There are different Strategic Innovation methodologies, frameworks and models that aid organizations, particularly with technology driven, production companies. Most companies must innovate and continually improve to maintain a competitive advantage, but how they accomplish these process improvements differs significantly from Strategic Innovation. Traditional strategies rely on process improvements and product development through lessons learned, adoption of internal and external best practices, and improvements that are incremental and nature that are often found in Total Quality Management programs. Strategic Innovation requires a culture that can create breakthroughs within a company’s current market, and potentially enter a new market or segment. Strategic Innovation, and the implementation models that follow, are not for every organization, and a review of traditional strategies and risks associated with Strategic Innovation will be covered.

1. Strategic Innovation:
A New Strategy Model for the 21st Century
Pravin Asar
December 2 2013
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2. Strategic Innovation
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3. Why Strategy?
"The enterprise that does not innovate inevitably ages and declines… and in a period of
rapid change such as the present…the decline will be fast“ — Peter F. Drucker
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4. Strategic Innovation
"Innovation distinguishes between a leader and a follower" - Steve Jobs
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5. Why Innovation as Strategy ?
• Innovation is the single most important driver of
competitive success in many industries
• Many firms earn over one-third of sales on products
developed within last five years (e.g. Apple iPod,
iPhone, iPad, etc.)
• Globalization has increased competitive pressure
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6. Why Innovate?
• Product innovations help firms protect margins by offering new,
differentiated features
• Process innovations help make manufacturing more efficient
• Service innovation leads to higher customer satisfaction
“Innovation is the only way to stay ahead of the curve and change the world”
– Gary Hamel
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7. Importance of Innovation
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8. Traditional Approach
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9. Traditional Approach
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•
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Customer driven
Competition driven
Technology driven
Stakeholder driven
Project driven
Resource driven
Culture driven
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10. Serendipitous Strategy
SERENDIPITY
The effect by which one accidentally stumbles upon
something truly wonderful, especially while looking
for something entirely unrelated
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11. Serendipitous Strategy
• It’s part luck, part skill
• Incorporates a process to create and takes
advantage of serendipitous moments
• Sounds like planning for accidents, right?
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12. Serendipitous Strategy
• While this concept may seem counter
intuitive, but it actually makes a lot of
sense
• Integrate the best of both strategy
and chance into your plans
• Cannot plan for all of the unexpected
opportunities that may come your
way, but what you can do is analyze
the unplanned opportunities
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13. Patterns of Serendipitous Innovations
• These patterns can vary wildly:
– Discovery that was being sought, but found in an unexpected way
(e.g. Goodyear Tire)
– Discovery that was not sought (e.g. Velcro)
– Discovery is different than originally planned (e.g. Post-It)
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14. Serendipitous Strategy
Synchronicity
SERENDIPITY
Ordinary
Events
NOWHERE
“Our bravest and best lessons are not learned through success, but
through misadventure. ” — Amos Bronson Alcott
Stop
Think
Observe
Proceed
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15. From Concept to Product
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16. Innovation Strategies
• Globalization has increased competitive pressure
• Product innovations help firms protect margins by offering
new, differentiated features
• Process innovations help make manufacturing more efficient
• Service innovation leads to higher customer satisfaction
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17. Other Strategic Innovation Models
• All models focus on change
• Level of change varies
– Gradual Change
– Continuous Change
– Discontinuous Change
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18. Seven Dimension Framework
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19. Managed Innovation
• Core of the innovation process
• Creative Methodology and strategic thinking
• Sharing the vision of success with all
stakeholders
• Goal is to reach equilibrium between
– External Perspective
– Internal Capabilities
• IT Technology and collaboration are key factors
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20. Strategic Alignment
• Needs internal support and commitment
among key stakeholders
• Committed for strategic innovation
• Engage the organization around a unifying
vision and goals which align its strategies and
business models
• Industry Level Engagement is also important
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21. Industry Foresight
• A top-down perspective used to understand
– Complex forces that drive change
– Includes emerging and converging trends
– The latest technology
– Competitive dynamics
– Alternative scenarios
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22. Consumer/Customer Insight
• Bottom-up perspective used to understand
– Consumer
• Current Needs
• Unrecognized Needs
• Potential Needs
– Business sector
• Current market needs
• Potential market needs
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23. Core Technologies and Competencies
• Internal capabilities and competencies needed deliver
value to the customers
• Technologies, intellectual property, brand equity and
strategic relationships
+
=
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24. Quote on Core Competencies
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25. Organizational Readiness
• It is the determination and ability to:
– Implement new ideas and strategies
– Successfully manage and sustain those ideas
and strategies
• Three areas of readiness:
– Cultural
– Process
– Structural
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26. Disciplined Implementation
• The organization’s capability
to effectively sustain the life
cycle of innovation
• The sustainment is dependent
on the organization's ability
to repeat each step of the
innovation life cycle over and
over again
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27. Five Phase Life Cycle Model
• Five Phases of Innovation
– Generate
– Conceptualize
– Optimize
– Implement
– Capture
• Repeat as needed
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28. Strategic Implementation: Recipe for Success
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Recognize need for radical transformation
Create inspiration
Innovate with clear principles
Learn from initial innovation
Encourage emergent strategy
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29. Invent and Re-invent
"I have not failed. I've just found 10,000 ways that won't work.“ — Thomas
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30. Disruptive Strategic Innovation
• A specific type of strategic innovation
– Leads to a new way of doing the business
– Conflicts with the traditional way of doing business
• Examples:
– Internet
– Low-cost airlines
– Direct insurance
– Online brokerage trading
– Distribution of news
– Home delivery of grocery stores
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31. Characteristics of Disruptive Strategic Innovation
• Emphasis on different product or service attributes
– Traditional brokers sell services on the basis of research
and advice
– Online brokers sell on price and speed of execution
• Innovators become attractive to new segments
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32. Characteristics of Disruptive Strategic Innovation
• Start out as small and low-margin businesses
– Rarely gain support or long-term commitment from
established competitors
– The innovations are small and not attractive until they
grow
• Grow to capture a large share of the established market.
– Improvements are made over time
– They are able to deliver comparable performance
– Established competitors model the new attributes
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33. Applied Examples
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34. GE’s Six Part Growth Model
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35. Space-X
• Developed new engines and a new launch vehicle
• Resulting in NASA and commercial customers signing on to 40+
manifests
• Focused on Disruptive Strategic Innovation
• Developing the Grasshopper vertical takeoff and landing (VTVL) vehicle
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36. Technological Industry Examples
• Dell Inc. redesigned the company’s direct-sales model
• IBM changed its practice of independently selling
hardware and software to selling complete solutions
• Canon Inc. developed photocopiers for small offices
instead of large corporations
• Eastman Kodak pioneered IT operations outsourcing
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37. HANDS-ON EXPERIENCE
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38. NASA GOPDb – Innovation by Pravin Asar
• This is hands-on work done by a
team led by Pravin Asar, for
NASA’s Tri-programs (GSDO, SLS
and ORION).
• This game-changing revolutionary
technology has changed how the
large organization develop their
new product/program.
• Included here is a brief summary
Web Application Software for Ground Operations Planning Database (GOPDb)
Management
Monday, 10 June 2013
A Web application facilitates collaborative development of the ground operations planning document.
This will reduce costs and development time for new programs by incorporating the data governance,
access control, and revision tracking of the ground operations planning data.
Ground Operations Planning requires the creation and maintenance of detailed timelines and
documentation. The GOPDb Web application was created using state-of-the-art Web 2.0 technologies,
and was deployed as SaaS (Software as a Service), with an emphasis on data governance and security
needs. Application access is managed using two factor authentication, with data write permissions tied
to user roles and responsibilities. Multiple instances of the application can be deployed on a Web
server to meet the robust needs for multiple, future programs with minimal additional cost.
This innovation features high availability and scalability, with no additional software that needs to be
bought or installed. For data governance and security (data quality, management, business process
management, and risk management for data handling), the software uses NAMS. No local
copy/cloning of data is permitted. Data change log/tracking is addressed, as well as collaboration,
work flow, and process standardization. The software provides online documentation and detailed
Web-based help.
There are multiple ways that this software can be deployed on a Web server to meet ground
operations planning needs for future programs. The software could be used to support commercial
crew ground operations planning, as well as commercial payload/satellite ground operations planning.
The application source code and database schema are owned by NASA.
More details : http://www.techbriefs.com/component/content/article/16585
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39. KSC Ground Operations Planning Database (GOPD)
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40. KSC-GSDO Emphasis on Ground Operations Planning
• NASA HQ/ESMD objectives dictated that the GSDO development approach must
“significantly reduce the resources…required for exploration…over legacy systems”
– Lessons learned from Shuttle and ISS prescribe that program operations costs will be
unaffordable if lifecycle cost implications of decisions made during development are
ignored or poorly understood
– The gross majority of life cycle costs will be incurred in the operational phase of
Constellation systems
• To meet this objective, GSDO initiated processes to:
– Define and communicate the operations baseline
– Drive operability into vehicle and ground systems design
– Streamline processing infrastructure
– Provide in depth trades and analysis to inform decision makers
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41. GOPD Workflow Evolution (Document to Database)
Old - Ground Operations Planning Document
New - Ground Operations Planning Database
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42. GOPD: Integrated Planning Database
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43. Ground Operations Planning Database (GOPD)
Authoritative and Integrated Single Data Source
Metrics
(example: launch to
launch critical path)
Operational Timelines
Ground Ops Planning
Document
Process Visualization
Discrete Event Simulation
Custom Reports
(example: GSE allocation)
GOPD facilitates operations planning and
design analysis by providing a common,
authoritative data repository
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44. GOPD Potential Applications
Other potential applications for the
GOPD include planning activity for
complex assembly or manufacturing
process such as
– Commercial space users
– Automobile manufacturing
– Aircraft manufacturing or
overhaul planning
– Shipbuilding or overhaul planning
– Major construction efforts
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45. Risks in Strategic Innovation
Amos Bronson Alcott
One approach does NOT fit
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46. Risk Management Applied to Product Innovation
• Delve into product innovation until ready to
kick-off
• Use time effectively
– Portfolio Mapping
– Innovation Roadmaps
– Innovation Funnel
– Stage Gate Innovation
• Open innovation has emerged as viable
mitigation strategy
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47. Risk Management Applied to Service Innovation
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Innovate while providing service
Invest in new service infrastructure
Customers finance the development cost
Risks
– Higher service costs/reduced profit margins
– Contract penalties
– Uncertainty of outcomes/customer satisfaction
– Soiled reputation
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48. Risk in Service Innovation
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Phased/Pilot implementation may yield desired outcome
Avoid singular mindset
Open to suggestions
Critical elements:
– Entrepreneurial culture
– Incentives
– Knowledge management
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49. Risk Management in Service Innovation
• Prepare for Service Innovation
– Examine alignment of business model, infrastructure, operations
– Identify gaps
– Take actions (hire experts, separate business models)
• Master the learning challenge
– Collaborate with frontline stakeholders
– Knowledge dissipation/training
– Knowledge capture/feedback
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50. Risk Management in Service Innovation
• Customer collaboration
– Setup the stage/expectations
– Positive customer engagement
– Knowledge capture
• Learn from the knowledge
– Look at past and current initiatives and Key Performance Indicators
(KPIs)
– Adjust as needed
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51. Risk Management in Service Innovation
Service B
Service A
Service KPI
Service KPI
• Facts:
– Service Innovation happens in “real-world”
– Initial service delivery does not yield returns right away
– Benefits come from “hits-and-misses” analysis and corrective
measures
Service B
overlap
Service A
Time
Time
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52. Risk Management in Service Innovation
• Better results can be achieved by:
– Cross-functional decision making
– Organizational alignment
– Knowledge management
– Incentives and rewards
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53. Overview of Key Functions
(Concept Through Delivery)
Sponsorship
Strategy
Project/Portfolio Management
Creative Problem
Solving
Decision Making
Budget and Financial Management
Resource Management
Innovation Project & Portfolio Management
Creativity, R & D
Idea Evaluation,
Quality Assurance
Technology
Performance & Metrics
Continuous Improvement
and Maturity
Tools and Techniques
Governance
Oversight
Operations and Administration
Solution Delivery
Education &
Training
Rewards & Recognition
Model/Framework, methodology and approach Development
Solution/Process development & maintenance
Culture Development & maintenance
Competency and Training development
Toolbox/Technique development
Knowledge Base
Collaboration and communication facilitation
Practice and Capability management
Library/Repository
Knowledge Sharing/Management
Subject Matter/Process Experts, Consultants
Facilitators, Liaisons
Product Distributors, Service Dealer
Champions, Mentors
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54. The Ten C’s of Employee Engagement
1. Connect: Show that employees are valued
2. Clarity: Communicate a clear vision
3. Convey: Clarify expectations and provide feedback
4. Career: Provide challenging and meaningful work
5. Congratulate: Give recognition
6. Contribute: Help people see and feel how they are contributing
7. Control: Create opportunities for employees to exercise control
8. Collaborate: Be a team builder; create an environment that fosters trust
9. Credibility: Demonstrate high ethical standards
10.Confidence: Be an exemplar of high ethical and performance standards
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55. Conclusion
• Strategic innovation is the key to sustained innovation
• Strategic innovation framework is applicable to new
product as well as service development
• Technology is important, but key success factors are
leadership, management and employees
• Strategic Innovation is all about SMART goal setting
"Innovation has nothing to do with how many R&D dollars you have. When Apple came up
with the Mac, IBM was spending at least 100 times more on R&D. It's not about money. It's
about the people you have, how you're led, and how much you get it.“ — Steve Jobs
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