Innovation Structures |
Corporate Structure
Dominant core organizational entities are divisions, which are
aggregated into strategic business units.
Divisions are defined as units having a clear set of
customers and
competitors.
Divisional
Structures
Divisions have profit and loss responsibility. They may be (a) organized
as a stand-alone divisions that have effective control over every
function required to compete; or (b) focused on a subset of tasks, such
as development or
→
marketing.
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Organizing for
Innovation
In the new era of
→
Systemic Innovation,
innovation is not limited to new products and services. The
organization
structure itself is an integral part of the
innovation process. Leading firms are
constantly reorganizing to ensure that the organization conforms to the
innovation and other task requirements, rather
than the other way around.
Divisions can
take responsibility for the
entire innovation process
from
generating new ideas through to
prototyping
and
beta testing while reporting
in-market
successes and
profits.
Yet, divisions may also present some
dangers to
innovation. For instance, instead of
constructive competition, they can create
destructive internal competition that thwarts
cooperation and learning within the larger firm. To counterpart this
tendency, successful companies apply various strategies such as:
-
rewarding key executive on the company's
overall performance (Cisco Systems)
-
establishing councils that operate across
business units to force cooperation on key innovations, customers, or
markets (Cisco Systems)
-
using
cross-divisional councils as platform for defining new technologies and
defining business strategy
(Cirrus Logic).
Building Innovation Into Your Organization
Success depends on both
what you do and
how you do it. There are
specific elements
that help you and your company to be more innovative. It's a blend of
→
Culture ,
methodologies, infrastructure,
innovation structures, and work practices...
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Top Management Team Leading Innovation
CEO acts as a
→
Chief Inspiration Office. Each
member of the
→
Management Team has
responsibilities in functional areas but cross-functional
systemic innovation is also
supported...
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Climate for
Innovation
Management's task is to generate the right climate that encourages
experimentation,
creativity,
rule-breaking,
and individualism. Avoid rigid management that rules out experiment and
trial and error...
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Develop and Innovative Workforce
Everyone can be more
→
creative
and innovative if
inspired, trained and encouraged. Start with 'Why' ‒
→
inspire people,
engage,
energize and
empower everyone. Establish
a
culture of
questioning,
→
creative dissatisfaction
and
relentless growth ...
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Creating a Culture for Innovation
→
Corporate Culture is important for success.
The question is how culture can drive successful innovation, and
what corporate leaders can
do to
establish the
kind of culture that leads to
creative dissatisfaction with
the status quo and
truly innovative behavior...
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Effective Innovation Structures
Most organization use
multiple structural models to drive innovation efforts.
C-level
and leadership support
is a key
driver
of success
of an innovation function.
Cross-Functional Teams
Mapping the Innovation Road
In the new era of
→
Systemic Innovation, it is more
important for an organization to be cross-functionally excellent than
functionally excellent.
Cross-functional teams, either formal or informal, need to be
formed. These teams can also find new businesses in white spaces between
existing business units...
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10 Commandments of Innovation
Inspire your team.
Create
an
inspiring culture,
make business fun...
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Attitude of
Relentless Growth
Establishing an
→
attitude of relentless growth is what
enables an organization and its people to achieve their goals. The spirit of
relentless growth keeps fresh ideas flowing and reinvigorates your company...
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Energizing Employees
"What
energizes
people is
the broader horizon, the excitement of new challenges and big
opportunities. When their
leaders offer this excitement, people come alive."1
The one-on-one relationships that individual
workers have with their managers, and the
trust, respect, and
consideration that their managers show toward them on a daily basis are also
at the core of an energized workforce. "Getting the best out of workers is
above all a product of the "softer" side of management - how individuals are
treated,
inspired,
and challenged to do their best work - and the support, resources, and
guidance that is provided by managers to help make
exceptional employee performance a reality."2...
More
Inspirational Leader: 10 Roles
Balanced Organization: 5 Basic Elements
Wood (Corporate
Capabilities):
Teams
– the Heart of Innovation
In the new era of
systemic innovation, it is more
important for an organization to be cross-functionally excellent than
functionally excellent. Firms which are successful in realizing the full
returns from their technologies and innovations are able to match their
technological developments with complementary expertise in other areas of
their business, such as manufacturing, distribution, human resources,
marketing, and
customer relationships. To lead these expertise development
efforts,
cross-functional teams, either formal or informal, need to be formed.
These
teams can also find new businesses in white spaces between existing
business units.
Create an Innovation
Incubator...
The Challenge for Small
Enterprises...
The Seven Dimensions of
Strategic Innovation...
Systems Thinking...
Creative Leadership...
Case in Point Intel...
Case in Point
IDEO
and their Hot Studio System...
Case in Point
Google...
Case in Point
Innovarsity...
Case in Point
Ten3 iCorp...
Case in Point
Fun4Biz... |