Index
3M, 15, 116, 130, 135, 238, 281
A
absolute performance evaluation, 198-199
Accenture, 217
action plans
for improvements, 117
A Day at the Races, 91
adoption, 126. See also processes
agents, change, xxxii
agility, 214
Airbus, 2
airlines, xxiii
efficiency, 234
a la carte services, xxi
alignment
innovation, xxvii
objectives, 124
allocation of resources, 267
ALZA Corp., 132
Amazon, xiv
core competencies, focus on, 135
creativity, 93
education, 222
growth, creation of, xxix
high-technology startup strategies, 63
Kindle, xxiv
value propositions, 32
ambidextrous organizations, 112-114
antibodies, xxxiv
creativity, blocked by, 96
organizations, 87. See also organizations
anticipation of challenges, 214, 222
AOL (America Online), 6
business models, 1
core competencies, focus on, 135
cultures, 261
danger of success, 243
ideas, generating, 127
management systems, 143
operating systems, 19
Play to Win (PTW), 63
risk management, 79
semiradical innovation, 49
value of networks, 107
applications, 125
education, 220
applying
innovation rules, 263
APTEC, 141
Arthur D. Little (ADL), 94, 244
artists, 19
Asia
international organizations, cultures, 253
management support, 13
assessments, Innovation Climate, 274
AT&T, outsourcing, 103
Audi, 123
automobile industry, India, xxiv
B
banking, xix
Bank of America (BoA), 88
Barbie (Mattel), 65
barriers to effective performance measurement, 176-177
Basic Fun and Gamewright, 105
batteries, 268
Becton Dickinson, 215
behaviors, xiv
benchmarking, 93
innovation actions, 270
role of leadership, 266
Betamax, 223
beverage industry, 4. See also Coca-Cola; PepsiCo
biases
avoiding, 94
creative process, 92
cultures, 279
Big Idea Group, 105
biotech, 82
BJ Services, 68
blockers of radical innovation, 53
BMW
corporate venture capital (CVC), xxxix
Silicon Valley, 113
BO Exploration and Production, 17
bonuses, 182. See also incentives; rewards
Boston Consulting Group (BCG), 94
boundaries, expansion of, xx
brainstorming, xxxix, 137, 161
brands, xxviii
loyalty, xxii
Starbucks, 72
values, 15
Bratz (Mattel), 65
breakthrough innovations, 8, 42
growth, effect on, xxxvii
Bridgestone, xx
British Airways (BA) case study, 240
British Petroleum (BP), 161
cultures, 246
knowledge management, 225
Brown, Lord, 246
budgets, projects, 42
bundles, products/services, xx
business models. See also models
Apple, Inc., 1
costs, 29
defining, 16
Ford, 31
GM (General Motors), 31
Internet, xiv
investments, selection of, 12
measurement systems, 151
Nucor Steel, 30
success, 76
technology innovation, portfolios, 14-15
Business Objects, 223
business strategies, 59. See also strategies
business to business (B2B), xxi
business to consumer (B2C), 93
Business Unit (BU), xxviii
C
California Energy Commission (CEC), 170
cameras, 267
Canon, 49
cultivation of networks outside of, 25
Structured Idea Management (SIM), 128
capabilities
external networks, 77
organizational, 76
technical, 76
capacity, utilization, 168
capital
Corporate Venture Capital (CVC), 110-112
corporate venture capital (CVC), xxxix
management, 93
Carrerfour, role of leadership, 268
case studies
balance of creativity/value, 91
British Airways (BA), 240
creativity displacing commercialization, 21
design of structures, 105
incubators, 112
outsourcing, 99
Play Not to Lose (PNTL), 71
Play to Win (PTW), 69
Proctor and Gamble (P&G), 72
radical innovation, 55
semiradical innovation, 49
cash-based incentive systems, 209
cash flow projections, 171
CATIA design system (Boeing), 139
CEMEX, 89
design of structures, 105
innovation rules, executing, 265
redirection/revitalization initiatives, 286
test-driven systems, 284
Centrica, 67
CEOs (chief executive officers), xvi. See also leadership
action plans for improvements, 117
approach to innovation, 85
considerations, 38
cultures, 261
danger of success, 241
deal-making processes, 133
education, implementing, 214
electronic collaboration, 142
high-technology startup strategies, 61
Innovation Framework, 57
learning histories, 229
limitation of innovation, 136
measurement
effectiveness of, 173
removing barriers to effective, 177
rules, 146
Play Not to Lose (PNTL), 66, 70
recruiting, 256
change
agents, xxxii
innovation strategies, 72
periods of, 246
rate of technological, 78
channels, distribution, xiv
chaos management, 128
prototypes, 132
Chennai, India, xxii
Cherry Coke, 4. See also Coca-Cola
Chevron, 105
Chevron Oronite, 46
chief technology officers (CTOs), 8
Chrysler Group LLC, 123
Dodge Caravan, 172
Cisco, outsourcing, 103
Citibank, levels of pay, 200
Clorox, xxxviii
Coke Japan, 4
cultivation of networks outside of, 25
test-driven systems, 283
co-creation, xxxviii
coffee, xix
Starbucks, 72
education, 214
effect on performance, 195
semiradical innovation, 50
Columbus, Christopher, 258
command, clear sense of, 260
commercialization, 89, 91, 123, 137
creativity, case studies, 21
managing, xxxiv
processes, 126
commercial savvy, combining with creativity, 263-264
commitments to resources, 259
commodities, 37. See also products
communication, 29
cultures, 24
measurement system strategies, 148-149, 163
companies, renewing, 239
Compaq
management systems, 122
outsourcing, 99
comparing management systems, 137-139
compensation, xxxii
competencies, building, 218, 221-223
competition, 77
complacency, 239
complementarities stage, 234
components of compensation, 182
CompuServe, 6
Connect + Develop operating model, xxxvii
Conner Peripherals, 94
Connors, John, 55
consistency, 120
of leadership, 2
Constellation Energy Group, 67
Continental Tire, 123
continuous learning, 153
contracts, incentives, 193-204
core competencies, focus on, 134-136
Cornerstone, xxii
corporate venture capital (CVC), xxxix, 110-112
costs, xviii
business models, 29
development, 169
modifying, xxiii
Nikon, 186
products, 191
creativity, 120
commercialization, case studies, 21
commercial savvy, combining with, 263-264
harnessing, 239
organizational antibodies, blocked by, 96
value
Crest, 73
criteria
investments, selection of, 12
measurements, 146
criticism, 96
Crossfire Executive Survey, xv
cross-functional teams, 122
cross-licensing, 125
C-suite, xxvii
cultivation of networks beyond organizations, 24
cultures
biases, 279
case studies, 240
change, 260
communication, 24
organizational levers of, 244-252
people and innovation, 253-258
role of senior management, 258-261
go-for-the-breakthrough, 8
Google, 99
measurements, 160
in need of change, 274
customer relationship management (CRM), 157, 231
customer relationship markets (CRMs), 48
customers
asset utilization, xxi
business model changes, 32, 34-35
cycles
Learning to Act, 215
D
Daft, Doug, 4
DaimlerChrysler, 123. See also Chrysler Group LLC; Fiat S.p.A.
electronic collaboration, 141
Silicon Valley, 113
Dasani bottled water, 5
day-to-day leadership, 13. See also leadership
deal-making processes, 133
decision-making skills, Seven Innovation Rules, 12-15
defibrillators, 232
defining measurement system strategies, 148-149
delivery
products, 92
services, 92
business models
changes, 50
technology innovations, 14
core competencies, focus on, 136
innovation strategies, 7, 86, 235
management systems, 143
role of leadership, 268
Dell, Michael, 58
de Luca, Guerrino, 186
dependency on technology innovation, xviii
derivatives, 42
Deromedi, Roger, 268
designing
organizational levers of, 244-252
people and innovation, 253-258
role of senior management, 258-261
measurement systems, 150-157, 159-173
processes, 119
strategies, 59
Play Not to Lose (PNTL), 63-71
structures, 105
Design School (Stanford University), xxxix
Design Solution Center (GE Plastics), 141
design thinking, xxxviii
development
costs, 169
Innovation & Development (I&D), 88
Product Development Network (McKinsey & Co.), 225
products
experiential learning, 220
limited learning in, 218
diagnostics and action, 269-284
Diamandis, Peter, 53
digital cameras, 267
Digital Equipment Corporation (DEC), 242
discounted cash flow (DCF), 93-96
disposable baby diapers, 52, 68
disruptive technologies, 56
distribution
channels, xiv
effect of PCs on, xix
diversity, 248
divisional incentives, 196
Dockers, 34
Dodge Caravan, 172
dogma, 239
Dominion Resources, 67
Donnelly, Scott, 71
Dow Chemical, 269
semiradical innovation, 47
Dreyer’s Grand Ice Cream, 102
Drucker, Peter, 3
drugs, cost containment, xviii
DuPont
cultivation of networks outside of, 25
outsourcing, 103
semiradical innovation, 47
Duracell, 268
DVD movies (Netflix), 56
dynamic nature of innovation strategies, 229-235
E
earnings, Coca-Cola, 4
earnings per share (EPS), 26
easyCar, 134
easyGroup, 134
eBay, 29
e-commerce, 114
economic incentive structures, xxxii, 206
Eddie Bauer, 32
Edison, Thomas, 258
education, 211
measurement systems, 148
effectiveness, 65
effective performance measurement, barriers to, 176-177
stage, learning lifecycles, 234
electric utility industry (United States), 67
electronic collaboration, 139-142
Electronic Data Systems (EDS), 251
elements
of innovation, 9
of motivation, 182
Employee Relationship Management Systems, 163
employees
motivation, 6
retention, 203
enablers of radical innovation, 53
enabling technologies, xvii, 35, 37-38
Entergy Corporation, 67
entrepreneurial operating models, xl
environment, effect on culture, 252
EPFL, xxxviii
EPIC design system (Boeing), 139
equations, human capital, 160
Ericsson, xxxviii
ersatz radical innovation, 54-56
eToys, 92
E*TRADE, 222
Europe
Bridgestone, roadside service, xx
management support, 13
evaluation of performance, 192-199
examples
leadership by, 259
of measurements, 174
execution, 153
ideas, 125
processes, education, 220
expansion of boundaries, xx
expectations
goals, 190
levels of pay, 200. See also compensation
experiential learning, product development, 220
exploration cycles, xxxix
external collaboration, 16
external networks, 153
capabilities, 77
external partnerships, xxxviii
Exxon Mobil, 68
measurements, 147
stage gate systems, 278
F
Apple, Inc., 19
high-technology startups, 61
incentives, 207
as part of processes, 228
fairness, 207
fast-follower strategy, 66
fast food, product and service offerings, 36
FDA (Federal Drug Administration), 80, 182, 202. See also pharmaceutical companies
fear, 207
Financial Times, 12
Fiorina, Carly, 249
role of leadership, 270
test-driven systems, 283
flexibility, 214
FMC Corporation, 235
focus, 247
Folgers, 72
Ford
business models, 31
innovation strategies, 7
iTek Center, 109
Ford, Henry, xix
standardization, 30
incentives, 187
antibodies, xxxiv
creativity/commercialization, managing, xxxiv
innovation processes, xxx-xxxi
metrics/motivators, xxxi-xxxiii
foundations of culture, 253
Framework (Innovation), 39
CEOs (chief executive officers), 57
frameworks
measurements, 159
frugal innovation, xxxix
incentives, 189
decisions, 126
measurements, 162
G
gain-sharing mechanisms, 195
Galvin, Robert, 226
game consoles, 235
Gap, 32
gasoline engines, 231
Gates, Bill, 12. See also Microsoft
GCA, 49
GE (General Electric), xv, xl, 116
core competencies, focus on, 134
danger of success, 243
electronic collaboration, 141
experimentation, 130
innovation strategies, 86
management systems, 119
NBC, sale of, 135
outsourcing, 103
Play Not to Lose (PNTL), 71
Play to Win (PTW), 63
R&D (research and development), 110
role of leadership, 266
supply chains, 34
Genentech
danger of success, 243
technology innovation models, 281
genome-based therapies, xviii
geographical differences in innovation, 254
Gillette Company, 3, 15, 45, 268
ideas, generating, 127
incremental innovation, 43
global organizations, cultures, 252-253
GM (General Motors), xxiv
business models, 31
innovation strategies, 7
goals
defining, 286
rewards, measurements, 188-193
Structured Idea Management (SIM), 128
go-for-the-breakthrough cultures, 8
Goodall, Jane, 256
danger of success, 243
Play to Win (PTW), 63
self-directed exploration, 107
technology innovation models, 281
Gramerrn Bank, 2
growth, xv
managing, xxxiv
values, 7
via breakthrough innovations, xxxvii
H
Halliburton, 68
harnessing creativity, 239
heroes, 251
Hewlett Packard (HP)
cultures, 248
risk management, 79
role of leadership, 270
stage gate system, 279
test-driven systems, 283
Hickey, William V., 43
high-technology startup strategies, 61
hiring, 257. See also recruiting
Honda, 196
human capital equations, 160
hybrid automobile technologies, 8, 63
Hyderabad, India, xxii
Hyundai, Play Not to Lose (PNTL), 64
I
cultures, 237
electronic collaboration, 140
innovation strategies, 7
management systems, 120
prototypes, 132
standalone offerings, xx
value propositions, 32
Ibuka, Masaru, 250
generating, 126
investments in, 133
main source of, 231
processes, 125
Structured Idea Management (SIM), 128-129
Idei, Nobuyuki, 58
identifying customers, xxiii-xxv
cultures, 260
iMac, 4
Immelt, Jeffrey, 110, 116, 260
cultures, 274
role of leadership, 266
implementation
education, 214. See also education
stages, 166
incentives, 181
economic incentive structures, 206
rewards, 9
income, residual, 170
incremental innovation, 41-47, 59
goals, 193
high-technology startups, 62
learning systems, 224
radical innovation, combining, 246
case studies, 112
India, xxii
Tata Motors, xxiv
Inditex, xiv
industries
lifecycles, 229
pharmaceutical, innovation strategies, 79-85
structures, 77
initiatives, management, 285-286
InnoCentive (Eli Lilly), 140
innovation
business models, xviii-xix, 14-15
core competencies, focus on, 134-136
elements of, 9
execution of, 9
frugal, xxxix
geographical differences in, 254
incremental, 59
combining radical innovation, 246
goals, 193
high-technology startups, 62
learning systems, 224
levers of, 31
limitations, 136
management, 13
organization, 87
overview of, xiii
education, 217
ignorance management, 225
learning systems, 224
performance stage, 232
prototypes, 132
rewards, 184
reverse, xxxix
action and diagnostics, 269-284
applying, 263
combining commercial savvy with creativity, 263-264
innovation model and, 58
metrics, 284
change, effect of, 72
levels of, 69
pharmaceutical industry, 79-85
technologies, 35, 281. See also technologies
Innovation Board, 99
Innovation Climate assessment, 274
Innovation & Development (I&D), 88
Innovation Framework, 39
CEOs (chief executive officers), 57
Innovation Leadership Team, 267
Innovation Matrix, 15, 60, 152
Innovation Platform teams, 105
inputs, measurement systems, 151-155
insight, role in innovation, xxv-xxvi
intangible resources, 152
Wal-Mart, 29
Intel
corporate venture capital (CVC), xxxix
cultures, 241
outsourcing, 103
interactions
cultures/management tools, 237
with learning, 223
learning systems, 217
international
organization cultures, 252-253
partnerships, 104
Internet, 51
business models, xiv
Nespresso, xix. See also Nespresso
investments
in ideas, 133
selection of, 12
types of, 42
IO Digital Pen, 189
IPO (initial public offering), 185
Iraq, oil fields, 68
iTek Center (Ford), 109
ideas, generating, 127
Iue, Satoshi, 267
J
Jager, Durk, 17, 74, 263. See also Proctor and Gamble (P&G)
Japan, 196
Coke Japan, 4
role of leadership, 267
salary requirements, 243
Jobs, Steve, xxvi, 12, 236. See also Apple, Inc.
cultures, 261
innovation strategies, 86
tour of Xerox PARC, 21
Johnson & Johnson
cultivation of networks outside of, 25
disposable baby diapers, 52
Play Not to Lose (PNTL), 64
vision, 259
Jones, Phil, 134
K
Kelley, David, 260
Kihara, Nobutoshi, 222
Kilts, James M., 3, 15, 45, 268
Kimberly-Clark
disposable baby diapers, 52
U.S. baby diaper wars, 68
Kindle (Amazon), xxiv. See also Amazon
knowledge. See also education
management, 225
measurements, 162
retention, 124
types of, 222
Knowledge Research Directory (McKinsey & Co.), 225
Kobit, 49
Kohlhepp, Robert J., 278
Kraft, 267
role of leadership, 268
Kuwano, Yukinori, 267
L
lack of innovation, 69
Lafley, A. G., 12, 74, 102, 264. See also Proctor & Gamble (P&G)
leadership, xxxv-xxxvi, 9. See also management
companies in innovation, 2
consistency of, 2
senior management, role of, 258-261
Leakey, Louis, 256
learning. See also education
complementarities stage, 234
efficiency stage, 234
market segmentation stage, 233-234
Learning to Act cycle, 215
Learning to Learn cycle, 216-217
legends, 251
levels of innovation, 69
leverage
Webvan, failure of, 246
levers of innovation, xvi-xviii, 31
Levi Strauss, 247
licenses, cross-licensing, 125
lifecycles
industries, 229
learning
complementarities stage, 234
efficiency stage, 234
market segmentation stage, 233-234
limitations
of electronic collaboration, 142
of innovation, 136
of return on investment (ROI), 170
linkage, innovation, xxvii
Lipitor, 80
Lipton, xxii
Lockheed, 113
long-term
viability, 114
Los Angeles Lakers, 250
loss-avoidance goals, 191
loyalty, brands, xxii
lubrication additives, case study, 112
Lubrizol, 46
Lucent, value of networks, 107
Luvs diapers, 74
M
MACH3 razors/blades (Gillette), 127
main source of ideas, 231
Making Innovation Work (MIV), xiii, 21
formulas for success, xvi-xxxvi
strategies, xxviii. See also strategies
balance of creativity/value, 89
capital, 93
innovation, 13
knowledge, 225
stability, 246
Structured Idea Management (SIM), 128-129
support, 13
systems, 119
core competencies, focus on, 134-136
electronic collaboration, 139-142
tools, V2MOM, 270
values, 236
vision, 77
manuals, product-development, 218
manufacturing, 24
maps, processes, 131. See also prototypes
margins, models, xxiii
marketing, 24
markets
customer relationship markets (CRMs), 48
partnerships, xxii
pharmaceutical, xviii
segmentation, 31
stages, learning lifecycles, 233-234
time-to-market, 191
video rental, 54
Marvel Entertainment, xx
matching innovation strategies, 16-18
Matsushita, Silicon Valley, 113
Mattel, 65
integration, 105
maturity, 126. See also processes
McDonald’s, product and service offerings, 36
McKinnon, Paul, 238
McKinsey & Co., 225
measurements, 9, 145. See also metrics; rewards
adequacy of, 94
examples of, 174
Exxon Mobil, 181
performance, barriers to, 176-177
rules, 146
stimuli, 162
Medtronic, 232
meetings, types of, 223
Merrill Lynch, 222
MessagePad (Apple), 19
metrics, xiv, xxxi-xxxiii, 146
earnings per share (EPS), 26
performance, 9
rules, 284
MGA Entertainment, 65
microcredits, 2
Microsoft, xv, xxxviii, 12, 157
complementarities stage, 235
cultures, 245
diversification, 248
goals, 191
management systems, 122
outsourcing, 103
risk management, 79
Xbox, 34
mission statements, Sony, 250
mistakes
avoiding, 212. See also education
Structured Idea Management (SIM), 129
Mobile Office (Nokia), 24
Mobisante, xl
Mobius, xl
MobME, xxii
models. See also strategies
current, refining, 218, 220-221
entrepreneurial, xl
margins, xxiii
monetizing, xxv
Open Innovation, xxxvii
operating, xxxvii
revenues, xxiii
rules of innovation and, 58
technology innovation, 281
Model T Fords, xix
monetizing
models, xxv
social networks, xxii
value networks, xxi
monitoring measurement systems, 148
employees, 6
negative effect on intrinsic, 205-207
Motorola, 227
N
nanotechnology, xvii
NASA
electronic collaboration, 140
outsourcing, 104
NBA (National Basketball Association), 250
NBC, sale of, 135
NCR (National Cash Register), 247
negative effect on intrinsic motivation, 205-207
Nescafe, 69
Nestlé, xiv
corporate venture capital (CVC), xxxix
Netflix, 56
net present value (NPV), 158
networks
capabilities, 77
cultivation of beyond organizations, 24-25
external, 153
Product Development Network (McKinsey & Co.), 225
social, monetizing, xxii
values, xviii, xxi-xxiii, 106-110
neutralization of antibodies, 23-24
new
ideas, 96
products, 42
Newton (Apple), 19
Nike, xxxviii
Nikon, 49
incentives, 185
Nintendo, complementarities stage, 235
Mobile Office, 24
outsourcing, 103
noncustomers, identifying, xxiv
Not Invented Here (NIH), 24
Novartis, semiradical innovation, 47
Nucor Steel, 2
business models, 30
O
offerings
services, 35
Office of Technology Licensing (Stanford University), 104
Ollila, Jorma, 12. See also Nokia
Open Innovation, xxxvii, xxxviii
operating models, xxxvii
entrepreneurial, xl
operating systems, Apple, Inc., 19
opportunities, identifying, 149
optimization, 211
initiatives, 285
updating, 78
organizational capabilities, 76
education, 211. See also education
organizations, 87. See also structures; systems
antibodies, 96
cultures
objectives, aligning, 124
Orteig Prize, 52
OS X (Apple), 4
Otellini, Paul, 241
outcomes, measurements, 151-155, 168-169
outputs, measurements, 151-155
outsourcing innovation, 100-104
P
Palmisano, Samuel J., 21, 120. See also IBM
Pampers, 74
PARC, xxvii
partnerships, xxii, xxxviii, 6
electronic collaboration, 139
international, 104
outsourcing, 101
PCs (personal computers), xix, 50
peer groups, 161
peer-to-peer lending, xix
people and innovation, 253-258
performance. See also incentives; rewards
measurement, barriers to, 176-177
measurements, 146. See also measurements
metrics, 9
products, 191
relationship to compensation, 200-202
stages, learning lifecycles, 232-233
periods of change, managing, 246
PerkinElmer, 49
personal computers (PCs), 231, 260
personal digital assistants (PDAs), 6, 19
perspectives, emerging from recent experiences, xxxvi-xl
pharmaceutical industry
cost containment, xviii
Philips, xl
corporate venture capital (CVC), xxxix
cultures, 248
incentives, 183
physical environment, effect on culture, 252
piezoelectric technology, xviii
planning, 148. See also strategies
products, 168
Platt, Lou, 279
Play Not to Lose (PNTL), xxviii, xxxi, 63-71
complacency, 242
incentives, 185
Playstation (Sony), 223
Play to Win (PTW), xxviii, xxxi, 60-63
case studies, 69
complacency, 242
incentives, 185
Proctor and Gamble (P&G), 74
Sanyo Electric, 267
shifting to, 68
portfolios
balancing, 97
business model/technology innovation, 14-15
management, 137
Post-its, 184
incentives, 189
power, 67
Power by the Hour, xxv
PricewaterhouseCoopers, 32. See also IBM
Prius (Toyota), 63. See also Toyota
CEMEX, 105
commercialization, 126
core competencies, focus on, 134-136
deal-making, 133
designing, 119
electronic collaboration, 139-142
execution, education, 220
failure as part of, 228
ideas, 162
maps, 131. See also prototypes
measurements, 146-147, 151-155
Structured Idea Management (SIM), 128-129
to support strategies, 259
Process Masters (Chevron), 105
Proctor and Gamble (P&G), xxxvii, xl, 3, 12, 17, 263
case studies, 72
core competencies, focus on, 134
disposable baby diapers, 52
innovation strategies, 86
management systems, 119
Play to Win (PTW), 74
U.S. baby diaper wars, 68
Product Development Network (McKinsey & Co.), 225
bundles, xx
costs, 191
delivery, 92
development, 88
experiential learning, 220
limited learning in, 218
new, 42
platforms, 168
profits, 195
rollouts, 137
unbundling, xx
Coca-Cola, 4
incremental innovation, 46
Nikon, 185
profit-sharing, 195
Virgin, 264
projections, cash flow, 171
projects
budgets, 42
management, 137
selection processes, 137
propositions, values, xviii, xix-xxi
business model changes, 32
prototypes, xxxix, 131-133, 137
rapid, 226
Q
Qoo juice, 5
qualitative goals, 190
quantitative goals, 190
R
radical innovation, 51-55, 59, 69
education, 217
ignorance management, 225
learning systems, 224
performance stage, 232
prototypes, 132
rewards, 184
rampant incrementalism, 96
rapid prototyping, 226
Raymond, Lee, 68
R&D (research and development), xxxviii, 8, 16
GE (General Electric), 71, 110
incremental innovation, 46
main source of ideas, 231
metrics/rewards, 27
Microsoft, 55
networks, 24
pharmaceutical industry, 80-81
Real Madrid, 249
recognition rewards, 183
Red Herring, 161
redirection initiatives, 285-286
reengineering, 218
regions, xxviii
relative performance evaluation, 198-199
Renault-Nissan, xxiv
renewing companies, 239
research contracts, 202
residual income, 170
resources, 9
allocation of, 267
ideas, 162
leadership commitment to, 259
retention, employees, 203
return on investment (ROI), 94, 96, 112, 158
cultures, 249
limitations, 170
measurements, 146, 160. See also measurements
value creation, 170
revenues, xv
models, xxiii
reverse innovation, xxxix
revitalization initiatives, 285-286
incentives, 9
risk, xxxii
encouraging, 3
incentives, 207
measurements, 165
microcredits, 2
Seven Innovation Rules, 12
strategies, 61. See also strategies
value creation sustainability, 172
ROCE (return on capital employed), 147
roles
of CEOs (chief executive officers), 260-261
of innovation systems, 121
of leadership, 115-116, 266-269
of subjectivity in performance evaluation, 198
role of leadership, 268
rollouts, products and services, 137
Rolls-Royce, xxv
Rosen, Howard, 132
rules, 114
action and diagnostics, 269-284
applying, 263
combining commercial savvy with creativity, 263-264
measurements, 146
metrics, 284
Russia, oil fields, 68
S
cultures, 261
ignorance management, 226
innovation actions, 270
role of leadership, 266
Sales Learning Curve, 211
Sanyo Electric, 267
scalability, xv
Scaled Composites, 130
Scotchgard (3M), 131
Seagate Technology, 94
Seagram Group, 135
Sealed Air Corporation, 43
Sears Roebuck and Company, 152
segmentation of markets, 31
stages, learning lifecycles, 233-234
selection of strategies, 59, 75-78
Play Not to Lose (PNTL), 63-71
semiradical innovation, 47-51, 59
Play to Win (PTW), 61
Sempra Energy, 67
senior management, role of, 258-261
servers, 99. See also PCs (personal computers)
services
a la carte, xxi
bundles, xx
delivery, 92
development, 88
rollouts, 137
telephone, xix
unbundling, xx
sessions, training, 161
shared visions, 214
Shell Oil, 51
international organizations, cultures, 253
Sherman, Patsy, 131
innovation actions, 270
simulations, 131. See also prototypes
Six Sigma, 46
skunkworks (Lockheed), 113
Sloan, Alfred, 31
Smith, Darwin, 68
Snapple, 4
social networks, monetizing, xxii
Sony, 58
complementarities stage, 235
mission statements, 250
Playstation, 223
product development, 222
risk management, 79
Sony Pictures, xx
technology stage, 231
SourceForge.net, 104
semiradical innovation, 49
venture capital (VC) model, 280
speed, 65
Spirit of St. Louis, 52
spreadsheets, 131. See also prototypes
stability of management, 246
stages
implementation, 166
of management systems, 126
stage gate approach, xl, 137, 278-279
standardization, Henry Ford, 30
Standing Innovation Board, 105
Stanford University, xxxix, 104
Starbucks, Play to Win (PTW), 72
startups, high-technology strategies, 61
Steinmetz, Charles, 70
stimuli, measurements, 161-162
strategies, 9
combining, 246
designing, 59
diagnostics, 271
fast-follower, 66
growth (Coca-Cola), 4
change, effect of, 72
levels of, 69
pharmaceutical industry, 79-85
measurements, 146
Play Not to Lose (PNTL), 63-71
antibodies, xxxiv
creativity/commercialization, managing, xxxiv
innovation processes, xxx-xxxi
metrics/motivators, xxxi-xxxiii
updating, 78
stretch goals, 190
Structured Idea Management (SIM), 128-129, 137
industries, 77
innovation, 152
optimization, 117
organization, 87. See also organization
subjective evaluation, 196-198
subjective measurements, 158. See also measurements
success
business models, 76
antibodies, xxxiv
creativity/commercialization, managing, xxxiv
innovation processes, xxx-xxxi
metrics/motivators, xxxi-xxxiii
success-driven goals, 191
Sun Microsystems, 99
supply chains
Amazon, 63
modifying, xxi
Wal-Mart, 29
support, management, 13
sustainability, value creation, 160, 170-173
Switzerland, xxxviii
education, 214. See also education
management, 119
core competencies, focus on, 134-136
electronic collaboration, 139-142
measurements. See also measurements
time-based, 282
T
talent, 162
tangible resources, 152
targets, customers, xviii, xxiii-xxv
Tata Motors, xxiv
teams
incentives, 196
technical capabilities, 76
3M, 24
business model portfolios, 14-15
disruptive, 56
high-technology startup strategies, 61
rate of change, 78
telephone services, xix
Tesco, role of leadership, 268
Tetra Pak, 121
electronic collaboration, 140
test-driven systems, 284
Tide, 74
time
time-based systems, 282
time-to-market, 191
to value, 165
tires, xx
TiVo, 93
tools, management (V2MOM), 270
Total Optimized Process (Top), 270
Total Quality, 46
cultures, 246
danger of success, 243
efficiency, 234
Play to Win (PTW), 63
redirection/revitalization initiatives, 286
supply chains, 34
Tufts University, 80
types
of growth, 6
of innovation, xxvii, 39-56, 166
of inputs, 152
of investments, 42
of knowledge, 222
of management systems, 137-139
of meetings, 223
U
unbundling products and services, xx
United Kingdom (UK), bottled water, 5
United States
electric utility industry, 67
international organizations, cultures, 252
management support, 13
Universal Studios, 135
updating strategies, 78
USA Today, 150
utilities, 67
utilization
capacity, 168
V
V2MOM management tool, 270
values
brands, 15
creativity
earnings per share (EPS), 26
growth, 7
innovation, generating, 286-287
management, 236
measurements, 165
networks, xviii, xxi-xxiii, 106-110
propositions, xviii, xix-xxi, 32
time to value, 165
Vanilla Coke, 4. See also Coca-Cola
venture capital (VC), 133, 160
Corporate Venture Capital (CVC), xxxix, 110-112
rewards, 185
viability, 114
Viagra, 228
video rental markets, 54
Virgin Galactic, xxix, 203, 264
Virgin Rail, 264
visibility, 163
vision
management, 77
role of senior management, 259
Vivendi, 135
Vodafone, 249
Voice over Internet Protocol (VoIP), 231
Volkswagen, xxiv
incentives, 183
von Pierer, Heinrich, 270
W
Walkman (Sony), 231
Wal-Mart, 29
core competencies, focus on, 134
DVD movies, 56
innovation strategies, 86
integration, 105
role of leadership, 268
semiradical innovation, 47
technologies, enabling, 37
Weatherford, 68
Web Services (Microsoft), 55
Wilder, John, 67
wireless switches, xviii
X
x-axis, 159
Xbox (Microsoft), 34
Xerox
outsourcing, 103
PARC (Palo Alto Research Center), 21
Y
y-axis, 229
Z
ZeroStock Retail, xxii