BUSINESS MODEL INNOVATION/ Reset for growth
Making Innovation Everyone's Job
Job Julian Birkinshaw , Professor of Strategic and International Management, Co-Founder of the Management Innovation Lab (MLab), LONDON BUSINESS SCHOOL
Where does the responsibility for innovation reside?
Two questions to consider with innovation:
How can you build innovation into the corporate DNA so everyone is involved?
How can you harness new web-based technologies to democratize the process of innovation?
Five Myths of Innovation:
- 1. The Eureka Moment
- 2. Build it and they will come.
- 3. Open innovation is the future
- 4. Pay is paramount
- 5. Bottom up is best
Most innovation comes from the bottom, but to be successful, it needs to be aligned with the goals of the entire company. The internet should be looked at as a way to inspire change.
A New Business Model for Crossing the Final Frontier
Stephen Attenborough , Commercial Director, VIRGIN GALACTIC
For one example of how humans can innovate in a fast amount of time effectively, we can look at the 1960s and the US going to the moon. Since then, fewer than 500 people have been to the moon. One in 50 that have tried have died in the venture, which is not great for progress.
The Virgin Companies all share a brand, but are all separate in terms of each brand , from mobile to airlines. The employees for each company also love the innovative terms that take place, which leads to great ideas.
Innovation at Virgin is about looking at the existing world and looking to do it much better than others in the market. Attenborough references Virgin Atlantic.
To push the suppliers and customers, Virgin believes they need to do things more efficient than they are currently doing. Virgin set out to do this by funding an aircraft that traveled around the world. This technology resulted in the 787 Dreamliner. They worked with Boeing to do so.
They've set out do this in Space. The problem: the way we get to space hasn't changed in 50 years. They set a prize up to get someone to develop a new and innovative system to get humans into space several times with one vehicle. Modeled the landing gear from a shuttlecock, as they always land ball down. After developing this, they had to make sure they had a market that would buy their product. Over 410 individuals contributed $55 million to the project to become astronauts. Spaceport America in New Mexico, is the first commercial spaceport.
Virgin cannot promise a start date for commercial service. This rests on the opportunity for the trips to be completely safe. Test flights are in progress.
'Virtualization'- Revolutionizing the Value Chain
Dagmar Chlosta, Senior Vice President, ADIDAS GROUP
Adidas' goal is to be the leader in the sporting goods industry. For 2011, they are at almost 12.99 billion euros worldwide. The main brands: Adidas, Reebok, Taylormade, Rockport. They had to re-evaluate their value chain to keep up with the fast pace of today's fashion cycle.
They wanted to virtualize their sample process: move away from physical examples to 3D examples. Nothing like this existed yet. They saw virtualization as the perfect opportunity to meet their needs
Adidas sees virtualization as the future of the sporting goods industry. Now they can produce one sample in one color, then create the rest virtually. This also gives them the opportunity to work hands-on with their customers and create new sketches in real time.
Circumnavigating the Corporate Immune System
Christian Doll, Product Service Innovation, SIEMENS AG
Keys to successful innovation:
- Knowing Good ideas do not only make a difference
- Understanding that innovation is risky
- Protection of top management
- Trust from project members
- A large team is needed
- The innovator is a threat for stake holders not involved
- Formal and informal organizations needs to be involved
- One can never be sure of what's happening
Balancing Risks and Opportunities in Collaborative R&D
Carlos Haertel , Managing Director , GE GLOBAL RESEARCH
Most of the critical business decisions have to be made around countries that are far away from the headquarters. The GE Campus is strategically set up on the campus of a University in Munich. They want to collaborate with their partners, so they placed themselves close.
- 1. Reaching across disciplines
- 2. Spreading technology across the company
- 3. Specialize in tackling the 'New'
To bring and idea to live, you have to have technology. You must also determine if the technology is possible.
Keeping core technology that makes you unique to yourself is important.
Keeping in mind for partnerships: cost, speed and quality, getting to market and creativity