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Editor's Notes

• #5: A desire to improve innovation performance to meet more challenging market, customer & business goalsAbsence of a clearly defined and accepted view within the company as how to meet these more ambitious goalsAn fragmented innovation culture unsuited to achieving the desired goals and with no real consensus as to what it should be or how to grow it
• #6: Innosight IBM Innovating Your Own Term pdfGenerally, companies fall into one of four innovation archetypes. The first is the “marketplace of ideas.” In these organizations, employees are tasked with creating new ideas and implementing them quickly. Google is typical of this archetype. “The company emphasizes hiring bright, creative people and tells them that up to 20 percent of their time may be spent pursuing personal ideas,” write Stephen Wunker and George Pohle in Forbes. “While the firm has portfolio guidelines—currently 70 percent of projects focus on core search and adds, 20 percent on extensions to search such as news and 10 percent on speculative ideas—there is a highly decentralized system to determine which projects move ahead. Employees create ideas, post them on internal Web bulletin boards, and discuss merits, risks, and near-term action plans.” The ideas that get the most support are rapidly prototyped and released internally for beta testing. Employees are recognized for their achievements and sometimes rewarded for failing if their failures shed insight into the technology or market.A second innovation archetype is “visionary leadership.” It typically involves a senior executive who understands the marketplace better than his or her customers and often generates unexpected ideas. Employees are often motivated to pursue the leader’s vision. “Steve Jobs of Apple is the paragon,” write Wunker and Pohle. “His visions have included creating one of the first personal computers, commercializing the graphic user interface on the first Macintosh, bringing design to computing with the iMac, and developing the iPod. While the firm has created many innovations, it tends to launch only a few key products at a time and in fact spends less on R&D than the industry average.” Jobs has not conceived every idea at Apple, but he has a knack for spotting high-potential ideas and championing them. Other leaders spend time observing potential customers. Sony’s Akio Morita observed consumers in their daily lives to come up with new product ideas that would serve them better, such as the Walkman.A third archetype is “systematic innovation.” Unlike Google or Apple, most companies tend to create processes that produce systematic results. Samsung has succeeded in this archetype by mixing executive prioritization and team processes. Its international design centers look for emerging customer trends, while its innovation design lab schools promising designers and sends them on internships to other industries to gain new ways of thinking. Ten percent of Samsung’s revenue is funneled into R&D, while 15 percent of its R&D staff is dedicated to looking at customer needs 10 years from now. Furthermore, senior management’s prioritization of a culture of perpetual crisis forces the firm to look seriously at competition and developing new ideas. “One key is breaking down barriers between internal groups and then facilitating rapid innovation to meet competitive challenges,” Wunker and Pohle write. “More than 2,000 people a year cycle through the value innovation program center outside Seoul, where designers, engineers, planners, and programmers gather for days—or months—on end to hammer out detailed specifications for new products.”A fourth innovation archetype is collaborative innovation. This sees organizations teaming with outside help to form new innovative ideas. Vodafone exemplifies this model, depending on outside suppliers for business, such as Ericsson (network equipment), Carphone Warehouse (customers), and other third parties for software applications. Collaboration organizations gather ‘innovation intelligence’ by building formal relationships with other firms that can help them not only shape the innovative concept but also actively implement the solution,” write Wunker and Pohle. “Most movie studios are collaborative organizations, partnering with independent producers to generate ideas, with technology companies to create special effects, and with advertising agencies to promote new releases.” Social networking Web site Facebook has also seen success from this model after recently opening its platform to outside developers. Users now have an array of applications—including fantasy sports and photo sharing—thanks to the contributions of thousands of programmers.What are the distinguishing factors:LeadershipStaffProcessEnvironmentWhat does your organisation tend towards today, in the past (has it changed?) and why?What do you think it needs to be in the future? Is there an ideal to aspire to?Is it possible to ‘break-out’ of your archetype box and would this be a good thing?Scope (who is involved)ImplementationPrioritiesIntelligence (Inputs)