Innovative in a Dynamic Environment Dennis Mhangami Dr. Lynn A. - - PowerPoint PPT Presentation

Dennis Mhangami CEO Corporate Entrepreneurs

• Dr. Lynn A. Keeys

President PMI South Africa

How can the PM Become More Innovative in a Dynamic Environment

What to expect from our presentation

• You will gain an overview of business model

innovation

• Your thinking on the role of projects in innovation

will be questioned and expanded

• Your perspective on how project managers can

assist innovation will be stimulated

• We will engage in creative discussion on the

innovative project manager!

The Innovative Project Manager in a Dynamic Environment

ACKNOWLEDGEMENTS

EVERYONE is Responsible for Innovation

"The best innovations occur when you have networks of people with diverse backgrounds gathering around a problem" Robert Fishkin “Innovation is a collaborative process where people get together to challenge the status quo. It’s not an individual effort” Clayton M. Christensen

What is Innovation?

New value to the world Invention Commercialisation Innovation is a multiplicative relationship between ideas and business models

What Drives Innovation?

Commercialisation (Project execution) is the key to unlocking value from inventions, products, processes, patents etc.

A Business Model describes how an organisation creates, delivers and captures VALUE for itself and it’s stakeholders

What is a Business Model?

The Business Model Canvas

The Business Model Canvas Helps to Answer…

1. Who is the customer? 2. What value do we sell them? 3. How do we interact with them? 4. How do we deliver the value to them? 5. How do we earn money from them? 6. What activities must we be great at doing? 7. What are our key assets? 8. Who are our strategic partners? 9. What is the cost of delivering our VP?

Backstage Frontstage

Business Model Innovation – Nespresso Case

A great idea by itself was not good enough… Nestle needed another business model

Turning a failed project into a $4 billion cash machine through BMI…

Business Model Innovation – Nespresso Case

BMI Has Become a Strategic Imperative

• More than 50% of executives believe that in future

competition takes place not between products or services, but between business models. Source: Economist Intelligence Unit (2005)

• Business model innovation matters and it is a top priority
• f CEOs. Source: IBM (2006)
• More than 60 % of executives believe that their

business model will undergo fundamental changes in the next 5 years. Source: IBM (2008)

How Can PMs Positively Impact Innovation?

Understand the context of projects from the perspective of AMBIDEXTERITY

Projects in the organization innovation ecosystem—the context

• Innovation ecosystem includes--
• Activities (projects!)
• Actors and partners (internal and

external)

• Roles and position of

actors/partners

• Transfers, flow, sequence and

linkages of content (resources, knowledge/information, influence)

(based on Adner,R. 2017. Ecosystem as Structure. Journal of Management)

Innovation Ecosystem An “affiliated” linked system

To innovate, organizations must explore and exploit (ambidexterity) to take advantage of new opportunities and adapt to disruptions

• A Project, a series or a configuration are

Exploration and exploitation channels

• Organizations leverage both approaches to

succeed in the market (government or private)

PROJECTS Essential dimension of BMI creation and delivery

It’s about a learning and exploitation cycle to constantly create,deliver and capture value

• Exploration projects—

exploring what we don’t know

• Products
• Processes
• Structures
• Technology
• Frameworks
• Approaches
• Context
• Exploitation projects—

executing what we do know (existing business & new innovations)

• Products
• Processes
• Structures
• Technology
• Frameworks
• Approaches
• Context

AMBIDEXTERITY

Ambidexterity means different PM approaches for the different aims and contexts

• command, control, linear and

predictive PM approaches do not fit all contexts and desired

• utcomes
• Ambidexterity means allowing

room for

• uncertainty, ambiguity
• experimentation
• Learning & applying learning
• Improvisation (using what works)
• Adaptation
• Emergent strategy
• Failure
• Flexible timelines
• Emergent outcomes

Managing Innovations has Shifted from being Linear to Highly Iterative

Traditional Waterfall approach

PM’s are at the coalface

• f strategy formation &

execution via projects AND so must be equipped to deal with the complexity and uncertainty of managing innovations – beyond the triple constraints

Project managers at the core of innovation exploration and thus execution—WHY?

Innovation management – exploration & execution competence

Ambidexterous projects need ambidexterous

• rganizations & vice versa

Organization Innovation Explore/Exploit Strategy is needed

• Aligns organization structures and strategic vision with

ambidexterity

• Provides senior management support
• Creates flexible project platforms & series of connected projects

(portfolios)

• Allows flexible organizational project approaches
• Enable exploration project approaches
• Enable project flexibility to identify potential innovations in

exploitation projects to capture learning & create potential value

• Encourages entrepreneurial/intrapreneural approaches to problem

solving

Organization innovation Explore/exploit strategy

Projects Projects

Challenges for the project manager to play innovative role

• when project parent organization(s) lacks

innovation/exploration strategy?

• when project manager is not involved in project

charter development?

Organization innovation Explore/exploit strategy

Some Approaches for Project Manager as Innovator

• Combine techniques where projects have

both aspects—exploit & explore;

• Utilize non rigidity in approaches
• Employ agile approaches to test ideas,

when feasible

• Use hybrid methods for different project

components

• Create environment & culture in your

project to safely generate new ideas, experiment, learn, & adapt content & project management approaches

• Act as facilitator of innovation ideas
• Communicate strategically upwards &

horizontally to support the case for innovation and inform innovation strategy

Communicate Upwards & horizontally

Organization innovation Explore/exploit strategy

Help form strategy Contribute to

• rganizational

learning

How Can PMs Use BMC to be more Innovative?

1. Use BMC to frame a strategic conversation around value proposition 2. Stand in different places in the canvas 3. Empathise with stakeholders 4. Listen for understanding 5. Be a business analyst – observe 6. Think radically. E.g. ask the question “what could we do to completely wreck this project?” and then work back from there 7. Provide solutions 8. Contribute to organizational learning

Thank you LETS TALK ABOUT IT