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Organizational Dynamics of Innovation

Organizational Dynamics of Innovation

C. Todd Lombardo

April 21, 2016
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  1. Organizational Dynamics of Innovation C. Todd Lombardo Chief Design Strategist

    - Fresh Tilled Soil Adjunct Professor - IE Business School @iamctodd
  2. Every major corporation in the 21st century is dealing with

    issues of disruption. Steve Blank, 8-TIME ENTREPRENEUR, AUTHOR, STARTUP GURU
  3. different measure of performance time performance time new market disruption

    compete against nonconsumption low end disruption adressing overserved customers with a low cost business model sustaining technology bringing a better product into an established market most demanding customers least demanding customers
  4. Formula…? ◦ Raise some venture backing: $16M >> $41M ◦

    Hire the best engineers you can find
  5. Formula…? ◦ Raise some venture backing: $16M >> $41M ◦

    Hire the best engineers you can find ◦ Give them space (a 22,000 ft2)
  6. Formula…? ◦ Raise some venture backing: $16M >> $41M ◦

    Hire the best engineers you can find ◦ Give them space (a 22,000 ft2) ◦ Pray they make something valuable
  7. H4 H3 H2 H1 Product Development Innovation Services Startup Accelerator

    DESIGN SPRINTS, WORKSHOPS, EVENTS FIVE EXTERNAL STARTUPS
  8. 1850 1890 1900 1915 1940 1960 1970 1985 1995 2005

    2015 2020 2025 2030 Source: XPLANE
  9. 1850 1890 1900 1915 1940 1960 1970 1985 1995 2005

    2015 2020 2025 2030 Source: XPLANE Peak of II Industrial Revolution
  10. Slavery Average manufacturing had less than 4 employees Average lifespan

    of S&P500 is 67 years Pay by performance Capital budgeting Task design Divisionalization Brand management Women couldn’t vote Management 1.0 90% of people were in agriculture Ford makes 500K cars/yr Social segregation Colonialism No environmental care Communism No Google No Airbnb 1850 1890 1900 1915 1940 1960 1970 1985 1995 2005 2015 2020 2025 2030 US Steel has $1B market capitalization Source: XPLANE Peak of II Industrial Revolution
  11. Slavery Average manufacturing had less than 4 employees US Steel

    has $1B market capitalization Pay by performance Capital budgeting Task design Divisionalization Brand management Women couldn’t vote Management 1.0 90% of people were in agriculture Ford makes 500K cars/yr Social segregation Colonialism No environmental care Communism No Google No Airbnb Peak of II Industrial Revolution 1850 1890 1900 1915 1940 1960 1970 1985 1995 2005 2015 2020 2025 2030 Source: XPLANE
  12. Slavery Average manufacturing had less than 4 employees US Steel

    has $1B market capitalization Pay by performance Capital budgeting Task design Divisionalization Brand management Women couldn’t vote Management 1.0 90% of people were in agriculture Ford makes 500K cars/yr Social segregation Colonialism No environmental care Communism No Google No Airbnb Peak of II Industrial Revolution 2ND Innovation Consultants 3RD Venture Design Human-Centered Co-Creation Ethnography Customer Journey 1850 1890 1900 1915 1940 1960 1970 1985 1995 2005 2015 2020 2025 2030 Rise of Design for Innovation Source: XPLANE 1ST Digital change agents
  13. Slavery Average manufacturing had less than 4 employees US Steel

    has $1B market capitalization Pay by performance Capital budgeting Task design Divisionalization Brand management Women couldn’t vote Management 1.0 90% of people were in agriculture Ford makes 500K cars/yr Social segregation Colonialism No environmental care Communism No Google No Airbnb Peak of II Industrial Revolution 2ND Innovation Consultants 3RD Venture Design Human-Centered Co-Creation Ethnography Customer Journey 1850 1890 1900 1915 1940 1960 1970 1985 1995 2005 2015 2020 2025 2030 Rise of Design for Innovation Source: XPLANE 1ST Digital change agents
  14. Slavery Average manufacturing had less than 4 employees US Steel

    has $1B market capitalization Pay by performance Capital budgeting Task design Divisionalization Brand management Women couldn’t vote Management 1.0 90% of people were in agriculture Ford makes 500K cars/yr Social segregation Colonialism No environmental care Communism No Google No Airbnb Peak of II Industrial Revolution 2ND Innovation Consultants 3RD Venture Design Human-Centered Co-Creation Ethnography Customer Journey 1850 1890 1900 1915 1940 1960 1970 1985 1995 2005 2015 2020 2025 2030 Rise of Design for Innovation Source: XPLANE Average lifespan of S&P500 is 67 years Average lifespan of S&P500 is 15 years 1ST Digital change agents
  15. 1850 1890 1900 1915 1940 1960 1970 1985 1995 2005

    2015 2020 2025 2030 Traditional Organizations from the 20th Century
  16. 1850 1890 1900 1915 1940 1960 1970 1985 1995 2005

    2015 2020 2025 2030 Traditional Organizations from the 20th Century Organizations with a more conscious approach
  17. 1850 1890 1900 1915 1940 1960 1970 1985 1995 2005

    2015 2020 2025 2030 Traditional Organizations from the 20th Century Organizations with a more conscious approach Modern Organizations from the 21st Century
  18. Rigid Organizations ◦ No formal innovation framework ◦ Innovation initiatives

    untied to company strategy ◦ Siloed ◦ Misaligned metrics
  19. Twenty percent of our new products are now required to

    be driven by innovation. CHIEF STRATEGY OFFICER, FORTUNE 500 COMPANY
  20. Twenty percent of our new products are now required to

    be driven by innovation. CHIEF STRATEGY OFFICER, FORTUNE 500 COMPANY Do you set aside 20% of your company’s time & resources??
  21. Twenty percent of our new products are now required to

    be driven by innovation. CHIEF STRATEGY OFFICER, FORTUNE 500 COMPANY Do you set aside 20% of your company’s time & resources?? ME
  22. Top-down sponsorship and bottom-up effort is essential to make meaningful

    culture transformation progress. Dane Howard DIRECTOR OF USER EXPERIENCE, EBAY
  23. } } } DESIGN SPRINT INTERVALS AGILE SCRUM Define Understand

    Build Test Ideate WEEK 1 Refine Build Test WEEK 2 Refine Build Test WEEK 3 Refine Build Test WEEK 4 Refine Build Test WEEK n
  24. OPPORTUNITY IDENTIFICATION PROJECT ACCEPTANCE INVENTOR CHAMPION IMPLEMENTER V0.1 V0.2 V0.3

    LAUNCH TECHNICAL CREATIVITY POLITICAL SAVVY PROJECT MANAGEMENT
  25. OPPORTUNITY IDENTIFICATION PROJECT ACCEPTANCE INVENTOR CHAMPION IMPLEMENTER V0.1 V0.2 V0.3

    LAUNCH TECHNICAL CREATIVITY POLITICAL SAVVY PROJECT MANAGEMENT SERIAL INNOVATOR
  26. Tension Brutal Honesty. Mixed Viewpoints. Agility Quickly change. Learn fast.

    Space Experiment. Fail. Collaborate. Mindset Designer + Scientist. FOCUS ON PEOPLE PROBLEMS