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PlayBook360
TM

Sustained Innovation & Growth

competitive
advantage
3 AREAS TO APPLY TO DRIVE GROWTH

three common
principles
GLUE THAT BINDS PEOPLE IN COLLABORATION

innovative
mindset
THE UNEXPECTED MUST BE EXPECTED

1 © BTM Corporation www.btmcorporation.com

contents
What is Sustained Innovation? ......................................................................................................................... 3

Innovation for Competitive Advantage ................................................................................................ 5
Innovation is a broad topic, let’s first define three areas that may be applied to drive growth.

Reasearch In Motion, AIG & Pfizer ............................................................................................................... 6
How these companies have stayed competitive with sustained innovation.

3 Principles for Sustained Innovation .................................................................................................... 9
Enterprises with a strong focus on sustained innovation share there three common principles.

Why Innovation & Growth Initiatives Fail .................................................................................... 10
Six key reasons that cause innovation failures.

Blockbuster, Sony & Sun Microsystems .............................................................................................12
How these companies failed to sustain innovation.

Innovative Mindset ..............................................................................................................................................................15
The right mindset -- the unexpected must be expected.

7-Step Model for Sustained Innovation............................................................................................. 17
Modeled, documented and implemented as a total game-changing process.

Additional Reading List................................................................................................................................................18


WHAT IS

SUSTAINED
INNOVATION?
Discipline and innovation are not
opposites, but complements.

Innovation is widely regarded as the single most impor-
tant ingredient in today’s economy.

INNOVATION AS A DESTINATION ISN’T ENOUGH.

Sustained Innovation is a high-productivity state in
which an organization strives to innovate in all aspects of
its business, including management, divisions, operations,
customers, and suppliers.

Powered by people who come together to share ideas, com-
pare observations, and brainstorm solutions to complex problems.
Discipline and innovation are not opposites, but complements.

PRODUCT/SERVICES
Creating new products and services
for existing or new markets.

BUSINESS MODELS
Developing new ways of creating
value, including new economic models,
distribution channels, brand equity, and
INNOVATION FOR eco-systems.

COMPETITIVE
ADVANTAGE PROCESS & ORGANIZATION
Developing new ways of doing
Since, “Innovation” is a broad things, both internally (i.e. business
topic, let’s first define three process, organizational models, sourcing
areas where innovation may model, etc.) and externally (i.e. partner
be applied to drive growth. management, customer experience, etc).


RESEARCH IN MOTION ( RIM )
THE ONE-HIT WONDER

“A mere five years ago, Research In Motion (RIM) was one of
the most celebrated technology companies in the world, as the
BlackBerry, or “CrackBerry” as it became known.”

he smartphone market is red-hot with Apple A mere five years ago, Research In Motion (RIM)

T and Samsung engaged in the most fierce
race for dominance via product innovation.
But let’s not forget the once ubiquitous handheld
was one of the most celebrated technology compa-
nies in the world, as the BlackBerry, or “CrackBerry”
as it became known, led the smartphone market.
of choice for most employers and business people: But the meteoric rise of the iPhone and Android
the BlackBerry. devices has made RIM and its big innovation a
relic in a world of constant reinvention.


AMERICAN INT’L GROUP ( AIG )
RISING FROM FAILURE

“Government bailouts in 2008 & 2009, AIG has bounced back and
regained its status as a vital American multinational corporate
titan. AIG isn’t taking its rescue for granted.”
n 1919, Cornelius Vander Starr was the first The company went public in 1969 and continued

I Westerner to sell insurance to the Chinese, and
he did so successfully until Communism drove
him and AIG back to the U.S. in 1949. AIG quickly
to thrive until 2005, when it became the subject
of fraud investigations by the SEC, U.S. Justice
Department, and NY State Attorney General’s
grew it business globally, and in 1962 Starr gave Office. Thanks to government bailouts in 2008 &
management of the company’s slowing U.S. hold- 2009, AIG bounced back and regained its status as
ings to Maurice R. “Hank” Greenberg, who revital- a vital American multinational corporate titan. The
ized the company by moving from personal insur- insurer continues a rebranding overhaul aimed at
ance to high-margin corporate coverage. its continued growth and success.


PFIZER

ONGOING SUCCESS

“The company continues to lead the market with treatments
for myriad maladies.”

fizer, the world’s largest pharmaceutical The drug maker has augmented its research by

P company based on revenue, constantly
develops blockbuster medicines and vac-
cines with household names like Zithromax,
building its brands, pipeline, and profile through
a series of major acquisitions. The company con-
tinues to lead the market with treatments for
Lipitor, and Viagra. Founded in 1849 as a manu- myriad maladies. Recently, the U.S. Food and Drug
facturer of fine chemicals, Pfizer’s discovery of Administration approved Pfizer’s Bosulif, which
Terramycin a year later launched its successful treats a rare type of leukemia that usually affects
and ongoing expansion into a research-based older adults.
pharmaceutical company.


PRINCIPLES FOR

3 SUSTAINED INNOVATION
Enterprises with a strong focus on SUSTAINED
INNOVATION share three common principles that
act as the glue binding people together in
PRODUCTIVE COLLABORATION.

CONVERGED DISCIPLINES
Ideas aren’t isolated; they’re celebrated in groups that enable the entire organiza-
tion to act as one entity.

CROSS-BOUNDARY COLLABORATION
No enterprise operates in a vacuum. Every manager, employee, and contractor poten-
tially has a piece of the puzzle to create a new breakthrough business opportunity.

INNOVATIVE BUSINESS STRUCTURES
Not every organization can empower an unstructured development culture; most
require a structure that compels convergence of disciplines, management, and oper-
ational units.

6
KEY REASONS
FOR FAILED INITIATIVES

Innovation is a key compo-
nent of any enterprise, but
failure is an intrinsic, inevi-
table part of the process. Un-
fortunately, a large number
of products, merger and ac-
quisition deals, projects, and
startup ventures fail.

HERE ARE THE
TOP SIX REASONS BEHIND
INNOVATION FAILURES
Absence of a formal innovation No deployment of measurement
1 management framework and 4 criteria and metrics to track and
system monitor progress, status, value, etc.

No direct link tying initiatives Limited to no allocation of cross-
2 to company’s overall strategy 5 disciplinary resources necessary to
effectively manage projects
No creation of intelligence-driv-
3 en options and scenarios Buy-in from required stakeholders
6 not secured as needed so no own-
ership from cross-functional teams


BLOCKBUSTER

THE BLUNDER

“Failure to adapt fast enough as soon as Netflix and smaller
rivals started mailing videos and selling videos-on-demand
turned Blockbuster’s once ubiquitous storefronts into dinosaurs.”

ounded as a single store in Dallas in 1985, The chain had no choice but to shut hundreds of

F Blockbuster quickly became a household
name and withstood the historic transition
from VHS to DVD. But its failure to adapt fast
stores, work off debt and follow, instead of lead,
the evolving market. Following a failed bid by
South Korean telecommunications company SK
enough as soon as Netflix and smaller rivals Telecom, Dish Network stepped in with lofty turn-
started mailing videos and selling videos-on- around talk, but eventually ditched its doomed
demand turned Blockbuster’s once ubiquitous plans to transform Blockbuster into a worthy
storefronts into dinosaurs. Netflix adversary.


SONY

THE SLIDE

“Transformation into a colossal conglomerate with film and
music divisions led to a lag in leadership in many of its core
product lines.”

he original Walkman was marketed in sions led to a lag in leadership in many of its core
T Japan in 1979, and became a necessary
accessory in America during the ‘80s, when
it was as iconic as today’s Apple must-haves:
product lines.

As Sony and some rivals shifted from hard-
iPods, iPads and iPhones. Sony ruled the market ware to software, more nimble competitors like
for consumer electronics such as TVs, cameras LG, Samsung, Vizio, and Apple quickly outpaced
and video recorders, but its transformation into a Sony’s old-school and now obsolete innovations.
colossal conglomerate with film and music divi-

SUN MICROSYSTEM

THE MELTDOWN

“The dot-com blow-up blew away customers and changed the
way companies meet their technology needs.”

ounded in 1982, Sun Microsystems sizzled But the dot-com blow-up blew away custom-

F as a Silicon Valley sweetheart and thrived
with the creation of cutting edge computer
servers and workstations built on its proprietary
ers and changed the way companies meet their
technology needs. The proliferation of powerful
PCs purged demand for Sun’s pricy servers, and
RISC-based SPARC processor architecture and a the company was forced to downsize and sell to
suite of savvy software products. Sun’s Java pro- Oracle in January 2010 for a paltry $7.4 billion.
gramming language, introduced in the mid 1990s,
was an industry standard that propelled the com-
pany to market leader.


THE
INNOVATIVE
MINDSET

H How we go about building an innovative organization
b
should be unique. But for every organization, it starts with
the right mindset -- the unexpected must be expected.
ight

Who would have thought that sleek smartphones would replace bulky cameras and music
players? This mindset must start at the top of the organization and permeate every level.
The leader must set the example.

HERE’S WHAT PEOPLE MIGHT BE THINKING IN A

NON-INNOVATIVE
ENVIRONMENT:
The last big product launch failed, and several people
are no longer around.

We’re doing fine; let’s let our existing line peak before
we try something new.

Our company is too large to waste time on small ideas.

We want new ideas, but I’m paid to make my numbers
on existing business.

I can’t remember manufacturing and marketing ever
talking about anything.

People are going to get cynical about all these change
initiatives.

The last time I made a suggestion, I got my head hand-
ed to me on a platter.

MODEL FOR  Human nature is driven by wants
and/or needs.

SUSTAINED  We develop strategies to evolve tac-

INNOVATION tics to turn those wants and needs into
goals.

 With tactics in place, we can formu-
late a plan, or call to action to achieve the
goals.

 The plan, or call to action, involves
setting personal or business objectives
and determining the most appropriate
technologies with which to implement
them.

 When the business objectives are
combined successfully with the appro-
priate technologies, the result is conver-
gence, the seamless merging of both to
attain goals.

Sustained Innovation can be  Convergence makes it possible to
create a viable economic model applying
enabling technologies, essential in the
modeled, documented and process of satisfying the wants or needs.

implemented as a total game-changing  Transformation occurs when the
individual or enterprise has successfully
process. At a high-level, this process can be defined embarked upon on the new course to
according to these 7 steps. achieve its goals.

ADDITIONAL
HOW SUCCESSFUL
READING THE 7- STEP MODEL
COMPANIES SUSTAIN FOR CREATING
INNOVATION SUSTAINED ECONOMIC
What can we learn from those who did it once TRANSFORMATION
(RIM), those who failed and rebounded (AIG) and Transformation can be modeled, documented, and
those who make it habit (Pfizer). implemented as a total game-changing process.
Here’s how to get it started.
http://www.fastcompany.com/3002324/how-suc-
cessful-companies-sustain-innovation http://www.fastcompany.com/3003420/7-step-
model-creating-sustained-economic-transformation

WHY INNOVATION MAT TERS WHEN THE GOING GETS
IN POLITICS AND THE PUBLIC TOUGH, TOUGH COMPANIES
SECTOR INNOVATE
Innovation and technology drive everything from From Wendy’s premium rebranding to Home Depot’s
healthcare to education to election wins, but mis- how-to videos, clever companies figure out how to
management can pose threats to democracy, even find success amid adversity. Here’s how.
peoples’ lives.
http://www.fastcompany.com/3000596/when-
http://www.fastcompany.com/3003207/why-inno- going-gets-tough-tough-companies-innovate
vation-matters-politics-and-public-sector

WHY INNOVATION FAILS
In an age of unanswerable questions, asking the
right question might just be the answer.

http://www.fastcompany.com/3002768/why-inno-
vation-fails


INNOVATION READING
FC, HBR, BTMI
http://www.btminstitute.org/index.php/communities/by-impact/
sustained-innovation.html

http://www.fastcompany.com/tag/innovation

http://hbr.org/search/Innovation/

http://pubs.media.mit.edu/

WWW
http://knowledge.wharton.upenn.edu/category.cfm?cid=12


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