INNOVATION & LEADERSHIP - INSTEPS Management/INNOVATION Versi... · Evolution of the Researchers Timeline Activities and Results ... Are goal and action-oriented ... INNOVATION &

PROGRAM DOKTOR PSIM, MANAJEMEN STRATEJIK – FAKULTAS EKONOMI UNIVERSITAS INDONESIA

INNOVATION & LEADERSHIP

Laurensius Manurung(8605210264)

Vitri C. Mallarangeng

(8605210477)

LAURENSIUS MANURUNG & VITRI ANDIMALARANGENG: PROGRAM DOKTOR PSIM – SM FEUI 2

INNOVATION

Two ways for a company to grow:

� Inorganic growth: buying another company or

product, or hiring away a competitor’s best

people.

� Organic growth: fueled by innovation, which

makes an organization better and new.


INNOVATION

WHAT IS INNOVATION?

Beberapa Pendapat:

� A New Technological breaktrough (Terobosan Teknologi

Baru), such as the discovery of the transistor.

� A New Invention (Penemuan Baru), such as one wheel

scooter

� A New Business model (Model Bisnis Baru), such as a-no

frills airline

� A New Production process (Proses Produksi Baru), such

as a lower-cost way to make computer

� A New Creative design (Design/rancangan kreatif baru),

such as a sleek, sexy automobile


How Creativity and Change Drive Innovation

� Creativity: Suatu aktivitas dengan maksud tertentu atau

kumpulan aktivitas yang menghasilkan produk,

pelayanan, proses yang bernilai atau ide yang lebih baik

dan baru.

� Change: Suatu kondisi/kedaan yang mengalami

perubahan baik secara individu atau organisasi yang

diakibatkan oleh kekuatan dengan tujuan tertentu dan

transformasi yang tidak disengaja..

Contoh: How engine operates. Creativity digambarkan

sebagai loncatan api yang menyalakan bahan bakar.

Change adalah panas yang dihasilkan dari pembakaran.

Innovation: Mesin merubah panas menjadi tenaga

penggerak yang menjalankan kendaraan.


INNOVATION

� Enhances something. Google meningkatkan kemampuan mesin

pencari di internet dengan memudahkan pencarian bagi penggunanya.

Pencarian ini membuat orang meninggalkan Yahoo, Lycos dsb.

� Eliminates or destroys something. Membeli saham melalui

Broker menjadi Trading On Line (Charles Schwab).

� Returns us to something in our past.

Amazon memilki koleksi buku yang dapat dibeli secara on line, namun

orang tetap membeli di Toko Buku Barnes dan Noble dengan

menyediakan minum kopi seperti orang kuliah pada masa lampau.

� Over time things become their opposite. E-mail pertama diperkenalkan sebagai teknologi yang menghemat waktu,

tetapi seiring dengan waktu berajalan banyak orang menggunakan email

dan menyalahgunakan dan mengurangi produktivitas kerja.

A functional definition for innovation (McLuhan,1964)


�INOVASI adalah proses penciptaandan penyampaian suatu nilai barukepada pelanggan di suatu pasar..

�Key Word: New Customer Value

A definition for innovation (Carlson & Wilmot,2006)


WHAT IS INNOVATION (De meyer and Sam Garg)

“INOVASI adalah pengenalan suatu teknologi

baru atau kombinasi dari teknologi yang ada

yang sukses secara ekonomis dalam rangka

perubahan yang drastis dalam bentuk

hubungan antar nilai atau harga yang

ditawarkan kepada pelanggan dan atau

pemakai (user).

Key Word : Drastic Changes.


FOCUS CUSTOMER

Creating Customer value

� Who is your Customer?

� What is the customer value you provide and how do

you measure it?

� What Innovation best practice do you use to rapidly,

efficiently, and sysytematically create new

customer?

�Customer value is value to the customer

�Customer Value = Benefits – Cost

�Value factor = Benefits/Costs


�Important Needs: Bekerja untuk pelanggan yang berpengaruh dan kebutuhan pasar bukan untukapa yang menarik buat kita.

�Value Creation: Penggunaan alat bantu untukpenciptaan nilai kepada pelanggan secara cepat.

�Innovation Champions: Menjadi Champion inovasiuntuk mendorong penciptaan nilai.

�Innovation Teams: Menggunakan team secaramultidisplin berdasarkan pendekatan inovasidengan orang yang mempunyai intelektual tingkatjenius ( genius level IQ).

�Organizational Alignment: Menyelaraskan timdengan perusahaan secara sistematik untukmenghasilkan inovasi yang berniali tinggi.

5 DISCIPLINE OF INNOVATION


The product or service life cycle curve

VALUE

TIME

A

B

CProfits

New Concept

Maturity

New product or service

Investment


� Invite everyone in the quest for new ideas.

� Involve customers in the process of generating

ideas.

� Involve customers in new ways.

� Focus on the needs that customer dont’ express.

� Seek ideas from new customer groups.

� Involve suppliers in product innovation.

� Benchmark idea-creation methods.

7 Strategies for Generating ideas (Robert B.Tucker,2003)


� There is no innovation without leadership

� Innovation requires calculated risk management

� Innovation is triggered by creativity

� Innovation requires organizational integration

� Success in innovation requires excellent in project

management

� Information is the crucial resource for effective innovation

� The results of creative efforts need to be protected

� Successful innovation is rooted in good understanding of

the market

MANAGING INNOVATION


� A Genome adalah the ultimate map yang mengandungkeseluruhan material genetik mahluk hidup yang disebutDNA.

� Innovatian Genome: menggambarkan bagaimanakeseluruhan sistem inovasi organisasi dapat berfungsipada semua tingkatan: individu, organisasi danlingkungan strategik yang lebih luas dimana nila dikenaloleh pelanggan dan pasar.

� Innovation Genome adalah peta (map) yang menunjukkan 4 pendekatan yang berbeda dalam inovasi.

(Collaborate, Create, Compete and Control)

INNOVATION GENOME


Summary of the History of the innovation Genome

CVF research evolved into a project to determine

how the model’s four leadership profiles supported

or hindered high-performing organizational culture

and competency development.

Mid-1980sQuinn and

Cameron

Multiyear study of fortune 2000 companies based

on CVF principles to determine predictability of

financial market-to-book variances that drive stock

prices, which resulted in a unified theory of value

creation.

Mid-1990sQuinn,

Cameron,

Thakor, and

DeGraff

Wholonics evolves

from CVF

Based on the practice of applying the CVF to

organizational creativity, the innovation Genome

emerges as a model for leading innovation and

growth.

2005DeGraff and

Quinn (Shawn)

Innovation Genome

evolves from CVF

Further organizational analysis extended the CVF

to the subject of organizational creativity that

produces value for companies

2001DeGraff and

Lawrence

CVF and Creativity

Studies conducted to identify the leadership

behaviors that lead to high-performing managerial

decision making

1970s and

early 1980s

Quinn and

Rohrbaugh

Competing Values

Framework

Activities and ResultsTimelineResearchersEvolution of the

innovation Genome

Competing values framework (CVF)


The Innovation Genome

Human Relations Open Systems

Rational Goals

COMPETECONTROL

CREATECOLLABORATEPractice

People

Purpose

Internal Processess

Do things first

• Purpose

Innovation

Growth

• Practice

Inventing:

-products

-markets

-ventures

• People

-Artist

-Visionaries

-Entrepreneurs

Do things fast

• Purpose

-Speed

-Profits

• Practice

Investing:

-Performers

-Initiatives

-Acquisition

• People

-Competitors

-Motivators

-Dealmakers

Do things right

• Purpose

-Efficiency

-Quality

• Practice

improving:

-systems

-structures

-standards• People

-Problem solvers

-Engineers

-Professional

Do things together

• Purpose

-knowledge

-community

• Practice

incubating:

-workplace

-values

-learning• People

-Community

builders

-teachers

-counselors


COLLABORATE QUADRANT

� Persahabatan (Fellowship), Pembelajaran (learning),

dan kepemimpinan yang berdasarkan nilai ( value-

based leadership).

� Pendekatan inovasi berdasarkan hubungan manusia

dan organisasi yang menekankan kebutuhan

individu untuk bergabung secara positip dalam

komunitas bersam.

� Pemimpin harus menjamin bahwa suatu ide baru

akan bermanfaat bagi komunitas

� Contoh : Linux (jaringan inovasi dan aliansi,

Singapore Airline (Innovation as customer service

and experience)


CREATE QUADRANT

� Perubahan besar (Big changes), percobaan

radikal (radical experiments) dan spekulasi

pasar baru dan bertumbuh

� Lingkungan selalu menjaga regenerasi.

� Menghasilkan inovasi yang akan merespon

kepada kondisi yang turbulens dan kondisi

yang cepat berubah.

� Contoh : Apple (Innovation as design and

fashion), IBM (innovation as market making)


COMPETE QUADRANT� Pendekatan “survival of the fittest” yang kuat

memakan yang lemah (The strong eat the

weak) dan yang cepat mendahului yang

lambat mencapai pasar baru.

� Pendekatan inovasi terpusat kepada bisnis

dan profit,

� Beriorientasi kepada kinerja jangka pendek.

� Praktek Merger dan akuisisi.

� Contoh : Nike (Innovation through marketing

anda brand image), Amazon(innovation

through channel and delivery).


CONTROL QUADRANT� Pendekatan proses multi displin dengan

Continous improvement dan bekerja dengan

resiko kecil.

� Slogan “ Getting better every day and every

way”

� Pemimpin bersifat metodik, pragmatis dan

akurat.

� Contoh : Samsung (Product innovation), Wal-

Mart ( Process Innovation) dan Nokia

(Platform innovation).


Table.I.1. Collaborate Quadrant Characteristics

� Knowledge management.

� Learning Organization.

� Collaborative communities of practice

� Culture development and transformation

� Cutomer relationship management

� Compentency development

� Team building

� Mentoring and Coaching

� Training

Practices: Culture,

competency, and

processes of the

organization

mission and vision

statements

�See potential

�Build commitment and trust

�Are sensitive and caring

�Are patient listeners

�Encourage participation

�Respect diiferences

�Empower people

People: Individuals

in the organization,

at all levels

� Community: establishing and maintaining shared values and culture. Common

ways of achieving this are networking, empowerment, and team building.

� Knowledge: developing understanding and skills. Common ways of achieving this

are training, organizational learning, and human resource management.

Purposes:outcome,

or the value the

organization

intends to create

� A Community united by shared beliefs defines the organization, such as

environmental concerns

� Competency is closely linked to unique individual abilities, such as an entertainer.

� Lifestyle identification determines the product or service, such as motorcycles.

Situation: External

conditions such as

market forces and

trends. When….


Cont..table.I.1

� Talk about personal experiences.

� Storytelling.

� Smiles

� Expressing emotions

� Putting the person at ease

� Thinking out loud

� Using nonverbal communication

� Acknowledging the role of intuition

� Recognizing important spiritual symbols

Preferred communication

�Bloomsburry Publishing

�McKinsey and Company

�Harley Davidson

�eBay

�WL Gore and Associates

�The Body Shop

�Not-for-profits

�Universities

Example organizations

� Interest: Do we care about this idea?

� Knowledge: what are we learning from this idea?

� Beliefs: Does this idea fit with our values?

Preferred questions

� Family atmosphere

� Collaborative workplace.

� Shared values and vision.

� Integrated personal goals

� Informal atmosphere

� Teaching and coaching

Preferred environments


Table.I.3.Create Quadrant Characteristics

� Creativity Methods

� Strategic forecasting and Scenario Planning.

� Corporate venturing

� Spin-offs

� Entrepreneuring

� Growth and market disruption strategies

� Change and innovation programs

� New product development

� Radical experiments

� Borderless and virtual organizations

Practices: Culture,

competency, and processes

of the organization mission

and vision statements

� Are visionary dreamers

� Are clever

� Are optimistic

� Are enthusiastic

� Are quick on their feet

� Are expressive

� Are big picture thinkers

People: Individuals in the

organization, at all levels

� Innovation: making new and better products and services. Common ways of achieving this

are creative problem solving, new-product development, and change management.

� Growth: Prospecting for new and future market opportunities. Common ways of achieving

this are strategic forecasting, trend analysis, and shared vision management.

Purposes:outcomes or the

value the organization

intends to create

� Differentiation creates significantly higher margins, such as consumer electronics.

� Start-ups compete through radical innovation with established firms.

� An industry is situated around blockbuster invention, such as pharmaceuticals.

Situation: External

conditions such as market

forces and trends. When….


Cont..table I.3

� Be enthusiastic and energetic.

� Look at the big picture

� Expect to be interrupted in midsentence

� Draw pictures and designs of concepts

� Use methapors

� Look at the future

� Make ideas conceptually sound and clear

� Ask open-ended questions

� Explore how

Preferred

communication

� Pixar

� Apple

� Phillips

� Google

� Nokia

� Versace

� Biotechs

� Start-ups

Example

organizations

� Innovation: is this idea a breakthrough?

� Direction: Does this idea move us toward the future?

� Emerging Opportunity: Will this idea allow us to experiment as we go along?

Preferred

questions

� Stimulating projects

� Flexible hours

� Free from everyday constraints

� New initiatives

� Independent work streams

� Diverse workforce

Preferred

environments


Table.I.4.Compete Quadrant Characteristics

� Economic Value-Added Management

� Mergers and Acquisitions

� Real options analysis

� Time to market reduction

� Performance management scorecards

� Profit insight processes

� Pay for performance plans

� Branding

� Sales channel management

� Portfolio management

Practices: Culture,




� Are goal and action-oriented

� Are impatient

� Are assertive

� Are driven

� Are decisive

� Are challenging

� Are competitive



� Speed: moving quickly to capture an opportunity. Common ways of achieving

this are mergers and acquisitions, branding, and customer service.

� Profits: maximizing shareholder earnings. Common ways of achieving this are

using goals and metrics, strategic resource allocation, and portfolio

management.



intends to create

� A community is united by shared beliefs. Shareholder demands are the

primary driver, such as financial institutions.

� Aggressive competition changes the market dynamics through mergers and

acquisitions.

� Investors demand quick financial results.

Situation: External




Cont…table I.4

� Get to the point and summarize.

� Be logical and analytical

� Critically confront the downside.

� Use quatifiable facts to illustrate points

� Be very matter-of-fact.

� Don’t get emotional

� Show personal ownership

� Demostrate a bias toward action.


� Unilever

� Microsoft

� GE

� Bloomberg

� PepsiCo

� Citicorp

� Blue-chip companies

� Conglomerates


� Cash value: is the payoff for this idea big enough?

� Immediacy: Can we get this idea done quickly?

� Leverage: can this idea be used to create value in other areas?

Preferred questions

� Competitive

� High Pressure

� Fast Moving and high energy

� Image-enhancing deal making

� With quantifiable results

� Winning and losing



Table.I.5.Control Quadrant Characteristics

� Business process improvement

� Activity-based costing

� Benchmarking

� Lean Manufacturing

� Total Quality Management

� Simulations

� Contigency Planning

� Pervasive information systems

� Reorganization

� Supply Chain Management

Practices: Culture,




� Are Pragmatic

� Are organized and methodical

� Are scientific or technical

� Operate by the book

� Are problem solvers

� Are objective

� Are persistent



� Efficiency: Using resources in the best way possible. Common ways of

achieving this are procedures, budgeting, and organizational design.

� Quality: Eliminating errors. Common ways of achieving this are process

controls, systems, and technology.



intends to create

� Scale and scope of organizational processes are very large and complex,

such as automobile manufacturers.

� Government regulations and standards determine business practices, such

as medicine.

� Failure is not an option, such as aerospace.

Situation: External




Cont…table I.5

� Provide details.

� Be neat and on time

� Follow the rules

� Explain in sequential order

� Conform to accepted esprit de corps

� Ask close-ended questions

� Provide detailed data

� Demostrate how something works


� Toyota

� Shell Oil

� Airbus

� Wal-Mart

� Siemens

� LG

� Government Agencies

� Medical Centers


� Cost: can we afford this idea?

� Feasibility: Can we really implement this idea?

� Standards: does this idea comply with critical standards?

Preferred questions

� Clear roles and responsibilities

� Stable project management

� Logical objectives

� Methodical processes

� Standards and regulations

� Ordered and structured work.



A Path to Innovation

SYNTHESIZE1

SPECIALIZE6

SYSTEMIZE7

STRATEGIZE2

SOCIALIZE3

SUPERVISE4

SYNCHRONIZE5

The seven steps are:


� Synthesize: Menilai dan mendiagnosa tujuan suatu organsisai (Purpose

(outcomes), Practices (capabilities, organizational culture, and

competencies), and People (individual employees who create

capabilities, culture, and competencies).

� Strategize: Menciptakan visi untuk masa yang akan datang (Create a

vision for the future) dan membuat peta jalan ( road map) menuju visi

tersebut.

� Socialize: Membangun pemahaman visi dan nilai yang dimilki oleh

kepemimpinan.

� Supervise: Menunjuk fasilitator untuk memimpin dan mempertahakan

suatu perubahan dan inovasi.

� Synchronize: Merangkul dan mengajak seluruh pimpinan (leaders) untuk

mengoperasionalkan visi.

� Specialize: Perubahan dimulai dengan tim inovasi.

� Systemize: Mereview and memperbaiki , menyesuaikan dan

mempelajari projek.

THE SEVEN STEPS


Synthesize

• Interview key leaders and

stakeholders

• Administer, collect, and

analyze data.

• Interpret the assessment.

Entire organization or

individual units

Assess and

Diagnose

ActionParticipantsObjectives


Strategize

• Identify the current strategic

landscape competencies,

opportunities, and threats to the

organization

• Identify the forces driving the

future of the organization, their

impact and probability, and the

competencies required to meet

these future needs.

• Integrate the road map to the

future with current strategic and

operating plans.

Leadership team and

other appropriate

leaders and experts

from within and outside

the organization

Create a vision of

the future and a road

map that leads to it



Socialize

• Create a shared vision of the

desired organization, and

establish the shared values

required to achieve it.

• Leaders commit to changes

in behavior required to

achieve the shared vision

and values.

• Identify facilitators and a few

strategic targets that will lead

the organization to the

shared vision and values.

Leadership teamEstablish a shared vision

and values in the

leadership team



Supervise

• Train facilitators in change

and innovation methods and

in facilitation tools and

techniques.

• Provide opportunities for

facilitators to help facilitate

action teams.

• Identify the development

needs of facilitators, coach

them in improving their

effectiveness, and review

their progress.

FacilitatorsDevelop facilitators

to lead and sustain

change and

innovation



Synchronize

• Convene a summit of the

organization’s leaders and

break them into groups to

execute a few strategic

targets.

• Determine what management

practices need to be changed

and how to change them;

develop action plans.

• Develop quick wins and

integrate them into operating

plans; get authorization to

implement them immediately.

Leadership Team, Action

Teams, and other

appropriate leaders and

experts from throughout

the organization. (this

step requires the

involvement of large

number of paticipants

and needs to be held in a

setting of significanct

size).

Engage leaders

throughout the

organization to put

the vision into

operation



Specialize

• Launch a wide array of action

teams to work on quick win

projects and organizational

practices.

• Create ways to develop new

competencies and expand

market.

• Learn what works and what

doesn’t, and make revisions.

Action Teams, and other



the organization and

other appropriate leaders

and experts from within

and outside the

organization.

Jump-start change

and innovation

action teams



Systemize

• Create processes for

managing multiple projects:

key measures, development

process, resource allocation,

and portfolio management.

• Advance projects that

demonstrate the ablity to

produce superior results,

modify those with high

potential, and stop all others.

• Integrate the best practices of

the Action Teams into the

organizations’s practices.

Leadership Team, Action

Teams, and other



the organization

Review and revise

projects, adjust

organizational

practices, and learn



The Creativize Method

Strategize

Synthesize

• Marina realized that her company

needed growth focused innovation at

a time when sales were declining.

• She saw that there were outstanding

leaders who had endured numerous

CEO transitions.

• Interview key leaders

and stakeholders.

• Administer, collect, and

analyze data.

• Interpret the

assessment.

Entire

organization or

individual units

Assess and

diagnose

• Marina worked with the vice president

of strategy to get top-level support.

• She worked with others to identify

emerging trends, and she scanned

the company to find pockets of

innovation in an overseas unit.

• Identify the current

strategic landscape

competencies,

opportunities, and

threats to the

organization.

• Identify the forces

driving the future of the

organization, their

impact and probability,

and the competencies

required to meet these

future needs.

Leadership team

and other

approriate leaders

and experts from

within and outside

the organization

Create a vision

the future and

a road map

that leads to it.

Participants Marina’s StoryActionsStep and

Objectives


Cont….The Creativize Method

• Senior leaders in Marina’s company

were willing to work through a change

process, but they were concerned

with missing short term targets

• Marina and the senior team worked

and readjusted the strategy to keep it

realistic.

• Marina showed proof of concept that

the changes were doable; the senior

team was now on board.

• Create a shared vision

of the desired

organization and

establish the shared

values required to

achieve it.

• Leaders commit to

changes in behavior

required to achieve the

shared vision and

values.

• Identify facilitator and a

few strategic targets

that will lead the

organization to the

shared vision and

values.

Leadership teamEstablish a

shared vision

and values in

the leadership

team

• She worked with senior leaders to

encourage a culture of innovation and

risk taking

• Integrate the road map

to the future into current

strategic and operating

plans

Strategize

(Continued)

Socialize


Objectives


Cont…The Creativize Method

• Marina started with a list of more than

100 potential people to facilitate

project teams throughout the

company.

• She narrowed down the list to 15 of

the best self-starters who knew how

to get things dones.

• The facilitators selected and led

projects that were innovative, aligned

with the new strategy, and

achieveable.

• Train facilitators in

change and innovation

methods and in

facilitation tools and

techniques.

• Provide opportunities

for facilitators to help

facilitate action teams

• Identify the

development needs of

facilitators, coach them

in improving their

effectiveness, and

review their progress

FacilitatorsDevelop

facilitators to

lead and

sustain

change and

innovation

• Marina now had to help those

facilitators who were making

innovation happen.

• Marina demostrated that innovation

was happening in her company.

• Through a summit of company

leaders, she coordinated the effort

• Convene a summit of

the organization’s

leaders and break them

into groups to execute a

few strategic targets.

• Determine what

management practices

Leadership team,

Action Teams,

and other

appropriate

leaders and

experts from

throughout the

Engage

leaders

throughout te

organization to

put the vision

into operation

Supervise

Synchronize


Objectives


Of taking innovation from small projects

to a major company focus.

Need to be changed and

how to change them;

develop action plans.

• Develop quick wins and

integrate them into

operating plans; get

authorization to

implement them

immediately.

Organization.

(this step requires

the involvement

of large number

of participants

and needs to be

held in a setting

of significant

size).

(continued)

• Marina led the process of integrating

innovation practices into more action

teams all over the company so that

such projects would be more

widespread and so that a

companywide culture of innovation

would emerge.

• Launch a wide array of

actions teams to work

on quick-win projects

and organizational

practices.

• Create ways to develop

new competencies and

expand market

opportunities.

• Learn what works and

what doesn’t and make

revisions.

Action teams and

other approriate

leaders and

experts

Jump-start

change and

innovation

action teams

Synchronize

Specialize


Objectives



• The culture of innovation had taken

hold in Marina’s company.

• Her role was defined not as chief

innovator but as the leader in charge

of making innovation happen.

• Going forward, Marina’s focus is on

searching for and reapplying the best

innovation practices; the company

reviews and revises its direction.

• Create processes for

managing multiple

projects: key measures,

development process,

resource allocation, and

portfolio management.

• Advance projects that

demonstrate the ability

to produce superior

results, modify those

with high potential, and

stop all others.

• Integrate the best

practices of the action

teams into the

organization’s

practices.

Leadership team,

action teams, and

other appropriate

leaders and

experts from

throughout the

organization

Review and

revise

projects,

adjust

organizational

practices, and

learn

Systemized


Objectives



The International Product Life Cycle theory (Vernon, 1966)

GLOBAL INNOVATION

Stage One

INNOVATION

Innovative firms create new

products and processes in

their country of origin: an

advanced industrialised

country

Stage Two

FOREIGN PRODUCTION

Second-tier country

subsidiaries receive

products/processes from

innovators and produce for

local markets

Stage Three

TRANSFER

Developing country subsidiaries

receive products/processess

from innovators and produce for

local markets and global markets

at low cost

Innovative

Country

product Life

Cycle

Second-Tier

Country

Product Life

Cycle

Developing

Country

Product Life

Cycle

Example: TV set Industry

• 1950

• Innovative country: US

• RCA, ZENITH, GENERAL

ELECTRIC and

MOTOROLLA

• 1960

• Some production was moved to

industrialised countries such as Europe

and Japan, either under the form of local

subsidiaries of the innovative firms or

through technology transfer to local firms

(Matsushita, Sony, Thomson, etc)

• Emerging developing

countries (korea, China) took

the lead in the production of

TV sets, because of cost

advantages and market

potential.


Cont…GLOBAL INNOVATION

� Criticsm to the theory international product life cycle:� Tidak dapat menjelaskan inovasi Global yang terjadi sejak tahun 1960.

� Migrasi R&D dan produksi tidak selalu diikuti secara bertahap sebagaimnadigambarkan the international product life cycle.

� Global R&D network� Benefits:

� Dekat dengan pasar sehingga mudah berdaptasi atau menciptakan sesuaikebutuhan lokal.

� Akses ke Cluster meliputi penciptaan dan pengembangan pengetahuan.

� Pembelajaran (Learning)

� Constraints� Kendala besarnya ukuran krirtis karena jumlah minimum sumber daya yang

diperlukamn untuk beroperasi secara efisien dan efektip..

� Kendala komunikasi yang disebabkan karena sulitnay menjabarkan, tacit, intuitive, intelectual process, personal encounters dan hambatan komunikasi diantarapeneliti.

� Evolution:� Pertama dimulai dengan pusat laboratorium R&D lab

� Kedua Memasang laboratorium lokal untuk produk lokal atau sebagai prosesadaptasi.

� Ketiga Pembentukan pusat keunggulan yang spesifik dalam penelitian dasar atauproses applikasi inovasi dari negara yang mempunyai sumber inovasi yang banyak.


� Definition:� Knowledge is the ability to dechiper and give a meaning to facts and information.

� Knowledge management (KM)is the ability of a company to create, combine and share knowledge among its members.

� Conversion of knowledge forms a knowledge spiral of organisational knowledge-creation:� Socialisation

� Externalisation:

� Combination:

� Internalisation:

� Opportunities for KM:� Diversity of contexts

� Variety of experiences

� Economies of scope in knowledge-creation

� Economies of speed by not reinventing the wheel

� Constraints:� Languages

� Differences of cultures and mindsets

� ‘not invented here’ reactions

� Unwillingness and lack of motivation to share knowledge.

� Incentive system reinforcing local performance and not rewarding ‘global citizenship’.

� Nationalities perspectives

� Lack of trust between units.

Global Knowledge Management System


� Types:� Patents.

� trademarks.

� Copyrights

� Industrial Design

� Trade secrets

� Genetic code.

� Infringement- common for all types intelectual property rights

� Protection: methods can involve of the following:� Employees

� suppliers

� Joint ventures partners

� Legal sanctions

Intelectual property rights (IPR)


Model

Penelitian terhadap Inovasi


Relationship between Innovativeness, Quality, Growth, Profitability, and Market Value

(The IQP Model) By HEE JAE CHO and VLADIMIR PUCIK(2005)

innovativeness

Quality of

products

or services

innovativeness

Growth

innovativeness

Quality of

products

or services

Hypotheses 1

Hypotheses 2

Hypotheses 3

Hypotheses 4

Hypotheses 5

innovativeness Growth

Quality of

products

or services

Profitability

Quality of

products

or services

Market Value

Profitability Market Value

Growth

Profitability

Market Value


Strategic Leadership and Executive Innovation Influence: An International Multi Cluster

Comparative Study by DETELIN S.ELENKOV, WILLIAM JUDGE and PETER WRIGHT(2005)

STRATEGIC LEADERSHIP

BEHAVIORS

EXECUTIVE INFLUENCE

ON INNOVATION

ORGANIZATIONAL SIZE AND

PERSONALITY FACTORS

ORGANIZATIONAL SIZE AND

PERSONALITY FACTORS

TMT TENURE

HETEROGENITY

SOCIAL CULTURE

PROGRAM DOKTOR PSIM, MANAJEMEN STRATEJIK – FAKULTAS EKONOMI UNIVERSITAS INDONESIA

INNOVATION & LEADERSHIP

PRINCIPLES OF INNOVATION MANAGEMENT

20 Oktober 2006, Sesi 6 (AAF)

INSPIRE TO INNOVATEManagement and Innovation in AsiaArnoud De Meyer and Sam Garg

Vitri C. Mallarangeng(8605210477) Laurensius Manurung(8605210264)


Background of the book

� The emergence of China as a leader in manufacturing, and in the near future in design

and development, and the rapid rise of India as a provider of IT and IT-enabled

services, change the macroeconomic constraints under which other Asian firms have to

operate.

� Competing on low-cost production and low sales prices is becoming increasingly difficult

for firms from other parts of Asia.

� For many firms the only effective response to this change in the competitive scene is to

move up the value chain.

� Moving up the value chain will require more innovation, because innovation in products,

services and processes is the only effective answer to this new competitive situation.

� This book try to answer the question:

� How do you innovate?

� Is the approach you use in Asia different from the one you would use if you

managed a company in the western, industrialized world?

� Are there any special tricks that one should use in the Asian environment?


Innovation in Asia

1. The supply and demand dynamics are changing in Asia, helped by the economic

evolution in china and india. This makes innovation imperative for a large number

of firms across Asia, including India and China.

2. We argued that, in the short and medium term, firms in Asia will have to do more

business-driven innovation rather than science and technology driven innovation.

And for that, they will have to start taking steps themselves rather than wait for

the governments to change policies to make the environment more suitable for

innovation.

3. The importance of inspiring confidence about Asian innovations among

customers. It is the customers who make companies relevant.


What is different about the implementation of innovation management in Asia

� The principles of innovation management in asia are the same as elsewhere,

but that the implementation of these principles may differ.

� Responden form survey 336 senior manager can be classified into 4 cluster

(group):

� The innovation starters

� The tradition fighters

� The resource poor

� The stuck in the muck

� To become more innovative, we have to adapted to the different

characteristics of each of these group.


Creating new organizations in Asia for the new challenges

� Two beliefs that are different from traditional management wisdom in Asia:

� Future competitiveness will come from emphasizing that knowledge, that is

actionable information that we believe to be true, is the core resource of the

organization.

� Competing on low prices is a difficult battle; only higher value will command higher

prices.

� Some Asian organizations and firms have already made this mental step and we can be

inspired by some of the actions they took to implement the new organization. Their

organizations have made a mental shift and have invested in the creation of an

environment that stimulates creativity.

� The mental shift is helped by at least 3 levers:

� Company leaders need to make it clear that innovation needs a focus on value

creation through entrepreneurial risk taking

� Must be able to make the shift from creative improvisation to careful process

management in design and development.

� You have to see your firm as a bundle of capabilities that can be constantly

recombined in order to respond better to the market, not as a portofolio of products.


� The basic principles of innovation management that have been developed over the past 30 years in the US, Japan, the UK and Continental Europe do apply in Asia.

� Five hurdles emerged:� Technical expertise and risk capital are both needed for effective innovation but are still

scarce througout Asia.

� The markets needed to stimulate innovation are either far away from Asia (either geographically or culturally) or, if they exist locally, are often too small.

� The existing industrial policies of most Asian governments are too often about catching up with industrialization, and do not sufficiently aim at value creation through innovation.

� Many organizations in Asia have a risk-averse organizational culture. As a result, they limit creativity and create an underdog mentality pf not being able to innovate.

� In Asia there is considerable lack of appreciation for intangibles, for example intellectual property rights or brands.

� Not all managers feel the same about these hurdles.

What to do next?


Apakah Inovasi Harus Dimulai dari Leader?Apakah seorang leader adalah jugamanajer yang baik?

• Apa itu leader?• Apa itu leadership?• Bisakah leadership dipelajari?• Leadership bagaimana yang bisa membuat sebuah perusahaanmenjadi sukses?

• Apakah inovasi baru bisa berjalan kalau ada leadership?• Leader bagaimana yang baik dan dengan inovasi yang bagaimanauntuk bisa membuat sebuah perusahaan menjadi sukses?

• Apakah ada syarat-syarat tertentu dan pola-pola leadership tertentuyang berbeda untuk bisa sukses di tempat-tempat yang berbeda?

•Apa perbedaan antara leader dan manajer?•Bagaimana seorang leader yang baik bisa menjadi manajer yang baik pula?

•Apa saja syarat menjadi manajer yang baik?•Leaders bisa berhasil karena ada followers.


Hubungan antara manajemendan leadership.

The Human Side of Management(Thomas Teal)

� Managing is not a series of mechanical tasks but a set of human interactions.

� Integrity in management means being responsible, communicating clearly, keeping promises, knowing oneself.


Seorang manager bisa mencapaisukses apabila memenuhibeberapa syarat: Great managers serve two masters: one organizational, one moral.

Great management requires leaders to learn some difficult lessons of their own.

Gread management involves courage and tenacity.it closely resembles heroism.


Apa perbedaan antara manajerdan leader?

� Manajers and Leaders (Abraham Zaleznik)

Managers goes arise out of necessities, rather than desirestthey exels at diffusing conflicts between individuals or departments, placing all sides while ensuring that an organization’s day to day business gets done.

Leaders adopt personal, active attitudes towards goals. Look for the potential opportunities and reward that lie around the corner, inspiring subordinates and firing up the creative process with their own energy. High intensity on their relationship with employees and coworkers. While their working environment is often, consequently chaotic.

One way to develop leadership is to create challenging opportunities for young employees.


Managers and Leaders’Personality

� What it takes to develop managers may inhibit developing leaders. Leadhership and managements are two distinctive and complementary systems of action of avtivities. Both are necessary for success in today’s business environment.

� Attitudes toward goals: managers didn’t just respond to consumer needs. He stimulated consumer desires (as he/she become a leader).1/ managers focuses others’s attention on procedure and not on substance.2/ managers communicate to subordinates indirectly, using “signals” instead of “messages”. A signal holds a number of implicit positions, while a message clearly states a position.3/ managers plays for time. While liders’s lives are marked by a continual struggle to attain some sense of order.


What Leaders Really Do (John P. Kotter)

Leadership and management are two distingtive and comlementarysistems of action. Both are necessary for success in today’s business Environment.• Management is about coping with complexity.• Its practices and procedures are largely a response to the emergence or large, complex organizations.

• Leadership is about coping with change, and more change alwaysdemand more leadership (become so important in recent years where the business worl has become more competitive and more volatile).

• Strong leadership with weak management is no better and is sometimes actually worse. Need strong manager and strong leader to balance each and the others.

• Companies should actively seek out people with leadership potentialand expose them to career experiences designed to develop thatpotential.


Leadership Complements Management; It Does’nt Replace It

Companies manage complexity by planning and budgeting:- Setting target or goals for the futures- Establishing detailed steps for achieving those targets- Allocating resources to accomplish those plans- Organizing and staffing - Controlling and problem solving- Management controls people by pushing them in the right direction

Companies leading and organization to constructive change begins by:- Setting a direction - Developing a vision of the future along with strategies for producingthe change needed to achieve that vision

- Aligning people (communicating the new direction)- Motivating and inspiring- Leadership motivates them by satisfying basic human needs


� The Work of Leadership(Ronald A. Heifetz and Donald L. Laurie)

• Solutions to adaptive challenges reside not in the executive suite but in the collective intelligence of employees at all levels.

- Leader have to see a context for change or create one- Identifying the adaptive challenge- Regulating distress- Maintaining disciplined attention- Giving the work back to people- Protecting voices of leadership from below

• Leaders have to provide cover to employees who point to the internalcontradictions of the enterprise.

• Many managers treat adaptive challenges as if they were technicalproblems.

• Leadership can be learn: has to engage people in confronting thechallenge, adjusting their values, changing perpectives, and learning new habits.


The Manager’s Job and The Ways CEO Lead

Dev

• These roles require a number of skills:- Developing peer relationships- Carrying out negotiations- Motivating subordinates - Resolving conflicts- Estabilishing information networks - Disseminating information- Making decisions with little or ambiguous information- Allocating resources. (Henry Mintsberg)• To become leaders, managers need to translate their personal values into calculated action

• Self-inquiry must lead to shrewd, persuasive, and self-confident action if it is to be an effective tool

• To suceed, top-level executives must negotiate their etchicalvision with shareholders, customers, and employees

• Defining moments force us to find a balance between our hearts in all their idealism and our jobs in all their messy reality

Documents

INNOVATION & LEADERSHIP - INSTEPS Management/INNOVATION Versi... · Evolution of the Researchers Timeline Activities and Results ... Are goal and action-oriented ... INNOVATION &