Professor Ping Lan
University of Alaska Fairbanks, USA
April 2012 for NArFU & SKOLKOVO
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Farmer, Official and Academia in China.
PhD from UK.
Journalist, academia and entrepreneur in
Thailand, Australia, Canada, Alaska.
Keynote speaker in China, Japan, India,
Brazil, USA on Innovation and Change
Management.
Creator of Arctic Innovation Competition
www.arcticinno.com.
Copyright © Ping Lan
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Understand Changes for
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Having right people
At right place
In right time
Doing right thing
Facilitate Changes by enabling
◦ Disciplined people
◦ Develop disciplined thought
◦ Conduct disciplined action
Copyright © Ping Lan
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Three basic changes
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Seven change continents
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Seven change stages
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Three change roots
Copyright © Ping Lan
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Functionality change--New or modified
product/service/function which alters utility
of an identity.
Delivery change--New or modified
process/method which alters efficiency of an
action.
Relationship change--New or modified
linkage which alters the distribution of value.
Copyright © Ping Lan
Functionality change
creates a container for
holding something
Relationship change
affects the quantity of the
thing put into the container
Delivery change determines the density
of the thing put into the container
Copyright © Ping Lan
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Early Ford: developed Model T, invented
assemble line, and made double pay.
Transformed Apple: designed iPod,
created iTunes, partner with Labels.
Initiated Google: arranged new listing,
stacked computers, created Adsense.
Copyright © Ping Lan
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An overall map of changes
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Each continent’s uniqueness
◦ Key components
◦ Typical landscaping
◦ Implications
Copyright © Ping Lan
-Function; -Feature
-Feasibility
-Consequence
-Platform
-Product families
-New biz line
-Procedures
-Structure
-Cost
-Speed
-Quality
-Efficiency
Copyright © Ping Lan
Delivery
2
-Biz model
-Value chain
-Vertical integration
Functionality
1
4
5
7
6
Paradigm
Relationship
3
-Partnership
-Culture
-Managing style
-Stakeholders
-Linkage
-Revenue
-Strategy
-Organization
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Procedure
◦ Define the change tripartite of an organization
◦ Check the content of each one
◦ Determine its comparative importance in a
competitive environment
◦ Obtain the final result of the tripartite combination
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Example--AltaVista
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Functionality: pioneer in automatic indexing
Delivery: lack efforts & uniqueness in delivery
Relationship: chaotic in management
Status: 1, quick up & quick down with features
Copyright © Ping Lan
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Temporal dynamics of changes
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A change chain
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A change chain with a Loop
Copyright © Ping Lan
Temporal Dynamics of Changes
Change
Overall S Curve
Functionality
Delivery
Relationship
Time
Copyright © Ping Lan
A Change Chain with A Loop
Change
Radical
Cross
Dual-core
Restructure
Incremental
New/Modified
Product or service
is introduced
Obtain a
dominant
design
Standardization
Prototype
produced
F
Have a
consumption
beachhead
F+R
F+R+D
Dichotomy
Engagement
D
Diversification
of product or
Drop &
service
stabilize
price
D+R
R
Product or
service is
discontinued
D+F
Time
Copyright © Ping Lan
Changes
Radical
Cross
Dual-core
Patented
by Sholes,
50 models
were made
1868-74
Yost,
Remington
& No. 2,
author
consumption
1875-80
Copyright © Ping Lan
Restructure
Incremental
Caligraph,
Crandell,
Hammond,
Hall
Typists,
Separate
thinking
from
Doing
1881-88
Engagement
Wagner
Design
Underwood
Royal last
entry
Dominant
Remington
18000
special equip
1889-95
Dichotomy
Adler in
Germany
1896-1908
Cost
Sensitive
Underwood
control over
50% market
Remington,
Royal,
Smith &
Bothers,
A lot M&As
1909-1929
Remington
Underwood
tried Etypewriter
and failed
IBM
bought ETypewriter
Inc. 1933
Many firms
left
1930--
Time
Loops in the Typewriter Industry
Change
Radical
Cross
Dual-core
Restructure
Incremental
Dichotomy
Engagement
1964-1976:
word processors
1933-1963:
electric-powered
typewriters
F
F+R
F+R+D
D
D+R
1977-1990s:
Faded out of
typewriters
R
D+F
Time
Copyright © Ping Lan
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External change marker
(God/Environment/Out of control)
Internal change marker
◦ Three change roots
◦ Their work mechanism
◦ Changes they may bring about
Copyright © Ping Lan
Contents
Effects
Functionality
Delivery
Relationship
change
change
change
Habit for selecting learning areas &
mechanisms (dealing with known/unknown
by using knowledge conversion modes)
Add expertise
Increase sensitivity (Questioning: pose queries that
challenge common wisdom; Observing: scrutinize the
behavior of actors to identify new ways of action)
Working
areas
Crucial
Case
Amazon’s Jeff Bezos.
Copyright © Ping Lan
Important
Important
Functionality
change
Contents
Effects
Delivery
change
Relationship
change
Habit for associating unrelated areas
(drawing connections between questions,
problems, or ideas from unrelated fields)
Add integration or wholeness;
Create a vision, or a platform; (Networking-meet people with different ideas and perspectives)
Working
areas
Important
Case
Apple’s Steve Jobs connecting dots
Copyright © Ping Lan
Important
Crucial
Contents
Effects
Working
areas
Case
Copyright © Ping Lan
Functionality
Delivery
Relationship
change
change
change
Habit for solving problems through focusing
and persistent engagement /commitment
Facilitate action
Increase simplicity
Important
Crucial
Intel’s Andrew Grove
Important
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Disciplined people to
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Develop disciplined thought, and to
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Conduct disciplined action
Copyright © Ping Lan
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Build up a leadership hierarchy
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Have active crew members
Copyright © Ping Lan
Based on Collins 2001
Based on Collins 2001
 Leading with principles
 Eyeing the large picture
 Acting on bright spots
 Developing something from the non-existing
 Enabling what needs to be done
 Reviewing fairly and constructively
Copyright © Ping Lan
Right People = Tasks
Get on or off a bus;
Remain in a bus.
{match}
Fat men fish;
Fat men run;
Fat men fish & run.
Known destination or task;
Unsure destination or task;
Unknown destination or task.
Copyright © Ping Lan
Abilitires
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Confront the brutal fact
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Develop hedgehog concept
Copyright © Ping Lan
Find & face facts.
 Continually refine
the path with the
brutal facts of
reality.
 Retain an
unwavering faith in
the game.
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Copyright © Ping Lan
A Change Chain
A single economic denominator
Based on Collins 2001
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Gain the flywheel effect
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Avoid the doom loop
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Keep using creation/innovation
Copyright © Ping Lan
Based on Collins 2001
Based on Collins 2001
New Scope
New
Method
Problems within
a given boundary
New Angle
Creation/Innovation
Copyright © Ping Lan
New
Effect