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EssentialsMasterclass series Value Network Creation

2008 - 2009

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Our Value Network Creation Masterclass Program aims to pass on to selected companies something of what we have learned in recent years about generating and managing innovation through networks. We believe that networks will be the biggest source of innovative value in the near future.

The world of innovation is changing fast – and this is bringing a number of tough challenges. Perhaps the most significant of these involves how we organize and manage our innovation efforts. Increasingly, the best innovations are generated not by isolated, in-house teams, but by a variety of partners connected in Value Networks. These partners are often from quite different disciplines, different parts of the value chain, or even different industries. It is precisely where their areas of interests and expertise overlap that innovation takes place. Indeed, some of the most striking innovations result from deliberately combining fields that have never been combined before, such as “design and organization”, “hospital and hospitality” or “coffee and electronics” [Senseo!].

But managing such diverse and loosely linked groups is not easy. The partners may differ greatly in how they see the task at hand, and they probably lack a common “language”. So if companies are going to succeed in highly innovative markets, they need to know how to generate effective cooperation between partners, and develop the full potential of co-creation within the network – only then will that network become a real Value Network.

Introduction

Stefano Marzano – Philips DesignMaarten Königs - SIOO

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• Market and organisational demand.• Personal/professional development issues of participants.• Theory and skills related to innovative alliances.

Fundaments

Goal• Improving competences to guide innovative alliances in different

stages. [from idea to implementation]• Improving sensibility for different professional types of

comprehension: information, formation, form.• Improving competences to cross borders and induce transfer between

different professionals.

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Personal intakes

Start ConferenceMaster classes [6]Public Seminars [2]Consulting teamsEditorial teams

Closing conference

Route

Personaldevelopment theme

Organisational demand

Professionaltheory and skills

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Participants• Ordina• Philips Design [2]• DHV• ABN Amro • NPK• Avans Multi Media Academy Breda [2]• Johnson Controls

Program board with • Josephine Green [Philips Design]• Paul Iske [ABN AMRO] • Gert Kootstra [Census]

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Personal developmentthemes

Organisationaldemand

Professionaltheory and

skills

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Personal developmentthemes

Organisationaldemand

• The nowadays Da Vinci is an alliance• Design makes tangible what is in our minds

Professionaltheory and

skillsStefano Marzano

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Personal developmentthemes

Organisationaldemand

Professionaltheory and

skillsPersonal development themes, I want to:• develop methods for selecting partners and maintaining network.• develop new educational concepts in network.• position in network/stakeholder analysis.• learn how to drive a team; generate and maintain executive power.

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Innovation is about: • hard work• real people• finding solutions for not well articulated needs• investigating intensively• clear thinking • mindfulness and • a strong belief in enlightenment

Personal developmentthemes

Organisationaldemand

Professionaltheory and

skills

James Woudhuysen

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Information, Formation, Form

• Information, formation, form: basic forms for modelling, most professionals have 2 blind spots.• Information as organising and colonising power: analysts, scientists, policymakers.• Formation as organising power: team builders, managers, entrepreneurs, coaches, mothers.• Design/form as organising power: design management/experience economy /anthropology.

Plan Information Truth Scientist Deduction

Team Formation Values Team builder Induction

Design Form Aesthetics Designer Seduction

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Pre meeting

Paul de RuijterTrends volgen, breken of maken?

Lean Value Chain and Valuable Constellations

First alliance task: connect individual values andneeds to group values and needs• Define individual fingerprint• Exercise interviewing• Co-design the program• Match each individual need to program content

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Starting conference

work

inspiration

demand

me as professional

Gap / theme

case

sources

personal details

Personal detailsWork specificsPersonal inspirationDemand in workPersonal sources to deliver on demandProfessional characteristicsGaps between demand and sourcesProfessional case

Kick-off start

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Master Class 1: Vision and framework

At the fuzzy front end of innovation in alliances• Josephine Green: future is about quality of life more then about consumption, we will shift from pyramids (vertical power)

to pancakes (horizontal connectivity). No more one size fits all supply-demand chain, new types of leadership.• Jaap Toorenaar: be able to design your big idea in brief essence [‘one team, one task’; ‘society that means you!’].• Roland van Kralingen: Make close connection with contexts, markets and consumers. Find the crucial insight, the secret

that touches people and adds value for them [Madonna: girl power and self esteem; H&M: fashion for peanuts].• Geert Gratama/Robert-Jan Hofhuis: Work out your idea in a clear and appealing key image.

Value anorexia

A deep and intuitivelyunderstanding of a major

Newconsumer motivation

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Master Class 1: Vision and framework

What we experienced• Being precise and appealing in what you plan to do [the big idea/dot at the horizon] is not that easy. • The way you bring your idea to the world has to include an insight and has to be carefully designed.• Figuring out what others are planning to do is even more difficult.• Offering variety as such is not a direct competitive advantage; people ask for back-up in navigating their life:

design and packaging can help them to choose out of the many.• Good concepts constrain on the one hand and enable on the other.

Tools• Mapping the idea out together helps to make it tangible for the group as a whole, it leads to saturation in the

end, the group becomes more and more silent: ‘Is this is what we mean? Gottit? Yes we’ve gottit!’].• This fase of forming an innovative alliance needs careful attention Do not skip this part of the formation to

fast, do not jump to expressions and/or solutions too early: mind your essence, mind your language, mind your form.

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Master Class 2: Cool collectives

Cool collectives are able to perform into flow. What induces flow?• Erik Heijerman: works at ISVW, a house of philosophy, defined by Wittgenstein as ‘the art to liberate common sense out of

the traps of language’. That exactly what the Significa, the founders of the ISVW institute, were up to. Cool collectives behave collective and coherent but not locked in.The design of the place helps to get in flow, innovation emerges where masters meet in a free but inspiring space where initiatives can flourish.

• Wim van Haverbeke: Develop a strategy and a working structure where big companies have small venture around them. Spin innovation in when it becomes valuable. Spin innovation out to let it grow outside without disturbance by corporate culture as long as you are not sure.

• Group: what is inspiring me? Making connections via images and songs.• Annewieke Vroom and Jos Stuyfzand about experience.

According to Annewieke and the Kyoto school, in pure experience there is no difference between part and whole. When we experience without analysis, concepts, comments and critiques we can, like a poet, grasp new meaning that language cannot really handle (yet).Jos: by putting experience central, consumers/users get a central role. Next to technical characteristics of products the more intangible aspects of the product become important: style, look and feel. Designers are always closest to experience.

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Master Class 2: Cool collectives

What is Open Innovation?

‘Open innovation is the use of purposive inflows and outflows of knowledge to accelerate internal innovation and expand the markets for external use of innovation, respectively.’

Chesbrough, Vanhaverbeke, WestOpen Innovation: Researching a New Paradigm (Oxford, 2006)

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Master Class 2: Cool collectives

What we experienced• Flow can be there at once, it is difficult to steer, it is important not to be locked-

in or fearful. • Without making thoughts and goals tangible [in form, design] it can make you

feel free floating.• A business-model is like an engine, it needs a proper composition and sensitive

tuning.

Tools• Connect on what inspires you.• Embed ideas about open innovation in an overall strategy.

  tacit explicitemotion touch seduce

ratio demonstrate convince

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Master Class 3: Nodal Leadership

How to lead without a formal position and a hierarchy?

• Jan den Hollander: connect your behaviour to what your alliance partners value important. Analyse stakeholder needs and drives: What makes Sammy run? Deciphering the codes might induce the group to run.

• Mark Blaisse: where ever I am, I try to connect on what people drives and show my real interest. Not having a formal position makes me no treat to others and gives me entrance to usually closed spaces. All people like attention.

• Marco Vonk: groups differ in their value sets. A sensitive leader connects to these value sets and their development and recognises the integrative and the differentiative steps in the development of groups.

• Filip Vandendriessche: for managers it should be forbidden to have solutions and it should also be forbidden to have no criteria for solutions.

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Master Class 3: Nodal Leadership

What we experienced• My own leadership style, am I one of the crew or do I climb to the top?• Nodal leaders tell stories in stead of theories or policies.• How fast we jump from ‘what I value important’ to ‘what is important’ or to

‘what we value important’, without checking the we.• Try to understand before being understood.• The habit of most minds to work solutions out alone and fight over

concurrent solutions.

Tools• Analysing value drives of individual stakeholders.• Analysing value drives of groups/systems.• Management funnel, back to criteria.• Analyse about what important subjects you talk and about what not.• Analyse with which important persons you talk and with who you don’t.

Management Funnel

Problem

Goal

Criteria

Solution

OUTPUT

INPUT

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Seminar: How alliances accelerate innovationTheo Camps• Innovation takes place in a bigger [ecological] environment. When an

environment is highly networked on a topic we call it a cluster. All participants open up to this environment, innovation is no longer closed.

• Clusters form a strong sort of competitive advantage.• For a good cluster we need talent, tolerance, tools [Florida].• Europe is competitive in tolerance [bohemian index].

Robert Kirschbaum• DSM means Doing Something Meaningful, that’s where I innovate for.• Distinguish in different sorts of innovation: incremental, big change and

radical. Use incubators for radical innovators.• Don’t do everything inside the company: small initiatives get killed in an

corporate environment.• Monitor innovation internal and external with a strict monitoring system.• Don’t fight strategic decisions: accept if a project is stopped by management,

even if you think that project in itself is good, be humble.

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Master Class 4: Value property

What is the value everyone brings in? How to we divide? • Dave Jongejan: an investor checks on two things: do I trust this team and do I see a

valuable business model?Making the model requires talking, checking, counting, talking, talking in order to get the best fitting interrelations and figures in the spreadsheet = fine tuning the engine.

• Frederic Guillanneuf: IP in itself is (potential) value which needs to be protected.• Jan Erik Baars: the value of design. Four design strategies:

- brand driven strategy: who? Nike- function driven strategy: what? Microsoft- style driven strategy: how? Apple- purpose drive strategy: why? Google

• Jack Mama

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Master Class 4: Value property

What we experienced• Models seems straightforward but the devil is in the detail.• Where do I stand myself:

- Being [who am I?]- Meaning [what do I want to achieve?]- Engaging [for who I want to work?]

• Individual discussions with coaches on information [Marian Hijmans], formation [Babette Niemel], form [Marieke Sonneveld ]

Tools• Make a value chain analysis together• Map out the business model together

aspirational promise

(e.g. sustainability projects)

concept car(e.g. next simplicity,

RSNA, )

specific campaigns

(e.g. brand campaign)

innovation debate

(Design Probes)

collaborative innovation

(ToDo - Mo)

incrementalinnovation

social cultural trends &

narratives

future focused persona research

market research & data mining

Create viable options Build emerging business Extended & defend core business

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Master Class 5: Embedded entrepreneurship

How to connect entrepreneurship in the alliance to my corporation?

• Theo Backx: sharing experience in corporate dynamics. How to be flexible enough to go with the flow, but keep on your own track.

• Discussing personal cases with group members: being each others counsellors.• Frank Bosboom: Discussing the work of Scot Morgan, the unwritten rules of the game.• Mike Overdijk: visual thinking. Don’t be afraid, and draw. In 1,5 hour getting to some visual

essentials regarding your idea and your alliance.

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Master Class 5: Embedded entrepreneurship

What we experienced• Make my own case visible on a poster helps to introduce fast and to extend the

picture during discussion.• Drawing appears to be simpler than you think, it transfers directly, energises and

is self-explaining.• Visualising relates to story-telling and nodal leadership.• Take good care of yourself, preserve your health and vitality, even when times are

hard.

Tools• Make my own case comprehensively visible on a poster.• Use Scott-Morgan: what are the triggers, what are the motivators and who is in

position to supply the motivators?• Visual thinking.• Do not believe the management knows it all.

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Seminar: Trends & forecasting in time of crises

James Woudhuysen• Fight against fatalism, strive for new enlightenment, we are not guilty.• Don’t avoid risks but face them, investigate and overcome them.• The financial crisis has been caused by lack of real innovation.• As Europe we have to wake up and start inventing and creating value again.• The new outside the box thinking is inside the box thinking.

Peter van Veen• We are only able to forecast for about 1-2 years.• Trends are about big societal issues, forecasting is about concrete expected outcomes.• Scenario’s are a good way to prepare for the unknown.• You’ve already done your homework, so you can react fast in case of sudden changes.

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Master Class 6: Methods and tools

How does this all integrate

• Frank Bosboom: Business Methods: making a comprehensive plan.• Frank Bosboom: Group Methods: becoming an entrepreneurial group.• Steven de Waal: Investor Methods: designing and tuning a business engine.• Hans Robertus/Oscar Pếna: Form Methods: connect to experience.• Maarten Königs: Alliance Methods: confused but on a higher level.

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Master Class 6: Methods and tools

Oscar Peña on design

• Design is about making appropriate communication tools.• Design is a method of thinking that can let you see around corners.• Reduce everything to the essential but do not lose the poetry.• We are in the communication business, we have to become storytellers.• Be in the world: be broad, read, travel, interpret what is happening out there.• Innovation is not linear: be able to understand consumer, prototype and

quickly filter the good, the bad and the ugly.

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Closing Conference

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Reflections on participants

• High energetic, smart, achievers.• Tend to stay in the zone of: we all know where we talk about, aren’t we?• Nobody should get the impression that we could be destabilised.• Dare to approach: see your value for the other parties and other way around.

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Reflections • Cross borders: If you get stuck in information switch to formation or form.• Look for those themes nobody talks about and those people nobody talks to.• Be ambassador of two worlds: both the internal and external alliance.• Be very sensitive for switching from model to story and the other way around.• Only variety beats variety.• N+1: in first stage of innovative alliances we see the becoming of new organisational

form.• Alliance partners seek to build a totem upon which they can attribute.• Ambiguous search in this stage leans on ways the partners use to comprehend.

In general they attribute along the lines of becoming of plan, of team and of form. • Leading professionals in alliances use to originate in 1 domain and have to work on 2.• Draw it out and discuss, combine with story-telling.

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Handouts and articles - 1 Alliance essentials [Maarten Königs]

Managing the Form, Function and Fit of Design [Angela Dumas / Henry Mintzberg]

Casus open innovation DSM [Emmo M. Meijer]

The Four dimensions of intelligent Innovation [Boozallen]

Cultural Creatives in NL [Willem Brethouwer en Linde van der Pol]

Handout ‘coaching’ [Maarten Königs]

PARK DMN Lecture Mythbusting [Tim Selders – Paal Smith-Meyer]

Cultural Creatives Lifestyle and LOHAS Markets [Paul Ray]

Open Innovation in pratice [Robert Kirschbaum]

The Secrets to Predictable Innovation [Strategyn / Tony Ulwick]

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Handouts and articles - 2

LSI – Lifestyle Inventory

VNC toolkit English

VNC toolkit Dutch

Group Dynamics

Business Methods

Alliance Methods

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Movies

Here’s to the crazy ones

Guitar hero

Innovation Adidas

Dove

March pinguins

Facebook

Exceptional times

Think different

Apple 1984

Count the bounces

Interview James Woudhuysen

Interview Stefano Marzano

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Photos

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Maarten Königs

Frank Bosboom

Hans Robertus

CV’s

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SIOOMaarten Königs maartenkönigs@valuenetworkcreation.comFrank Bosboom frankbosboom@valuenetworkcreation.comPhilips DesignHans Robertus hansrobertus@valuenetworkcreation.com

Contacts