L8 Innovate or Perish - PowerPoint PPT Presentation

1 / 60
About This Presentation
Title:

L8 Innovate or Perish

Description:

L8 Innovate or Perish EC10: Innovation & Commercialisation Managing the innovation process and remaining Marcus Thompson wmt1_at_stir.ac.uk L8 Outline: Innovate or ... – PowerPoint PPT presentation

Number of Views:86
Avg rating:3.0/5.0
Slides: 61
Provided by: staffSti
Category:
Tags: innovate | perish

less

Transcript and Presenter's Notes

Title: L8 Innovate or Perish


1
L8 Innovate or Perish
  • EC10 Innovation Commercialisation
  • Managing the innovation process and remaining
  • Marcus Thompson
  • wmt1_at_stir.ac.uk

2
L8 Outline Innovate or Perish
  • Why Innovate
  • Ideas Commercialisation
  • The Innovation Process
  • Managing Innovation Creativity

3
1. Why Innovate?
  • EC10 Innovation Commercialisation

4
Innovation in Smaller Companies
  • Small firms produce 55 percent of innovations.
    They produce twice as many product innovations
    per employee as large firms, including the
    employees of firms that do not innovate. This is
    also true of significant innovations.
  • Small firms obtain more patents per sales dollar
    and apparently have more discoveries than large
    firms, since research has shown that large firms
    are more likely to patent a discovery.
  • Small research and development (RD) firms are
    quite research intensive the percentage of
    employees that are RD scientists and engineers
    are 6.41 percent in small firms and 4.05 percent
    in large RD firms.
  • Large firms receive 26 percent of their research
    and development dollars from the federal
    government small firms, only 11 percent.
  • A federal RD dollar to a small firm is more
    than four times as likely to be used for basic
    research as a federal RD dollar to a large firm.

The Facts about Small Businesses, 1997, Small
Business Administration,
5
Policy Approaches to Innovation
  • The rate of return on RD expenditures is 26
    percent for both small and large firms, but only
    14 percent for firms not involved with a
    University. The estimated rates of return on
    total RD for firms with a university
    relationship are 30 percent for large firms and
    44 percent for small firms.
  • Innovations coming from small high-tech firms are
    expected to increase in the coming years as a
    result of the increase in the. Under the Small
    Business Innovation Research (SBIR) program,
    federal agencies with large RD budgets must
    direct a share of their RD funding to small
    firms, the source of 55 percent of innovations
    and new technologies. Since the inception of the
    SBIR program in FY 1983, almost 4 billion in
    competitive federal RD awards have been made to
    qualified small business concerns under the
    program.
  • Among the important innovations by U.S. small
    firms in the 20th century are the airplane, audio
    tape recorder, double-knit fabric, fiber optic
    examining equipment, heart valve, optical
    scanner, pacemaker, personal computer, soft
    contact lenses, and the zipper.

6
European Policy Measures
  • Europe has a structural trade deficit in high
    technology products of over ECU 10million.
  • It is to hasten the emergence of new
    technology-orientated entrepreneurialism in
    Europe to optimise the participation of SMEs -
    both in research itself and in the exploitation
    of its results. Edith Cresson
  • Measures being considered
  • Tax measures favouring use of stock options
  • Transfer of pension rights (across Europe)
  • Rapid improvement of system for protection of
    knowledge
  • Facilitation of technology transfer between
    University research centres
  • register of business angels venture capital
    network
  • Rejected - 5 of all public research expenditure
    to SMEs

Source EGX111, Role Models For Innovation,
Innovation and Technology Transfer, January 1999
7
Consensus?
  • The formation and development of high technology
    firms have been encouraged by Governments and
    other agencies in developed economies.
  • (Oakey, 1984 Malecki, 1991 Oakey, 1991a, 1991b
    Henneberry, 1992 Garnsey and Cannon-Brookes,
    1993 Garnsey et al., 1994 Storey and Tether,
    1998 Tether and Storey, 1998).

8
Why Encourage High-Tech?
  • It is assumed that a growing stock of high
    technology firms will
  • Encourage national economic development.
  • Make less favoured areas more competitive and
    self-reliant.
  • Broaden the industrial base of regions.
  • Improve the competitive capability of industry.
  • Create jobs and will be associated with wealth
    creation.

9
Perceptions of Technology Based SMEs
  • For twenty years or more, there has been an
    abiding perception, with considerable currency
    amongst politicians and policy makers in London,
    Brussels and Glasgow, that new and small firms
    are an important source - perhaps even the source
    - of innovation, new technology and employment
    creation. CRIC Project

10
SME, Innovation Employment
  • Innovative or technology based new and small
    firms are more likely to create employment than
    similar firms in the general population.
  • The average rate of employment creation within an
    individual innovative or technology based new or
    small firm tends to be modest.
  • The third recurrent finding is that growth
    amongst innovative and technology based new and
    small firms tends to be concentrated in a few
    firms.
  • The fourth finding is that even amongst the
    fastest growing innovative and technology based
    new and small firms the absolute number of jobs
    created over a decade tends to be modest.

11
2.Ideas Commercialisation
  • EC10
  • Innovation Commercialisation

12
Choosing a Direction
  • Entrepreneurs are managers. They manage more
    than just organisations, they manage the creation
    of new worlds. This new world offers the
    possibility of value being generated and made
    available to the ventures stakeholders. This
    value can only be created through change - change
    in the way things are done, changes in
    organisations and change in relationships.
  • Effective entrepreneurs know where they are
    going, and why. They are focused on the
    achievements of goals.
  • The entrepreneurs vision is a picture of the
    new world he or she wishes to create. The
    picture is a positive one. . He or she is
    motivated to make their vision a reality.

13
Making the Vision into Reality
Vision must exist before strategy development and
planning
  • The vision provides
  • sense of direction.
  • defines goals and objectives.
  • provides focus when going gets tough.
  • gives the venture a moral content and social
    priority.
  • It communicates and attracts venture support.
  • It forms the basis of the leadership strategy.
  • The vision is constantly refocused
  • what is source of value to be created?
  • Who will be involved?
  • Why will they want to be involved?
  • What rewards will they gain?
  • What new relations are needed
  • What is the potential for self development?

Source Adapted from, Strategic Entrepreneurship,
Wickham, 1998, p107
14
Route Adopted
Level of Control
Directorship Form a management team
Licensing Commercial arrangement through which
licensor of IPR allows licensee to develop sell
or use in return for a royalty payment
Assignation Sell rights and transfer the
ownership of the invention and IPR to third party
for lump sum
Joint Venture Partnerships Collaboration with
one or more organisations to exploit IPR.
Includes sharing of costs and revenues
15
Innovation Process
  • Prepare
  • Evaluate the life cycle of existing services and
    products.
  • Set-up is systematic abandonment process.
  • Estimate the abandonment revenue gap.
  • Set up separate organisation with reporting line,
    measures, structures and sufficient resources to
    bridge revenue gap.
  • Conduct systematic, purposeful and organised of
    the seven innovation sources (see next slide)
  • Perform diagnostic analysis of opportunities.
  • What do the seven sources mean to the
    organisations business processes, channels and
    technologies.
  • Conduct analysis by listening to customers
  • Use focus groups to corroborate the analysis (see
    Slide 3 for analysis criteria)
  • Exploit Opportunity
  • Conduct pilot tests
  • Commercialised in stages
  • Allocate resources
  • Evaluate and measure success.

Adapted from Drucker, P, Innovation
Entrepreneurship
16
Drucker on Sources of Innovation
  • Unexpected Occurrences
  • Unexpected successes existing management find
    counter-intuitive.
  • Unexpected failures.
  • Unexpected out side events.
  • Suppliers and customers and competitors.
  • Perception-Reality Incongruities.
  • Internal misperceptions.
  • Conflicting internal reality.
  • Customer expectation gaps.
  • Dysfunctional or imbalance at critical point in a
    business process.
  • Process Weaknesses.
  • Weak links in process.
  • Constraints or vulnerability.
  • Need to improve.

Adapted from Drucker, P, Innovation
Entrepreneurship
17
Drucker on Innovation (2)
  • Industry and market changes.
  • Competitive strategies.
  • Change in players.
  • Structure of industry.
  • Customer value propositions. Technology and
    operations.
  • Demographic Changes
  • Ageing. Shifts in a wealth.
  • Urbanisation and globalisation.
  • Culture and societal changes (environmental).
  • Changes in buyers attitudes.
  • Changes in mood and perception.
  • Changes in buying habits.
  • New scientific and business knowledge.
  • Application of old innovations into new areas.
  • Expensive innovation with long lead times and
    risks.

18
Innovation Potential Checklist
  • How does it create new value for customers?
  • Is price related to value to customer not cost to
    produce?
  • A response to unmet customer needs or problems?
  • Does it delivers attributes not products?
  • Reasonable speed and access to market?
  • Simple and focused and does one thing and
    satisfies one need for one group of customers?
  • Will it obtains a leadership position in the
    market quickly?
  • Not too clever nor too far ahead of market?
  • Consistent with an organisations strength and
    not too diverse in terms of product?

Adapted from Drucker, P, Innovation
Entrepreneurship
19
Adopters of Technology
  • Innovators
  • Willing to accept risk. Younger and higher
    income. Aspirational.
  • Early Adopter
  • Often opinion leaders, caution with risk. High
    discretionary income. Highly independent.
  • Early Majority
  • Only willing to accept new ideas when risk is low
  • Late Majority
  • Sceptical. Place emphasis on word of mouth and
    seek security from larger organisations
  • Laggards
  • Traditionalists. Tend to be older from lower
    social groups.

Source Rogers Et al, Diffusion of
Innovation,1962, p162
20
3. The Innovation Process
  • How to Stimulate Innovation

21
Sector Innovation
  • An industrial sector is defined as technology
    according to its overall RD intensity (sum of
    direct and indirect). The direct intensity
    corresponds to the ratio of RD expenditure to
    value added for each sector and country. For
    indirect intensity, embodied technology (RD
    expenditure) in intermediate and capital goods
    purchased on the domestic market or imported was
    taken into account. To calculate indirect
    intensity, the technical coefficients of
    manufacturing industries extracted from
    input-output matrices used. (OECD Fact-book
    2005)

22
Wal-Mart Innovation network
  • Evaluation Assessment
  • Innovation Development Pre-commercailsiation
  • Commercialisation

23
Support in Scotland
  • Scottish Enterprise (SE)
  • (www.scottish-enterprise.com)
  • Smart Successful Scotland (SSS)
  • (www.scotland.gov.uk)
  • Business Gateway
  • (www.bgateway.com)
  • Technology Venture Scotland (TVS)
    (www.technologyscotland.org)

24
Sources of On-line Information
  • http//thesius.sourceoecd.org/vl4490858/cl12/nw
    1/rpsv/factbook/06-02-04.htm
  • http//www.lancashire.gov.uk/environment/lancashir
    eprofile/monitors/techind.asp
  • http//www.bgateway.com/defaultpage131cd0.aspx?pag
    eID790
  • http//www.scottishenterprise.com/sedotcom_home/ab
    out_se.htm?siblingtoggle1
  • http//www.scotland.gov.uk/library5/enterprise/sss
    en-02.asp
  • http//www.technologyscotland.org/defaultpage121c0
    .aspx?pageID496
  • http//www.scottish-enterprise.com/sedotcom_home/s
    ervices-to-business/ideas-and-innovation.htm?sibli
    ngtoggle1
  • http//www.innovation.stir.ac.uk/innovation_suppor
    t.html
  • http//www.tco.ac.ir/research/48-Seifoddin.pdf
  • http//www.scottish-enterprise.com/publications/mo
    ct_review.pdf
  • http//www.scottishenterprise.com/sedotcom_home/ab
    out_se/what_we_do/operating-plan.htm

25
Exercise Support for Technology
  • Based on the web-sites below as your own
    independent research, report on support
    structures for technology business in Scotland
  • www.scotland.gov.uk/innovationgrants
  • www.atp.nist.gov/eao/gcr02-841/chapt2.htm
  • www.gro-scotland.gov.uk/statistics/library/popproj
    /03population-projections.html
  • www.space-time.info/starlab/gartner.html
  • www.theherald.co.uk/business/43646.html

26
4. Creative Innovation
  • EC10
  • Innovation Commercialisation

27
Types of Creativity
  • Normative
  • Original thinking used to solve known problems
  • Exploratory
  • Blue Sky to identify opportunities
  • Serendipitous Creativity
  • Accidental eg post-it

28
4. Creativity
  • Conceptual fluency- the ability to produce many
    ideas or solutions in a given situation.
  • Mental flexibility also known as lateral
    problem from an entirely new angle.
  • Originality usually evidenced by unusual answers
    to problems. -
  • Suspension of Judgment a willingness to defer
    judgement of ideas of others.
  • Impulse acceptance a willingness to react
    impulsively to an idea
  • Attitude towards Authority a willingness to
    challenge Majaro (1992)

29
Decision Making
  • The Prescriptive Approach
  • Linear and rational process, starting with where
    we are now and then developing new strategies for
    the future.
  • One whose objective has been defined in advanced
    and whose main elements have been developed
    before the strategy commences.
  • The Emergent Approach
  • A a corporate strategy, which emerges, adapting
    to human needs and continuing to develop over
    time. It is evolving, incremental and
    continuous, and therefore cannot be easily or
    usefully summarised in a plan which then requires
    to be implemented.
  • Emergent corporate strategy whose final objective
    is unclear and whose elements are developed
    during the course of its life as the strategy
    proceeds. Lynch, Richard Corporate Strategy,
    Second Edition (2000)

30
What is a Learning Organization (Team)?
  • A Learning Organisation is one in which people at
    all levels, individually and collectively, are
    continually increasing their capacity to produce
    results they really care about. (Senge 1990)

31
Why adopt the concept?
  • Organisations have increasingly taken an interest
    in adopting the learning organisation concept
    because of the increasing pressure on
    organisations to change with developments in
    globalization, changes in customer expectations
    and technology driving this trend.
  • Organisations need to continuously develop
    themselves to maintain their competitive
    advantage and learning is considered the only way
    of obtaining and maintaining a competitive edge.
  • In the knowledge era, knowledge is regarded as
    being more important then financial resources,
    market positioning and other corporate assets.
    (Marquardt 1996).

32
Benefits of Becoming a Learning Organisation
  • Learning organizations link individual
    performance with organizational performance
    setting clear direction for employees and achieve
    goal congruence.
  • provides continuous learning opportunities for
    all employees and uses learning to achieve
    organizational goals and objectives.
  • All employees including managers learn from their
    experiences rather then being bound by their past
    experiences
  • Learning organizations encourage communication
    and innovation by fostering dialogue, making it
    safe for people to share ideas and take risks.
  • Learning organizations seek to learn as much from
    its failures as from its successes encouraging
    continuous development and improvement.
  • A learning organization continuously interacts
    and responds to its external environment allowing
    for better customer focus.

33
What do you see?
34
(No Transcript)
35
The Elephants Legs
36
What am I thinking?
37
Beauty is in the eye of the beholder
38
Dots before your eyes
39
Putting a different light on things
40
Would you trust this man?
41
(No Transcript)
42
Read these allow as fast as you can
43
The Process of Idea Generation
1.The Need
2. Collect Information
3. Analyse and validate data
4. Develop coping Strategy
5. Implement Strategy
44
The Moral of the Story
  • If the princess thinks the same as everyone else
    she would never have lived happily ever after . .
    and the prince would have remained a frog.

45
Team Creativity
  • It follows, then, that one common way managers
    kill creativity is by assembling homogeneous
    teams. The lure to do so is great. Homogeneous
    teams often reach solutions more quickly and
    with less friction along the way. These teams
    often report high morale, too. But homogeneous
    teams do little to enhance expertise and creative
    thinking. Everyone comes to the table with a
    similar mind-set. They leave with the same.
  • Amabile, T, How to Kill Creativity, HBR, Sept
    - Oct 1998, pp 77 - 85,

46
How to Kill Creativity in Marketing Workgroups
  • When leadership becomes dominance
  • When questioning becomes accusation
  • When assertiveness becomes aggression
  • When myopia becomes focus
  • When opportunities become problems
  • When arrogance becomes confidence
  • When structures become strictures
  • When inclusion becomes exclusion
  • When rules become constraints
  • When support becomes ownership
  • When capabilities become impediments
  • When experience becomes intolerance
  • When collaboration becomes fragmentation
  • When identity becomes an excuse

47
Creating the synergistic team
  • There is no scientific formula to guarantee that
    synergism will result.
  • LEAVE YOUR EGO BEHIND.
  • The team project is most important. It's OK to
    feel honoured to be named as a special team
    member, but be committed to the work and to
    working together with other members.
  • COMMUNICATE WELL.
  • Keep others informed of your progress. Be honest
    about what you can do and what you have
    accomplished.
  • CO-OPERATE WITH THE TEAM LEADER.
  • Just as too many cooks spoil the stew, more than
    one leader can lead to misdirected efforts. Be
    careful to do what you are assigned. Feel free to
    express your own ideas, but let the leader decide
    if they can be used now.
  • RELAX AND BE OPEN TO NEW IDEAS.
  • Small groups create a good setting for trying new
    techniques, so leave your reluctance behind.
  • GET ENTHUSIASTIC, AND GIVE A LITTLE EXTRA.
  • That means caring a little more, thinking a
    little harder, making a little greater effort.

48
Sheet 1
Old Clothes
Lots of people have clothes that they have grown
out of. How would you use unwanted clothes?
Think the Impossible! You can use bits of things
or combine them. You can change shape, colour
size.
49
Things Can Make Money
Sheet 2
Combine with other things
R E S O U R S E
Use To Provide A Service
Use As A Substitute For
Alter Size Shape Colour?
Package Differently
Recycle Or Reuse
Use for other People
Use Bits Or Parts
50
Sheet 3
SLEEPERS
51
Sheet 4
People Want Things!
Want But Doesnt Exist
Out of date or style
Seen but cant find it
People Or Interest Groups
Not easy to use
Quality not good enough
Its too expensive
52
Sheet 5
Problems Worksheet
53
Problems Means Opportunities
Sheet 7
54
Sheet 8
Skills Mean Business
What Products?
What Products?
Which Business?
Which People?
For Business
For People
Provide a Service
Your Skill
?
Making Things
For Business
For People
Which Businesses?
Which People?
What Products?
What Products?
55
Assessment Checkbox
Sheet 10
  • Score your Idea(s)

56
Sheet 11
Is There a Market for Your Idea?
  • Do you know who the customers will be?
  • What will they pay?
  • Roughly how many customers do you need to
    break-even?
  • Do you know about the competition?
  • For what reasons will people use you rather than
    them?
  • Do you think you will be able to attract in more
    customers each season?
  • Can you prevent other people copying your idea,
    locally?

57
Sheet 12
Can You Provide What the Customer Wants?
Have you got the skills to promote your
business? Could you make or provide the amount
and quality of products or service that the
customer wants? Do you know how much you will
charge? If you need people to help you provide
your product or service, do you know who those
people are? Do you know how much money you will
require? Do you have access to the money and
other resources? How much do you still need to
get?
58
Sheet 13
Can You Get Your Idea in Front of Customers?
Action Points
  • Do you know who will buy this from you?
  • How will they find out about you?
  • Do you know of anyone who already sells to these
    customer groups?
  • Are there any local outlets that would help you
    sell the service or idea?
  • Can you get the names of customers from any
    sources?

59
Sheet 14
What Resources Support Do You (still) Need?
  • Do you have the option of buying an existing
    business or can you form an alliance?
  • Could you lease or hire equipment, premises etc.
    locally rather than buy?
  • Who will help you get sales going e.g.
    promotional material, selling?
  • Can you set targets and prepare first-cut
    financial projections?
  • What information do you still need to prepare a
    (Business) Plan?

60
Creativity Marketing
  • "But the truth is that the winning strategies are
    smart, innovative and original, and break the
    rules, and most times there is someone somewhere
    who has seen through conventions and traditional
    assumptions to create a new business idea"
    Piercy 2002, p 269
Write a Comment
User Comments (0)
About PowerShow.com