Sunday, April 11, 2010

Types of Innovation & Org Structures

Some pointers from The Ambidextrous Organization by Charles A & Michael L T – HBR

Some examples discussed – Kodak, Boeing, USAToday.com, Ciba Vision.

Types of Innovation

1) Incremental Innovations – Small improvements in existing Products and Operations.

2) Architectural Innovations – Technological or Process advances to fundamentally change a component of element of the business.

3) Discontinuous Innovations – Radical advances / breakthroughs that my change / alter the basis for competition in an industry.

Team / Org Structures

1) Functional Designs – Integrate project teams into the existing org and mgt structure. Ex – mfg, sales and R&D reports to a GM.

2) Cross functional teams – Operate within the established org but outside the existing mgt structure. Ex – mfg, sales and R&D reports to a GM, but a separate unit called emerging business cuts across mfg and r&d report to the respective unit.

3) Unsupported teams – are setup outside the established org and mgt structure. Ex – mfg, sales and R&D reports to a GM, but a separate unit called emerging business also reports to the GM.

4) Ambidextrous Organizations – Establish project teams that are structurally independent units each having its own processes, structures, cultures but are integrated into the existing mgt structure. Ex – mfg, sales and R&D reports to a GM under the division existing business, but a separate unit called emerging business which also has mfg, sales and R&D reports to the GM.

The difference in many are the path that they choose,

1) Exploitative Business

2) Exploratory Business

Their difference would lie in the factors – Strategic intent, Critical tasks, Competencies, Structure, Controls, Rewards, Culture, Leadership roles.


m.m

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