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1、Innovation StrategiesA workshop for the MEET U.S.Program,Facilitator:Alex F.DeNoble,Ph.D.San Diego State University,MEET U.S.,A Mandate for Corporate Innovation and New Business Creation!,New business creation must be considered the most important task of the senior executive in the existing enterpr
2、ise,especially the larger one.Without it the enterprise is unlikely to survive.Let alone do well in a period of rapid transition such as the one we live in and are likely to live in for the foreseeable future Peter Drucker,MEET U.S.,Overview of the Workshop,The workshop is organized into four parts:
3、Part I-Exploring the concept of Corporate EntrepreneurshipPart II-Introducing the concept of Entrepreneurial IntensityPart III-Developing skills in creativityPart IV-Strategies for entrepreneurship,innovation and creativity,MEET U.S.,Corporate Entrepreneurship,PART I,MEET U.S.,What is Corporate Entr
4、epreneurship?,A term used to describe entrepreneurial behavior inside established organizations which leads to the creation of new business initiatives through:product and service innovationprocess innovation and market development,MEET U.S.,Why Should Companies Invest in Innovative Activities?,Use
5、of Corporate nameUse of board of directorsImportance of strategic fitUse of marketing cloutUse of internal financingUse of technologyUse of corporate assetsUse of production and manufacturing,Use of top management as mentorsUse of corporate networkUse of corporate infrastructureUse of staff supportP
6、roduct/Service to market quicklyWin/win for corporation and employee,MEET U.S.,Challenges to Innovation Inside the Company,Corporate CultureHierarchical structureBureaucratic management styleDifficulty in managing mavericks,Punish risk-takingLack of motivationInappropriate reward systemsTurf wars,ME
7、ET U.S.,Gains from Innovative Investments,Exposure to possible new marketsAdd new products to existing marketsDevelop antennae for new technologiesTo generate capital gains,Efficiently utilize plant space,time and peopleIntegrate activities of multiple departmentsA platform for management developmen
8、tOwnership position in new companies,MEET U.S.,Exercise I,Identifying and Evaluating Innovative Companies,MEET U.S.,Entrepreneurial Intensity,PART II,MEET U.S.,Entrepreneurial Intensity,Entrepreneurship is not an“either-or”proposition!There is some level of entrepreneurship in every organization!In
9、determining how entrepreneurial and organization is we look to“Entrepreneurial Intensity”,MEET U.S.,Entrepreneurial Intensity,Entrepreneurial Intensity captures the Frequency and Degree of Entrepreneurial Initiative,MEET U.S.,To be Entrepreneurial,MEET U.S.,A Few Words About Innovation,Theres a way
10、to do it better.find it-Thomas Edison,MEET U.S.,Product/Service Innovation,New-to-the-world products/servicesNew-to-the-market products/servicesNew product/service lines in a companyAdditions to product/service linesProduct improvements/revisionsNew applications for existing products/servicesReposit
11、ioning of existing products/servicesCost reduction for existing products/services,Degree of innovation,High,Low,MEET U.S.,Directions for Innovation,MEET U.S.,Process Innovation,Major new processMinor new processSignificant revision of existing processModest improvement of existing process,Degree of
12、innovation,High,Low,MEET U.S.,Process Innovation,Where can innovation happen?Administrative systemsService delivery systemsProduction methodsFinancing methodsMarketing or sales approachesProcurement techniquesCompensation methodsSupply chain managementAnd more.The bottom line is that Innovation can
13、happen anywhere!,MEET U.S.,Risk-Taking,A decision-making under conditions of uncertainty with the possibility of incurring significant losses Two perspectives on risk:Sinking the boat riskMissing the boat risk,MEET U.S.,Sinking the Boat Risks,What happens if the company pursues a concept and it does
14、 not work out?Could result from:Poor thought-out conceptBad timingInsufficient market researchInadequate marketing mix(4Ps)Undercapitalization,MEET U.S.,Missing the Boat Risks,What is the impact of not pursuing an opportunity that would have become profitable?Could result from:Delays in acting on a
15、conceptPreempted by competitorsChanging customer needsOveremphasis on market research,financial data or input from consultants,MEET U.S.,Always remember,Theres as much risk in doing nothing as in doing something.-Trammell Crow,MEET U.S.,Proactiveness,InvolvesActionPerseveranceAdaptabilityWillingness
16、 to assume responsibility for failure,MEET U.S.,Entrepreneurial Intensity,If you always do what you have always done,you will always get what you have always gotten.Tom Peters,MEET U.S.,Exercise II,How effective is your companys Innovative Practices?,MEET U.S.,Developing Skills in Creativity,PART II
17、I,MEET U.S.,Creativity,Applying a persons mental ability and curiosity to discover something newRelating previously unrelated thingsConnecting things together in new and different waysBeing creative is seeing the same thing as everybody else but thinking of something different,MEET U.S.,Exercise III
18、,Whats wrong with todays Laptop Computers,MEET U.S.,Exercise IV,Lets reinvent the Laptop Computer!,MEET U.S.,Strategies for Entrepreneurship,Innovation and Creativity,PART IV,MEET U.S.,Setting the Environment.,Its the job of a manager not to light the fire of motivation,but to create an environment
19、to let each persons personal spark of motivation blaze.-Frederick Herzberg,MEET U.S.,Setting an Innovative Environment entails.,Envision the future Create a sense of urgencyExpect calculated risk-takingEncourage experimentationDevelop incentivesFocus on customer needsSeek feedback from stakeholders,
20、MEET U.S.,But Beware of the Pitfalls,Barriers to an innovative culture include:Too much focus on the presentNot understanding innovation processesFear of and resistance to changePunishing failureTop-down management,MEET U.S.,And finally.,The person who says it cannot be done should not interrupt the person doing it.-Chinese Proverb,MEET U.S.,Thank You!,
