7. Leading Innovation:
• Innovation requires orchestration from top
• Business model innovation matters most
• Use technology as an innovation catalyst tied to
business and market insights
• Defy collaboration limits and look outside
the organisation as a source for innovation
• External collaboration is indispensable
– 75% rank it as highly important, but only 50% do it, and
say they do it only “moderately well”!
SOURCE: Expanding the Innovation Horizon: The Global CEO Study, IBM
9. BUSINESS MODEL INNOVATION
• On Extinction Watch List in 1993
• Lou brought in from RJR Nabisco
• Transformed IBM into customer-focused
solution/service provider
• “Culture isn’t just one aspect of the
game – it is the game. In the end, an
organization is nothing more than the
collective capacity of its people to
create value.”
10. BUSINESS MODEL UNNOVATION
2006 Corporate Strategy:
• Close a dozen plants, laying off 30,000
“to establish flexibility to introduce 15
entirely new cars/trucks per year”
• Introduced a dozen “new” gas guzzling
SUVs
• Result: Sales down 8%
• Response: “Red tag sale – $10K off your
next SUV”
• And then… partly closed Saturn (“car of
the future”) plant
“Stupid is as stupid does.”
Forrest Gump