The 3rd Way of Innovation with LSP

May 13, 2020

Business Applications

Robert Rasmussen

The meeting discussed the concept of innovation and the ""third way"" approach of developing complementary innovations around a company's core product. The importance of managing the ecosystem and delivering on the promise of the crown jewel was emphasized. Participants built models to reflect what they learned and upcoming coffee chat sessions were announced. Robert defines innovation as a new match between a solution and a need that creates value and gives examples of what does and doesn't qualify as innovation in this context. This approach is called the third way of innovation and involves focusing on developing complementary innovations rather than improving the core product. He outlines the four phases of implementing the innovation process: define, decide, design, and bring to market/manage and emphasizes the importance of managing the ecosystem in order to successfully implement innovations and cites Lego's innovation matrix as an example of effective management. Robert discusses the importance of delivering on the promise of the crown jewel and how the complementary system must support it, as well as the illusion of needing disruptive innovation and the importance of managing the cost structure of the ecosystem.