Leadership & Innovation
Metaphors of conflict
Conflict as a war: we shot down that idea Conflict as opportunity: what will take to resolve this agreement? There might be something that can be considered to make us learn how to solve the problem Conflict as a journey: let's search for common ground and all learn something useful People are sick of conflicts, the more they disagree the more they grow. Sometimes companies want to hire people that always disagree and not yes man, in order to learn from the conflicts. The more is the level of disagreement, the more powerful is the outcome.
Collaborative communities
Contributions of external innovators range from mix-and- match offerings to coproduction • Governance is informal with orientation toward highly socially embedded, norm-based interactions • External innovators primarily have cooperative relationships among one another • A range of extrinsic and intrinsic motivations may drive external innovators' activities
Advantage of collaborating
Faster way to get needed skills or resources Reduce asset commitment making the company more flexible Learning from partners Sharing costs and risks Build cooperation around a common standard
user-centred approach to innovation (market pull approach)
Focused on analysing the current socio- cultural context Focused on understanding what the consumer wants from the products/services she purchases
Difference between innovation assets and complementary assets
INNOVATION ASSET: those assets necessary to enter in a new market with innovation, to create innovation. (ideas, engineers, etc) COMPLEMENTARY ASSET: it is an asset that is not needed to create innovation. They are used to win on the market, once the innovation has already been created (advertising, efficient production, etc)
INNOVATION OF SOLUTION
Incremental vs radical Architectural vs component based Competence enhancing vs competence destroying
Functional roles preformed by Group members
Task roles: how to reach the goal • Maintenance roles: relationship oriented roles, to positive affect the relationships and interpersonal dynamics between the team members.
What is better between radical and incremental innovation?
You can go on with incremental innovation for a while, but at a certain point there will be the risk of being overcome by a radical one It depends on your position in the market: if you are a big company, incremental innovations may be sufficient Radical innovation comes with higher risks and resource-requirements
Management vs. Leadership
"Management is about coping with complexity, leadership is about coping with change." Leaders: - Set Direction - Align - Motivate Manager: - Planning and Budgeting - Organizing and staffing - Controlling and problem solving
THE OPEN INNOVATION PARADIGM
"Open innovation is a paradigm that assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as the firms look to advance their technology" From «know-how» to «know-where» as a distinctive capability in technological innovation. We are changing completely the perspective, KNOW-WHERE, which means where to find people with specific capabilities, not only for developing new ideas but also technologies.
Roles of a manager
- Interpersonal: ceremonial/symbolic duties - Informational: collect/transfer information. One of the main roles of a manager is to align people communicating right information and understanding which information should be given to whom. - Decisional: choose between alternatives. They must be able to take decisions.
Skills of a manager
- Technical: apply specialized expertise - Human: work with other people. To manage a group of people you should be able to interact with them. - Conceptual: diagnose complex situations. They must be able to create models and analyse how variables are connected and work on them.
Golden rules for effective teams
1) Cooperation 2) Trust 3) Cohesivemess
How to create a vision?
1) Dreaming 2) Communicate your vision to others - Inform, Inspire and engage
THE BIG FIVE PERSONALITY DIMENSIONS [second theory]
1) Extraversion: outgoing, talkative, sociable and assertive [introversion] 2) Agreeableness: trusting, good-natured, cooperative and soft headed [disagreeableness] 3) Conscientiousness: dependable, responsible, achievement oriented, persistent [Unconsciousness] 4) Emotional stability: Relaxed, Secure and unworried [Emotional instability] 5) Openness to experience: Intellectual, imaginative, curious and broad minded [tight-mindedness]
Roger diffusion of innovation
1) Innovators: - Willing to take risk - Highest social status - rich - close to other innovators 2) Early adopters: - Leadership - High social status - Rich 3) Early majority: - Average social status - opinion leadership 4) Late majority - Scepticism - Below average social status - poor 5) Laggards - no opinion leadership - lowest social status - focused on traditions
Team working pitfalls
1. Asch Effect - conformity pressure 2. Groupthink - the practice of thinking or making decisions as a group, resulting typically in unchallenged, poor-quality decision-making. 3. Social Loafing - The individual effort decreases when the size of the group increases. 4. Escalation of commitment - Persisting with a losing course of action, even in the face of clear evidence to the contrary
4 main drivers that help a good product to become a DD:
1. Complementary assets: distribution, brand, services, capacity -->There are some assets that are needed to innovate. 2. Strategic Maneuvering: you need to have a strategy to win on the market, keep the positioning and defend it. --> EX) Beta and VHS 3. Better understand of the customer needs 4. Rules and laws: you can push governments in promoting a technology instead of another.
three pillars of sustainability
1. Conserving the environment along with using resources efficiently (environmental) 2. Improving the standard of human living (social) 3. Advancing long-term economic competitiveness (economics)
12 communication roadblocks:
1. Ordering, directing and commanding: 2. Warning, admonishing and threatening: 3. Exhorting, moralizing and preaching: 4. Advising, giving suggestions or solutions 5. Lecturing and giving logical arguments 6. Judging, criticizing, disagreeing and blaming 7. Praising and agreeing 8. Shaming, ridiculing and name-calling 9. Interpreting, analysing and diagnosing 10. Supporting, consoling, sympathizing and reassuring 11. Probing, questioning and interrogating: never asking questions 12. Withdrawing, distracting, humouring and diverting:
3 levels of meaning
1. The thing, idea or feeling that a SOUND, WORD, SIGN represents 2. The things or ideas that somebody wishes to COMMUNICATE 3. The special importanace or PURPOSE of something
transactional and Leadership difference?
1. Transactional leadership try to maintain the same contest; instead transformational leadership try to change the contest (environment). 2. In transactional leadership the leader gives objectives and expects results based on accountability. In transformational leadership the leader wants to empower his followers. 3. Transactional keeps the people in line, whereas transformational pushes them beyond the limits.
Two meanings: of leading teams
1. leadership OF a collaborative effort 2. leadership AS a collaborative effort: the leader is not in control of the group, but has responsibility for guiding and coordinating the process by which the group decides upon and carries out actions to accomplish its goals
Triune Brain
3 different layers: 1. Reptilian brain: we share this part of the brain with reptiles. This part is in charge to react in an instinctive way. 2. Limbic brain: thoughts connected with this part of the brain are emotions and social things (social thinking). This part is owned also by many other beings, animals who have social life. 3. Neocortex brain: the most complex thought we can think about is self-consciousness (perception of ourselves) and it happens in this layer of the brain. It is not owned by all beings, only some animals have it.
DIMENSION OF INNOVATION
A 3d grid with z-axes: Solutions (HOW) x-axes: Meanings (WHY) y-axes: Markets (WHO)
Group [definition]
A group is defined as two or more individuals, interacting and interdependent, who have come together to achieve particular objectives, and that share collective norms and have a common identity.
difference between a group and a team?
A group misses the common responsibility characteristic. Team is a small number of people with complementary skills who are committed to a common purpose, performance goals, and approach for which they hold themselves mutually accountable
The main leadership traits? [First thoery]
A leader trait is a physical or personality characteristic - Intelligence - Dominance - Self-confidence - Level of energy and activity -Task-relavant knowledge
Conflict
A process that begins when one party perceives that another party has negatively affected, or is about to negatively affect, something that the first party cares about.
What is a product-service system?
A product-service system is the sum of a product, a service and all the communication that is built around the combination that allows to create value for the customer and/or create a new meaning. PRODUCT SERVICE SYSTEM: product + service + communication
listening principles
Acceptance: you should acknowledge that feelings are always true (even if I am wrong, the feelings are something that I have really experienced Empathy: taking the perspective of the person in front of you Genuinity: you need to show that you are listening
Project Structure (task force)
Advantage: Project oriented and high motivation for team members Disadvantage: Duplication/Low flexibility of resources When to use it: When failure is not possible Autonomous teams: PM full control
Matrix Structure:
Advantage: efficiency in resources and project oriented Disadvantage: Complexity and conflicts When to use: innovative and low cost strategy Lightweight: Project manager is planner and controller (---) Heavyweight: PM Negotiator
Functional structure
Advantage: efficiency in use of resources Disadvantage: Low control on project objectives and coordination difficulties When to use: when you can divide the project into autonomous sub prohects (not innovative)
Types of teams
Advice, Production, Project and Action
the ambidextrous organisation.
An ambidextrous organisation is one that is able to run its daily activities effectively and efficiently and to be a disruptive innovator at the same time. The radical innovation and continuous improvement parts should be sufficiently separated in order not to confuse the organisation too much as well as sufficiently integrated to manage the process of innovation.
Creative process
An idea is nothing more nor less than a new combination of different steps: • Preparation, starting point of the creative process when there is a problem or a need to be fulfilled or solved. It is the definition of the boundaries of the problem by collecting information about the problems. • Concentration, synthesis of the material by processing it • Incubation, the phase in which an unconscious process of processing data where we can mature the information digested in order to have the eureka moment • Illumination, the a-ah moment • Verification, check if the idea is feasible or if there are constrains or opportunities
The most traditional definition of Innovation
An innovation is the implementation of a new or significantly improved product (good or service), or process, a new marketing method, or a new organisation method in business practices, workplace organisation or external relations.
What 2 factors does a company need to take into account when capturing value
Appropriability regime Two main factors, Characteristic of a technology and of the law that affects the ability of competitors to imitate the new creation • Nature of technology: some ideas are easier to imitate (i.e. Design or Music) while some other is quite impossible (i.e. Software as code is hidden) • Regulation environment: patents, copyright allows to avoid other to capture the value. If the technology has unique codification, makes the patent stronger (i.e. Pharma and medicines) Complementary assets allow to bring new idea to market • Other technologies / Products • Manufacturing • Distribution • Services
How can you innovate in the value capturing system
By changing: - Revenue model - Enterprise model - Ecosystem
Closed vs. Open innovation principles
C: The smart people in the field work for us O: Not all of the smart people work for us. We need to tap into outside knowledge. C: Focus on Internal R&D O: External R&D can create significant value as well C: If we discover it by ourselves we will get to market first O: We don't need to originate the research to profit from it C:First to commercialize wins O: Building a better model is better then gettting first to market C: If we make the most ideas we win O: If we exploit the most internal & external ideas we win. C: Control our Intellectual property O: We should profit from others us of our IP and buy theirs if that helps us.
Levers to enhance team creativity
Clear rules and instruction Techniques Diversifying the team and enhancing networking
5 ways to leverage on crowdsourcing:
Collective knowledge: Development of knowledge assets or information resources from a distributed pool of contributors. Collective creativity and contests: Tapping on creative talent pools to design and develop original art, media, content or business ideas. Cloud labour: Leveraging of a distributed virtual labour pool, available on-demand to fulfil a range of tasks from simple to complex Civil engagement: Collective actions that address issues of public concern Crowd funding: Financial contributions from online investors, sponsors or donors to fund for-profit or nonprofit initiatives or enterprises
Product Innovation Charter (PIC)
Combination of strategic and operative perspective, in order to transfer it to other stakeholders
Task-oriented v.s. Relationship-oriented behaviours
Could leadership be more related to leaders BEHAVIOURS rather than to leaders TRAITS? CONCERN FOR PRODUCTION: Task-oriented behaviours: Focus on tasks, interest in structure, control and routines to attain organizational goals and objectives. CONCERN FOR PEOPLE: Relationship-oriented behaviours: Focus on people's well- being, interest in promoting collaborative interaction among organizational members and supportive social climate.
Design-push approach
Design-push approach: Process driven socio-cultural and semantic competencies. Product/process innovation that typically revolve around intangible attributes of the product. In this case, you are proposing new solutions to customers, even if you do not know if they are going to work or not.
Green People
Details Oriented [structured - limbic] Strengths: Very organized Likes methods and procedure Needs time to trust Everything need to be in order Needs time for decisions Follows rules and rituals Precise and meticulous It is simple to make them change their mind They are very powerful and good in what they do Weaknesses: Closed, rigid, slow: they are not flexible and very slow in analysing the situation Fears of changes Does not likes surprise MOVING TOWARD CLOSURE
Three main steps for active listening
Door openers (to start): in many cases I can open the doors for what you want to tell me, that I'm ready to listen. Listen is silent: without speaking, without doing something else. Mirroring: mirror the content and the feeling
Netnography
Ethnography on the Internet
SEE WHAT PEOPLE DO [observable needs]
Ethnography: to passively and subjectively observe a given context: the researcher must become part of the research situation. Researcher needs only a general question as a starting point. It is one of the main tools used to develop user-centred innovations.
Vision process
Everything starts from a vision, something an innovator has inside, which needs a process to make it real. Starting from the existing solution, what we can see, we need to go ahead, finding a new proposal. To do it, we need to understand what is the existing meaning and why we are using a certain product and the existing experience of customers, then we need to go back and use this information to propose a new solution.
Team External and Internal perfomance dimensions
External: - Producitivity - Learning - Integration Internal - Cohesion - Viability
The innovation Funnel
Funnel = Filtering + Tunelling When creating an innovation, potentially many ideas can be created. At a certain point, there should be a selection of the ideas, according to the strategy of the company. Main phases of funnel: Ideas Screening Projects Budget Evaluation Selection
Blue People
Goal Oriented [structured - Cortical] Strength: Concise and clear Ask for facts Tendency to do things themselves Quantitative Time and resources management: efficient Logical reasoning Weaknesses: Criticism just to criticise Harsh and without empathy: very transactional people: Minimizes Quibbles: they take wrong decisions many times because they do not consider in a detailed way the situation GETTING DOWN TO BUSINESS
Solution-Meaning-People framework.
HOW? The answer is the solution that you want to deliver in order solve the problem fulfill the need. WHY? This deals with what is the meaning that we are delivering to the customer. This concept is particularly known in the marketing field. What is the meaning that the customer attaches to the solution? Different individuals will attach different meanings to the same solution. In order to understand this, we need to study people (the customer).
SHARED LEADERSHIP
Horizontal leadership Shared leadership is a dynamic, interactive influence process among individuals in groups in which people share responsibility for leading. It requires: A leader above who empowers, enables, creates the condition for the team to be self managed/lead Team design, on boarding, training and development Example: Goose V-rotate hægt að specializa, sá sem er bestur að leiða hverju sinni leiðir.
KANO MODEL: value vs performance
In order to understand where is it more important to invest the resources, we can cluster the different performance according to the Kano's Model: Linear functionalities: products are used by customers for specific functionalities. The better the performance, the better the value. Delight services: not necessary services, but if present customers are delighted. They are value added that make new customers buy the service. E.g. a chocolate at the end of a flight. Must have: if not present, customers are very upset. They are those performances that must be included in the service, otherwise customer will very likely exclude us.
How to talk about meaning?
In the first stages of our process, we use metaphors to communicate.
Different levels of creativity in an organization
Individual characteristics Team Characteristics: everybody can be creative, so it is important to foster team's creativity Organizational characteristics: organization can be designed to inspire people
Business model innovation for sustainability
Innovations that create significant positive and/or significantly reduced negative impacts for the environment and/or society, through changes in the way the organization and its value-network create, deliver value and capture value (i.e. create economic value) or change their value propositions.
Market-pull approach:
Innovations that typically involve the way in which the product is commercialized in terms of organization, distribution and/or advertising: • Product presentation • Distribution channel innovations • Incremental product performance innovations • Sales process innovations In this case the starting point for innovation are customers, we need to know them, understand their needs and adapt innovation to their requirements.
Dominant Design
Is the architecture winning on the market. Winning architecture able to summarize innovations introduced by previous products. They were able to take and put together what was good in many different solutions, but it is not only a matter of understanding what is good in other products, but also to understand what is really needed by users. In most cases it was mostly a process of rationalization of existing solutions.
GESTALT THEORY
It explains 3 ways to stand and behave in life: 1. About-ism: it is a person who talks a lot about things, without really living them. What he says is not connected with reality, he says something, but in reality things are different. it is a person who talks a lot about his life, projects and nothing happens 2. Should-ism: it is a person who lives by a set of rules and values, but he actually never investigated if these rules and values come from someone else or from the external world. it is a person who tries to control himself and every situation, but we can see that he is not very comfortable with himself. He may be a good person, but with like an automatic pilot without being conscious of what he does. 3. Is-ism: it is a person who lives his life in a spontaneous and authentic way. He feels ok about what he is and he is happy. It is a very spontaneous and authentic person
What does design do?
It gives meanings to things. Language --> message --> meanings
JoHari window model
It is a tool that helps to enlarge the knowledge in a group about themselves and to create a better environment. The model helps people to better understand their interpersonal communication and relationships. Can be used in group dynamics, team development and intergroup relationships. There are two dimensions: • Knowledge I have about myself • Knowledge others have about myself Known by self Unknown by self Know by others: Open Area - Blind Area Unnown by others: Hidden Area - Unknown area Self-disclosure: Cheap talks can be used to share information, or team building activities to let people get in touch with each other. Feedback: What people realize from your behaviour. Using feedback can help to reduce the blind area, to understand thing you do not see or you did not realize.
Innovation Strategy
It is the combination of 5 decisions: • Exploring: planned discovering opportunities by sensing the environment and researching • Focusing: select the opportunities to focus on, the core competences to develop a portfolio • Capturing the value: how to capture the value from an innovation through different instruments • Sourcing: how and where to take in the capabilities and knowledge to innovate • Supporting: how to communicate innovation (to pre-empt competitors actions) or sourcing for funding
Traditional innovation funnel
It is the traditional innovation process that we should follow to develop an innovation. It is more related to the creativity part of the innovation process, rather than the change of meaning process. It is divided into 3 phases: 1. Researching and investigation part: we start with huge amount of ideas and projects 2. Development part (start-up, corporation): we select them, they are usually filtered by the R&D department 3. New products/services: they are placed in the market
Ethical Leadership
It means to act properly in the environment you live. Leader needs to be ethically correct because the leader inspires and influence other but being credible, if the leader is non ethical then he won't be credible.
SEE WHAT PEOPLE MAKE [Tacit Needs = What people test] [Latent Needs = What people dream]
Lead user analysis: Those users find a solution on their own Beta testsingtaking the users on board, it is a co-design where they give feedbacks and their more involved Open source: user toolkit --> users are active, they create the innovation
SERVANT LEADERSHIP
Leaders put other people in front of them, thinking before about them instead of themselves.
Connection between leadership and design
Leadership means to seek and look for the problems, meanwhile design is about to question the problem and create a solution.
Innovation Process:
Main phases: • Opportunity identification and selection - Input: ideas - Process: Analysis of competitive arena - Output: Product Innovation Charter • Concept generation and evaluation - Input: PIC - Process: Goals, Target Market and Assumptions&contraints - Output: Product Concept statement • Product architecture design • Development • Launch
MANAGERIAL GRID - Blake & Mouton
Managerial grid assumption is that a manager adopts "fixed" behaviours y-axes: Concern for people x-axes: concern for production: Types: Country-club management: A friendly climate brings people to fair productivity Impoverished management: Minimum effort is enough for delivering the organizational belonging Middle-of-the-road-management: A good performance occurs when need of people and needs for production are balanced Authority-compliance management: People's needs do not have to interfere with the final goal Team management: Committed people interdependence through common goals brings to trust and good relationship
How to manage teams according to Whole Brain Model
Managing a team means working together and build relationships, which means not behaving in the same way we behave with others (family and friends for example). We classify people and adapt our behaviour according to the typology of persons we have in front of us.
INCUMBENT CURSE: WHY ARE RADICAL INNOVATIONS SO DIFFICULT FOR THE INCUMBENTS?
Marginal Costs (path dependency): once you are on a S shape curve, doing just one more step in it is not so expensive, while to rebuild the solution for another innovation (building a completely new curve) is more expensive. Uncertainty about feasibility and profits: if you stay on your curve you know what you are doing Over estimation of the technology potential (technology Myopia): you know so well your technology and you might not see clearly that you are already at the end of the curve Innovation implies change management
sustainability [definition]
Meeting the needs of the present without compromising the ability of future generations to meet their own needs
3 reason why a change in meaning can create a value for a company:
Misalignment: Society changes, but companies get stuck. It is important to keep in pace with changes. Undifferentiating: Sometimes all products in an industry go into a same direction, without being able to distinguish them. New technology: shapes the meaning of thing and changes the life of people. Technology can be used in two ways: • technology substitution (same meaning but better performance) --> new technology and more performing • epiphany technology (different meaning and performance) --> different experience and meaning
Techniques to foster creativity generation
Morphological analysis: Analysis of the idea on two dimensions • Key parameters of the idea • the alternatives (different scenarios) Makes you thing of solutions/combinations you have never thought of before Brainstorming: with different rules to exploit it maximally • Clear focus and rules • Build on ideas of others • Defer and suspend judgments • One conversation at a time • Quantity is essential Mind mapping: Starting from a single idea, through this tool we can expand it with branches and new ides Brain writing: ideas expressed on a piece of paper to produce idea at each one's pace, similar to brainstorming • Ideas are listed on sheets of papers • Shared periodically via a central pool • No turn-taking, participants work at their own speed • Anonymity (but not necessarily) Nominal group technique: structured form of brainstorming, to be sure that everybody can participate equally. Each member must write down their ideas and present them, following a discussion and select the the idea. Six hats for thinking: Every member can think about an idea under a specific perspective or view-point. • Logical positive: try to look at the positive site or aspects of the idea • Judgment and caution: perspective that foster conflicts, focusing on what could go wrong and judging on the tasks that the group is achieving. • Creativity and alternatives: New possible and innovative ideas • Overview process and control: supervisor over the rest of the group in order to coordinate the process • Intuition and emotion: related to the idea, the feeling of the future users Facts, Figures & Information:
Network Externalities
Network externalities are the effects on a user of a product or service of others using the same or compatible products or services.
On what does creative team performance depend on
Norms, cohesiveness, size, diversity, roles, tasks, problem-solving approaches.
Metcalfe's Law
Number of unique connections = n*(n-1)/2
What can we innovate?
Object --> Product vs service vs system vs business model vs organization vs process Scope --> Architectural vs Component innovation Source --> Technological innovation vs innovation of meaning What vs how --> Product vs process innovation How new/different --> Radical vs incremental innovation (rate of the innovation)
Outside --> In process
Once we generate new ideas, we need to understand how to use them. We select them starting from a large amount of data. Design thinking: Crowdsourcing:
How can we cluster leadership functions
PURPOSE: you need to be able to describe and understand what is the purpose of a leader. Envision Align Establish direction PEOPLE: once you have a vision, you engage, inspire, etc people according to your purpose Engage, inspire, motivate Empower, coach Lead by example PERFORMANCE: how do you support and challenge people to make them doing things Support Challenge
Technology-push approach:
Process driven by scientific or technological competencies. Innovation that typically revolve around the physical attributes of the product. You can propose to customers something which they do not expect
LISTEN TO WHAT PEOPLE SAY [explicit needs]
Questionnaires: The quality of the information collected with questionnaires is only speculative and not based on experience. Focus group: giving to a group of people the opportunity to experiment the innovation. High quality but little information Interviews
Discontinuous innovation
Radical advances that may significantly alter the basis for competition in an industry
Red People
Relation Oriented [Unstructured - limbic] Strengths: Enthusiastic Shares emotions and sensations: Likes to be in the spotlight Social intelligence Is sensitive and passionate: "cry people" Open and talkative: Team worker Weaknesses: Insisting and excessive Can be naive and touchy-feely: red people get offended by blue people Is too compliant KINDLING THE SPIRIT OF COMMUNITY
The crisis of the traditional approaches
Rising costs of innovation development: there was a higher competition in the technological field Shortening life cycles of innovations: the lifecycle of products became shorter
A MODEL FOR TECHNOLOGY INNOVATION: S-SHAPE CURVES
S-shape curve that represents the time based evolution of a single parameter of a technology. Limit growth L. Constant innovation effort (b) 3 phases: - Initation - Development - Maturity At the beginning or in the middle of the development stage it is better to stay with the already existing technology, while in the maturity phase it is better to put money on a new technology
Sustainability oriented innovation (SOI)/Sustainability driven innovation (SDI)
SOI: Orientation of the business (Low KPIs in term of sustainability, so low reliable) SDI: initiatives driven by stakeholders who drive businesses to innovate in a sustainable way
TYPES OF COLLABORATIVE ARRANGEMENTS
STRATEGIC ALLIANCES: formal or informal agreements between two or more organizations (or other entities) to cooperate in some way. JOINT VENTURES: a particular type of strategic alliance that entails significant equity investment and often establishes a new separate legal entity. They create a new company to do that. LICENSING: is a contractual arrangement granting a licensee the rights to an asset (proprietary technology, trademark, copyright, etc.) owned by the licensor.
Emotional intelligence
Self-Awareness: understand your mood and the effect on others Self-Regulation: ability to control disruptive impulses and emotion Motivation: passion to work Empathy: skill in treating people according to their emotional reactions Social Skills: ability to manage relationships and building networks.
Incremental Innovation
Small improvements in existing products or operation
Main intervention for creative organization
Structural organizational mechanism - Flatter Matrix - Diversify Process and Procedures mechanism - Team meetings - Dailies Value - Freedom of expression
Through which areas can you change a company business model to become more sustainable?
Technological: - Maximise material and energy efficiency - Create value from waste - Substitute with renewable and natural process Social: - Deliver functionality rather than ownership - Adopt a stewardship role - Encourage sufficiency Organisational - Repurpose for society/enviroment - Develop svale up solutions
Freeconomics
Technologies are growing so fast that services connected with them are almost free.
Architectural innovation
Technology or process change to fundamentally change a component or element of business
strategies towards innovation
Technology-push approach Market-pull approach Design-push approach
Generational project
The 5 generational projects are 3 platforms and 2 shelf innovations (components)
The five Conflict-Handling modes
The Thomas-Kilmann Conflict Mode Instrument (TKI) is designed to assess an individual's behaviour in conflict situations along two basic dimensions: Y-axes: Assertiveness: the extent to which the individual attempts to satisfy his or her own concerns. Focusing on myself and my needs X-axes: Cooperativeness: the extent to which the individual attempts to satisfy the other person's concerns Get in a conflict and try to understand the other persons' need COMPETING: Ah Cl COLLABORATING: Ah Ch COMPROMISING: Ah Ch AVOIDING: Cl Al ACCOMODATING: Al Ch
sustainable innovation
The establishment of new products, processes, and/ or management systems, where environmental, social, and economic goals are their foundations.
DISRUPTIVE TECHNOLOGIES
The main idea is to start in a secondary market and then grow very fast to reach and win in the main market.
INNOVATION AND COMPETENCES
There is a strong link between competences and the ability to innovate. Competence-destroying: discontinuities require new skills, abilities, and knowledge in either process or product design. The skills needed for the core technology shift, causing power and structure shifts in organizations. They are much more difficult to be developed by companies because they are riskier and require totally new internal environments to be developed, in fact they are usually initiated by new firms. It looks like competence-destroying innovations are more long lasting. Competence-enhancing: discontinuities are "order-of-magnitude improvements in price-performance that build on existing know-how within a product class". These discontinuities tend to consolidate industry leadership.
INNOVATION DYNAMICS: Abernathy - Utterback
They identified three main phase in a technology based market with technological discontinuities. PRODUCT INNOVATION: 1. Fluid phase: high rate of innovation until dominant design is found 2. Transition phase: degree of innovation gets lower 3. Specific phase: product are the same PROCESS INNOVATION (production process): 1. Fluid phase: do not invest a lot because of product uncertainty. 2. Transition phase: Dominant Design found, no they try to minimize cost
Concept Generation Tools
Those tools can be used in the convergent phase in order to visualize the idea generate and put it into real setting through a concept. • Personas: Profiles of users, habits and feeling in order to visualize the final idea • Storyboard: Story that shows the experience in using our products, which are the pros and cons in using it
NATURE VS NURTRURE
Through practice, learning, dedication and motivation it is possible to overcome nature. We can still improve. The same with leaders, some people are born leader, but it is not enough, they need to train themselves.
Innovation for value capturing
Through: - Revenue Model - Enterprise model -Ecosystem
Trait vs. incremental approach:
Trait approach: leadershp is an acquired skill, highly influenced by the enviroment Incremental approach: leadership is a trait or a set of abilites
Why work teams fail:
Unrealistic expectations resulting in frustration
Yellow People
Vision Oriented [unstructured - Cortical] Strengths: Choice based on intuition Is parallel (multi tasking) Has innovative ideas: Takes risks and tries out changes Likes to differentiate himself from others Likes unconventional approaches Can be provocative Weaknesses: Is unrealistic Takes too many risks Focuses on marginal things Can be confused and confusing BREAKTHROUGH THINKING
Connection between leadership and vision
Vision is the direction of the company, what will be meaningful for the company. Leadership allows to direct the company toward the problems you want to address.
Process to create new meaning
We need to consider the 3 types of purpose Utilitarian: I light a candle because I want to cover, with its fragrance, the bad smell of smoke from the kitchen . Symbolic: I light a candle because I want to show that I care for visitors. Emotional: I light the candle because it reminds me of Christmas or because my senses are pleased by its scent.
THE DDI (DESIGN DRIVEN INNOVATION) PROCESS
We need to explicitly question existing assumptions about what is good or valuable and what is not, so we need to criticise existing paradigms Criticise means building on an idea, not destroying it. Only criticising we can innovate. Criticism innovates through judgment. 4 step process: 1) Individual Reflection - Objective: Create a vision through new meaning - Input: You as a human being - Time: 1 month 2) Pairs - Objective: criticism current vision - Input: Vision - Time: days 3) Radical Circle - Objective: deeper discussion - Input: vision, meaning - Time: 2-3 days 4) Interpreters - objective: challenge proposed innovative direction - Input: vision, meaning - Time: 2-3 days 5) Customer - Objective: Test on them so we are able to communicate the product the right way
INNOVATION OF MEANING
When companies innovate the meaning of their products, they often don't source innovation by the market, but they instead push innovation by proposing a new meaning to their customer.
Critical mass-bandwagon effect
When the benefit from externalities outperforms the benefit from product usage.
Lock-in effect
When the cost for switching is higher than the benefit. The value of the network becomes even higher then the benefit provided by the product itself.
Derivatives
When you can take a part of a product and keep it constant for a certain period of time (long time) and create new products only adding other parts,
GLOP (General labeling of people)
Why is it that we automatically put labels on people and then start acting in accordance with those labels? Human brain takes shortcuts...we should use behaviors, not labels, to describe people without judgments. We need to learn how to overcome these labels through critical and constant observation and analysis. The brain notices only behaviour of a person according to the label provided to a person and only search for behaviours that confirm the label. It is hard to change the first label, as it is very hard to accept that that person is not the way we labelled.
Two sided market
a market in which all systems have the same system model. Transactional two sided market: Visa is a service provided by merchants to customers, thanks to visa platform developed by a different firm.
Platform
a set of components, along with and the linkages among them, common to different products. Note: a platform is NOT a product itself
Management [definition]
coordinating the efforts of people to accomplish goals and objectives using available resources efficiently and effectively. In a changing environment all terms of this definition keeps changing. To manage a company nowadays implies to be an INNOVATOR. the aim is to get things done through other people in organizations
Role conflict
different role senders expect divergent roles from the focal person
Triple Bottom line
equity, environment, economy
Innovation life-cycle:
every idea/innovation of the market has a life cycle. It cannot stay on the market forever. It needs to be managed to maintain it properly during the phases of its existence
Role expectations
how others believe one should act in a given situation
Transactional leadership
involves motivating and directing followers primarily through appealing to their own self-interest. Sequence of transactions where the actions of subordinate result in either a reward or a punishment. The main idea is related to accountability. Contingent rewards: Set SMART goals and provide various kind of rewards for successful performance Active management by exception: Actively monitor and take corrective action to prevent mistakes Passive management by exception: intervene only when standards are not met. Punishment as a response to unacceptable performance. Laissez-faire: followers get many opportunities to make decisions. He abdicates responsibilities and avoids making decisions.
Attribution theory
is a well-researched psychological theory that has shown that people tend to simplify reality when they make causal inferences. Research on attribution theory has shown that people mistakenly tend to attribute more causal power to salient objects. Salient = most noticeable (myndirnar af leadership á google)
Crowdsourcing [definition]
is defined as the process of obtaining needed services, ideas, or content by soliciting contributions from a large group of people, especially an online community, rather than from employees or suppliers
Visual communication
is important because allows to be more effective as people memorize information faster when they are visual. A picture or a paint can contain more information than a written concept. People remember 80% of what they see around, only 20 % of what people read
Human centered design
is problem solving approach, focused on solution tailored on user's needs. It is an answer to market needs that are not yet exploited by anything in the actual market. There are three main phases: • The Inspiration Phase you'll learn directly from the people you're designing for as you immerse yourself in their lives and come to deeply understand their needs. --> inspiration from users through divergent approach • The Ideation Phase you'll make sense of what you learned, identify opportunities for design, and prototype possible solutions --> convergent approach, to focus on single concept • The Implementation Phase you'll bring your solution to life, and eventually, to market. And you'll know that your solution will be a success because you've kept the very people you're looking to serve at the heart of the process
Average obsolescence time
it means measuring the time between the moment in which you release a new product and the moment in which that product is on the market at the half of the price:
Push:
it's you proposing something new to the market, through technology or design. You propose to a market you already know (needs and preferences).
"CONTINGENCY" leadership:
leadership: there is no a "one-best-way" leadership when managing creativity, it depends on the phase of the process (divergent or convergent) and to the situation. Divergent: Participative Style Convergent: Directive Style
Difference between right and left brain?
left part of the brain is very structured while the right part is completely unstructured
Platform strategy
means putting a lot of effort in doing the platform, also much more money that the ones used to develop a single product, in order to use it as a starting point to develop many different products.
What can be innovated in a company?
o Products o Processes (production, assembling, etc) o Services (intangibility, but services need products to be delivered. The idea of intangible services and tangible products is old, because today we think they are very connected. Almost all services are based on physical products and people buy products for the services they can provide to them) o Packaging (like Tetrapack, Active-packaging, like salad and tuna that are immediately ready to be eaten, without cleaning them and without oxygen inside because it would react with the food and ruin it, but with argon) o Business model (Marketing strategy, logistics, etc) We can innovate everything in a company and we need to do it.
The meaning of thing
often the value of thing is not proportional to price paid. There are many things that have no price but have a high value for people. Those objects have a meaning for people that cannot be translated into an economic value. Meaning of things changes over time. it is important to reinterpret the meaning for people to create a new solution.
CYCLIC MODEL FOR INNOVATION
once there is a technological discontinuity, companies should start again
Role perception
one's perception of how to act in a given situation
Functions of a manager
planning, organizing, directing and controlling activities and resources. They get a result.
Innovation
refers to a novel and more valuable solution. In blurred environments, where the concept of value is undefined, solutions are complex and resources are not controllable, innovation requires an act of making sense, setting directions and influencing, rather than just planning and controlling To promote and realize innovation nowadays implies to be a LEADER
Role ambiguity
role sender fails to communicate role expectations to the focal person
Supportive Feedback (Positive):
support a behaviour
Leadership
the aim is to influence (group of) individuals toward the achievement of a vision or goals. Create and communicate a vision Manage people Provide the support for performance achievement Leadership is not a matter of coordination, it is a matter of aligning the visions of people and their purposes. In leadership there is no share of goal and objectives, but a share of purposes
Empathic design
the best way to understand customers is to be the customer
BIG BANG DISRUPTION
the disruption thing seems quite slow, due to the time needed to go through it. Today, we see that there are many disruptions, but they are all like Big Bang, very fast and with no time for reaction. The time needed in the past for disruptive technologies was accounted in years, while now for Big Bang disruptions we use hours. There is a catalyst which is accelerating the process in an incredible way. The catalyst is INFORMATION: the more you are able to spread effectively the information, which goes around rapidly, the more "early adopters" you will have.
Pull:
the perspective is different, because you look at customers trying to understand their characteristics, so you follow the market.
ORTHOGONAL TWO SIDED MARKET
the reader pays something which is not enough to pay the paper. It would be impossible for me selling the newspaper with such a low price, so the advertising system is the one supporting the newspaper industry.
Role overload
the sum of expectations from role senders from a focal person far exceeds what the focal person is able to do
cross network externalities:
the value perceived by merchants increases with the increase of number of customers.
Why is it important to have the appropriate amount of conflicts
to develop ideas
Whole Brain Model [short overview]
tries to find the default setting for all human beings (graph): any thing and emotion can be classified with this graph Graph: x axis: LEFT: structured RIGHT: unstructured y axis: . UP: Cortical Down: Limbic
Transformational leadership
trying to transform other people, informing them about things which were unknown, pushing them beyond their limits, to improve and transform them in something better. Attitudes: (I-in fjögur) 1) Individualized consideration: genuine concern for the needs and feelings of followers. Use personal attention to push them to the limits 2)Intellectual stimulation: challenge them to be innovative and creative. Challenge for higher level 3) Inspirational motivation: inspire and motivate them (charisma) 4) Idealized influence: being a Ideal role model. "walks the talk"
How a company can decide on which idea to focus?
x ás: Coherence, with current position/brand/strategy à stronger coherence, lower risks (otherwise new investments) y ás: Relevance, Higher relevance means higher impact on the return/profits Screen-off: no interesting opportunities Promising: interesting as there are opportunities and existing assets but it seems too good. There is the risk to overvalue the opportunity, and keep doing the same thing (incremental innovation but not radical) Sustaining: opportunities that do not require huge investments and not really interesting but are necessary to increment the portfolio Transformation: situations in which the company is not well positioned (i.e. Apple and phone industry originally) where there are high risks but a very good payoff. It is necessary otherwise a company will keep doing the same.
Personalization in services [ variety/volume grid]
y - axes: Variety x - axes: Volume • Mass service: large amount of customers in a small period of time (very fast). Normally, the service is provided by a machine with a high degree of standardization • Professional (personalized) service: it is a service provided in a different way to each single user. They are based on people and not machines, because they are more flexible and more discretionally. The time needed is very large. • Service shops: In between (hotels)
Design - Driven innovation
y - axis FUNCTION low-incremental performance improvment mid- radical performance improvement high - new function x - axis MEANINGS low- adaption to the evolution of cultural and social models mid - Significant change of meanings High - Generation of new meanings SJÁ MYND - GULUR STIGI
Theory: SITUATIONAL LEADERSHIP
y - supportive behaviour (relationship) x - Task behaviour (guidance) Telling: he provides specific instructions and controls the performance, the things are proceeding in the right way Selling: he is still explaining, controlling and correction mistakes but the same time he is increasing the explications in term of supporting behaviour Particapting: facilitating. A facilitator helps to take decisions. Delegating: when people already know what to do and what is the best to do, you can delegate them giving them all the responsibility just watching and doing nothing React according to the readiness of the followers. Unable to able & unwilling to willing.
COLLABORATIVE INNOVATION FRAMEWORK
y axis: Participation UP: open Down: Closed x axis: Governance Left: Hierarchical Right: Flat Innovation Mall (O/H) Innovation Community (O/F) Elite Circle (C/H) Consortia (C/F)
Corrective Feedback (Negative):
you are doing something that I would like you not to do anymore
Spinoff:
you develop a technology which value can be used by other players and not for the company itself
Threads of creativity
• Conformity: Apprehension to express ideas because of others' judgment or because influenced by organizational culture. • Production blocking: Members of a team may be prevented from generating new ideas because they are distracted by hearing the contributions of other members while waiting for their turn to participate • Performance matching: The performance of people working within a group tends to converge over time because they come from same context, society, religion etc.
Main complementary assets
• Distribution channels • Complementary technologies • Services • Competitive manufacturing
Divergent + Convergent Thinking
• Divergent phase, where there is the creation of alternatives • Convergent phase, when the team makes the choices Creativity is a function of the right idea at the right time.
Collaborative markets
• External innovators supply variants of mix-and-match, substitutable components • Governance is formal with orientation toward arm's-length, rule-based, contractually oriented and market relationships • External innovators primarily have competitive relationships among one another • Profit motive is central to driving distributed innovation
Tuckman's Five-Stage Theory of Group Development
• Forming: first meet where people define their roles • Storming: once people have developed the awareness of being part of a group, there is the storming phase where conflicts arise. Conflicts are good or a bad thing? There are different kind of conflicts: on the relationship plan (fighting for the personalities that may overcome the others) or on the task plan (it means that we have different and complementary opinions). After this we have defined what are the attitudes and leadership personalities, so for this reason it is a crucial phase • Norming: expected behaviours of everybody are settled • Performing: there may be conflicts on tasks to reach a goal A group that manages to evolve through these stages becomes a team. • Adjourning phase: to close the experience of the team, because people have to elaborate the abandon of the team, like celebrating a sort of funeral of the team after having accomplished a goal
What 3 kind of people advance the team
• Glorious bastards: classic super boss, manager focus on the purpose. It cares for people only in function to achieve the target. People are the mean to get there, so the creation of team of super smart people is a result. • Nurtures: totally the opposite, similar to coach, focus on people in order to achieve the target. Leaders that look like mentor by nurturing the environment • Iconoclasts: People do alone their work but they become source of inspiration for other that follow them.
Advantages of open innovation
• Lower time and costs to generate innovations • Lower risks in the generation of innovation: we are taking ideas generated from other companies of the market • More revenues • More profitable innovations • Stronger internal growth
Barriers of open innovation
• Not-Invented-Here (NIH) and Not-Sold-Here (NSH) syndromes • Lack of absorptive capacity (how to internalize the knowledge that comes from outside, it is difficult to understand deeply something that has not been developed by you) • Loss of control over core competencies • Managerial complexity
Three layers of innovation
• People: they choose thing for a reason • Meaning: the purpose that drives the people and explain their actions • Solution: the way a thing can satisfy people desires (product- service-process)
Name 3 different strategic orientations for an opportunity
• Proactive, company who is creating the future. It can be slow but it has its own strategy to shape the environment (i.e. Apple and the release of i-phone). Creation of an environment that fits the company. • Reactive, play as a fast follower (second mover is not losing a lot). First follower is just little bit slower than first mover just waits to be ready so accepting to be second • Anticipative, company tries to be the first and anticipating he market on what is happening out there
Types of users:
• Representative users (e.g. core drivers) --> Mass market • New potential users (e.g. less wealthy users) • Precursory users (e.g. teenagers) • Non-users (non-drivers) • Fringe users (one-handed drivers) --> niche of the market • Advanced (extreme) users (modifiers) • Un advanced users (short mileage: lower requirements: disruptive)
Group Effectiveness
• Those with a strong sense of purpose and strategy rapidly achieve high performance • Similarly, groups that begin with a positive social focus
Why people work? Three models
• Traditional: salary is the main reason why people work, for higher salary they can compromise the quality of their life and work. What workers do is less important than they earn for doing it • Human Relations: it is more than a salary, people work because they want to be connected and recognized. It is more than just money, people are motivated by other factors, like creating an impact on other individuals • Human Resources: people want to contribute to meaningful goals they have helped to establish.
What does the Concepts define
• Who: Target customers (and other stakeholders) • Why: Meanings (aspirations to ignite/delight and needs to be satisfied, values associated to the product) • What: Experience (from the perspective of the user) • How: Solution