Innovation Activities Research Activities Development Activities ProductService Development

Innovation • Activities – Research Activities – Development Activities – Product/Service Development Activities – Administrative Capabilities – Tinkering/Experimenting • Are they usable? • Who needs them? • Innovation for whom or what? – Incremental – Radical • Results – Inventions – Innovations Robert Moussetis

Innovation • Sensing the Urgency to Innovate – Urgency – Impact • Challenges of Finding New Markets for New Technologies – Where do we sell our new products? • Resources and Innovation – Managerial Capability – Financial Commitment – Cultivating the Innovation bug • How and Why Innovation must remain connected with Strategy Robert Moussetis

History of a Strategic Change + NET CASH FLOW + - LIFETIME ROI = + AREA - AREA Ansoff and Mc. Donnell, 1990 Created by Robert Moussetis, 2000

Innovation is Change • Departure from – An established Practice – A method to do things – An approach to solve problems – Established Convictions – Existing products – Existing Services • Arrival at – Uncharted territory – New Methods – New Parameters – New Boundaries – New Services and Products – New beliefs Is the departure sudden or was it planned? Robert Moussetis

Change • Basic System Function • Change is Adaptation to – Environment – Culture -Society – Economies-Politics • Change could be Input x Adaptation Process – Fast, rendering stakeholders incapable of adapting – Slow, rendering stakeholders time to adapt – Complex - Novel – Unpredictable Organizational Boundaries Output y y=f(x) Robert Moussetis

Paradigm • What is a Paradigm? • Why do we use paradigms? • What is a Paradigmic Shift? • What is a Paradigmic Effect? • What is a Paradigmic Filter? • • • Death in the Drawer Paralysis by Analysis Explore the Boundaries Change before you have to Lead, do not manage Control your destiny or someone else will Robert Moussetis

Paradigm Incremental Shift New Paradigm Accepted Paradigm How do we get here? cal i d Ra t f Shi Radical New Paradigm al t n e em digm r c In ara P Robert Moussetis

Change • Incremental Change – Incubation Period Rate of change » Religion Complexity of Change » History Predictability of Change Novelty of Change » Technology • Discontinuous Change – Surprises - Sudden Shifts -Unforeseen Events » Religion » History » Technology Is Change Constant? Robert Moussetis

Paradigm Incremental Shift New Paradigm Accepted Paradigm How do we get here? cal i d Ra t f Shi Radical New Paradigm al t n e em digm r c In ara P Robert Moussetis

Environment • Complexity of Firm’s Environment – Repetitive to Surprising • Relative Novelty of the Successive Challenges – Familiar to Discontinuous and Novel • Rate of change – Slower to faster than capability to respond • Visibility of upcoming changes – Recurring to Unpredictable Robert Moussetis

Organizational Change • Behavioral Orientation of Organization – – – Does the leadership like stability? Does the leadership avoid change? Does the leadership like to react to change? Does the leadership anticipates changes? Does the leadership engages in changes before they have to? Does the leadership creates/dictates the rules of change? • Strategic Behavior - Strategic Aggressiveness – stable-reactive-Anticipatory-Entrepreneurial-Creative Robert Moussetis

Organizational Change – Environment brings change And forces organizational change – Organizations are composed of people with: • Different Behaviors and Capabilities • Different Cultures, Mentality and Systems • Different Perceptions about: – change-leadership-risk propensity-power structure – problem solving-attitude towards change– time perspective-action perspective-change triggers Contingency Change Appropriate to the Organization Is Change Constant? Robert Moussetis

Evolution of Challenges • Mass Production Era • Mass Marketing Era • Post Industrial Era – Age of Discontinuity – Technological Shift – Societal Shift • Acceleration of Change • Dimension of Challenges – – Product-Markets Geography Internal Environment Socio-Political Environment

Evolution of Management Systems • Management by • Predictability – Familiar (1900 -1930) Control – Extrapolable (1930 -1955) • Management by – Familiar Discontinuity (1955 -1980) Extrapolation – Novel Discontinuity ( 1980 -today) • Management by • Long Range Planning: Future expected Anticipation to be predictable through extrapolation of the Historical Growth • Management through flexible/rapid response • Strategic Planning: Future is Not necessarily expected to be an improvement of the past

Evolution of Challenges • Mass Production Era • Mass Marketing Era • Post Industrial Era – Age of Discontinuity – Technological Shift – Societal Shift • Acceleration of Change • Dimension of Challenges – – Product-Markets Geography Internal Environment Socio-Political Environment

Evolution of Management Systems • Management by Control • Management by Extrapolation • Management by Anticipation • Management • through flexible/rapid response • Predictability – – Familiar (1900 -1930) Extrapolable (1930 -1955) Familiar Discontinuity (1955 -1980) Novel Discontinuity ( 1980 -today) • Long Range Planning: Future expected to be predictable through extrapolation of the Historical Growth • Strategic Planning: Future is Not necessarily expected to be an improvement of the past

Evolution of Management Systems • Strategic Planning – Analysis of Firm’s Prospects – Competitive Analysis – Strategic Portfolio Analysis • Closes the Competitive Gap • Strategic Posture Management St Environment rat W egi or c k – Diversification Analysis • Long Range Planning – Action Programs, Budgets, and Implementation • Strategic Planning – Balances Prospects against Objectives to produce a strategy Strategy Capability E 1 S 1 C 1 E 2 S 2 C 2 Environment Strategy Capability is introduced into Strategic Management Mentality-Culture-Power Structure Systems-Organizational Structure Capacity

Evolution of Management Systems • Strategic Issue Management • • • – Impact (High/Low) – Urgency (High/Moderate/Low) Low Urgency = Monitor Moderate Urgency = Periodic Planning High Urgency = Issue Management • Weak Signals and Graduated response • Strategic Surprise Management • Choosing a Management System • Management of Complexity

Evolution of Management Systems • Strategic Issue Management • • • – Impact (High/Low) – Urgency (High/Moderate/Low) Low Urgency = Monitor Moderate Urgency = Periodic Planning High Urgency = Issue Management • Weak Signals and Graduated response • Strategic Surprise Management • Choosing a Management System • Management of Complexity