Leadership and innovation summary PDF

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EXAM shorts Innovation strategies Strategy Characteristics Additional NotesTechnology push Technology driven (performance oriented*) -Physical attributes -not enough to merge two existing products -not enough to merge existing functionalities -Starts from research -it may serve as the foundational t...

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EXAM shorts Innovation strategies

Technology push

Strategy

Characteristics -component innovation : Add a component to enable a new FUNCTION to an EXISTING product

-Technology driven (performance oriented*) -Physical attributes -not enough to merge two existing products -not enough to merge existing functionalities -Starts from research -it may serve as the foundational technologies to build new meanings or technology epiphanies -Creating an integrated product combining existing technologies -A NEW feature

-Disruptive innovation : Tech- Innovation that outperforms the expectations of the high-end market. Starting from addressing low-end, -Newbies satisfied with low performance -NOT related to role of user -Cyclic innovation: (Tushman) : [Tech discontinuity]->[Fluid phase]->[Dominant design]->[Incremental innovations]-> -Technological discontinuity (Radical) ->> decline of a existing tech (market share) -Different designs does NOT indicate Radical innovation but Incremental innovation -Introduction of the new protocols did NOT create a new fluid phase but a technology substitution Incremental innovation: ex: Version releasing

-Starts from (market) needs, -Starts market research -Questionnaire: -Focus groups: -Ethnographic research: “what people do” Innovate with users

Market pull

Meaning

Platforms Open Collaborative Innovation Vision pull Value based

Medium period: S -Shape curve (ONE performance over TIME) -Long period: Envelope curve - HP: Limited growth, 3 phases, Constant innovation effort (b) Dominant design : Freezes socio-economical context Summarize the needs of the vast majority Archetype of user’s and designer’s imagination A different design is NOT enough to say that they are competing dominant designs -Abernathy -Utterback: Innovation and competition dynamics 1.FLUID (Different archetypes, NOT designs) 2.TRANSITION, 3.SPECIFIC

-Explicit needs (ex: reduce cost is also explicit) -Observable needs -observations in the context of use, NOT monitoring -Users do not give feedback or interact

-Lead user analysis: “what people make”

-Design + Test -Face needs before bulk of the market -Strong economic motive, and motivated -Capable to innovate, motivated -NOT early adaptors

-Co -create the innovation -Must be addressing needs of bulk of market in future -User gain benefits

-Beta testing: “what people make”

-Direct involvement in the project cycles -Feedback from the customers -Customer have to be SKILLED -Typically for INCREMENTAL innovation -Does NOT start from user needs -Does NOT start from a new technology

-Tacit needs, Latent needs -users do NOT innovate -Feedbacks and information during the development phase of a product -Must be the core offering -NOT enough to merge existing functionalities

-Not a product themselves -Set of components, along with the linkages among them -Common to different products -Company can develop new derivative products -Foundation -Ecosystem -External developers can build upon this platforms -Further complementary innovations -potential new network effects -Transactional - BI DIRECTIONAL cross-side network effects

-basic architecture , for new products -allows internal innovation, NO complementors involved

-Answers to the WHY? -Changes the reason -New experience ≠ new meaning

Internal or product

Sustainability oriented innovation

-NOT based on a breakthrough technology -has to be “Asked” by customers Quantitative Qualitative -What people do in their natural context -Researcher becomes part of the research situation -Passively and subjectively absorb

Additional Notes - Incumbent curse: -Is NOT able to exploit opportunities of new technology. -Does have the capabilities to innovate -Blinded by power, can’t follow the “innovation path” -competence destroying: Changes: “Previous standard” -> “New situation” Forces to develop new skills -Competence enhancing:

Industrywide

Two-sided platforms

-Intentional changes to products, process or practices (business model, meaning)

-Orthogonal - UNI DIRECTIONAL cross-side network effects

-Client as a target -Client as a source

-Hybrid multi- sided -Blockchain – peer to peer: Direct network externalities 1.Operational optimization Do things better 2.Organizational Novel products, new things transformation 3.System building Do good by doing new things

Open-Hierarchical: Innovation mall More solutions + control Close-Hierarchical: Elite Circle Solution from best sources + control -Role of the business in society

Open-Flat: Innovation community More solutions + Sharing risk Close -Flat: Consortia Solutions from best sources + Shared risk

User toolkit: Users develop new products through the system -co-development of innovation since design phase

-complementary products “built on” the platform -Does NOT enables innovation through DATA FLOWS -Multiple devices DO NOT represent an industry-wide platform -Intermediary to exploit externalities -Acts as enabler of transactions -Client gives data, BUT data for “internal purposes” or “to offer a service” can be a value-added service not client as a source strategy

Incumbents: More sustainable – Incremental Born sustainable: Truly sustainable – Radical -> ->Foundry or Partnership models Triple bottom line – People, Planet, Profit 1.Social value – social + Environmental 2.Shared value – Social + Economic 3.Blended – People + Profit + Planet -Inbound Customers, Startups, Employees (EDI), Suppliers -Outbound Licensing, Selling IP

Leadership Classification

Defines your style only

Managerial grid

Based on: Task & People

Notes Nature VS Nurture -Leadership is a trait or set of abilities -Leadership is an acquired skill, influenced by environment

Trait approach: Incremental approach:

Outgoing, talkative, sociable, assertive Trusting, good-natured, cooperative, soft-hearted Dependable, responsible, achievement oriented Relax, secure, unworried Intellectual, imaginative, curious, broad-minded Minimum effort for Impoverished organizational belonging Friendly climate for fair Country club productivity Middle of the road Balanced Commitment Interdependence through common goals Team management Trust and good relationship

Helpful for taking DECISIONS

Based on: Supportive, Task, & Readiness of the follower

Levers

For Style

Leadership for expected outcome

Unable

Unwilling or insecure

Selling

Unable

Willing or confident

Participating

Able

Unwilling or insecure

Delegating Contingent reward

Able

Willing or confident

2.Passive management by exception

Levers

Inspirational motivation Intellectual stimulation

Individualized concern

Plural

Has experience, unconfident, hesitate, can’t make decisions, needs support

1.Preventing mistakes from happening, several meetings, assigning clear roles and responsibilities, 2.Punishment -leader avoids decisions

PEOPLE – Role model PURPOSE – inspire and motivate PERFORMANCE – Challenge to innovate and create PEOPLE – Concern

Sharing leadership Formal or informal Content leadership Process leadership

Friendly environment, best performance, collaborative environment, excellence, focus on tasks and routines, organizational goals Aiming at success, solid planning and task orientation, clear objectives, New firm, new project, important project, new team, new environment

Must be SMART 1.Active management by exception

Stimulating, focusing on tasks, corrective, punishment,

Laissez-faire (unrestrictive) Idealized influence Leadership for beyond expected outcome

People’s need do not have to interfere with final goal

Telling

By expectations,

For Style

Situational

Authority-compliance

Transformational

Behaviors and styles

Big five personality dimensions

Transactional

Traits

1. Intelligence 2. Dominance 3. Self-confidence 4. Level of energy and activity 5. Task-relevant knowledge Extraversion Agreeableness Conscientiousness (dependability) Emotional stability Openness to experience

Pooling leadership (at the top) Spreading leadership across levels over time Producing leadership through interactions

Leading by example Push the boundaries for excellent performance, Urge people One-to-one relationships, Informal, Content leadership, Formal, all time Process leadership Fluid, whole organization

Tuckman stages

Members mood How do I fit in?

Forming – Telling

Why are we here?

Stage status Uncertainty about PURPOSE, STRUCTURE & LEADERSHIP -Newly formed team -There are sub-groups

Over when When members think they are part of the group, When they have sense of collective identity

CONFLICTS

When hierarchy of leadership is clear

CLOSE RELATIONSHIPS, COHESIVENESS, STRONG GROUP IDENDITY

When structure solidifies, common sense of set expectations clear, behaviors are clear

What is my role here? Storming – Selling

Why are we fighting over who is in charge and who does what? What do others expect me to do?

Norming – Participating

Can we agree on roles and norms as a team? How can I best perform my role?

Performing – Delegating

Structure is FULLY FUNCTIONAL, Can we do the job properly?

Public: Open area Private: Hidden area -> Self disclosure

Blind area -> Ask for feedback Unknown area -> Share

Effective feedback

Supportive

Corrective

Conflict Competing

Collaborating

Compromising

Feedbacks Helpful, specific, limited, clear Neutral, Avoid Generalization, avoid Sandwich 1. Describe behavior 2. Describe effects of behavior 1. Describe behavior 2. Describe effects of behavior 3. Positive alternative behavior 4. The effects of alternative

What is it Uncooperative Power oriented Assertiveness max Defending Satisfy concerns of both To learn Creative solution for interpersonal problem Mutually acceptable solution that partially satisfies concerns Not in depth Quick middle ground Diplomatically sidestepping Postponing an issue

Avoiding

Accommodating

Johari window -Johari: to increase self-awareness, manage team dynamics - support communication in teams, pushes people to give feedback,

Neglecting concerns Self-sacrifice Charity

Three “rules” of an effective feedback: be specific, be neutral, avoid sandwich feedback -Length is not crucial -NOT emotional/empathy 1.must be Specific behavior 1.must be Specific behavior

When to use Important and Quick decisions Vital issues Protect yourself Solution, Objective is learn Gain commitment Work on hard feelings Goals moderately important but not worth the effort Equal power exists Temporary settlement Time limited (=you don’t want to waste more time) Trivial When you have no chance to satisfy concerns Costs >>> benefits Cool down, reduce tension Other party has no AUTHORITY When you realize you are wrong Issue >>> your concern Social credits Damage >>> benefits Allow employees experiment

BLUE – goal oriented WORK

Whole brain – model – learning and thinking styles – comfort zones YELLOW – Vision oriented WORK

Being challenged Analyzing and diagnosing Logical processing Finance and numbers Making things work Solving problems Clarifying issues Explaining things

Dealing with the future Seeing the Big Picture Inventing solutions Developing new things Providing vision Taking risks Integrating ideas Bringing about change

Communicate Facts, no fluff Technical accuracy Articulated ideas Brief, clear, precise Critical analysis Straight forward

Communicate

Team

Team

What’s the theory of the case? GETTING DOWN TO BUSINESS LEAD: Authoritative, Directive, All-business GREEN – detail oriented WORK Administering Attending to detail Being in control Building things Establishing order Timely implementation Planning things out Providing support Communicate Details Thoroughness Rules and procedures Action plans Explanations Stay on topic

Metaphors Big Picture overview Imaginative Conceptual framework Exploration Visual

Challenge the Status quo (Current situation) BREAKTHROUGH THINKING LEAD: Adventurous, Visionary, RED – relations oriented WORK Coaching Working with people Communicating Building relationships Expressing idea Teaching/Training Persuading people Being part of a team Communicate Feelings and values Open discussion Expression Personal touch Empathy and consideration Stories and examples

Team Team How can we make this happen? MOVING TOWARD CLOSURE LEAD: Traditional, Conservative

Being part of the team KINDLING THE SPIRIT OF COMMUNITY LEAD: Team oriented, Supportive

Oslo Manual: Innovation definition -> implementation of a new or significantly improved product, process, marketing method, organizational method in business practices.

Types of innovation: Radical innovation: (Discontinuous) radical advances that may significantly alter the basis for competition in an industry Incremental innovation: small improvements to existing products or operations Architectural innovation: Technology or process changes to fundamentally change a component or element of business Component based innovation: ??????? Innovation of meaning: WHY To foster innovation of meaning it is not enough to merge existing functionalities. Solution innovation: HOW

Competence enhancing vs competence destroying Competence Destroying: (Radical innovation) Shift in technology requires new skills, causing power and structure shifts in organizations. Competence Enhancing: (Incremental innovation) consolidate industry leadership. Improvements (price or performance) that build on existing know-how within a product class.

Value vs Performance: Kano’s model BASED ON PERCEPTION Delighter: overtime becomes must have Linear: competitive advantage Must have

Innovation strategies Technology-push: Physical attributes Market-pull: Commercialization process Design-push: Intangible Vision-pull or values based innovation: Role of the business in society

Technology push 1. 2. 3. 4.

Technology driven To foster tech push innovation it is not enough to merge two existing products. To foster tech push innovation it is not enough to merge existing functionalities Research Application research Design Engineering

5. Manufacturing 6. Marketing and sales

S-shape curve Performance: Single parameter Time: Initiation -> development -> maturity Medium period:  To forecast When and Where is the L  To understand development stage: Investment policy  To drive technology switch Long period:  Envelope curve  Hypothesis Limited growth 3 phases Constant innovation effort

Rogers Diffusion of innovation Innovators: Early adaptors Early majority Late majority Laggards

Dominant Design Winning architecture: summarizes previous designs Archetype of user and designer imaginations Gives answer to vast majority needs Reduces number of requirements to be satisfied May imply constraints Freezes socio-economic context

How does the DD emerge: DD drivers: Complementary assets: Distribution, brand, services, capacity Strategic maneuvering Better understand of the customer needs Rules and laws

Technology-push market dynamics Innovation dynamics: Abernathy-Utterback After dominant design innovation rate drops DD standardize the market needs Focus shifts to COST Shift to PROCESS INNOVATION Innovation and competition dynamics (characteristics of the three phases of Abernathy-Utterback) Fluid Transition Specific Product Many Dominant Standard Process Skilled manpower Rigid equipment Unskilled manpower Organization Organic Projects, teams Hierarchical based

Competition

Functions and performance

Competitors Innovation Innovation surces

Many Radical on products New entrants and Lead users

Function and performance and price Concentration Radical on process Firms and users

Price

Oligopoly Incremental Suppliers

Incumbent curse Stick to S-curve Marginal costs Uncertainty about feasibility Requires management change

Disruptive technologies Performance: from very low to above high end market Time: shorter

Market pull and user centered innovation Market/user need Explicit needs -> questionnaire Observable needs -> ethnography Tacit needs Latent needs

Methods for innovating with users Questionnaire Quantitative Focus groups Qualitative Ethnographic research The researcher must be a part of research situation Passively and subjectively observe Lead user analysis (DESIGN + TEST + BUY) Lead user (not early adaptors) face needs earlier that will be needs of majority They have strong economic motive to innovate They expect to benefit significantly from solution to their needs They have CAPABILITY to innovate Beta testing (TEST + BUY) Direct involvement in the projects cycles Feedback from the customers Customer have to be SKILLED Typically for incremental innovations

Platforms Internal or product Set of components, along with the linkages among them, common to different products

Set of assets organized in a common structure, which company can develop new derivative products Industrywide platforms Foundation, ecosystem External developers can build upon these platforms  Further complementary innovations Potential new network effects Do not enable innovation through DATA FLOWS Two-sided transactional platforms -> BI DIRECTIONAL Cross-side network effect Intermediary to exploit externalities Orthogonal -> UNI DIRECTIONAL Client as a target Client as a source Hybrid multi-sided

Sustainability oriented Innovation Making INTENTIONAL CHANGES to Products, Process or Practices (Business model, Meaning) 1.Operational optimization “Efficiency” -Do things better 2. Organizational Transformation “New market opportunities” ->Novel products, New things 3. System building “Societal Change” ->Do good by doing new things “Do things differently” Key driver of innovation Market pull Technology push Design driven Regulatory push or pull Values driven

Approaches More sustainable Incumbents Incremental Truly sustainable: Mostly radical innovation Born sustainable

Open innovation for sustainability Incumbents use born sustainable startups to pursue SOI Foundry: incubating Partnership: partnering

The key elements of Sustainability – The triple bottom line People: social equity: standard of living Planet: environmental conserving, Efficiency Profit: Long-term competitiveness prosperity

The Evolution of Corporate Social Responsibility 1. Philanthropy 2. CSR

3. Strategic CSR

Value created with sustainability Triple bottom line Core drivers of a business case for sustainability  - Cost +productivity  Sales + revenues  Attractiveness as employer  Risk reduction  Reputation and brand image  Innovation capabilities Shared value: Expanding Competitiveness + Social value + Economic value Social value Social and environmen...