1. © Copyright 2006 By InnovationLabs InnovationInnovation nnovatio Innovation

2. © Copyright 2006 By InnovationLabs InnovationInnovation What is the link between innovation and strategy?

3. © Copyright 2006 By InnovationLabs InnovationInnovation The Nature of Reality

4. © Copyright 2006 By InnovationLabs InnovationInnovation 2004-11-08 New Scientific Consensus: Arctic Is Warming Rapidly REYKJAVIK -- The Arctic is warming much more rapidly than previously known, at nearly twice the rate as the rest of the globe, and increasing greenhouse gases from human activities are projected to make it warmer still, according to an unprecedented four- year scientific study of the region conducted by an international team of 300 scientists.

5. © Copyright 2006 By InnovationLabs InnovationInnovation Human Population: Fundamentals of Growth Population Growth and Distribution In 2000, the world had 6.1 billion human inhabitants. This number could rise to more than 9 billion in the next 50 years. For the last 50 years, world population multiplied more rapidly than ever before, and more rapidly than it will ever grow in the future. Anthropologists believe the human species dates back at least 3 million years. For most of our history, these distant ancestors lived a precarious existence as hunters and gatherers. This way of life kept their total numbers small, probably less than 10 million. http://www.prb.org/Content/NavigationMenu/PRB/Educators/Human_Population/Population_Growth/Population_Growth.htm

6. © Copyright 2006 By InnovationLabs InnovationInnovation http://www.de.tomshardware.com/business/20030219/images/17.jpg

7. © Copyright 2006 By InnovationLabs InnovationInnovation http://www.benton.org/publibrary/stake/telecom/bargraph.htmlhttp://www.vhs-bremerhaven.de/internet/hosts_ripe.html Internet Hosts, GermanyInternet Hosts, World

8. © Copyright 2006 By InnovationLabs InnovationInnovation http://qsi.cc/blog/archives/cat_finance_economics.html

9. © Copyright 2006 By InnovationLabs InnovationInnovation Chip capacity (Moore’s Law)... Use of Fax Machines... Use of Cell Phones... Use of Internet … Information Excess... Growth of Human Population... Consumption of Resources … Increasing Pollution … Exponential Change!

10. © Copyright 2006 By InnovationLabs InnovationInnovation + specialization through technology Technology & the Acceleration of Change + more exponential change increased specialization through technology exponential change Innovation is the basis of competition

11. © Copyright 2006 By InnovationLabs InnovationInnovation Average Lifetime of An S&P 500 Company 193019401950196019701980199020002010 10 20 30 40 50 60 70 2020 years Source: Foster: Creative Destruction

12. © Copyright 2006 By InnovationLabs InnovationInnovation 125375 will survivewill disappear Companies of the US S&P 500 2005 - 2020

13. © Copyright 2006 By InnovationLabs InnovationInnovation 375125

14. © Copyright 2006 By InnovationLabs InnovationInnovation Creative Destruction Bethlehem Steel 1857 - 2003 ATT 1885 - 2005 Sears 1886 - 2005 Oldsmobile 1897 - 2004 Compaq 1982 - 2002 Creative Destruction Volvo 1927 - 1999 Webvan 1998 - 2001 DEC 1957 - 1998 Netscape 1994 - 1998 etc., etc., etc. Chrysler 1925 - 1998 the force of capitalism

15. © Copyright 2006 By InnovationLabs InnovationInnovation How you manage here Is not the same as how you manage... here change gap

16. © Copyright 2006 By InnovationLabs InnovationInnovation You are *Manage accordingly here*

17. © Copyright 2006 By InnovationLabs InnovationInnovation t 1 t 2 c 1 c 2 t 1 = t 2 c 2 = 5 x c 1

18. © Copyright 2006 By InnovationLabs InnovationInnovation Cellular Phone market, USA, forecast vs. reality Forecast by McKinsey & Co. for ATT millions of units 1 5 10 15 198320001994 forecast: 900,000 units reality: 17 million units predictions …

19. © Copyright 2006 By InnovationLabs InnovationInnovation “This ‘telephone’ has too many shortcomings to be seriously considered as a means of communications. The device is inherently of no value to us.” Western Union, 1876 “Everything that can be invented has been invented.” C.H. Duell, US Commissioner of Patents, 1899 “There is no reason anyone would want a computer in their home.” Ken Olsen, Founder Digital Equipment Corp., 1977 … are dangerous

20. © Copyright 2006 By InnovationLabs InnovationInnovation the force of innovation

21. © Copyright 2006 By InnovationLabs InnovationInnovation What is the link between innovation and strategy?

22. © Copyright 2006 By InnovationLabs InnovationInnovation “Learning faster than your competition is the only sustainable competitive advantage.” Arie de Geus “Learning faster than your competition is the only sustainable competitive advantage.” Arie de Geus learning faster learning learning learning learning learning faster

23. © Copyright 2006 By InnovationLabs InnovationInnovation What is the link between innovation and strategy? they’re the same thing they’re the same thing