1. 1 Innovative organizations The Internet The inspiration for net-centricity and the GIG Goal: to bring the creativity of the internet to the DoD What do innovative environments have in common? What do innovative environments have in common? Other innovative environments The scientific and technological research process The market economy Biological evolution

2. 2 Innovative organizations To ensure innovation: Innovation is always the result of an evolutionary process. Randomly generate new possibilities. Select the good ones. (Daniel Dennett, Darwin's Dangerous Idea) How does this apply to organizations? Sounds simple doesn’t it? Creation and trial Encourage the prolific generation and trial of new ideas. Reaping the rewards of success Allow new ideas to flourish or wither based on how well they do.

3. 3 Innovation in various organizations Initial funding Prospect of failure Approvals Establish Successes Biological evolution Capitalism in the small. Nature always experiments. Most are failures, which means death. (But no choice given.) None. Bottom-up resource allocation defines success. Entrepreneur Little needed for an Internet experiment. Perhaps some embarrassment, time, money; not much more. Few. Entrepreneur wants rewards. Bottom-up resource allocation. Bureaucracy Proposals, competition, forms, etc. Who wants a failure in his/her personnel file? Far too many. Managers have other priorities. Top-down resource allocation. New ideas aren’t the problem. Trying them outReaping rewards