The Context of Innovation: Lecture 1

Week 1 Lecture 1 Leading Strategic Innovation in Organizations David A. Owens, PhD

Lecture'Agenda'
This'Lecture:''The'Context'of'Innova9on'' 'Run$Time:$$Approx.$70$Minutes$$ Topics:$
Why$Does$Innova=on$Fail?$ Thinking$Outside$the$Box!$ The$Innova=on$Constraints$Framework$ An$Introduc=on$to$the$Six$Innova=on$ Constraints$ $

The Context of Innovation: Lecture 1

Innova9on' or' Change?'

What'is'Innova9on?'
New' New'Change'' New'Change'that'is'Posi9ve' New'Change'that'is'Posi9ve'and'Implemented'

The Context of Innovation: Lecture 1

Innovation = What we do to them Change = What they do to us

Your$Great$Idea$$ Creates$No$Obliga=on$$ For$Others$to$Change$

The Context of Innovation: Lecture 1

Most'Important'Point:' Innova9on'is'About'' Selling'Your'Ideas'!'

Think Outside the Box!?

The Context of Innovation: Lecture 1

No t To oR isky

Not Too Difficult

ird We o t To No

Not Too Edgy

What a PUNY idea!

Thinking Outside the Box? Heres what else happens

The Context of Innovation: Lecture 1

General'Motors'EVJ1' Code'Name:''The)Impact)

The Context of Innovation: Lecture 1

Why Does Innovation Fail?

The Context of Innovation: Lecture 1

Is the Theory of Innovation Management of any help?

The Context of Innovation: Lecture 1

How do we innovate successfully?

The individual must enlarge their toolset The groups culture must support risk The organization must structure itself The market must be see utility and value The society must accept as legitimate The technology must be developed

Why Innovation Fails?

An individual doesn't enlarge his or her toolset - he or she is not challenged to 'think different A groups culture doesn't support risk - new ideas are killed by group members' behaviors An organization isn't structured to support innovation - innovation is not considered strategic A market is not offered utility and value - the industry fails to recognize an opportunity A society doesn't accept an innovation as legitimate - it does not support values and aspirations A technology isn't fully developed - the innovation isn't quite ready for prime time

The Context of Innovation: Lecture 1

' How'about'an'Empirical'approach?' '

REALJWORLD'LESSONS?' '

Healthy Living?

100% Pure Canola Oil Naturally Fat Free

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The Context of Innovation: Lecture 1

Nissan Tama Electric Car (1947)

35 km/h top speed with a range of 96 km

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The Context of Innovation: Lecture 1

Innovation Constraints Why did it work?

Fas Me t Food nu

Access to Energy

Health Code Health Codes Less Restrictive

tionn es ocaaoipoli ence L cn t o d Loo epen M Ind

Handheld Innovation
Pro c Sp esso eed r

Touch-Screen Resolution

Reduced Device Cost Processor Constraints Cost

nte d

me reAug aftwan xity So m plare um e H o ftw Co S

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The Context of Innovation: Lecture 1

Performing Arts Innovation

Hig h Vid Defi niti eo on

Programming Legitimacy

Venue Venue Size Partnerships

y ert op ts r l P en tua eem nc niolle ts r UntentrtscAg I o ha C ig R

Implementation Constraints
Hire work force of 430 People Acquire 6,500,000 square feet of woven polypropylene Sew fabric in 79 different patterns Add flotation strip in every seam Accordion fold for installation Install 610 custom anchors into limestone in the Bay Install earth anchors (hidden) near the bases of trees Tow floating rafts of fabric 20 x 500 to each island Spend 120 days and nights monitoring in boats Remove forty tons of garbage Consult with: Marine biologist Mammal expert Ornithologist Construction engineers

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The Context of Innovation: Lecture 1

Get the following permits'

the Governor of Florida and the Cabinet; the Dade County Commission; the Department of Environmental Regulation; the City of Miami Commission; the City of North Miami; the Village of Miami Shores; the U.S. Army Corps of Engineers; the Dade County Department of Environmental Resources Management

More Generally
Fa Re vorab gul l atio e n

Capable Execution
ing tion gy nc Fu hnolo Tec

Supportive Group

Success!
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The Context of Innovation: Lecture 1

Natural Soil Conditioner?

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Relaxing the Constraints on Innovation Recycled Human Hair Constraints

Ste (Te rilize chn & M olo a gy) t

Purchase & Ship Cost Effectively (Industry)

Helpful Partners (Group)

) nts

or! trai act ons F lC ck Yu cieta (So

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The Context of Innovation: Lecture 1

The Sow-n-Gro Innovation Strategy?

SmartGrow is a patented manufactured product made of 100% natural, biodegradable hair fiber. SmartGrow comes as a circular pad in three sizes (6-inch, 10-inch, 14-inch), and 4-foot by 25-foot rolls.

for Oil-Spill Cleanup

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Otter Mat

The Context of Innovation: Lecture 1

Relaxing the Constraints on Innovation Generalized Constraints

Outside the Box!??

Gro Co up nst ra i n

X
ts

Organizational Constraints

Societal Societal Constraints Constraints

l ua l a dr n s iiviid uaiintts IInd v sttra nd n s Co n Co

Why Do We Need to Know Our Innovation Constraints?

Meaningful Solutions Restructure Organization

Change Ideation Process

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The Context of Innovation: Lecture 1

The Truth About Innovation is that

individuals must enlarge their toolsets groups culture must support risk organization must have a strategy market must see utility and value society must accept as legitimate technology must be developed

Why Constraints?
Constraints are something we can focus on; Constraints are something we can agree on; Constraints are something we can measure; Constraints are exactly what drives adoption.
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The Context of Innovation: Lecture 1

Why is Innovation Hard?

We dont find a good problem We dont generate good ideas We dont choose the best idea We dont anticipate the innovation constraints!

Innovation Constraints
Gro Co up nst ra i n

ts

Technical Constraints

Organizational Constraints

l ua ivid raints Ind nst Co

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The Context of Innovation: Lecture 1

Ill'take'you'on'a'quick'tour'of'the'class.''Each' week'we'will'cover'one'of'the'following' constraints,'followed'by'a'wrapup'session'that' we'use'to'synthesize'the'model.''' Each'week'will'be'followed'by'an'inJdepth' diagnos9c'survey'to'help'you'determine'if'the' kind'of'constraint'we'are'discussing'is'the'one' that'you'have.'

Individual Constraints

Techn o

logy

Group

l ua vid i Ind

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The Context of Innovation: Lecture 1

What we know to be true:

Individuals must enlarge their toolsets The groups culture must support risk The organization must be structured The market must see utility and value The society must accept as legitimate The technology must be developed

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The Context of Innovation: Lecture 1

) ) ) ) INDIVIDUALS'WILL'ASK' ' CAN'I'SEE'IT?' HOW'DO'I'KNOW'IT?' DO'I'UNDERSTAND'IT?' DOES'IT'HELP'ME?'

Techno

logy

Group
al

i Ind

v idu

Individual Innova9on'Constraints

Perception Intellection Expression

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The Context of Innovation: Lecture 1

Individual Level Diagnostic (What Stops Ideation?)

Constraints Diagnostic Survey 1) INDIVIDUAL INNOVATION CONSTRAINTS Read each statement and consider how closely it describes your behavior. Record your assessment by putting a checkmark into the box that indicates how accurately it describes your situation. Q# 1 Per 2 Per 3 Per 4 Int 5 Int 6 Int 7 Exp 8 Exp 9 Exp Rating 1! 2! 3! 1! 2! 3! 1! 2! 3! 1! 2! 3! 1! 2! 3! 1! 2! 3! 1! 2! 3! 1! 2! 3! 1! 2! 3! Diagnostic Statement I know what the solution will look like beforehand, even for new problems I don't spend time looking at problems from different angles early in a project I gather all the information I use sitting at my desk I don't ask why, I just solve the problem I am assigned I use the same process for solving most kinds of problems I generate a few ideas I think will work and them move on I never present my ideas with drawing, charts or props In my field of work, there is only one right way to say things People have trouble understanding my ideas

1 = Highly Descriptive, this occurs often or on a routine basis 2 = Moderately Descriptive, this occurs sometimes or occasionally 3 = Not Descriptive, this occurs rarely or not at all

Group Constraints
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-*

Techn o

logy

Group

In

id div

ua

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The Context of Innovation: Lecture 1

What we know to be true:

Individuals must enlarge their toolsets The groups culture must support risk The organization must be structured The market must see utility and value The society must accept as legitimate The technology must be developed

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The Context of Innovation: Lecture 1

' ' ' Techno logy ' A'GROUP)WILL'ASK' ual iv id Ind ' HOW'DOES'IT'MAKE'ME'FEEL?' IS'THIS'HOW'WE'DO'THINGS?' WHAT'DO'I'NEED'TO'DO?' IS'THIS'CONSISTENT'WITH'OUR'GOALS?' '

Group

Group Innovation Constraints

Culture Emotion Environment Process

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The Context of Innovation: Lecture 1

Constraints Diagnostic Survey 2) GROUP INNOVATION CONSTRAINTS

Read each statement and consider how closely it describes the situation in your current working group. Think of your group as consisting of the people you interact with on a weekly basis, and who have an impact on the groups work. Record your assessment by putting a checkmark into the box that indicates how accurately it describes your situation. Q# 1 Emo 2 Emo 3 Emo 4 Cul 5 Cul 6 Cul 7 Env 8 Env 9 Env Rating 1! 2! 3! 1! 2! 3! 1! 2! 3! 1! 2! 3! 1! 2! 3! 1! 2! 3! 1! 2! 3! 1! 2! 3! 1! 2! 3! Diagnostic Statement Members criticize and point out the weakness of ideas during brainstorms Members are afraid to admit when theyve made a mistake Managers ideas are considered better than those of everyone else Members are chosen because of relationships and not training or knowledge Members avoid considering ideas that may disrupt operations in the short term Members are openly critical or dismissive of new ideas or approaches Meeting space configuration is difficult or impossible to change by the group Our group space does not facilitate collaboration or information sharing Members dont capture and review the team's discussions and insights Members are confused about the current state or phase of a project Members cannot articulate the innovation-solving process we use Members do not consult the process guidelines once a project is under way

Group'Level'Diagnos9c' (What)Stops)CollaboraBon?))

10 Pro 1! 2! 3! 11 Pro 1! 2! 3! 12 Pro 1! 2! 3!

1 = Highly Descriptive, this occurs often or on a routine basis 2 = Moderately Descriptive, this occurs sometimes or occasionally 3 = Not Descriptive, this occurs rarely or not at all

Organizational Constraints
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+*

Techn o

logy

Group

In

id div

ua

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The Context of Innovation: Lecture 1

What we know to be true:

Individuals must enlarge their toolsets The groups culture must support risk The organization must be structured The market must see utility and value The society must accept as legitimate The technology must be developed

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The Context of Innovation: Lecture 1

' ' ' Techno logy Group ' l dua ' div i In THE'ORGANIZATION)ASKS' ' IS'IT'CONSISTENT'WITH'OUR'STRATEGY?' IS'IT'WITHIN'OUR'CAPABILITIES?' DO'WE'HAVE'THE'RESOURCES?'

Organiza9onal'Innova9on'Constraints'

Structure' Strategy' Resources'

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The Context of Innovation: Lecture 1

Read each statement and consider how closely it describes the situation in your organization. Think of your organization as consisting of those people and groups who identify as employees. Record your assessment by putting a checkmark into the box that indicates how accurately it describes your situation. Q# 1 Stru 2 Stru 3 Stru 4 Stgy 5 Stgy 6 Stgy 7 Res 8 Res 9 Res Rating 1! 2! 3! 1! 2! 3! 1! 2! 3! 1! 2! 3! 1! 2! 3! 1! 2! 3! 1! 2! 3! 1! 2! 3! 1! 2! 3! Diagnostic Statement Our people don't know the strategy We don't require everyone to participate in innovation Our leaders prefer that we keep risk to an absolute minimum. We avoid positive changes if they risk short-term inefficiencies We are the wrong size to effectively try meaningful new ideas We do not have a mechanism for authorizing important experiments We do not to try ideas because we lack the financial capital or fear risk We marginalize those groups working on our new products and services Our operations work well, improvements to them are discouraged

Organiza9onal'Level'Diagnos9c' (What)Stops)ExecuBon?)'
Constraints Diagnostic Survey 3) ORGANIZATION INNOVATION CONSTRAINTS

1 = Highly Descriptive, this occurs often or on a routine basis 2 = Moderately Descriptive, this occurs sometimes or occasionally 3 = Not Descriptive, this occurs rarely or not at all

Internal Innovation Constraints

Gro Co up nst ra i n

ts
* * *

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9*

Organizational Constraints

Societal Constraints

l ua ivid raints Ind nst Co

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The Context of Innovation: Lecture 1

External Innovation Constraints

Gro Co up nst ra i n

ts

Organizational Constraints

Societal Constraints

l ua ivid raints Ind nst Co

Industry Constraints

Techn o

logy

Group

In

id div

ua

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The Context of Innovation: Lecture 1

What we know to be true:

Individuals must enlarge their toolsets The groups culture must support risk The organization must be structured The market must see utility and value The society must accept as legitimate The technology must be developed

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The Context of Innovation: Lecture 1

' ' ' ' THE'INDUSTRY)WILL'ASK' ' DOES'THIS'GIVE'US'MORE'POWER?' IS'THIS'PLAYING'FAIR?' WHAT'DOES'THIS'TAKE'FROM'US?' CAN'WE'CONTROL'IT?'
Techno logy

Group

iv i Ind

dua

Industry'Innova9on'Constraints' Compe99on' Suppliers' Markets'

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Constraints Diagnostic Survey

The Context of Innovation: Lecture 1

4) INDUSTRY / SECTOR INNOVATION CONSTRAINTS

Read each statement and consider how closely it describes the situation in your industry. Think of your industry as consisting of the set of firms and suppliers attempting to meet the same market needs that you currently address. Record your assessment by putting a checkmark into the box that indicates how accurately it describes your situation. Q# 1 Riv 2 Riv 3 Riv 4 Sup 5 Sup 6 Sup 7 Mkt 8 Mkt 9 Mkt Rating 1! 2! 3! 1! 2! 3! 1! 2! 3! 1! 2! 3! 1! 2! 3! 1! 2! 3! 1! 2! 3! 1! 2! 3! 1! 2! 3! Diagnostic Statement We are facing a decreasing market for our core products. We do not give detailed attention to our competitors on a regular basis. Our customers have access to variety of alternatives to our product or service We rely on experts or vendors for critical parts of our products or services The skills needed for our industry make it difficult find quality people Our value-adding processes are subject the control of professions or unions We ignore the needs of our low-end customers in new products or services Our products or services require customers to abandon their legacy systems Large capital investments to deliver new products and services in our industry

Industry'Level'Diagnos9c' (What)Stops)the)Market)'

1 = Highly Descriptive, this occurs often or on a routine basis 2 = Moderately Descriptive, this occurs sometimes or occasionally 3 = Not Descriptive, this occurs rarely or not at all

Societal Constraints

Techn o

logy
* *

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Group *

:*

In

id div

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The Context of Innovation: Lecture 1

What we know to be true:

Individuals must enlarge their toolsets The groups culture must support risk The organization must be structured The market must see utility and value The society must accept as legitimate The technology must be developed

Human Cloning

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The Context of Innovation: Lecture 1

) ) ) ) OUR'SOCIETY)WILL'ASK' ' IS'THIS'SAFE?' IS'THIS'OUR'ASPIRATION?' DOES'THIS'REINFORCE'OUR'IDENTITY?' DOES'THIS'HELP'US'GROW?'

Techno logy

Group

i Ind

v idu

al

Societal'Innova9on'Constraints' ' Values' Regula9ons' History'

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The Context of Innovation: Lecture 1

Read each statement and consider how closely it describes the situation in your dominant society. Record your assessment by putting a checkmark into the box that indicates how accurately it describes your situation.

Societal'Level'Diagnos9c' (What)Stops)adopBon?)'
5) SOCIETAL INNOVATION CONSTRAINTS Rating Diagnostic Statement

Constraints Diagnostic Survey

Q# 1 Val 2 Val 3 Val 4 Reg 5 Reg 6 Reg 7 Hst 8 Hst 9 Hst

1! 2! 3! 1! 2! 3! 1! 2! 3! 1! 2! 3! 1! 2! 3! 1! 2! 3! 1! 2! 3! 1! 2! 3! 1! 2! 3!

Customers use our products to express their personal identity Our products are targeted to users of particular demographics Our products challenge or reinforce ideas that people have about their identity Lawyers or top managers stall our innovation efforts for fear of legal risk Our innovation efforts are hampered by regulatory concerns Society has concerns about the ethical impact of our products Our products displace those a customer already has Using our products requires new ways of thinking and new cognitive maps Our customers want our products to look and perform the way they always have

1 = Highly Descriptive, this occurs often or on a routine basis 2 = Moderately Descriptive, this occurs sometimes or occasionally 3 = Not Descriptive, this occurs rarely or not at all

Technical Constraints

chno !"#$%&'()*!*+,--*./0&1*23*45678* logy *

Te

* *

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Group

In

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The Context of Innovation: Lecture 1

What we know to be true:

Individuals must enlarge their toolsets The groups culture must support risk The organization must be structured The market must see utility and value The society must accept as legitimate The technology must be developed

37

The Context of Innovation: Lecture 1

' ' ' ' ' TECHNOLOGY'IS'EASY!' ' CAN'WE'MAKE'IT'WORK?'

Techno

logy

Group
al

i Ind

v idu

Technical'Innova9on'Constraints'

Knowledge' Time' Environment'

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The Context of Innovation: Lecture 1

Read each statement and consider how closely it describes the technology and development processes you rely on to deliver your core products and services. Record your assessment by putting a checkmark into the box that indicates how accurately it describes your situation. Q# 1 UI 2 CI 3 CC 4 UC 5 Tm 6 Tm 7 Tm 8 Env 9 Env 10 Env 1! 1! 1! 1! Rating 2! 2! 2! 2! 3! 3! 3! 3! Diagnostic Statement We get caught off guard by things we didn't know starting out We have trouble moving research into production due to immature technology We use traditional models for solving new problems We don't test our assumptions when facing new problems We do not test for the show-stopping issues early in a project We do not test our progress as we move through complex innovation projects We do not explicitly plan for learning in project plans We have difficulty getting the raw materials we need to produce our products Our activities require or consume an ecologically-limited resource Our activities require significant mitigating efforts to avoid ecological harm.

Technology''Level'Diagnos9c' (What)stops)funcBoning?)'
Constraints Diagnostic Survey 6) TECHNOLOGY INNOVATION CONSTRAINTS

1! 2! 3! 1! 2! 3! 1! 2! 3! 1! 2! 3! 1! 2! 3! 1! 2! 3!

1 = Highly Descriptive, this occurs often or on a routine basis 2 = Moderately Descriptive, this occurs sometimes or occasionally 3 = Not Descriptive, this occurs rarely or not at all

Six'Innova9on'Constraints'
Gro Co up nst ra i n

X
ts
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Organizational Constraints

Societal Constraints

l ua vid ints i Ind stra n Co

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The Context of Innovation: Lecture 1

Credits
Illustrations: Ariya Guy Kopsombut Photos:
Human Head - Chrkl @wikimedia.org Svalbard Global Seed Vault - Dag Endresen @flicker Nissan Tama MIKI Yoshihito @flickr Light Bulb - KMJ@wikimedia Commons Imbiss - Paul Robertson @flicker Grillwalker - Paul Keller; Eirik Newth; Fairbrand @flicker Apple Newton moparx @flickr Segway Anti-Terror p373@flickr Kodak Digital Camera Brett Jordan Metropolitan Opera - wikimedia Yair-haklai@flicker AMC Theater - Digital_Third_Eye; @flicker Christos Surrounded Islands Jennifer Mei @flicker Oil Spill Otter Otter Arlis Reference @flicker Hair - How Can I Recycle This? @flicker Oil Spill - Planet Vicster; Victoria K @flicker Surgery - Army Medicine @flicker Trustfall Rocksee @flicker Clones Soundman1024@flickr Napster Dick Thomas Johnson @flickr Org Chart Graeme Campbell @wikimediaCommons

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