Go Summarize

Webinar - Embracing Intrapreneurship: Create a Culture of Innovation within Your Organization

Stanford Online2021-09-15
3K views|2 years ago
💫 Short Summary

The video features discussions on launching innovative startups within big businesses, addressing barriers faced by large companies, structuring organizations for innovation, selecting projects for transformation, and blending internal and external sources of innovation. It emphasizes the importance of disruptive innovation, protected frameworks for transformative ideas, and strategic approaches to drive business growth. The speakers highlight the need for diverse expertise, CEO involvement, and strong organizational support to protect innovative projects. The video also touches on the importance of blending internal and external sources of innovation, creating a culture that values innovation from various sources, and adopting hybrid methodologies for efficient innovation processes.

✨ Highlights
📊 Transcript
Expertise of Dr. Ray Leavitt and Professor Pedram.
Dr. Ray Leavitt specializes in enhancing the sustainability of challenging projects with experience in civil engineering and consulting for Fortune 500 companies.
Professor Pedram is an expert in digital technologies for global urbanization challenges, with a background in venture capital, entrepreneurship, and innovation strategy.
Dr. Leavitt teaches organizational design and entrepreneurship, while Professor Pedram works with startups and incubators to accelerate new ventures in machine intelligence and IoT applications.
Challenges of launching innovative startups within big businesses.
Large companies face barriers in commercializing their own technology, which often underperforms compared to legacy products.
Disruptive innovation, or submarine innovation, is highlighted as a method for exceeding performance expectations and surprising existing clients.
Importance of adapting to market innovations and overcoming traditional business models is emphasized.
Internal disruptive innovations are often opposed by existing business line managers in big companies, leading to missed growth opportunities.
Examples of Kodak and Xerox failing to capitalize on their inventions are highlighted.
The importance of addressing resource conflicts, shareholder expectations, and challenges of innovation within large organizations is emphasized.
Strategies for protecting against these obstacles are explored, with a focus on the impact on overall business performance and success.
Framework for structuring organizations to promote innovation.
The segment outlines four zones: Horizon One for current fiscal year profits, Productivity Zone for ongoing performance, Transformation Zone for new innovations, and Disruptive Innovation Zone for exploring new opportunities.
Emphasizes the importance of protecting and prioritizing resources for innovation to prevent stagnation in existing product lines.
The framework serves as a model for organizing and prioritizing activities within an organization to enhance efficiency and foster innovation.
Framework for Innovation in Business
The business is divided into revenue-generating right side and disruptive innovation-focused left side.
A protective structure separates the two sides to safeguard disruptive innovations from interference by core business operations.
Resources supporting disruptive innovation are protected from being redirected towards incremental improvements in the core unit.
Goal is to establish a framework that fosters innovation and allows transformative ideas to scale up, impacting top-line revenues in the long run.
Importance of selecting specific projects for transformation and high-level architecture.
Different zones within an organization - performance, incubation, and productivity zones, each with distinct purposes.
Incubation zone focuses on new technologies and defending against external disruptions.
Emphasis on strategic approach, CEO involvement, and organizational support to protect innovative projects.
Importance of diverse expertise in investment committees for guiding technology innovation.
Having venture capitalists and strategic representatives on the committee is crucial.
Managerial skills are essential for effectively scaling business ideas.
Understanding market segments, cost structures, and strategic value is key to successful product development.
Venture capitalists play a crucial role in evaluating solutions to address market needs and create value.
Importance of aligning internal capabilities with product strategy in product development and commercialization.
Xerox's failure to capitalize on personal computing innovation due to focus on leasing copiers.
Limited ability to commercialize groundbreaking technologies led to missed opportunities in the market.
Learning to think like a technology company and adapt to changing market demands is crucial for sustained success in business.
Evolution of Business Models and the Dollar Shave Club Acquisition by Unilever.
Companies are urged to innovate in digital marketing, online sales, and subscription services for disposable products.
Importance of creating an incubation zone for experimentation and funding based on milestones, not annual budgets.
Process of de-risking technology and market testing before scaling up into a larger business.
Emphasizing gradual funding and management involvement in the scaling process.
Balancing Innovation and Structure in Corporations.
CEOs should be incentivized to support new innovations and products.
Treat new ideas and experiments like start-ups while maintaining structure.
Rapid releases can confuse customers unless the company is like Amazon.
The incubation zone should be strategically linked to the performance zone and competition, focusing on new innovative projects.
Transitioning from seed technology incubation to business growth involves scaling up with more people, capital, structure, and specialized roles.
Founders may need to bring in executives to drive business growth, which can be a challenging shift.
The difference between the incubation zone and the transformation zone is in creating top-line value and benefits for the organization.
The transformation zone requires substantial resource allocation to drive initiatives that bring significant new value.
Innovations today often come from external sources, requiring a new framework for managing multiple innovations effectively.
Importance of blending internal and external sources of innovation within organizations.
Structures should allow for hybrid innovations and collaboration with outside organizations.
Lack of clear definition of innovation stages is common, from discovery to development to delivery.
Launching new businesses, product lines, and business models is crucial.
Value delivery and strategic growth are essential for survival and sustained growth through innovative practices.
Ways to bring external ideas into an organization include sponsored hackathons, research competitions, and accelerators.
Joining industrial affiliate programs at universities allows for networking with academic researchers, startups, and competitors in a controlled environment.
Becoming a limited partner in a venture fund focused on the desired sector provides insight into startup review processes and interactions with strategic investors.
These strategies offer opportunities for collaboration, learning, and innovation in the organization.
Importance of External Collaborations for Innovation in Organizations.
Encourages organizations to go beyond internal R&D and consider external venture capital funding for diverse and impactful ideas.
Emphasizes the need for a culture that values innovation from different sources like skunkworks, studios, and corporate venture functions.
Building strong development muscle is crucial for corporations to explore unconventional ideas outside their comfort zone.
Programs like the ideas market can facilitate the process of exploring new and diverse ideas.
The new type of thinking around innovation from a corporate perspective is expected to revolutionize companies, leading to more innovations reaching the market.
A venture studio is compared to a traditional Skunk Works program, emphasizing internal development and delivery of value.
The model extends the concept by incorporating external expertise in team execution, technology, capital resources, and market distribution.
The venture studio model aims to address limitations in speed to market by adopting hybrid methodologies for a more efficient innovation process.
Introduction to venture studio model for collaboration between startups and corporations.
Startups receive payment from corporations for non-recurring engineering to develop features relevant to the corporation's business needs.
Payment is repaid in license discounts, incentivizing startups to sell their innovations after a certain period.
Corporations benefit from desired features without investing in or owning startups.
Challenges faced by nonprofit organizations in fundraising and competing for donations based on environmental or social impact are discussed.
Nonprofits must provide a return on investment to high net worth individuals and foundations, even if not purely financial.
Nonprofits need to innovate, demonstrate high value for money, and operate efficiently for sustainability.
Treat nonprofits as businesses with metrics for success.
The entrepreneurial process can be applied to pitching nonprofit organizations for sustainability.
Nonprofits should embrace innovation, such as using technology like drones for delivery.
Challenges to Innovation in Organizations.
Power struggles and office politics within organizations hinder progress and delay innovation.
Egos, anxieties, and internal politics are major obstacles to fostering innovation.
Dealing with systemic politics is crucial for developing new products and services.
Senior champions are essential for supporting and driving innovation initiatives within organizations.
Importance of Senior Leadership Alignment in Creating a Positive Organizational Culture.
Senior leaders play a crucial role in modeling behaviors that influence the entire organization.
Difficulty in persuading senior executives to embrace change, as demonstrated by IBM's challenges.
The impact of leadership behavior on organizational dynamics.
The need for leaders to set the right example for others to follow.
Transformation of IBM from a product company to a global service company under Louis Gerstner's leadership.
Gerstner's book 'Who Says Elephants Can't Dance' details his journey of cultural change at IBM.
IBM struggled before Gerstner's arrival, prompting the Board of Directors to recognize the need for change.
Gerstner's non-engineering background provided a fresh perspective to IBM's leadership.
IBM's late entry into emerging technologies like mobile phones led to the acquisition of Nokia and the adoption of Windows Mobile.
Strategies for maintaining competitiveness under financial constraints.
Established companies may struggle with debt and pension obligations, unlike startups.
Innovation activities should be funded by a portion of the business, along with external sources like research organizations and venture capitalists.
Embracing external innovation can alleviate pressure on internal capital.
M&A and divestitures should focus on unlocking value from assets for struggling organizations.
Importance of shedding old structures and investments for organizational innovation.
Aligning capital structure and financing mechanisms with new initiatives is crucial for success.
Hoarding outdated elements can hinder progress and innovation within organizations.
Portfolio management and prioritization are essential for identifying opportunities in different markets.
Strategic decisions on what not to pursue are just as important as focusing on what to pursue for sustainable success.
Closing remarks and gratitude from the speaker.
The audience is thanked for their time and encouraged to share the recording with others if they found it helpful.
Gratitude is expressed for spending the hour together and wishes everyone a great rest of the day.