organizing innovation
DESCRIPTION
In this presentation we will explore the successes and failures of established and emerging companies across multiple disciplines and how they organize for innovation. I believe that innovation occurs when you foster ingenuity by enabling employees and develop opportunities with strategic management.TRANSCRIPT
ORGANIZING INNOVATIONUSING STRUCTURE TO FOSTER INGENUITY
INNOVATEVERB / MAKE CHANGES IN SOMETHING ESTABLISHED, ESP. BY INTRODUCING NEW METHODS, IDEAS OR PRODUCTS
HOW DO WE CREATE INNOVATION?
INGENUITYNOUN / THE QUALITY OF BEING CLEVER, ORIGINAL AND INVENTIVE
OPPORTUNITYNOUN / A SET OF CIRCUMSTANCES THAT MAKES IT POSSIBLE TO DO SOMETHING
INGENUITY + OPPORTUNITY = INNOVATION
UNDERSTANDING STRUCTURAL INGENUITY
• Existing Companies
• Emerging Companies
• Types of Structure
• Knowledge
• Investment
Apple Mac Pro Assembly Line / Austin, Texas
THE OLD GUARDTHE SUCCESS AND FAILURES OF A “TRADITIONAL CORPORATION”
CAR MANUFACTURING
• Mature market
• Process Innovation
• VW Works Council*
• Product Innovation
• Honda City**
*Bernie Woodall. 2014. After rejecting UAW, VW workers may still get work council. Reuters, February 16.**Nonaka, Ikujiro “Knowledge Creating Company,” Harvard Business Review; Jul/Aug 2007, Vol. 85 Issue 7/8, p162-171, 9p
MARKET S-CURVE
Time
Growth
UTTERBACK-ABERNATHY MODEL
Product Innovation
Process Innovation
NEED FOR ORGANIZATION
Gaps in R&D
• Safety / Seat Belts• Comfort / Air Conditioning• Technology / Electric Car• New Markets / Small City Cars
FOSTERING INGENUITY + FINDING OPPORTUNITY
• “Let’s Gamble”*
• Middle - Up - Down**
• Job Rotation*
Product Innovation Process Innovation
• Works Council
• R&D
• Internal Competition*
*Nonaka, Ikujiro “Knowledge Creating Company,” Harvard Business Review; Jul/Aug 2007, Vol. 85 Issue 7/8, p162-171, 9p
**Numagami, T., Karube, M., & Kato, T. 2010. Organizational Deadweight: Learning From Japan. Academy of Management Perspectives, 24(4), 25-37.
NEW KIDS ON THE BLOCKCREATING INNOVATION FROM SCRATCH
Steve Jobs John LasseterEd Catmull
ORGANIZING WITH A CLEAN SLATE
• Flexible
• Communication
• Teams
THE CROWD TECHNICAL TEAMPIXAR’S DEVELOPMENT OF ANIMATED AUTONOMOUS ANTS
The Pixar Story. Dir. Leslie Iwerks. Disney, 2007. Film
A Bug’s Life, 1998
INDICATORS TO A NEW STRATEGY*
• Manifesto
• Anthology
• Infrastructure to Replicate
• Congenial Technology
• Market
• Organization
*Roy Peter Clark. 2014. What it takes to create a new kind of journalism. Poynter Institute, April 7.
THE BRAINTRUSTHOW PIXAR SELF-CRITIQUES
Pixar Screening Room / Emeryville, California
Catmull, Ed. Creativity Inc. Random House. 2014. Print.
STRUCTUREWHAT IS IT GOOD FOR?
TYPES OF STRUCTURE
Decentralization
Centralization
OrganicMechanistic
PROS AND CONS
Type Pro Con
Centralized Tightly controlled planLittle input from company as
a whole
DecentralizedAccess to informationIdea generationIncrease marker orientation
Difficult coordinationAvoids radical innovation
Hinders strategic management
MechanisticMore efficient
Predictable, incrementalHinders innovation
Drives away creatives
OrganicSharing of knowledge
Fosters innovation
Relies on employee commitment
Shane, Scott. 2009, Technology Strategy for Managers and Entrepreneurs, Englewood Cliffs, NJ: Prentice Hall, ISBN-10: 0131879324
BEST OF BOTH WORLDS?
• Create new units?*
• Give middle management more freedom for middle-up-down?*
• Increased flexibility to foster innovation?**
• Separate directors for each “type”**
*Numagami, T., Karube, M., & Kato, T. 2010. Organizational Deadweight: Learning From Japan. Academy of Management Perspectives, 24(4), 25-37. **Organizing From Scratch: The Learning Lab Denmark Experience (A)
KNOWLEDGEA COMPANY IS NOT A MACHINE BUT A LIVING ORGANISM,
Nonaka, Ikujiro “Knowledge Creating Company,” Harvard Business Review; Jul/Aug 2007, Vol. 85 Issue 7/8, p162-171, 9p
HOW TO CREATE KNOWLEDGE
• Center of human resource strategy
• Types of knowledge
• Middle-Up-Down
• Clear obstacles
Nonaka, Ikujiro “Knowledge Creating Company,” Harvard Business Review; Jul/Aug 2007, Vol. 85 Issue 7/8, p162-171, 9p
TACET
EXPLICIT
TYPES OF KNOWLEDGE
• T to T• E to E• T to E• E to T
Nonaka, Ikujiro “Knowledge Creating Company,” Harvard Business Review; Jul/Aug 2007, Vol. 85 Issue 7/8, p162-171, 9p
INVESTMENTORGANIZATIONAL RESOURCES
Skype Google
AirBNB
SLACK RESOURCESBUILDING BEYOND A COMPANIES CURRENT OPERATING PLAN
Shane, Scott. 2009, Technology Strategy for Managers and Entrepreneurs, Englewood Cliffs, NJ: Prentice Hall, ISBN-10: 0131879324
Dyson
SO IS ALL OF THIS SUSTAINABLE?
WHY MIDDLE-TOP-DOWN HAS FAILED
• Inward thinking lead to a disconnect from the market
• Shortage of strategic thinkers
• Promoted poorly
• Can’t tell a good idea from a bad one
• Heavy load on middle managers
CIRCLE OF DEADWEIGHT
Middle ManagementFreedom
Promoted Over Time
Lack of Strategic Thinkers
Lose ability to vet ideas
Rely on new middle managers
Heavy workload on middle managers
Freeloading managers
IS THERE ONE SOLUTION?NO.
UTTERBACK-ABERNATHY MODEL
Product Innovation
Process Innovation
NEED FOR ORGANIZATION
Gaps in R&D
MARKET S-CURVE
Time
Growth
REFERENCES
• Bernie Woodall. 2014. After rejecting UAW, VW workers may still get work council. Reuters, February 16.
• Nonaka, Ikujiro “Knowledge Creating Company,” Harvard Business Review; Jul/Aug 2007, Vol. 85 Issue 7/8, p162-171, 9p
• Numagami, T., Karube, M., & Kato, T. 2010. Organizational Deadweight: Learning From Japan. Academy of Management Perspectives, 24(4), 25-37.
• The Pixar Story. Dir. Leslie Iwerks. Disney, 2007. Film
• Roy Peter Clark. 2014. What it takes to create a new kind of journalism. Poynter Institute, April 7.
• Catmull, Ed. Creativity Inc. Random House. 2014. Print.
• Shane, Scott. 2009, Technology Strategy for Managers and Entrepreneurs, Englewood Cliffs, NJ: Prentice Hall, ISBN-10: 0131879324
QUESTIONS?