Your Hosts Today Professor Tazeeb Rajwani Director of Executive Education, Essex Business School Viren Lall Managing Director, ChangeSchool Emily Macdonald Head of Marketing, Essex Business School
Adapt or Die: How to foster innovation to futureproof your business University of Essex Business School Webinar 11am, Friday 13th October 2017
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2030: 47% of all current jobs could be automated (+/- 2 billion jobs)
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2016: 90% of all UK Jobs created now come from companies that are less than 5 years old
AT THE HEART OF CAPITALISM IS CREATIVE DESTRUCTION.
Joseph Schumpeter (1883-1950)
INNOVATION IS THE MARKET INTRODUCTION OF A TECHNICAL OR ORGANISATIONAL NOVELTY, NOT JUST ITS INVENTION. Joseph Schumpeter (1883-1950)
What did people tell us?
“We find it hard to start innovating” So what makes innovation hard?
“When we do innovate, results are not inspiring” How can you make it more successful?
“How can I get my whole company, not just leadership team to be more innovative?” Can we manage our company culture?
Value of Kodak $m
Payoff from the iPod
C’mon, C’mon It’s either one or the other…
.
Given a 10 percent chance of a 100-times payout, you should take that bet every time. Failure and invention are inseparable twins. To invent you have to experiment, and if you know in advance that it's going to work, it's not an experiment"
Jeff Bezos, CEO Amazon
What did people tell us?
What makes innovation hard? What makes innovation different? How can you manage innovation?
Business as usual
Innovation
Business as usual
Short term Earning Call driven Net Present Value Go / No Go
Innovation
Business as usual
Short term Earning Call driven Net Present Value Go / No Go
Innovation
You will always miss 100% of shots that you don’t take
Wayne Gretzky, Hockey Legend
Future proofed organisations work on 3 horizons in parallel:
Product
Process
Business Model
Operating Margin Growth in Excess of Competitive Peers
Source: IBM, CEOs are expanding the innovation horizon: important implications for CIOs
Innovation is under your control
Who innovates?
 Incumbent: A firm that manufactured and sold at least one product belonging to the preceding product generation
Non-Incumbent 53%
Incumbent 47% Source: Chandy and Tellis 2000
Innovation is under your control
Innovation Paradoxes Pre-empting the future, yet profiting in the present Developing core competencies, but preventing core rigidities Maintaining organizational continuity, yet adapting and changing Maintaining standard processes, yet fostering creative chaos Becoming cross-functional, yet deepening functional expertise Diversifying and growing, but yet staying focused and lean
What Drives Sustained Innovation Across Nations? Popular belief:
Ethnicity
Sociologists:
Religion
Social-psychologists:
National culture
Geographers:
(Distance from equator)2
Legal scholars:
Intellectual property
Economists:
Inputs
Thesis:
Internal culture of firms
Main Finding: A Firm’s Culture
Firms’ cultural traits drive innovation across nations
Innovation is under your control
What Do We Mean by Firm Culture?
 Three attitudes 1. Willingness to cannibalize 2. Future market focus 3. Tolerance for risk
 Three practices 1. Product champions 2. Asymmetric incentives 3. Internal markets
What makes innovation hard?
What makes innovation different?
How can you manage innovation?
What makes innovation hard? What makes innovation different? How can you manage innovation?
What next? So what do you need to do as leaders and managers? So what do you need to do as a leader to set your company on this path? What is the role of the manager? How do you know when things are going well and when they are not? What are the biggest pitfalls you will face and how can you avoid them?
For further information:
Email: Tazeeb.rajwani@essex.ac.uk Tazeeb Rajwani
THANK YOU
@Tazeeb