PAGE 1 CONFIDENTIAL ©2015 DECODE INNOVATION FOUR STRATEGIES MANUFACTURERS NEED IN 2016 Damian Costello, Managing Partner January 2016
INNOVATION STRATEGY AND CAPABILITY BUILDING
OPERATES ACROSS THE THREE INNOVATION HORIZONS… IMMEDIATE Controlled creation of new Product/Service/Processes STRATEGIC Controlled definition of Vision/Structure/Investments DISRUPTIVE Proactive reaction to periodic emergence of catastrophic external forces
A ROBUST 3 STEP PROCESS … DIAGNOSE with leaders to uncover what will make a difference here and why CO – CREATE solutions with senior management who know the environment ROLL OUT solutions in manageable parts with measurable objectives
PAGE 5 CONFIDENTIAL ©2015 DECODE INNOVATION
A NEW PERSPECTIVE ON THE 4 KEY STRATEGIES YOU NEED TO BE ON TOP OF IN 2016: 1.INNOVATION STRATEGY 2.CAPABILITY STRATEGY 3.DIGITAL STRATEGY 4.PEOPLE STRATEGY AGENDA
PAGE 7 CONFIDENTIAL ©2015 DECODE INNOVATION Substance Earlier input = less tax Agility Less lead-time, more SKUs Diversification New things to offer Disruption Do you feel it? Are you ready for it? INNOVATION STRATEGY = more control only going to get worse existing offering only more specialised STRAIGHTFORWARD
WAVES OF DISRUPTION HITS DIFFERENT SECTORS AT DIFFERENT TIMES …but the ‘HOW’ always is always the same …it may be difficult to determine the ‘WHEN’
PAGE 9 CONFIDENTIAL ©2015 DECODE INNOVATION Innovators 2.5% Early adaptors 13.5% Early Majority 34% Late Majority 34% Laggards 16% 100% 75% 50% 25% 0% S-Curves first used to describe innovation Value Time 34% Stable Growth Slow Start Diminishing Returns Birth Death S-CURVE DYNAMICS
PAGE 10 CONFIDENTIAL ©2015 DECODE INNOVATION PROGRESS IS ACCELERATING
PAGE 11 CONFIDENTIAL ©2015 DECODE INNOVATION PROGRESS PROGRESS IS EVOLUTIONARY Value Time Jump Disruption 3 rd Gen 1 st Generation 2 nd Gen
PAGE 12 CONFIDENTIAL ©2015 DECODE INNOVATION INNOVATORS DILEMMA Value Step backwards to go forward dynamic Time The next generation initially performs relatively poorly By the time today's leaders get to grips with change Tomorrow’s leaders have an unassailable lead
PAGE 13 CONFIDENTIAL ©2015 DECODE INNOVATION PROGRESS IN DISGUISE Horse Power Steam
PAGE 14 CONFIDENTIAL ©2015 DECODE INNOVATION MUSIC IN DISGUISE Analogue Digital
PAGE 15 CONFIDENTIAL ©2015 DECODE INNOVATION COMMUNICATIONS IN DISGUISE Analogue Digital
PAGE 16 CONFIDENTIAL ©2015 DECODE INNOVATION LOOK BENEATH THE SURFACE Old Ways Next Generation
PAGE 17 CONFIDENTIAL ©2015 DECODE INNOVATION WHAT IS THE TRUE NATURE OF THE DIGITAL DISRUPTION
PAGE 18 CONFIDENTIAL ©2015 DECODE INNOVATION TRUE NATURE OF DIGITAL Third Industrial Revolution or Manufacturing 4.0? Digital technology is invading the physical world Change what we make and how we make it Who we are making it for have already changed Similar transformation to the advent of electricity All sectors - same changes at the same time Scramble for talent and ICT resources
PAGE 19 CONFIDENTIAL ©2015 DECODE INNOVATION TWO PHASES OF CHANGE Before Electricity Early Electricity Mature Electricity
PAGE 20 CONFIDENTIAL ©2015 DECODE INNOVATION TRUE NATURE Before Digital Early Digital Mature Digital What can we start working on today to ensure we are ready for tomorrow’s digital reality?
PAGE 21 CONFIDENTIAL ©2015 DECODE INNOVATION Capital Expenditure In transient markets add services (to enhance ROI timing) Vertical Capability Building Rent rather than buy Strategic Out-sourcing (Other people’s CAPEX) Horizontal Capability Building Offer what you have to adjacent sectors (Sales and Marketing) CAPABILITY STRATEGY
PAGE 22 CONFIDENTIAL ©2015 DECODE INNOVATION Internet of Things Smart everything opens doors for non-traditional competition 3D Printing Additive manufacturing means self-service economics Business in a Digital Environment Today’s Social Media toys will soon evolve into real tools DIGITAL STRATEGY
PAGE 23 CONFIDENTIAL ©2015 DECODE INNOVATION Global Talent War the more you automate, the higher calibre talent you need The Digital Generation Organisations must fit the Gen Ys, Ys wont fit into organisations Leadership True leadership is in, authority is out PEOPLE STRATEGY
PAGE 24 CONFIDENTIAL ©2015 DECODE INNOVATION A DISRUPTION IS JUST A SHAKE UP
PAGE 25 CONFIDENTIAL ©2015 DECODE INNOVATION DISRUPTIONS CREATE MORE WINNERS THAN LOSERS
PAGE 26 CONFIDENTIAL ©2015 DECODE INNOVATION EARLY INTERNET MATURE INTERNET
PAGE 27 CONFIDENTIAL ©2015 DECODE INNOVATION A SMALL AGILE ECONOMY
PAGE 28 CONFIDENTIAL ©2015 DECODE INNOVATION ALREADY A GLOBAL DIGITAL PLAYER
PAGE 29 CONFIDENTIAL ©2015 DECODE INNOVATION HAS A DISTINCT ADVANTAGE
PAGE 30 CONFIDENTIAL ©2015 DECODE INNOVATION MANUFACTURING IN IRELAND HAS A GREAT FUTURE MANUFACTURING IN IRELAND HAS A GREAT FUTURE
PAGE 31 CONFIDENTIAL ©2015 DECODE INNOVATION CONCLUSION INNOVATION STRATEGY Straightforward unless you are being disrupted CAPABILITY STRATEGY Get the most out of what you already have DIGITAL STRATEGY Its more than the automation of current tasks PEOPLE STRATEGY People will reward being engaged rather than driven
THANK YOU