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© Copyright 2006 By InnovationLabs InnovationInnovation What is the link between innovation and strategy?

© Copyright 2006 By InnovationLabs InnovationInnovation The Nature of Reality

© Copyright 2006 By InnovationLabs InnovationInnovation New Scientific Consensus: Arctic Is Warming Rapidly REYKJAVIK -- The Arctic is warming much more rapidly than previously known, at nearly twice the rate as the rest of the globe, and increasing greenhouse gases from human activities are projected to make it warmer still, according to an unprecedented four- year scientific study of the region conducted by an international team of 300 scientists.

© Copyright 2006 By InnovationLabs InnovationInnovation Human Population: Fundamentals of Growth Population Growth and Distribution In 2000, the world had 6.1 billion human inhabitants. This number could rise to more than 9 billion in the next 50 years. For the last 50 years, world population multiplied more rapidly than ever before, and more rapidly than it will ever grow in the future. Anthropologists believe the human species dates back at least 3 million years. For most of our history, these distant ancestors lived a precarious existence as hunters and gatherers. This way of life kept their total numbers small, probably less than 10 million.

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© Copyright 2006 By InnovationLabs InnovationInnovation Internet Hosts, GermanyInternet Hosts, World

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© Copyright 2006 By InnovationLabs InnovationInnovation Chip capacity (Moore’s Law)... Use of Fax Machines... Use of Cell Phones... Use of Internet … Information Excess... Growth of Human Population... Consumption of Resources … Increasing Pollution … Exponential Change!

© Copyright 2006 By InnovationLabs InnovationInnovation + specialization through technology Technology & the Acceleration of Change + more exponential change increased specialization through technology exponential change Innovation is the basis of competition

© Copyright 2006 By InnovationLabs InnovationInnovation Average Lifetime of An S&P 500 Company years Source: Foster: Creative Destruction

© Copyright 2006 By InnovationLabs InnovationInnovation will survivewill disappear Companies of the US S&P

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© Copyright 2006 By InnovationLabs InnovationInnovation Creative Destruction Bethlehem Steel ATT Sears Oldsmobile Compaq Creative Destruction Volvo Webvan DEC Netscape etc., etc., etc. Chrysler the force of capitalism

© Copyright 2006 By InnovationLabs InnovationInnovation How you manage here Is not the same as how you manage... here change gap

© Copyright 2006 By InnovationLabs InnovationInnovation You are *Manage accordingly here*

© Copyright 2006 By InnovationLabs InnovationInnovation t 1 t 2 c 1 c 2 t 1 = t 2 c 2 = 5 x c 1

© Copyright 2006 By InnovationLabs InnovationInnovation Cellular Phone market, USA, forecast vs. reality Forecast by McKinsey & Co. for ATT millions of units forecast: 900,000 units reality: 17 million units predictions …

© Copyright 2006 By InnovationLabs InnovationInnovation “This ‘telephone’ has too many shortcomings to be seriously considered as a means of communications. The device is inherently of no value to us.” Western Union, 1876 “Everything that can be invented has been invented.” C.H. Duell, US Commissioner of Patents, 1899 “There is no reason anyone would want a computer in their home.” Ken Olsen, Founder Digital Equipment Corp., 1977 … are dangerous

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© Copyright 2006 By InnovationLabs InnovationInnovation What is the link between innovation and strategy?

© Copyright 2006 By InnovationLabs InnovationInnovation “Learning faster than your competition is the only sustainable competitive advantage.” Arie de Geus “Learning faster than your competition is the only sustainable competitive advantage.” Arie de Geus learning faster learning learning learning learning learning faster

© Copyright 2006 By InnovationLabs InnovationInnovation What is the link between innovation and strategy? they’re the same thing they’re the same thing