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The architecture of strategy
& transformation
What…?!?!
.....
Cut costs and
defend the core
business
Let’s analyzeI want to see the financials
Your typical Board of Directors
or Top Managemement teams
Cost-cutting$$$
Transformational
capacity
Legacy core
business
Escape dominant logic1
Design astructure for
transformation
2
3 kinds of innovation ClayChristensen,Harvard
Efficiency-based
innovations
LEAN, Simplify
Cutcosts, Downsizing,
Frees up, preserves capital
STEP: Statoil Technical EfficiencyProgram
Performance –improving
innovations
Improve whatalready is
Product upgrades
Limiteduse of capital
Nordan: Smart Doors
Market-creating
innovations
Create new business models+
Create newcustomers
Putcapital to use
Most valueis created
Shackleton, Zaptec, Lyse Fiber
…most understand …many thinkabout ….few grasp
What leaders do HermanaIbarra,INSEAD
‘’Doer’’
‘’Mobilizer’’
‘’Strategyzers’’
‘’Architects’’
Makinginnovationhappen
RitaMcGrath,Columbia
”The problem is
NOT
new ideas”
The problem is
the system,
processes,
methods, tools
and resource
allocation.
…it’s the HOW
of the
organization
Innovation proficiency
Ideas & Discovery
Idea development
Follow exponential
technologies
Trend hunting
Basic research
Incubation
Incubation
Testing, Prototyping
Market creation
Strategy & business
model experiments
Acceleration
Ramp-up
Scale
Significant
investments
.....runs 2000+business model
experiments peryear
‘’Weplant seeds
that may take
7+ years
to bearfruits’’
‘‘…ifwe needed financial
results in 2-3 years, most
of ourthingswouldnever
havehappened’’
How can youbuild an
architecture of
transformation?
From a singular logic to a system logic
Ideas & Discovery
Idea development
Follow exponential
technologies
Trend hunting
Basic research
Incubation
Incubation
Testing, Prototyping
Market creation
Strategy & business
model experiments
Acceleration
Ramp-up
Scale
Significant investments
M + S + M
M + S + M
Architecture
Money + Structure +
Mandate
Architecture
Money
#1
We have easy access to minor investment funds
for new ideas and new ventures
#2
As a company, we are truly great at making explorative investments
Structure
#3
We have a unit (person, team, department) responsible
for entirely new business development
#4
We have a corporate structure for early ventures, strategy experiments,
growth, spin-ins, spin-outs for new businesses
Mandate
#5
We have an explicit growth ambition from
the Board of Directors and Top Management
#6
We have a license to think big, dream big and take calculated strategic
risks
Transformational
capacity
Legacy core
business
Your turn;
Designing a
transformation
Strategy & innovation cunsulting
company
Contact
www.engage-innovate.com
christian@engage-innovate.com
Twitter: @engageinnovate
Visit us at Innovation Dock

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