Presentation about Strategy and Innovation to GFM students at ITC / TU Twente, may 14th, 2012

1. ON
STRATEGY
&
OPEN INNOVATION

2. the strict rules of
On Strategy & (Open) Innovation
ITC / TU Twente, Enschede
Guest Lecture
May 14th, 2012

3. STRATEGY

5. Strategy schools
Mintzberg et al. (2005, p 5) single adjective to capture each view of the strategy process:
The Design School: strategy formation as a process of conception
The Planning School: strategy formation as a formal process
The Positioning School: strategy formation as an analytical process
The Entrepreneurial School: strategy formation as a visionary process
The Cognitive School: strategy formation as a mental process
The Learning School: strategy formation as an emergent process
The Power School: strategy formation as a process of negotiation
The Cultural School: strategy formation as a collective process
The Environmental School: strategy formation as a reactive process
The Configuration School: strategy formation as a process of transformation”
(Mintzberg et al. 2005, p 5)
Kindly borrowed from Richard James Sharp

7. Mission
Core values
Vision
Strategy
Balanced scorecard
Strategic initiatives
Personal targets
Strategic results
Shareholders Customers Excellent Motivated
happy enthusiastic processes personnel

8. On some roads it is obvious which path to take

9. But on others,
you cannot know
what is behind the curve

10. ..clear steps towards an uncertain future

11. Playing the game,
but what are rules?

12. Strategy as a plan
or
Strategy as a (realised) pattern?

13. Realized
Ratio
Deliberate /
Realized
Strategy safari / Minzberg

16. “we considered ourselves lost and waited for the
end. And then one of us found a map in his pocket.
That calmed us down.
We pitched camp, lasted out the snowstorm and
then with the map we discovered our bearings.
And here we are.
The lieutenant borrowed this remarkable map
and had a good look at it. It was not a map of the
Alps, but of the Pyrenees”
From a poem by Miroslav Holub and a Karl Weick paper on Sensemaking

17. “Strategy has become like
efficiently navigating in the fog”
Prahalad, Ramawamy,
The Future of Competition

18. Sorry,
no strict rules for strategy
See strategy as
the ultimate mash-up
Write things down and look back,
three years from today!(and take some notes for the near future as well)

19. INNOVATION

20. The next best thing
since sliced bread

21. The next best thing
since sliced bread

22. Innovation = invention + bring
into common usage*
Only little consensus…
Conway, Stewart, 2009

23. Consider: “Innovation”
• Sometimes not what you think it is.
• Sometimes, others benefits more then you do.
• Often, users lead, and some more, then others.

24. 1. What’s the innovation?

25. Foto: © Bildarchiv ETH-Bibliothek [m]

26. 2. Who benefits from innovation?

27. 3. Who leads
the innovation?
BikePortland.org

28. Image NY Times ©

29. Open Innovation, a new paradigm? !
Chesbrough, 2003

30. Open Innovation- Defined
“Open Innovation is the use of purposive inflows
and outflows of knowledge to accelerate
internal innovation, and expand the market
for external use of innovation, respectively”
Chesbrough, 2006.

32. Existing
market
Exploration Exploitation

33. New
market

35. Why Open Innovation Matters?
Faster Time to market
Greater Diffusion of Knowledge
Absorptive capacity increased
Follow the customer
…
Max capabilities for society
…

36. Sorry,
no strict rules for innovation
YOUR role
in innovation
is increasingly
important
Claim that role, and social media helps!

37. Final remarks
Like maps, models of strategy are not reality
Perhaps agility is the most strategic asset of a firm
Companies can never know what a user wants,
better then the user does herself

38. Final thought
Way more smart people
do NOT work for Esri….
…“all” we have to do is
connect (to) them!

39. Suggested readings (books)
• What they don’t teach you at HBS, Mark
McCormack (web)
• Democratizing Innovation, Eric von Hippel,
2005. (web)
• The Halo Effect, Phil Rosenzweig, (web)
• Strategy safari (..), Henry Minzberg (web).
• …

40. Suggested readings (papers)
• Chesbrough, H. W., & Appleyard, M. M. (2007). Open
Innovation and Strategy. California Management
Review, 50(1), 57-77. UNIVERSITY OF CALIFORNIA.
• Von Hippel, E., & von Krogh, H, (2006), Free revealing
and the private-collective model for innovation
incentives, R & D Management, 36, 3.
• Pisano, G. P., & Teece, D. J. (2007). How to Capture
Value from Innovation. California Management Review,
50(1), 278-296. UNIVERSITY OF CALIFORNIA. …
• …

41. How it’s made
• Thinking, research, conversations
• Correspondence with ITC staff
• Ebsco and scholar.google.com
• Feedback to questions by students (thanks!)
• Tools: paper, Evernote, MindJet, PowerPoint,
Slideshare, LinkedIn, Wordpress, Twitter,…