Innovation: Theatre or Action?
The motivation of the lecture is focused on the fact that corporate entrepreneurship is a very hot topic these days. However, despite all the talk, actual innovation performance comes nowhere near to delivering on its promise. We are perhaps five years into the latest flurry of excitement about the prospects for innovation-fueled growth. Companies have traveled to Silicon Valley in droves, sponsored innovation boot camps, trained innovation ninjas, and otherwise promised their stakeholders that innovation is front and center on their agendas.
And yet, evidence suggests much of this activity is just ‘Innovation Theater.’ Indeed, how many corporations focus their cultures around an innovation playbook, and train all staff in innovation practices? In a recent McKinsey study, approximately 65% of executives surveyed reported that they were unhappy with their organization’s inability to innovate. That said, McKinsey also discovered that, “On the contrary, senior executives almost unanimously—94 percent—say that people and corporate culture are the most important drivers of innovation.”
What’s Next for Corporate Innovation?
Similar research shows that corporations are spending a lot more of their profits on things like share buybacks and dividends than they are on innovation. So, what’s next for corporate innovation? The speakers identified five major categories of executive movement:
- Large corporations are world-class executions engines, and they now need to move at the speed of a start-up and don’t have the talent to do so. For example, Macy’s/Sears versus Amazon.
- McKinsey’s three horizons of innovation:
- Incremental innovation around core business – 60%-70% of resources
- Adjacent business (extend and tweak portfolio) – 15%-20%
- Transformational (disruptive: Kindle, iPhone, long term bets) 10%-25%
- Most CEOs come from the first horizon:
- Leaders align budgets, promotions, other incentives for execution not innovation
- Going from idea to good idea to acceleration of good idea is difficult
- Providing an incentive for innovation:
- Finance and HR are usually out of sync
- We cannot shoot the core business, because it pays the bills
- Balance (between sustaining core vs. disruptive innovation) is tricky and difficult to achieve
- Need a “re-factoring group” or process that sits between innovation and execution to help work proceed seamlessly understanding limitation of each side.
- Executives must know the difference between “innovation” and “entrepreneurship”:
- Anyone can be innovative; the CEO just needs to get rid of the obstacles
- McKinsey’s Horizons 1 and 2 just need innovation and continuous improvement
- The CEO sets and ingrains a culture of quality as a mindset of the organization
Best Chance for Success at Thornton Tomasetti
The information shared in this excellent lecture reaffirms Thornton Tomasetti’s approach. These are the driving issues that lead to success or failure of most corporate innovation attempts. Setting up the TTWiiN incubator and hiring The Combine addresses the main issues identified by panel. And, this model offers us the very best chance for success.
Recently, Matt Gray, BuiltWorlds founder and co-chairman of Graycor, a 90-year-old, Chicago-area general contractor, interviewed The Combine Co-founder and Partner, K.P. Reddy. We captured the interview on video, which is important, because this interview is one of the very few times you’ll ever see K.P. Reddy in a collared shirt and a coat. Here’s the video.
Notable Quotes from K.P.
The capital requirements to start an architectural firm are nothing. All you need is a customer.
The Combine works with large companies to spin out new tech companies. Especially in service companies, they are so close to the customer’s problem. They understand the problem. They’ve studied the problem. Then they start trying to solve that problem, by launching a new service unit to focus on that problem. Or, these days, everyone wants to build a new piece of hardware or software.
There is no line item for R&D
But in these companies it’s about billable hours, project revenue, project margin. There is no line item for R&D. So we’re able to go into these companies and mine these really cool innovative ideas and spin them out as tech startups.
Higher ROI outside of their core business
The large companies also retain ownership in the startup. Startup valuations are very different than services firm valuations, and particularly engineering and architectural firms. So we’re able to in many ways generate higher ROI outside of their core business than within their core business.
When you hear the term “civil engineering”, your eyes and ears usually don’t perk up in anticipation like they do when you hear “new iPhone” or “driverless cars” or “Artificial Intelligence.” Instead, you think bridges, roads, dams, airports, traffic patterns…buildings. Civil engineers are boring, right? [Read more..]
The construction industry has a technology problem..
A 2016 survey by strategic advisory firm, KPMG, shows that the industry is ambivalent about technology uptake. While 61% of construction companies are using Building Information Modeling (BIM), the survey also found that firms are not investing in single, fully integrated project management information systems. Instead they are using multiple software platforms that are manually monitored, an inefficient use of software at best. This can lead to a perception that they are not getting full value from BIM because information is lost as it moves from design processes and into construction.
The article Why your construction firm is really in the business of construction technology appeared first on Built Worlds
Despite project scopes growing more ambitious, the construction sector’s productivity and adoption of the latest technologies continue to lag behind those of other sectors.
The post Disruption key focus for GCC’s construction tech suppliers appeared first on Construction Week Online.
Heavy equipment manufacturing giant Komatsu and positioning software maker Trimble are teaming up to enable the sharing of 3-D construction job site data.
The Post Komastu, Trimble partner for 3-D construction data sharing appeared first on Construction Dive.
While keynotes from industry stalwarts like Paul Doherty and Aaron T. Becker and plenary presentations by Greg Bentleyand Burkhard Boeckem were considered by many to be the highlights of the SPAR 3D Expo and Conference, the biggest news from the show had actually come a few weeks earlier. In March, SPAR 3D and AEC Science & Technology (AEC-ST) announced that they would co-locate in June of 2018 in Anaheim, California.
It seems inevitable that every industry will eventually start automating. In construction this moment has already arrived, partially due to the release of unmanned aerial systems, many of which include software and payloads designed to help companies create 3D maps of their worksites without any human intervention.
The post Why Construction Sites Aren’t Ready for Automation appeared first on AEC Science and Technology.
Spagnolo Group Architecture (SGA), the lead architect for the project, is making use of virtual design and construction (VDC) technology to help design, construct, market, and manage the redevelopment. Through the use of the VDC technology, SGA is able to visualize the building improvements and make design changes in real time.
Source: BDC Network