Burkard Wördenweber • UweWeissflog Innovation Cell Burkard Wördenweber • Uwe Weissflog Innovation Cell Agile Teams to Master Disruptive Innovation ^ Sprin ger Professor Dr. Burkard Wördenweber Global advanced Visteon Deutschland GmbH European Corporate Office & Innovation Centre Visteonstr. 4-10 50170 Kerpen Germany [email protected] Uwe Weissflog Pathway Guidance - Europe Rinnengärten 1 34516 Vöhl-Marienhagen Germany uwe. [email protected] Library of Congress Control Number: 2004118097 ISBN 3-540-23559-0 Springer Berlin Heidelberg New York This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in other ways, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer. Violations are liable to prosecution under German Copyright Law. Springer is a part of Springer Science + Business Media springeronline.com © Springer-Verlag Berlin Heidelberg 2005 Printed in Germany The use of general descriptive names, registered names, trademarks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. Typesetting: Digital data suppHed by authors Cover-Design: medionet AG, Berlin Production: medionet AG, Berlin Printed on acid-free paper 68/3020 Rw 5 4 3 2 10 In Gratitude To Janet and Gerda Without their patience, encouragement and continuous support we would not have finished writing this book. For this we are gratefiil. Foreword There are many ways to describe the gap, which a lean company has to jump to become innovative. Some people see the gap between research and design for production, where people with different mindsets find it hard to communicate and work for the same goal. Other people feel that the gap is the schism between effectiveness and efficiency, i.e. trying to do the right thing is not compatible with trying always to doing things right. Other people believe the gap to be caused by the different paradigms of exploitation and exploration. The financial constraints of globally compet ing companies striving to become more and more lean are leaving fewer and fewer resources for the necessary experimentation to find successful innovations. Whatever the explanation one thing is certain: globally acting companies have to marry short term success with long term sustainability. They have to be at the same time competitive with current products and services and innovative to prepare future products and services. This book offers a novel view for management to address and imple ment innovation. It shows that innovation can not be ordered but has to be lived. It illustrates with real life examples, how innovation requires cour age to do the right thing and not always just the safe thing. And it shows that courage can be its own reward. I wish you stimulating reading. John F. Kill Senior Vice President - Product Development Visteon Corporation Visteon Village, December 2004 Contents Index of Essays XI Index of Examples XV Introduction 1 1 Disruptive Innovations - and how to master them 3 2 A growing awareness of being stuck 5 2.1 Collective avoidance 6 2.2 Comfortable versus hungr\^ 13 2.3 Caught in displacement activities 14 3 Reaching a new perspective 23 3.1 Frame shift: effectiveness versus efficiency 24 3.2 Looking outwards 29 3.3 Looking for the new and unexpected 41 4 Taking the plunge into the unknown 49 5 Change is hard work 61 5.1 Prepare forthejoumey 73 5.2 Focus your effort 76 5.3 Remaining uncomfortable and agile 89 6 Selling innovations 105 6.1 Allowing things to happen 116 6.2 Continue with efficiency 117 6.3 Remaining true to yourself 119 The story of this book 127 Further reading 133 Acknowledgements 137 Index of Essays The essays used in this book describe our personal views and understand ing of certain key questions. They are the distillate of experiences we gath ered on our journey towards self-organisation and innovation. The essays represent individual viewpoints, and can be read independently from each other. They are connected through the author-reader dialogue of the book, and represent the different facets of innovation found in market and prod uct hfecycles. What is changing? 7 What lies at the root of change today? 8 What makes the digital world so significant? 8 What makes unrestricted distribution so significant? ..9 How do unrestricted distribution and digitalisation affect us? 10 What new opportunities may emerge? 11 Does progress matter? 15 Disruptive product and technology 15 Disruptive structure and organisation 16 Disruptive people ..18 Being successful in disruptive environments 25 What characterises disruptive environments? 25 Exactly what is our dilemma? 26 What is your main role as amanager? 27 How do you ensure the smooth running of the company? 27 What makes your company innovative? 28 What is it that the successful really do? 31 The successful sharpen their senses 32 The successful are aware of their habits and addictions 33 The successful rediscover values beyond the material 35 Taking risks and being courageous 36 Successful Innovators enable others to engage 38 XII Index of Essays Can you learn disruptive Innovation? 41 Are you happy with your future? 41 Feeling right, but somehow unsuccessful? 42 Do you want to be master of your own success? 43 Are you prepared to go where there is no right and wrong? 46 Do you have to do everything yourself? and who guides you? 46 Go with the flow - the courage to take the plunge 49 What do you need to let go of? 53 Non-linearity 55 What should you take on the journey? 56 Your first step as an Innovation Manager 57 Practical aspects of creating an Innovation Cell 62 Where do you set up an Innovation Cell? 62 What is special about the Innovation Cell? 63 What skills are needed, and what will you receive in return? 67 What are typical results achieved by Innovation Cells? 67 How does an Innovation Cell differ from a standard organisation? 70 How will you and your organisation benefit from the Innovation Cell? 73 Can I manage change and stability side by side? 76 How to bridge the natural incompatibility of the hierarchical organisation using self-organisation 76 How to deal with the unknown in a deterministic environment 77 How do you resolve power issues of manager and team autonomy?... 79 How to encourage failure tolerance in a lean company 80 How to accommodate the real possibility of personal failure 81 How do I learn a sense of timing? 82 Why one room? 84 Group dynamics 84 Learning 85 Address 86 Selective access 87 Spontaneous communication 88 Why autonomy? 91 Simplicity of organisation 91 Trust in accountability 91 A fresh start through independence 92 Index of Essays XIII A 'tour de force' with speed of decisions 92 Aiming at success with dynamic failure tolerance 93 What do I gain? - Path of Innovation leadership 94 Seeing with new eyes 94 The possibility of new types of leadership and professionalism 96 Being an entrepreneur of Innovation....C^. 98 Rediscovering our creative forces 101 What creates sustainability? 106 Interface to organisation 106 Co-dependence Innovation Cell and production 109 Pipeline 110 New Ventures 112 The end is the beginning 120 Innovation Cell is one answer to disruptive environments 121 What's beyond Innovation Cells? 123 Index of Examples We have used examples to illustrate the validity of the points made in this book. All the examples are derived from the authors' own experience, but names, places and contents have been modified to protect the privacy of the original sources. Any resemblance to other actual cases is purely coin cidental. You will recognise examples in the text by their indentation and the accompanying line along the left edge. Who are you trying to impress? 5 Be prepared for the unexpected 7 How the fear of the unknown limits our scope 13 A creative research organisation 16 Dedicated teams can handle high risks projects 20 Common misuse of power 23 Inter-divisional Innovation 29 The need for path finding 30 The power of risk assessment for Innovation projects 40 Technology looking for a product 44 The challenge of a contradiction 45 Successful product strategy in 2 days 51 Wide goals can generate spin-offs in other areas 53
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