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EGS 4624
ENGINEERING L EADERSHIP & I NNOVATION
SUMMER 2016
C REATIVITY & I NNOVATION
06/29/16
D R. WENDY MI ZEREK-HERRBURGER
Innovative Engine
* inGenius – A Crash Course on Creativity, Tina Seeling
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Innovative Engine
 Innovation Engine
 Knowledge
 Imagination
 Attitude
 External Factors to Your Innovation Engine
 Resources
 Habitats
 Culture
* inGenius – A Crash Course on Creativity, Tina Seeling
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Spark a Revolution Overview
 Chapters 1-3
 Focus on enhancing the imagination
 Frame and Re-Frame a Problem
 Connecting ideas
 Challenging assumptions
 Chapter 4
 Focuses on building your base of knowledge
 Polish your powers of observation
* inGenius – A Crash Course on Creativity, Tina Seeling
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Spark a Revolution Overview
 Chapter 5-8
 Investigates the factors in your habitat that influence your creativity
 Your space
 Constraints
 Incentives
 Team Dynamics
 Chapters 9 & 10
 Addresses your attitude
 Looks closely at your willingness to experiment
 Your ability to push through challenges to solve problems that may seem
insurmountable
* inGenius – A Crash Course on Creativity, Tina Seeling
UNIVERSITY OF CENTRAL FLORIDA EGS 4624 C001
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Spark a Revolution Overview
 Chapter 11
 Pulls the components back together
 Shows how all the parts fit together to create a powerful engine for
innovation
 Recurring theme
 Creativity is not just something you think about
 It is something you do
* inGenius – A Crash Course on Creativity, Tina Seeling
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Identifying Innovation Management
• Concepts for identifying innovation management
• Understand the differences between resources, capabilities and
dynamic capabilities.
• Identify the tangible and intangible resources which contribute
to capabilities.
• Assess how capabilities contribute to competitive advantage.
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Capabilities, Resources, Core
Competencies
 Capabilities refer to the organization's potential for doing, or carrying
out a specific activity or set of activities.
 Such capabilities tend to consist of a combination or configuration of
resources.
 Core competencies feed into more than one core product, which in
turn feed into more than one business unit. The metaphor of the tree
can be used here:
End products = Leaves, flowers and fruit
Business units = Smaller branches
Core products = Trunk and major limbs
Core competencies = Root systems
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Capabilities, Resources, Core
Competencies
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Dynamic Capabilities
 Dynamic capabilities include:
 Abilities to improve, adapt, and innovate.
 Dynamic capabilities are dedicated to the modification
of operational capabilities and lead, for example, to
changes in the firm's products or production processes.
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Hierarchy of Competencies
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Dynamic Capabilities
 David Teece’s original definition as ‘the firm’s ability to
integrate, build, and reconfigure internal and external
competences to address rapidly changing environments’.
 However, it is rather broad and difficult to operationalize.
 More useful is to ask “what does dynamic capability do?”
 For example:
•
•
•
Sensing opportunities and threats;
Absorptive and adaptive capability;
Enhancing, combining, protecting, and, when necessary,
reconfiguring tangible and intangible and tangible resources.
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Identifying Capabilities
 One of the most difficult challenges in practice it to
identify capabilities. A framework to help here consists of
three parts:
• Identifying the key attributes of the most successful products and
services offered by the organization;
• Mapping these attributes to the resources or competencies of the
organization, including tangible and intangible resources;
• Assessing the potential for sustaining, protecting and exploiting these
resources, including knowledge management.
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Identifying Key Attributes
 Three conditions are necessary for an organization to sustain a
competitive advantage:
•
Customers must perceive a consistent difference in important attributes
between the producer’s product/service and the attributes offered by
competitors;
•
This difference is the direct consequence of a capability gap between
the producer and its competitors;
•
Both the difference in important attributes and the capability gap can be
expected to endure over time.
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Four Types of Attributes
 Regulatory: the possession of legal entities, e.g. patents &
trademarks.
 Positional: the results of previous endeavour, e.g. reputation, trust,
value chain configuration
 Business systems: the ability to do things well, e.g. consistent
conformance to specification
 Organizational characteristics, e.g. the ability to manage change.
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Mapping Attributes to Resources &
Competencies
 The important characteristics of strategic
competencies are:
• They are responsible for delivering a significant benefit to
customers;
• They are idiosyncratic to the firm;
• They take time to acquire;
• They are sustainable because they are difficult and time
consuming to imitate;
• They comprise configurations of resources;
• They have a strong tacit content and are socially complex –
they are the product of experiential learning.
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Capability Classifications
 Regulatory capability – resources which are legal entities:
 Tangible, on balance sheet, assets
 Intangible, off balance sheet, assets:
e.g. Patents, Licenses, Trademarks, Contracts, Protectable data, etc.
 Positional capability – resources which are not legal entities and
which are the result of previous endeavor, i.e. with a high path
dependency:
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Reputation of company
Reputation of product
Corporate networks
Personal networks
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Unprotectable data
Distributed network
Supply chain network
Formal and informal operating systems
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Capability Classifications
 Functional capability – comprises resources which are either
individual skills and know-how or team skills and know-how,
within the company, at suppliers, or at distributors etc.:
• Employee know-how & skills in:
 - Operations;
 - Finance;
 - Marketing;
 - R & D etc.;
• Supplier know-how;
• Distributor know-how;
• Professional advisors expertise, etc.
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Capability Classifications
 Cultural capability – comprises resources which are the
characteristics of the organization:
• Perception of quality standards;
• Tradition of customer service;
• Ability to manage change;
• Ability to innovate;
• Team working ability;
• Ability to develop staff, suppliers and distributors;
• Automatic response mechanisms.
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Capturing Values
 Nine factors which influence the firm’s capacity to
benefit commercially from its capabilities:
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1.
2.
3.
4.
5.
6.
7.
8.
9.
Secrecy.
Accumulated tacit knowledge.
Lead times and after-sales service.
The learning curve.
Complementary assets.
Product complexity.
Standards.
Pioneering radical new products.
Strength of patent protection.
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Summary
 Resources can be tangible or intangible, including:
 Tangible - Assets, plant and equipment, and location,
 Intangible - such as employee skills and intellectual property.
 Capabilities are more functional than resources, and by definition are
rare combinations of resource which are difficult to imitate and
create value for the organization.
 Dynamic capabilities allow organizations to adapt, innovate and
renew, and are therefore critical in conditions of uncertainty and for
long-term growth.
 Capabilities create value and contribute to competitiveness a number
of ways, including the ability to differentiate processes and products
which are difficult to imitate.
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Leadership and Organization of Innovation
 Understand how the leadership and organization of
innovation is much more than a set of processes, tools
and techniques, and the successful practice of innovation
demands the interaction and integration of three different
levels of management, individual, collective and climate.
 At the Personal or individual level, understand how different leadership
and creative styles influence the ability to identify, assess and develop new
ideas and concepts.
 At the Collective or social level, identify how teams, groups and processes
each contribute to successful innovation behaviors and outcomes.
 At the Context or Climate level, assess how different factors can support
or hinder innovation and entrepreneurship.
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The Innovative Organization
Research shows these factors are associated with good
performance:
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The Innovative Organization
*TIDD & BESSANT STRATEGIC INNOVATION MANAGEMENT, JOHN WILEY AND SONS 2014
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Innovative Leadership
 Reviews of research on leadership and performance
suggest leadership directly influences:

Around 15% of the differences found in performance of businesses;

Contributes around an additional 35% through the choice of business
strategy;

So directly and indirectly leadership can account for half of the variance
in performance observed across organizations.
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Leadership Traits for Innovative
Organizations
 Fundamental characteristics for effective
leadership
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Bright, alert and intelligent
Seek responsibility and take charge
Skillful in their task domain
Administratively and socially competent
Energetic, active and resilient
Good communicators
 This is not inclusive – studies on leadership are
another complete subject
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Key Factors for Implementing Innovation
 Innovation policy must be established
 Flowed down through organization and fully supported by all levels of
leadership
 Employees are recognized for positive innovative behavior
 Teams/Team Development
 Diversity is key to promoting innovation
 Balance of diversity is important as well to promote discussion and
interaction
 Leadership Approach
 Promote effective team interaction
 Respectful, positive, emotional stability
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Key Factors for Implementing Innovation

Physical Space/Autonomy
 Teams are more effective when they have a specific logistical space for
idea generation and creative problem solving
 Teams need to be allowed the time away from normal duties to engage in
innovative endeavors; management support
 Set specific durations for each phase of the Innovation process,
particularly the implementation phases
 Provides guidelines and sets expectations
 Protects against the proverbial ‘polishing the stone’ approach whereby the
team never comes up with answers or decisions
 Monitoring
 Important for team leads to monitor and evaluate the innovation process
along the way to ensure expectations remain on track.
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Innovation – Collective and Social
Perspectives
 Some of the key elements in developing effective, high-performing
teams:
 Provide clearly defined tasks and objectives
 Ensure effective team leadership
 Provide balance in team roles, make sure to match individual
behavioral styles
 Conflict resolution mechanisms should be in place and understood
 Continued communication and liaison activities are maintained
with external stakeholders
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Team Model Development Stages
 Four typical stages of team formulation:
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Forming
Storming
Norming
Performing
 This model was developed by Dr. Bruce Tuckman in 1965; he added
‘Adjourning’ in the 1970s.
 Designed to demonstrate how a team develops, matures, and
performs through a life cycle.
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Team Model Development Stages
 Stage 1 – Forming
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High dependency on the team leader for guidance/direction
Roles/responsibilities unclear
Team members not aligned on team objectives
Minimal/no processes
Team members test leader
 Stage 2 – Storming
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Team members vie for position
Clarity of purpose evolving
Power struggles apt to develop as factions/cliques align with each other
Team needs focus on goals; compromises may be required to progress
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Team Model Development Stages
 Stage 3 – Norming
 Team begins to agree and come to concensus on large and small decisions
 Roles/responsibilities are clear and accepted
 Team has strong levels of commitment and unity; may engage in social, fun
activities
 Processes and work-style have developed
 Leader is respected by team; team members assume some leadership
roles
 Stage 4 – Performing
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Strategic awareness among team; clear objectives and execution
Leadership role minimized; high degree of autonomy
Internal problem resolution in positive manner
Team cohesiveness between members
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Team Model Development Stages
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Context/Climate
•
Climate can be defined as the recurring patterns of behavior;
attitudes and feelings that characterize what life is like in the
organization.
•
Includes perceptions that are objectively shared characterizing life within
a defined work unit or in the larger organization.
•
Climate is distinct from culture in that it is more observable at a surface
level within the organization and more amenable to change and
improvement efforts.
•
Culture refers to the deeper and more enduring values, norms and beliefs
within the organization.
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Summary
 Leadership and organization of innovation is much more
than a set of processes, tools and techniques.
 The successful practice of innovation demands the
interaction and integration of three different levels of
management, individual, collective and climate.
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Innovative Sustainability
 Sustainability creates certain challenges for innovation
 Different types of innovation can contribute to improve sustainability
 A model framework for positioning sustainability-led innovation at 3
levels addresses:
 Doing what we do better
 Opening up new opportunity at the enterprise level
 System level change
 Key issues in moving toward sustainability-led innovation
 Certain tools can help along the journey
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Exploring Innovative Space
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Examples of Sustainability – Led
Innovation
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New Business Sustainability Model
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Examples of
Operational Optimization
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Examples of Systems Change
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Innovation Management Challenges
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Examples of Innovation
Management Challenges
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Sustainability Summary
•
Sustainability is becoming a key factor in innovation,
representing both a significant threat and an
opportunity.
•
Sustainability-led innovation (SLI) invokes changes across
the ‘innovation space’ – in products/services, in
processes, in positions and in paradigms.
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Summary
• SLI (Sustainability-Led Innovation) can involve
incremental improvements – ‘do better’ – and
more radical changes. We have explored a model
which maps the nature of SLI into three areas:
• Operational optimization
• Organizational transformation
• Systems building.
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Summary
•
•
•
•
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SLI poses challenges across the innovation process model
How we search, select and implement.
In particular, working at the higher levels of the model,
towards organizational transformation and systems building
will require developing new routines.
Part of the dynamic capability challenge in dealing with
SLI
Introduce some elements of a ‘responsible innovation’
framework to our decision-making around innovation
selection and implementation.
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