company toolkit to build capabilities and open innovation strategy

Innovate Portfolio of Capabilities!

PORTFOLIO OF DYNAMIC CAPABILITIES FOR

INDUSTRY & GROWTH

Alar [email protected]

Presented at ISPIM conference,

Tours, France 2008

mailto:[email protected]

Alar Kolk:

Building New Innovation Capability

to Identify Future Opportunities

- Identify New Growth Opportunities

- Define & Implement New Innovation Strategies

- Generate & Deliver Better Ideas

- Renew Organizatonal Capabilities

Where is Your Destination?

Scope and Focus of the Research – Valu Creation and Appropriation

Internationalization of Space Related ICT companies Internationalization

of the Companies

Collaboration of the Companies

R&D of the Companies

Focus of the Study

Internationalization of R&D

R&D COOPERATION

Internationalization of Space Related ICT companies Internationalization

of the Companies

Collaboration of the Companies

R&D of the Companies

Focus of the Study

Internationalization of R&D

R&D COOPERATION

Dynamic Capabilities

Open Innovation

Alliance Portfolios

Capability InnovationCapability Innovation

Capability Growth,

TCM,TCP

Capability Growth,

TCM,TCP

Knowledge & Cognitive Systems

Knowledge & Cognitive Systems Capability

PortfolioCo-Specialization

Co-Specialization

Capability Learning

Capability Learning

Innovation Acceleration...

Time

Impa

ct

- Innovations are having a larger impact

-The lifecycle of innovations is getting shorter

Open Innovation means that valuable ideas can come from inside or outside the company (industry) and can go to market from inside or outside the company (industry) as well1.

This approach places external ideas and external path to market on the same level of importance as that reserved for internal ideas and paths to market during the Closed Innovation era2.

CLOSED & OPEN BUSINESS MODEL

OPEN INNOVATION!

1,2 H.Chesbrough, 2003

Dynamic capabilities as the firm's ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environments1.

Some dynamic capabilities integrate resources (product development; strategic decision making), others focus on reconfiguration of recourses (knowledge brokering) within firm and other dynamic capabilities are related to the gain and release of recourses (knowledge creation routines; alliance, acquisition and exit routines)2.

EXPLORATION & TRANSFORMATION

DYNAMIC CAPABILITIES

Roald Amundsen, Robert Scott, Umberto Nobile

1Teece et al 1997 2Eisenhardt and Martin 2000

Building Portfolio of Capabilities

Developing Portfolio of Capabilities

Operational Capabilities

Technological Capabilities

TransformingSeizingSensing

Open Capabilities


Learning

Innovation

Sensing: Elements of an ecosystem framework for ‘sensing’ market and

technological opportunities

Teece 2007Sensing Seizing Managing

Seizing: Dynamics in strategic decision skills & execution


Growth is top of mind for business executives. Strong, value creating

revenue growth lies within reach of corporations that pursue best practice in

strategy, marketing, operations and organizations.

For companies aspiring to grow, where to compete is just as important as how. To

choose the right battlegrounds, they must match their distinctive capabilities with

sectors where profitability growth is likely to occur.

WHERE and HOW

to Grow?

How to Grow?

Managing: Combination, reconfiguration, and asset protection skills


At any given point in time, firms must follow a certain trajectory or path of competence development. This path

not only defines what choices are open to the firm today, but it also puts bounds around what its internal

repertoire is likely to be in the future1.

Collaborative know-how is a particular type of knowledge that determines

whether companies can develop specialized knowledge via expertise

and then use it to obtain further benefits2.

STEP OUT OF THE BOX!!!

PATH DEPENDENCY

We had become stuck in our past and weren’t stretching far enough to innovate new ideas, to “step out of the box.”

David O. Swain, ex. CTO, Boeing

1Teece et al, 1997 2Simonin 1997

Developing Robust Portfolio of Capabilities




Open Capabilities


Learning

Innovation





Open Capabilities


Learning

Innovation

Internal R&D

Suppliers

External R&D

Customer

Business Model

Decisions

Culture

Platform

Knowledge M

Co-specialization

Open Innovation

Governance

Developing Portfolio of Capabilities at Start-up Phase




Open Capabilities


Learning

Innovation

Internal R&D

Suppliers

External R&D

Customer

Business Model

Decisions

Culture

Platform

Knowledge M

Co-specialization

Open Innovation

Governance

Developing Portfolio of Capabilities at Transformation Phase




Open Capabilities


Learning

Innovation

Internal R&D

Suppliers

External R&D

Customer

Business Model

Decisions

Culture

Platform

Knowledge M

Co-specialization

Open Innovation

Governance




Open Capabilities


Learning

Innovation

Developing Capability Constellation

Internal R&D

Suppliers

External R&D

Customer

Business Model

Decisions

Culture

Platform

Knowledge M

Co-specialization

Open Innovation

Governance





Open Capabilities


Learning

Innovation

Internal R&D

Suppliers

External R&D

Customer

Business Model

Decisions

Culture

Platform

Knowledge M

Co-specialization

Open Innovation

Governance

Portfolio of Capabilities & Open Business Model

Open Capabilities



Technology Capabilities

Portfolio

PORTFOLIO OF DYNAMIC CAPABILITIES FOR

INDUSTRY & GROWTH

Alar [email protected]

Presented at ISPIM conference,

Tours, France 2008

mailto:[email protected]

company toolkit to build capabilities and open innovation strategy

Business

sensing seizing managing

sensing market

distinctive capabilities

closed innovation era

internal ideas

d ynamic capabilities

specialized knowledge

external path