Modul 2: Insights

Question 1

1

Answer 1

• An inspiring vision such as that of Whirlpool is required in order to win employees over to the upcoming transformation to innovation machines and to overcome resistance to innovations
• A vision can only inspire if it fulfills certain requirements. Above all, this means that it paints an attractive picture of the future and can be easily communicated.

Question 2

2

Answer 2

• We need both embedment and project goals in order to embed the culture of an innovation machine in the company (see Whirlpool) and to control the specific innovation activity (“You get what you measure”)
• Embedment goals should be defined for both top management and staff levels.
• The order of priority for project goals is: output goals, process goals, input goals.

Question 3

3

Answer 3

• A strategy answers the question where we will “play” and how we are going to win
• Strategy is about making trade-offs, the creation of a unique and valuable position, and about choosing a distinctive set of activities that have a high fit. Southwest Airlines provides a good example.

Question 4

4

Answer 4

• An innovation arena strategy defines and limits the space where we want to “play” and innovate. It fulfills Porter’s first requirement for a good strategy.
• Adjacent arenas of innovation (adjacencies) are generally preferred because they build on existing competencies and therefore reduce the risk
• White spaces are far removed from the company’s current competencies, and it has not yet had any experience with them. They carry a high risk for the company as the Linde case shows. But they may well be already occupied by other companies
• There are four steps to define the innovation arena:
  o Determine position and core competencies
  o Analyse the trends and develop relevant future scenarios
  o Derive a list of possible innovation arenas
  o Undertake a focused selection of the innovation arenas