The New Age

of Innovation
C. K. Prahlad
M. S. Krishnan

Dec 8, 2021 1
 Structure of this presentation

 Introduction of the authors

 Introduction to the book
 New age of innovation, and what it means
 Framework: N = 1 & R = G
 Strategies to gain Competitive Advantage
 Managerial Requirements for Innovation

 Interaction

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 Author profiles

Coimbatore Krishnarao Prahlad

 Education
 B. Sc, University of Madras – 1960
 PGDBA, IIM Ahmedabad – 1966
 D.B.A, Harvard Business School – 1975
 Dean at University of Michigan
 Has been in the top ten management thinkers by most surveys globally,
continuously over the last decade
 Ranked by TIME as the “Most influential management thinker”
 First recipient of Lal Bahadur Shastri award for Contribution to
management and public administration, from the president of India in 2000
 Author of books:
 Competing for the future, with Gary Hamel in 1994
 The future of competition, with Venkata Ramaswamy in 2004
 Fortune at the bottom of the pyramid, in 2004
 The new age of Innovation, with M.S. Krishnan in 2008

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 Author profiles

Mayuram S Krishnan
 Education
 B. Sc, University of Delhi – 1984
 M.C.A, University of Delhi – 1987
 M.S, Carnegie Mellon University – 1993
 Ph. D, Carnegie Mellon University – 1996
 Professor at University of Michigan
 Co-director, Center for Global resource leverage - India
 Recognized by American Society for Quality as one of the top 21 voices for
quality in the 21st century
 Serves various boards as associate editor of journals in Management science
and Information systems research
 Published research articles in IEEE and HBR Journals
 Co-author of the book, The new age of Innovation

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 Contents of the Book

Expected to give the strategies for re-designing systems to co-create value

with customers and connect all parts of a firm to this process, the chapters
of the book were organized as below:

 Transformation of Business
 Business Processes: The enablers of Innovation
 Analytics: Insights for Innovation
 IT Matters: Technical Architecture for Innovation
 Organizational Legacies: Impediments to Value creation
 Efficiency and Flexibility: Managing the tension
 Dynamic Reconfiguration of Talent
 Agenda for Managers: Focus on the essence of Innovation

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 Innovation in 21st Century

 Innovation
 Successful application of an invention
 Complex processes of change characterized by co-evolution of
scientific, technological, societal and economic systems
 Creative work translated to useable outcome
 21st Century requirements of innovation:
 Open
 Collaborative
 Multi-disciplinary
 Global

Source: Somewhere from Google

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 Why Innovate at all?

 With the advent of digitization, ubiquitous connectivity and

globalization, Transformation will need to be radically altered,
to change the very nature of the firm and how it creates value
 Competitive advantage in 21st century can be gained only
through a combination of cost leadership and differentiation,
Specialization and the best information management systems
 Scalable means survival, since
 Cost arbitrage sought can only go downwards
 Cost of talent arbitrage can only go upwards

WORLD CAN ONLY BE MORE COMPLEX

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 N = 1 and R = G

 N=1
 Value will increasingly be co-created with consumers
 Every consumer is unique
 R=G
 No single firm has the complete knowledge, skills and
resources it needs to co-create value with consumers
 Every company has a gap between the strategic intent and
its capacity to act from within the organization

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 Reality by 2015

 5 Billion people are connected through Mobiles and Internet

 1 Billion people are active in using Social networks
 Easy access to Infrastructure
 Ever increasing competition
 Easy to use and cheaper cost technologies coming through
 Future consumers are here, very young today

WORLD IS A PLACE FOR INDIVIDUALS

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 Strategy

 Theme
 Enhance mission critical business processes
 Focus
 Designing processes to ‘enable innovation’ irrespective of the
manifestation of innovation itself
 Action Items
 Integrate and maintain the access to capital and other resources
 Manage the relationship between Ideas, Information, and Knowledge
 Make the processes connect strategic intent to day-to-day operations
 Possible Causes of Failure
 Lack of senior management involvement in designing business
processes
 Focus on either Profitability or Growth alone

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 Strategy

 Theme
 Build analytics at every level of the system
 Focus
 Research oriented data, not transactional data
 Action Items
 Connect to the strategy and identify the required analytics
 Improve the level of granularity, clarity, and visibility of processes to
leverage on global resources
 Possible Causes of Failure
 Dominant Logic: What you see depends on where you have been
 Failure to identify the emerging trend; and not looking down for
emerging players in the business
 Working on un-actionable insights

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 Strategy

 Theme
 IT matters: Improve the technical architecture
 Focus
 Technology enabling strong business foundation, compliant to
environment.
 Technology with evolving capabilities that can confront reality and change
 Should communicate the displacement of center of gravity at any time
 Quality – Speed : Event Driven – Scalable : Cost advantage – Change and Flexibility
 Interface – Ease of use – Ease to work - Integration
 Possible Causes of Failure
 Lack of senior management involvement, in identifying the need for
technology, and the suitable technology for business

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 Strategy

 Theme
 Be efficient and flexible at the same time: EFFECTIVE
 Focus
 Managing the tension; Social Architecture and Technical Architecture
 Action Items
 Change the roles and responsibilities of people to fit the strategy
 Put governance to work; not to change policies, but create a transparent
platform to create policies – custom fit to consumers
 Increase the elasticity: the extent to which processes can be stretched to
accommodate strategically dissimilar businesses
 Possible Causes of Failure
 Lack of Training to personnel

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 Strategy

 Theme
 Reconfigure the talent; Make it mobile
 Focus
 Ceaseless improvement
 Action Items
 Identify the talent within the organization; have access talent outside
 Make the talent work towards a goal and help it manage stress
 Create capacity to reduce with frictional losses during reconfiguration
 Possible Causes of Failure
 Temptation to outsource, rather than mobilize talent
 Losing sight of the vision, due to possible breakthroughs

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 Obstacles to Innovation

 Improper Organizational Structure

 Misalignment of Goals
 False Start
 Lack of Discipline
 Organizational Legacies
 Weak Accountability
 Individuals’ domination in thought process
 No Sense of Urgency
 Gut feel management

Source: Just one of our recipe

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 Managerial Requirements for Innovation

 Realize the paradigm, N = 1 and R = G

 Remember, What got you here won’t get you there
 Transition is about Speed and Stamina
 Make transition measurable
 Articulate capabilities and point of departures, clearly
 Migration should be well planned, and executed in phases
 Block and Tackle, Keep moving towards the goal
 Be ready for troubles. It is never certain anywhere
 Time lag is inevitable. Learn coping up with it

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 Welcome for Interaction

Flexibility is not about load balancing, but about continuously

balancing load, depending on the nature of the task with
appropriate resources. Therefore:

Connect | Collaborate | Co-Create

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 Thank you all…

Vinay Chaganti
Associate, ATGOCS

Work Mail ID: Vinay.Chaganti@atgocs.com

Personal Mail ID: nenevinay@gmail.com

Mobile: +91 97040 53338

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