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1、Organizations Capabilities to Innovate,Henry C. Co Technology and Operations Management, California Polytechnic and State University,1,Organizations Capabilities to Innovate (Henry C. Co),Recapitulation: APP Plan,2,Organizations Capabilities to Innovate (Henry C. Co),3,Organizations Capabilities to
2、Innovate (Henry C. Co),Organizations Capabilities,Organizations have capabilities and disabilities. Take two sets of identically capable people working on a project and put them to work in two different organizations, what they accomplish would likely be significantly different! Factor that affect w
3、hat an organization can accomplish: Values (non- transferable) Processes (non- transferable) Resources (transferable).,4,Organizations Capabilities to Innovate (Henry C. Co),Values,Criteria by which decisions are made; standards by which employees judge. Whether an order from a customer is a piece o
4、f good business or unattractive business; Whether a customer is an important one whose inputs should be solicited and valued, or is unimportant; Whether a new product idea is attractive or not; Whether a product whose dimensions hover at the outer bound of accepted tolerances should be shipped or no
5、t; etc.,5,Organizations Capabilities to Innovate (Henry C. Co),Clear and Consistent Value,Employees at multiple levels can make independent decisions that are consistent with the strategic direction and business model of the company. Values reflect a consensus about what makes sense for the company
6、and the individuals within it. GOAL CONGRUENCY!,6,Organizations Capabilities to Innovate (Henry C. Co),Processes,Patterns of communications, interaction, coordination an work through which inputs (information, material, equipment, technology, labor, and money) are transformed into products/services.
7、 Process differ in purpose, visibility (formal versus informal), embedded routines (“Thats the way we do things around here.”) Processes and Efficiency Two different organizations with identical sets of inputs, one might create more value than the other.,7,Organizations Capabilities to Innovate (Hen
8、ry C. Co),Resources,People, equipment, technology, product designs, brand reputations, information, cash, and relationships with suppliers and customers. Resources = assets that can be hired and fired, bought and sold, upgraded and depreciated. Transferable across the borders of organizations much m
9、ore readily than processes or values. Knowledge and skills of a person reside in the individual, and leave the organization if he or she leaves. Processes and values reside with profound resilience within the organization.,8,Organizations Capabilities to Innovate (Henry C. Co),Core Capabilities,Orga
10、nizations Capabilities Organizations core capabilities reside in its processes and values. Processes and values define what an organization can and cannot do with a given set of resources. Core Capabilities and Core Rigidities Processes and values that have enabled certain type of innovations in the
11、 past, can act to constrain the efforts of capable employees to innovate in different ways. Processes tend to facilitate an organizations ability to create value when new task matches closely the task for which the process was originally designed. The same process, however, can impede employees effo
12、rts to execute other types of tasks.,9,Organizations Capabilities to Innovate (Henry C. Co),Alternative Routes To Performance Improvement,Rely on superior resources. GM invested $60 billion during the 1980s in automated manufacturing equipment to improve quality and reduce cost. The Los Angeles Lake
13、rs in the 60s. Develop superior organizational capabilities. Toyota employed much less sophisticated equipment, and honed its processes to make better products. The Boston Celtics in the 60s.,10,Organizations Capabilities to Innovate (Henry C. Co),Structure of Development Teams & Organizations,Light
14、weight teams To exploit the capabilities that are rooted in the organizations established processes and values. Members are assigned to represent the interests and capabilities of marketing, engineering, manufacturing, finance, procurement, etc. The teams primary role is a coordinative one. Heavywei
15、ght and autonomous teams Vehicles for building new processes and values - new capabilities. Possess full authority to make all decisions required for the project to be successful. Members take collective responsibilities for the successful execution of every aspect of the project.,11,Organizations C
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