Context: I am doing research on two core theme of innovation management process, Innovative Strategy and Innovative Organization. I picked Shell as a company of research

The professor gave us recommendation guideline below:

Figure 15. Dimensions that support innovation (Own work, adapted from Hogan S. J et al, 2014Artifacts Values Assumptions\fInternal Communication Openness & Competence & Flexibility Professionalism Success Inter-functional Innovative Cooperation Organization Risk-taking Responsibility AppreciationVisible Artifacts of Innovation Examping Behaviors * wories about employment who have solved problems in innovative why *solve chonty " physical arrangements to facilitate innovation problems in related activities innowtwo wayt "implement Layer of innovative marketing Cullure programs " Innovate with Nons for Innovation Software & Examples: wchnology "topoctations of open communication about new ideas & approaches to solving problems " expectations of co-operation and team work in developing now idnin and now ways of dealing with work tasks Values Supporting Innovation Visible "valuing open communication within the firm *valuing co operation throughout the Emm\fOutcomes Hedonic Social Utilitarian Informal relationship Engagement and Team Spirit between stakeholders motivation High degree of complexity Creative Characteristics of and uncertainty thinking early stage of Tacit knowledge-intensive Consensus Cognitive innovation. conflicting organizational building pressures Permanent discovery of Creative what customers hope to thinking accomplishAwareness Highly innovative companies ensure they are aware of the forces that have the potential to disrupt their businesses and their industries, enabling them to better position themselves to take action today to face the impact of disruption tomorrow Organizational | In times of disruption, innovative companies will be able to quickly adapt and pivot Agility their resources to address new opportunities and threats. This requires a willingness to embrace new approaches and ways of working that breakthrough traditional bureaucratic barriers and facilitate rapid decision-making. Effective Highly innovative companies invest in advanced technologies and use resources Resources eftectively which help them increase an organization's resilience in the face of change. By acquiring and deploying the best people, technology and financial resources, companies can improve their competitive position and prepare for future disruption. Developing effective research strategies and learning how to enhance the organization's in-house capabilities by taking advantage of crowd sourcing are \fFigure 3, SOCR Steps (Own work, adapted from Teece et al, 2020)\fSOCR Framework: Values: Description: Sense Involves perceiving changes and opportunities in the external environment. Organizations need to actively monitor market trends, technological advancements, and other relevant factors that might impact their business. Organize Once changes are sensed, the organization needs to organize its internal resources and capabilities effectively. This involves aligning the workforce, technology, and processes to respond cohesively to the identified opportunities or challenges. Capture Capturing value is about translating strategic initiatives into tangible outcomes. It involves implementing plans and actions that contribute to the organization's overall objectives. This might include successful product launches, market expansions, or process improvements, Renew Renewal is an ongoing process in the SOCR framework. It emphasizes the need for continuous adaptation and evolution. As the business environment changes, organizations must be prepared to renew their strategies, ensuring they remain agile and relevant over timeFit with existing business model Request new business model existing business model Leverage Leverage existing Requires new competencies competencies Fit with existing technical competence Figure 4: The Innovation Landscape Map (Pisano, 2015, Harvard Business Review) \fRadical + [Innovations that align with and support the current business model but require new competences. Routine Innovations that build upon or enhance the current business model and leverage existing competence. . 3 Architectural Innovations that necessitate a shift or overhaul in the existing business model and require new competences. Disruptive Innovation that requires new business model leverage existing competence. Relevant for software companies, this category signifies disruptive and open-source INnovations. Figure 5: Type of Innovations (Own work, adapted from Pisano, 2015, Harvard Business Review) Aspire | Innovation starts with setting high aspirations that go beyond the mundane and aim for transformative achievements. Companies need to set ambitious, yvet achievable, goals for innovation. This drives motivation and sets a clear direction. A compelling vision, combined with quantifiable innovation targets, ensures that innovation 18 not just a buzzword but a critical component of the strategic plan, encouraging bold moves and accountability. Choose | Choose involves selecting the right ideas to pursue from a plethora of options. It's about managing risk and focusing on the most promising opportunities. By setting boundary conditions for opportunity spaces, companies can prioritize investments effectively, balancing the portfolio between safe bets and more speculative ventures Discover | Discovery is about finding unique insighis that lead to value-creating innovations. This requires a deep understanding of customers, technologies, and market trends. For innovative strategy, fostering a culture that encourages exploration, curiosity, and collaboration both intermally and with external partners can lead to the identification of unmet needs and emerging opportunities. Systematic and iterative discovery processes enable companies to continually refresh their innovation pipeline with ideas that can drive orowth and differentiation. Evolve The essence of innovation often lies in business model innovation Evolve involve rethinking how value 1s created and delivered. Adapting and reinventing business models in response to changing market conditions or new technologies is crucial. This often means exploring new profit streams, value chains, or delivery models, even if it requires venturing away from the core business. It's about staying ahead of disruption by being willing to experiment and take calculated risks. Accelerate | Acceleration in innovation refers to the ability to move rapidly from idea to market. Owvercoming internal barriers and bureaucratic inertia is essential for rapid innovation. Companies must streamline governance processes and empower cross-functional teams to move ideas forward quickly, ensuring that innovations don't get stuck in the pipeline. Scale Scaling innovation effectively is about ensuring that new ideas are brought to market at the right scale and speed. Determining the appropriate scale for an idea and marshaling the resources to achieve it is critical. Whether targeting a niche or aiming for global reach, companies need to plan for rapid scaling to capture markets effectively and fend off competition. Extend External collaboration is highlighted as a key element of successful innovation. By partnering with others, companies can access new ideas, technologies, and markets more quickly than Mobilize Embedding innovation into the culture and incentivizing innovative behavior across the organization are key. Setting clear expectations, aligning rewards with innovation goals, and fostering an environment that encourages experimentation and leaming help sustain innovation momentum. Figure 7, Survey of Essentials Innovation Practices (Mckinsey, 2015)What innovation leaders say they do right % of respondents by performance quartile' B Top quartie W 2nd M 3rd 4th 55 27 10 g 2 2 Aspire Choose Discover Evolve Accelerate Scale Extend Mobilize | The survey tested for 27 innovation practices | spread across eight essentials Testing for innovation Aspire Choose Discover Evolve Accelerate Scale Extend Mobilize Do you really innovate? Do you regard innovation-led growth as critical, and do you have cascaded targets that reflect this? Do you invest in a coherent, time- and risk-balanced portfolio of initiatives with sufficient resources to win? Do you have differentiated business, market, and technology insights that translate into winning value propositions? Do you create new business models that provide defensible and scalable profit sources? Do you beat the competition by developing and launching innovations quickly and effectively? Do you launch innovations at the right scale in the relevant markets and segments? Do you win by creating and capitalizing on external networks? Are your people motivated, rewarded, and organized to innovate repeatedly? Figure 6, Eight Essentials for Innovation (Mckinsey, 2015) Figure 12, Agile Innovation Process, Advantage and Benefits {Own work, adapted from Righy, 20168) Transaction Business Cost Model Dynamic Corporate Firm Scale, (Competitive) Scope & Advantage Benefits Value Corporate Creation Digitalization Shit Advantage: Internal Structure & Design Decentraliza Management tion Roles & Function Task & Workforce Design\fCorporate (Competitive) Advantage: Firm Scale, Scope, and Boundaries: Internal Structure and Design: 1. Business Models 2, Value Creation Shift 1. Transaction Cost Dynamics: 1. De-centralized Structures 2. Task and Workforce Design 3. Management Roles and Functions 1. Digitalization has facilitated innovation, allowing firms to develop varions business models, like application, website, platform. 2. There's a shift from traditional value capture strategies to value creation. This emphasizes the importance of growth and network effects in the digital era. 1. Digitalization impacts the transaction costs within firms. While it might reduce transaction cosis, making market-based transactions more efficient, it also enhances internal efficiency through automation, leading to the rise of giant firms (like Amazon, Google). 1. Innovations in organization design, like network-based structures and agile working, are facilitated by digital transformation. This allows companies to communicate remotely and allow for decentralize structure where chains of command are not only originated from higher up or top-down approach, but the company can communicate effectively to every single stakeholder. 2. The nature of task and workforce design undergoes significant changes. Automation and augmentation of tasks through digital technologies impact job categories, creating a demand for skilled workers. Human capital becomes crucial for corporate competitive advantage. 3. The composition of the C-suite evolves, with the emergence of roles like Chief Digital Officers (CDOs). These roles focus on cross-functional coordination and interpersonal skills, reflecting the need for organizations to adapt to the demands of the digital age. Characteristics Limit the Number of Priorities Focus on Mid-term Objectives Pull Toward the Future Make the Hard Calls Address Critical Vulnerabilities Provide Concrete Guidance: Align the Top Team: Description Restrict strategic priorities to three to five for clarity, effective communication, and focused resource allocation. Too few priorities can be abstract, while too many may dilute guidance. Set strategic priorities with a three-to-five-year horizon, bridging long-term aspirations and short-term goals. Sticking to these objectives reinforces commitment and enhances organizational performance. Prioritize forward-looking initiatives to balance the status quo and innovation. Strategic priorities should guide the creation of future value rather than just codifying past success. Engage in discussions to make tough decisions and prioritize key objectives. Avoiding conflict or labeling everything as "strategic\" diminishes the effectiveness of priorities. Identify and prioritize critical vulnerabilities by focusing on elements crucial for success and prone to failure. Consider external factors and internal challenges in the assessment. Ensure strategic priorities are tangible and actionable, not vague abstractions. Concrete guidance involves translating key actions into metrics for tracking progress and making midcourse corrections. Achieve alignment among top executives on key priorities. Disagreements or factions within the top team can hinder successful execution. Encourage shared understanding and commitment to strategic objectives. N Agile Innovation Steps: '. Design: Modularize and prioritize design features; be open to changes in undeveloped modules. Develop: Build the prioritized features iteratively, focusing on value. Integrate: Continuously integrate code and ensure it works seamlessly with existing features. Test: Conduct ongoing, real-time testing to identify and fix 1ssues promptly. 5. Deploy:Release frequent " Increments to users. \\ ./ Agile Innovation Advantages: 1'". Faster Time-to-Market:Agile enables rapid development and deployment of features, leading to quicker product releases. Customer-Centric: Continuous collaboration ensures that the product aligns with customer needs, enhancing customer satisfaction. Adaptability: Agile accommodates changes in requirements, fostering innovation and flexibility throughout the development process. Risk Reduction: Frequent testing and integration help identify 1ssues early, reducing the risk of major sethacks. Incremental Improvement: Regular releases allow for incremental improvements based on user feedback, ensuring a continuously evolving and competitive product. _H\\ Why should company use Agile? 1. Dynamic Adaptation: Agile's flexibility and adaptability allow teams to respond quickly to changes in the business environment, technology landscape, or customer preferences. 2. Continuous Improvement: Agile promotes a process of continuous improvement. Teams reflect on their processes at the end of each iteration, identifying areas for enhancement and implementing changes in subsequent cycles. 3. Collaborative Process: Agile encourages close collaboration between team members, stakeholders, and customers. This collaborative process fosters creativity, shared responsibility, and a sense of ownership among team members. 4. Customer Satisfaction: By involving customers throughout the development process, Agile ensures that the final product aligns with their expectations. This customer-centric approach enhances overall satisfaction and ncreases the likelihood of product success in the market. S S s L Example C Works well Challenges with Prioritized Benefits in Next steps Resource Decisions to the element in the recommendations prospect allocation progress organization