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Innovation

Lego’s business trajectory over the last few decades provides a true case study in how necessity has precipitated its ability to innovate at each level. When the company was on the bankruptcy a decade back, it went innovative, saved the company and did very well. Now that sales is back, and the company is doing well, business innovation has again been put as the backburner. Too much growth as seen through Lego’s story can stifle innovation, increase bureaucracy while people start avoiding risks. Only those who are paranoid enough survive because they constantly experiment. Companies whose products are targeted at entire generations are prone to such boom and bust cycles due to the fickleness of this market. The really good innovators explore adjacent industries as Lego did with robots. Another company that had faced a similar condition was Disney, where upscaling did take place, but had its limits. Companies need to learn how to grow up so they get business from adults also, but at the same time must not grow old or irrelevant bureaucracies.

Source:http://innovationexcellence.com/blog/2017/09/19/legos-innovation-lessons/

Uploaded Date :06 October 2017

 

A lot of traditional giant companies are withering away in the face of disruption. A lot of business commentators believe that these companies have simply failed in their respective business models, so no special efforts must be made to resurrect them. However, others feel that they must be saved as thousands, maybe indirectly millions of people are dependent on them. Famous business commentator Clayton Christensen has proposed the spinoff theory where a separate organization is created by the original one but this one will only work on cutting edge new technologies. Scott Anthony though has proposed having a Dual Transformation. Transformation A must aim to incorporate trending changes to the existing business. Transformation B is about developing and then existing wholly new business innovation ideas.

Source:https://www.forbes.com/sites/stevedenning/2017/05/24/two-kinds-of-organizational-transformation-how-to-save-the-whales/#15b41b4f21fb

Uploaded Date:31 July 2017

Business innovation is increasingly mentioned in tones which make it sound extremely difficult to achieve. Yet in reality they need not be so complex. The reason why the greatest of start-ups end up disruptors is because they change the behaviour of the people involved. A world pre Google is difficult to imagine while few imagined the smartphone or music revolution prior to Apple. However, Venture Capital (VC) funding is drying up and even less so is Angel Funding. In such a scenario, alternative options are sought, but one that has strongly emerged is Crowd Funding. This has in fact grown so fast that now the category is larger than angel investment and soon may outpace the VC model itself. A prime example to be cited would be of the Oculus Rift which was eventually acquired by Facebook but not before raising more than two billion US dollars in crowd investment. A major advantage of this model is that there is limited cost to failure besides crucial time being wasted. Kickstarter, Indiegogo and Rock-The-Post are some of the best performing crowd funding platforms.

source:http://innovationexcellence.com/blog/2017/07/17/failure-is-free/

Uploaded Date:28 July 2017

Large companies quite often struggle with business innovation. They want to leverage the benefits of a large organization and combine it with a start-up like fervour yet that is almost never possible due to the fact that large corporations are backed up by investors who want a steady, constant return. Career advancement at such firms depends on not having failures on one’s CV while large companies even serve mass customers as opposed to early adapters that innovative entrepreneurs cater to. That is why GE has created a team known as First Build to experiment an innovative, agile approach cocooned away from the formal hierarchy of the organization. First Build is based in Louiseville in Kentucky and houses scientists, engineers, industrial designers, students and amateurs working beside the full-time employees. It pursues open source innovation in stark contrast to the proprietary IP followed by GE appliances and other such large firms. Smart appliances have been developed such as the refrigerator Chill Hub, a Bluetooth connected precision cooker, smart wine chiller and talking washer/dryer. These innovations are not one-off but proven successes as even post acquisitions, devices continued working and technology flourished.

Source:https://hbr.org/2017/07/how-ge-built-an-innovation-lab-to-rapidly-prototype-appliances?utm_medium=email&utm_source=newsletter_daily&utm_campaign=dailyalert&referral=00563&spMailingID=17682608&spUserID=OTY0OTMwNTk5NwS2&spJobID=1061397788&spReportId=MTA2MTM5Nzc4OAS2

Uploaded Date:28 July 2017

 

Business innovation in itself is a herculean task, but is further complicated when a loner goes up against the established channels, industry knowledge and assets of the older companies. Thus instead of going all alone, start-ups would be advised to collaborate and leverage the mutual benefits provided by the established firms. This is true across industries- automobile, pharma or healthcare. The kind of all-out disruption and quickfire scaling common at Silicon Valley does not bode well in other industries. A good example would be that of pharma player 23andMe. They had a great IPO in 2009, but struggled later on thanks to untimely communications with the FDA resulting in temporary bans and later on a massive product recall. Tesla took a longer, more patient approach, yet is falling behind in design, so have approached Volvo to address this issue. Even established firms are struggling to cope up with the disruptions in notably the taxi and hospitality industries by Uber and Airbnb respectively. The older industries need to be transformed through knowledge of the regulatory environment, testing protocols and conventional physical assets. Business intelligence provided by CB Insights confirms that there has been a twenty-five percent rise in start-up investment since 2012 with a total of US$ 25 billion spent last year. The new model proposes that startups, established entities and VC funds work collaboratively.

Source:https://hbr.org/2017/07/innovation-is-as-much-about-finding-partners-as-building-products?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+harvardbusiness+%28HBR.org%29

Uploaded Date:28 July 2017

Business innovation can never be a one-time activity but a constant transformation. Initially, the attempt must be relatively steady with an emphasis on gradual transformation over twelve to eighteen months. Some steps have been outlined to align innovation across the organization. At the very heart a multi-disciplinary team needs to be selected. After this a test must be conducted to check for inherent biases embedded, before dealing and eliminating them. In order to inspire the team, stories must be narrated of other organizations which made a similar leap. Some pointers must now be included such as future growth markers or disruptions aimed at. Now a pilot test of some new innovations must be begun. The few up to three models need to be shortlisted. This needs to be followed by creating briefs for strategy and opportunity for all the shortlisted models. Feedback sessions must be held with the audience to gauge market and internal sentiment. The one which really hit the bullseye and met market approval, needs to be further worked on and developed into a sound business plan.

Source:http://innovationexcellence.com/blog/2017/07/02/embedding-innovation-into-your-organization/

Uploaded Date:14 July 2017

All business innovations may be categorized under four broad heads. They are basic research, sustaining, breakthrough and disruptive. Sustaining innovation is the conventional variation involving strategic road-mapping, research and development labs, and relying on acquisitions to bring in new skill sets and resources. Design thinking methods need to be applied in them. Breakthrough innovations are often carried out by mavericks and involves solving a problem arising out of any related development. Open innovation works best in such cases. Disruptive innovation is the most radical and this can afflict a lot of genuine good performers. Lean startup methods, business model canvas and the value proposition canvas are examples of such forces at play. Basic research is the prerequisite before anything substantial may get innovated. Scientific discoveries like the theories of Albert Einstein or Alan Turing did not on their own transform the world, but their contributions sparked changes far and wide. Top corporates such as IBM, Proctor and Gamble and Google, have massive resources which they use for such holistic research. A combination of these various approaches works best for any company.

Source:https://hbr.org/2017/06/the-4-types-of-innovation-and-the-problems-they-solve?referral=00563&cm_mmc=email-_-newsletter-_-daily_alert-_-alert_date&utm_source=newsletter_daily_alert&utm_medium=email&utm_campaign=alert_date&spMailingID=17504335&spUserID=OTY0OTMwNTk5NwS2&spJobID=1041632933&spReportId=MTA0MTYzMjkzMwS2

Uploaded Date:05/07/2017

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