Unrelenting Innovation / J-B Warren Bennis Series (ePub)

Figures and Tables xi Foreword xiii 1 Why Incumbents Fail 1 Why Incumbents Fail to Innovate Unrelentingly 3 The Preeminence of Culture 7 Culture as a Primary Explanation 15 Basis for the Book 17 Conclusion 19 2 Willingness to Cannibalize Successful Products 23 Why Incumbents Are Reluctant to Cannibalize Products 24 Why Willingness to Cannibalize Is Important 28 Understanding Technological Evolution 33 Blinded to an Opportunity: Microsoft Keywords? 39 Crippled by Fear of Piracy: Sony MP3 Player 41 Decline of an Innovator: Eastman Kodak 45 A Cycle of Cannibalization: Gillette's Innovations in Wet Shaving 49 Late Move: HP Tablet 53 Conclusion 54 3 Embracing Risk 59 Sources of Risk: Innovation's High Failure Rate 59 The Reflection Effect: Asymmetry in Perceived Risk 63 The Hot-Stove Effect: Learning from Failure 65 The Expectations Effect: Hope Versus Reality 68 Innovation's Gain-Loss Function: Type 1 and 2 Errors 69 Case Histories 75 Gambling on an Embryonic Market: Toyota's Prius 75 Gambling on Growth: Amazon.com 84 Gambling on Vision: Facebook 90 Gambling on Scale: Federal Express 103 Conclusion 106 4 Focusing on the Future 109 Why Future Focus Is Tough 111 Availability Bias 114 Paradigmatic Bias 116 Commitment Bias 119 Planning for the Future 121 Predicting and Managing Takeoff 122 Targeting Future Mass Markets 126 Predicting Technological Evolution 129 Analyzing Emergent Consumers 134 Conclusion 138 5 Incentives for Enterprise 141 Traditional Incentives: Winning Loyalty 142 Asymmetric Incentives: Turning Failure into Success 143 Making Incentives Work: Economics and Psychology of Incentives 148 Power of Incentives: IBM's Transformation 155 Incentives for Enterprise: Google 157 Incentives for Loyalty: General Motors 163 Incentives for Innovation: 3M 168 Structuring Team Incentives: IBM's Learning from Online Gamers 171 Conclusion 173 6 Fostering Internal Markets 177 Characteristics of Markets 181 Implementing Internal Markets 192 Managing Internal Markets 199

Gerard J. Tellis is a professor of marketing, management, and organization, Neely Chair of American Enterprise, and director of the Center for Global Innovation, at the University of Southern California Marshall School of Business. Dr. Tellis is an expert in innovation, advertising, global market entry, new product growth, quality, and pricing. His book, Will and Vision, was cited as one of the top 10 books in business by the Harvard Business Review and was the winner of the American Marketing Association Berry Award for the best book in marketing over the last three years.

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