built to thrive: using toyota to illustrate innovation portfolio management

Radical Ideas | Practical Implementation

Built to Thrive:using Toyota to illustrate

innovation portfolio management

Dr. Jay van Zyl

www.BuiltToThrive.com

www.SystemicLogic.com

How Innovative is Toyota?How Innovative is Toyota?

What can you learn from them?What can you learn from them?

OFFERINGS

ORGANIZATION CAPABILITIES

Enhance Renew

Enhance

INCREMENTAL INNOVATION

DISRUPTIVE INNOVATION:DISRUPT OFFERING

RADICAL INNOVATION

DISRUPTIVE INNOVATION:DISRUPT CAPABILITY

TOYOTA TSUSHO

Innovation Portfolio Assessment:Innovation Portfolio Assessment:Managing the balance between execution and innovation

TOYOTA NEW BUSINESS

ENTERPRISES

TOYOTA PRODUCTION

SYSTEM

This is a qualitative depiction, and should be used for illustrative purposes only.

TOYOTA WORLD-WIDE

OPERATIONS

TOYOTA LOCALIZATION

STRATEGY

TOYOTA WORLD-WIDE

OPERATIONS

TOYOTA METAPOLIS

OFFERINGS

ORGANIZATION CAPABILITIES

Enhance Renew

Enhance

INCREMENTAL INNOVATION

DISRUPTIVE INNOVATION:DISRUPT OFFERING

RADICAL INNOVATION

DISRUPTIVE INNOVATION:DISRUPT CAPABILITY

TOYOTA TSUSHO

Innovation Portfolio Assessment:Innovation Portfolio Assessment:Driving today's priorities for future success

Plan for the future for today's success

TOYOTA SCION TOYOTA NEW

BUSINESS ENTERPRISES

TOYOTA GLOBAL PRODUCTION

NETWORK & MUTUAL SUPPLY

TOYOTA CAROLLA

TOYOTA HYBRID CARS

TOYOTA ROBOTICS AND

MOBILITY

TOYOTA PRODUCTION

SYSTEM

TOYOTA FINANCIAL SERVICES

This is a qualitative depiction, and should be used for illustrative purposes only.

TOYOTA WORLD-WIDE

OPERATIONS

TOYOTA LEXUS

DOMINANT IDEACUSTOMER IMMERSION

NETWORK PARADIGM

CO-PRODUCTION

VENTURING FOR SUCCESS

INNOVATORS DILEMMA

The Dominant IdeaThe Dominant Idea

The Dominant Idea: Innovate The Dominant Idea: Innovate offerings and not just products offerings and not just products

and servicesand servicesCentered on the theme "Innovation into the Future," the Toyota Global Vision 2010 proposes the corporate image for which all of Toyota should strive and the paradigm change Toyota should undergo.

Customer Immersion:Customer Immersion:A Globalized View on Customer A Globalized View on Customer

UnderstandingUnderstanding

Key Corporate Strategy Feedback:Key Corporate Strategy Feedback:Collecting wisdom to drive competitive edgeCollecting wisdom to drive competitive edge

Key Corporate Strategy Feedback:Key Corporate Strategy Feedback:Beyond the value chain, towards value networksBeyond the value chain, towards value networks

Key Corporate Strategy Feedback:Key Corporate Strategy Feedback:Market-making through localizationMarket-making through localization

Manufacturing: World-Wide Operations:Manufacturing: World-Wide Operations:Capturing the essence of local capabilitiesCapturing the essence of local capabilities

Design, Research & Development:Design, Research & Development:Integrated perspective on delivering valueIntegrated perspective on delivering value

Rethinking LocalizationRethinking Localization

Getting closer to customers

Rethinking LocalizationRethinking LocalizationGetting closer to customers

Building a Brand in Banking:Building a Brand in Banking:Customers for LifeCustomers for Life

Social Connections: Considering Future Car-based Social Connections: Considering Future Car-based Lifestyles with CustomersLifestyles with Customers

Test driving, purchasing with virtual currency, and driving virtual cars based on production models.

Test driving, purchasing with virtual currency, and driving future cars and other vehicles that it would be difficult to experience in the real world.

Plant and worksite tours at the virtual Toyota Motor Corporation.

Learning about motor vehicles and Toyota's history in a virtual museum.

Learning about technologies and products through a variety of games.

Interacting with other users and with TMC through various events and services.

Towards an Towards an Integrated Network ParadigmIntegrated Network Paradigm

Toyota’s Next-Generation Telematics Service Toyota’s Next-Generation Telematics Service

Networked SocietyNetworked Society

Technology R&DTechnology R&DAchieving further advances in ITS will require the merging of a Achieving further advances in ITS will require the merging of a wide range of technologies that go beyond the conventional wide range of technologies that go beyond the conventional approach to building cars, such as detection technologies, approach to building cars, such as detection technologies, telecommunication technologies, and information-processing telecommunication technologies, and information-processing technologies.technologies.Toyota is leading the way to the commercialization and widespread Toyota is leading the way to the commercialization and widespread implementation of ITS by actively participating in research and implementation of ITS by actively participating in research and development and verification test projects in cooperation with development and verification test projects in cooperation with governmental agencies, the private sector, and academic institutions. governmental agencies, the private sector, and academic institutions. Individual companies within the Toyota Group are also participating Individual companies within the Toyota Group are also participating in efforts in their respective areas of expertise, and are working in efforts in their respective areas of expertise, and are working together to further advance the various control technologies and together to further advance the various control technologies and telecommunication technologies that have been researched and telecommunication technologies that have been researched and developed in the course of designing and building cars.developed in the course of designing and building cars.

The Scion Story:The Scion Story:

Using Co-Production to move Using Co-Production to move Towards CrowdsourcingTowards Crowdsourcing

Towards the FutureTowards the Future

Some Key InnovationsSome Key Innovations

Rethinking Mobility:Rethinking Mobility:Experimenting to Achieve Future SuccessExperimenting to Achieve Future Success

Venturing for SuccessVenturing for Success

The Origin and Development of New The Origin and Development of New Business Enterprises Business Enterprises

Venturing for SuccessVenturing for Success

Aero Asahi Corporation: creating your tomorrow through Aero Asahi Corporation: creating your tomorrow through the fusion of aviation and spatial informationthe fusion of aviation and spatial information

Good Life Design Co. LtdGood Life Design Co. Ltd

Toyota activity in BiotechnologyToyota activity in Biotechnology

The Innovators DilemmaThe Innovators Dilemma

Externalize ResearchExternalize Research

““The New Corporation's Philosophical System The New Corporation's Philosophical System comprising four levels and opens up the new times”comprising four levels and opens up the new times”

Basic philosophy - "Corporate Philosophy"Basic philosophy - "Corporate Philosophy" Living and prospering together with people, society, and the Living and prospering together with people, society, and the

globe, we aim to be a value-generating corporation that globe, we aim to be a value-generating corporation that contributes to creation of a prosperous society.contributes to creation of a prosperous society.

"Behavioral Guidelines” - As a good corporate citizen, we will:"Behavioral Guidelines” - As a good corporate citizen, we will: implement open and fair corporate activitiesimplement open and fair corporate activities fulfill our social responsibilities, and conserve the global fulfill our social responsibilities, and conserve the global

environment.environment. offer creativity, and provide added valueoffer creativity, and provide added value respect people, and create an active workplace worth working respect people, and create an active workplace worth working

in.in.

Creating new companies for a new futureCreating new companies for a new future

Vision - "VISION2015 -LEAD THE NEXT-"Vision - "VISION2015 -LEAD THE NEXT-" Strategic IntentionsStrategic Intentions Becoming a "value generating corporation," the new Toyota Becoming a "value generating corporation," the new Toyota

Tsusho aims to make a further leap by creating next-generation Tsusho aims to make a further leap by creating next-generation businesses in 6 business domains = 6 business divisions.businesses in 6 business domains = 6 business divisions.

“LEAD THE NEXT”

Expansive ThinkingExpansive Thinking

DOMINANT IDEACUSTOMER IMMERSION

NETWORK PARADIGM

CO-PRODUCTION

VENTURING FOR SUCCESS

INNOVATORS DILEMMA

built to thrive: using toyota to illustrate innovation portfolio management

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