alicon se framework innovation_diruption_overview

AC/SL Ike Alisson

ALICON SE – Commercial in Confidence

Framework on

Innovation and/or

Disruption

Overview

Ike Alisson

Stockholm

2016-10-27

AC/SL Ike Alisson


Table of Contents

1. ”Innovation” – Definition and Key Aspects

2. ”Disruptive Innovation” Framework

2.1 Theory of Innovation and Disruption

2.2 Business Model Impact

2.3 Purpose and Company Culture

2.4 Talent, Empowererment, Change Management,

Motivation and Engagement

3. Questions for consideration

AC/SL Ike Alisson


1. Innovation – Definition and Key Aspects - 1

Innovation starts with:

idea technology

problem

business issue

The ”Soft” and ”Hard” parts of ”Innovation”

AC/SL Ike Alisson



Purpose/Goal/ Business Model / Corporate Values

Objective Business Case Company Culture

The ”Soft” and ”Hard” skills of ”Innovation”

AC/SL Ike Alisson



Technology - processes an organization transforms

- labor,

- capital,

- materials,

- information

products and services of greater value

Innovation - change in one of these technologies

AC/SL Ike Alisson


2. Disruptive Innovation Framework

Theory of Innovation

and Disruption

Business Model

Impact on

Innovation and

Disruption Process

Talent

Empowererment

Change

Management,,

Motivation,

Engagement,

Purpose &

Company Culture

AC/SL Ike Alisson


Theory of Innovation & Disruption

(Clayton Christensen)

2.1 Disruptive Innovation Framework – Theory of Innovation and Disruption - 1

AC/SL Ike Alisson


Established Firms

- leading innovators

- risky, complex, and expensive component

technologies,

- sustaining innovations in the industries

- successful pioneers

- Entrants: technology followers.


AC/SL Ike Alisson


technologically straightforard

simpler product architecture,

less wanted

attributes valued only in

“Emerging” branches/

segments/markets


AC/SL Ike Alisson


SUMMARY-1:

The established firms were, in fact,

- aggressive, innovative

- customer & market sensitive & oriented

- customers demand “captives”

- focused on improving products and services

demanded - in search and need of higher M%

Unable to confront :

- the downward vision and

- mobility (trajectory map).


AC/SL Ike Alisson


SUMMARY-2:

Entrants targeted those ”over-looked” segments

- gained foothold/references/earned revenues

- delivered ”less”, but more ”suitable” functionality

- lower price

- functionality ”inferior” in the eyes of the large

accounts/customers


AC/SL Ike Alisson


SUMMARY:

1. Established companies were unable to confront :

- the downward vision and

- mobility (trajectory map).

2. ”Disruption” - a PROCESS

- takes time

3. Impact on the Business Model(s)

4. Not all ”innovations” are ”disruptive” and ”succeed”

5. ”Disrupt” or ”be disrupted” might be misleading

- a unit separate from the ”core”


AC/SL Ike Alisson


2.2 Disruptive Innovation Framework – Business Model Impact - 1

Theory of Innovation &

Disruption

Business Model

Impact on

Innovation and

Disruption Process

AC/SL Ike Alisson


Key Aspects of a Business model are:

NOT thinking about the business model at all ?!?!?!

Central Focus - customer need/problem solved

(“get the job done” - CVP)


AC/SL Ike Alisson


Build a Profitability (Calculation) Model

“patience for growth, but

impatience for profit”

Existing Business Model and the Customer requirements

- how much change from/to

- need for a new model /unit?!?!


AC/SL Ike Alisson


Business Model Key Aspects:

1. Customer Value Proposition (CVP)

2. Profit formula*

- Revenue (PxQ)

- Cost (DC + IC + ES)

- M%

- Assets

Backwards

- variable costs ?!?!?!

- gross margins ?!?!?!

- dependencies?!?!?!


AC/SL Ike Alisson


Business Model Key Aspects:

3. Key Resources –

4. Key Processes

All 4

2.2 Disruption Innovation Framework – Business Model Impact - 4

AC/SL Ike Alisson


a “new” business model that’s

not “new” &

“game-changing”

a waste of time and money”


AC/SL Ike Alisson


When a “New Business Model” might be needed:

Case Study:

Management judgment

When?

change in CVP, PF, KP, KP.

But it’s not always that simple

five strategic circumstances for business model change:


AC/SL Ike Alisson



Disruption

Business Model

Impact on

Innovation and

Disruption Process

Purpose &

Company Culture

2.3 Disruptive Innovation Framework – Purpose and Company Culture - 1

Talent

Empowererment,

Change

Management,

Motivation,

Engagement,

AC/SL Ike Alisson


The New Ways to Compete with Strategies for staying ahead.


AC/SL Ike Alisson



AC/SL Ike Alisson


Business experts: Purpose

a key to exceptional performance

Psychologists: Purpose

the pathway to greater well-being

2.3 Disruptive Innovation Framework – Purpose and Company Culture – 4

AC/SL Ike Alisson


- Entrepreneur at a start-up

- the CEO of a Fortune 500 company,

- a Call Center Representative or

- a SW Developer

- ……..

Your Purpose is “Your Brand”,

what “you’re driven to achieve”,

the magic that makes you tick.

It’s not what you do,

it’s HOW you do your job and

WHY


AC/SL Ike Alisson


”Company Culture” promoting

Corporate Values”


AC/SL Ike Alisson



Disruption

Business Model

Impact on

Innovation and

Disruption Process

Talent

Empowererment,

Change

Management,

Motivation,

Engagement,

Purpose &

Company Culture

2.4 Disruptive Innovation Framework – Talent, Empowererment - 1

AC/SL Ike Alisson


”Talent” is mixed with

”skill(s)”, ”knowledge” , ”experience”

”Talent” is neither ”skill(s)” nor

”knowledge” nor ”experience”

Talent is ……….

Manager’s role indispensable in

”discovering” and ”utilizing

employee’s ”talent” through ….

Few take into consideration the Peter’s

principle – ”promotion to …”

2.4 Disruptive Innovation Framework – Talent, Empowererment - 2

AC/SL Ike Alisson


2.4 Innovation and Disruption Framework – Empowererment and Talent - 3

According to research, employees’ level of motivation and engagement :

- A …….

- M…….

- P…….

“Casting” is crucial to

- utilize the employees’ talent

- to get the employee motivated and engaged and

- increase employee productivity

- Move control (accountability) to where the information is

- is there a focus on “excellence” or “avoiding mistakes”?

- is the middle-level managers holding a ”position of priviledge” or

”accountability”, ”responsibility”, and ”enhancement”?

- how “effectively” do you learn from mistakes?

AC/SL Ike Alisson


2.4 Innovation and Disruption Framework – Empowererment and Talent - 4

”Hire for an Attitude and Train for Skill”

punchline or reality ?!?!?!

Top 10 skills in 4th Industrial Revolution in 2020

AC/SL Ike Alisson


2. Innovation and Disruption Framework


Disruption

Business Model

Impact on

Innovation and

Disruption Process

Talent

Empowererment,

Change

Management,

Motivation,

Engagement,

Purpose &

Company Culture

AC/SL Ike Alisson


3. Questions to consider – 1

Why should one make business with you?

What is you main ”ways of working” principles?

What is the difference between ”success” and ”achievement”?

Do you ask questions to ”control” or ”verify” or ”learn”?

What is your attitude/aproach to ”helpful cassandras”?

AC/SL Ike Alisson


3. Questions to consider – 2

Do you feel comfortable with the ”invisible third party” – ”T”?

Do you strive/promote ”learning” and ”continous improvement”?

What are the phases of personal evolvement in a new job?!?!?

What are the factors that motivate people at work?

Are you familiar with the

”jaggedness”,

”context” and

”pathway” principles?

Rankings based on a survey of more than 3 000 executives and entrepreneurs