How old is Google, what is its present market
value?
When did you buy your first mobile phone? How
often do you buy a new one?
When did you send your first e-mail, when did
you first surf the web?
Thirty years from now, what will be the
percentage of people under 27 living in the so
called developed world?
What is the value of software export of India?
A few questions?
Learn or Unlearn?
The Nan-in story
The problem is not just how
to get new, innovative
thoughts into your mind, but
also how to get the old ones
out!
“If you want a paradigm
shift, it is not enough for the
old professors to retire; they
must die!” (Tom Peters)
Routine vs. Creativity
• How much knowledge our students use in everyday life
• How creative are you on your job
• Are you a rational person?
Creativity - Innovation
Creativity
Ability to solve complex problems in an
original way
Ability to produce ideas
Innovation
Applied creativity
Implementation of ideas
A few Problems
1. Hunter and pray
2. if y = 25, x = ?
3. Captain of a ship with
musical instruments
4. Circus problem
AHA Effect
• Problem definition
• Confusion
• Frustration
• Incubation
• Illumination
(aha effect)
• Solution
• Creativity = Freedom
• Lack of creativity = Lack of freedom
• Introducing more constraints than necessary
• Perception of a problem is the problem
• Wishful thinking
• Expecting only one, the best, solution
• Affection for simetry, elegance, regularity
• Extremes are preferred (black-white, good-
bad, logical-illogical, right-wrong)
What do we do Wrong?
• We are affraid of change - 1:2:3
• The typpical attitude: “I like change, I am all
for change… Just don’t make me change!”
• Courage is not the absence of fear but rather
the judgement that something else is more
important than fear. » Ambrose Redmoon
• Let us become the change we seek in the
world. » Mahatma Ghandi
What do we do Wrong?
Convergent
Divergent
Intuitive - Rational
Vertical
Lateral
Left – Right side of the
brain
Human Reasoning
•Sherlock Holmes
•IQ tests
•Education and
learning
•Logic, analysis
•Rational models
Convergent Thinking
•How to make tea
•Structure, precision,
logic, quantities
•Algorithms (steps,
phases)
•Procedural knowledge
•Manual, Cook-book, SOP
(standard operating
procedure)
Vertical Reasoning – ISO Logic
•How to make a drink
•Why not approach
•How else approach
•Imagination-based
•Idea generation process
•Key to creativity and
innovation
Lateral Reasoning – ISO Logic
•Understanding dynamic
environment
•Removing blocks and barriers
to creativity
•Developing Serendipity
(idea-supportive)
environment
Creativity Management
•Socrates: I know to know
nothing!
•Einstein: All is relative!
•Little Prince: A man can
see clearly only with his
heart. The essence is
invisible to eyes!
Key Concepts
Rules of Creative Corporation (Peters)
• Each year make a list of 10 key ideas on which the company stands and question it
• Change regularly the product/service list
• Newcomers should make for at least 25% of department directors
• Sell 30% of company regardless of success (every decade)
• At least 20% Mgmt Board members should be independent outsiders
• Change the headquarters every 15 years
• Have well argumented discussions
“Curious Corporation” (Peters)
• Hire inquisitive people
• Offer jobs to freaks (Ted Turner, George Lucas, Steven Jobs)
• Empower the young
• Make the employees use vacations
• Support training and education
• Create informal groups
• Organize discussions with outside guests
• Measure and coach creativity
Innovative Team
Endless creativity
Full adaptability
Inspirational environment Organizations based on love
Ideas compete on equal footing
Freaks are heroes
Tasks are selected, not administered
Authority is not based on position
Team structure is natural, not imposed
Teams are self-organized
Leaders serve
Resources are attracted and not budgeted…
Successful Projects
On time
Within a budget
Meeting the goals
Accepted by the clients
Make us proud and fulfilled
Help us grow and develop
Provide happiness
Build self-confidence…
Innovative Worker
Decides when, where, with whom to work
Selects his team
Treats everybody else as a client
Does not let formal organization run his life
Wants to be taken seriously
Asks from a boss to serve and inspire
Actively participates in strategy setting
Works without control because he loves the work
Does at work what he does the best
The Old and the New
Rationality
Profit
Pragmatism
Hard Intelligence
Efficiency
Capital
Structures
Organizations
Information
Outcomes…
Emotions
Sustainable Growth
Values
Soft Intelligence
Creativity
Human Capital
Processes
Networks
Communication
Meaning…
Corporate Venturing
• Corporate venturing – an attempt to foster creativity throughout corporation, technology innovation in particular
• How to produce and implement as many innovation based on “internal resources”
• Creating and using the corporate entrepreneurial spirit
• Identifiy and put in full use business opportunities within a company
• Entrepreneurship models inside a company Intrepreneurship, Corporate Venturing (CV)
Why Corporate Venturing, Interpreneurship?
• Big companies are unable to succesfully manage
innovation within traditional hierarchical
organization
• Many firms, especially hi-tech, create their own
infrastructure intended to allow for creation of
startups and support business initiatives (i.e.
Nokia’s Open Innovation Laboratory, Xerox
Technology Ventures, AT&T's Lucent Technologies,
Hewlett Packard's Agilent Technologies, 3Com's
Palm Pilot) .
• Thus big systems help survive and grow ideas and
initiatives that would most likely die out otherwise
Innovation Management Dilemmas
• New seed or “weed”
• Adequate initiative support
• Internal and external manpower
• Develop alone or cooperate
• Grow slowly or make a big leap
New seed or “weed”
• It is hard to pick the best ideas among many
• Bad strategic judgement examples: IBM and PC – operating systems development
AT&T – reluctance to engage in Internet development
Barnes and Noble – inability to recognize Internet potential and fight Amazon.com.
• All these companies have studied trends and market potential but have failed in applying their own innovative ideas
• Their innovation seed has been treted as “weed”
Initiative without Support
• New ideas are usually created by middle managers who are often unwilling to become entrepreneurs
• Lacking top management support, their initiatives will most likely die out
• In order to succeed, such initiatives need proper “infrastructure” (book keeping, HRM, legal support, marketing…).
• Only if they get support can they devote attention to a new product or service under development
Internal or external manpower
• Creators of new ideas or projects must fight tough corporate bureaucracy in order to get needed resources, particularly people, mostly because such new initiatives don’t fit into existing formal organization, and human resource development schemes
• New company does not need to use the existing manpower, they can get needed talent and management from outside the firm
• New company can create environment to attract talent which would not fit into existing budgets and compensation management arrangements
Develop alone or cooperate
• Internal development often meets barriers that don’t exist in case of external partners
• New enterprise can be based on strategic partnerships that do not depend on internal resources and limitations (budget, people, knowledge, material resources, technology, bureaucracy…)
• New ideas usually call for new partnerships, new technologies and new networking. All these will make them more conpetitive. Within the old system such ideas cannot grow properly supported
Continuous growth or big leap
• New ideas in big systems rarely get adequate
support, more often they are initiated as
small-scale projects in order to minimize risk
• It helps competition get information, causes
delays and unables capitalization of good
ideas
• CV model provides each idea with
appropriate budget, depending on its
genuine market potential .
Xerox Technology Ventures
Based on “ameba organization” (Kyocera)
Xerox Technology Ventures has a ten year experience in establishing companies based on internal ideas that would otherwise be lost
XTV had initial capital of only $30 million (venture fund). In ten years market capitalization of newly generated companies amounted to $750 million.
The parent company establishes a firm which simulates innovation incubator
The number of such newly generated businesses trippled in the last five years
They are called Intrapreneurs and combine the power of a big system and flexibility of small scale businesses based on innovative ideas
Nokia "Open Innovation" Laboratory
“Let's find the best ideas where ever they are".
• Nokia Venturing Organization creates and supports new businesses related to the core business ("the renewal of Nokia“).
• Not just one b ut two companies: NVP & Innovent
• NVP (Nokia Venture Partners) is investing in “mobile and I/P related start-up businesses”.
• Innovent is directly supporting innovation and initiatives unrelated to the core business
Thanks!
Any comments,
questions,
suggestions?
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