1. CROSS BORDER INNOVATION
Dr. Iris Berdrow

2. Innovation news: Maybach
June 25, 2013: "Sadly, luxury maker Maybach was recently closed down by Daimler, but its one-off prototype Exelero lives on in the dreams of deluxe auto fans as one of the most expensive concept cars ever made. The reported sale price to rapper Birdman: $8 million.  Commissioned by Fulda Tyres to test wide tires, the Exelero has a 700-horsepower twin-turbo V-12 engine that does 0 to 60 mph in 4.4 seconds with a top speed of 218 mph."
The Maybach Exelero concept is a production commissioned by Fulda Tyres to test wide tires. The 700-horsepower engine powers a car that was modeled after luxury streamlined cars of the 1930s.
February 8, :23 PM PST
Photo by: Chicago Auto Show

3. What is missing? INNOVATION TYPOLOGY FROM Doblin Group, Chicago
FINANCE
Business Model
How you make money
Networks and Alliances
How you join forces with other companies for mutual benefit
PROCESSES
Enabling Processes
How you support the company’s core processes and workers
Core Processes
How you create and add value to your offerings
OFFERINGS
Product Performance
How you design your core offerings
Product System
How you link and/or provide a platform for multiple products
Service
How you provide value to customers beyond and around your products
DELIVERY
Channel
How you get your offerings to market
Brand
How you communicate your offerings
Customer Experience
How your customers feel when they interact with your company and its offerings

4. Environ-mental Innovation What about the after life?
CONTEXT
Innovating where?
Domestic
Cross-Border
Global
STAKEHOLDER
Innovation for who?
Social Innovation
Environ-mental Innovation
LIFE-CYCLE
What about the after life?
Reduce
Reuse
Recycle

5. LANGUAGE OF INNOVATION
Focus on processes and systems**:
Autonomous – can be introduced without modifications to other components
Systemic – requires significant modifications in other components
Focus on knowledge needed*:
Competence Enhancing – improvement building on existing know-how
Competence Destroying – shift in skills and knowledge base required
Focus on what is offered:
Invention, Radical, Breakthrough
Optimization, Incremental, Line Extension
INNOVATING LEARNING INNOVATION
*Tushman & Anderson, 1986
** Teece 1996

6. Radical and Incremental Innovation

7. Disruptive Innovations Clayton M. Christensen
An innovation (or technology) that disrupts an existing market.
"Generally, disruptive innovations were technologically straightforward, consisting of off-the-shelf components put together in a product architecture that was often simpler than prior approaches. They offered less of what customers in established markets wanted and so could rarely be initially employed there. They offered a different package of attributes valued only in emerging markets remote from, and unimportant to, the mainstream.“
Christensen, Clayton M. (1997). The innovator's dilemma: when new technologies cause great firms to fail. Harvard Business Press.
For example…
Disruptive Innovation: Disruptive innovation, a term of art coined by Clayton Christensen, describes a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves ‘up market’, eventually displacing established competitors.  An innovation that is disruptive allows a whole new population of consumers access to a product or service that was historically only accessible to consumers with a lot of money or a lot of skill.  Characteristics of disruptive businesses, at least in their initial stages, can include:  lower gross margins, smaller target markets, and simpler products and services that may not appear as attractive as existing solutions when compared against traditional performance metrics. 
For example, the one-laptop-per-child initiative was envisioned by Nicholas Negroponte, cofounder and chairman emeritus of MIT’s media lab. The concept, which he unveiled at the World Economic Forum at davos, Switzerland in January 2005, was to give all children in developing countries a laptop computer of their own. The vision led Negroponte to organize the project as a nonporifit – the OLPC foundation. The challenge was then in the implementation – how to achieve minimal power consumption, a manufacturing cost of US$100 for production runs of millions of units, a cool look, e-book functionality and free or open-source software development. Since its launch computer manufacturers are now developing a commercialized version.

8. Disruptive Technology

9. EXAMPLES OF DISRUPTIVE TECHNOLOGIES (from Wikipedia)
Innovation
Disrupted market
8 inch floppy disk drive
14 inch floppy disk drive
Steamships
Sailing ships
5.25 inch floppy disk drive
Telephones
Telegraphy
3.5 inch floppy disk drive
Automobiles
Rail transport
Downloadable Digital Media
CDs, DVDs
Private jet
Supersonic transport
Hydraulic excavators
Cable-operated excavators
Plastic
Metal, wood, glass etc
Mini steel mills
vertically integrated mills
Light-emitting diodes
Light bulbs
Minicomputers
Mainframes
Digital synthesizer
Electronic organ and piano
Personal computers
Minicomputers, Workstations.
Mobile Telephony
Mobile Discount Operators
Desktop publishing
Traditional publishing
LCD
CRT
Computer printers
Offset printing
Digital calculator
Mechanical calculator
Digital photography
Chemical photography
Ultrasound
Radiography (X-ray imaging)
High speed CMOS video sensors
Photographic film
Podcasting
Broadcast Radio & TV

10. S-Curve for Performance
Disruptive technologies initially appear at a lower performance level than that of the existing technology.

11. Innovation as a learning process

12. The process of purposeful problem solving!

13. Innovation as a learning process
Innovation is the creation of a solution to a problem.
Innovation requires knowledge.
Learning is the process of acquiring and/or creating knowledge.

14. INNOVATION PROCESS & IDEATION (Davila et al, 2006: p.125)
Generation of Ideas
Radical
Innovation
Incremental
Selection
Execution
Creation
Of Value
Generation
of Ideas
Product, Service and/or Process Innovation

15. Symptoms of learning disability
Disbelief in effectiveness of innovation
Accidental rather than strategic execution of innovation projects
Focus solely on incremental innovation
Lack of investment in innovation

16. Knowledge, Learning & Innovation
McDonough, E., M.E.Zack, H.Lin & I. Berdrow “Integrating Innovation Style and Knowledge into Strategy. MIT Sloan Management Review, 50(1), pp
Product/Market
Position
Given what we know what product/market position can we execute?
What do we need to know to execute our product/market position?
What innovation position should we pursue given our product/market position?
Given our innovation position, what product/market position make the most sense?
Innovation position
Knowledge position
What innovation position can we execute given what we know?
What knowledge is needed to support our innovation position?

17. Characteristics of learning (Davila et al, 2006: p.212)
Specific processes for learning are in place (e.g. post project reporting)
Systems view of the organization (double loop learning)
Shared vision of what is important to the organization
Flexibility and agility to change
Proactive rather than reactive decisions
Collaboration that maximizes creative tension and minimizes destructive tension

18. How do organizations learn? (Davila et al, 2006)
Learning to act – Can we improve things we are already doing? Incremental improvement of current actions.
Learning to learn – how do we create, acquire, adapt and disseminate knowledge? Are we good at it? Questioning current actions and seeking new opportunities.

19. Where does knowledge reside?
Individuals – vision, experience, images, metaphors
Groups – shared meaning, language, conversation
Organizations – routines, systems, rules and procedures, artifacts
External – universities, government think tanks, consultants

20. Example of Innovation as Learning: RoboBees : Robotic insects make first controlled flight
Pursuit of Knowledge: “I want to create something the world has never seen before. It’s about the excitement of pushing the limits of what we think we can do, the limits of human ingenuity.”   Kevin Y. Ma, a graduate student at SEAS
Innovation as Inspiration: Inspired by the biology of a fly, with submillimeter-scale anatomy and two wafer-thin wings that flap almost invisibly, 120 times per second, the tiny device not only represents the absolute cutting edge of micromanufacturing and control systems, but is an aspiration that has impelled innovation in these fields by dozens of researchers across Harvard for years.
Building the capability: “It’s really only because of this lab’s recent breakthroughs in manufacturing, materials, and design that we have even been able to try this.“
Innovation as problem solving: “We would get one component working, but when we moved onto the next, five new problems would arise. It was a moving target.”
Learning how to innovate: “We can now very rapidly build reliable prototypes” … the team has gone through 20 prototypes in just the past six months.
Extending what was learned: “Now that we’ve got this unique platform, there are dozens of tests that we’re starting to do, including more aggressive control maneuvers and landing,” says Wood.
Learning how to collaborate: “This work is a beautiful example of how bringing together scientists and engineers from multiple disciplines to carry out research inspired by nature and focused on translation can lead to major technical breakthroughs.”