Carry over from session 6

The idea of STRATEGIC AGILITY

THE CAPABILITY TO PREVENT STAGNANTION OR PAINFUL (radical)TRANSITIONS
/CHANGE

and YET

MAINTAIN FLEXIBILITY

WITHOUT

COMPROMISING THE PROPENSITY TO MAKE COMMITMENTS TO BUILD STRATEGIC

ADVANTAGE

te d fl ex i bility
Modera
Carry over from session 6
Session 7: Strategic innovation/ Innovative Strategies
 Outline

 Strategy innovation
 A Typology
Drivers of strategic creativity
Closed Vs. Open Innovation
Design Competition and Institutionalising beyond boundaries
 Innov at i on

Lets talk about the nomenclature / typologies we come across !

 Strategy Innovation

Capacity to re-conceive the existing industry model in

ways that create new value for customers, wrong-foot
competitors, and produce new wealth for all stakeholders
 Strategy Innovation Questions:

 Does the company accept or challenge industry conditions?

Does management look at current or future assets and capabilities?
 Does the company focus on segmenting or revolutionizing markets?
 Does the company focus on improvement or total reconfiguration?
 Drivers of Creativity in Strategy

 Confrontation
 Collaboration
 Experimentation
 Infiltration
 Confrontation Competiti
on

w m a rket entry
Ne

te rn al a s well
In e conflict
tr u cti v
– cons
!

New strategies resulting from confrontation with

different practices, methods, cultures, and styles
 Collaboration
m a l JVs
For
n d A LRs
a

New strategies resulting from learning through contact

with other organisations, industries, and cultures
 Experimentation

n a l – R&D
Inter s coping
n a l
Exter

New strategies resulting from searching

for better practices, methods, and ideas
 Infiltration
ne rg istic i mp rove
Sy tio n to
ta
adap

New strategies blend old practices, methods, and

ideas with new practices, methods, and ideas
Source: Chesbrough, 2003
Source: Chesbrough, 2003
INSTITUTIONALISING …INNOVATION
beyond boundaries : Design Competitions
• Nomenclature, and prior work (2008 onwards)
Innovation contests, technology contests, innovation tournaments,
tournaments for ideas
• Legacy
Challenge innovators to submit prototypes for evaluation in non-market
settings
Economic modelling: To understand ‘invisible hand’ market
competition ‘from’ organised competition

(Lampel, Jha, Bhalla,2012)

 .......................design competitions becoming
so popular ‘now

•The Corporate R&D, government research agency - et al in the aftermath of the industrial
revolution and more so around the II WW: mindset of innovation to be protectively harnessed
in confines - first half of 20th century

•Increasing cohesion in entrepreneurial fields and communities of knowledge- small world

•Transformative impact of open innovation, crowd sourcing systems and internet platforms –
interactive times and big data

•Intent to configure ‘institutionalised mechanisms’ that have design premises and emergent
good practices – the aspiration to harness superior value through weaving together internal
processes and intents with the external innovation ecology.

(Lampel, Jha, Bhalla,2012)

relationship between design competitions and
the rise of open innovation. ……increased
importance that organizations have placed on
using external sources of innovation has
reinforced the perceived benefits of design
competitions and led to a shift away from a
winner-takeall view in favor of encouraging
collaboration alongside competition.

stated goals and the prizes

and recognition they offer
—and their unstated motivations
Longer term trajectories they shape towards
broader agendas.
(Lampel, Jha, Bhalla,2012)
Efficient Refrigerator Program (SERP)
(Holloman, Ledbetter, Sandahl, &
Shoemaker, 2002), a competition
sponsored by a consortium of United
States electric utilities that offered a prize
of up to US$30 million for the
manufacturer that could design and
manufacture refrigerators that delivered
the most energy savings at the lowest cost
per kilowatt-hour.
Whirlpool's winning design substantially
influenced refrigerator technology and has
had a long-term impact on the energy
efficiency of refrigerator models in the
industry.
Helped promote energy efficiency as a
pursuit across industries
Ansari X Prize^ focused on
developing a market that did not yet
exist: commercial, privately run space
travel and tourism. To ensure that
designs would be commercially
viable, the Ansari X Prize stipulated
that entries could not benefit from
government funding.
This focused innovators' efforts
within the constraint of cost factors
that stood in the way of a private
market for space travel and
exploration.
(Lampel, Jha, Bhalla,2012)
 the U.S. Defense Advanced Research Projects
Agency^ (DARPA) driverless vehicle competition
started with a focus on military applications in
hostile environments (specifically motivated by the
challenge of improvised explosive devices), but the
competition's innovation agenda subsequently

….. took on the broader ambition of creating

driverless "vehicles of the future"—without,
however, relinquishing the more specific target of
developing driverless vehicles for military use.
Check out TopCoder, Ashoka Change Makers, X Prize….
(Lampel, Jha, Bhalla,2012)
(Lampel, Jha, Bhalla,2012)