Espresso #3

frankmattes Espresso

Today’s topics: How GE is becoming a truly global network; Scale-up is harder than start-up; Digital Maturity, not Digital Transformation.

Please click on headline to start reading.


How GE is becoming a truly global network

Time to read: 5 minutes

GE’s Vice Chairman John Rice recently described what it takes to transcend organizational silos so that the company aligns for customer orientation, innovation and Digital innovation. GE’s recipe consists of five ingredients: Build tools that really help in connecting the people in their jobs-to-be-done; Agree on shared metrics to align interests; Emphasize the role of ‘team win’ vs ‘individual win’; Adjust the corporate clock-speed to market speed; Link breaking down the silos to the individual leadership journey.

Our take: Our unique ENGAGE model for taking the innovation management system to the next level is based (among others) on research done by the MIT and Brigham Young University. In this model, the internal network of innovation catalysts and enterprise-grade software platforms are two essential cornerstones. From a very different angle, this has been confirmed by one of the most admired industrial companies.

Link to the original article: HERE

It’s the scale-up, not the start-up that is the tough issue

Time to read: 4 minutes

A recent study found that 26% of executives said that the transition from innovation to the business unit “needs serious work” and 16% even called it “terrible”. Most respondents admitted that there was room for improvement. One of the root causes found was that although new innovation initiatives get the blessing of the CEO, they have little interaction with the business units. So each initiative thus becomes like a satellite orbiting the earth, communicating sporadically only with a few senior executives on the ground.

Our take: There is incredible buzz these days about the innovation Fuzzy Front-End. To be “more innovative”, companies invest a lot of money into Innovation Centers, Accelerators, Incubators, Digital Labs etc. The problem is that only very few real innovations which move the needle have come out of these vehicles – Compare this to the innovation successes of Amazon. We think that scale-up needs deeper work (see the Peer Group below). We see this also supporting our argument in the ENGAGE model, that improving innovation results needs to look at the Fuzzy Front-End and also at the critical interface to the innovation execution.

Link to original article: HERE

Digital Maturity, Not Digital Transformation

Time to read: 7 minutes

A recent article in the MIT Sloan Management Review suggested to reframe the Change process in Digital Transformation from “Transformation” to “Increasingly growing maturity. This is more than just semantics. If executives don’t want to risk that costly investments into Digital tools are not used by staff or do not produce the results that were expected, they should reframe their thinking on Digital Transformation to “adopting business processes and practices to help the organization compete effectively in an increasingly digital world.” In other words, Digital Transformation has a big Organizational Development part.

Our take: We like the view of advancing a business goal by looking at the full system. It’s not about the technology alone. It’s neither about the most effective leadership style alone. It’s not only about providing the opportunities for “getting the people out in the field” and to “grow the skills base”, some of the cornerstones of our ENGAGE model. The whole system needs to be looked at – and advanced in a continuous, directed process.

Link to the Original article: HERE