Fail ?


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Is the Theory of Innovation

Management of any help?


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How do we innovate successfully?

The individual must enlarge their toolset

The groups culture must support risk

The organization must structure itself

The market must be see utility and value

The society must accept as legitimate

The technology must be developed

Why Innovation Fails? An individual doesnt enlarge his or her toolset - he or she is not challenged to think different

A groups culture doesnt support risk - new ideas are killed by group members behaviors

An organization isnt structured to support innovation - innovation is not considered strategic

A market is not offered utility and value - the industry fails to recognize an opportunity

A society doesnt accept an innovation as legitimate - it does not support values and aspirations

A technology isnt fully developed - the innovation isnt quite ready for prime time


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Healthy Living?

100% Pure Canola Oil Naturally Fat Free


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Nissan Tama Electric Car (1947)

35 km/h top speed with a range of 96 km


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Innovation Constraints

Loc

ation

Indepe

ndence

Access to Energy

Fast Food

Menu

Health Code Less Restrictive

Locatio

n

Monop

olies

Why did it work?

Health Codes

Handheld Innovation

Huma

n-Augm

ented

Softwa

re

Device Cost Constraints

Touch-Screen Resolution

Processor Speed

Reduced Processor

Cost

Softwa

re

Comp

lexity


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Performing Arts

Innovation

Intellec

tual Pr

operty

Rights

Agree

ments

Venue Size

Programming Legitimacy

High Definition

Video

Venue Partnerships

Union

Contra

cts

Implementation Constraints

! Hire work force of 430 People ! Acquire 6,500,000 square feet of woven polypropylene ! Sew fabric in 79 different patterns ! Add flotation strip in every seam ! Accordion fold for installation ! Install 610 custom anchors into limestone in the Bay ! Install earth anchors (hidden) near the bases of trees ! Tow floating rafts of fabric 20 x 500 to each island ! Spend 120 days and nights monitoring in boats ! Remove forty tons of garbage ! Consult with:

! Marine biologist ! Mammal expert ! Ornithologist ! Construction engineers


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Get the following permits ! the Governor of Florida and the Cabinet; ! the Dade County Commission; ! the Department of Environmental Regulation; ! the City of Miami Commission; ! the City of North Miami; ! the Village of Miami Shores; ! the U.S. Army Corps of Engineers; ! the Dade County Department of Environmental

Resources Management

Supportive Group Capable Execution

Favorable Regulation

Funct

ioning

Techno

logy

More Generally

Success!


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Natural Soil Conditioner?

Relaxing the Constraints on Innovation

Helpful Partners (Group)

Purchase & Ship Cost Effectively (Industry)

Sterilize & Mat

(Technology)

Recycled Human Hair Constraints

Yuck F

actor!

(Socie

tal Co

nstrain

ts)


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SmartGrow is a patented manufactured product made of 100% natural, biodegradable hair fiber. SmartGrow comes as a circular pad in three sizes (6-inch, 10-inch,

14-inch), and 4-foot by 25-foot rolls.

The Sow-n-Gro Innovation Strategy?

Otter Mat for Oil-Spill Cleanup


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Individ

ual

Const

raints

Relaxing the Constraints on Innovation

Societal Constraints

Organizational Constraints

Group

Constraints

Generalized Constraints


X

Outside the Box!??

Individ

ual

Const

raints

Why Do We Need to Know Our Innovation Constraints?

Restructure Organization

Change Ideation Process

Meaningful Solutions


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The Truth About Innovation is that

! individuals must enlarge their toolsets

! groups culture must support risk

! organization must have a strategy

! market must see utility and value

! society must accept as legitimate

! technology must be developed

Why Constraints?

!Constraints are something we can focus on;

!Constraints are something we can agree on;

!Constraints are something we can measure;

!Constraints are exactly what drives adoption.


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Why is Innovation Hard?

!We dont find a good problem !We dont generate good ideas !We dont choose the best idea

!We dont anticipate the

innovation constraints!

Individ

ual

Const

raints

Technical Constraints

Group

Constraints

Innovation Constraints



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Individual Constraints

Individ

ual

Group

Technology


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What we know to be true:

! Individuals must enlarge their toolsets

! The groups culture must support risk

! The organization must be structured

! The market must see utility and value

! The society must accept as legitimate

! The technology must be developed


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Constraints Diagnostic Survey

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1) INDIVIDUAL INNOVATION CONSTRAINTS

Read each statement and consider how closely it describes your behavior. Record your assessment by putting a checkmark into the box that indicates how accurately it describes your situation.

Q# Rating Diagnostic Statement

1 Per 1! 2! 3! I know what the solution will look like beforehand, even for new problems 2 Per 1! 2! 3! I don't spend time looking at problems from different angles early in a project 3 Per 1! 2! 3! I gather all the information I use sitting at my desk

4 Int 1! 2! 3! I don't ask why, I just solve the problem I am assigned 5 Int 1! 2! 3! I use the same process for solving most kinds of problems 6 Int 1! 2! 3! I generate a few ideas I think will work and them move on

7 Exp 1! 2! 3! I never present my ideas with drawing, charts or props 8 Exp 1! 2! 3! In my field of work, there is only one right way to say things 9 Exp 1! 2! 3! People have trouble understanding my ideas

1 = Highly Descriptive, this occurs often or on a routine basis 2 = Moderately Descriptive, this occurs sometimes or occasionally

3 = Not Descriptive, this occurs rarely or not at all

Individual Level Diagnostic (What Stops Ideation?)

Group Constraints

Individ

ual

Group

Technology


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2) GROUP INNOVATION CONSTRAINTS Read each statement and consider how closely it describes the situation in your current working group. Think of your group as consisting of the people you interact with on a weekly basis, and who have an impact on the groups work. Record your assessment by putting a checkmark into the box that indicates how accurately it describes your situation.


1 Emo 1! 2! 3! Members criticize and point out the weakness of ideas during brainstorms 2 Emo 1! 2! 3! Members are afraid to admit when theyve made a mistake 3 Emo 1! 2! 3! Managers ideas are considered better than those of everyone else 4 Cul 1! 2! 3! Members are chosen because of relationships and not training or knowledge 5 Cul 1! 2! 3! Members avoid considering ideas that may disrupt operations in the short term 6 Cul 1! 2! 3! Members are openly critical or dismissive of new ideas or approaches

7 Env 1! 2! 3! Meeting space configuration is difficult or impossible to change by the group 8 Env 1! 2! 3! Our group space does not facilitate collaboration or information sharing 9 Env 1! 2! 3! Members dont capture and review the teams discussions and insights 10 Pro 1! 2! 3! Members are confused about the current state or phase of a project 11 Pro 1! 2! 3! Members cannot articulate the innovation-solving process we use 12 Pro 1! 2! 3! Members do not consult the process guidelines once a project is under way



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Individ

ual

Group

Technology


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3) ORGANIZATION INNOVATION CONSTRAINTS Read each statement and consider how closely it describes the situation in your organization. Think of your organization as consisting of those people and groups who identify as employees. Record your assessment by putting a checkmark into the box that indicates how accurately it describes your situation.


1 Stru 1! 2! 3! Our people dont know the strategy 2 Stru 1! 2! 3! We dont require everyone to participate in innovation 3 Stru 1! 2! 3! Our leaders prefer that we keep risk to an absolute minimum.

4 Stgy 1! 2! 3! We avoid positive changes if they risk short-term inefficiencies 5 Stgy 1! 2! 3! We are the wrong size to effectively try meaningful new ideas 6 Stgy 1! 2! 3! We do not have a mechanism for authorizing important experiments

7 Res 1! 2! 3! We do not to try ideas because we lack the financial capital or fear risk 8 Res 1! 2! 3! We marginalize those groups working on our new products and services 9 Res 1! 2! 3! Our operations work well, improvements to them are discouraged



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Group

Constraints

Individ

ual

Const

raints

Internal Innovation Constraints


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Group

Constraints

Individ

ual

Const

raints

External Innovation Constraints

Industry Constraints

Individ

ual

Group

Technology


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4) INDUSTRY / SECTOR INNOVATION CONSTRAINTS Read each statement and consider how closely it describes the situation in your industry. Think of your industry as consisting of the set of firms and suppliers attempting to meet the same market needs that you currently address. Record your assessment by putting a checkmark into the box that indicates how accurately it describes your situation.

Q# Ratin g Diagnostic Statement

1 Riv 1! 2! 3! We are facing a decreasing market for our core products. 2 Riv 1! 2! 3! We do not give detailed attention to our competitors on a regular basis. 3 Riv 1! 2! 3! Our customers have access to variety of alternatives to our product or service

4 Sup 1! 2! 3! We rely on experts or vendors for critical parts of our products or services 5 Sup 1! 2! 3! The skills needed for our industry make it difficult find quality people 6 Sup 1! 2! 3! Our value-adding processes are subject the control of professions or unions

7 Mkt 1! 2! 3! We ignore the needs of our low-end customers in new products or services 8 Mkt 1! 2! 3! Our products or services require customers to abandon their legacy systems 9 Mkt 1! 2! 3! Large capital investments to deliver new products and services in our industry



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Individ

ual

Group

Technology


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5) SOCIETAL INNOVATION CONSTRAINTS Read each statement and consider how closely it describes the situation in your dominant society. Record your assessment by putting a checkmark into the box that indicates how accurately it describes your situation.




1 Val 1! 2! 3! Customers use our products to express their personal identity 2 Val 1! 2! 3! Our products are targeted to users of particular demographics 3 Val 1! 2! 3! Our products challenge or reinforce ideas that people have about their identity

4 Reg 1! 2! 3! Lawyers or top managers stall our innovation efforts for fear of legal risk 5 Reg 1! 2! 3! Our innovation efforts are hampered by regulatory concerns 6 Reg 1! 2! 3! Society has concerns about the ethical impact of our products

7 Hst 1! 2! 3! Our products displace those a customer already has 8 Hst 1! 2! 3! Using our products requires new ways of thinking and new cognitive maps 9 Hst 1! 2! 3! Our customers want our products to look and perform the way they always have

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Technical Constraints

Individ

ual

Group

Technology


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6) TECHNOLOGY INNOVATION CONSTRAINTS Read each statement and consider how closely it describes the technology and development processes you rely on to deliver your core products and services. Record your assessment by putting a checkmark into the box that indicates how accurately it describes your situation.


1 UI 1! 2! 3! We get caught off guard by things we didnt know starting out 2 CI 1! 2! 3! We have trouble moving research into production due to immature technology 3 CC 1! 2! 3! We use traditional models for solving new problems 4 UC 1! 2! 3! We dont test our assumptions when facing new problems

5 Tm 1! 2! 3! We do not test for the show-stopping issues early in a project 6 Tm 1! 2! 3! We do not test our progress as we move through complex innovation projects 7 Tm 1! 2! 3! We do not explicitly plan for learning in project plans

8 Env 1! 2! 3! We have difficulty getting the raw materials we need to produce our products 9 Env 1! 2! 3! Our activities require or consume an ecologically-limited resource 10 Env 1! 2! 3! Our activities require significant mitigating efforts to avoid ecological harm.

1 = Highly Descriptive, this occurs often or on a routine basis

2 = Moderately Descriptive, this occurs sometimes or occasionally 3 = Not Descriptive, this occurs rarely or not at all

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Credits Illustrations:

Ariya Guy Kopsombut Photos:

Human Head - Chrkl @wikimedia.org Svalbard Global Seed Vault - Dag Endresen @flicker

Nissan Tama MIKI Yoshihito @ flickr Light Bulb - KMJ@wikimedia Commons Imbiss - Paul Robertson @flicker

Grillwalker - Paul Keller; Eirik Newth; Fairbrand @flicker Apple Newton moparx @flickr

Segway Anti-Terror p373@flickr Kodak Digital Camera Brett Jordan Metropolitan Opera - wikimedia Yair-haklai@flicker

AMC Theater - Digital_Third_Eye ; @flicker Christos Surrounded Islands Jennifer Mei @flicker

Oil Spill Otter Otter Arlis Reference @flicker Hair - How Can I Recycle This? @flicker Oil Spill - Planet Vicster ; Victoria K @flicker

Surgery - Army Medicine @flicker Trustfall Rocksee @flicker

Clones Soundman1024@flickr Napster Dick Thomas Johnson @flickr Org Chart Graeme Campbell @ wikimediaCommons

Documents

Innovation in Organizations