Description
explains how to build innovative companies and strategies to be innovative.
How to Build Innovative Companies
?
What was once central to Cos – price, quality, digitized analytical knowledge work – fast being shipped off to lowerpaid, highly trained ees offshore
?
What is unfolding is commoditization of knowledge
?
Increasingly, new core competence is creativity (right-brain stuff)
?
Means of differentiating products in commoditized marketplace
How to Build Innovative Companies
?
New forms of innovation based on intimate understanding of consumer culture – ability to determine what people want even before they can articulate it
?
See „The Dangers of Being Customer-Led,? from Hamel and Prahalad, “Seeing the Future First,” Fortune, 9/5/94
?
Are b-schools on top of all this change? Stanford is starting a „D-school? – a design school where managers can learn dynamics of innovation
How to Build Innovative Companies
? ?
?
3M succeeds by interpreting what customers really want 3M?s hottest product today is ultrathin plastic film on virtually every flat-screen display – film enhances image clarity and brightness Masking tape – 3M?s first hit – came out of similar inquiry
?
Therefore screen doesn?t need as much power, which means portable devices can get by w/ smaller rechargeable batteries
?
In 1925, 3M sandpaper engineer was visiting auto-body shop where workers were complaining about difficulty of painting twotone car wo/ colors running together
?
?
Latest iteration of 3M?s optical film is privacy filter – allows light to pass through straight to viewer, but keeps anyone w/ side view of screen from seeing anything but black display
Engineer went back to lab and figured out how to put sticky backing on paper
How to Build Innovative Companies
?
?
In 2001 Arthur Lafley, P&G CEO, established new exec post: VP for design, innovation, and strategy
?
Dispatched designers to work directly w/ R&D staffers to help conceive new products
? ? ?
Quadrupled design staff, hiring designers who had worked at other cos and in other industries
Changed P&G?s entire innovation process, making it consumercentric rather than driven by new technology Started hiring different kinds of consultants
? ?
Established „innovation gym? – place to train mngrs in new design thinking Created Design Board – non-P&Gers who provide independent perspectives on products, brand extensions, and marketing
Holy Grail of innovation: unmet, unarticulated needs of consumers
How to Build Innovative Companies
?
?
? ?
Before P&G started paying attention to design, it concerned itself primarily w/ how functional product was Now, functionality not enough – “We want to identify customer desires, rather than needs. What gives you the „wow?.” Using designers is part of P&G?s commitment to identifying unarticulated wants that it can transform into products Before Lafley became CEO, P&G essentially brought in designers at end of development process to improve product or upgrade packaging cosmetically
?
Now, designers work w/ R&D staff from beginning, helping to conceive products
?
See Business Week, “The Best Products of 2006”
How to Build Innovative Companies
?
GE?s Imelt pushing to change corporate structure to spur creativity
?
Newly created position of chief marketing officer in charge of generating innovation and creativity
Start w/ observation Try out lots of ideas fast by making models or videos (prototyping) Placing potential new product within emotional story that connects w/ consumers increases chances of success Build organizational process that does these things all the time
?
Methodology of new design strategy
? ? ? ?
?
Lessons from P&G and GE
?
?
Change mngrs: hire more anthropologists and social psychologists and fewer engineers Change incentives: link bonuses to new ideas, customer satisfaction, top-line revenue
How to Build Innovative Companies
Organizational design creates core competence in innovation which creates competitive advantage – hard to imitate?
How to Build Innovative Companies
doc_566421944.pptx
explains how to build innovative companies and strategies to be innovative.
How to Build Innovative Companies
?
What was once central to Cos – price, quality, digitized analytical knowledge work – fast being shipped off to lowerpaid, highly trained ees offshore
?
What is unfolding is commoditization of knowledge
?
Increasingly, new core competence is creativity (right-brain stuff)
?
Means of differentiating products in commoditized marketplace
How to Build Innovative Companies
?
New forms of innovation based on intimate understanding of consumer culture – ability to determine what people want even before they can articulate it
?
See „The Dangers of Being Customer-Led,? from Hamel and Prahalad, “Seeing the Future First,” Fortune, 9/5/94
?
Are b-schools on top of all this change? Stanford is starting a „D-school? – a design school where managers can learn dynamics of innovation
How to Build Innovative Companies
? ?
?
3M succeeds by interpreting what customers really want 3M?s hottest product today is ultrathin plastic film on virtually every flat-screen display – film enhances image clarity and brightness Masking tape – 3M?s first hit – came out of similar inquiry
?
Therefore screen doesn?t need as much power, which means portable devices can get by w/ smaller rechargeable batteries
?
In 1925, 3M sandpaper engineer was visiting auto-body shop where workers were complaining about difficulty of painting twotone car wo/ colors running together
?
?
Latest iteration of 3M?s optical film is privacy filter – allows light to pass through straight to viewer, but keeps anyone w/ side view of screen from seeing anything but black display
Engineer went back to lab and figured out how to put sticky backing on paper
How to Build Innovative Companies
?
?
In 2001 Arthur Lafley, P&G CEO, established new exec post: VP for design, innovation, and strategy
?
Dispatched designers to work directly w/ R&D staffers to help conceive new products
? ? ?
Quadrupled design staff, hiring designers who had worked at other cos and in other industries
Changed P&G?s entire innovation process, making it consumercentric rather than driven by new technology Started hiring different kinds of consultants
? ?
Established „innovation gym? – place to train mngrs in new design thinking Created Design Board – non-P&Gers who provide independent perspectives on products, brand extensions, and marketing
Holy Grail of innovation: unmet, unarticulated needs of consumers
How to Build Innovative Companies
?
?
? ?
Before P&G started paying attention to design, it concerned itself primarily w/ how functional product was Now, functionality not enough – “We want to identify customer desires, rather than needs. What gives you the „wow?.” Using designers is part of P&G?s commitment to identifying unarticulated wants that it can transform into products Before Lafley became CEO, P&G essentially brought in designers at end of development process to improve product or upgrade packaging cosmetically
?
Now, designers work w/ R&D staff from beginning, helping to conceive products
?
See Business Week, “The Best Products of 2006”
How to Build Innovative Companies
?
GE?s Imelt pushing to change corporate structure to spur creativity
?
Newly created position of chief marketing officer in charge of generating innovation and creativity
Start w/ observation Try out lots of ideas fast by making models or videos (prototyping) Placing potential new product within emotional story that connects w/ consumers increases chances of success Build organizational process that does these things all the time
?
Methodology of new design strategy
? ? ? ?
?
Lessons from P&G and GE
?
?
Change mngrs: hire more anthropologists and social psychologists and fewer engineers Change incentives: link bonuses to new ideas, customer satisfaction, top-line revenue
How to Build Innovative Companies
Organizational design creates core competence in innovation which creates competitive advantage – hard to imitate?
How to Build Innovative Companies
doc_566421944.pptx