This document summarizes a presentation on innovation and hypercompetitive markets. The presentation covers 7 topics: 1) globalization and hypercompetition, 2) business in hypercompetitive markets, 3) definitions of innovation, 4) how companies can work with innovation, 5) common gaps in corporate innovation efforts, 6) how to make corporate innovation work, and 7) the innovation navigator tool. The presentation uses examples like Lego, Apple, Nokia, and IBM to illustrate challenges of hypercompetition and importance of continuous innovation.

1. This document is solely for the use of the receiver. No part of it may be circulated, quoted, or
reproduced for
distribution outside the receivers organisation without prior written approval from Bearing Consulting
Ltd.
Innovation and the dynamics of the
markets
Universitat Politécnica de Catalunya, 24 May 24 2013
“..because the execution of an idea is always more
important
than the brilliance of the thought..”
(Harvard Business Publishing – Morgan, Levitt & Maleck – INVEST model)

2. 2
Jörgen Eriksson, Founding Partner
in Bearing and adjunct Professor of Innovation
Management at the International University of
Monaco, resides in France and consults
internationally.
Has since 1995 led and participated as expert in
a large number of projects related to innovation
systems, business development, restructuring
and R&D in Europe, Africa, the Middle East and
the United States.
Presenting today

3. 3
Places where we have worked

4. 4
1. Globalisation and Hyper Competition
2. Business in Hyper Competitive Markets
3. What do we mean with Innovation?
4. How can we work with Innovation?
5. Corporate Innovation and common gaps
6. How to make Corporate Innovation work
7. The Innovation Navigator
Agenda

5. 5
Two important articles
Todays seminar

6. This document is solely for the use of the receiver. No part of it may be circulated, quoted, or
reproduced for
distribution outside the receivers organisation without prior written approval from Bearing Consulting
Ltd.
Globalisation and Hyper Competition

7. Sub heading
7
The innovation system
We live in hypercompetitive global
markets
Hyper competition

8. 8
Why hyper competition?
• Globalisation – less trade barriers and efficient transport (e.g. containers)
• Speed of hyper connected communication and the pace of modern
business
• Disruptive Technologies
A new technology that has a serious impact on the
status quo and changes the way people have been
dealing with something, perhaps for decades
Some drivers of hyper competition

9. Sub heading
9
European Union growth rates since 2001
Source: The Economist

10. Sub heading
10
Worlds fastest growing economies
Source: The Economist

11. This document is solely for the use of the receiver. No part of it may be circulated, quoted, or
reproduced for
distribution outside the receivers organisation without prior written approval from Bearing Consulting
Ltd.
Business in hyper competitive markets

12. 12
Corporate world dominance
In the year 1994, Motorola was world leader in (analogue)
mobiles,
seven years later Nokia was world leader in (digital) mobiles
0%
10%
20%
30%
40%
50%
60%
Market shares 1994 Market Shares 2001
Motorola
Nokia

13. 13
From #1 to crises in less than three years…
Why ?
Nokia share price

14. 14
Apple stock price down more than 40%

15. 15
“Either you innovate or you’re in commodity hell. If you
do what everyone else does, you have a low-margin
business. That’s not where you want to be.”
Sam Palmisano, former CEO IBM
Hyper competition

16. 16
“Managing innovation better may be the only way out of
the abyss called commodity hell”
Jeffrey R. Immelt, CEO General Electric
Hyper competition

17. This document is solely for the use of the receiver. No part of it may be circulated, quoted, or
reproduced for
distribution outside the receivers organisation without prior written approval from Bearing Consulting
Ltd.
What do we mean with innovation?

18. 18
What is Innovation?
The literature
is not giving
us a
consistent
definition

19. 19
Innovation is creative destruction, where
entrepreneurs combine existing elements in
new ways…
After Joseph Schumpeter (1883 – 1950)
The definition

20. 20
En definition...
Innovation versus Invention

21. 21
Train Car Airplane
Innovation ?
”Invention” => Innovation => Effect (Globally)
What is Innovation?
Innovation can be incremental or disruptive / radical

22. 22
Types of innovation

23. This document is solely for the use of the receiver. No part of it may be circulated, quoted, or
reproduced for
distribution outside the receivers organisation without prior written approval from Bearing Consulting
Ltd.
How can we work with innovation?

24. 24
Innovation across the business system
Product &
Services
Business
Model
Delivery &
Supply Chain
Operation
Sales &
Marketing

25. 25
From “hard” to “soft” factors

26. 26
Does Harley-Davidson sell motorcycles?

27. 27
Does Harley-Davidson sell motorcycles?
“…what we sell is the ability
for a 43-year-old accountant
to dress in black leather,
ride through small towns
and have people be afraid
of him“
– an HD executive

28. 28
The Lego Story
Y2000 "Toy of the
Century" by
Fortune magazine
and the British
Association of Toy
Retailers
Y2003 – 2004
Huge losses, close
to bankruptcy
Y2004-03, the
owner & CEO
Kjeld Kirk
Kristiansen decide
to go back to
basic!
Y2004-10, Jørgen
Vig Knudstorp
appointed as new
CEO

29. 29
The Lego Story
 The situation 2004
Demand decreasing, competition from games,
movies, merchandising
Poor quality
Poor logistics
Slow in adoption
Simplistic leadership and laid-back culture
Sources: HBR, DN, Guardian, BBC, Handouts European Offshoring Summit, (2009, Copenhagen)

30. 30
The Lego Story
Improve the
business
Stabilize
operations
Organic
growth
Restore the
balance sheet
Define
Raison d'être
Value Creating
Partnership
Deliver what
we promise
Differentiated
Value Chain
Consumer Driven
Value Chain
Rigid Execution
Platform
-1800
-800
200
1200
2200
2003 2004 2005 2006 2007 2008
Operational
Profit
MDK
Year
Innovate Execute
Offshoring

31. 31
Lego – key achievements
Clear Raison d'être: “we help children learn systematic and creative
problem solving—a crucial twenty-first-century skill”
Gained consumer insights through “direct sales to consumers”
through BuiltByMe without competing with existing distribution
channel
Co-Branding with strong and selected partners such as Star wars
and Harry Potter

32. 32
Lego – key achievements
Reduced lead time, 45 to 3 days to
store
Cost saving through offshoring non-
core competencies
A new supplier interface
QA system in place
Open Innovation, 120,000 people
involved in external innovation work –
DesignByMe, DreamtByMe,
BuildByMe
Community driven approach; the open
platform Mindstorm encouraging
customers to design and develop their

33. 33
Lego total innovation makeover
Supply Chain
Business Model
Marketing
Customer
Engagement
Services
Brand
Product
Partner Model
...and LEGO continues to deliver exceptional profitable growth on
an oligopolistic/niche and international toy market...
Internal Innovation
External Innovation

34. 34
Lego continues to innovate
Yesterday in California…

35. This document is solely for the use of the receiver. No part of it may be circulated, quoted, or
reproduced for
distribution outside the receivers organisation without prior written approval from Bearing Consulting
Ltd.
Corporate Innovation
and common gaps

36. 36
The S-curve
Emergent Growth Mature
Performance
/
Value
offering
Effort / Time
Business of the future
(EXPLORATORY)
Ongoing business
(EXPLOITATIVE)
Source: Tovstiga (2007)

37. 38
Siemens Corporate Innovation Process (CIP)

38. 39
En definition...
Common gaps
1. Framework of reference, lack of common terminology
2. Heads on competition in market. Limited focus on
differentiation
3. Corporate Culture
4. Not allow people time and space to be creative
5. Focus only on exploitative business, not exploratory
6. Creativity killed by process and procedure
7. Too long time to market

39. This document is solely for the use of the receiver. No part of it may be circulated, quoted, or
reproduced for
distribution outside the receivers organisation without prior written approval from Bearing Consulting
Ltd.
How to make corporate innovation work

40. 41
Blue Ocean Strategy
Blue Ocean
Strategy (2004)

41. 42
Blue Ocean Strategy

42. 43
Can You Say What Your Strategy Is?

43. 44
Strategy
The successful growth of a business requires the development
and implementation of a sustainable business strategy.
To do this, we use a methodology we call sweet spot analysis,
where the objective is to work out a complete strategy
statement in 35 words or less.
For a business with several product lines or activities in a
number of different industries, it might be useful to develop one
overall statement and then specific statements for the various
main product lines.
It is important to develop the strategy statement simple, clear
and brief, to ensure that everyone in the business can
internalize and use it as a guiding light.
A well-understood statement aligns behavior within the
business and allows everyone in the organisation to make
individual choices that reinforce one another.
The process to developing a strategy statement is to start with
defining the Mission and then Values end then defining the
Vision as the next important step.

44. 45
Strategy

45. 46
Strategy
The mission statement is your high-minded guiding light and your least
specific. It spells out the underlying motivation for being in the business in
the first place. Firms in the same business often have the same or similar
mission statements.
As you work your way down the hierarchy, the statements become more
concrete, practical, and ultimately unique. No other company will have the
same strategy statement, which defines your competitive advantage.

46. 47
Strategy
A strategy statement consists of three critical components, including objective, scope
and advantage.
1. Any strategy statement must begin with the objective, a definition of the ends that
the strategy is designed to achieve. “If you don´t know where you are going, any
road will take you there” is an appropriate maxim.
2. Since most firms compete in a fairly unbounded landscape, it is also crucial to
define the scope, or domain, being the part of the industry landscape in which the
business will operate. What are the boundaries beyond which it will not venture?
3. The third component is the competitive advantages, which are the essence of
the strategy.

47. 48
Strategy
To define the above requires some critical
decisions and trade-offs that cannot easily be
reversed. The choice of objective will have a
profound impact.
As regards the scope, it encompasses three
dimensions: customer offering, geographic
location and reach and vertical integration.
Clearly defined boundaries in these areas
should make it clear to managers which
activities they should concentrate on and, more
important, which they should not do. This will
help to focus both the business and its
innovation development.

48. 49
Strategy
Then, given that sustainable competitive
advantages are the essence of strategy, it
should be no surprise that competitive
advantage is the most critical aspect of a
strategy statement.
Clarity is the point that will help employees
in understanding how they can contribute
to its successful execution.
The complete definition of a business
competitive advantage consists of two
parts.
The first is a statement of the customer
value proposition and the second is to
capture the unique activities or the
complex combination of activities that will
allow the business to deliver the customer
value proposition.

49. 50
Strategy
To develop the strategy statement, the first
step is to make a careful evaluation of the
industry landscape.
This includes developing a detailed
understanding of customer needs, segmenting
customers and then identifying the unique
ways of creating value for the ones the
business choses to serve.
It also calls for an analysis of competitors’
current strategies and a prediction of how they
might change in the future.
The process must also involve a rigorous,
objective assessment of the firm’s capabilities
and resources and those of competitors.
In Bearing we have a product we call the
Innovation Navigator that we use to assess
an organizations innovation capabilities.

50. 51
Strategy
The creative art of developing strategy is finding
the sweet spot that aligns the business
capabilities with customer needs in a way that
competitors (with their current capabilities)
cannot match.
There would be no point of competing in the
intersecting triangle of all three circles
above(however this is what many companies
tend to do, keeping them in a low margin
business).
The process of developing the strategy and then crafting the
strategy statement that captures its essence in a readily
communicable manner should involve employees in all parts of
the business and at all levels of the hierarchy.
The wording of the strategy statement should be worked through
in painstaking detail.
The end result should be a brief statement with a maximum of 35
words that reflects all the three elements of objective, scope and
competitive advantages.

51. 52
Sweetspot analysis
Customers’
needs
Competitors’
offerings
Company’s
capabilities
Sweet
Spot
Context (technology,
industry, regulatory, etc.)
Where your firm meets
customers needs in a
way in which your
competitors cannot
What?
Where?
Why?
How?
1
2
3
Sweet spot = unique spot
How to protect/define boundary 1,2,3
llis & Rukstad (2008). Can You Say What Your Strategy Is?, HBR (April 2008)

52. 53
Your Sweet Spot Defines Your Future Success
Customers’
needs
Competitors’
offerings
Company’s
capabilities
Sweet
Spot
Context (technology,
industry, regulatory, etc.)
Where your company
meets customers
needs in a way in
which your competitors
cannot
What?
Where?
Why?
How?
1
2
3
Sweet spot = unique spot
How to protect/define boundary 1,2,3
llis & Rukstad (2008). Can You Say What Your Strategy Is?, HBR (April 2008)
First
DIFFERENTIATE
from competitors

53. 54
Your Sweet Spot Defines Your Future Success
Customers’
needs
Competitors’
offerings
Company’s
capabilities
Sweet
Spot
Context (technology,
industry, regulatory, etc.)
Where your company
meets customers
needs in a way in
which your competitors
cannot
What?
Where?
Why?
How?
1
2
3
Sweet spot = unique spot
How to protect/define boundary 1,2,3
llis & Rukstad (2008). Can You Say What Your Strategy Is?, HBR (April 2008)
THEN expand border 3 north
toward customer needs

54. 55
Innovation Capabilities
Innovation Capabilities
- Determines how well you will succeed with your innovation efforts
Examples:
• Personas
• Knowledge
• Team structure
• Tools
• Processes.
The most successful companies are those that focus on
a particular, narrow set of common and distinct
capabilities that enable them to better execute their
chosen strategy.

55. 56
The 12 Different Ways for Companies to Innovate

56. 57
The Innovation Radar
Wolcott, Lippitz, “Grow from Within”

57. 58
Offerings
Offerings are a firm’s products and services.
Innovation along this dimension requires the creation of new products
and services that are valued by customers.

58. 59
Platform
A platform is a set of common components, assembly methods or
technologies that serve as building blocks for a portfolio of products or
services.
Platform innovation involves exploiting the “power of commonality” —
using modularity to create a diverse set of derivative offerings more
quickly and cheaply than if they were stand-alone items.
Innovations along this dimension are
frequently overlooked even though
their power to create value can be
considerable.

59. 60
Solutions
Solutions A solution is a customized, integrated combination of
products, services and information that solves a customer problem.
Solution innovation creates value for customers through the
breadth of assortment and the depth of integration of the different
elements.

60. 61
Customers
Customers are the individuals or organizations that use or consume
a company’s offerings to satisfy certain needs.
To innovate along this dimension, the company can discover new
customer segments or uncover unmet (and sometimes unarticulated)
needs.
Compare – Blue Ocean Strategy

61. 62
Customer Experience
Customer Experience This dimension considers everything a customer
sees, hears, feels and otherwise experiences while interacting
with a company at all moments.
To innovate here, the company needs to rethink the interface between
the organization and its customers.

62. 63
Value Capture
Value Capture refers to the mechanism that a company uses to
recapture the value it creates.
To innovate along this dimension, the company can discover untapped
revenue streams, develop novel pricing systems and otherwise expand
its ability to capture value from interactions with customers and partners.

63. 64
Processes
Processes are the configurations of business activities used to
conduct internal operations.
To innovate along this dimension, a company can redesign its processes
for greater efficiency, higher quality or faster cycle time. Such changes
might involve relocating a process or decoupling its front-end from its
backend.

64. 65
Organization
Organization is the way in which a company structures itself, its
partnerships and its employee roles and responsibilities.
Organizational innovation often involves rethinking the scope of the firm’s
activities as well as redefining the roles, responsibilities and incentives of
different business units and individuals.

65. 66
Supply Chain
Supply Chain A supply chain is the sequence of activities and
agents that moves goods, services and information from source
to delivery of products and services.
To innovate in this dimension, a company can streamline the flow of
information through the supply chain, change its structure or enhance the
collaboration of its participants.

66. 67
Presence
Presence Points of presence are the channels of distribution that
a company employs to take offerings to market and the places
where its offerings can be bought or used by customers.
Innovation in this dimension involves creating new points of presence or
using existing ones in creative ways.

67. 68
Networking
Networking A company and its products and services are connected
to customers through a network that can sometimes become part of the
firm’s competitive advantage.
Innovations in this dimension consist of enhancements to the network
that increase the value of the company’s offerings.

68. 69
Brand
Brand are the symbols, words or marks through which a company
communicates a promise to customers.
To innovate in this dimension, the company leverages or extends its
brand in creative ways.

69. 70
The twelve dimensions of innovation

70. This document is solely for the use of the receiver. No part of it may be circulated, quoted, or
reproduced for
distribution outside the receivers organisation without prior written approval from Bearing Consulting
Ltd.
The Innovation Navigator Framework

71. 72
...the navigator
Bearing Innovation Navigator
Initiated by the work of Sawhney, M., Wolcott, R. C., & Arroniz, I. (2006). The 12 Differetnt Ways for Companies to
Innovate. MIT Sloan Management Review , 75-81.

72. 73
Comparisons
Bearing Innovation Navigator

73. 74
Innovation framework
Why
Strategic question
Profit / Market share
Company Strategy
•Incremental/
Disruptive
•Need seekers
•Market readers
•Technology drivers
What
Type of innovation
Product Innovation
Process Innovation
Organisational Innovation
Management Innovation
Production Innovation
Commercial/Marketing
Innovation
Service Innovation
How
Style
•Cauldron
•Spirale
•Fertile
•PacMan
•Explorer
People
•10 Faces of Innovation
Capability & Process
•Ideation
•Project selection
•Product development
•Commercialisation
Source: Penker (2011)

74. 75
Why – Strategic Question
?
Strategic
Question
Increase barriers to enter or copy
Differentiation and neutralization of
competitors
Focus on competitive advantages
Building the capabilities to increase
the internal efficiency
Cost savings
Disruptive opportunities
To keep competitors
out keeping/gaining
market shares?
To increase the profit ?

75. 76
How – Style & People
“The Devil´s Advocate may never go away, but on a good day, the ten
personas can keep him in place” (Kelly & Littman, 2005)
Source: Kelly & Littman (2005)
Learning
personas
Anthropologist
Experimenter
Cross-Pollinator
Organisational
personas
Hurdler
Collaborator
Director
Building
personas
Experience
Architect
Set Designer
Storyteller
Caregiver

76. 77
What – Types of Innovation
• Creating or reinventing the business in itself
Business model
• Changing the organisational structure, in its business
practice, workplace organisation or external relations
Organisational
structure
• Creation of better or more efficient internal processes
Processes
• Improve the production stream and business methods
Production
• Development of new or improved products
Products
• Development of new or improved services
Services
• Development or implementation of more efficient or
better management systems
Management
systems

77. 78
4. Cultural Management
Example of a Cultural Management process:
Define the
culture
needed to
support
long term
success
”Desired
Culture”
Identify the
current
culture
Identify and
analyse
gaps
between
the current
culture and
desired
culture
Develop a
culture
manageme
nt plan
Implement
and
communicat
e
Monitor the
process

78. 79
Innovation style
• An entrepreneurial
style where the
business model is
constantly challenging
and is frequently
challenged
The Cauldron
• A style where you are
constantly innovating
the existing business
and it over time
changes its nature.
While it seems to stay
in the same place.
The Spiral
Staircase
• A style where the
organisation tries to
use existing
capabilities and
resources in a new
way beyond the
company’s existing
operations.
The Fertile Field
• A style where you
invest in start ups that
have already done
the strategy
development and
R&D
The PacMan
• A style where you
explore possibilities
and invest time and
money in them
without demanding
short-term profit
The Explorer
Source: Loewe, Williamson and Wood
(2001)

79. 80
The Innovation Personas
Source: Kelly and Littman (2005)
The world is changing at an accelerating
speed and these personas are needed to
help teams from becoming too internally
focused.
Learning
Personas
• The Anthropologist
• The Experimenter
• The Cross-Pollinator
Enables the ideas to move forward in the
organisation as even the best ideas must
compete got time, attention and
resources.
The Organising
Personas
• The Hurdler
• The Collaborator
• The Director
The building roles apply insights from the
learning roles and channel the
empowerment from the organising roles
to make innovation happen.
The Building
Personas
• The Experience Architect
• The Set Designer
• The Storyteller
• The Caregiver

80. 81
How – Capabilities & Process
Ideation
Supplier and
distributor
engagement in
ideation process
Independent
competitive insights
from the marketplace
Open
innovation/capturing
ideas at any point in
the process
Detailed
understanding of
emerging
technologies and
trends
Deep consumer and
customer insights and
analytics
Project
Selection
Strategic disruption
decision making and
transition plan
Technical risk
assessment/manage
ment
Rigorous decision
making around
portfolio trade-offs
Project resource
requirement
forecasting and
planning
Ongoing assessment
of market potential
Product
Development
Reverse engineering
Supplier–partner
engagement in
product development
Design for specific
goals
Product platform
management
Engagement with
customers to prove
real-world feasibility
Commercializa
tion
Diverse user group
management
Production ramp-up
Regulatory/governme
nt relationship
management
Global, enterprise-
wide product launch
Product life-cycle
management
Pilot-user
selection/controlled
rollouts
Source: Jaruzelski & Dehoff (2010)

81. This document is solely for the use of the receiver. No part of it may be circulated, quoted, or
reproduced for
distribution outside the receivers organisation without prior written approval from Bearing Consulting
Ltd.
Innovation Navigator project for Polyamp

82. Innovation Navigator project for Polyamp

83. 84
Client Involvement
•In-depth interviews interviews with key stakeholders
•Survey: Capturing imperatives of the business, scoping
the case
•Survey: Capture strategies, weaknesses, market
structures, key drivers
•Internal and external communication / enrolment
•Presentation with recommendations
Analysis process
•Hypothesis
•Internal and external data collection (survey)
•Generating relevant benchmark data and innovation
patterns
•Analysis
•Strategic options generation
•Evaluation and conclusions
•Recommendations
Innovation Navigator project process

84. 85
CEO Meeting
Innovation
Audit (4
weeks)
Presentation &
Recommendation
(1/2 day)
Implement
Innovation
Game Plan
(30-60
weeks)
6-8 weeks
Next step

85. Incremental need seeking, explorer style
firm, innovating products, production and
processes to increase market share.
Polyamp Innovation Navigator classification

86. 87
Innovation framework
Why
Strategic question
Profit / Market share
Company Strategy
•Incremental/
Disruptive
•Need seekers
•Market readers
•Technology drivers
What
Type of innovation
Product Innovation
Process Innovation
Organisational Innovation
Management system
Innovation
Production Innovation
Service Innovation
Business model
How
Style
•Cauldron
•Spirale
•Fertile
•PacMan
•Explorer
People
•10 Faces of Innovation
Source: Penker (2011)

87. 88
Strategic Question
?
Strategic
Question
Increase barriers to enter or copy
Differentiation and neutralization of
competitors
Focus on competitive advantages
Building the capabilities to increase
the internal efficiency
Cost savings
Disruptive opportunities
To keep competitors
out keeping/gaining
market shares?
To increase the profit ?

88. 89
Innovation Strategy
Need seekers
• Actively and directly
engage current and
potential customers to
shape new products and
services based on
superior end-user
understanding, and strive
to be the first to market
with those new offerings.
Market readers
• Watch their customers
and competitors carefully,
focusing largely on
creating value through
incremental change and
by capitalizing on proven
market trends.
Technology drivers
• Follow the direction
suggested by their
technological capabilities,
leveraging their
investment in research
and development to drive
both breakthrough
innovation and
incremental change, often
seeking to solve the
unarticulated needs of
their customers via new
technology.
Source: Jaruzelski and Dehoff (2007)

89. 90
Type of Innovation
• Incremental innovations – Changes made in small steps
vs.
• Disruptive innovations – Radical changes
Incremental vs. Disruptive

90. 91
Dimensions of Business Innovation
• Creating or reinventing the business in itself
Business model
• Changing the organisational structure, in its business
practice, workplace organisation or external relations
Organisational
structure
• Creation of better or more efficient internal processes
Processes
• Improve the production stream and business methods
Production
• Development of new or improved products
Products
• Development of new or improved services
Services
• Development or implementation of more efficient or
better management systems
Management
systems

91. 92
Innovation style
• An entrepreneurial
style where the
business model is
constantly challenging
and is frequently
challenged
The Cauldron
• A style where you are
constantly innovating
the existing business
and it over time
changes its nature.
While it seems to stay
in the same place.
The Spiral
Staircase
• A style where the
organisation tries to
use existing
capabilities and
resources in a new
way beyond the
company’s existing
operations.
The Fertile Field
• A style where you
invest in start ups that
have already done
the strategy
development and
R&D
The PacMan
• A style where you
explore possibilities
and invest time and
money in them
without demanding
short-term profit
The Explorer
Source: Loewe, Williamson and Wood
(2001)

92. 93
Innovation Capabilities
Innovation
Capabilities
- Determines how well you
will succeed with your
innovation efforts
The most successful companies are those that focus
on a particular, narrow set of common and distinct
capabilities that enable them to better execute their
chosen strategy.
Examples: personas, knowledge, team structure,
tools, and processes

93. 94
Innovation Capabilitites
Products:
•Polyamp has a documented process in place to design, test
and launch new products.
•Innovates products.
•Innovates production and logistics.
Processes:
•Polyamp has effective product management systems in place.
•There is a testing methodology in place so that errors are
identified and addressed early in the process.
Learning Capabilities:
•Employees learn from each other and the customers.
•The organisation learns from its mistakes.
Perceived Strengths

94. 95
Innovation Capabilitites
Organisation:
•Lack of goal-oriented leadership style.
•There is no internal reward system in place for the innovation
work.
•Polyamp does not have a systematic way of looking for new
talent that can contribute to its development.
Learning Capabilities:
•Polyamp does not measure and systematically evaluate its
innovation efforts.
Customers:
•There are no anthropologists in the company, i.e. there is no
one studying customers actual behaviour. Also, there are no
independent market research taking place.
Possible Weaknesses

95. 96
Innovation Capabilities
There are ten typical personas needed to drive creativity through an
organisation. The idea behind The 10 Faces of Innovation is to create a
climate and culture stimulating innovative working, from idea to results. One
person might have one or several personas and the important thing is to make
sure all profiles are present within an organisational context to stimulate and
support the innovation processes.
IDEO’s10 Faces of Innovation

96. 97
The
Anthropologist
The Experimenter
The Cross-
Pollinator
The Hurdler
The
Collaborator
The Director
The Expertence
Architect
The Set Designer
The Storyteller
The Caregiver
10 Faces
Innovation Capabilities
We are all a blend of personas (or roles) where some can be stronger than
others…

97. 98
The 10 Faces of Innovation
The world is changing at an accelerating speed and these
personas are needed to help teams from becoming too internally
focused.
Learning Personas
• The Anthropologist
• The Experimenter
• The Cross-Pollinator
Enables the ideas to move forward in the organisation as even the
best ideas must compete got time, attention and resources.
The Organising
Personas
• The Hurdler
• The Collaborator
• The Director
The building roles apply insights from the learning roles and
channel the empowerment from the organising roles to make
innovation happen.
The Building
Personas
• The Experience Architect
• The Set Designer
• The Storyteller
• The Caregiver
Source: Kelly and Littman (2005)

98. 99
The Anthropologist
The Anthropologist
• Brings new learning and insights into the
organisation by observing human behaviour and
developing a deep understanding of how people
interact physically and emotionally with products,
services and spaces.
• Practices the principle of ”beginner’s mind” and
are able to observe with an open mind.
• Embraces human behaviour and empathize
without judgement.
• Listens to their intuition.
• Writes down things that surprises them.
• Looks for insights where they are least expected.
Typical anthropologists:
- Background in Social science, such as
psychology, linguistics and anthropology.
- People with informed intuition or ”deep smarts”.
The real act of discovery consists not
in finding new lands, but seeing with
new eyes.
- Marcel Proust

99. 100
The Cross-Pollinator
Leave the beaten track
occasionally and dive into the
woods. Every time you do so,
you will be certain to find
something that you have
never seen before.
– Alexander Graham Bell
Encourage cross-pollination by:
• Hires people with diverse
backgrounds.
• Uses the work space to form
multidisciplinary teams.
• Takes inspiration from outside thinkers
and ”know how” speakers.
• Looks for the t-shaped people; those
who have a breadth of knowledge in
many fields and in depth expertise in
at least one area.
The Cross-Pollinator
• Explores other industries and cultures,
then translates those findings and
revelations to fit the unique needs of their
organisation.
• Can create something new and better
through the unexpected juxtaposition of
seemingly unrelated ideas or concepts.

100. 101
The Hurdler
The Hurdler
• Knows the path to innovation is strewn with
obstacles and develops a knack for overcoming
or outsmarting those roadblocks.
• Gets a charge out of trying to do something that
has never been done before.
We choose to go to the
moon in this decade and
do the other things, not
because they are easy,
but because they are
hard.
- John F. Kennedy
5/25/61
• Does more with less.
• Risk-takers that show determination.
• Their optimism and perseverance can help big
ideas upend the status quo as well as turn
setbacks into an organisation's greatest
successes.

101. 102
The Director
The Director
• Not only gathers together a talented cast
and crew but also helps to spark their
creative talents.
• Maps out the production and brings out
the best in people.
• Gets things done.
• Gives centre stage to others.
• Gladly step up and lead when need
arises, love finding new projects.
• Rises to tough challenges.
• Lays out goals that may seem impossible
to achieve and shoots for the moon.
• Embraces the unexpected.
I dream for a
living.
- Steven Spielberg

102. Incremental need seeking, explorer style
firm, innovating products, production and
processes to increase market share.
Polyamp Innovation Navigator classification

103. 104
Navigator Footprint

104. 105
Navigator Footprint
Customers = red
Internal = green

105. 106
Navigator Footprint
Customers Sweden= red
Customers interntaional=
green
• International customers see a lack of product
development
• International and Swedish customers agree that
Polyamp could be better at clarifying its advantage over

106. 107
Navigator Footprint
Employees = red
Management =
green

107. 108
INNOVATE – EXECUTE™
… the world will never be the same

108. 109
Bearing on the web
Bearing has a blog with
an active debate
blog.bearing-consulting.com
Read more about what we
do on the Bearing homepage
www.bearing-consulting.com