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Melbourne, June, 2016
Program Overview
Dr. Peter C. [email protected]
Building Strategic Innovation Capability
Building Strategic Innovation Capability:Insights & Practices
The Agenda
Program Overview
The Strategic Innovation Capability Model
Creating the Innovation Imperative
Discovering Innovation Opportunities
Entrepreneurship & Open Innovation Networks
Innovating in a World of Big Data
Innovation in Venture Financing
Building a Culture for Innovation
Building Innovation Commitment
Copyright 2016. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, distributed, or reproduced without express written permission.
Building Strategic Innovation Capability:Insights & Practices
Wednesday, June 1
Monday, July 25
Tuesday, July 26
Wednesday, July 27
Thursday, July 28
Friday, July 29
Program KickoffProgram OverviewIntroduction to the Strategic Innovation Capability ModelThe Innovation Opportunity
Reflection SessionInsights from Individual & Team Assignments
Creating the Innovation Imperative
Defining SuccessPeter Wilton
Lunch (12:30)
8:30
10:0010:15
12:001:00
3:003:15
5:00
Understanding the Innovation SpectrumAssignment: Mapping the Innovation PortforlioSite Visit Briefing & Team Leader Assignments
Break
Break
Creating the Innovation Imperative, cont'd
Setting the Long-Term Stretch GoalRethinking the Business Model AssumptionsCustomer Discovery
Peter Wilton
Break
Depart for Site Visit
Lunch Depart for Site Visit
Break
Depart for Site Visit
Depart for Site Visit
Break Break
Lunch
Break
Program IntegrationKey InsightsFuture ExperimentsFollow-up Review
Peter Wilton
Closing DinnerFree Time Free Time Free Time
Building a Culture for Innovation
Intrapreneurship ModelsLearning Through Failure
Mark Coopersmith
Problem-Framing/ Problem-Solving,
continuedSara Beckman
Discovering Innovation Opportunities
Problem-Framing/ Problem-Solving
Sara Beckman
Building a Culture for Innovation
Intrapreneurship ModelsLearning Through Failure
Mark Coopersmith
Entrepreneurship & Innovation in Silicon Valley
The Silicon Valley ModelEntrepreneurial Leadership
Jerry Engel
Managing Open Innovation NetworksJerry Engel
Innovation in Venutre FinancingGreg LaBlanc
Innovating in the World of Big DataGreg LaBlanc
The Program AgendaSunday, July 24
Business Model Innovation in the Wine Industry
The "Naked Wines" Story
(2:00-4:00 pm)
Free Time
Site Visit to Leading Bay Area Innovator:Frog Design(1:30-3:00)
Site Visit to Leading Bay Area Innovator:Tube Mogul (1:00-3:00)
Site Visit to Leading Bay Area Innovator:Google (10:00-12:45)
Site Visit to Leading Bay Area Innovator:J-Labs (2:00-3:00)
Site Visit to Leading Bay Area Innovator:Autodesk (3:30-5:00)
Drop-In at Bay Area Start-Up Community Space:Galvanize Tech Campus
Site Visit to Leading Bay Area Innovator:TBA(3:30-5:00)
Building Innovation Commitment: The Leadership Role
Managing Parallel Innovation ModelsDeciding Innovation Posture
Peter Wilton
Mitigating Innovation Risk
Tour of Napa ValleyVisit to Local Napa Valley CommunityVisit to Leading California Wineries
(10:00 am - 2:00 pm)
Free Time
Depart Hotel for Silicon Valley
Depart Hotel for Napa Valley
Melbourne, June, 2016
Building Strategic Innovation Capability
The Strategic Innovation Capability Model
Dr. Peter C. [email protected]
Copyright 2016. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, distributed, or reproduced without express written permission.
Building Strategic Innovation Capability:Insights & Practices
The Agenda
Program Overview
The Strategic Innovation Capability Model
Creating the Innovation Imperative
Discovering Innovation Opportunities
Entrepreneurship & Open Innovation Networks
Innovating in a World of Big Data
Innovation in Venture Financing
Building a Culture for Innovation
Building Innovation Commitment
Building Strategic Innovation Capability
What Is The Strategic Innovation Capability Model?
An integrated architecture for designing and implementing effective
innovation strategies that sustain organisational resilience.
Three Key Components:
Deciding Strategic Innovation IntentLinking Innovation to Business PerformanceBuilding Innovation Competency
Copyright 2016. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, distributed, or reproduced without express written permission.
Building Strategic Innovation Capability
The Strategic Innovation Capability Model
Building Innovation
Competency
Deciding Strategic Innovation Intent
Linking Innovation to Business Performance
What do we need to do to stay relevant in an evolving market? What mix of sustaining versus
reframing innovation activity is required to maintain market leadership?
How will our investments into innovation drive
growth, profitability and leadership reputation?
What are the competencies and models we need to build in order to support innovation
throughout the organisation?
How do we link innovation to tangible business outcomes?
Building Strategic Innovation Capability
Deciding Strategic Innovation Intent
How relevant and unique is our current way of creating value for our customers?How could we be disrupted and lose relevance with our customers? What overlooked or underserved approaches to creating value have we not yet seen?When should we reframe value in our industry? When should we introduce entirely new approaches to creating customer value? What happens if we don't?What will happen to our existing business model and organ- isational assets if we shift the focus of value creation and delivery?
What do we need to do to stay relevant in an evolving market? What should be the mix of sustaining versus reframing
innovation activity and what will be their respective roles in maintaining
market leadership?
The Strategic Innovation Capability Model
Copyright 2016. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, distributed, or reproduced without express written permission.
Building Strategic Innovation Capability
Why innovate? What are we optimizing to? Internal efficiency or market effectiveness? How does this choice impact the innovation strategy?What are the drivers of the enterprise's ultimate success: - growth, profitability, leadership reputation, human capital attraction? How does innovation impact these drivers? Where should management attention be focused to get ahead of the performance curve? How do we find the next growth curve? What new business models will unleash our next wave of growth and profitability? How does innovation impact customer loyalty? What type of innovation portfolio is required to build true customer franchise? How does this loyalty translate into tangible benefit to the organization?Should innovation be just another function in the business, or should it be embedded as the core of the operating model?
Linking Innovation to Business Performance
How will our investments into innovation drive
growth, profitability and leadership reputation?
How do we link innovation to tangible business outcomes?
The Strategic Innovation Capability Model
Building Strategic Innovation Capability
The Strategic Innovation Capability Model
Building Innovation
Competency
What are the competencies and models we need to build in order to support
innovation throughout the organisation?
How do we legitimize innovation? How do we create the organisational imperative or sense of urgency for innovating?How do we discover innovation opportunities? How do we find the invisible? How do we prioritize these opportunities?How willing are we to accept that our organization does not have a monopoly on all good ideas? How do we work with others to co-create new forms of value? How do we position ourselves in new industry ecosystems?How do we build a culture where people feel empowered to question the assumptions and behave entrepreneurially? How will we manage innovation risk? How do we learn from failure?How will we manage parallel innovation cultures and governance models (sustaining & reframing)? How will we ensure reframing opportunities are supported effectively?
Copyright 2016. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, distributed, or reproduced without express written permission.
Building Strategic Innovation Capability
The Strategic Innovation Capability Model
Building Innovation Competency
Legitimizing InnovationDiscovering Innovation OpportunitiesHarnessing Innovation Potential
Building and Managing the Open Innovation NetworkEcosystem Competition & Positioning
The Senior Leadership RoleDeciding Innovation PostureManaging Innovation Risk
Defining Innovation SuccessSetting the Long-term Stretch GoalChallenging the Business AssumptionsCustomer- vs. Resource-Led DiscoveryDesign Thinking
Understanding EntrepreneurshipCorporate IntrapreneurshipUnderstanding & Managing Failure
Creating the Innovation Culture
Building Commitment
Melbourne, June, 2016
Building Strategic Innovation Capability
Creating the Innovation Imperative
Dr. Peter C. [email protected]
Copyright 2016. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, distributed, or reproduced without express written permission.
Building Strategic Innovation Capability:Insights & Practices
The Agenda
Program Overview
The Strategic Innovation Capability Model
Creating the Innovation Imperative
Discovering Innovation Opportunities
Entrepreneurship & Open Innovation Networks
Innovating in a World of Big Data
Innovation in Venture Financing
Building a Culture for Innovation
Building Innovation Commitment
Building Strategic Innovation Capability
Deciding Strategic Innovation Intent
How relevant and unique is our current way of creating value for our customers?How could we be disrupted and lose relevance with our customers? What overlooked or underserved approaches to creating value have we not yet seen?When should we reframe value in our industry? When should we introduce entirely new approaches to creating customer value? What happens if we don't?What will happen to our existing business model and organ- isational assets if we shift the focus of value creation and delivery?
What do we need to do to stay relevant in an evolving market? What should be the mix of sustaining versus reframing
innovation activity and what will be their respective roles in maintaining
market leadership?
The Strategic Innovation Capability Model
Copyright 2016. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, distributed, or reproduced without express written permission.
Building Strategic Innovation Capability
What Is Innovation?
"The willingness to challenge the organisation's assumptions about the most efficient, and effective, way of creating and delivering value to the
firm's attractive customers."
Its not about technology.Its about business assumptions.
Building Strategic Innovation Capability
Traditional Planning
Assumptions
High
Disruptive,Invisible
Assumptions
Low
Low
High
Evolutionary, Invisible
Assumptions
"Clear Field-of-View",
Disruptive Assumptions
Impact on Required Organizational Capabilities
Conse
nsu
s Pr
obab
ility
What new/existing market opportunities should we pursue? What makes these opportunities attractive? What markets should we divest/exit from? Who are the key customers we intend to target in these markets? What new customers are emerging? How can these customers be segmented? How do their needs differ?Who will be our attractive customer(s)? What will be the future environment facing the organisation's attractive customers?How do these customer define success (value) in working with our organisation?
What specific tangible/intangible outcomes are they expecting?What relationship experience are they expecting?
How will we create value for these customers? What are the critical underserved or overlooked problems, tasks, or aspirations of these customers we intend to address?
What innovation portfolio should we build to deliver these customer outcomes and experiences? What mix of sustaining and reframing value-creation models will we offer?What specific sustaining solutions and experiences will we offer?What specific reframing solutions and experiences will we offer?What is our intended level of differentiation/uniqueness?
Who will be our competitors? Who are we being benchmarked against?What future capabilities will providers need in order to become and remain a leader?Which competitor/provider (either direct, indirect; current or emerging) is currently best prepared to meet our customer's emerging requirements?What will our unfair advantage be? What skills/assets will make us unique?Where will our revenue and profit margins come from? How can we diversify revenue streams?How well will our organization perform in this future, based upon its current capabilities?What mix of partnerships & alliances will we need in order to remain effective?
Copyright 2016. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, distributed, or reproduced without express written permission.
Building Strategic Innovation Capability
Anterasian & Philips"Discontinuities"
(Marketing Science Institute)
The firms with the highest profits were those with the management skills necessary to
redefine strategy and reconfigure the resources and skills of the organization to fit new market requirements caused by market
discontinuities and shocks.
MaintainingOrganisational Resilience
Building Strategic Innovation Capability
Articulating the Business Assumptions
Traditional Emerging
Niche drugsSmall moleculesCombination therapiesImmunotherapies
Small-scale, rapid, "experimental" trials Data winsAgility mattersPayer is primary stakeholder
Strategic thinking & collaboration mattersCompetitors are other bios, pharmas and non-pharmas
Blockbuster drugsLarge moleculesSingle agents Targeted modulators, inhibitors, inducersLarge-scale, rigorous clinical trialsDrugs winProcess/safety mattersRegulator is primary stakeholderDomain expertise matters
Competitors are other pharmas & bio-techs
An Example
Copyright 2016. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, distributed, or reproduced without express written permission.
Building Strategic Innovation Capability
Time
Val
ue
to C
ust
om
er
T0
Vr
Vs
REFR
AMIN
G
(Cre
atin
g va
lue i
n
prev
iously
unr
ecog
nize
d
or u
natta
inab
le way
s)
SUSTAINING
(Incremental, continuous
improvement of what
currently exists)
Understanding the Innovation Spectrum
Building Strategic Innovation Capability
Time
Val
ue
to C
ust
om
er
T0
KodakBlackberry (secure e-mail)Blockbuster Video Traditional TelcoTraditional HotelTraditional PharmaceuticalVenture CapitalTaxisATM'sTraditional Currency ExchangeUniversities/Higher Ed.Bricks & Mortar RetailingGM, Ford, BMW, etc.NestleTraveling CircusPermanent Work ForceMicrosoft, Intel, HP
French Wine
Digital Imaging Apple (infinite apps)Netflix/Video StreamingSKYPE/VoIP/FacetimeAirbnb, Scandic2Go, SnoozeboxPersonalized Health 2.0Kickstarter, OurCrowdUber, LyftDigital WalletsBitcoin/Block ChainKnowledge as a CommodityAmazon, Alibaba, RakutenGoogle, TeslaStarbucksCirque du SoleilUpwork, Task RabbitGoogle, Apple, Facebook, AmazonNew World Wine Producers
Sustaining Reframing
Copyright 2016. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, distributed, or reproduced without express written permission.
Building Strategic Innovation Capability
Building Strategic Innovation Capability
Copyright 2016. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, distributed, or reproduced without express written permission.
Building Strategic Innovation Capability
Building Strategic Innovation Capability
Copyright 2016. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, distributed, or reproduced without express written permission.
Building Strategic Innovation Capability
Building Strategic Innovation Capability
Copyright 2016. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, distributed, or reproduced without express written permission.
Building Strategic Innovation Capability
Building Strategic Innovation Capability
Time
Val
ue
to C
ust
om
er
T0
KodakBlackberry (secure e-mail)Blockbuster Video Traditional TelcoTraditional HotelTraditional PharmaceuticalVenture CapitalTaxisATM'sTraditional Currency ExchangeUniversities/Higher Ed.Bricks & Mortar RetailingGM, Ford, BMW, etc.NestleTraveling CircusPermanent Work ForceMicrosoft, Intel, HP
French Wine
Digital Imaging Apple (infinite apps)Netflix/Video StreamingSKYPE/VoIP/FacetimeAirbnb, Scandic2Go, SnoozeboxPersonalized Health 2.0Kickstarter, OurCrowdUber, LyftDigital WalletsBitcoin/Block ChainKnowledge as a CommodityAmazon, Alibaba, RakutenGoogle, TeslaStarbucksCirque du SoleilUpwork, Task RabbitGoogle, Apple, Facebook, AmazonNew World Wine Producers
Sustaining Reframing
Copyright 2016. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, distributed, or reproduced without express written permission.
Building Strategic Innovation Capability
Time
Val
ue
to C
ust
om
er
T0
Vr
Vs
REFR
AMIN
G
(Cre
atin
g va
lue i
n
prev
iously
unr
ecog
nize
d
or u
natta
inab
le way
s)
SUSTAINING
(Incremental, continuous
improvement of what
currently exists)
Understanding the Innovation Spectrum
Building Strategic Innovation Capability
Lesson No. 1
No industry is immune. Customer value can be reframed at any time in
in any industry.
Copyright 2016. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, distributed, or reproduced without express written permission.
Building Strategic Innovation Capability
Lesson No. 2
All reframing opportunities are enabled because of an overlooked or underserved
customer need or aspiration.
Building Strategic Innovation Capability
Lesson No. 3
Everything has risk, including the strategy of not
reframing, which can ultimately lead to market
irrelevance.
Copyright 2016. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, distributed, or reproduced without express written permission.
Building Strategic Innovation Capability
Lesson No. 4
Innovation risk can be mitigated by building a
balanced innovation portfolio.
Building Strategic Innovation Capability
Core Differentiator
(Sets Company Apart;: Builds Unique Class Reputation; Builds Attitudinal Loyalty)
Sustaining(Existing Value-
Creation Models)
Reframing(New Value-Creation
Models)
Contributor(Maintains Position
But Does Not Distinguish the Organisation)
Unique Class
Best-In- Class
Parity
Size of Circle:Total resources
committed to each innovation initiative
The Innovation Portfolio as the Driver of Organisational Success
Strategic Impact(Perceived Uniqueness)
Strategic Relatedness(Perceived Relevance)
products/servicessupport programscustomer experience initiativesreputation initiativesbusiness models
Copyright 2016. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, distributed, or reproduced without express written permission.
Building Strategic Innovation Capability
Lesson No. 5
The innovation portfolio drives customer loyalty, market leadership and
economic returns.
Building Strategic Innovation Capability
Why innovate? What are we optimizing to? Internal efficiency or market effectiveness? How does this choice impact the innovation strategy?What are the drivers of the enterprise's ultimate success: - growth, profitability, leadership reputation, human capital attraction? How does innovation impact these drivers? Where should management attention be focused to get ahead of the performance curve? How do we find the next growth curve? What new business models will unleash our next wave of growth and profitability? How does innovation impact customer loyalty? What type of innovation portfolio is required to build true customer franchise? How does this loyalty translate into tangible benefit to the organization?Should innovation be just another function in the business, or should it be embedded as the core of the operating model?
Linking Innovation to Business Performance
How will our investments into innovation drive
growth, profitability and leadership reputation?
How do we link innovation to tangible business outcomes?
The Strategic Innovation Capability Model
Copyright 2016. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, distributed, or reproduced without express written permission.
Linking Innovation to Business Performance
Result
Level 1 Lead
Indicator
Level 2 Lead
Indicator
Level 3 Lead
Indicator
Level 4 Lead
Indicator
Superior Perceived Customer Value
"FunctionalQuality" Offerings(How Is It Delivered?)
"TechnicalQuality" Offerings
(What is Offered?)
Internal Culture, Competencies, Operating
Model, Organization Design, Measurement & Rewards
Customer Loyalty & Advocay
Firm's Internal Value Delivery System
(Capability Portfolio)
Customer Outcomes & Experience
(Opportunity Portfolio)
Customer Commitment(Franchise)
Organisational Success
Leadership Reputation, Growth, Economic Viability,
Human Capital
Firm's Offerings & Solutions
(Innovation Portfolio)
Linking Innovation to Business Performance
Lagged Business Result
Level 1 Lead
Indicator
Level 2 Lead
Indicator
Level 3 Lead
Indicator
Level 4 Lead
Indicator
Superior Perceived Customer Value
Culture, Structure, Operating Model, Competencies, Msmt
& Rewards, etc.
Customer Loyalty &/or Market Share
Internal Value Delivery System
(Capability Portfolio)
Customer Success
(Opportunity Portfolio)
Customer Commitment(Franchise)
Organisational Success
Firm's Offerings & Solutions(Innovation Portfolio)
Leadership Reputation, Growth, Profitability
Mkt Share: R2 = .09
Cust. Loyalty: R2 = .64 to .84
Profitability Correlations
"TechnicalQuality" Offerings(What is Delivered?)
"FunctionalQuality" Offerings(How Is It Delivered?)
CV = RB/RP
Outcomes + Experience
Pain Removed + "Gain" Created
ProductsSupportRel. MgmtBrand/ImageBusiness Model
Building Strategic Innovation Capability
Copyright 2016. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, distributed, or reproduced without express written permission.
Linking Innovation to Business Performance
Result
Level 2 Lead
Indicator
Level 3 Lead
Indicator
Level 4 Lead
Indicator
Firm's Internal Value Delivery System
(Capability Portfolio)
Customer Outcomes & Experience
(Opportunity Portfolio)
Organisational Success
Leadership Reputation, Growth, Economic Viability,
Human Capital
Firm's Offerings & Solutions
(Innovation Portfolio)
Level 1 Lead
Indicator
Customer Loyalty & Advocay
Customer Commitment(Franchise)
Superior Perceived Customer Value
"FunctionalQuality" Offerings(How Is It Delivered?)
"TechnicalQuality" Offerings
(What is Offered?)
Internal Culture, Competencies, Operating
Model, Organization Design, Measurement & Rewards
Building Strategic Innovation Capability
Supporter
AdvocatePartner
Customer
Client
Attitudinal Loyalty
Behavioral Loyalty
On-
goin
g Rel
atio
nshi
pSc
ope
of
Rela
tion
ship
Will
ing
to F
und
or
Pay
Prem
ium
Yes
Yes
Broad
Narr- ow
Strong Positive,
Emotively Active
Negative, Nuetral, or Mild Positive
Yes
No
No
Yes
Yes
No
Attitudinal Vs Behavioral Loyalty
Incr
easin
g Co
mm
itmen
t
Att
itud
eTo
war
ds P
rovi
der
Con
side
rs/D
esires
Oth
er S
ourc
es
Proa
ctiv
ely
Supp
orts
Pro
vide
r
Understanding Customer Commitment
Copyright 2016. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, distributed, or reproduced without express written permission.
Building Strategic Innovation Capability
Driving Customer Commitment- Why Bother? -
Supporter
AdvocatePartner
Prospect
Customer
Client
Reinartz & Kumar (HBR, July 2002)
High-tech B2B customers high on attitudinal loyalty are:
44% more likely toengage in active WOM;26% more likely to engage in passive WOM;50% more profitable;
than customers high on behavioral loyalty alone
The Empirical Evidence
Building Strategic Innovation Capability
Driving Customer Commitment- Why Bother? -
Supporter
AdvocatePartner
Prospect
Customer
Client
Reinartz & Kumar (HBR, July 2002)
The Empirical Evidence
B2C customers high on attitudinal loyalty are:
54% more likely to engage in active WOM;33% more likely to engage in passive WOM;120% more profitable;
than customers high on behavioral loyalty alone
Copyright 2016. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, distributed, or reproduced without express written permission.
Building Strategic Innovation Capability
Core Differentiator
(Sets Company Apart;: Builds Unique
Class Reputation; Builds Attitudinal
Loyalty)
Sustaining(Existing Value-
Creation Models)
Reframing(New Value-Creation
Models)
Contributor(Maintains Position
But Does Not Distinguish the Organisation)
Unique Class
Best-In- Class
Parity
Size of Circle:Total resources
committed to each innovation initiative
So What is the Right Portfolio to Drive Attitudinal Loyalty?
Strategic Impact(Perceived Uniqueness)
Strategic Relatedness(Perceived Relevance)
Building Strategic Innovation Capability
Differentiating(Sets Organization
Apart: Builds Unique Class Reputation, Builds Attitudinal
Loyalty)
Sustaining(Existing Value-
Creation Models)
Reframing(New Value-
Creation Models)
Parity
Best-In-Class
Unique Class
Contributing(Maintains Position
But Does Not Distinguish the Organization)
Customer Franchise
Behavioral Loyalty
The Innovation Portfolio as the Driver of Organisational Success
Strategic Relatedness(Perceived Relevance)
Strategic Impact(Perceived Uniqueness)
Copyright 2016. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, distributed, or reproduced without express written permission.
Building Strategic Innovation Capability
A Poorly Balanced Portfolio- What causes it to be out of balance? -
Building Strategic Innovation Capability
The Innovation Portfolio as the Driver of Organisational Success
Sustaining(Existing Value- Creation Model)
Reframing(New Value-
Creation Model)
Parity
Best-In- Class
Unique ClassHardware
iTunes,AppStoreRetail
Experience
Brand
Differentiating
Contributing
Strategic Relatedness
Strategic Impact
An Example
Copyright 2016. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, distributed, or reproduced without express written permission.
Building Strategic Innovation Capability
The Innovation Portfolio as the Driver of Organisational Success
Customer Franchise
Strategic Relatedness
Differentiating
Sustaining(Existing Value-
Creation Models)
Reframing(New Value-Creation
Models)
Strategic Impact
Parity
Best-In-Class
Unique Class
Contributing
Differentiation Advantage
Pionee
ring A
dva
nta
ge
Building Strategic Innovation Capability
The Innovation Portfolio:The Key Driver of Market Performance
Top 5 "Fortune 500"Annual Returns to Shareholders, 2004-2014
Strategic Relatedness
Core Differentiator
(Sets Company Apart: Builds Unique Class Reputation; Builds Attitudinal Loyalty)
Sustaining(Existing Value-
Creation Models)
Reframing(New Value-Creation
Models)
Contributor(Maintains Position
But Does Not Distinguish the Organisation)
Strategic Impact Unique Class
Best-In- Class
Parity
#1 Priceline#2 Netflix#3 Apple#4 Celgene#5 Salesforce.com
Copyright 2016. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, distributed, or reproduced without express written permission.
Building Strategic Innovation Capability
Lesson No. 6
Building a balanced innovation portfolio requires
the ability to manage two parallel but radically different
innovation cultures and governance models.
Building Strategic Innovation Capability
...to be continued in San Francisco
Thank You
Copyright 2016. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, distributed, or reproduced without express written permission.