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Lockheed: Developing an Ecosystem to Innovate

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This presentation provides an overview of how the Purdue Agile strategy Lab developed an innovation ecosystem for Lockheed to solve a particular complex challenge.

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Lockheed: Developing an Ecosystem to Innovate

  1. 1. Developing an Ecosystem to Innovate: Lockheed Ed Morrison Scott Hutcheson Liz Nilsen Purdue Agile Strategy Lab
  2. 2. Launch Scale Optimize Transform Exit Experiment Strategy is dynamic…the demands of strategy shift as the business context changes
  3. 3. Agility enables companies to jump S-Curves… But how does company become agile? Source: Accenture Performance Time
  4. 4. Companies also face adaptive challenges… Complex messes with no clear technical fix
  5. 5. Example: the Navy asked Lockheed to develop a roadmap for deploying predictive maintenance across the destroyer fleet
  6. 6. Problem: Lockheed’s Surface Naval Innovation Center did not have access to all the technologies needed to address the challenge…
  7. 7. We proposed the idea of a platform on which Lockheed could form fast collaborations with outside companies to solve the problem Organization A Organization B Organization C
  8. 8. Dec Jan Feb Mar Apr May Jun Design sessions Workshop We used this drawing to explain to Lockheed executives how a strategy process would unfold
  9. 9. We delivered on our “open innovation” promise by using Strategic Doing to build trust among 20+ companies working on the roadmap Ten Skills of Collaboration Strategic Doing Cycle Ten Rules of Strategic Doing
  10. 10. Interested Community Community of Practice Innovating Network Innovate Together Learn Together Advocate Together Trust level Time The challenge of open innovation involves building trust at scale quickly among companies that have never worked together in this way
  11. 11. Conversation shifts.-- Collaborations begin to form with conversations among companies that share a similar “competitive space”. Participants begin testing ideas about colabrotion. Network forms.-- As focused conversations continue, common interests emerge. These shared interests drive conversations to deeper detail. Connections among !rms become stronger. Strategic agenda emerges.-- Members of the emerging network begin to focus on strategic opportunities. These opportunities emerge as !rms “link and leverage” their assets. Anchor investments made.-- As the collaborations form, members develop a strategic agenda: a portfolio of investments to strengthen themselves through collaboration. Collaboration continues to invest, adapt and expand.-- Connections within the network become more dense and spontaneous. New shared investments build out the collaboration. Time Level of Network Development Conversation shifts Network forms Strategic agenda emerges Anchor investments made Networks continue to invest, adapt, expand 1 1 2 3 4 5 2 3 4 5 Strategic Doing accelerates the formation of trust at scale by moving companies through a rigorous process
  12. 12. Strategic Doing solved Lockheed’s challenge of identifying potential partners. We also provided a clear path for participants to follow.
  13. 13. To learn more about how a protocol of simple rules can make an organization more agile and open, visit us online: agilestrategylab.org Ed Morrison edmorrison@purdue.edu Purdue Agile Strategy Lab