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The Case of Best Buy Co. Inc.: An Innovator’s Journey.

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Presentation on theme: "The Case of Best Buy Co. Inc.: An Innovator’s Journey."— Presentation transcript:

1 The Case of Best Buy Co. Inc.: An Innovator’s Journey

2  The shared values, beliefs and norms of behavior that exist within an organization.  These are defined by the history, performance, leadership and industry of the organization.  There are subcultures within the dominant culture.

3  Innovation as a systemic capability  Barriers to innovation  Planting the innovation gene  Ordinary to extraordinary  Playing the whole keyboard  Managing resource tensions  Managing, measuring, leading innovation From Gary Hamel, Introduction to Innovation to the Core by Peter Skarzynski and Rowan Gibson, 2008.

4  Time frame  Leaders  Size  Customer  Product

5  Customer oriented  Have fun, learn  Tolerance for failure  Innovation is important, especially innovative processes. For example,  Demand forecasting systems  Supply chain management  Advertising effectiveness systems  Knowledge management systems  Structural capital

6  What mindset does Gary Hamel, CEO of Strategos, bring to Best Buy?Gary Hamel  “Help companies develop and embed strategy and innovation into the core of an organization”  10 Principles of Innovation  Very expensive  Co-designed the process, guided the participants throughout, coaches more than consultants

7  Timeline  Participants  Phases

8 INNOVATION PROCESS & IDEATION (Davila et al, 2006: p.125) Generation of Ideas Radical Innovation Incremental Innovation Selection Execution Creation Of Value Generation of Ideas Generation of Ideas Product, Service and/or Process Innovation Bootcamp: developing mindset Discovery Innovation Lab 1000 ideas into 5 domains Synthesis Realization 6 projects

9 Three tasks of innovative work behavior: Scott, S.U. & R.A. Bruce Determinants of Innovative Behavior: A Path Model of Individual Innovation in the Workplace. Academy of Management Journal, 37: Idea generation: formulation of new ideas of any sort, which are benefical to organizational conduct (Woodman, Sawyer and Griffin, 1993) 2. Idea promotion: capitalizing on ideas generated by finding sponsors and allies with the necessary influence and authority (Kanter, 1983, 1988) 3. Idea realization: the production of a prototype or model of innovation…that can be touched or experienced, that can now be diffused, mass- produced, turned to productive use, or institutionalized (Kanter, 1988, p.191)

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11 1. Leadership boot camp: 2 days, senior executives 2. I-Journey Participants: 3 days, 35 from Strategy & Business Development 3. Purpose? 1. Build commitment 2. Set expectations 3. Introduce everyone

12  Brad Anderson, CEO  Five lens groups: Consumer Insight, Orthodoxies, Discontinuities, Industry Mapping, Core Competencies  Face-to-face interaction  Team interactions  Cultural experiences  Meet Toby Nord of Consumer Insight team  Testing Assumptions

13  Reorganizing teams around specific business ventures for further investigation  Designing the intersection of learning  Internalizing insights  Experience  Step back  Generate conclusions  Connect with intuition and decision making  Record Keeping

14  Experimentation & Venturing  From 1,000 business ideas to 6 projects  Venture Board  Decision  Field Research  Field Test

15  Key Success Factors?  Issues?  Recommendations?  What Happened?  Studio D Store: A new technology and electronics boutique that helps shoppers discover the possibilities of digital technology and the many ways it can enhance their lives. Studio D Store  Escape: a high-energy entertainment and retail environment featuring various game stations and products for guys who want the absolute latest in gaming, gadgets and electronics.

16  How does the I-Journey lead to a permanent pervasive innovation capability throughout the organization?  How do you get people throughout the organization to understand the consumer value proposition? What value are/can we providing to the current and potential consumer?  How do you balance innovation with delivering business results?

17 ROInn™Cost (for example..)Benefit (for example..) Direct: financial costs and revenues directly attributable to the I- Journey. I-Journey costs, salaries of participants, consultant, Sales from new ideas Indirect: financial costs and revenues indirectly attributable to the I- Journey. Cost of covering for participants during I-Journey, Future revenues generated from additional ideas. Tangible: Physical, measurable, discernable results; now and in the future. Failure of projects due to lack of attention during I-Journey. New partnerships New products/services New business processes Intangible: Non- measurable, subtle, indefinable results; now and in the future. Negative effect on non- participants or participants whose ideas were not supported. Negative effect on families of participants New skills and competencies. Goodwill generated within the company as well as with customers.

18 ROInn™Cost (for example..)Benefit (for example..) Direct: financial costs and revenues directly attributable to the I- Journey. I-Journey costs, salaries of participants, consultant, Sales from new ideas Indirect: financial costs and revenues indirectly attributable to the I- Journey. Cost of covering for participants during I-Journey, Future revenues generated from additional ideas. Tangible: Physical, measurable, discernable results; now and in the future. Failure of projects due to lack of attention during I-Journey. New partnerships New products/services New business processes Intangible: Non- measurable, subtle, indefinable results; now and in the future. Negative effect on non- participants or participants whose ideas were not supported. Negative effect on families of participants New skills and competencies. Goodwill generated within the company as well as with customers.


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