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Why Innovation Fails in Corporations (and what you can do about it)

9 common reasons innovation fails in big companies and how to avoid it happening to you. Looking for some help or guidance with your innovation? We're listening. Say hi: you@plusandersen.com

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Why Innovation Fails in Corporations (and what you can do about it)

  1. 1. INNOVATE OR DIE 9 REASONS INNOVATION FAILS
  2. 2. OLD PROBLEMS We feel threatened when we fear our power, ownership, position, prestige or compensation may change - The resistance to change is real. We get confused if our job descriptions and KPIs remain the same but receive no training on how to support it or instruction on how to participate in it, no incentives to change our behaviour, no real penalty for ignoring the change is given…

  3. 3. NEW SOLUTIONS Let’s take a look at 9 common reasons why innovation fail and what you can do about it…

  4. 4. 1. SHINY OBJECTS • Tech founder enamored with new tech, obsessed by “shiny object” • Abandoning core - Horizon 1 (H1) - business • Treating core business (H1) as “old guys who doesn't get it” • Company still dependent on H1 until new tech gets adopted (e.g. Apple, RIM) • Do not demoralise the current product team • Have a transition plan • Insure money, people and infrastructure are in place to cross the Tech transfer, to survive
 the “Valley of death” PROBLEM SOLUTION
  5. 5. 2. ONLY “NOW” • Leadership acting only on current mission, the “NOW” • Not investing for long term • CEO and management incentives all about current mission and goals • No incentives for CEO or management on innovation for Horizon 2 and Horizon 3 • You need need a corporate chief innovation officer who understands innovation • And you need a chief innovation officer in all of your divisions PROBLEM SOLUTION
  6. 6. 3. BUZZWORD BINGO • Innovation is being abused as a word to describe everything and 
 anything in the company • Use the horizons 1 2 3 metaphor to describe and position innovation • Understand that incubators & similar are just the innovation vehicles • Lean is the best methodology for accelerating learning • Lean Launchpad is the best program to implement it PROBLEM SOLUTION
  7. 7. 4. CAREER KILLER • Failed projects are avoided at all costs • Projects that are risky are avoided at all costs • “Projects are expensive, years of people and money invested!” • In lean organisations, failure is part of the process • Failure is acceptable because failures are required as learning process, achievable at very low cost and at very high speed • Pivoting from failure gives you more new learnings PROBLEM SOLUTION
  8. 8. 5. H1 CONFUSION • Daily operations (H1) loses sight that the goal is to move forward, not to reinvent what already works • Fundamental issues, confusion about the goal of innovation in horizon 1 (H1) • Use the horizons 1 2 3 metaphor to describe what kind of innovation you are talking about • You need a corporate chief innovation officer who understands innovation PROBLEM SOLUTION
  9. 9. 6. NO H3 INCENTIVES • No divisional incentives for Horizon 3 (Disruptive) innovations • No divisional or senior job level description for horizon 3 (H3) • No strategy or tactics for integration of H3 into operating dIvisions • Develop meaningful incentives for Horizon 3 innovation • Develop a written job description for H3 support • Develop strategy and tactics for integration of Horizon 3 into the rest of the organisation PROBLEM SOLUTION
  10. 10. 7. NO-GO TOP-BOTTOM • Top of organization says 
 “do it” (“GO!”) • Bottom of the organization (the innovators) are ready to “GO!” • Middle management kills it (“NO!”)actively, by sabotage or benign neglect • And thus innovation programs die • Prove that it can work • Then communicate, communicate, communicate: • Big idea, shared goal & mission • Strategy, big picture of how the 
 pieces work together • Tactical implementation • Update job specs to include innovation support • Change incentives to include innovation support • Give those who came before much appreciation • Support those who try and fail 
 and try again PROBLEM SOLUTION
  11. 11. 8. SALES DEPARTMENT • Sales says “no one can talk to our customers” • Legitimate concern of pitching new capabilities in place of the ones that exist • Believe they understand all user needs • Customer discovery is not about pitching new products • It’s about understanding user problems/needs and how they use current solutions • Impossible for a single individual to predict all of users needs now and the future PROBLEM SOLUTION
  12. 12. 9. ENGINEERING DEPT. • Engineering believes innovation is about technology • So they just talk to the subject matter expert • Talks to the same small group of users they've talked to for the past 5 years • They are not talking to the total available market so they miss solving the bigger problems • Focus the organisation on understanding customer problems • Focus on solving current or future problems PROBLEM SOLUTION
  13. 13. WE HELP 
 YOUR COMPANY 
 GET READY 
 FOR TOMORROW TODAY PLUSANDERSEN.COM
  14. 14. …BY PROVIDING ACTIONABLE ANSWERS FOR MEDIUM AND LARGE COMPANIES TO THE QUESTIONS OF HOW TO IDENTIFY AND RETAIN INNOVATIVE PEOPLE & HOW TO GENERATE, DISCOVER, EXPLORE, AND EXPLOIT INNOVATIVE IDEAS
  15. 15. MORE PLUSANDERSEN.COM • Education & Training • Programs & Processes • Innovation Metrics • Management Tools • Innovation Outposts • Human Assets SOME OF OUR CUSTOMERS: & OTHER ICONIC BRANDS UNDER NDA
  16. 16. PRE-ACCELERATION ACCELERATIONGENERATION EDUCATION SELECTION FINAL DECISION SCALING UP DEALFLOW LEARNING JOURNEY LEARNING KEYNOTE KILL YOUR COMPANY INNOVATOR MASTERCLASS INNOVATOR BOOTCAMP LEAN LAUNCHPAD MVP AS 
 A SERVICE INNOVATION OUTPOSTS DEMO DAY PITCHING MASTERCLASS EXPERTS AS A SERVICE MENTORS AS A SERVICE TRAIN THE TRAINER SPINNING OUT +ANDERSEN PROGRAMS AT ALL STAGES
  17. 17. +ANDERSEN 
 & ASSOCIATES INNOVATION & GROWTH THROUGH SCIENCE + ENTREPRENEURSHIP LEARN MORE
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