1. Objective
A Brief Introduction to:
Innovation Management
Target Audience
Notice
 This is an individual opinion irrelevant of GE
strategy either globally or locally.
 Some of the materials used in this slide are
copyright protected. Please keep it internally.

2. Innovation Management
RECAP - Why Innovation?
 Differentiator thus Growth Driver (vs. Saving)
 Long-Term Sustainability Driver vs. Short-Term
Spoke
“Business has only two basic functions-
marketing and innovation.”
- Peter Drucker

3. Innovation Management
RECAP - Why Innovation?
 Unique Function of Homo Sapiens
 Take Greater Advantage of Human Capital by
Embracing Creativity vs. Sound Operational
Device
 Creativity Induces Motivation, thus Performance

4. Innovation Management
RECAP - What is Innovation?
Innovations are "the carrying out of new
combinations." - Joseph Schumpeter
It’s about introducing novel / tweaked values
in society:
 Product / Process / Marketing
 Continual / Non-Continual
 Renovation (Kaizen)

5. Innovation Management
RECAP - 3 Megatrends around Innovation
Industrial / Informational /
Technological Experiential
Closed Open
Commercial Social

6. Innovation Management
Why Innovation Management?
AS-IS TO-BE
 Sole Coincidence  Institutional Control
 R&D’s Responsibility  Everybody’s Responsibility
 Static Budget Allocation  Dynamic Portfolio Mgmt
 Secondary to D2D  Primary Mission of
Operations Company / CEO
 Local Ad Hoc Operation  Designated+Shared Process
by PL / Knowledge
 Product-out  Market-in
 Cost Center Mentality  Profit Center Mentality

7. Innovation Management
Taking Analogy from Governance Model
Ctrl Approach Risk Approach
- Bottom up - Top down
- Authoritative - Strategic
- Thorough - Selective
- Feedback - Feed forward
R&D Innovation
- Technology out - Market in
- Allocation - Investment
- X-Biz Fairness - Weighted

8. Innovation Management
MISSION - Sensor for Megatrends
 Wherever Is beyond Direct Interests
of Day-to-Day Business
 Exploring Deep Implicit Wants

9. Innovation Management
MISSION - Taktstock for Rhythmical Innovation
Opportunity
Search /
Catalog
Gemba Market
Multi-Functional Screening / Matching
Innovation + Biz Ideation
Board
F it
Biz Modeling /
F easible
Pilot Test Needs Seeds
A ttractive
Innovation Fund

10. Innovation Management
MISSION - Feeder to Incubation Pipeline
Assess Design Pilot Scale
Launch Scale
IM Lead BU Lead / IM Consult

11. Innovation Management
MISSION - Support CEO in Building Innovation DNA
 Grow Innovation “neuron” throughout the
Company
 Thoroughly strategize up to embedding in
performance evaluation
 Cultural events for awareness / interest
Open, Creative People / Culture
Strategic Alignment
CEO Commitment

12. Innovation Management
MISSION - Mobilize People and Knowledge
Framework /
Evangelize Motif
R&D Marketing
Suppliers Incentivize
Catalyze
Indirect Manu- Connect
Functions facturing Distributors
Retailers
Consumers
Open, Creative People / Culture
Strategic Alignment
CEO Commitment

13. Innovation Management
TOOLS for Facilitating Innovation
Ideation / Co-creation Facility
(e.g. “Future Center”)
Communication / KM Tools
Professional Facilitators
Crowdsourcing
Innovation Governance
Tools
Market / Customer
Knowledge

14. Innovation Management
Why Designated Innovation Mgmt?
Disruptive Innovations, by its
nature, require good Is a long-term on-going
detachment from existing biz investment vs. short-term
profit making
Involves unique know-hows
(vs. luck) esp. for large entities
with multiple BUs
Requires to fairly represent X-
Implicit view to “Innovation” is business / X-functional stakes
different bet. CEO and
employees
Can embrace merit of scale in
general market research, etc.

15. Innovation Management
Watch-outs
Innovation is FRAGILE!
First candidate for
cost reduction Underlying skepticism
from middle
management
Mixed up with Biz
Planning teams
Occasionally the name is
used for nominal role for
rewarding / rest

16. Innovation Management
Key to Success – Consistent Ecosystem
CEO / Gov’ce Team
Every mgrs / emps with
Struct Innovation Responsibility
Domain
Priorities ure Process & Policy
DO’s / DONT’s Reward & Recog.
KM System
Strate Syste
gy ms
Shared
Open,
Values Trend Sensing
optimistic
leadership Ideation / Modeling
Experiments
Style Skills
Staff
Creative /
Proactive Rcs

17. Innovation Management
… and beyond.
History Economic
System
Culture
Ethnicity
Society
Nationality

18. Innovation Management
IDEAL: Ubiquitous Innovation
 Pervasive
 Bottom-up
 Distributed

19. Disclaimer
 This presentation is the author's personal opinion
and is NOT the representation of his employer or any
organization he is associated with.
 Some of the materials used in this presentation are
(possibly) copy-right protected. Even without any
commercial purpose, please kindly advice if there is
any issue.

20. Author
Shake the World!
Junichi OTAGAKI
Innovation Manager / Social Media Navigator
USCPA
Japanese: @jotagaki
English: @jo_overseas
Thanks to my Innovation Gurus: