Management of Knowledge and Innovation Research Unit
presents a seminar by
Terrence Brown Dean, Stockholm School of Entrepreneurship
Skunk Works: A Sign of Failure, A Sign of Hope? Wednesday, 23 January 2002 Rm N2028, Venables 11:00am - 12:30pm Please confirm your attendance by calling Mina Panchal on Extn. 55987 or email m.panchal@open.ac.uk
As we move to even more dynamic business environments, it has become increasingly important for business to be innovative, not just to gain a competitive advantage, but to just to survive. As a result, organizing for innovation has become a key business objective. Of the many organizational innovations to emerge, one of the most well known is skunk works. The evidence, at least anecdotally, is that great innovations are often the result. However, this paper begins by taking a slightly different view. Influenced by the perspective of Schrage (1999) this paper takes the view that the creation of a skunk works is often a signal of management dysfunction. The formation of a skunk works is a signal that the regular organizational structure, systems, process, etc. is no longer able to handle innovation or radical change, so as a result, must form a new, separate organization, built on exclusivity, in order to innovative. Furthermore, not only does the creation of a skunk works signal management dysfunction, but also may even accelerate the dysfunction. However the paper does not stop there. The skunk works concept and practice is actually confused, complex and misunderstood. As a result, this paper attempts to begin to define, clarify and structure the concept. This results in the creation of the Skunk Works Matrix, the Research Activity Continuums and group of key success factors. Ultimately, it seems that the skunk works-like programs that are the most effective are those that create the most value for the organization as a whole. To create this value there is a greater emphasis on development rather than research. Furthermore this, development, is product development and as a result has a strong emphasis on the market. Despite the fact that many skunk works-like programs are created under less than ideal circumstances, for less than ideal reasons, the use of skunk works of all types by large corporations seem to be accelerating. Therefore, it is ripe area for further research. This paper raises more questions than it answers and by that helps in spurring the dialogue. About Terrence Brown Dr. Brown is the Dean of the SSES and a Senior Lecturer at the Royal Institute of Technology. He was the past Director of Research for the Association of the Electronic Auction Industry and Director of Research for The net.America Foundation, a think tank focusing on the New Economy, eCommerce and eLearning. In 1997 Dr. Brown received the National Federation of Business Dissertation Award. This award, given by the Entrepreneurship Division of the Academy of Management, recognises the best dissertation presented in a given year. He holds an MBA in Entrepreneurial Management from the Wharton School of the University of Pennsylvania, an MBA in Organizational Management and a Doctorate in Entrepreneurship and Corporate Strategy from Rutgers University. Dr. Brown has previously served a two year engagement in Sweden as a Visiting Professor of Entrepreneurship and the Co-Director of a major research project on firm growth. He has published in various academic journals. He has also lectured throughout North America and Europe. Dr Brown is a regular columnist for Entrepreneurs. He is also the author of the forthcoming book, "Opportunity Myopia: A Blueprint for Creating the Opportunity-based Firm", which will be published in late 2002 by Bookhouse Publishing, the same people that brought you "Funky Business".
OUBS seminars are informal, generally reflecting work-in-progress. They are open to staff and students of all faculties, as well as to visitors. To receive information on our seminars, contact Mina Panchal at the address below
Mina
Panchal Open University Business School Tel: +44 1908 655987 Fax: +44 1908 655898 |