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Built to Thrive:
        using Toyota to illustrate
innovation portfolio management



                                          Dr. Jay van Zyl
                                www.BuiltToThrive.com
                              www.SystemicLogic.com




         Radical Ideas | Practical Implementation
Radical Ideas | Practical Implementation
How Innovative is Toyota?

What can you learn from them?




                     Radical Ideas | Practical Implementation
Innovation Portfolio Assessment:
          Managing the balance between execution and innovation


                       Renew         DISRUPTIVE INNOVATION:                   RADICAL INNOVATION
                                     DISRUPT OFFERING                                                  TOYOTA
                                                                                                      METAPOLIS


                                                                                                        TOYOTA
                                                                                                        TSUSHO
                                                        TOYOTA
                                                     LOCALIZATION
                                                                                          TOYOTA NEW
                                                       STRATEGY
                                                                                            BUSINESS
                                                                                          ENTERPRISES
             OFFERINGS
                                     INCREMENTAL INNOVATION                   DISRUPTIVE INNOVATION:
                                                                              DISRUPT CAPABILITY


                                                                                             TOYOTA WORLD-
                                                                                                  WIDE
                                                                                               OPERATIONS


                                             TOYOTA WORLD-                   TOYOTA
                                                  WIDE                     PRODUCTION
                                               OPERATIONS                    SYSTEM
                     Enhance

                                   Enhance                                                                         Renew
                                                              ORGANIZATION CAPABILITIES
This is a qualitative depiction,
and should be used for
illustrative purposes only.                                                                        Radical Ideas | Practical Implementation
Innovation Portfolio Assessment:
                            Driving today's priorities for future success
                              Plan for the future for today's success

                       Renew         DISRUPTIVE INNOVATION:                    RADICAL INNOVATION
                                     DISRUPT OFFERING
                                                                                TOYOTA
                                                                             ROBOTICS AND
                                                                               MOBILITY                  TOYOTA
                                                                                                         TSUSHO
                                                                        TOYOTA
                                           TOYOTA                        SCION
                                         HYBRID CARS                                       TOYOTA NEW
                                                              TOYOTA                         BUSINESS
                                                               LEXUS                       ENTERPRISES
             OFFERINGS
                                     INCREMENTAL INNOVATION                    DISRUPTIVE INNOVATION:
                                                                   TOYOTA      DISRUPT CAPABILITY
                                                                 FINANCIAL
                                                                  SERVICES                   TOYOTA GLOBAL
                                                  TOYOTA                                      PRODUCTION
                                                 CAROLLA                                   NETWORK & MUTUAL
                                                                                                SUPPLY

                                             TOYOTA WORLD-                     TOYOTA
                                                  WIDE                       PRODUCTION
                                               OPERATIONS                      SYSTEM
                     Enhance

                                   Enhance                                                                         Renew
                                                               ORGANIZATION CAPABILITIES
This is a qualitative depiction,
and should be used for
illustrative purposes only.                                                                        Radical Ideas | Practical Implementation
DOMINANT IDEA
 CUSTOMER IMMERSION
  NETWORK PARADIGM
   CO-PRODUCTION
VENTURING FOR SUCCESS
 INNOVATORS DILEMMA
               Radical Ideas | Practical Implementation
The Dominant Idea




               Radical Ideas | Practical Implementation
The Dominant Idea: Innovate
offerings and not just products
          and services
      Centered on the theme "Innovation into the Future," the
      Toyota Global Vision 2010 proposes the corporate image
      for which all of Toyota should strive and the paradigm
      change Toyota should undergo.




                                            Radical Ideas | Practical Implementation
Radical Ideas | Practical Implementation
Customer Immersion:
A Globalized View on Customer
        Understanding




                      Radical Ideas | Practical Implementation
Key Corporate Strategy Feedback:
Collecting wisdom to drive competitive edge




                               Radical Ideas | Practical Implementation
Key Corporate Strategy Feedback:
Beyond the value chain, towards value networks




                                Radical Ideas | Practical Implementation
Key Corporate Strategy Feedback:
Market-making through localization




                          Radical Ideas | Practical Implementation
Manufacturing: World-Wide Operations:
Capturing the essence of local capabilities




                                Radical Ideas | Practical Implementation
Design, Research & Development:
Integrated perspective on delivering value




                               Radical Ideas | Practical Implementation
Rethinking Localization




        Getting closer to customers

                          Radical Ideas | Practical Implementation
Rethinking Localization
            Getting closer to customers




                       Radical Ideas | Practical Implementation
Building a Brand in Banking:
     Customers for Life




                     Radical Ideas | Practical Implementation
Social Connections: Considering Future Car-based
           Lifestyles with Customers
    Test driving, purchasing with virtual currency, and driving virtual cars based on production models.
    Test driving, purchasing with virtual currency, and driving future cars and other vehicles that it would be difficult
     to experience in the real world.
    Plant and worksite tours at the virtual Toyota Motor Corporation.
    Learning about motor vehicles and Toyota's history in a virtual museum.
    Learning about technologies and products through a variety of games.
    Interacting with other users and with TMC through various events and services.




                                                                                         Radical Ideas | Practical Implementation
Towards an
Integrated Network Paradigm




                    Radical Ideas | Practical Implementation
Toyota’s Next-Generation Telematics Service




                              Radical Ideas | Practical Implementation
Networked Society




               Radical Ideas | Practical Implementation
Radical Ideas | Practical Implementation
Radical Ideas | Practical Implementation
Technology R&D
Achieving   further advances in ITS will require the merging of a
wide range of technologies that go beyond the conventional
approach to building cars, such as detection technologies,
telecommunication technologies, and information-processing
technologies.
Toyota is leading the way to the commercialization and widespread
implementation of ITS by actively participating in research and
development and verification test projects in cooperation with
governmental agencies, the private sector, and academic institutions.
Individual companies within the Toyota Group are also participating
in efforts in their respective areas of expertise, and are working
together to further advance the various control technologies and
telecommunication technologies that have been researched and
developed in the course of designing and building cars.


                                                  Radical Ideas | Practical Implementation
Radical Ideas | Practical Implementation
The Scion Story:

Using Co-Production to move
  Towards Crowdsourcing




                     Radical Ideas | Practical Implementation
Radical Ideas | Practical Implementation
Radical Ideas | Practical Implementation
Radical Ideas | Practical Implementation
Radical Ideas | Practical Implementation
Towards the Future




                Radical Ideas | Practical Implementation
Some Key Innovations




                   Radical Ideas | Practical Implementation
Rethinking Mobility:
Experimenting to Achieve Future Success




                             Radical Ideas | Practical Implementation
Radical Ideas | Practical Implementation
Venturing for Success




                 Radical Ideas | Practical Implementation
The Origin and Development of New
       Business Enterprises




                         Radical Ideas | Practical Implementation
Venturing for Success




                 Radical Ideas | Practical Implementation
Radical Ideas | Practical Implementation
Aero Asahi Corporation: creating your tomorrow through
     the fusion of aviation and spatial information




                                      Radical Ideas | Practical Implementation
Good Life Design Co. Ltd




                  Radical Ideas | Practical Implementation
Toyota activity in Biotechnology




                       Radical Ideas | Practical Implementation
The Innovators Dilemma




                 Radical Ideas | Practical Implementation
Externalize Research




                 Radical Ideas | Practical Implementation
“The New Corporation's Philosophical System
comprising four levels and opens up the new times”
 Basic philosophy - "Corporate Philosophy"
        Living and prospering together with people, society, and the
         globe, we aim to be a value-generating corporation that
         contributes to creation of a prosperous society.
 "Behavioral Guidelines” - As a good corporate citizen, we will:
        implement open and fair corporate activities
        fulfill our social responsibilities, and conserve the global
         environment.
        offer creativity, and provide added value
        respect people, and create an active workplace worth working
         in.




                                                 Radical Ideas | Practical Implementation
Creating new companies for a new future
Vision - "VISION2015 -LEAD THE NEXT-"
      Strategic Intentions
      Becoming a "value generating corporation," the new Toyota
       Tsusho aims to make a further leap by creating next-generation
       businesses in 6 business domains = 6 business divisions.




              “LEAD THE NEXT”

                                                  Radical Ideas | Practical Implementation
Radical Ideas | Practical Implementation
Expansive Thinking




               Radical Ideas | Practical Implementation
DOMINANT IDEA
 CUSTOMER IMMERSION
  NETWORK PARADIGM
   CO-PRODUCTION
VENTURING FOR SUCCESS
 INNOVATORS DILEMMA
               Radical Ideas | Practical Implementation

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Built to Thrive: using Toyota to illustrate innovation portfolio management

  • 1. Built to Thrive: using Toyota to illustrate innovation portfolio management Dr. Jay van Zyl www.BuiltToThrive.com www.SystemicLogic.com Radical Ideas | Practical Implementation
  • 2. Radical Ideas | Practical Implementation
  • 3. How Innovative is Toyota? What can you learn from them? Radical Ideas | Practical Implementation
  • 4. Innovation Portfolio Assessment: Managing the balance between execution and innovation Renew DISRUPTIVE INNOVATION: RADICAL INNOVATION DISRUPT OFFERING TOYOTA METAPOLIS TOYOTA TSUSHO TOYOTA LOCALIZATION TOYOTA NEW STRATEGY BUSINESS ENTERPRISES OFFERINGS INCREMENTAL INNOVATION DISRUPTIVE INNOVATION: DISRUPT CAPABILITY TOYOTA WORLD- WIDE OPERATIONS TOYOTA WORLD- TOYOTA WIDE PRODUCTION OPERATIONS SYSTEM Enhance Enhance Renew ORGANIZATION CAPABILITIES This is a qualitative depiction, and should be used for illustrative purposes only. Radical Ideas | Practical Implementation
  • 5. Innovation Portfolio Assessment: Driving today's priorities for future success Plan for the future for today's success Renew DISRUPTIVE INNOVATION: RADICAL INNOVATION DISRUPT OFFERING TOYOTA ROBOTICS AND MOBILITY TOYOTA TSUSHO TOYOTA TOYOTA SCION HYBRID CARS TOYOTA NEW TOYOTA BUSINESS LEXUS ENTERPRISES OFFERINGS INCREMENTAL INNOVATION DISRUPTIVE INNOVATION: TOYOTA DISRUPT CAPABILITY FINANCIAL SERVICES TOYOTA GLOBAL TOYOTA PRODUCTION CAROLLA NETWORK & MUTUAL SUPPLY TOYOTA WORLD- TOYOTA WIDE PRODUCTION OPERATIONS SYSTEM Enhance Enhance Renew ORGANIZATION CAPABILITIES This is a qualitative depiction, and should be used for illustrative purposes only. Radical Ideas | Practical Implementation
  • 6. DOMINANT IDEA CUSTOMER IMMERSION NETWORK PARADIGM CO-PRODUCTION VENTURING FOR SUCCESS INNOVATORS DILEMMA Radical Ideas | Practical Implementation
  • 7. The Dominant Idea Radical Ideas | Practical Implementation
  • 8. The Dominant Idea: Innovate offerings and not just products and services Centered on the theme "Innovation into the Future," the Toyota Global Vision 2010 proposes the corporate image for which all of Toyota should strive and the paradigm change Toyota should undergo. Radical Ideas | Practical Implementation
  • 9. Radical Ideas | Practical Implementation
  • 10. Customer Immersion: A Globalized View on Customer Understanding Radical Ideas | Practical Implementation
  • 11. Key Corporate Strategy Feedback: Collecting wisdom to drive competitive edge Radical Ideas | Practical Implementation
  • 12. Key Corporate Strategy Feedback: Beyond the value chain, towards value networks Radical Ideas | Practical Implementation
  • 13. Key Corporate Strategy Feedback: Market-making through localization Radical Ideas | Practical Implementation
  • 14. Manufacturing: World-Wide Operations: Capturing the essence of local capabilities Radical Ideas | Practical Implementation
  • 15. Design, Research & Development: Integrated perspective on delivering value Radical Ideas | Practical Implementation
  • 16. Rethinking Localization Getting closer to customers Radical Ideas | Practical Implementation
  • 17. Rethinking Localization Getting closer to customers Radical Ideas | Practical Implementation
  • 18. Building a Brand in Banking: Customers for Life Radical Ideas | Practical Implementation
  • 19. Social Connections: Considering Future Car-based Lifestyles with Customers  Test driving, purchasing with virtual currency, and driving virtual cars based on production models.  Test driving, purchasing with virtual currency, and driving future cars and other vehicles that it would be difficult to experience in the real world.  Plant and worksite tours at the virtual Toyota Motor Corporation.  Learning about motor vehicles and Toyota's history in a virtual museum.  Learning about technologies and products through a variety of games.  Interacting with other users and with TMC through various events and services. Radical Ideas | Practical Implementation
  • 20. Towards an Integrated Network Paradigm Radical Ideas | Practical Implementation
  • 21. Toyota’s Next-Generation Telematics Service Radical Ideas | Practical Implementation
  • 22. Networked Society Radical Ideas | Practical Implementation
  • 23. Radical Ideas | Practical Implementation
  • 24. Radical Ideas | Practical Implementation
  • 25. Technology R&D Achieving further advances in ITS will require the merging of a wide range of technologies that go beyond the conventional approach to building cars, such as detection technologies, telecommunication technologies, and information-processing technologies. Toyota is leading the way to the commercialization and widespread implementation of ITS by actively participating in research and development and verification test projects in cooperation with governmental agencies, the private sector, and academic institutions. Individual companies within the Toyota Group are also participating in efforts in their respective areas of expertise, and are working together to further advance the various control technologies and telecommunication technologies that have been researched and developed in the course of designing and building cars. Radical Ideas | Practical Implementation
  • 26. Radical Ideas | Practical Implementation
  • 27. The Scion Story: Using Co-Production to move Towards Crowdsourcing Radical Ideas | Practical Implementation
  • 28. Radical Ideas | Practical Implementation
  • 29. Radical Ideas | Practical Implementation
  • 30. Radical Ideas | Practical Implementation
  • 31. Radical Ideas | Practical Implementation
  • 32. Towards the Future Radical Ideas | Practical Implementation
  • 33. Some Key Innovations Radical Ideas | Practical Implementation
  • 34. Rethinking Mobility: Experimenting to Achieve Future Success Radical Ideas | Practical Implementation
  • 35. Radical Ideas | Practical Implementation
  • 36. Venturing for Success Radical Ideas | Practical Implementation
  • 37. The Origin and Development of New Business Enterprises Radical Ideas | Practical Implementation
  • 38. Venturing for Success Radical Ideas | Practical Implementation
  • 39. Radical Ideas | Practical Implementation
  • 40. Aero Asahi Corporation: creating your tomorrow through the fusion of aviation and spatial information Radical Ideas | Practical Implementation
  • 41. Good Life Design Co. Ltd Radical Ideas | Practical Implementation
  • 42. Toyota activity in Biotechnology Radical Ideas | Practical Implementation
  • 43. The Innovators Dilemma Radical Ideas | Practical Implementation
  • 44. Externalize Research Radical Ideas | Practical Implementation
  • 45. “The New Corporation's Philosophical System comprising four levels and opens up the new times” Basic philosophy - "Corporate Philosophy" Living and prospering together with people, society, and the globe, we aim to be a value-generating corporation that contributes to creation of a prosperous society. "Behavioral Guidelines” - As a good corporate citizen, we will:  implement open and fair corporate activities  fulfill our social responsibilities, and conserve the global environment.  offer creativity, and provide added value  respect people, and create an active workplace worth working in. Radical Ideas | Practical Implementation
  • 46. Creating new companies for a new future Vision - "VISION2015 -LEAD THE NEXT-"  Strategic Intentions  Becoming a "value generating corporation," the new Toyota Tsusho aims to make a further leap by creating next-generation businesses in 6 business domains = 6 business divisions. “LEAD THE NEXT” Radical Ideas | Practical Implementation
  • 47. Radical Ideas | Practical Implementation
  • 48. Expansive Thinking Radical Ideas | Practical Implementation
  • 49. DOMINANT IDEA CUSTOMER IMMERSION NETWORK PARADIGM CO-PRODUCTION VENTURING FOR SUCCESS INNOVATORS DILEMMA Radical Ideas | Practical Implementation