This describes four big shifts, among them radical adjacency, from a speech I gave in Sydney June 4th.

1. June 2013
Haydn Shaughnessy

2. How Do You Become More Innovative?
What Does That Organization Look Like?
Fit For The Future?
How About The People In It?

3. “Normally when people think of
making music they think write,
record, mix. We don’t do that at all.
It is confusing and terrifying to
some artists but we do all three at
the same time. Write, mix, open
audio files, throw things onto the
phone….”
Mike Shinoda Linkin Park
Eclectic, knowledgeable, good decisions

4. “He (producer Salaam Remi) started
going through his sample library and all
these different crazy drums. And there
were these loud, obnoxious, just
destructive drums, and I was like, Yeah! A
girl on fire is loud and obnoxious and
destructive and just, like, totally
unrelenting and she’s free….”
Alicia Keyes on writing Girl on Fire

5. FOR EXAMPLE
Launching this
Before this….
Options, judgement

6. FOUR BIG SHIFTS

7. BIG SHIFT 1:
EXTERNALIZATION

8. ServicesServices EmployeesEmployees The
CEO
The
CEO
External
Risk
External
Risk
1990-92 2007 - 102000-03 2004-06
A Semantic Analysis of 20 years of business writing in The Harvard Business
Review, source Haydn Shaughnessy
Transition
point
Transition
point
INTERNALITIES EXTERNALITIES
How we are transitioning

9. What is Externalizable?

10. A Basic Enterprise Maturity Model
THE PRODUCT OF THE 21ST
CENTURY IS Hardware-
software- service- and-communications

11. Lab-based, driven
by oligopolies that
shape new markets
Attempts to
interpret and
adapt to the
service
economy
The
organization is
the innovation
CLOSE UP

12. THE BIG SHIFT 2 RADICAL ADJACENCY
THE REQUIREMENT TO GO OUT INTO
OTHER MARKETS WITH NEW
PRODUCTS, OR TO GO WHERE YOU
HAVE NO TRACK RECORD OR CORE
COMPETENCY.
How come Apple is the world’s top retailer?

13. RADICAL ADJACENCY
EXAMPLES
Apple into smartphones, and into retail
Microsoft into telephony and devices
Google into Mobile, Lending and Autos
Walmart trying to
open a bank

14. The BIG SHIFT 3 THE DEVICE ECONOMY
MORE AND MORE ACTIVITY IS
MEDIATED VIA A DEVICE WHICH IN
TURN MEANS YOU NEED A DEVICE
STRATEGY

15. The Device Economy takes us
from production to services to
device-software-service
500 BILLION
New device
businesses – social
connections,
health,
entertainment,
reading, cooking,
travel….

16. THE BIG SHIFT 4 – NARROW
INNOVATION
MULTIPLE SIMULTANEOUS
INNOVATIONS TO SERVE NEW,
NARROWER MARKETS FOR
THE GLOBAL MIDDLE CLASS.
Google
Glass will
launch with
2,000 apps

17. Why is it important now?
The new global middle class creates
massively differentiated needs, and low
cost, good enough goods
900 million – 2
billion people by
2030 = x 3 or x 7
Unprecedented opportunity.

18. Narrow Innovation
Example: Samsung
Over 150 different types of phone in
the US alone
Makes every type of display – OLED, LCD, PLASMA
Make computers, phones, tablets, TVs, white
goods etc

19. The Big Shift
Production Service ELASTIC
Siloed IT
structure,
programmatic
strategy,
closed R&D,
five year
plans,
clubbish
Plug and play
IT,
Outsourcing,
Knowledge
Management,
Services,
Agile, Open
management
Platform and
Cloud,
Mobility, APIs.
Externalized.
Ideation,
Crowd, Elastic
Resources
Narrow,
Radical
Adjacency

20. DECISION MAKING
WHAT DOES MY COMPANY
EXPECT ME TO DO?
WHAT IS THE RIGHT THING TO DO?
HOW CAN I LEARN A NEW BASIS
FOR DECISION MAKING CENTRED
ON EXTERNAL RELATIONSHIPS?

21. DECISION MAKING
WHICH ARE THE RIGHT PARTNER
OPTIONS IN THE GROUPS I DEAL WITH?
HOW CAN WE DEVOLVE RISK?
HOW CAN WE CREATE MORE OPTIONS?
ARE THERE ANY ECOSYTEM
OPPORTUNITIES AVAILABLE?

22. NOW THAT WE CAN NO
L0NGER SIMPLIFY
EVERYTHING WHY
DON’T WE REACH OUT
TO NEW HORIZONS
AND ACHIEVE OUR
DREAMS?

23. THE END
HAYDN SHAUGHNESSY
Blogs/forbes.com/haydnshaughnessy
haydn@cogenuity.com

24. The 10% rule
You will not make your staff creative and innovative
but you may make 10% of them more so.
Lean
Decision
improvement
Delegate budget
Delegate BI
Find your 10%