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Innovation and creativity 06 innovative organizations

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Course name: Innovation and creativity
Chapter 06: innovative organizations

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Innovation and creativity 06 innovative organizations

  1. 1. Chapter 06: Innovative organizations BY KAMAL M. AL MASRI Israa University Gaza Faculty of Managerial and Financial Sciences Departmentof Management 1 Course code: ::::..BEAD4312..::::
  2. 2. Innovation and Creativity By Kamal AL MASRI 2 Two videos GOOGLE'S FLEXIBLE WORKSPACE Exclusive Look Inside Facebook’s Engineering Office In London Reportage TF1 Le JT : Les ambitions démesurées du géant Huawei
  3. 3. Innovation and Creativity By Kamal AL MASRI 3 Internal factors (drivers) of innovation and change … Skills, attitudes, …PeopleP - Lines of communication, and reporting/reward systems, … Administrative structures A - Change would require a fundamental transformation. Core businessC - Minor equipment/software to complete redesign. TechnologyT - Recall
  4. 4. Innovation and Creativity By Kamal AL MASRI 4 Introduction  Innovation needs a real nurturing and encouraging environment.  Necessary to recognize market opportunities, and respond innovatively to market “problems”.  Organizations must provide an environment in which creativity and innovation can flourish.  Many elements count:  Vision and strategy for innovation,  Culture,  Processes, practices and systems,  Leadership/Top management commitment,  Empowered employees driving innovation,  … Innovative organizations have a specific “personality”.
  5. 5. Innovation and Creativity By Kamal AL MASRI 5 Most Innovative Companies BCG ranking, 2019
  6. 6. Innovation and Creativity By Kamal AL MASRI 6 What makes organizations innovative?  We are going to focus on five hallmarks of innovative organizations (Adair, 2004): 1) Top level commitment. 2) Flexible in the structure of the organization. 3) Tolerance of failure. 4) Encouraging teamwork. 5) Good at open and constructive communication.
  7. 7. Innovation and Creativity By Kamal AL MASRI 7 1- Top level commitment.  This must be visible and audible by: Ensuring that blocks are removed (bureaucracy, tough individuals). Valuing new ideas and innovation. Participating actively to ensure that all know of their commitment to positive and useful change. Avoid focusing on short-term profits (this can dull the edge of creativity and innovation).
  8. 8. Innovation and Creativity By Kamal AL MASRI 8 Top management is concerned … Managing innovation’ is a ‘challenge to management... especially top management and a touchstone of its competence’ Peter Drucker
  9. 9. Innovation and Creativity By Kamal AL MASRI 9 2- Flexible in organizational structure  The antithesis of the innovative organization is the bureaucratic one.  Remember, bureaucratic organizations are characterized by: • authority is impersonal and formal, • strong emphasis on functional specialization, • a rule for every eventuality, • clearly laid down procedures (red tape), • proliferation of paperwork, • security of employment and advancement by seniority.
  10. 10. Innovation and Creativity By Kamal AL MASRI 10 At the opposite, in flexible organizations:  ability to respond to changing situations,  barriers between staff in different areas are minimized,  flat rather than pyramid organizational structure,  decision making is pushed downwards to where the organization meets its customers/suppliers,  entrepreneurial flair present at all levels,  developing and testing more than one solution to problems encountered,  efficient rather than stifling monitoring systems,  balances freedom and order.
  11. 11. Innovation and Creativity By Kamal AL MASRI 11 3- Tolerant of failure  Innovation and risk go hand in hand.  Management which goes into critical overdrive when mistakes occur smothers creativity and innovation.  Risks can yield failure, but no risk ≈ no profits and no growth.  Unless failure results from negligence, recklessness or complete incompetence, managers should not seek out scapegoats or exact revenge. Profits are the reward for taking risks and innovative organizations learn to live with risk.
  12. 12. Innovation and Creativity By Kamal AL MASRI 12 Failure parties Yes, we can celebrate mistakes … This serves to:  Analyze mistakes to learn from the failures.  Encourage people to talk together.  Earn and discover new ways of doing things.  Promoting trust.  …
  13. 13. Innovation and Creativity By Kamal AL MASRI 13 Google: “reward failure” Google’s Head of People: “it’s also important to reward failure” so as to encourage risk-taking. He gives the example of Google Wave, an online platform launched in 2010 and closed a year later. “They took a massive, calculated risk. And failed. So we rewarded them.”  Read:  8 companies that celebrate mistakes  Gaming Empire Supercell: We Pop Champagne Every Time We Fail Just an example …
  14. 14. Innovation and Creativity By Kamal AL MASRI 14 4- Encouraging teamwork and innovation  In innovation it can be said that none of us is as good as all of us.  Teamwork and innovation are better in organizations where: • the climate is open, • participation is encouraged, • facts and information are readily available, • change is managed positively, • resources are provided for training and development, …
  15. 15. Innovation and Creativity By Kamal AL MASRI 15 Encouraging teamwork and innovation (cont.) • rules are at a minimum (with policies and guidelines instead) • internal communications are good and more by mouth than memo • respect is given to all colleagues (but not on demand by management – it has to be earned) • managers are themselves highly motivated • teamwork often transcends departmental boundaries.
  16. 16. Innovation and Creativity By Kamal AL MASRI 16 5- Good at open and constructive communication  Communication should be good laterally and vertically (and flatter organizations should – in theory, at least – encourage good lateral communication).  Managers should ensure a good flow of information – ideas can emerge as a result.  Cross-fertilisation can create more (and better) ideas, particularly where departmental, divisional boundaries are crossed.
  17. 17. Innovation and Creativity By Kamal AL MASRI 17 Innovation needs flat organizations ...  One key to successful business evolution in today's rapidly changing economy is to let go of centralized control.  People close to customers know better the market needs and can respond faster to rapidly changing customer requirements.  In flat organizations, decisions are made faster, entrepreneurial creativity of employees is released, and ideas are managed better.
  18. 18. Innovation and Creativity By Kamal AL MASRI 18 Let others do! "Don't tell people how to do things, tell them what to do and let them surprise you with their results." George S. Patton
  19. 19. Innovation and Creativity By Kamal AL MASRI 19 These factors can be measured … Scoring: Yes/No – More than 9 No scores – not good! Lets complete, just to test ….
  20. 20. Innovation and Creativity By Kamal AL MASRI 20 Technology Technology can be seen as both an internal and external driver for innovation. As an internal driver, it helps in:  Organizing people and communicating,  Redesigning processes,  Prototyping,  …
  21. 21. Innovation and Creativity By Kamal AL MASRI 21 Many managerial issues…  Many managerial issues can be discussed when talking about Innovative organizations:  Leadership styles: participative, transformational, directed, non- controlling leadership, ....  Resources and skills: team building, creative thinking, …  Effective communication systems: lateral, electronic, …  Work climate: incentives, participation, freedom of expression, freedom to experiment, trust and respect for the individual, …  …
  22. 22. Innovation and Creativity By Kamal AL MASRI 22 Places and practices of innovation… Innovative organizations create specific environments for innovation: • R&D teams, • Corporate Innovation Labs, • Corporate Garages, • Corporate Investment Programmes, • Corporate Hackathon, • Corporate Startup Funding, • Corporate Startup Awards, • Incubators, and Accelerators, • Open Innovation, • etc.
  23. 23. Innovation and Creativity By Kamal AL MASRI 23 Benefits To create new solutions, new products, and new processes through: Welcoming external visitors, Partnering with early-stage companies, Involving their own employees, …
  24. 24. Innovation and Creativity By Kamal AL MASRI 24 Examples of innovative organizations: • ABN AMRO Hackathons by ABN AMRO • Accor Innovation by Accor Hotels • Adobe Innovation by Adobe • Samara by Airbnb • Lab126 by Amazon • Innovation Centers by Apple • AT&T Labs by AT&T • AutoDesk Innovation Lab by AutoDesk • InsightStudio by Deloitte • Blue Lab by EDF Energy • ERICSSON Garage Challenge by ERICSSON • Innovation by Gartner • HP The Garage and HP Labs by HP • McKinsey Digital Labs by McKinsey See (link here).
  25. 25. Innovation and Creativity By Kamal AL MASRI 25 Deloitte InsightStudio “Delivering outcomes by design” Deloitte’s InsightStudio is a rapid incubator that can help you turn ideas into results. “It’s a powerful, fast way to see the tangible value that analytics and cognitive capabilities can deliver.”  Industry Focus: Professional Services  Link here
  26. 26. Innovation and Creativity By Kamal AL MASRI 26 Blue Lab by EDF Energy Working with start-ups, colleagues, students and innovators, to accelerate the process of conversion to a more sustainable offer. Industry Focus: Energy Link here
  27. 27. Innovation and Creativity By Kamal AL MASRI 27 McKinsey Digital Labs by McKinsey Providing new disruptive services for organizations that want to get the most out of the digital experience Industry Focus: Management Consulting Link here
  28. 28. Innovation and Creativity By Kamal AL MASRI 28 Hackathons A hackathon (also known as a hack day, hackfest or codefest) is a design sprint-like event in which programmers and others involved in a project, and others (domain experts), collaborate intensively on software projects.
  29. 29. Innovation and Creativity By Kamal AL MASRI 29 Hackathons (cont.)  The goal is to solve a problem or to meet a challenge by the end of the event.  Hackathons tend to have a specific focus but teams may includes contributors with different backgrounds (marketing, HR).  Hackathons can be internal or external events.  Regardless, hosts often incorporate ideas produced during the event in their own products or services.
  30. 30. Innovation and Creativity By Kamal AL MASRI 30 In Gaza? Yes, Hakathons exist in Gaza! Just do a little search on Google! “Empowering First Responders in Gaza: Students in Baltimore and Gaza Design Solutions for Humanitarian Health”  JULY 28, 2018, See the article (here).
  31. 31. Innovation and Creativity By Kamal AL MASRI 31 Some giant companies that failed to innovate … (read the article)  Polaroid  Nokia  Kodak  Palm  Motorola  Netscape  … Each one has its proper story, … But they have in common the fact that they couldn’t adapt to change … https://www.youtube.com/watch?v=T0Z73Zbtlyg
  32. 32. Innovation and Creativity By Kamal AL MASRI 32 Ignorant Polaroid? In 2001, due to the boom of digital photography, the company filed for bankruptcy. The leaders of the company continued to believe paper print was what customers wanted! They were great people who failed.
  33. 33. Innovation and Creativity By Kamal AL MASRI 33 Hard Motorola?  Motorola demonstrated the first handheld phone in 1973.  Motorola kept producing various versions of its cellphone, but they failed to see that customers wanted innovation in software rather than hardware.  Clearly lacking market knowledge, Motorola’s new products in the early 2000s weren’t enough to grow the business.
  34. 34. Innovation and Creativity By Kamal AL MASRI 34 Scared Sony?  Sony didn’t adapt to technological innovations such as digitalization, the shift towards software, and the growth of illegally downloadable music online.  Sony actually had the technology to launch a product even better than the iPod, but it never happened.  The company was too afraid to test out something new, thinking it would threaten their compatibilities on the market.  See the article “Why Sony did not invent the iPod.”
  35. 35. Innovation and Creativity By Kamal AL MASRI 35 References  Essentials of the Management of Creativity and Innovation in Education, Business, and Engineering, Christian H. Werner and Min Tang, 2017. in Handbook of the management of creativity and innovation: Theory and practice, World Scientific Press, 2017.  Managing Change, Creativity & Innovation, 3rd Edition, Patrick Dawson, Constantine Andriopoulos, SAGE, 2017, Los Angelos.  Part 3: Creative Industries, Innovative cities and Changing Worlds  10. Creative Industries, Innovative Cities and Changing Worlds 377  11. The Individual: Promoting Critical Thinking 426  12. The Group: Nurturing Teamwork 458  13. The Leader: Promoting New Ideas at Work 503  14. The Internal Environment: Orchestrating Structure, Systems and Resources 538  15. Culture: Enabling and Constraining Creative Processes at Work 577 
  36. 36. 36 Thank you!

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