In his book “Collective Disruption:   How Corporations & Startups Can Co-Create Transformative New Businesses,’ Michael Docherty lays out a vision of how established companies can create a strategy for innovation that includes partnering with startups, thereby enabling an “innovation ecosystem.”   This post is the fourth of ten reviewing the various chapters of his book in preparation for the Leadership Forum 2016 event put on by the Chicagoland chapter of the Project Management Institute on May 20th, 2016.

In the first part of his book , Michael explains the reason why open innovation is the recipe for creating innovation that is truly transformative, rather than just maintaining or expanding the core business.   In the second part of his book, he lays out his prescription for “collective disruption” as a way to achieve that open innovation ecosystem.

In the last chapter, Michael shows that corporate and entrepreneurial mindsets each have positive aspects which, if combined, could create a formidable framework called “collective disruption” for creating transformative innovation.   In this chapter, Michael goes into detail about the four phases involved in the collective disruption framework.

The four phases are:

  1. DISCOVER:  identify transformational opportunities relevant to your business.  Bring with a customer focus and then identify the key players and the networks.   You need to provide seed funding and resources for these activities.
  2. DEFINE:   define opportunities for an initial business opportunity through an iterative process, and use assessments to decide whether to explore these opportunities further or drop them.
  3. INCUBATE:    Apply a modified version of lean methodology which can be done in one of three ways–1) inside-in (integrated), 2) inside-out (accelerators), 3) outside-in (imbedded entrepreneurs).
  4. INTEGRATE:   Design new teams and structures that are both separate from and connected to the corporation.    These teams need to be separated to allow them to operate outside of the tight financial control of the current business, but they also need to be connected so that they eventually be absorbed into the existing corporate framework or spun off as something entirely new.

The next four chapters of his book discuss each of these four phases in turn.   The next post will cover the DISCOVER phase covered in chapter 6 of Michael Docherty’s book.


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