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Managing Innovation Processes (continued)

Learn how to effectively manage innovation processes within information-intensive companies. Discover organizational solutions to integrate or separate new business ventures, and explore the benefits and challenges of hybrid approaches. Find the right balance to nurture new ideas without jeopardizing their potential for success.

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Managing Innovation Processes (continued)

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  1. Managing Innovation Processes (continued) Managing in Information-Intensive Companies Sept 10, 2010 Prof. Morten Hansen

  2. Conversion challenge: How to nurture a new business without killing it Organizational Solutions Integrate Separate • Integrate • with core • business • Core business • Exploiting • Mechanistic • Part of “line” • Ex: Intuit • Separate • from core • business • New business • Exploring • Organic • New Venture unit • Standalone unit • Ex: RR Donnelley

  3. Conversion challenge: How to nurture a new business without killing it Organizational Solution: Hybrid Integrate Hybrid Separate • Integrate • with core • business • Core business • Exploit • Mechanistic • Ex: Intuit Part integrated, Part separated -Leverage core -Freedom to explore -Ambidextrous Ex: IBM • Separate • from core • business • New business • Explore • Organic • Ex: RR Donnelley

  4. Solution has to achieve two benefits:start-up and corporate leverage High Benefits from corporate leverage -finance -services -customers -distribution -operations -technologies -expertise -people Hybrid Solution Integrated Separate Low Low High Benefits from startup drive -creative -freed from existing frames, autonomy -high risk, high reward -entrepreneurial people

  5. Risk: In aiming for both benefits, end up with neither! High Benefits from corporate leverage -finance -services -customers -distribution -operations -technologies -expertise -people Hybrid Solution Integrated Risk: in trying hybrid, achieves neither! Separate Low Low High Benefits from startup drive -creative -freed from existing frames, autonomy -high risk, high reward -entrepreneurial people

  6. Hybrid requires a “messy” organization and management solution

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