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© Vlerick Business School
Prof Dr Walter Van Dyck
GROWTH THROUGH INNOVATION: POSSIBILITY OR
NECESSITY?
PROF DR WALTER VAN DYCK
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1.
WHY INNOVATE?
Prof Dr Walter Van Dyck
INNOVATION:
THE FOUNDATION FOR GROWTH AND RENEWAL
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© Vlerick Business School
Prof Dr Walter Van Dyck
WHY?
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© Vlerick Business School
Prof Dr Walter Van Dyck
EVERYONE BUYS TABLETS
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© Vlerick Business School
Prof Dr Walter Van Dyck
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2.
SO HOW TO STRATEGICALLY MANAGE
INNOVATION-LED GROWTH & RENEWAL?
KEY PRINCIPLES
Prof Dr Walter Van Dyck
PRINCIPLE #1: MANAGE FOR TRANSIENT (INSTEAD OF
SUSTAINABLE) COMPETITIVE ADVANTAGE
The dominant idea in the field of strategy—that success
consists of establishing a unique competitive position,
sustained for long periods of time—is no longer relevant for
most businesses.
Firms need to embrace the notion of transient advantage
instead, learning to launch new strategic initiatives again and
again, and creating a portfolio of advantages that can be built
quickly and abandoned just as rapidly.
For this to succeed will require a new set of operational
capabilities”
(Rita Gunther McGrath, 2013)
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© Vlerick Business School
Prof Dr Walter Van Dyck
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PRINCIPE #2: MANAGE FOR INNOVATION WITHIN THE
FIRM’S PRESENT AND FUTURE ECOSYSTEM
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© Vlerick Business School
Prof Dr Walter Van Dyck
PRINCIPLE #3: MANAGE INNOVATION AS A BALANCING ACT
PREDOMINANTLY FOCUSED ON EVOLUTION (90-95%),
RATHER THAN REVOLUTION (5-10%)
Nagji & Tuff (2012)
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Prof Dr Walter Van Dyck
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PRINCIPLE #4: HAVE AN INNOVATION PARADIGM GUIDING
GROWTH AND RENEWAL? TO WHICH PURPOSE?
Science-based
Technology-based
Purpose:
Build critical
mass pushing
the scientific
frontier
Purpose:
Recombine
technologies
to build and
occupy
market space
Service-based
Purpose:
Optimize
client- and
deliverycritical assets
Van Dyck (2014)
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© Vlerick Business School
Prof Dr Walter Van Dyck
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SCIENCE-BASED INNOVATION PARADIGM: PERSISTENCE
AND CRITICAL MASS SOLVING MESSY PROBLEMS
…Open Innovation
Paul et al. (2010) Nature Reviews Drug Discovery
v
From
Closed Innovation to…
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© Vlerick Business School
Prof Dr Walter Van Dyck
TECHNOLOGY-BASED INNOVATION PARADIGM:
MODULAR PLATFORMS ALLOWING TO BUILD CREATIVE
COMBINATIONS –FAST-
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Prof Dr Walter Van Dyck
SERVICE-BASED INNOVATION PARADIGM: FAST
CUSTOMER LEARNING AND OPTIMIZING ASSET USE
Co-bot
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Prof Dr Walter Van Dyck
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INNOVATION IN FINANCIAL SERVICES
THE ACCENTURE INNOVATION AWARD
New Financial
Research-Based
25 Products
Creative
Combinations
Asset
Optimization
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5
0 Technology Push
2012 Award
2013 Award
Demand Pull
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© Vlerick Business School
Prof Dr Walter Van Dyck
INNOVATION-LED GROWTH AND RENEWAL:
GROWING AND TRANSFORMING THE CORE
Growing
the Core
Business
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Sense & Respond
Transforming the Core
Business
Prof Dr Walter Van Dyck
GROWING THE CORE: OUTPUT KPI-DRIVEN INNOVATION
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Prof Dr Walter Van Dyck
GROWING THE CORE @ INTEL: ROADMAP-DRIVEN
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Prof Dr Walter Van Dyck
PREPARE FOR TRANSFORMATION:
SENSE & RESPOND
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Prof Dr Walter Van Dyck
PREPARING FOR TRANSFORMATION: SENSE & RESPOND
INTERNAL CORPORATE VENTURING-DRIVEN
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Prof Dr Walter Van Dyck
SENSE & RESPOND: CONNECTING TO EXTERNAL IDEAS
USING EXTERNAL CORPORATE VENTURING, TAKING A
MINORITY EQUITY STAKE …
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Prof Dr Walter Van Dyck
… LEADING TO AN EXTERNAL PORTFOLIO OF POTENTIAL
BETS FOR THE FUTURE
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Prof Dr Walter Van Dyck
TO PREPARE FOR CORE BUSINESS TRANSFORMATION:
SENSE IN CORE-RELATED BUSINESS AND TECHNOLOGIES
Augmented reality
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Prof Dr Walter Van Dyck
RESPOND BY TRANSFORMING.
DISRUPT OR BE DISRUPTED; YOUR CHOICE
The Economist (2012)
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Prof Dr Walter Van Dyck
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3.
CONCLUSIONS
THE INNOVATION RATIONALE REVISITED
Prof Dr Walter Van Dyck
MANAGING INNOVATION-LED GROWTH AND RENEWAL
MEANS…
§ Know your innovation paradigm. Which purpose is your
innovation system built for?
§ Built for critical mass and persistence solving advanced problems?
§ Focused on modular design and launching smart combinations,
fast?
§ Understanding customers faster than competition and reacting
fast?
§ Geared to optimizing assets?
§ Dynamically manage a balanced innovation portfolio;
§ Predominantly focus on growing the existing core
§ Place bets to prepare for core transformation
§ Know when to add critical mass to promote bets bcoming your next
business
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Prof Dr Walter Van Dyck
FINALLY, THE MAIN LESSON…
INNOVATE, OR BE CONDEMNED TO BE A COST LEADER
Altomonte et al (2013)
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© Vlerick Business School
Prof Dr Walter Van Dyck
THANK YOU!
WALTER.VANDYCK@VLERICK.COM